Mar 31, 2015
1. ACCOUNTING CONVENTIONS
These Financial Statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
Accounting Standards as prescribed under Section 133 of the Companies
Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts)
Rules, 2014, the provisions of the Act (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI).
Accounting Policies have been consistently applied except where a
newly-issued Accounting Standard is initially adopted or a revision to
an existing Accounting Standard requires a change in the Accounting
Policy hitherto in use
2. USE OF ESTIMATES
The preparation of Financial Statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balances of Assets and Liabilities and Disclosures relation to the
Contingent Liabilities as at the date of the Financial Statements and
reported amounts of income and expense during the year. Examples of
such estimates include provisions for Doubtful Receivables, Employee
Benefits and Provision for Income Taxes. Future Results could differ due
to changes in the estimates and the difference between the actual
results and the estimates are recognized in the period in which the
results are known/materialize.
3. REVENUE RECOGNITION
Revenues / Incomes and Costs / Expenditure are generally accounted on
accrual basis as they are earned or incurred.
Sale of Goods is recognized net of discounts and rebates on transfer of
significant risks and rewards of ownership which is generally on the
dispatch of goods.
Income from Turnkey Services is accounted on the basis of billing to
Customers and includes Unbilled Revenue accrued up to the end of the
Accounting Period.
Interest income from deposits and others is recognized on an accrual
basis.
Profit/loss on sale of Investments is recognized on the date of its sale
and is computed as excess of sale proceeds over its carry amount as at
the date of sale.
4. FIXED ASSETS
Fixed Assets are stated at cost of acquisition as reduced by
Accumulated Depreciation. Apart from taxes (Excluding CENVAT) all costs
including Financial Costs up to the date of commissioning and
attributable to the Fixed Assets, Freight and other incidental expenses
related to the Acquisition and Installation of the respective Fixed
Assets are capitalized.
Capital work-in-progress is stated at the amount expended (includes
taxes and duties) up to the date of Balance Sheet and includes advances
paid to Suppliers and Contractors on account of Capital works.
5. PRE Â OPERATIVE EXPENSES
Expenditure during the construction period (including Financing Cost
relating to Borrowed Funds for Construction or Acquisition of Fixed
Assets) incurred on project during implementation are treated as
pre-operative expenses, pending allocation to the Assets, and are
included under "Capital Work-in-progress".
6. BORROWING COSTS
Borrowing Costs that are attributable to the Acquisition, Construction
or Production of Qualifying Assets, pertaining to the period from
commencement of activities relating to Construction / Development of
the Qualifying Asset up to the date of capitalization of such Asset, are
capitalized as a part of the cost of such Assets. Any income earned on
the temporary Deployment/ Investment of those borrowings is deducted
from the Borrowing Costs so incurred. A Qualifying Asset is one that
necessarily takes a substantial period of time to get ready for its
intended use. All other Borrowing Costs are charged to the Statement of
Profit and Loss.
7. DEPRECIATION
Depreciation on Fixed Assets is provided on the Written Down Method
over the useful life of Assets.
Effective 1st April 2014, the Company depreciates its Fixed Assets over
the useful life in the manner prescribed in Schedule II of the Act, as
against earlier practice of depreciating at the rates prescribed in
Schedule XIV of the Companies Act 1956.
Based on an Independent Technical Evaluation, the useful life of Plant
and Machinery and Factory Building has been estimated as 13 years and
28 years, which is different from that prescribed in Schedule II of the
Act.
Depreciation on additions/ deletions to Fixed Assets is provided on a
pro-rata basis from/ up to the date the Asset is put to use/ discarded.
8. IMPAIRMENT OF ASSETS
The Carrying Values of Assets/ Cash Generating Units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such Assets is estimated and
impairment is recognized, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the Future Cash Flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognized for an asset in earlier accounting
periods no longer exists or may have decreased such reversal of
impairment loss is recognized in the Statement of Profit and Loss,
except in the case of Revalued Assets and the recoverable amount is
reassessed and the Assets is reflected at the recoverable amount.
9. INVENTORIES
Inventories are valued as under.
i) Raw Materials, Stores and Spares - at cost.
ii) Finished Goods and Work-in-progress - at cost or Net Realizable
Value whichever is lower. Cost include cost of Direct Material, Labor,
Factory Overhead including Excise Duty.
iii) Trading Goods - at cost or Net Realizable Value whichever is
lower.
iv) Scrap - at Net Realizable Value.
10. INVESTMENTS
Investments which are readily realizable and intended to be held for
not more than One year from the date on which such Investments are
made, are classified as Current Investments. All other Investments are
classified as Long-Term Investments.
On initial recognition, all Investments are recognized at cost. The cost
comprises purchase price and directly attributable Acquisition charges
such as brokerage, fees and duties.
Current Investments are carried in the Financial Statements at lower of
cost and fair value determined on an Individual Investment Basis.
Long-Term Investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of Investments.
On disposal of an Investment, the difference between its carrying amount
and net disposal proceeds is charged or credited to the Statement of
Proft and Loss.
11. TAXES ON INCOME
Current Tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the Tax Laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an Asset if there is convincing
evidence that the Company will pay normal Income Tax. Accordingly, MAT
is recognized as an Asset in the Balance Sheet when it is probable that
future economic benefits associated with it will fow to the Company.
