Mar 31, 2014
A) SYSTEM OF ACCOUNTING:
The accounts of the company are prepared under the historical
convention using accrual method of accounting. There has been no change
in the method of accounting as compared to preceding previous year.
Since, it is not possible to ascertain with reasonable accuracy the
quantum to be provided in respect of expenditure under any head of
account when the amount in any voucher is less than RS. 300/- whether
prepaid or outstanding the same is to be continued to be accounted on
cash basis.
B) FIXED ASSETS & DEPRECIATION:
i) Fixed assets are stated at cost of acquisition. ii) Depreciation is
provided.
a) On straight-line method at the rates prescribed in Schedule XIV vide
GSR No.756 (E) dated 16.12.93 of the Companies Act, 1956.
b) In respect of additions to and deletions from the Fixed Assets on
pro-data basis with reference to number of completed months.
C) INVENTORIES:
i) Closing Stock of Raw Materials is valued at cost.
ii) The closing stock of Finished Goods is valued at Estimated Cost
i.e. selling price less 10%.
iii) The inventories have been physically verified, valued and
certified by the management.
D) RETIREMENT BENEFITS :
i) Company''s contributions of provident fund paid / payable during the
year are charged to the Profit and Loss Account.
ii) Compensation payable to employees retired is charged out in full in
the year in which such expenditure is incurred.
iii) No provision has been made in the books of accounts of the Company
on account of retirement benefits of the employees, in accordance with
the AS-15 issued by the ICAI, as the same is made on cash basis and
shall be provided in the books of the company as and when paid.
E) ACCOUNTING FOR FOREIGN CURRENCY:
i) Initial Recognition -
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of transaction.
ii) Conversion -
At the year end, monetary items denominated in foreign currencies,
other than those covered by forward contracts, are converted into rupee
equivalents at the year end exchange rates.
All exchange differences arising on settlement and/or conversion on
foreign currency transaction are included in the Profit and Loss
Account. Exchange Differences in forward contract is recognized as
required by AS-11.
F) REVENUE RECOGNITION:
Revenue from sale of goods is recognized when significant risks and
rewards of ownership are transferred to the customers. Sales are net of
trade discounts and sales tax.
G) TAXATION:
(i) Provision for current Tax is made with reference to taxable income
computed for the accounting period, for which the financial statements
are prepared by the tax rates as applicable.
(ii) No deferred Tax Assets are created in the books of the company as
in the opinion of the management, they are not reasonably certain that
there will be sufficient future income to recover such Deferred Tax
Assets.
H) SEGMENT REPORTING:
As per the provisions of Accounting Standard 17 on "SEGMENT REPORTING"
issued by the Institute of Chartered Accountants of India, the Standard
is applicable to the company.
Further, a business segment or geographical segment is a reportable
segment if (a) revenue from sales to external customers and from
transactions with other segments exceed 10% of total revenues (external
and internal) of all segments; or (b) segment result, whether profit or
loss is 10% or more of (i) combined result of all segments in profit or
(ii) combined result of all segments in loss whichever is greater in
absolute amount; or (c) segment assets are 10% or more of all the
assets of all the segments.
However, the company does not fall into any of the above stated
criteria and hence the company does not qualify as reportable
geographical segment and thus no segment reporting is provided.
I) TRADE PAYABLES
Unpaid amount due as on 31.03.2014, to Micro, Small and Medium
enterprise suppliers on account of principal amount together with the
interest thereon under the Micro, Small and Medium enterprise
Development Act, 2006 could not be ascertained by the company in the
absence of information relating to the status of the suppliers and has
not disclosed in the Financial Statements.
J) EARNING PER SHARE:
Earning per share is calculated on Basis Earning per Share Method i.e.
by dividing the net profit for the period attributed to equity
shareholders by the weighted average number of equity share outstanding
during the period.
Mar 31, 2011
A) SYSTEM OF ACCOUNTING:
The accounts of the company are prepared under the historical
convention using accrual method of accounting. There has been no change
in the method of accounting as compared to preceding previous year.
However since it is not possible to ascertain with reasonable accuracy
the quantum to be provided in respect of expenditure under any head of
account when the amount in any voucher is less than RS. 300/- whether
prepaid or outstanding the same is to be continued to be accounted on
cash basis.
B) FIXED ASSETS & DEPRECIATION:
i) Fixed assets are stated at cost of acquisition.
ii) Depreciation is provided.
a) On straight-line method at the rates prescribed in Schedule XIV vide
GSR No.756 (E) dated 16.12.93 of the Companies Act, 1956.
b) In respect of additions to and deletions from the Fixed Assets on
pro-data basis with reference to number of completed months.
C) INVENTORIES:
i) The closing stock of Finished Goods is valued at Cost.
ii) Packing Materials and Oil & Lubricants are consumed during the year
against the job charges.
iii) The inventories have been physically verified, valued and certified
by the management.
D) RETIREMENT BENEFITS :
i) Company's contributions of provident fund paid / payable during the
year are charged to the Profit and Loss Account.
ii) Compensation payable to employees retired is charged out in full in
the year in which such expenditure is incurred.
