Home  »  Company  »  Venlon Enterprises  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Venlon Enterprises Ltd.

Mar 31, 2015

1. TERMS/RIGHTS ATTACHED TO EQUITY SHARES

I The Company has only one class of equity shares having a par value ofRs 5 f- per share IHach holder of equity -share 1% emilled to one vale per share li During 1hc current year, the aroounT of dividend p« yhare rnrogn ized as distnhuiion IP equity shareholders was Ks N) L < Previous year Rs NIL)

2. In evenlof liquidation uf*C Ctimpeny, the holden qf equity shares would be entitled to reteive remain inf aseds of 6* Company, iiflti distribution of all pre leTential amounls Tlsc d isfrihutinn will he m proportion lo ihc number of equity shares held by the Shareholders

3. Of the slmt. 3jM.3Z.39G equity shares of Hs.V- each fully paid up has hetfl alknied lo non-residenls cm iwn-repaJrial inn basis

(i) fish credit From banks are seen red:

(a) by way of first Paripeeau charge cut hypothecation of Company's entire stock-in-trade consisting of raw materials, uod-mpKSSS, finished goods, consumables stores and spares and Teceivables/book debts, both present and future,

(b) by way of first pari passu charge on hypothecation of all existing and future movable assets and Other fixed assets i e. . the plant and machinery at the company's existing plan* at Belavadi Industrial Area. Mysuru,

(c) by way of first pan passu charge by Equitable mortgage of factory Land and Building belonging to the company at Bdavadi Industrial Area. Mysuru. and

(dl funher secured by personal guarantee of the Chairman & Managing Director and the Executive Director (c) Cash credit from hanks cam interest rate -Si; 15 .35% p.a

4. The I,nans from other parties are received from Chairman &. Managing Director. Executive Director of the Company and other entities in which the directors are interested at the interest rate of 13 5% p a. and is repayable on demand.

5. There is no amount due and outstanding lo he [mined to Investor Fduralion and PtntecHim F und E

6. The Comftany lias, nut entered into any forward contracts to miligalc its risks associated with toreian currency fluctuations having undcrly mg transactions and relating 10 firm commitments nr highly- pruhahle forecast trail saci uui.s The company does not emcr inm anv- torn aid contract which is intended for Hading or specula! iv e purposes

6. FAS required by I'ara-tbA of Hie Accounting .klandard AS 1 i issued by The Institute of (.'haltered Aecmimanis of India " Thy FFTeeiy (if Changes m Foteign Exchange tales", during ihu cuncnt financial year translation loss ansing cm account of variation in external commercial borrowing outstanding at the year end has been capitalized to I he extent of Rs 7.1.34.44m utilized in acquit mg capital assets I-urt her 1he Foreign Exchange translation Loss ol'Fts 2,43115 S31 arising there on lues been accounlcd under "Foreign Currency Monetary Hem Translation Difference Account" Accordingly, the balance in ihc said accoum will be amortized over ihe balance lenur ol" loan (uplo 3i" March 2u2ii i Due to ihe change in accounting practice, m accordance with Accounting Standard AS-l I of The Institute of Chartered Accountanis ot'lndu. ihe loss js lower by Ks 3.12.14.iNS after current year amort izuLron of Rs 5,16,1 S2.

7) The company has taken steps to receive cnnsi stoutly quality power tram the power grid, resulting in cconomicallv dahle production if (is ily Further, ihe Company has incurred capital expenditure [hat will increase the capacity of the formaldehyde and Para Formaldehyde plants totwice ils ptosem capacity. Accordingly, the management is of the view- tli.it virtue I certa inly exists regarding sufliriem future mcomci'laxablc income accruing lo the eompany and consequently the past lu-wes are expected to be wiped off Therefore Ihe eompany has recognized the Deterred Tax Asset in the books of Account Ftorrowrngcosts capMahscd during the v ear is Rs 72,87.741/- (PY NJ!.) H I ore on currency translation difference capitalised during 1he year is Rs 73,34,449/- 1 There are no employees who are in receipt of remuneration in tbe aggregate al Ihe rate of not Fess 1han R s '-.(Xin.fifyV- per annum or 500 OOOi- |ier month in respect of part of the year during ihe year

