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Accounting Policies of Radix Industries (India) Ltd. Company

Mar 31, 2014

A. Basis of Accounting and preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the revised provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements areconsisted with those of previous period.

b. Tangible fixed assets

Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight, duties and taxes, borrowing costs, if any, on specific borrowings utilised for financing the assets upto the date of commissioning, the cost of installation/erection and other incidental expenses incurred to bring the asset to its present location and condition but exclusive of duties and taxes that are subsequently recoverable from taxing authorities.

c. Depreciation and Amortization

Depreciation is charged on pro-rata basis under written-down method value method by following the rates prescribed in schedule XIV to the Companies Act, 1956.

In respect of assets sold or disposed off during the year, depreciation / amortization is provided till the month of sale or disposal of the assets.

d.Borrowing Costs

Borrowing Costs, that are directly attributable to the acquisition or construction of assets, that necessarily take a substantial period of time to get ready for its intended use, are capitalised as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

e. Inventories

Valuation of inventories is made as under:

i) Finished goods are valued at lower of cost or net realizable value.

ii) Raw materials, work-in-progress and stores and spares are valued at cost, following the FIFO Basis.

iii) Work-in-Progress, raw materials, stores, spares are valued at cost except where the net realizable value of the finished goods they are used in is less than the cost of finished goods and in such an event, if the replacement cost of such materials etc., is less than their books value, they are valued at replacement cost.

iv) By-products and scrap are valued at net realizable value.

f. Revenue Recognition

Sales are accounted for net of discounts and rebates. Export Sales are initially accountedat the exchange rate prevailing on the date of documentation/invoicing and the same is adjusted with the difference in the rate of exchange arising on actual receipt of proceeds in foreign exchange.

g. Income Taxes

Income tax expense comprises current and deferred taxes.

i) Current tax is the amount of tax payable on the taxable income for the yearas determined in accordance with the provisions of the Income Tax Act, 1961.

ii) Deferred tax is recognised under the liability method, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods, at the rate of tax enacted or substantively enacted by the balance sheet date.

h. Provisions, Contingent Liabilities and Contingent assets

Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. The company does not recognise contingent liabilities but the same are disclosed in the Notes.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realized.

i. Earnings per share

Earnings per share is calculated by dividing the net profit or loss for the year after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

j. Foreign Exchange Transactions

i) Transactions in foreign currency are initially accounted at exchange rate prevailing on the date of transaction, and adjusted appropriately, with the difference in the rate of exchange arising on actual receipt/payment during the period under report.

ii) At each Balance Sheet date Foreign currency monetary items being receivables/payables are reported using the rate of exchange on that date and difference is recognized as income or expense. Foreign currency non-monetary items are reported using the exchange rate at which they were initially recognized.

iii) In respect of forward exchange contracts in the nature of hedges. Premium or discount on the contract is amortized over the term of the contract. Exchange differences on the contract are recognized as profit or loss in the period in which they arise.

k. Government Grants:

Grants from government are recognized when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Government grants relating to assets the company has opted "capital approach" method. Accordingly, the grant is deducted from the gross value of the assets concerned in arriving at their books value.

For the purpose of the above details the Status of the ''Suppliers'' under the Act has been determined to the extent of and based on the information furnished by the respective parties, and has accordingly been relied upon by the company and its auditors.

A. List of Related parties:

Key Management Personnel

a) Sri.G.Raghu Rama Raju, Chairman & Mg.Director

b) Smt.G.Parvathi, Director

c) Sri G.G.R. Prabhakara Raju, Director

Companies controlled by Key Management Personnel:

M/S. Diamond Drop Property Holdings(India) Private Limited (Smt. G.Parvathi , Director interested as Director in the Company)


Mar 31, 2013

A. Basis of Accounting and preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the revised provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consisted with those of previous period.

b. Tangible fixed assets

Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight, duties and taxes, borrowing costs, if any, on specific borrowings utilised for financing the assets upto the date of commissioning, the cost of installation/erection and other incidental expenses incurred to bring the asset to its present location and condition but exclusive of duties and taxes that are subsequently recoverable from taxing authorities.

c. Depreciation and Amortization

Depreciation is charged on pro-rata basis under written-down method value method by following the rates prescribed in schedule XIV to the Companies Act, 1956.