Deferred Tax is recognized on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred Tax is measured using the tax rates and the tax laws
enacted or substantively enacted as at the reporting date. Deferred
Tax Liabilities are recognized for all timing differences. Deferred Tax
Assets are recognized for timing differences of items other than
Unabsorbed Depreciation and Carry Forward Losses only to the extent
that reasonable certainty exists that sufficient future taxable income
will be available against which these can be realized. However, if
there are Unabsorbed Depreciation and Carry Forward of Losses, Deferred
Tax Assets are recognized only if there is virtual certainty that there
will be sufficient future taxable income available to realize the Assets.
Deferred Tax Assets and Liabilities are offset if such items relate to
taxes on income levied by the same governing Tax Laws and the Company
has a legally enforceable right for such set of. Deferred Tax Assets
are reviewed at each Balance Sheet date for their reliability.
12. CONTINGENCIES
A Contingent Liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is probable that an outflow of resources will not be required
to settle the obligation. However if the possibility of outflow of
resources, arising out of present obligation, is remote, it is not even
disclosed as Contingent Liability. A Contingent Liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does
not recognize a Contingent Liability but discloses its existence in the
notes to Financial Statements. Contingent Assets are neither recognized
nor disclosed in the Financial Statements. Loss contingencies arising
from claims, litigation, assessments, fens, penalties, etc., are
provided for when it is probable that a liability may be incurred and
the amount can be reliably estimated.
13. RETIREMENT BENEFITS
Liability in respect of retirement benefits is provided and charged to
the Profit & Loss Account as follows:
Gratuity  Liability in respect of Gratuity to employees is provided on
basis of an actuarial valuation on projected unit credit method made at
the end of each Financial Year.
Leave Encashment  Liability in respect of Leave Encashment is provided
on the basis of Actuarial Valuation. The Actuarial Valuation is done as
per the projected unit credit method.
Provident Fund  Provident Fund is administered through the Regional
Provident Fund Commissioner and Company''s contribution is remitted
accordingly.
14. EARNINGS PER SHARE(EPS)
Basic Earnings per Share are calculated by dividing the net profit or
loss for the period attributable to Equity Shareholders by the Weighted
Average number of Equity Shares outstanding during the year.
For the purpose of calculating Diluted Earnings per Share, the net
profit or loss for the period attributable to Equity Shareholders and
the Weighted Average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential Equity Shares.
15. FOREIGN CURRENCY TRANSACTIONS denominated in foreign
currencies are recorded in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting
currency and the foreign currency at the date of the transaction.
Foreign Currency Monetary Items (Assets and Liabilities) are restated
using the exchange rate prevailing at the reporting date. Non-monetary
items, which are measured in terms of historical cost denominated in
foreign currency, are reported using the exchange rate at the date of
the transaction. Gains and losses, if any, at the year-end in respect
of Monetary Assets and Monetary Liabilities are recognized in the
Statement of Profit and Loss.
16. LEASE
Leases in which significant portion of the risks and rewards of
ownership are retained by the lessor are classified as Operating Leases.
Payments made under Operating Leases are charged to the Statement of
Profit and Loss on a Straight- Line basis over the period of the lease
or other systematic basis more representative of the time pattern of
the users benefits
17. CASH FLOW STATEMENTS
The Companies Act, 2013 does not lay down any format for preparation of
Cash Flow Statement; Companies will need to follow AS 3 in this regard.
However, the Listing Agreement requires the Indirect Method for
preparing Cash Flow Statements. Hence, Cash Flow Statement has been
prepared by following the Indirect Method and in accordance with the
provisions of AS 3.
18. SEGMENT REPORTING
The Business of the Company has been classified into segments based on
the basis of the revenue from sales to External Customers and from
transactions with other segments exceeds 10% of Total Revenues
(external and internal) of all segments.
19. LONG TERM BORROWINGS
a) Term Loans from Banks - Secured
Term Loans from Punjab National Bank is closed during the current
period.
Term Loan from Bank of India is secured by:
¦ First Equitable Mortgage and Charge (on Pari-passu basis) on all
Fixed Assets, both present and future of the Company- situated at
Survey No. 82, 83, 92 - 95 & 107, Athvelly Village, Medchal Mandal,
R.R.Dist & at Survey No. 41 & 42/AA, Majeedpally (NK) village, Toopran
Mandal, Medak district, Andhra Pradesh.
The above Term Loan is further collaterally secured by:
- Second pari-passu Charge on entire Current Assets of the Company.
- Pledge of Equity Shares (90,998,850) of Promoters Holding as
collateral security ranking pari-passu among Term Lenders and WC
Consortium of Banks.
- Personal Guarantees of Shri Rajesh Agarwal (Managing Director) and
Mr. Dilip Satyanarayan Agarwal.
Further above Term Loan is also collaterally secured by:
- Corporate Guarantee of M/s Agarwal Developers
- Interest Rate is 12.70% p.a. and repayable between 2013 and 2017
Corporate Loan from SBH and SBT and Laxmi Vilas Bank is secured by:
- Pari-passu frst Charge on Current Assets of the Company along with
other Working Capital Bankers, lenders & is further collaterally
secured by
¦ Second pari passu Charge on the Fixed Assets of the company along
with the existing Term Lenders
- Personal Guarantee of Shri Rajesh Agarwal (Managing Director).
Interest Rate is Ranging between 12.50% p.a. to 13.25% p.a. and
repayable between 2013 and 2018
Other Term Loans taken against Mortgage of underlying Asset :
- Equipment Loan taken from Axis Bank and the same is secured by the
underlying Asset.(Stringing Machine).
- Equipment Loan taken from HDFC Bank and the same is secured by the
underlying Asset.(Tata Tipper, ACE Mobile Crane and Tower Crane).
- Car Loan taken from ICICI Bank Ltd is secured by the underlying Asset
(Car Make: Toyota Etios).
- Car Loan taken from ICICI Bank Ltd is secured by the underlying Asset
(Car Make: Toyota Innova).
- Car Loan taken from ICICI Bank Ltd is secured by the underlying Asset
(Car Make: Skoda Laura).
- Car Loan taken from ICICI Bank Ltd is secured by the underlying Asset
(Car Make: Audi).
- Car Loan taken from Axis Bank Ltd is secured by the underlying Asset
(Car Make: Mahindra Verito).
- Car Loan taken from Axis Bank Ltd is secured by the underlying Asset
(Car Make: Maruti Swift).
- Equipment Loan taken from HDFC Bank and the same is secured by the
underlying Asset.(2 Nos Mahindra Power All Generators).
Interest Rate is Ranging between 10% to 12% and repayable between 2014
and 2017
b) Term Loans from Financial Institutions - Secured
- Car Loan taken from Volkswagen Finance Private Limited is closed
during the current period.
- Car Loan taken from Daimler Financial Services India Pvt Ltd and the
same is secured by the underlying Asset. (Car Make : Mercedes Benz
W221)
- Car Loan taken from Kotak Mahindra Finance is secured by the
underlying Asset (Car Make : Corolla Altis)
- Car Loan taken from BMW India Financial Services Pvt Ltd is secured
by the underlying Asset (Car Make : Mercedes GLA 200)
- Car Loan taken from BMW India Financial Services Pvt Ltd is secured
by the underlying Asset (Car Make : BMW Mini Cooper)
Interest Rate is Ranging between 10% to 12% and repayable between 2014
and 2017
Term Loan from IFCI Limited is secured by way of:
- First Equitable Mortgage and Charge (on Pari-passu basis) on all
Fixed Assets, both present and future of the Company, situated at
Survey No. 82, 83, 92 - 95 & 107, Athvelly Village, Medchal Mandal,
R.R.Dist & situated at Survey No. 41 & 42/ AA, Majeedpally (NK)
village, Toopran Mandal, Medak district, Andhra Pradesh
- Pledge of Equity Shares of Promoters holding to the extent of
5,36,00,000 Shares.
- Personal Guarantee of Shri Rajesh Agarwal (Managing Director) of the
Company
Interest rate is 14.60% p.a.
c) Short Term Loan from IFCI Venture Capital Funds Limited is taken
against - Unsecured:
- Pledge of Equity Shares of Promoters holding to the extent of
22,248,000 Shares.
- Personal Guarantee of Shri Rajesh Agarwal (Managing Director) of the
Company
Interest Rate is at 16% p.a. and repayable between 2013 and 2016
20. SHORT TERM BORROWINGS Working Capital Loans - Secured Working
Capital Loans from Syndicate Bank, Punjab National Bank, State Bank of
India, State Bank of Mysore, State Bank of Hyderabad, State Bank of
Travancore, State Bank of Bikaner and Jaipur, United Bank of India,
IDBI Bank, Lakshmi Vilas Bank and Bank of India is under a Working
Capital Consortium with State Bank of India being the Consortium
Leader.
The Working Capital Loans are secured by First exclusive Charge on
Stocks, Receivables, Spares, Consumables and other Current Assets of
the Company, present and future.
(1) Collateral security of Equitable Mortgage of properties:
- Situated at Plot No. 42 (part) in Survey No. 258/1 & 259 situated at
Jeedimetla Industrial Area, Shapurnagar, RR District, AP admeasuring
appx 22,439.26 sq. yrds in the name of Agarwal Developers.
- Open Agriculture land admeasuring Ac. 3.10 gnts in survey situated
at Survey No. 119, 120, 121, 122 & 124 Athvelly Village, Medchal
Mandal, Ranga Reddy District belonging to M/s BS Limited (Formerly
Known As : B S Transcomm Ltd) and Mr. Rajesh Agarwal and
Residential Flat No: 103, 2nd Floor Block "D" Trendset Valley View
Apartments at Banjara Hills Road Number 6 Hyderabad in the name of Mr
Rajesh Agarwal.
- All the ofce premises bearing Unit No. 302 sq., ft carpet area
(equivalent to 344.05 sq. mtr) on the 3rd foor of the building no. 19
(A Wing), Pinnacle Corporate Park, along with 3 (Three) Car Parking
spaces in Stack Car Parking system in the Basement foor of the said
building constructed on land bearing CTS NO. 4207 (pat) of Village Kole
Kalian, Taluka Andheri in the Registration Sub District of Bandra,
District Bombay Suburban within the Municipal Corporation of Greater
Mumbai on pari- passu basis with other WC bankers.
(2) Interim Collateral of Fixed Deposit for Rs. 10 Crores.
(3) The above Working Capital Loans are further secured by Pari passu
Second Charge on the entire Fixed Assets of our Company, both present
and future.