8. Inter-dmsion transfers of goods aggregating to a value of Rx 11 ,-BS ,7S. I OB/- for iniemal use as captive consumption ate disclosed as conn a-, items m Profit and Loss Statement to reflect the into economic value of Production rnter-ve the divisions. This treatment of i.ntra-dmsion transfers differs from the Ircatmenl recommended by Accounting Standard -9 1 Revenue EievugpiLion) presenbed by the Companies iAccnuntmg SundardsJ Rales. 2fKl6 AcMinJingjy. the sales and raw material consumption figures are higher by Rsl I SS "H I -OS/- accounting neaimenl has nn impact on the results of the company

9 Confinnstion Ifom ccnam parlies tinr amounts due to Lhemruinoutil due Irom lliem as pet uccormis of the Cumpuns Han mu hceit received Necessarx adjustment. ifsnv uill be mode when [he iccuunla are i rainn led/KSI led

Excise Dun- approximately Its 20 97 tacs (hwkws yea# Rs.29 76 lacs I on slock assailing clearance has been considered in vuluidiurt of finished

10. he Income lax assessments of (he company have been completed upto the Assessment year 2012-13 There are no demands Outstanding. In vie* of loss lot assessment year 2015-16, the company has been advised that there is JIO liability to income to* and accordingly no provision has been made.

RELATED PARTY Disclosure

A. Relaship:

1. subsidaries NILL

2. Key management person (kmp) and their relatives

Mr. C D Datwani

Mrs. Saroj c dATWANI

3. OTHER RELAT PARTIES (IN WHICH EITHER OF THE DIRECTORS OR THERI)

Ahha Finance Pvt l.rd

C iftd Rftd Fsliihf Pvi

Divine PdIy Hylic IM Ltd

Father H Son bivcstiimts Pvt. Lid

Father £ Son Oven ms Pit Ltd

Kamadhcnti Residency Pvt. Ltd.

MhJipmti Realtors Pvt. Ltd

Sanchay Kes idency Pvt. I .td.

Sanchit Rvaltnrs IM ltd

Sangjxl Residency Pn. Ltd

Sinjo Residency Pvt Ltd.

Sotoj Rrsidenry Pu Lid.

Venlom Investments Pvt I.1d


Mar 31, 2014

1. Terms/ rights attached to equity shares

i. The Company has only one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity share is entitled to one vote per share ii. During the current year, the amount of dividend per share recognized as distribution to equity shareholders was Rs.NIL. (Previous year Rs. NIL)

iii. in event of liquidation of the Company, the holders of equity shares would be entitled 10 receive Remaining assets of the company . after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders

2. (i) Cash credit from bank* are secured:

(a) by way of first paripassu charge, on hypothecation of Company''s entire stock-in-trade consisting of raw materials. stock-m process, finished goods.

consumables stores and. spores and receivables/book. debts, both present and future,

(b) by way of first paripassu charge, on hypothecation of all existing and future movable assets and other fixed assets i.e..., the plant and machinery at The company''s existing plant at Belavadi industrial .Area, Mysore.

c) by way of first paripassu charge, or Equitable mortgage of factory land and Building belonging in the company at Belavadi Industrial Area. Mysore,, and

(d) further secured by personal guarantee of the Chairman & Managing Director and the Executive Director e) Cash credit from banks carry interest rate @ 13.75% p.a.

(ii) The Loans from other parties are received from Chairman & Managing Director . Executive Director of the Company and other entities in which the directors arc interested at the interest rate of 13.5% p.a is repayable on demand.

3. The Aggregate Market Value of Investments in Equity Shares as at 11.03.2014 is Rs 13,19,302/- ( PY Rs. 11,79,900 )

(a) Net Asset Value of SBI Capital Protection Oriented Fund Series !f as at 31.01.2014 is Rs 31,32,025

(b) In view of the Company''s long term investment strategy no provision is considered necessary in respect of diminution, if any, in the Market value of securities field by the Company

4. A Contingent Liability & Commitments not provided for:

A Bank Guarantee furnished to court in respect of pending legal matter Rs 28 lakhs.

B Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for is Nil

C Proposed Dividends; Figures in Rs

The amount of dividends proposed to he distributed to; 31st March, 2014 31st March, 2013

Equity Shareholders Nil Nil D There IS no amount due and outstanding to he credited to Investor Education and Protection Fund.

