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Notes to Accounts of Welcure Drugs & Pharmaceuticals Ltd.

Mar 31, 2015

1. SHARE CAPITAL

(a). Terms/Rights attached to Equity Shares

The company has only one class of equity shares having a face value of Rs. 10 per share. Each equity shareholder is entitled to one vote per share. In the event of winding up of the company, the equity shareholders shall be entitled to be repaid remaining assets of the company in the ratio of the amount of capital paid up on such equity shares.

2. Contingent Liability

There is no claim against the Company, which is to be acknowledged as a debt. (Previous Year Nil)

3. Realised value of current assets

In the opinion of the Board and to the best of the knowledge and belief, the value on realisation of current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

4. Foreign Exchange

No earning in foreign exchange during the year was Nil (Previous Year was Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

5. Segment Reporting

During the year, the Company has entered into business activities of one segment only. Hence, the requirement of segment reporting as per Accounting Standard 17 is not applicalbe.

6. Related Party Disclosures

Company has not entered into any transaction with the related party during the year.

7. An amount of Rs. 13,00,000/- (Previous Year Rs. 13,00,000/-) has been shown under current liabilities-expenses payables to one of the director of the Company on account of leave encashment. The Company is of the view that the said liability is payable equivalent to the value stated in the financial statement ason31.03.2015.

8. During the year under audit,the Company has continued to temporally suspend its main business operation and net worth of the Company stands fully eroded. However, business activity of procuring orders on behalf of other party from customers in pharma sector is being continued and the Company received service charges of Rs. 5,06,689.00 during the year (Previous year Rs. 3,76,782.00)

9. The comparative figures given for previous year are taken from the financial statements prepared by following the provisions of Companies Act, 1956.

10. Previous year figures have been regrouped / rearranged wherever considered necessary for comparison.




Mar 31, 2014

1. Contingent Liability

There is no claim against the Company, which is to be acknowledged as a debt.(Previous Year Nil)

2. Realised value of current assets

In the opinion of the Board and to the best of the knowledge and belief, the value on realisation of current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

3. Foreign Exchange

No earning in foreign exchange during the year was Nil (Previous Year was Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

4. Segment Reporting

During the year, the Company has entered into business activities of one segment only. Hence, the requirement of segment reporting as per Accounting Standard 17 is not applicalbe.

5. Related Party Disclosures

Company has not entered into any transaction with the related party (Sh. D.C. Jain. Director) during the year.

6. Accounting for Taxes on Income

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" (AS 22), the company has accounted for deferred taxes during the year as under:

Due to timing difference for above items, deferred tax assets has been worked out to Rs. 2,74,59 481/-(Previous year Rs.2,74,94,570/-). As a matter of prudence deferred tax assets is not being recognized, as per Accounting Standard-22 Accounting for Taxes on Income.

7. Dueto paucity offunds.anamountofRs. 13,00,000/- (Previous YearRs.13,00,000/-) is still payable to one of the employee of the company and outstanding under the head expenses payable as on 31.03.2014.

8. During the year under audit.the Company has continued to temporally suspend its main business operation.However, business activity of procuring orders on behalf of other party from customers in pharma sector is being continued and the Company received service charges of Rs. 3,76,782.00 during the year (Previous year Rs. 3,24,700.00)

9. Previous year figures have been regrouped/rearranged whereever considered necessary for comparisom.


Mar 31, 2013

1 Contingent Liability

There is no claim against the Company, which is to be acknowledged as a debt.

2 Realized value el current assets

in the opinion of the Board and to the best of the knowledge and belief, the value on realization of current assets in the ordinary course of business win not be less than the amount at which they are stated in Balance Sheet.

3 Foreign Exchange

Earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Wit.

4. Segment Reporting

During the year, the Company has entered into business activities of one segment only. Hence, the requirement of sigma not reporting as per Accounting Standard 17 is not applicable.

5 Relate d Party Disclosure

Related Party disclosures, as required by Accounting Standard-18, are as below;

Due to liming difference for above Items, deferred tax assets has been worsted out to Rs, 2!74,94,570/*(Previous year Rs.2.77,10,273/-).