(4) All Working Capital Loans are further secured by:
¦ Pledge of Equity Shares (90,998,850) of Promoters holding as
collateral security ranking paripasu among Term Lenders and WC
Consortium of Banks.
- Pledge of Equity Shares (30,332,950) of Promoters holding as
additional collateral security ranking paripasu among WC Consortium of
Banks.
- Corporate Guarantee of i-Vantage India Private Ltd and Agarwal
Developers.
- Personal Guarantees of Shri Rajesh Agarwal (Managing Director), and
Mr. Dilip Satyanarayan Agarwal.
- Corporate Guarantee of Agarwal Reality developers Private Ltd.
Interest Rate is Ranging between 11% to 12.75% and repayable on demand
Short Term Loan from Others Loan from Sai Baba Investment & Finance Pvt
Ltd are unsecured Interest Rate is Ranging between 12% to 15% and
repayable on demand Unsecured Loans and advances taken from Related
Parties
Mar 31, 2014
1. ACCOUNTING CONVENTIONS
The Financial Statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) and comply with the Accounting Standards notifed under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The Financial
Statements have been prepared on an accrual basis under the historical
cost convention. The Accounting Policies adopted in the preparation of
the Financial Statements are consistent with those followed in the
previous year.
2. USE OF ESTIMATES
The preparation of Financial Statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of Assets and Liabilities and disclosures relation to the
Contingent Liabilities as at the date of the Financial Statements and
reported amounts of income and expense during the year. Examples of
such estimates include provisions for Doubtful Receivables, Employee
benefits and Provision for Income Taxes. Future results could differ due
to changes in the estimates and the difference between the actual
results and the estimates are recognised in the period in which the
results are known/materialise.
3. REVENUE RECOGNITION
Revenue from the sale of goods is recognised net of discounts and
rebates; Income from Turnkey Services is accounted on the basis of
billing to customers and includes unbilled revenue accrued up to the
end of the accounting period. Interest income from deposits and others
is recognised on an accrual basis. Dividend Income is recognised when
the right to receive the Dividend is established. profit/Loss on sale of
investments is recognised on the date of its sale and is computed as
excess of sale proceeds over its carry amount as at the date of sale.
4. FIXED ASSETS
Fixed Assets are stated at Cost of Acquisition as reduced by
Accumulated Depreciation. Apart from taxes (Excluding CENVAT) all costs
including financial costs up to the date of commissioning and
attributable to the Fixed Assets, Freight and other incidental expenses
related to the acquisition and installation of the respective Fixed
Assets are capitalised.
Capital work-in-progress is stated at the amount expended (includes
taxes and duties) up to the date of Balance Sheet and includes advances
paid to Suppliers and Contractors on account of Capital works.
5. PRE Â OPERATIVE EXPENSES
Expenditure during the construction period (including Financing cost
relating to borrowed funds for construction or acquisition of Fixed
assets) incurred on project during implementation are treated as pre-
operative expenses, pending allocation to the assets, and are included
under "Capital Work-in-progress".
6. BORROWING COSTS
Borrowing costs that are attributable to the Acquisition, Construction
or Production of qualifying assets, pertaining to the period from
commencement of activities relating to Construction / Development of
the qualifying asset upto the date of capitalisation of such asset, are
capitalised as a part of the cost of such assets. Any income earned on
the temporary deployment/ investment of those borrowings is deducted
from the borrowing costs so incurred. A qualifying asset is one that
necessarily takes a substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Statement of
profit and Loss.
7. DEPRECIATION
Depreciation on Fixed Assets is provided on the Written Down Method at
the rates and in the manner prescribed under Schedule XIV to the
Companies Act, 1956.
Depreciation on additions/ deletions to Fixed Assets is provided on a
pro-rata basis from/ upto the date the asset is put to use/ discarded.
Individual assets costing upto Rs 5,000 each are fully depreciated in
the year of capitalisation.
8. IMPAIRMENT OF ASSETS
The carrying values of assets/ cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of
impairment exists, the recoverable amount of such assets is estimated
and impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based
on an appropriate discount factor. When there is indication that an
impairment loss recognised for an asset in earlier accounting periods
no longer exists or may have decreased such reversal of impairment loss
is recognised in the Statement of profit and Loss, except in the case of
revalued assets and the recoverable amount is reassessed and the assets
is refected at the recoverable amount.
9. INVENTORIES
Inventories are valued as under.
i) Raw materials, Stores and Spares - at cost.
ii) Finished Goods and Work-in-Progress - at cost or net realisable
value whichever is lower. Cost include cost of Direct Material, Labour,
Factory Overhead including Excise Duty.
iii) Trading Goods - at cost or net realisable value whichever is
lower.
iv) Scrap - at net realisable value.
10. INVESTMENTS
Investments which are readily realisable and intended to be held for
not more than one year from the date on which such investments are
made, are classifed as Current Investments. All other investments are
classifed as Long-Term Investments. On initial recognition, all
investments are recognised at cost. The cost comprises purchase price
and directly attributable acquisition charges such as brokerage, fees
and duties.
Current investments are carried in the Financial Statements at lower of
cost and fair value determined on an individual investment basis.
Long-Term Investments are carried at cost. However, provision for
diminution in value is made to recognise a decline other than temporary
in the value of investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
Statement of profit and Loss.