E) ACCOUNTING FOR FOREIGN CURRENCY:
i) Initial Recognition -
Transactions denominated in foreign currencies are recorded at the
Exchange rates
prevailing on the date of transaction.
ii) Conversion -
At the year end, monetary items denominated in foreign currencies,
other than those covered by forward contracts, are converted into rupee
equivalents at the year end exchange rates.
iii) Exchange Differences -
All exchange differences arising on settlement and/or conversion on
foreign currency transaction are included in the Profit and Loss
Account. Exchange Differences in forward contract is recognized as
required by AS-11.
F) CONTINGENT LIABILITIES:
Contingent Liabilities are disclosed after a careful evaluation of the
facts and legal accept of the matter involved.
i) Contingent liability in respect of penal dues/damages for delay in
payments of statutory dues like PF, profession Tax, Excise Duty, etc
and delayed payment charges on account of overdue payment to creditors,
amount is not ascertainable.
ii) In respect of capital expenditure for construction of building
premises and purchases of machineries.
iii) In respect of Appeal filed by Central Excise Department, Mumbai
before the Supreme Court amounting to Rs. 17604797/-. The Central
Excise department has filed further complaint in this regard before the
court of Honorable Chief Judicial Magistrate, at Silvassa, case is
being protested suitably.
iv) In respect of demand raised by Income Tax Officer for A.Y. 1997-98
Rs. 7223446/- the company has received order dated 30.01.2011 wherein
the demand is reduced to Rs.2,26,940/- and the department has filed
case before High Court against the order of ITAT.
v) In respect of demand raised by Income Tax officer for A.Y. 1998-99
Rs. 4530496/-. The company has preferred an appeal against the said
order.
vi) a) Outstanding guarantees furnished by banks to Government
authority of Rs. 10,00,000/-.
b) An appeal filed by the Company before the Commissioner of Central
Excise (Appeal) the order on the same has been passed by in favour of
the Company against demand of Rs.3,61,537/- (already paid) plus
Rs.16,32,382/- (already paid) and imposed penalty of Rs.3,61,537/- and
; Rs. 1,00,000/- and interest thereon. However the Excise Department
has filed appeal before the CEGAT (case No 103/adj/2001 ADC dated
31.10.2001). The case is being defended by the company.
c) The Appeal being case No OIO No. 71/JC/Vapi/Dem/2004 filed by the
company before the Commissioner of Central Excise (Appeals), Vapi filed
against the order of Jt. Commissioner Central Excise and the
Commissioner (Appeals) has passed order reducing the penalty to Rs.
10,000/- and demand of Rs.93,163/- subject to verification of certain
documents. The case is under settlement.
d) The Appeal being case No OIO No. 82/JC/Vapi/Dem/2004 filed by the
Company before the Commissioner of Central Excise (Appeals), Vapi filed
against the order of Jt. Commissioner Central Excise (Appeals) , Vapi
and the Commissioner (Appeals) has passed the order reducing the demand
to Rs.22,944 Rs.14,405 Rs.5,519/- and penalty Rs.42,868/-
The case is under settlement.
e) Recrona Synthetics Limited has filed case against the Company before
the High Court, Mumbai for a claim of Rs.4,49,38,266/- and interest
thereon Rs.2,99,41,821/- and other claims of Rs.32,,87,546/-. However
the same is being suitably defended by the company.
In all above cases the company has not accepted liability and also
contested by the company. Directors have decided not make provision for
the same. Cenvat benefits is accounted on accrual basis on purchase of
material and appropriated against payment of Excise Duty on clearance
of finished goods.
g) TAXES ON INCOME
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred Tax is recognized, on timing
differences, being the difference between taxable incomes and
accounting income that originate in one year and are capable of
reversal in one or more subsequent year.
h) SEGMENT REPORTING
Segment has been identified in line with the AS - 17, taking into
account the organization structure as well as the differing risks and
returns. The business segment is disclosed as primary segment.
Mar 31, 2008
A) SYSTEM OF ACCOUNTING:
The accounts of the company are prepared under the historical
convention using accrual method of accounting. There has been no change
in the method of accounting as compared to preceding previous year.
However since it is not possible to ascertain with reasonable accuracy
the quantum to be provided in respect of expenditure under any head of
account when the amount in any voucher is less than RS. 300/- whether
prepaid or outstanding the same is to be continued to be accounted on
cash basis.
B) FIXED ASSETS & DEPRECIATION:
i) Fixed assets are stated at cost of acquisition.
ii) Depreciation is provided.
a) On straight-line method at the rates prescribed in Schedule XIV vide
GSR No.756 (E) dated 16.12.93 of the Companies Act, 1956.
b) In respect of additions to and deletions from the Fixed Assets on
pro-data basis with reference to number of completed months.
C) INVENTORIES:
i) There are no closing stock of Raw Materials , Traded Goods and
Spares.
However the closing stock of Raw Materials and Trading Goods were
valued at Cost.
ii) Packing Materials and Oil & Lubricants are consumed during the year
against the job charges.
iii) The inventories have been physically verified, valued and
certified by the management.
