Mar 31, 2015
1.1 Basis of accounting and preparation of financial statements
The financial statements are prepared to comply in all material aspects
under the Historical Cost convention and in accordance with generally
accepted accounting principles in India and the mandatory Accounting
Standards prescribed under Section 133 of the Companies Act 2013
('Act') read with Rule- 7 of the Companies (Accounts) Rules, 2014, the
provisions of the Act (to the extent notified).
1.2 Use of Estimates
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of assets and liabilities,
and disclosure of contingent liabilities at that date of the financial
statements and the result of operations during the reporting period.
Although such estimates and assumptions are made on reasonable and
prudent basis taking into account all available information, actual
results could differ from these estimates and assumptions and such
differences are recognised in the period in which results are
crystallised.
1.3 Fixed Assets
a) Tangible Assets
Fixed Assets are stated at historical cost less accumulated
depreciation. Cost includes acquisition cost and directly attributable
cost of bringing the assets to its working condition for its intended
use.
b) Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation. The cost comprises purchase price,
borrowing costs and directly attributable costs of bringing the asset
to its working condition for the intended use.
c) Capital Work in Progress comprises the cost of fixed assets that are
not yet ready for their intended use at the reporting date.
1.4 Depreciation and Amortization
a) Depreciation on all tangible assets is charged on "Straight Line
Method" according to the useful life mentioned in Schedule II Part C to
the Companies Act, 2013 except for EDP Equipment's for which based on
internal assessment and independent technical evaluation carried out by
external values the management believes that the useful life is 10
years which best represents the period over which management expects to
use these assets. Hence the useful lives for these assets is different
from the useful lives as prescribed under Part C of Schedule II of the
Companies Act 2013.
b) Intangible assets including software is amortised over the useful
life not exceeding ten years.
c) Leasehold land is amortised over the period of lease.
1.5 Borrowing Cost
Borrowing costs attributable to the acquisition or construction of a
qualifying asset are capitalized as part of the cost of that asset.
Other borrowing costs are recognized as expense in the period in which
these are incurred.
1.6 Inventories
Raw materials, stores, components and other consumables are valued at
cost and net realisable value whichever is lower. The work-inprogress
is valued at cost on estimate. Inventories have been valued excluding
excise paid on purchases.
1.7 Cash and cash equivalents
Cash and cash equivalents in the Cash Flow Statement comprise cash at
bank and in hand and short-term investments with an original maturity
of three months or less
1.8 Revenue Recognition
Revenues from the sale of product are recognized upon delivery, which
is when title passes to the customer.
Revenue from labour charges is recognized on completion of job. In case
of divisible large contracts the revenue is recognized on completion of
each relevant part of the contract.
Interest income is accounted on accrual basis.
1.9 Employee benefits
Employee benefits such as salaries, allowances, non-monetary benefits
which fall due for payment within a period of twelve months after
rendering service, are charged as expense to the profit and loss
account in the period in which the service is rendered. However
gratuity expense is provided in cash basis.
1.10 Earning Per Share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period 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.
1.11 Taxation
Tax expense comprises of current tax and deferred tax.
Current tax is measured at the amount expected to be paid to the tax
authorities, using the applicable tax rates. Deferred tax expense or
benefit is recognized on timing differences being the difference
between taxable income and accounting income that originate in one
period and is likely to reverse in one or more subsequent periods.
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance sheet date. In the event of unabsorbed depreciation and carry
forward of losses, deferred tax assets are recognized only to the
extent that there is virtual certainty supported by convincing evidence
that sufficient future taxable income will be available to realize such
assets. In other situations, deferred tax assets are recognized only to
the extent that there is reasonable certainty that sufficient future
taxable income will be available to realize these assets.
1.12 Provisions, Contingent Liabilities and Contingent Assets
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 (excluding retirement benefits) are
not discounted to its present value and are determined based on best
estimate 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 liabilities are disclosed unless
the possibility of outflow of resources is remote. Contingent assets
are neither recognized nor disclosed in the financial statements.