In respect of assets sold or disposed off during the year, depreciation / amortisation is provided till the month of sale or disposal of the assets.

d. Borrowing Costs

Borrowing Costs, that are directly attributable to the acquisition or construction of assets, that necessarily take a substantial period of time to get ready for its intended use, are capitalised as part of the cost of qualifying asset when it is possible that they will result in future economic benefits and the cost can be measured reliably.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

e. Inventories

Valuation of inventories is made as under:

i) Finished goods are valued at lower of cost or net realizable value.

ii) Raw materials, work-in-progress and stores and spares are valued at cost, following the FIFO Basis.

iii) Work-in-Progress, raw materials, stores, spares are valued at cost except where the net realizable value of the finished goods they are used in is less than the cost of finished goods and in such an event, if the replacement cost of such materials etc., is less than their books value, they are valued at replacement cost.

iv) By-products and scrap are valued at net realizable value.

f. Revenue Recognition

Sales are accounted for net of discounts and rebates. Export Sales are initially accounted at the exchange rate prevailing on the date of documentation/invoicing and the same is adjusted with the difference in the rate of exchange arising on actual receipt of proceeds in foreign exchange.

g. Income Taxes

Income tax expense comprises current and deferred taxes.

i) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

ii) Deferred tax is recognised under the liability method, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods, at the rate of tax enacted or substantively enacted by the balance sheet date.

h. Provisions, Contingent Liabilities and Contingent assets

Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. The company does not recognise contingent liabilities but the same are disclosed in the Notes.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

i. Earnings per share

Earnings per share is calculated by dividing the net profit or loss for the year after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

j. Foreign Exchange Transactions

i) Transactions in foreign currency are initially accounted at exchange rate prevailing on the date of transaction, and adjusted appropriately, with the difference in the rate of exchange arising on actual receipt/payment during the period under report.

ii) At each Balance Sheet date Foreign currency monetary items being receivables/ payables are reported using the rate of exchange on that date and difference is recognized as income or expense. Foreign currency non-monetary items are reported using the exchange rate at which they were initially recognized.

iii) In respect of forward exchange contracts in the nature of hedges. Premium or discount on the contract is amortized over the term of the contract. Exchange differences on the contract are recognized as profit or loss in the period in which they arise.

k. Government Grants:

Grants from government are recognized when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Government grants relating to assets the company has opted "capital approach" method. Accordingly, the grant is deducted from the gross value of the assets concerned in arriving at their books value.


Mar 31, 2012

A. GENERAL:

The accounts are prepared under the historical cost convention and in accordance with generally accepted accounting practices.

b. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight, duties, taxes, incidental expenses relating to the cost of acquisition and the cost of installation/erection, as applicable.

c. DEPRECIATION:

Depreciation is provided under Written Down Value method in accordance with the rates and rules prescribed under schedule XIV of the Companies Act 1956. The company has used the following rates to provide depreciation on its fixed assets.

d. INVENTORIES:

Valuation of inventories is made as under:

i) Finished goods are valued at lower of cost or net realizable value.

ii) Raw materials, work-in-progress and stores and spares are valued at cost, following the FIFO Basis.

iii) Work-in-Progress, raw materials, stores, spares are valued at cost except where the net realizable value of the finished goods they are used in is less than the cost of finished goods and in such an event, if the replacement cost of such materials etc., is less than their books value, they are valued at replacement cost.

iv) By-products and scrap are valued at net realizable value.

e. SALES:

Sales are accounted for net of discounts and rebates. Export Sales are initially accounted at the exchange rate prevailing on the date of documentation/invoicing and the same is adjusted with the difference in the rate of exchange arising on actual receipt of proceeds in foreign exchange.

f. FOREIGN EXCHANGE TRANSACTIONS:

i) Transactions in foreign currency are initially accounted at exchange rate prevailing on the date of transaction, and adjusted appropriately, with the difference in the rate of exchange arising on actual receipt/payment during the period under report.

ii) At each Balance Sheet date Foreign currency monetary items being receivables/ payables are reported using the rate of exchange on that date and difference is recognized as income or expense. Foreign currency non-monetary items are reported using the exchange rate at which they were initially recognized.

iii) In respect of forward exchange contracts in the nature of hedges. Premium or discount on the contract is amortized over the term of the contract. Exchange differences on the contract are recognized as profit or loss in the period in which they arise.

g. CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized in the accounts, but are disclosed after a careful evaluation of the concerned facts and legal issues involved.

For the purpose of the above details the Status of the ''Suppliers'' under the Act has been determined to the extent of and based on the information furnished by the respective parties, and has accordingly been relied upon by the company and its auditors.


Jun 30, 2011

1. The accounts are prepared under the historical cost convention and in accordance with generally accepted accounting practices.

