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Notes to Accounts of Shri Aster Silicates Ltd.

Mar 31, 2015

1. The accounting standards as prescribed by The Companies Accounting Standard Rules, 2006 are applied where ever applicable in preparing and presenting the financial statements.

2. Previous Year figures have been regrouped and rearranged where ever necessary.

3. Balances of Debtors, Creditors & Deposits are subject to confirmation and reconciliation.

4. Contingent Liabilities:

As at 31-03-15 As at 31-03-14

a. Estimated amount of contracts Remaining to be executed on Capital A/c and not provided For

(Fig In lacs) (Fig In Lacs)

1. Triway Consultants Bombay 54.00 54.00

2. VAT/ Sales Tax 100.00 100.00

b. Outstanding guarantee furnished by Banks/Financial Institutions Rs. 5 Lacs GPCB -- Nil -

Rs. 15 Lacs (Gujarat Gas Ltd)

c. Outstanding guarantee furnished In respect of credit facilities to Others - Nil - - Nil -

d. Liabilities in respect of bills Discounted with Banks - Nil - - Nil -

e. Claims against the Company Not acknowledged as debts - Nil - - Nil -

Excess VAT Credit Claimed - Nil - - Nil -

f) The company has assessed its Fixed Assets & Financial Assets for impairment as on 31/03/2015 & concluded that there have no significant impairment that need to be recognized in the books of accounts.

g) Revenue Recognition: Revenue from sale of goods is recognized when it is earned and no significant uncertainty exists as to its ultimate collection. Sales are net of returns and trade discounts, on dispatch of goods to customers. Excise duty collected are reduced from the sale value of goods.

Revenue from sale of goods is recognized when it is earned and no significant uncertainty exists as to its ultimate collection. Sales are net of returns and trade discounts, on dispatch of goods to customers. Excise duty collected are reduced from the sale value of goods.

Company has carried out number of trial runs for stabilization of its new furnaces by using various fuel options & grades of raw material. In many such instances of trial runs substandard quality of glass was produced and a lot of raw material of consumed. The value of such raw material consumed during the trial runs has been charged to the revenue account. Company was though successful in selling off the substandard glass but with huge discount. The said sales has been recognized and credited to revenue. This has resulted in very high consumption of raw material as compared to standard and has in fact resulted in gross loss. As disclosed in the financial statements, the value of manufacturing sales is far less than value of raw material consumed.

h) Deferred Taxation: As per AS-22Deferred Tax Assets & Liabilities are recognized on timing differences between the accounting income and taxable income for the year calculated by applying the rate and tax laws that have been enacted or substantially enacted by the balance sheet date.

i) Provisions & Estimates: A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be enquired to settle the obligation in respect of which reliable estimate can be made. Provisions are not discounted to the present value and are determined based on the best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent assets and liabilities are not recognized.

j) Related Party Disclosures

List of related parties and relationship are as under:

Name Nature of relationship

Mahesh A Maheshwari Key Management Personnel

Namrata M Maheshwari Key Management Personnel

k) The Company is engaged in only 1 major business segment namely Manufacturing of Food Grade Sodium Silicates. Moreover, there are no reportable geographical segments. Hence, comparative statement reporting data as per AS 17 is not applicable.

5. Information regarding issue of Shares:

(i) The company has issued 86,65,511 no. of fresh Equity Shares to Sicom Investments & Finance Limited on 1st August, 2013 on Preferential Allotment basis @ Rs. 11.54/Share. The said allotment is against the Loan Outstanding of Rs. 10,00,00,000/-.

(ii) The company has not issued any shares without payment being not received in cash.

(iii) The company has not taken any buy back of shares.

The Terms & Conditions of Secured Loans are as follows:

Primary & Collateral Security & Names of Directors who have guaranteed the loan taken from SICOM Limited & Sicom Investments & Finance Ltd.:

Legal Mortgage on entire fixed assets and hypothecation of entire current assets of the company situated at-

* Kheda situated at Plot No 3, Block 214/P at mauje Kanera, District Kheda, Gujarat

* Jhagadia Situated at Sub block no. 831, having survey no 274/p, 275/p, 275/A/p and 275/B/p at Jhagadia GIDC Industrial Estate

*Legal Mortgage of Residential Property situated at C 503 and C 504 at Sanskar Flats, Behind Shalby Hospital, Opp. Karnavati Club, SG Highway, Ahmedabad approx built up area of 3960 sq. ft.

*Pledge of entire equity stake of the promoters in aster in DEMAT form. All additional shares acquired by the promoters in future shall also be pledged with SICOM

*Demand Promissory Notes

*Personal Guarantee of Shri Mahesh Maheshwari and Smt. Namrata Maheshwari

(a) The company has not received any information from its suppliers regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure, if any, relating to amounts unpaid as at the period end together with interest payable as required under the said Act could not be disclosed. The Management is of the opinion that the interest, in any, on such account will not be material.

(b) The Company has not received the balance confirmations from any of its creditors.

(c) The Company has not received confirmations for balances receivable from its debtors.

* Inventory is valued at cost or market price whichever is lower and as certified by the management.


Mar 31, 2014

Note-1 : Long Term Borrowing

Primary & Collateral Security & Names of Directors who have guaranteed the loan taken from SICOM Limited & Sicom Investments & Finance Ltd.:

Legal Mortgage on entire fixed assets and hypothecation of entire current assets of the company situated at-

1. Kheda situated at Plot No 3, Block 214/P at mauje Kanera, District Kheda, Gujarat

2. Jhagadia Situated at Sub block no. 831, having survey no 274/p, 275/p, 275/A/p and 275/B/p at Jhagadia GIDC Industrial Estate

-Legal Mortgage of Residential Property situated at C 503 and C 504 at Sanskar Flats, Behind Shalby Hospital, Opp. Karnavati Club, SG Highway, Ahmedabad approx built up area of 3960 sq. ft.