11. TAXES ON INCOME
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefits associated with it will fow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantively enacted as at the reporting date. Deferred Tax
Liabilities are recognised for all timing differences. Deferred Tax
Assets are recognised for timing differences of items other than
Unabsorbed Depreciation and Carry Forward Losses only to the extent
that reasonable certainty exists that sufcient future taxable income
will be available against which these can be realised. However, if
there are Unabsorbed Depreciation and Carry Forward of Losses, Deferred
Tax Assets are recognised only if there is virtual certainty that there
will be sufcient future taxable income available to realise the assets.
Deferred Tax Assets and Liabilities are offset if such items relate to
taxes on income levied by the same governing Tax Laws and the Company
has a legally enforceable right for such set off. Deferred Tax Assets
are reviewed at each Balance Sheet date for their reliability
12. CONTINGENCIES
A Contingent Liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognised
because it is probable that an outflow of resources will not be required
to settle the obligation. However if the possibility of outflow of
resources, arising out of present obligation, is remote, it is not even
disclosed as Contingent Liability. A Contingent Liability also arises
in extremely rare cases where there is a liability that cannot be
recognised because it cannot be measured reliably. The Company does not
recognise a Contingent Liability but discloses its existence in the
notes to Financial Statements. Contingent Assets are neither recognised
nor disclosed in the Financial Statements.
Loss contingencies arising from claims, litigation, assessments, fnes,
penalties, etc., are provided for when it is probable that a liability
may be incurred and the amount can be reliably estimated.
13. RETIREMENT BENEFITS
Liability in respect of retirement benefits is provided and charged to
the profit & Loss Account as follows:
Gratuity  Liability in respect of Gratuity to employees is provided on
basis of an Actuarial Valuation on projected unit credit method made at
the end of each Financial Year
Leave Encashment  Liability in respect of Leave Encashment is provided
on the basis of Actuarial Valuation. The Actuarial Valuation is done as
per the projected unit credit method.
Provident Fund  Provident Fund is administered through the Regional
Provident Fund Commissioner and Company''s contribution is remitted
accordingly.
14. EARNINGS PER SHARE(EPS)
Basic Earnings Per Share are calculated by dividing the Net profit or
Loss for the period attributable to Equity
Shareholders by the Weighted Average Number of Equity Shares
outstanding during the year.
For the purpose of calculating Diluted Earnings Per Share, the Net
profit or Loss for the period attributable to Equity Shareholders and
the Weighted Average Number of Shares outstanding during the period are
adjusted for the effects of all dilutive potential Equity Shares.
15. FOREIGN CURRENCY TRANSACTIONS:
Transactions denominated in Foreign Currencies are recorded in the
reporting currency, by applying to the Foreign Currency amount the
exchange rate between the reporting currency and the Foreign Currency
at the date of the transaction.
Foreign Currency monetary items (Assets and Liabilities) are restated
using the exchange rate prevailing at the reporting date. Non-Monetary
items, which are measured in terms of historical cost denominated in
Foreign Currency, are reported using the exchange rate at the date of
the transaction. Gains and Losses, if any, at the year-end in respect
of Monetary Assets and Monetary Liabilities are recognised in the
Statement of profit and Loss.
16. LONG TERM BORROWINGS
a) Term Loans from Banks - Secured
Term Loans from Punjab National Bank is secured by:
- First Equitable Mortgage and Charge (on Pari-passu basis) on all
Fixed Assets, both present and future of the company, situated at -
Survey No. 82, 83, 92 - 95 & 107, Athvelly Village, Medchal Mandal,
R.R.Dist & at Survey No. 41 & 42/AA, Majeedpally (NK) Village, Toopran
Mandal, Medak district, Andhra Pradesh
The above Term Loan is further collaterally secured by:
- Second Pari-passu Charge on entire Current Assets of the Company.
- Pledge of Equity Shares (90,998,850) of Promoters holding as
Collateral Security ranking Pari-passu among Term lenders and WC
Consortium of Banks
- Personal Guarantees of Shri Rajesh Agarwal (Managing Director), Shri
Rakesh Agarwal (Joint Managing Director)* and Shri Mukesh Agarwal
(Whole time Director)* of the Company
* under release
Further above Term Loan is also collaterally secured by:
- Corporate Guarantee of I - Vantage India Private Ltd.
Interest Rate is 14.25% p.a. and repayable by 2014
Term Loans from Bank of India is secured by:
- First Equitable Mortgage and Charge (on Pari-passu basis) on all
Fixed Assets, both present and future of the Company- situated at
Survey No. 82, 83, 92 - 95 & 107, Athvelly Village, Medchal Mandal,
R.R.Dist & at Survey No. 41 & 42/AA, Majeedpally (NK) Village, Toopran
Mandal, Medak district, Andhra Pradesh
The above Term Loan is further collaterally secured by:
- Second Pari-passu charge on entire Current Assets of the Company.
- Pledge of Equity Shares (90,998,850) of Promoters holding as
Collateral Security ranking Pari-passu among Term Lenders and WC
Consortium of Banks
- Personal Guarantees of Shri Rajesh Agarwal (Managing Director) and
Mr. Dilip Satyanarayan Agarwal
Further above Term Loan is also collaterally secured by:
Corporate Guarantee of M/s Agarwal Developers
Interest Rate is 12.75% p.a. and repayable between 2013 and 2017.
