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Notes to Accounts of WinPro Industries Ltd.

Mar 31, 2018

26 Related party transaction

(i) Names of related parties and description of relationship:

a) Entity where exercise control: Nil

b) Key management personnel

(1) Allan Rebello

(2) Atul Kumar

(3) Mayank Kotadia

(4) Mitesh Jani

(5) Yogendra Bagree

(6) Neha Gupta

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

(*) The fair value of these investments in equity shares are calculated based on discounted cash flow approach for un-quoted market instruments which are classified as level III fair value hierarchy.

(A) The carrying value of these accounts is considered to be the same as their fair value, due to their short term nature. Accordingly, these are classified as level 3 of fair value hierarchy.

29. Financial risk management

The Company has exposure to following risks arising from financial instruments-

- credit risk

- market risk

- liquidity risk

(a) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

(b) Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) from its financing activities including deposits with banks and investment in quoted and un-quoted equity instruments.

i. Trade and other receivables:

Credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored.

The impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

Expected credit loss (ECL) assessment for corporate customers as at 1 April 2016, 31 March 2017 and 31 March 2018

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (including but not limited to past payment history, security by way of deposits, external ratings, audited financial statements, management accounts and cash flow projections and available press information about customers) and applying experienced credit judgment.

ii. Other financial assets and deposits with banks:

Credit risk on cash and cash equivalent is limited as (including bank balances, fixed deposits with banks) the Company generally transacts with banks with high credit ratings assigned by international and domestic credit rating agencies.

(c) Market Risk Equity price risk

The Company is exposed to equity price risk from investments in equity securities measured at fair value through profit and loss. The Management monitors the proportion of equity securities in its investment portfolio based on market indices and based on company performance for un-equity instruments. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Board of Directors. Further, major investments in un-quoted equity instruments are strategic in nature and hence invested for long-term purpose.

Liquidity Risk

Liquidity is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing the liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements. Accordingly no liquidity risk is perceived.

31. First-time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, have been prepared in accordance with Ind AS. For the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Indian GAAP'' or '' Previous GAAP'').

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on March 31, 2018 together with the comparative period data, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

Optional exemptions availed and mandatory exceptions

In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional exemptions availed

(i) Property, plant and equipment’s

As per Ind AS 101, a Company may elect to:

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for property, plant & equipment and intangible assets as deemed cost.

B. Mandatory exceptions

(i) Estimates

As per Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity''s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS)

The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

- Fair valuation of financial instruments carried at FVTPL

- Impairment of financial assets based on the expected credit loss model

(ii) Derecognition of financial assets and liabilities

As per Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, Financial Instruments, prospectively for transactions occurring on or the after the date of transition to Ind AS. However, an entity may apply the derecognition requirements retrospectively from a date chosen by it if the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

(iii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost and fair value through profit and loss have been done retrospectively except where the same is impracticable.


Mar 31, 2015

1. SHORT TERMS PROVISION

(a) The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) Current liabilities do not include any amount to be credited to investor education and protection fund.

2. RELATED PARTY TRANSACTION

a) Key Managerial Person

Rajendra Karnik Bimal Kamdar

3.The previous year figures have been regrouped, rearranged wherever necessary.


Mar 31, 2014

1. No Bonus shares issued immediately preceding five years from the date of balance sheet

The Company has not received any memorandum (as required to be filed by the Supplier with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March 2014 as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year is NIL.

(a) The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) Current liabilities do not include any amount to be credited to investor education and protection fund.

Note 2. The previous year figures have been regrouped, rearranged wherever necessary.


Mar 31, 2011

1. Previous year figures of the Balance Sheet have been regrouped and reclassified wherever necessary for the purpose of comparison. The amounts have been rounded off to the nearest rupee. The financial statement for the current period are of 9 months i.e. from 1st July, 2010 to 31st March, 2011.

2. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities are adequate and not in excess of the amount reasonably necessary. However in the opinion of the auditors, the current assets in the form of sundry debtors are non-moving and should have been classified as doubtful.

3. Confirmations for balances of Sundry Creditors, Debtors, and Unsecured Loans and Advances by respective parties have not been obtained.

4. Contingent Liabilites :

For A.Y. 2002-2003 penalty proceeding u/s. 271(l)(c) of Income Tax Act, 1961 was intiated against the Company as per the assessment order passed u/s. 143(3) dated 19.02.2005. However, the same was stayed, as the company was is in appeal before the Commissioner of Income Tax (Appeals) agaisnt the said Penalty order. The CIT (Appeals) by his order dated 08.11.2005 upheld the order of assessing officer. Now, the Company is in appeal before the ITAT agaisnt the order of the CIT (Appeals) and the matter is pending till date and is yet to be heard.

No liabilities have been provided for interest and penalites that may be payable for violation of laws applicable for irregular and non-payment of VAT, Service Tax and for delays in meeting statutory provisions of other taxations laws applicable to the company.

5. The company has not received any intimation as on 31st March, 2011, from suppliers regarding their status under the Micro, Small and Medium Enterprises Development, Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

6. Auditor's Remuneration is exclusive of Service Tax.

7. The Company has not paid the VAT Liability of Rs. 1,67,204/- and has also not filed the periodic VAT Returns.

8. The Company has not paid the Service Tax Liability of Rs. 8,14,212/- and has also not filed the periodic Service Tax Returns. The Management is of the opinion that the Service Tax Liability is only Rs. 1,08,594/- after claiming the Refund of Rs. 7,05,617/- for the previous year 2009-10, for which the Company has not fied the Service Tax Returns.

9. The Company is not in possession of the Certificates issued by Foreign Company for withholding Tax amounting to Rs. 15,37,305/- deducted by it from payments made to the Company. The entries pertaining to the same have been passed on the basis of the monthly payments report issued by the said foreign company.

10. During the period under audit, the Company has written off Sundry Creditors amounting to Rs. 48,62,210/- and also has written off Sundry Debtors amounting to Rs. 73,88,325/- as the management feels that it is neighter recoverable nor payable.

11. The computation of net profit for the purpose of calculation of director's remuneration u/s. 349 of the Companies Act, 1956 has not been made in view that no commission is payable or has been paid to the directors of the company of, the period.

12. During the Last year, the Company has issued 58,00,000 preferential Convertible Warrants of Rs. 5/- each issued at Premium of Rs. 5/- per share to the Promoters and the outsiders and during the year, the Company has converted and allotted 21,83,444 shares against such warrants and has raised money to the tune of Rs. 218,34 Lacs. The Company has forfeited 6,72,890 Preferential Convertible Warrants due to non payment of the balance call money within time limit and therefore the share application money received amounting to Rs. 16.82 lacs has been transferred to General Reserves. The Company has transferred excess Share application money received amounting to Rs. 46.02 Lacs to Current Liabilities Account.

During the year, the Company has issued additional 9,04,25,000 convertible warrants of Rs. 5/- each at a premium of Rs. 9/- per share Rs. 3.50 paid up and has received Rs. 777.79 Lacs as share application money.

13. As the company has no manufacturing activity, there are no information to be provided for licenced. Installed and other quantitative details.

In calculating the diluted earning per share, the company has not considered the issue of share Warrants on preferential basis which were not allotted.

14. The financial statements of the subsidiary were not consolidated with the parent company as required by AS 21 which deals with consolidated financial statement due to absence of Audited financial statement of the subsidiary.

15. The company has invested in the unquoted equity shares of the various companies. However, the company does not have physical share certificate representing the same shares.

16. The company has not prepared segment financial statement.

17. Additional Information as required under Schedule VI of the Companies Act, 1956 are either Nil or Not Applicable.

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