Mar 31, 2010
1. Deferred Tax
Deferred tax is recognized on timing difference between taxable income and accounting income that originated in one period. and are capable of reversal in one or more subsequent periods.
2. Capital Work in Progress:
The company has acquired additional land at Kondapalli and advance given for civil works and machinery to set up Bio Diesel process plant, which is shown separately as capital work in progress.
The company had taken 60 % stake in Jetro Petro Bio Tech Private Limited and invested Rs. 3 lakhs, it becomes holding company to Jetro Petro Biotech Private Limited. The investment is shown at cost.
4. Borrowing Costs
Borrowing costs attributable to the acquisition and construction of the Qualifying Assets, which takes substantial period of time to get ready for its intended use, are capitalized as part of the cost of respective assets up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to the Profit and Loss account.
5. Valuation of Inventory
Inventories of Spares, consumables, and components are valued at lower of cost and net realizable value. Cost represents purchase cost and other incidental costs, if any. Cost of Inventories is computed on FIFO basis.
6. Micro/Small Scale Industries:
There are no dues to the Micro/Small Scale Industries. We are not having accounts with Micro/Small Scale Industries.
The Company opted to for the sales tax deferment scheme and the amount of sales tax payable to sales tax department is payable from the 14* year of deferment. The amount is shown as unsecured Loans and do not carry any interest.
8. Secured Loans & Securities:
Working Capital facility for an amount of Rs 6 Crores and inland credit of Rs. 2 Crores is obtained from Corporation Bank, Benz Circle Branch, Vijayawada by giving the following securities:
Hypothecation of stocks and receivables (less than six months) and personal guarantee of Managing Director Mr. K. T. Vijay Kumar & Chairman Mr. K. Balakirshna Rao.
The company has obtained Term Loan for an amount of Rs. 38.80 lakhs and Rs. 91.47 lakhs from Kotak Mahendra Bank Limited, Vijayawada by mortgaging Kondapalli site and personal guarantee of Directors.
The company has obtained mortgage loan of Rs. 65.00 lakhs from India Bulls against third party guarantee.
The secured loan amount includes interest accrued there on as on date.
9. Confirmation Balances of Debtors / Creditors are yet to be obtained.
10. Contingent Liability/Contingent Asset:
The disclosures required by Accounting Standard 29 "Provision, Contingent Liabilities, contingent Assets", Company is disputing sales tax liability of Rs. 8,37,536/- and also income tax liability of Rs. 36,40,723/- for which no provision has been made as appeals are pending.
11. Related party disclosure
Related party disclosures have been set out in a separate statement annexed to this schedule. The related parties, as defined by Accounting Standard 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India, in respect of which the disclosures have been made, have been identified and taken on record by the Board.
Key Management Personnel
1. Sri K. Balakrishna Rao - Chairman
2. Sri K. T. Vijay Kumar - Managing Director
3. Sri K. C. S. Prasad - Director - Production
4. Sri Ch. V. Vara Prasad Rao - Executive Director.
Jetro Petro Biotech Private Limited- Subsidiary company
Transactions with other related parties
Nature of transaction Amount
Advance paid to Jetro Petro Biotech Ltd Rs. 5,52,92,783/- (paid towards supply of Jetropha seeds in terms of agreement)
Interest free unsecured loan received from Sri K. T. Vijay Kumar Rs. 1,55,63,000/-
The following transactions were carried out with Key Management Personnel and related parties in the ordinary course of business: