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 equipmentâs
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.