Mar 31, 2014
1.1 General
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.
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