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Notes to Accounts of R J Bio Tech Ltd.

Mar 31, 2015

1. SHARE CAPITAL

1.1 Term / rights attached to equity shares

The Company has only one class of equity shares having at par value. Each share holder is entitled to one vote per share.

2. It is explained by the management that the company has assessed recoverable value of assets, which worked out to higher than corresponding book value of net assets. Hence no impairment loss has been recognized.

3. Balances of Sundry Debtors, Sundry Creditors, Secured Loans, Unsecured Loans, Advances and Deposits are subject to confirmations.

4. Figures of previous year are regrouped and rearranged wherever necessary.

5. Micro, Small & Medium Enterprises Development Act, 2006 :

Under the Micro, Small & Medium Enterprises Development Act, 2006 which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small & Medium Enterprises. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosure have been made in the accounts.

6. Sales has been accounted for net of Sales return .

7. Discount on sales for the period from 01.04.2014 to 31.03.2015 has been shown seperately as expenses in Statement of Profit & Loss A/c.

8. Prior Period Items :-

Income : Nil

Expenses : Nil

9. Exemption for Agricultural Income :

The company has considered its income as agricultural income thereby treating it as exempt U/s. 10(1) by relying on following decisions :

(i) M/s Pods Biotech Pvt. Ltd. Vs Department of Income Tax, ITAT - Bangalore

(ii) M/s Advanta India Ltd. Vs Department of Income Tax, ITAT - Bangalore

10. Related Party Transactions

As per Accounting Standard 18 "Related Party Disclosures" , issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below

10.1 Name of Related Parties :

Key Management Personnel :

Mr. Raghvendra Shripatro Joshi (Director)

Mrs. Meena R. Joshi (Director)

Mr. Shashikant Vinayakrao Shastri (Director)

Mr.Omprakash Jaiswal (CEO)

Other Related Parties

Maruti Agro Services

Maruti Fertochem Limited

Maruti Tyres (Prop. Mrs. Meena R. Joshi)

Mr. Omprakash Shiolalji Jaiswal (CEO & Manager)

Mr. Harshwardhan Raghavendra Joshi

11. Particulars of the Company :

a) Registration No. - CIN L24234MH2005PLC158420

b) Date of Incorporation 28.12.2005

c) Balance Sheet as on 31st March 2015

d) Nature of Business Production of Hybrid Seeds

e) Name of Bank and A/c No. State Bank of India, Krnati Chowk, Aurangabad C/ C A/C No. - 32133824088

f) PAN AADCR1924L

12. Balance Sheet Abstract & Companies General Business Profile

I. Capital Raised during the year: (Rs. In Lacs)

Public Issue - Right Isssue Nil

Preferential Issue - Bonus Issue Nil

Share Premium -

II. Generic Names of Three Principal Products/ Services of Company ( As per Monetary Terms)

a) Item Code No. (ITC Code)-

Product Description Item Code

Production of Hybrid Seeds 0101

13. Research & Development Expenses : -

Research and Development expenses includes revenue expenses incurred by the company such as Staff Salary, Testing Fees, Technical Fees, Farm Expenses, etc. at its research plant for the purpose of research of seeds. As the company is engaged in the business of producing & marketing of seeds, it has incurred heavy expenditure on research & development, even though revenue expenditure incurred on R & D in one year, its benefit may be derived by the company not only in the year in which it is incurred but over some further period. Therefore company has adopted the policy to claim total revenue expenditure incurred on R & D as deduction while computing taxable income in the year in which this expense is incurred . But in books of accounts, it is deferred for a total period of four years & accordingly it is disclosed in the Balance sheet & Statement of Profit & Loss. The expenditure which is deferred as above is added back in the relevant years, while computing taxable income, as it is claimed 100 % in the year in which it is incurred . Details of revenue R & D exp. incurred , deferred & debited to statement of profit and loss are as under -




Mar 31, 2014

1.Vehicle Loans taken from various Banks & Financial Institutions are secured by hypothecation of vehicles purchased out of said loans.