The estimated liability for product guarantee/warranties is recorded
when products are sold. These estimates are established using
historical information on the nature, frequency and average cost of
warranty claims and management estimates regarding possible future
incidence based on corrective actions on product failures. The timing
of outflows will vary as and when warranty claim will arise - being
typically upto three years
1.13 Foreign currency transactions and translations
Income and expenses in foreign currencies are converted at exchange
rates prevailing on the date of the transaction. Foreign currency
monetary assets and liabilities are translated at the exchange rate
prevailing on the balance sheet date. Any income or expense on account
of exchange difference either on settlement or on translation is
recognized in the Statement of Profit and Loss.
In respect of accounting periods commencing on or after 7th December,
2006, exchange difference arising on reporting of the long-term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in the previous
financial statements are added to or deducted from the cost of the
asset and are depreciated over the balance life of the asset, if these
monetary items pertain to the acquisition of a depreciable fixed asset
Mar 31, 2014
1.1. ''Basis of accounting and preparation of financial statements
The Financial statements have been prepared to comply in all material
respect with the mandatory Accounting Standards notified by companies
(Accounting Standards) rules, 2006 (as amended) & the relevant
provisions of the Companies Act,1956. The financial statements have
been prepared under the historical cost convention on an accrual basis
in case of assets for which provisions for impairment is made and
revaluation is carried out. The accounting policies have been
consistently applied by the company & are consistent with those used in
the previous year.
2.1. Use of Estimates
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets &
liabilities & disclosures of contingent liabilities at the date of
financial statements & the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events & actions, actual results could differ from
these estimates.
2.2. Inventories
Raw materials, stores, components and other consumables are valued at
cost or net realisable value whichever is lower. The work-in-progress
is valued at cost on estimate. Inventories have been valued excluding
excise paid on purchases.
2.3. ''Cash and cash equivalents (for purposes of Cash Flow Statement)
''Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
2.4. ''Cash flow statement
''Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.5. ''Depreciation and amortization
Depreciation is charged on historical cost of assets at rates
applicable under schedule XIV of the Companies Act , 1956, on Straight
Line Method. The Premium on lease hold land is being amortized pro rata
over the period of lease.
2.6. Revenue Recognition
In respect of manufactured goods, bought  out materials and other
supplies revenue is recognized on dispatch of the material from the
company. However , in case of labour charges , which is forming part of
sales, recognized on completion of job. In case of divisible large
contracts the revenue is recognized on completion of each relevant part
of the contract. Sales includes all collection except Sales Tax and
Excise duty.
2.7. Other Income
''Interest income is accounted on accrual basis.
2.8. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation &
impairment losses (if any). Cost comprises the purchase price & any
attributable cost of bringing the asset to its working conditions for
its intended use. Borrowing cost relating to the acquisition of the
fixed asset which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
In respect of accounting periods commencing on or after 7th December,
2006, exchange difference arising on reporting of the long-term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in the previous
financial statements are added to or deducted from the cost of the
asset and are depreciated over the balance life of the asset, if these
monetary items pertain to the acquisition of a depreciable fixed asset.
2.9. Employee benefits
Employee benefits such as salaries, allowances, non-monetary benefits
which fall due for payment within a period of twelve months after
rendering service, are charged as expense to the profit and loss
account in the period in which the service is rendered.
2.10. Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
is adjusted for events of bonus issue; bonus element in a rights issue
to existing shareholders; share split; and reverse share split
(consolidation of shares). Diluted EPS is computed by dividing the net
profit or loss for the year by the weighted average number of equity
shares outstanding during the year as adjusted for the effects of all
dilutive potential equity shares, except where the results are
anti-dilutive.
2.11. Taxation
The Company is having huge unabsorbed depreciation and carry forward
claim of losses under the Income Tax Act, 1961. There is no virtual
certainty that sufficient future taxable income will be available
against which deferred tax assets can be realized, therefore management
has decided to make accounting of deferred tax asset when it will be
reasonably sure that the Company will be able to absorb such deferred
tax assets against future liabilities.
2.12. Provision for Guarantee/Warranty
''The estimated liability for product gauarantee/warranties is recorded
when products are sold. These estimates are established using
historical information on the nature, frequency and average cost of
warranty claims and management estimates regarding possible future
incidence based on corrective actions on product failures. The timing
of outflows will vary as and when warranty claim will arise - being
typically upto three years.