2. The company has not carried out any operations during the year under report. Hence furnishing of quantitative particulars as required under part II of Schedule VI of the Companies Act, 1956 does not arise during the year.

3. Note for Share Capital, Unsecured Loans and Accumulated Losses:

The Company has proposed a Scheme of Arrangement between the Company and Its Shareholders and Unsecured Creditors. The Appointed date of the Scheme is 01st April 2010 and the scheme shall be effective upon fling of certified copies of the court order confirming the scheme of arrangement by the Hon'ble High Court of AP with the Registrar of Companies, A.P.

The salient features of the Scheme are :

a. The Paid up share capital of the Company shall with effect from the appointed date stand reduced from Rs. 3,54,78,000/- (Rupees Three Crore Fifty Four Lakhs Seventy Eight Thousand Only) divided into 35,47,800 (Thirty Five Lakhs Forty Seven Thousand Eight Hundred Only) equity shares of Rs.10/- (Rupees Ten Only) each. to Rs. 35,47,800/- (Thirty Five Lakhs Forty Seven Thousand Eight Hundred Only) divided into 35,47,800 (Thirty Five Lakhs Forty Seven Thousand Eight Hundred Only) equity shares of Rs 1/- each ( Rupees One Only) each with balance of Rs.9/- (Rupees Nine Only) being cancelled off the paid up value of each share in the paid up share capital of the company.

b. Upon such reduction, the total number of shares shall be reduced and consolidated into equity shares of Rs.10/- each at the rate of 10 equity shares of Rs.1/- each into one (1) Equity share of Rs. 10/- each. Accordingly the Paid up share capital of the Company shall be 35,47,800 (Thirty Five Lakhs Forty Seven Thousand Eight Hundred Only) divided into 3,54,780 (Three Lacs Fifty Four Thousand Seven Hundred And Eighty) equity shares of Rs.10/- (Rupees Ten Only) each.

c. Consequent to the reduction of the paid up share capital, an amount of Rs. 3,19,30,200 /- (Rupees Three Crores Nineteen Lakhs Thirty Thousand Two Hundred Only) representing the reduced paid up capital, shall be used to set off the accumulated losses, out of the total amount of Rs. 5,55,48,251/- (Rupees Five Crores Fifty Five Lakhs fourty eight Thousand Two Hundred and Fifty OneOnly) as at 30.06.2011.

d. The unsecured loans of Rs. 2,65,00,000/- as on 30.06.2011, will be converted into fully paid equity shares by allotment of 26,50,000 equity shares of Rs.10/- each at the rate of Rs.10/- per share.

e. The Capital Structure of the Company subsequent to reduction, consolidation and fresh issue and allotment of shares as contemplated in this Scheme shall be as follows:

Note :

i. For the purpose of the scheme, 90% reduction of capital has also been effected on 41,53,000 Equity Shares representing the Forfeited Shares.

ii. For Issue of Fresh Shares upon conversion of unsecured loans, 4,15,300 balance shares out of the Forfeited Shares after reduction of capital will be first used to issue fresh shares.

iii. The post restructuring paid up capital includes reduction of capital, consolidation of shares and fresh issue of shares upon conversion of unsecured loans into equity shares.

f. We have been informed that, the Scheme has been approved unanimously by the shareholders and presently the Petition to Sanction the scheme has been fled with the High Court of AP.

g. Accordingly upon the scheme being effective, the above restructuring will be carried out and a revised balance sheet will be prepared.


Mar 31, 2010

I) DEPRECIATION:

Depreciation on Fixed assets has been provided on Fixed straight line method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956. However the Company does not have asset.

ii) STOCK:

Stocks are valued at cost

iii) FOREIGN CURRENCY TRANSACTION:

There are no transactions involving foreign currency.

iv) DIRECTORS REMUNERATION:

Due to insufficient funds Managing Director is not drawn any remuneration.

v) OTHER INCOME:

Secured loans, Interest payable and TDS written off and credited to Profit and Loss account.


Mar 31, 2009

I) DEPRECIATION:

Depreciation on Fixed assets has been provided on Fixed Straight Line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.However the company does not have any asset.

ii) STOCKS:

Stocks are valued at cost.

iii) PRELIMINARY EXP &SHARE ISSUE EXPENSES

Share issue expenses, though amortized have not been proportionally written off during the year due to losses.

iv) DIRECTORS REMUNERATION:

Due to insufficient funds Managing Director is not drawing any remuneration.

 
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