Corporate Loan from SBH and SBT is secured by:
Pari-passu First Charge on Current Assets of the Company along with
other Working Capital Bankers lenders & is further collaterally secured
by
- Second Pari passu Charge on the Fixed Assets of the company along
with the existing Term Lenders
Personal Guarantees of Shri Rajesh Agarwal (Managing Director), Shri
Rakesh Agarwal (Joint Managing Director)* and Shri Mukesh Agarwal
(Whole Time Director)* of the Company
* under release
Interest Rate is Ranging between 13% p.a. to 13.25% p.a. and repayable
between 2013 and 2018;
Other Term Loans taken against Mortgage of underlying Asset :
Equipment Loan taken from Axis Bank and the same is secured by the
underlying asset. (Stringing Machine).
- Equipment Loan taken from HDFC Bank and the same is secured by the
underlying asset. (Tata Tipper, ACE Mobile Crane and Tower Crane).
Car Loan taken from ICICI Bank Ltd is secured by the underlying asset
(Car Make: Toyota Etios).
Car Loan taken from ICICI Bank Ltd is secured by the underlying asset
(Car Make: Toyota Innova).
Car Loan taken from ICICI Bank Ltd is secured by the underlying asset
(Car Make: Skoda Laura).
Equipment Loan taken from HDFC Bank and the same is secured by the
underlying asset.(2
Nos Mahindra Power All Generators).
Interest Rate is Ranging between 10% to 12% and repayable between 2014
and 2017;
b) Term Loans from Financial Institutions - Secured
- Car Loan taken from Volkswagen Finance Private Limited and the same
is secured by the underlying asset. (Car Make : Audi Q5)
- Car Loan taken from Daimler Financial Services India Pvt Ltd and the
same is secured by the underlying asset. (Car Make : Mercedes Benz
W221)
- Car Loan taken from Kotak Mahindra Finance is secured by the
underlying asset (Car Make : Corolla Altis)
Interest Rate is Ranging between 10% to 12% and repayable between 2014
and 2017;
Term Loan from IFCI Limited is proposed to be secured by way of:
- First Equitable Mortgage and Charge (on Pari-passu basis) on all
Fixed Assets, both present and future of the Company, situated at
Survey No. 82, 83, 92 - 95 & 107, Athvelly Village, Medchal Mandal,
R.R.Dist & situated at Survey No. 41 & 42/AA, Majeedpally (NK) Village,
Toopran Mandal, Medak district,
Andhra Pradesh
Pledge of Equity Shares of Promoters holding to the extent of
53,600,000 Shares.
Personal Guarantees of Shri Rajesh Agarwal (Managing Director) of the
Company (Interest rate is 15.10% p.a.);
c) Short Term Loan from IFCI Venture Capital Funds Limited is taken
against - Unsecured:
Pledge of Equity Shares of Promoters holding to the extent of
22,248,000 Shares.
Personal Guarantees of Shri Rajesh Agarwal (Managing Director) of the
Company
Interest Rate is at 16% p.a. and repayable between 2013 and 2016;
31. DEFINED BENEFIT PLAN
The details of the Company''s Post  Retirement benefit Plans for its
employees including Whole Time Directors are given below which are
certified by an Independent Actuary.
Note:
1) Actuarial Valuation is worked out considering attrition rate and
estimates of future salary increase taking into account of infation,
Seniority, promotion and other relevant factors, such as supply and
demand in the employment market.
17. SHORT TERM BORROWINGS
Working Capital Loans - Secured
Working Capital loans from Syndicate Bank, Punjab National Bank, State
Bank of India, State Bank of Mysore, State Bank of Hyderabad, State
Bank of Travancore, State Bank of Bikaner and Jaipur, United Bank of
India and Bank of India is under a Working Capital Consortium with
State Bank of India being the Consortium Leader.
The Working Capital Loans are secured by first exclusive charge on
Stocks, Receivables, Spares, Consumables and Other Current Assets of
the Company, present and future.
(1) Collateral Security of Equitable Mortgage of Properties
- Situated at Plot No. 42 (part) in Survey No. 258/1 & 259 situated at
Jeedimetla Industrial Area, Shapurnagar, RR District, AP admeasuring
appx 22,439.26 sq. yrds in the name of Agarwal Developers;
- Open Agriculture Land admeasuring Ac. 3.10 gnts in survey situated at
Survey No. 119, 120, 121, 122 & 124 Athvelly Village, Medchal Mandal,
Ranga Reddy District belonging to M/s BS Limited (Formerly Known As : B
S Transcomm Ltd)and Mr. Rajesh Agarwal and
Residential Flat No: 103, 2nd Floor Block "D" Trendset Valley View
Apartments at Banjara Hills Road Number 6 Hyderabad in the name of Mr
Rajesh Agarwal.
(2) Interim Collateral of Fixed Deposit forRs 10 Crores.
(3) The above Working Capital Loans are further secured by Pari passu
Second Charge on the entire Fixed Assets of our Company, both present
and future
(4) All Working Capital Loans are further secured by:
- Pledge of Equity Shares (90,998,850) of Promoters holding as
Collateral Security ranking paripasu among Term Lenders and WC
consortium of Banks
Pledge of Equity Shares (30,332,950) of Promoters holding as Additional
Collateral Security ranking paripasu among WC Consortium of Banks;
Corporate Guarantee of i-Vantage India Private Ltd and Agarwal
Developers
Personal Guarantees of Shri Rajesh Agarwal(Managing Director), Shri
Rakesh Agarwal (Joint Managing Director) and Shri Mukesh Agarwal (Whole
Time Director) of the Company and Mr. Dilip Satyanarayan Agarwal
Mar 31, 2013
1. Accounting Conventions
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956 as
adopted consistently by the Company. All income and expenditure in the
financial statements are recognized on accrual basis.