2.13. The Micro, Small and Medium Enterprises Development (MSMED) Act,
2006
The Company getting information as per the received details from few
suppliers constitute Small Scale Industrial undertakings and therefore,
the amount due to such supplier have been identified. The company
received the information from vendors who are registered in regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure relating to amount as at the year end
together with interest paid / payable under this Act has been given.
2.14. Contingent Liability
The Sales Tax Authorities has completed the assessment up to the
financial year 2004-2005. The company holds two entitlement
certificates for deferral of sales tax dues, one for the period
1.5.1990 to 30.04.1999 for an amount of Rs. 98,47,800/- on erection of
main project and the other dated 20.12.1995 for an amount of Rs.
1,49,73,700/- on expansion project. For the purpose of allowing
deferral under second entitlement certificate in the assessment of the
company the sales tax authorities have calculated the deferral amount
at 60.33% of the sales tax payable considering prorata investment in
expansion project and disallowed deferral of 30.67% of the sales tax
payable based on prorata amount of investment in main project where
entitlement limit was already exhausted, however such disallowed amount
together with interest thereon has been stayed as per provision of Sec.
33(4)(C ) of the BST Act, 1959. The company has pleaded that the ratio
of P.V. Textile SA No. 48/2000 dated 17.03.2000 be applied and the
benefit of deferment may be extended to the entire sales. However the
sales tax authorities have not accepted this contention of the company
and matter is pending in appeal for adjudication aforesaid non deferral
portion works out to Rs. 98,75,994/ -.
2.15. Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction. Measurement of
foreign currency monetary items at the Balance Sheet date Foreign
currency monetary items (other than derivative contracts) of the
Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates.
In the case of integral operations, assets and liabilities (other than
non-monetary items), are translated at the exchange rate prevailing on
the Balance Sheet date. Non-monetary items are carried at historical
cost. Revenue and expenses are translated at the average exchange rates
prevailing during the year. Exchange differences arising out of these
translations are charged to the Statement of Profit and Loss.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss. The exchange differences on restatement /
settlement of loans to non-integral foreign operations that are
considered as net investment in such operations are accumulated in a
"Foreign currency translation reserve" until disposal / recovery of the
net investment.
The exchange differences arising on restatement / settlement of
long-term foreign currency monetary items are capitalised as part of
the depreciable fixed assets to which the monetary item relates and
depreciated over the remaining useful life of such assets or amortised
on settlement / over the maturity period of such items if such items do
not relate to acquisition of depreciable fixed assets. The unamortised
balance is carried in the Balance Sheet as "Foreign currency monetary
item translation difference account" net of the tax effect thereon.
Note:-There are no potential outstanding Equity Shares, hence diluted
Earning Per Share not calculated.
Mar 31, 2013
1.1 ''Basis of accounting and preparation of financial statements
The Financial statements have been prepared to comply in all material
respect with the mandatory Accounting Standards notified by companies
(Accounting Standards) rules, 2006 (as amended) & the relevant
provisions of the Companies Act,1956. The financial statements have
been prepared under the historical cost convention on an accrual basis
in case of assets for which provisions for impairment is made and
revaluation is carried out. The accounting policies have been
consistently applied by the company & are consistent with those used in
the previous year.
1.2 Use of Estimates
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets &
liabilities & disclosures of contingent liabilities at the date of
financial statements & the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events & actions, actual results could differ from
these estimates.
1.3 Inventories
Raw materials, stores, components and other consumables are valued at
cost or net realisable value whichever is lower. The work-in-progress
is valued at cost on estimate. Inventories have been valued excluding
excise paid on purchases
1.4 ''Cash and cash equivalents (for purposes of Cash Flow Statement)
''Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.5 ''Cash flow statement
''Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.6 ''Depreciation and amortization
Depreciation is charged on historical cost of assets at rates
applicable under schedule XIV of the Companies Act , 1956, on Straight
Line Method. The Premium on lease hold land is being amortized pro rata
over the period of lease.
1.7 Revenue Recognition
In respect of manufactured goods, bought  out materials and other
supplies revenue is recognized on dispatch of the material from the
company. However , in case of labour charges , which is forming part of
sales, recognized on completion of job. In case of divisible large
contracts the revenue is recognized on completion of each relevant part
of the contract. Sales includes all collection except Sales Tax and
Excise duty.
1.8 Other Income
''Interest income is accounted on accrual basis.
