Mar 31, 2015
01 NATURE OF OPERATIONS:
Nava Bharat Ventures Limited (the Company) has been incorporated on 7th November, 1972. At present the Company is engaged in the business of manufacture of ferro alloys, sugar and generation of power.
02 BASIS OF ACCOUNTING:
The financial statements have been prepared to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013, and in accordance with the generally accepted Accounting Principles in India under the historical cost convention and on accrual basis, except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies are consistent with those used in the previous year.
03 SHARE CAPITAL:
a. Rights attached to equity Shares:
The company has only one class of equity shares having a face value of RS. 2/- per share with one vote per each equity share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
The amount of dividend proposed to be distributed for the year ended 31st March 2015, to equity shareholders is RS. 5.00 per share (31st March 2014 RS. 5.00 per share).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
b. The paid up share capital includes 49,73,510 equity shares of RS. 2/- each fully paid-up, owned by the company, pursuant to the order of Hon''ble High Court of Andhra Pradesh dated 30.12.1996 in the Scheme of amalgamation of Nav Chrome Limited with the Company, which are vested in a Trustee for the benefit of the Company which are to be sold and net sale proceeds are to be paid to the Company and such shares are not considered for dividend.
04. Depreciation for the year is provided as per Schedule II of the Companies Act, 2013, accordingly RS. 510.24 lakhs being the remaining carrying amount of the assets whose remaining useful life is nil and the deferred tax thereon amounting to RS. 84.72 lakhs are recognised in the opening balance of retained earnings.
05. In the opinion of the management, the Current Assets, Loans and Advances are expected to realise at least the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts.
06. Considering the projects being implemented and in view of expected cash inflows in subsidiaries in coming years, the management is of the opinion that there is no need to provide for the losses so far incurred by the subsidiaries.
07. i) Disclosure of Sundry Creditors under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors.
ii) Details of total outstanding dues to Micro and Small Enterprises as per "Micro, Small and Medium Enterprises Development Act, 2006".
08. The Company uses derivative financial instruments such as forward contracts and currency swap to hedge currency exposures, present and anticipated, denominated mostly in US Dollars and all financial and derivative contracts entered into by the Company are for hedging purpose only.
The information on derivative instruments are as follows:
a) Derivative contracts outstanding as at the year end: USD 25.00 lakhs (previous year: nil)
b) Foreign currency exposure not hedged by derivative instruments:
09. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
Particulars 31st March,2015 31st March,2014
i) Contingent liabilities:
a) Claims against the Company not acknowledged as debts 2,863.22 2,625.29
b) Guarantees 62,415.92 50,720.20
c) Other money for which the Company is contingently liable:
i) Demand from Income Tax department 926.63 660.08 disputed
ii) Showcause notices received from 1,313.80 1,339.05 Central Excise Dept.*
iii) Others 198.81 198.81
d) As per the "Renewal Power Purchase obligation (Compliance by Purchase of Renewal Energy/Renewable Energy Certificates) Regulations 2012" of APERC, the Company is under obligation for the year to comply with the said regulations. However as the Company contested the applicability of regulations to the Company in the Hon''ble High Court of A.P., compliance cost is not provided to the extent of 849.69 548.46
Estimated amount of contracts remaining 124.55 104.68 to be executed on capital account and not provided for
* Represent showcause notices received to issue demands and pending for final consideration. The Company has already submitted its objections in writing against the said notices.
10. As required by Accounting Standard (AS 28) "Impairment of Assets", the management has carried out the assessment of impairment of assets and no impairment loss has been recognised during the year other than the assets discarded/ dismantled and written off.
11. Previous year figures have been re-grouped and/or reclassified wherever necessary to make them comparable with those of current year.