As a matter to prudence deferred tax assets is not being recognized, as per Accounting Standard-22 Accounting for Taxes on Income.

6. Due to paucity of funds, an amount of Rs. 13,00,000/- Is still payable to one of the employee of the company and outstanding under the Head expenses payable as on 31.03.2013.

7. During the year, directors of the Company decided to can out some business activities to earn some income to meet the day to day business running expenses. In continuation of this decision, from the efforts of the directors on behalf of the company, during year commission Income of Rs. 3,24,70(V * has received on booting to certain orders on behalf of other party.

9. Previous year figures have been regrouped / rearranged wherever considered necessary for comparison.


Mar 31, 2012

1 Contingent Liability

There is no claim against the Company, which is to be acknowledged as debt.

2. Realized value of current assets

In the opinion of the Board and to the best of the knowledge and belief, the value on realization of current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

3. Foreign Exchange

Earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

4. Segment Reporting

During the year, the Company has not entered into business activities. Hence, the requirement of segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India (ICAI) is not applicable.

5. Provision of benefits for employees

In the previous year, due to closure of factory at Bhiwadi; most of the employees left the Company gradually. A provision of Rs. 34,00,000/- towards gratuity and leave encashment for the remaining workers/staff was made at the end of the previous year. Out of the said provision, an amount of Rs. 2,86,395/- has been paid to the staff of the Company and Rs. 13,00,000/- payable to one of the directors has been shown as liability in the books of accounts on full & final settlement of such staff & director. The remaining excess provision of Rs. 18,13,605/- has been written off under the head other income as the same is no longer required in the view of the management of the Company.

6. Prior period Items

Prior period expenses amounting to Rs. 16,153/-(Previous Year Rs. 6200/-) mainly on account of personnel and other expenses, have been accounted for under the relevant heads of account.

7. Previous year figures have been regrouped/ rearranged wherever considered necessary for comparison and to compliance with provisions of revised schedule VI of the Companies Act, 1956.


Mar 31, 2011

(1) CONTINGENT LIABILITY : There is no claim against the Company, which is to be acknowledged as debt

(2) GUARANTEE : Pending Bank Guarantee is Nil. (Previous year Rs. 15,000.00.)

2. DETAILS OF MANAGERIAL REMUNERATION

Managing/Whole Time Directors have been paid monthly remuneration as per their terms of appointment, which are lower than Schedule XIII of the Companies Act, 1956.

3. REALISED VALUE OF LOANS & ADVANCES :ln the opinion of the Board and to the best of the knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

4. SSI OUTSTANDING : As on 31.3.2011, no amount payable to Creditors.Therefore, disclosures require to give for the creditors covered under the provisions of Micro, Small and Medium Enterprises Development Act. 2006 is not applicable.

5. LOANS AND ADVANCES (INCLUDING INTER CORPORATE DEPOSITS): An amount of Rs. 21.24 Lacs was given as inter corporate deposit (interest bearing) to RKM Securities Pvt. Ltd. in 1994-95. Considering chances of non recovery, provision for doubtful debt of Rs. 21.24 Lacs has been made in 2008-09. During the year the company has realised Rs. 41.98 Lacs through assets given by R.K.M. Securities Pvt. Ltd.. Out of this Rs. 21.24 Lacs has been adjusted against the outstanding balance in the books and the balance of Rs. 20.74 Lacs has been shown as other income. Consequent to this, provision for doubtful debt of Rs. 21.24 Lacs has also been written back to the profit & loss account.

(6) FOREIGN EXCHANGE : Earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year )Previous Year Nil).

(7) SEGMENT REPORTING : The Compnay operates in one segment i.e. the manufacturing and trading of Pharmaceuticals Formulations and in one geographical area i.e. within India. Hence, the requirement of segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India (ICAI) is not applicable.

(8) RELATED PARTY DISCLOSURES / AS REQUIRED BY ACCOUNTING STANDARD-18, IS AS BELOW:-

A. Relationship:

(i) Key Management Personnel of the Company Whole Time Director - Mr. S. N. P. Ohja

(ii) Whole Time Promoter Director of the Company and thier elatives- Mr. D.C. Jain-Director and his relatives.