2. Balances of Unsecured Loans are subject to confirmation & reconciliation if any.

3. The Company has adopted the Accounting Standard (AS-22) "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. As the company is claiming exemption u/s 10 of The Income Tax Act, 1961 for earning profit from agricultural operations, there will be no Income Tax Liability on the company consequently there will also be no Deferred Tax Liability.

4. Balance of security deposits are subject to confirmations.

5. The working capital facility i.e. cash credit & Term Loan, from the State Bank of India, Kranti Chowk, Aurangabad is Secured by :-

a) Hypothecation of Stock, Semi-finished Goods & Finished Goods and Book Debts, etc. Pledge of movable assets like Plant & Machineries, lab equipments, Polyhouse, Tools & Other assets situated at Gut No. 245 & 246 at Village Pharola, Tq. Paithan, Dist. Aurangabad.

b) Primary Security - Equitable Mortgage of Land & Building in the name of the Company, situated at Gut No.245-246, Village Pharola, Paithan Road, Taluka Paithan, Dist. Aurangabad.

c) Hypothecation of existing as well as future entire stocks of raw materials, finished goods, stock-inprocess, spares, packing material of the unit at their factory premises or at some other places including goods in transit, outstanding moneys, book debts & receivables.

d)Collateral Security - Equitable Mortgage of Industrial Plot & Factory Building, Office Building, etc. in the name of Khadkeshwar Oil Mill Pvt Ltd. At Plot No. J-1/8, MIDC, Chikalthana, Aurangabad.

e) Personal Guarantee of Mr.Raghvendra S.Joshi & Mrs. Meena R. Joshi. Corporate Guarantee of Khadkeshwar Oil Mill Pvt. Ltd.

6. Balances of Trade Payables are subject to confirmations & reconciliations if any.

7. Balance of Advance from Customers are subject to confirmations.

8. Installments of Loans Due in Next 12 Months are subject to Sanction Letter issued by the respective Bank. The amount of these installments which are due in next 12 months may vary depending on the change in rate of Interest or repayment schedule.

9. Details of Additions & deletions of Fixed assets are given in Annexure "A"

10. The Fixed assets of the Company have not been revalued during the year under review.

11. Depreciation on fixed assets is provided on Written Down Value Method

12. It is explained by the management that the Company has assessed recoverable value of assets, which worked out to higher than corresponding than book value of net assets, hence no impairment loss has been recognized.

13. Fixed Assets except freehold land are carried at cost of acquisition, Construction or at manufacturing cost, as the case may be, less Accumulated Depreciation.

14. Please refer Note No. 37 for amortisation of Reasearch & Development Expenses.

15. IPO Expenses have been incurred in F.Y 2013-14. As the expenditure incurred is going to benefit in more than one year, the same has been amortised in 5 years i.e only 20% of the expenses has been claimed in current F.Y .

16.Closing Stock is taken as valued and certified by the Management.

16.1 Closing stock has been valued at cost or market price whichever is lower.

16.2 Balances of Advances Paid to Suppliers are subject to confirmations and reconciliation ,if any.

Advance paid to suppliers is in normal course of business which will be cleared in the normal operating cycle of the Company.

It is explained by the management that the company has assessed recoverable value of assets, which worked out to higher than corresponding book value of net assets. Hence no impairment loss has been recognized.

Balances of Sundry Debtors, Sundry Creditors, Secured Loans, Unsecured Loans, Advances and Deposits are subject to confirmations.

Figures of previous year are regrouped and rearranged wherever necessary.

Micro, Small & Medium Enterprises Development Act, 2006 : Total Under the Micro, Small & Medium Enterprises Development Act, 2006 which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small & Medium Enterprises. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosure have been made in the accounts.

Sales has been accounted for net of Sales return . For the period 01.04.2013-30.09.2013, the Discount on Sales has been debited under Selling and Distribution expense whereas for the period 01.10.2013-31.03.2014 discount has been reduced from the value of Sales.