1.9 Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation &
impairment losses (if any). Cost comprises the purchase price & any
attributable cost of bringing the asset to its working conditions for
its intended use. Borrowing cost relating to the acquisition of the
fixed asset which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
In respect of accounting periods commencing on or after 7th December,
2006, exchange difference arising on reporting of the long-term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in the previous
financial statements are added to or deducted from the cost of the
asset and are depreciated over the balance life of the asset, if these
monetary items pertain to the acquisition of a depreciable fixed asset.
1.10 Employee benefits
Employee benefits such as salaries, allowances, non-monetary benefits
which fall due for payment within a period of twelve months after
rendering service, are charged as expense to the profit and loss
account in the period in which the service is rendered.
1.11 Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
is adjusted for events of bonus issue; bonus element in a rights issue
to existing shareholders; share split; and reverse share split
(consolidation of shares). Diluted EPS is computed by dividing the net
profit or loss for the year by the weighted average number of equity
shares outstanding during the year as adjusted for the effects of all
dilutive potential equity shares, except where the results are
anti-dilutive.
1.12 Taxation
The Company is having huge unabsorbed depreciation and carry forward
claim of losses under the Income Tax Act, 1961. There is no virtual
certainty that sufficient future taxable income will be available
against which deferred tax assets can be realized, therefore management
has decided to make accounting of deferred tax asset when it will be
reasonably sure that the Company will be able to absorb such deferred
tax assets against future liabilities.
1.13 Provision for Guarantee/Warranty
''The estimated liability for product guarantee / warranties is recorded
when products are sold. These estimates are established using
historical information on the nature, frequency and average cost of
warranty claims and management estimates regarding possible future
incidence based on corrective actions on product failures. The timing
of outflows will vary as and when warranty claim will arise - being
typically upto three years.
1.14 The Micro, Small and Medium Enterprises Development (MSMED) Act,
2006
The Company has no mechanism of getting information as to whether any
of its suppliers constitute Small Scale Industrial undertakings and
therefore, the amount due to such supplier has not been identified. The
company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amount unpaid as at the year end
together with interest paid / payable under this Act have not been
given.
1.15 Contingent Liability
a. The Sales Tax Authorities has completed the assessment up to the
financial year 2004-2005. The company holds two entitlement
certificates for deferral of sales tax dues, one for the period
1.5.1990 to 30.04.1999 for an amount of Rs. 98,47,800/- on erection of
main project and the other dated 20.12.1995 for an amount of Rs.
1,49,73,700/- on expansion project. For the purpose of allowing
deferral under second entitlement certificate in the assessment of the
company the sales tax authorities have calculated the deferral amount
at 60.33% of the sales tax payable considering prorata investment in
expansion project and disallowed deferral of 30.67% of the sales tax
payable based on prorata amount of investment in main project where
entitlement limit was already exhausted, however such disallowed amount
together with interest thereon has been stayed as per provision of Sec.
33(4)(C ) of the BST Act, 1959. The company has pleaded that the ratio
of P.V. Textile SA No. 48/2000 dated 17.03.2000 be applied and the
benefit of deferment may be extended to the entire sales. However the
sales tax authorities have not accepted this contention of the company
and matter is pending in appeal for adjudication aforesaid non deferral
portion works out to Rs. 98,75,994/ -.
1.16 Foreign currency transactions and translations Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Mar 31, 2012
1.1 'Basis of accounting and preparation of financial statements
The Financial statements have been prepared to comply in all material
respect with the mandatory Accounting Standards notified by companies
(Accounting Standards) rules, 2006 (as amended) & the relevant
provisions of the Companies Act,1956. The financial statements have
been prepared under the historical cost convention on an accrual basis
in case of assets for which provisions for impairment is made and
revaluation is carried out. The accounting policies have been
consistently applied by the company & are consistent with those used in
the previous year.
During the current year, the revised Schedule VI notified under the
Companies Act, 1956, has become applicable to the Company, for
preparation of its financial statements. The adoption of revised
Schedule VI does not impact recognition and measurement principles
followed lor preparation of financial statements. However, it has
significant impact on presentation and disclosures made in the
financial statements. The Company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year. -
1.2 Use of Estimates -
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets &
liabilities & disclosures of contingent liabilities at the date of
financial statements & the results of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events & actions, actual results could differ from
these estimates.