E (i) The Company has not entered into any forward contracts to mitigate its risk associated with foreign currency fluctuation having underlying transactions and relating firm commitments Or highly probable forecast transactions The company does not enter into any forward contract which is intended for trading or speculative purpose.

(ii) As required by Para 46A of the Accounting Standard AS 11 issued by The Institute of Chartered Accountants. of India " The Effects of "Changes in Foreign Exchages rates", during the current financial year the company has changed the accounting practice because of which translation loss arising on account of variation in external commercial borrowing outstanding at the year end has been capitalized to the extent of Rs. 173,84,448 utilized in acquiring capital assets. Further the Foreign Exchage translation loss of Rs 5,33,75.723 arising there on has been accounted under "Foreign Currency Monetary Item Translation Difference Account" Accordingly, the balance in the said account will be amortized over the balance tenor of loan (upto 31st March 2026). Due to the change in accounting practice, in accordance with AccountingSiandurd AS-11 of The Institute of Chartered Accountants of India, the loss is lower by, Rs 7,07,60,171.

F i) The company has Steps to receive consistently quality power from the power grid, resulting in economically viable Production activity. Further, the company has incurred capital expenditure that will increase the capacity of the Formaldehyde and Para Formaldehyde plants to twice its present capacity. Accordingly, the management is of the view that virtual certainty exists regarding sufficient future income/taxable income accruiing to the company and consequently the past losses are expected to be wiped off Therefore the company has recognized the Deferred Tax Asset in the books of Account

G. Borrowing Cost capitalised used during the year is Rs. 1,73,84,448

H There are no employees who are in receipt of'' remuneration in the aggregate at the rate of not less than Rs. 6,000,000/- pet annum or 500,000/- per month in respect of pan of the year during the year

I Inter-division transfers of goods aggregatng to a value of Rs. 14,11,58,013 for internal use as captive consumption are disclosed as contra-items Profit and Loss Statement to reflect the true economic value of production inter-se the divisions. This treatment of intra-division transfers differs from thee treatment recommended by Accounting Standard - 9 (Revenue Recognition'') prescribed by the Companies (Accounting Standards) Rides, 2006. Accordingly, the sales and raw material consumption figures are higher by Rs. 14,11,58,013/- This accounting treatment has no impact on the results of the company.

J Confirmation from certain paties for amounts due to them/amount due from them as per accounts of the Company has not been received. Necessary adjustment if any will be made when the accounts are reconciled/settled

K Excise Duty approximately Rs.29.76 lacs (Previous year Rs 13.16 lacs) on stock awaiting clearance has been considered in valuation of finished goods

L The Income tax assessments of the company have been completed upto the Assessment year 2011-12 There are no demands outstanding. In view of loss for assessment year 2014-15, the company has been advised that there is no liability to income tax and accordingly no provision has been made

M Previous Years figures have been regrouped, rearranged, reclassified and restated wherever necessary.


Mar 31, 2013

(A) Terms/ rights attached to equity shares

i. The Company has only one class of eqjily shares having a par value of Rs 5/- per share. Each holder ofequity share is entitled to one vote per share

ii. During the current year, the amount of dividend per share recognized as distribution to equity shareholders was Rs NIL (Previous year Rs.NIL)

iii In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts The distribution will be in proportion to the number of equity shares held by the shareholders

iv Of the above, 3,04,32,390 equity shares of Rs.5/- cach fully paid up has been allotted to non-residents on non-repatriation basis

The Aggregate Market Value of Investments in Equity Shares as at 31.03.2013 is Rs. 11,79,900 (I*Y Rs 9,28,132 )

(b) Net Asset Value of SB1 Capital Protection Oriented Fund Series II as at 3) .03.2013 is Rs. 11.88 Market Value oflnvestments in Mutual fund as ai 31.03.2013 is Rs.29,70,000

(c) In view of the Company''s long term investment strategy no provision is considered necessary in rcspcct of diminution, if any. in the Market value of securities held by the Company

A Contingent Liability & Commitments not provided for

a Guarantee to Banks against security furnished to court in respect of pending legal matter Rs.28 lakhs

B Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for is Nil.