2. Use of estimates
In preparing the financial statements in conformity with accounting
principles generally accepted in India, management is required to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities as at the
date of financial statements, the amounts of revenue and expenses
during the reported period. Actual results could differ from those of
estimates. Any revision to such estimates is recognized in the period
the same is determined.
3. Revenue Recognition
Revenue from the sale of goods is recognized net of discounts and
rebates; income from turnkey services is accounted on the basis of
billing to customers and includes unbilled revenue accrued up to the
end of the accounting period.
4. Fixed Assets
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation. Apart from taxes (Excluding CENVAT) all costs
including financial costs up to the date of commissioning and
attributable to the fixed assets, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
assets are capitalized. Capital work-in-progress is stated at the
amount expended (includes taxes and duties) up to the date of balance
sheet and includes advances paid to suppliers and contractors on
account of Capital works.
5. Pre  operative expenses
Expenditure during the construction period (including Financing cost
relating to borrowed funds for construction or acquisition of Fixed
assets) incurred on project during implementation are treated as
pre-operative expenses, pending allocation to the assets, and are
included under "Capital Work-in-progress".
6. Borrowing costs
Borrowing cost attributable to acquisition and construction of assets
are capitalized as part of cost of such assets up to the date when such
assets are ready for intended use. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
7. Depreciation
Depreciation on Fixed Assets including on the additions is provided on
written down basis at the rates specified in the Schedule XIV to the
Companies Act, 1956 (as amended from time to time).
8. Impairment of assets
Impairment of asset is reviewed and recognized in the events of changes
and circumstances indicate that the carrying amount of an asset is not
recoverable. Difference between the carrying amount of an asset and the
recoverable value is recognized as impairment loss in the statement of
profit and loss in the year of impairment.
9. Inventories
Inventories are valued as under. i) Raw materials, stores and spares -
at cost. ii) Finished Goods and work-in-progress - at cost or net
realizable value whichever is lower. Cost include cost of direct
material, labor, Factory overhead including excise duty. iii) Trading
Goods - at cost or net realizable value whichever is
lower. iv) Scrap - at net realizable value.
10. Investments
Long Term Investments are stated at cost. Cost includes registration
and other direct expenses. Provision for diminution other than
temporary in the value of Long Term Investments is made in the
accounts.
11. Taxes on Income
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made at current tax rates based on
assessable income. Deferred income taxes are recognized for the future
tax consequences attributable to timing differences using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized and carried
forward only to the extent that there is a virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
12. Contingencies
Loss contingencies arising from claims, litigation, assessments, fines,
penalties, etc., are provided for when it is probable that a liability
may be incurred and the amount can be reliably estimated.
13. Retirement Benefits
Liability in respect of retirement benefits is provided and charged to
the Profit & Loss Account as follows: Gratuity  Liability in respect
of Gratuity to employees is provided on Estimated basis. Leave
Encashment  Liability in respect of Leave Encashment is provided based
on Estimated basis. Provident Fund  Provident Fund is administered
through the Regional Provident Fund Commissioner and Company''s
contribution is remitted accordingly.
14. Earnings Per Share (EPS)
The company reports its Earning per share (EPS) in accordance with
Accounting standard  20.
Mar 31, 2012
1. Accounting Conventions
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956 as
adopted consistently by the Company. All income and expenditure in the
financial statements are recognized on accrual basis.
2. Use of estimates
In preparing the financial statements in conformity with accounting
principles generally accepted in India, management is required to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities as at the
date of financial statements, the amounts of revenue and expenses
during the reported period. Actual results could differ from those of
estimates. Any revision to such estimates is recognized in the period
the same is determined.
3. Revenue Recognition
Revenue from the sale of goods is recognized at the point of dispatch
of materials to customers; income from turnkey services is accounted on
the basis of billing to customers and includes unbilled revenue accrued
up to the end of the accounting year.
4. Fixed Assets
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation. Apart from taxes (Excluding CENVAT) all costs
including financial costs up to the date of commissioning and
attributable to the fixed assets, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
assets are capitalized. Capital work-in-progress is stated at the
amount expended (includes taxes and duties) up to the date of balance
sheet and includes advances paid to suppliers and contractors on
account of Capital works.
5. Pre - operative expenses
Expenditure during the construction period (including Financing cost
relating to borrowed funds for construction or acquisition of Fixed
assets) incurred on project during implementation are treated as
pre-operative expenses, pending allocation to the assets, and are
included under "Capital Work-in-progress".
6. Borrowing costs
Borrowing cost attributable to acquisition and construction of assets
are capitalized as part of cost of such assets up to the date when such
assets are ready for intended use. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
7. Depreciation
Depreciation on Fixed Assets including on the additions is provided on
written down basis at the rates specified in the Schedule XIV to the
Companies Act, 1956 (as amended from time to time).