17 Prior Period Items :-

Income : Nil Expenses : Nil

18 Exemption for Agricultural Income :

The Income generated from cultivation and marketing of seeds and vegetables, which is in the nature of agricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961. Hence no provision has been made either for income tax or deferred tax.

19 Related Party Transactions

As per Accounting Standard 18 "Related Party Disclosures" , issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below

19.1 Name of Related Parties :

Key Management Personnel :

Mr. Raghvendra Shripatro Joshi (Director)

Mrs. Meena R. Joshi (Director)

Mr. Shashikant Vinayakrao Shastri (Director)

Other Related Parties

Maruti Agro Services

Maruti Fertochem Limited

Maruti Tyres [Prop. Mrs. Meena R. Joshi]

Mr. Deepak Keshavrao Jantikar (Ex-Director)

Mr. Chandra Prakash Tripathi (Director)

Mr. Balaji Prithviraj Singh (Director)

Mr. Anil Vasant Dharmadhikari (Director)


Mar 31, 2013

1 It is explained by the management that the company has assessed recoverable value of assets, which worked out to higher than corresponding book value of net assets. Hence no impairment loss has been recognized.

2 Balances of Sundry Debtors, Sundry Creditors, Secured Loans, Unsecured Loans, Advances and Deposits are subject to confirmations.

3 The assessee company has not provided / paid Interest as applicable U/s 23 of The Micro, Small and Medium Enterprises Development Act, 2006.

4 Figures of previous year are regrouped and rearranged wherever necessary.

5 Exemption for Agricultural Income :

The Income generated from cultivation and marketing of seeds and vegetables, which is in the nature of agricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961. Hence no provision has been made either for income tax or deferred tax.

6 Related Party Transactions

As per Accounting Standard 18 "Related Party Disclosures" , issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below

6.1 Name of Related Parties :

Key Management Personnel:

Mr. Raghvendra Shripatro Joshi (Director)

Mrs. Meena R. Joshi (Director)

Mr. Shashikant Vinayakrao Shastri (Director)

Other Related Parties

Maruti Agro Services

Maruti Fertochem Limited

Maruti Tyres [Prop. Mrs. Meena R. Joshi]

Mr. Deepak Keshavrao Jantikar (Ex-Director)

Mr. Chandra Prakash Tripathi (Director)

Mr. Balaji Prithviraj Singh (Director)

Mr. Anil Vasant Dharmadhikari (Director)

7] Research & Development Expenses : -

As the company is engaged in the business of producing & marketing of seeds , it has incurred heavy expenditure on research & development, even though revenue expenditure incurred on R & D in one year, its benefit may be derived by the company not only in the year in which it is incurred but over some further period. Therefore company has adopted the policy to claim total revenue expenditure incurred on R & D as deduction while computing taxable income in the year in which this expense is incurred . But in books of accounts, it is deferred for a total period of four years & acordingly it is disclosed in the Balance sheet & Statement of Profit & Loss. The expenditure which is deferred as above is added back in the relevent years, while computing taxable income, as it is claimed 100 % in the year in which it is incurred . Details of revenue R & D exp. incurred , deferred & debited to statement of profit and loss are as under

8] Deferement of Expenses : -

As the company is engaged in the business of producing & marketing of seeds , it has incurred heavy expenditure on Travelling, Marketing & sales promotion expenses, even though revenue expenditure incurred on said expenses in one year, its benefit may be derived by the company not only in the year in which it is incurred but over some further period. Therefore company has adopted the policy to claim total revenue expenditure incurred on said expenses as deduction while computing taxable income in the year in which this expense is incurred. But in books of accounts, it is deferred for a total period of two years & acordingly it is disclosed in the balance sheet & statement of Profit & Loss. The expenditure which is deffered as above is added back in the relevent years, while computing taxable income, as it is claimed 100 % in the year in which it is incurred . Details of expenses incurred , deferred & debited to statement of profit and loss are as under

 
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