C There is no amount due and outstanding to be credited to Investor Education and Protection Fund The Company has rot entered into any forward contracts to mitigate its risks associated with foreign currency fluctuations having underlying transactions and relating to firm commitments or highly probable forecast transactions The company does not enter into any forward contract which is intended for trading or speculative purposes

Deferred Tax Asset (net) on account of the timing differences, (depreciation and other components) has been computed at Rs. 128.05 lacs, which are considered adequate Deferred Tax Asset has not been recognised in the books as a matter of prudcncc Consequently the deferred tax liability of Rs 150 36 Lacs has been credited to the statement of profit and loss This is in accordance with the Accounting Standard AS-22 issued by the Institute of Chattered Accountants of India and as prescribed by the Companies (Accounting Standards) Rules,2006. Major components of deferred tax asset arising on account of timing differences is Depreciation Rs. 1886.22 lacs & unabsorbed business loss Rs.20l4.271acs)

D Borrowing Cost capitalised during the year is Nil.

E There are no employees who are in receipt of remuneration in the aggregate at the rate of not less than Rs.6,000,000/- per annum or 500,000/- per month in respect of part of the year during the year.

F Inter-division transfers of goods aggregating to a value of Rs 45.993,233/* for internal use as captivc consumption arc disclosed as contra-itcms in Profit and Loss Statement to reflect the true economic value of Production inter-se the divisions. This treatment of inlra-division transfers differs from the treatment recommended by Accounting Standard - 9 (Revenue Recognition) prescribed by the Companies (Accounting Standards) Rules, 2006 Accordingly, the sales and raw material consumption figures are higher by Rs.45,993,233/- This accounting treatment has nc impact on the results of the company.

G Confirmation from certain parties for amounts due to them/amount due from them as per accounts of the Company has not been received. Necessary adjustment, if any will he made when the accounts are reconciled/settled.

H Excise Duty approximately Rs. 13.16 lacs (Previous year Rs 28.01 lacs) on stock awaiting clearance has been considered in valuation of finished goods

I The Income tax assessments of Lhe company have been completed upto the Assessment year 2011-12. There arc no demands outstanding. In view of loss for assessment year 2013-14, the company has been advised that there is no liability to income tax and accordingly no provision has been made.

* Includes scrap sales amounting to Rs 0.59 Lacs (P.Y Rs.O 86 Lacs)

* * Includes scrap sales amounting to Rs.04 lacs(P. Y. Rs.7 69 Lacs) -

*-* includes scrap sales amounting to Rs 12.76 Lacs(P.Y. Rs 17.72 Lacs)

J Polyester film turnover for the current year does not include films which arc capttvely consumed, whereas Polyester film turnover for the previous year includes 240 Tonnes of films valued at Rs.266.94 Lacs which were captivcly consumed.

K $ Formaldehyde includes 3,538 Tonnes (P.Y 4,135 Tonnes) of Formaldehyde valued Rs.459 93 Lacs (P.Y. Rs 511 95 Lacs) '' which are captively consumed

L Related Party Disclosure:

A. Relations hire:

1. Subsidiaries

2. Key Management Personnel (KMP) and their Relatives Directors:

Mr Cbantt D Datwam

Mrs. Saroj C Datwani

Mr. SV Jain 1 .

Relatives of Directors :

Ms. Abh a Datwani

3. Other Related Parties (in which either of the directors or their relatives have significant influence)

Abha Finance Pvt. Ltd C and A Real Estate Pvt. Ltd.

Divine Poly Plastic Pvt, Ltd, .

Father & Son Investments Pvt. Ltd.

Father & Son Overseas Pvt. Ltd.

Kamadhenu Residency Pvt. Ltd.

Mid town Realtors Pvt. Ltd

Sanchay Residency Pvt. Ltd.

Sanchit Realtors Pvt. Ltd.

Sangeet Residency Pvt. Ltd

Saroj Residency Pvt. Lid.

Venion Investments Pvt. Ltd,

M Previous years figures have been regrouped, rearranged, reclassified and reslated wherever necessary.


