Home  »  Company  »  BS  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of BS Ltd. Company

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 – 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 – 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 – 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.

Find IFSC