1.3 inventories
Raw materials, stores, components and other consumables are valued at
cost or net realisable value whichever is lower. The work-in-progress
is valued at cost on estimate. Inventories have been valued excluding
excise paid on purchases
1.4 'Cash and cash equivalents (for purposes of Cash Flow Statement)
'Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.5 'Cash flow statement
'Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash hows from operating,
investing and financing activities of the Company are segregated based
on the available information.
1.6 'Depreciation and amortization
Depreciation is charged on historical cost of assets at rates
applicable under schedule XIV of the Companies Act, 1956, on Straight
Line Method. The Premium on lease hold land is being amortized pro rata
over the period of lease.
1.7 Revenue Recognition
In respect of manufactured goods, bought - out materials and other
supplies revenue is recognized on dispatch of the material from the
company. However, in case of labour charges , which is forming part of
sales, recognized on completion of job. In case of divisible large
contracts the revenue is recognized on completion of each relevant part
of the contract. Sales includes all collection except Sales Tax and
Excise duty.
1.8 Other Income
'Interest income is accounted on accrual basis.
1.9 Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation &
impairment losses (if any). Cost comprises the purchase price & any
attributable cost of bringing the asset to its working conditions for
its intended use. Borrowing cost relating to the acquisition of the
fixed asset which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
In respect of accounting periods commencing on or after 7th December,
2006, exchange difference arising on reporting of the long-term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in the previous
financial statements are added to or deducted from the cost of the
asset and are depreciated over the balance life of the asset, if these
monetary items pertain to the acquisition of a depreciable fixed asset.
1.10 Employee benefits
Employee benefits such as salaries, allowances, non-monetary benefits
which fall due for payment within a period of twelve months after
rendering sen/ice, are charged as expense to the profit and loss
account in the period in which the service is rendered.
1.11 Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
is adjusted for events of bonus issue; bonus element in a rights issue
to existing shareholders; share split; and reverse share split
(consolidation of shares). Diluted EPS is computed by dividing the net
profit or loss for the year by the weighted average number of equity
shares outstanding during the year as adjusted for the effects of all
dilutive potential equity shares, except where the results are
anti-dilutive.
1.12 Taxation
The Company is having huge unabsorbed depreciation and carry forward
claim of losses under the Income Tax Act, 1961. There is no virtual
certainty that sufficient future taxable income will be available
against which deferred tax assets can be realized, therefore management
has decided to make accounting of deferred tax asset when it will be
reasonably sure that the Company will be able to absorb such deferred
tax assets against future liabilities.
1.13 Provision for Guarantee/Warranty
'The estimated liability for product gauarantee/warranties is recorded
when products are sold. These estimates are established using
historical information on the nature, frequency and average cost of
warranty claims and management estimates regarding possible future
incidence based on corrective actions on product failures. The timing
of outflows will vary as and when warranty claim will arise - being
typically upto three years.
1.14 The Micro, Small and Medium Enterprises Development (MSMED) Act,
2006
The Company has no mechanism of getting information as to whether any
of its suppliers constitute Small Scale Industrial undertakings and
therefore, the amount due to such supplier has not been identified. The
company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amount unpaid as at the year end
together with interest paid / payable under this Act have not been
given.
1.15 Contingent Liability
a. The Sales Tax Authorities has completed the assessment up to the
financial year 2004-2005. The company holds two entitlement
certificates for deferral of sales tax dues, one for the period
1.5.1990 to 30.04.1999 for an amount of Rs. 98,47,800/- on erection of
main project and the other dated 20.12.1995 for an amount of Rs.
1,49,73,700/- on expansion project. For the purpose of allowing
deferral under second entitlement certificate in the assessment of the
company the sales tax authorities have calculated the deferral amount
at 60.33% of the sales tax payable considering prorata investment in
expansion project and disallowed deferral of 30.67% of the sales tax
payable based on prorata amount of investment in main project where
entitlement limit was already exhausted, however such disallowed amount
together with interest thereon has been stayed as per provision of Sec.
33(4)(C ) of the BST Act, 1959. The company has pleaded that the ratio
of P.V. Textile SA No. 48/2000 dated 17.03.2000 be applied and the
benefit of deferment may be extended to the entire sales. However the
sales tax authorities have not accepted this contention of the company
and matter is pending in appeal for adjudication aforesaid non deferral
portion works out to Rs. 98,75,994/ -.
