Mar 31, 2014
i. The accounts are prepared on the historical cost basis and on the accounting Principles of going concern.
ii. Accounting policies not specifically referred to otherwise are consistent in consonance with generally accepted accounting principles.
1.2 Revenue Recognition : Expenses and incomes considerable payable and Receivable respectively are accounted on accrual basis except dividend income and telephone expenses, which are accounted for on cash basis.
1.3 Inflation : Assets and Liabilities are recorded at historical cost. These costs are not adjusted to reflect the changes in the purchasing power of money.
1.4 Valuation of Inventories : Raw materials, stores and spares are valued at cost or a net realizable value whichever is lower; cost is arrived at an average price method basis after considering all incidental expenses and provisions for wastages etc.
1.5 Investment : Long Term Investments are stated at Cost. When there is a decline in the value of any investment, which is not considered to be temporary, then the same is provided for by crediting the value of the investment and charging the same to Profit & Loss Account.
1.6 Depreciation : Depreciation on fixed assets is provided on straight-line method on pro rata basis, in accordance with the provisions of schedule XIV of the Companies Act, 1956. During the year company has charged depreciation on the basis of number of days asset is being used for Processing purpose.
1.7 Retirement Benefit : No Gratuity expenses accounted for during the year.
1.8 Treatment of Contingent Liabilities : Contingent Liabilities are not provided for and are disclosed in notes to accounts.
Contingent liabilities not provided for
a) Contingent liabilities on Account of Income tax are not ascertainable.
b) Contingent liabilities on Account of Sales tax if any are not ascertainable by us.
c) Contingent liabilities on Account of capital goods if any are not ascertainable by us.
d) Contingent liabilities on Account of fiscal status if any are not ascertainable by us.
Demand Appeal and Litigations : Demand raised by Sales-tax department of Rs. 1790261/- against Entry-tax Rs. 3156994/- against M.P. Commercial Tax, Provident Fund Demand of Rs. 3,15,231/- (demand of provident fund of Rs. 4,80,000 has been paid by the company during this financial year) is under appeal before the respective authorities and pending for disposal. For which no liability has been created as the management is confident to get the relief for the same hence no provision has been made.
1.9 Based on the legal advice : No provision for taxation has been provided in view of carried forward losses of the company.
1.10 a) The Company does not possess information as to which of its suppliers are Ancillary industrial undertaking / small scale industrial undertaking holding permanent registration certificate issued by the Directorate of Industries of State or Union Territory, consequently the liability, if any, of interest which would be payable under "The Interest on Delayed payments to small scale and Ancillary industrial Undertaking Act, 1992 cannot be ascertained. However, the Company has not received any claims in respect of Interest. b) As stated in note (a) above the company does not possess information as to which of suppliers are small- scale industrial undertakings. Accordingly the information regarding total outstanding dues to small scale Industrial Undertakings as at the end of the year and that regarding the names of small scale Industrial to whom the company owes more than Rs. 1.00 lacs and outstanding for more than 30 days not been complied and hence not disclosed by the company.
1.12 The company has involvement in certain parties as under: -
a) Trade Receivables include Rs. 1,03,68,628.00 under litigation.
b) In view of the management there is reasonable certainty that amount of other debts which is capable of recovery, However due to suspension of manufacturing and other activities debts has become long overdue and could not be realized confirm by the respective parties. However efforts for realization of this debt continue.
1.12 Segment information : The Company deals in single business segment i.e. of Soyabean. Hence AS-17 on Segment Reporting is not applicable to the Company.
1.13 In the opinion of the management and to the best of their knowledge and belief, the aggregate value of the current assets, loans and advances have their value on realization in ordinary course of business, at least equal to the value at which they are stated in the balance sheet.
1.14 Balance under the main heads, Current Liabilities, Sundry Debtors and Loans and Advances (including balance with Government and other authorities), unsecured loans and others are subject to confirmation / reconciliation by the respective parties. Adjustments, if any will be accounted for as and when reconciled / confirmed.
1.15 Director''s remuneration has not been charged in view of losses.
1.16 Taxes on Income : As per AS-22, deferred tax asset can be recognized and carried forward only to the extent that there is virtual certainty that sufficient taxable income would be available in future, as there is no virtual certainty that sufficient taxable income will be available in future against which such deferred tax asset can be realized hence deferred tax asset have not been recognized.
1.17 Related party disclosure : Names of related parties and related party relationship Related parties having control and significant influence
Names of Related Parties Relationship
Gaurav Bhai Patel Key Management Personnel (KMP)
Arvind bhai Patel Key Management Personnel (KMP)
Dakshaben Patel Relative of KMP
Dineshbhai T.Patel (H.U.F.) Relative of KMP
Divya Grain co. Relative of KMP
Gainex Products Relative of KMP
Meghana Patel Relative of KMP
Naina Ben Patel Relative of KMP
Shiv Trading co. Relative of KMP
Arvind Foods Ltd. KMP having significant influence over the co.