D) RETIREMENT BENEFITS :
i) Company's contributions of provident fund paid / payable during the
year are charged to the Profit and Loss Account.
ii) Compensation payable to employees retired is charged out in full in
the year in which such expenditure is incurred.
E) SALES:
There are no Sales during the year.
6) CONTINGENT LIABILITIES:
Contingent Liabilities are disclosed after a careful evaluation of the
facts and legal accept of the matter involved.
Contingent Liabilities not provided for :-
i) Contingent liability in respect of penal dues/damages for delay in
payments of statutory dues like PF, profession Tax, Excise Duty, etc
and delayed payment charges on account of overdue payment to creditors,
amount is not ascertainable.
ii) In respect of capital expenditure for construction of building
premises and purchases of machineries.
iii) In respect of Appeal filed by Central Excise Department, Mumbai
before the Supreme Court amounting to Rs.17604797/-. The Central
Excise department have filed further complaint in this regard before
the court of Honorable Chief Judicial Magistrate, at Silvassa, case is
being protested suitably.
iv) In respect of demand raised by Income Tax Officer for A.Y. 1997-98
Rs.7223446/- the company has received order dated 30.01.2008 wherein
the demand is reduced to Rs.2,26,940/- and the department has filed
case before High Court against the order of ITAT.
v) In respect of demand raised by Income Tax officer for A.Y. 1998-99
Rs.4530496/-. The company has preferred an appeal against the said
order.
vi) Outstanding guarantees furnished by banks to Government authority
of Rs.10,00,000/-.
vii) A ) M/s. Loknath Packaging Pvt. Ltd. has filed claim for amount of
Rs.3,35,100/- with interest @ 29% before silvassa court. The case is
being protested suitably.
b) M/s. Silvassa Cement Products Pvt. Ltd. has filed claim for amount
of Rs. 98,170/- with interest @ 24% before silvassa court.
c) Mr. Gopal Ram Hanuman Prasad has filed claim for amount of Rs.
4,86,182/- with interest 24% before Silvassa court.
d) An appeal filed by the Company before the Commissioner of Central
Excise (Appeal) the order on the same has been passed by in favor of
the Company against demand of Rs.3,61,537/- (already paid) plus Rs.
16,32,382/- (already paid) and imposed penalty of Rs.3,61,537/- and Rs.
1,00,000/- and interest thereon. However the Excise Department has
filed appeal before the CEGAT ( case No 103/adj/2001 ADC dated
31.10.2001). The case is being defended by the company.
e) The Appeal being case No OIO No. 71/JC/Vapi/Dem/2004 filed by the
company before the Commissioner of Central Excise (Appeals), Vapi filed
against the order of Jt.Commissioner Central Excise and the
Commissioner (Appeals) has passed order reducing the penalty to Rs.
10,000/- and demand of Rs.93,163/- subject to verification of certain
documents. The case is under settlement.
f) The Appeal being case No OIO No. 82/JC/Vapi/Dem/2004 filed by the
Company before the Commissioner of Central Excise (Appeals), Vapi filed
against the order of Jt. Commissioner Central Excise (Appeals) , Vapi
and the Commissioner (Appeals) has passed the order reducing the demand
to Rs.22,944 Rs.14,405 Rs.5,519/- and penalty Rs.42,868/- The case
is under settlement.
g) The GIICL has filed a civil suit against the Company for recovery of
Loan of Rs.1,47,39,160/- with interest granted to one of its group
concerns viz. Dalmia Dye-Chem Industries Ltd. in whose favor the
company has given corporate guarantee. The case is being suitably
defended
h) M/s. Modipon Ltd has filed a case before the Silvassa Court against
the company for recovery of Rs.5,53,825/- with interest @ 18% p.a.
However the same is being suitably defended by the company.
i) Mr. Sureshchandra Ram Sakha has filed a case against the Company in
the Labour Court at Silvassa for a claim of Rs.3,80,706/-. However the
same is being suitably defended by the company.
j) Recron Synthetics Limited has filed case against the Company before
the High Court, Mumbai for a claim of Rs.4,49,38,266/- and interest
thereon Rs.2,99,41,821/- and other claims of Rs.32,,87,546/-. However
the same is being suitably defended by the company.
In all above cases the company has not accepted liability and also
contested by the company. Directors have decided not make provision for
the same.
F)CENVAT
Cenvet benefits is accounted on accrual basis on purchase of material
and appropriated against payment of Excise Duty on clearance of
finished goods.
G) TAXES ON INCOME
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred Tax is recognized, on timing
differences, being the difference between taxable incomes and
accounting income that originate I one year and are capable of reversal
in one or more subsequent year.
H) SEGMENT REPORTING -
Segment has been identified in line with the AS - 17, taking into
account the organization structure as well as the differing risks and
returns. The business segment is disclosed as primary segment.
I) IMPAIRMENT LOSS
Impairment loss is provided to the extent the earring amounts of assets
exceed their recoverable amounts. Recoverable amount is higher of an
assets net selling price and its value in use. Value in use is the
present value of estimated future cash flow expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from the sale
of the asset in an arm length transaction between knowledgeable, willing parties, less the cost of disposal.