1.16 Foreign currency transactions and translations initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Mar 31, 2010
1 Basis of preparing the financial statement:
The financial statement are prepared under the historical cost
convention, on accrual basis, in accordance with applicable mandatory
accounting standard issued by the Institute of Chartered Accountants of
India and the relevant provision of the Companies Act, 1956.
2 Revenue Recognition :
In respect of manufactured goods, bought-out materials and other
supplies revenue is recognized on dispatch of the material from the
company. However, in case of labour charges, which is forming part of
sales, recognized on completion of job. In case of divisible large
contracts the revenue is recognized on completion of each relevant part
of the contract. Sales includes all collection except Sales Tax and
Excise duty.
3. Depreciation :
Depreciation is charged on historical cost of assets at rates
applicable under schedule XIV of the Companies Act, 1956, on Straight
Line Method. The Premium on lease hold land is being amortized pro rata
overthe period of lease.
4 Inventory:
Raw materials, stores, components and other consumables are valued at
cost or net realisable value whichever is lower. The work-in-progress
is valued at cost on estimate.
Inventories have been valued including excise paid on purchases.
5. Excise Duty is accounted at the stage of removal of goods from
manufacturing unit. CENVATbenefits have been accounted to the extent
the same are available.
6. Retirement Benefits:
The Company has not specifically laid down any retirement benefit
scheme except Provident Fund contribution, which is accounted on
payment basis. The gratuity liability is charged to the revenue account
on payment basis.
7. Taxation:
Provision for Tax, if any, is made as per the provision of the
Income-tax Act 1961.
8. Events occurred after the date of Balance Sheet but affecting the
accounts materially have been taken into consideration in above
accounts.
OTHER NOTES
9. The Company has settled its secured loan outstanding with State
Bank Indore by OTS and has taken full discharge certificate by paying
OTS amount. On settlement remission waiver of loan liability at Rs.
72,02,073/- have been recognized as Capital Reserve. The Secured Loan
outstanding of State Bank of Travancore, taken over by Kotak Mahindra
Bank, had also been settled forpayment of Rs. 110 lacs and for fresh
issue and allotment of 4 lac equity shares each of Rs. 10/-. Pending to
the issue of shares promoters had pledged their4 lacs equity shares and
had paid off the agreed amount of Rs. 110 lacs. Company had further
negotiation with Kotak Mahindra Bank and got released the . pledged
equity shares of promoters against further cash payment of Rs. 25
lakhs, and obtained full discharge certificate. Remission in loan
liability against principal amount ie 1,08,00,000/- has been recognized
as Capital Reserve and remission in interest liability ie Rs.6,82,048/-
has been recognized as extraordinary income.
10. The Company had entered into settlement agreement in respect of
payment of their dues of Maharashtra Apex Corporation Ltd by execution
of a MOU dated 24th March, 2008 for payment of Rs. 21.24 lakhs payable
within 24 months beginning from March 2008 on a flexible monthly
installment and Company by making payment as agreed has obtained full
discharge certificate.
11. a) Department of Sales Tax has accepted deferral amount in first
scheme at Rs 98,47,800. However in second scheme the deferral has been
restricted to 60.33% on prorata basis. Companys contention of full
eligibility which is in commensurate with ratio of judgment given by
Maharashtra Sales Tax Tribunal in the case of P.V. Textiles SA.No.
48/2000 dt. 17/03/2000, is pending for adjudication in appeals where
company is hopeful of getting necessary orders. The loan deferral
availment has already become due for payment from 01/04/2005 in
installments, but not paid so far. The company has written to the
sales- tax Authorities to review the installments and it is reported
that Sales Tax Authorities proposes to approach BIFR to incorporate
their dues as part of rehabilitation package. Company has submitted
its revival scheme to BIFR, wherein it has requested BIFR to allow
waiver of interest on unpaid installment and a deferral of 5 years from
the date on which first installment became due. b) Company has
obtained certificate from Sales Tax Consultant to the effect that
amount of Sales Tax collected which has been transferred to loan
account has been, properly determined in accordance with the above
mentioned schemes.