Note-2: Deferred Tax Liability

Consequent to Accounting Standard 22 on Accounting for Tax on Income, the company has accounted for Deferred Tax in respect of Timing Difference. The deferred tax liability relating to earlier years has been adjusted in Profit & Loss Account. The details of deferred tax liability are as under:

(a) The company has not received any information from its suppliers regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure, if any, relating to amounts unpaid as at the period end together with interest payable as required under the said Act could not be disclosed. The Management is of the opinion that the interest, in any, on such account will not be material.

a) The accounting standards as prescribed by The Companies Accounting Standard Rules, 2006 are applied where ever applicable in preparing and presenting the financial statements.

b) Previous Year figures have been regrouped and rearranged where ever necessary.

c) Balances of Debtors, Creditors & Deposits are subject to confirmation and reconciliation.

d) Contingent Liabilities: As at 31-03-14 As at 31-03-13

a. Estimated amount of contracts

Remaining to be executed on

Capital A/c and not provided

For Fig In lacs) (Fig In Lacs)

1. Triway Consultants Bombay 16.00 16.00

2. VAT/ Sales Tax 100.00 100.00

f) The company has assessed its Fixed Assets & Financial Assets for impairment as on 31/03/2014 & concluded that there have no significant impairment that need to be recognized in the books of accounts.

g) Revenue Recognition:

Revenue from sale of goods is recognized when it is earned and no significant uncertainty exists as to its ultimate collection. Sales are net of returns and trade discounts, on dispatch of goods to customers. Excise duty collected are reduced from the sale value of goods.

h) Deferred Taxation:

As per AS-22 Deferred Tax Assets & Liabilities are recognized on timing differences between the accounting income and taxable income for the year calculated by applying the rate and tax laws that have been enacted or substantially enacted by the balance sheet date.

i) Provisions & Estimates:

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which reliable estimate can be made. Provisions are not discounted to the present value and are determined based on the best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent assets and liabilities are not recognized.

j) Related Party Disclosures

List of related parties and relationship are as under:

Name Nature of relationship

Mahesh A Maheshwari Key Management Personnel

Namrata M Maheshwari Key Management Personnel

Chinmay Maheshwari Relative of Key Management Personnel

k) The Company is engaged in only 1 major business segment namely Manufacturing of Food Grade Sodium Silicates. Moreover, there are no reportable geographical segments. Hence, comparative statement reporting data as per AS 17 is not applicable.

1. Broad categories of Major Items of Raw Material consumed:


Mar 31, 2013

1. Cash in hand & closing stock at the end of the year has not been physically verified by us.

2. The company has assessed its Fixed Assets & Financial Assets for impairment as on 31/03/2013 & Concluded that there have no significant impairment that need to be recognized in the books of accounts.

3. Taxation: -

[I] Provision for current Income tax has not been made in accordance with income tax act 1961.

[II] Deferred Tax Accounting :- (ii) Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in on or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted are substantively enacted by the balance sheet date.

Deferred tax assets in respect of un absorbed depreciation and carry forward losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realise these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to relies these assets.

The company is having unabsorbed depreciation and unabsorbed loss under Income Tax Laws, but provision for DTA has not been created as virtual certainty does not exist for future taxable profit which can absorb such losses.

4. The Company is engaged in only 1 business segment namely Manufacturing of Food Grade Sodium Silicates. Moreover, there are no reportable geographical segments. Hence, comparative statement reporting data as per AS 17 is not applicable.


Mar 31, 2012

1 Contingent Liabilities :

(figs in lacs)

As at 31-03-12 As at 31-03-11 a. Estimated amount of contracts

Remaining to be executed on Capital A/c and not provided For 0.00 0.00

1. Tulsi Dye-Chem 46.00 0.00

2. Triway Consultants Bombay 15.00 0.00

3. DGFT ( Delhi) 24.00 0.00

b. Outstanding guarantee furnished

To Banks/Financial Institutions 0.00 0.00

c. Outstanding guarantee furnished In respect of credit facilities to Others 0.00 0.00

d. Liabilities in respec of bills Discounted with Banks 0.00 0.00

e. Claims against the Company Not acknowledged as debts 0.00 0.00

Excess VAT Credit Claimed 4172035 0.00

2 Licensed & Installed Capacity Licenced Installed Capacity Capacity 1190 MT/Day 650 MT/Day

3. Cash in hand & closing stock at the end of the year has not been physically verified by us.

4 The company has assessed its Fixed Assets & Financial Assets for impairment as on 31/03/2012 & Concluded that there have no significant impairment that need to be recognized in the books of accounts.

5. Taxation: -

[I] Provision for current Income tax has not been made in accordance with income tax act 1961.

[II] Deferred Tax Accounting :-

(ii) Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in on or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted are substantively enacted by the balance sheet date.

Deferred tax assets in respect of un absorbed depreciation and carry forward losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to relies these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to relies these assets. As the company is having unabsorbed depreciation and unabsorbed loss provision for DTA to be created but as virtual certainity does not exist for future taxable profit so company is not creating any DTA provision.

6. The Company is engaged in only 1 business segment namely Manufacturing of Food Grain Sodium Silicates . Hence, comparative statement reporting data as per AS 17 is not applicable.

7. Payment to creditors for purchase of Raw materials, Capital Goods & Expenses have not been routed through Banks but adjusted with receivables of the business.

 
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