Mar 31, 2010

1 Contingent liability not provided for in Accounts: (As certified by the Management) - Nil

Aggregate Market Value of Investments Rs. 16,07,393/- (P.Y Rs. 18,30,430 /-)

2. Confirmation from certain parties for amounts due to them/amount due from them as per accounts of the Company has not been received Necessary adjustment, if any will be made when the accounts are reconciled/ settled

3. Inter division transfers of goods aggregating to a value of Rs.4224 17 Lacs for internal use as captive consumption are disclosed as contra-items in the Profit and Loss Account to reflect the true economic value of Production inter-se the divisions This treatment of intra-division transfers differs from the treatment recommended by Accounting Standard -9 (Revenue Recognition) prescribed by the Institute of Chartered Accountants of India Accordingly the sales and Raw material consumption figures are higher by Rs.4224.17 Lacs. This accounting treatment has no impact on the results of the Company

4 Excise Duty approximately Rs 26.41 Lacs (P.Y Rs 21 38 Ucs) on stock awaiting clearance have been considered in valuation of finished goods

5. The timing differences, (depreciation and other components) on account of the Deferred Tax Liability has been computed at Rs 281 lacs, which is considered adequate During the current year, although the Deferred Tax Asset has arisen on account of timing differences it has not been recognised keeping in view the angle of prudence as prescribed in Accounting Standard AS-22 issued by the Institute of Chartered Accountants of India

(b) Major components of deferred tax liabilities arising on account of timing differences is Depreciation Rs.281 lacs.

6 Advance recoverable in Cash or in kind or for value to be received (Schedule 10 - Loans & Advances) includes Rs 168 70 Lacs recoverable/to be adjusted over the period of contract with the supplier of Windmill The management has certified that the amount is considered good

7 The Companys leasing arrangements are mainly in respect of office premises The aggregate lease rental payable on these leasing arrangements is charged as rent under " Administrative expenses " in schedule 17. These leasing arrangements are for a period not exceeding five years and are in most cases renewable by mutual consent, on mutually agreeable terms The company has placed a refundable security deposit of Rs. 34.76 lacs in respect of these leasing arrangements

8 Payments to Suppliers as defined under the Micro, Small & Medium Enterprise Development Act, 2006, (The Act) are generally made in accordance with agreed credit terms The amount, if any, overdue as on 31.03.2010 has not been ascertained, and hence no disclosure has been made

9 In view of the Companys long term investment strategy no Provision is considered necessary in respect of diminution in the Market value of shares held by the Company,

10 Previous years figures have been regrouped, rearranged, reclassified and restated wherever necessary.

11 There are no employees who are in receipt of remuneration in the aggregate at the rate of not less than Rs. 24,00,000/- per annum or Rs. 2,00,000/- per month in respect of part of the year during the year.

12 The Company is mainly engaged in following segments

a) Film

b) Formaldehyde

c) Wind Mill

d) Paraformaldehyde

13 Disclosure on related party transactions:

a. Description of relationship and Names of related parties: Key Management Personnel: Mr Chand D Datwani

Chairman & Managing Director

14 Schedule 1 to 20 form an integral part of the Balance Sheet and Profit & Loss Account

* Includes samples/wastage of NIL Kgs (P.Y. nil Kgs) ** Includes samples/wastage of NIL Kgs (P.Y. nil Kgs)

# PET Chips includes 2759 Tonnes (P Y 2446 Tonnes) of Chips valued Rs 2249 Lacs (P.Y. RS 1870 Lacs) which are captively produced and consumed

$ Polyester film includes 1471 Tonnes (P.Y.770 Tonnes) of Film valued Rs. 1478 Lacs (P.Y. RS 872 Lacs) which are captively produced and consumed

*** Formaldehyde includes 6394 Tonnes (P.Y. 6429 Tonnes) of Formaldehyde valued Rs.497 Lacs (P.Y Rs.670 Lacs) which are captively produced and consumed ^Cntg^s.

* PET Chips includes 2759 Tonnes (P Y 2446 Tonnes) of Chips valued at Rs 2249 Lacs (P.Y. Rs 1870 Lacs) which are captively produced and consumed.

# Polyester Film includes 1451 Tonnes (P Y.770 Tonnes) of Film valued at Rs 1478 lacs (P Y Rs 872 Lacs) which are captively produced and consumed.

$ Methanol includes NIL Tonnes (P.Y. NIL tonnes) of Methanol valued at Rs NIL (P.Y. Rs. NIL Lacs), which are captively produced and consumed.

G. Expenditure in foreign currency by way of Foreign Travel Rs.9.37 lacs(P.Y. Rs.6.48 Lacs)

 
Subscribe now to get personal finance updates in your inbox!