8. Impairment of assets
Impairment of asset is reviewed and recognized in the events of changes
and circumstances indicate that the carrying
amount of an asset is not recoverable. Difference between the carrying
amount of an asset and the recoverable value is recognized as
impairment loss in the statement of profit and loss in the year of
impairment.
9. Inventories
Inventories are valued as under.
i) Raw materials, stores and spares - at cost.
ii) Finished Goods and work-in-progress - at cost or net realizable
value whichever is lower. Cost include cost of direct material, labor,
Factory overhead including excise duty.
iii) Trading Goods - at cost or net realizable value whichever is
lower.
iv) Scrap - at net realizable value.
10. Investments
Long Term Investments are stated at cost. Cost includes registration
and other direct expenses. Provision for diminution other than
temporary in the value of Long Term Investments is made in the
accounts.
11. Taxes on Income
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made at current tax rates based on
assessable income. Deferred income taxes are recognized for the future
tax consequences attributable to timing differences using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized and carried
forward only to the extent that there is a virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
12. Contingencies
Loss contingencies arising from claims, litigation, assessments, fines,
penalties, etc., are provided for when it is probable that a liability
may be incurred and the amount can be reliably estimated.
13. Retirement Benefits
Liability in respect of retirement benefits is provided and charged to
the Profit & Loss Account as follows:
Gratuity - Liability in respect of Gratuity to employees is provided
based on Actuarial valuation at the balance sheet date done by an
Independent actuary.
Leave Encashment- Liability in respect of Leave Encashment is provided
based on Actuarial valuation at the balance sheet date done by an
Independent actuary.
Provident Fund- Provident Fund is administered through the Regional
Provident Fund Commissioner and Company's contribution is remitted
accordingly.
14. Earnings per share(EPS)
The company reports its Earning per share (EPS) in accordance with
Accounting standard-20.
Mar 31, 2011
1.Accounting Conventions
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956 as
adopted consistently by the Company. All income and expenditure in the
financial statements are recognized on accrual basis.
2.Use of estimates
In preparing the financial statements in conformity with accounting
principles generally accepted in India, management is required to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities as at the
date of financial statements, the amounts of revenue and expenses
during the reported period. Actual results could differ from those of
estimates. Any revision to such estimates is recognized in the period
the same is determined.
3.Revenue Recognition
Revenue from the sale of goods is recognized at the point of dispatch
of materials to customers; income from turnkey services is accounted on
the basis of billing to customers and includes unbilled revenue accrued
up to the end of the accounting year.
4.Fixed Assets
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation. Apart from taxes (Excluding CENVAT) all costs
including financial costs up to the date of commissioning and
attributable to the fixed assets, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
assets are capitalized.
Capital work-in-progress is stated at the amount expended (includes
taxes and duties) up to the date of balance sheet and includes advances
paid to suppliers and contractors on account of Capital works.
5.Pre à operative expenses
Expenditure during the construction period (including Financing cost
relating to borrowed funds for construction or acquisition of Fixed
assets) incurred on project during implementation are treated as
pre-operative expenses, pending allocation to the assets, and are
included under "Capital Work-in-progress".
6.Borrowing costs
Borrowing cost attributable to acquisition and construction of assets
are capitalized as part of cost of such assets up to the date when such
assets are ready for intended use.
Other borrowing costs are recognized as an expense in the period in
which they are incurred.
7.Depreciation
Depreciation on Fixed Assets including on the additions is provided on
written down basis at the rates specified in the Schedule XIV to the
Companies Act, 1956 (as amended from time to time).
8. Impairment of assets
Impairment of asset is reviewed and recognized in the events of changes
and circumstances indicate that the carrying amount of an asset is not
recoverable. Difference between the carrying amount of an asset and the
recoverable value is recognized as impairment loss in the statement of
profit and loss in the year of impairment.
9.Inventories
Inventories are valued as under.
i) Raw materials, stores and spares - at cost.
ii) Finished Goods and work-in-progress - at cost or net realizable
value whichever is lower. Cost include cost of direct material, labor,
Factory overhead including excise duty.
iii) Trading Goods - at cost or net realizable value whichever is
lower.
iv) Scrap - at net realizable value.
10. Investments
Long Term Investments are stated at cost. Cost includes registration
and other direct expenses. Provision for diminution other than
temporary in the value of Long Term Investments is made in the
accounts.
11. Taxes on Income
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made at current tax rates based on
assessable income. Deferred income taxes are recognized for the future
tax consequences attributable to timing differences using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized and carried
forward only to the extent that there is a virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
12. Contingencies
Loss contingencies arising from claims, litigation, assessments, fines,
penalties, etc., are provided for when it is probable that a liability
may be incurred and the amount can be reliably estimated.
13. Retirement Benefits
Liability in respect of retirement benefits is provided and charged to
the Profit & Loss Account as follows:
Gratuity à Liability in respect of Gratuity to employees is provided
based on Actuarial valuation at the balance sheet date done by an
Independent actuary.
Leave Encashment à Liability in respect of Leave Encashment is provided
based on Actuarial valuation at the balance sheet date done by an
Independent actuary.
Provident Fund à Provident Fund is administered through the Regional
Provident Fund Commissioner and Company's contribution is remitted
accordingly.
14. Earnings per share(EPS)
The company reports its Earning per share (EPS) in accordance with
Accounting standard à 20.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article