9. CONSOLIDATED FINANCIAL STATEMENT

The company has sold its investment in the subsidary company during the year. Therefore there is no requirement for consolidated financial statements.

10. PRIOR PERIOD

Prior period expenses amounting to Rs. 6200/- (Previous Year Rs. 79,818/-)mainly on account of personnel, administration and selling expenses and finance charges, have been accounted for under the relevant heads of account

11. INVESTMENT

During the year. Company had sold its investment of Rs. 43,75,300/- held in quoted and unquoted equity shares for Rs. 8,58,880/-. The transaction has resulted a total loss of Rs. 35,16,420/-. Against such loss, we had already made provisons for diminution in value of investments of Rs. 27,78,625/-. The net loss of Rs. 7,84,800/- after adjustment of provisions already made, has been debited to the profit & loss account.

12. FIXED ASSETS

With the decline of business of the company over the period of time and under utilisation of installed capacity of the Bhiwadi Plant, management had decided to discontinue existing business. To implement this decision, all the fixed assets of the company were sold out and possession thereof handed over to the buyer during the year and profit of Rs. 1,57,90,100/- accounted for in the profit & loss account.

13. OTHER INCOME

The company was having certain liabilities payable to its lenders/creditors, which has been fully & finalally settled during the year either by way of payments or transfer of assets ( net of liabilities and provisions) consequent to such settlements, the amount of Rs. 38,29,618 which remain no longer payable has been written back and shown as other income.

14. PROVISIONS OF BENEFITS FOR EMPLOYEES

Due to closure of factory at Bhiwadi; most of the employees left the Company gradually. The Company has calculated the amount of Rs. 43,75,026/ - towards gratuity and leave encashment for the remaining workers/staff. However, the provision of Rs. 34,00,000/- in respect of said liabilities has been made to the extent of availability of funds with the company and considering the fact that balance amounts have also been forgone by the claimants.

15. REARRANGEMENT & ROUNDING OF

The figures of the previous year have been regrouped and rearranged wherever considered necessary to make them comparable with current year figures.

All figures have been roundedoff to the nearest rupees.


Mar 31, 2010

(1) CONTINGENT LIABILITY : There is no claim against the Company, which is to be acknowledged as debt

(2) GUARANTEE : Pending Bank Guarantee is Rs. 15,000.00 (Previous year Rs. 15,000.00.)

3. REALISED VALUE OF LOANS & ADVANCES :ln the opinion of the Board and to the best of the knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.

4. SSI OUTSTANDING : As on 31.3.2010 amount payable to supplier is not covered under the provisions of Micro, Small and Medium Enterprises Development Act, 2006.

5. LOANS AND ADVANCES (INCLUDING INTER CORPORATE DEPOSIT : An amount of Rs. 21.24 Lacs, given as inter corporate deposit to RKM Securities Pvt. Ltd. in 1994-95 is due from them with interest. The legal action is already taken but final decision is still pending. As per information available presently fron legal action, it is no certainty of collection of amount from the party. Considering chances of non recovery, provision for doubtful debt of Rs. 21.24 Lacs has been made in 2008-09 and the same is maintained at the end of the year as on 31.03.2010.

(6) FOREIGN EXCHANGE: During the year, goods worth of Rs. 33,76,239/- (Previous Year 11,74,497/-) were exported indirectly through channeling/ merchandise exporters. Therefore, earning in foreign exchange during the year was Nil (Previous Year Nil). Also, there is no expenditure in foreign exchange during the year (Previous Year Nil).

(7) SEGMENT REPORTING : The Company operates in one segment i.e. the manufacturing and trading of Pharmaceuticals Formulations and in one geographical area i.e. within India. Hence, the requirement of segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India (ICAI) is not applicalbe.

(8). RELATED PARTY DISCLOSURES / AS REQUIRED BY ACCOUNTING STANDARD -18, IS AS BELOW :-A. Relationship :

(i) Enterprises Controlled by the Promoter/ Key Management Personnel of the Company

Subsidiary of the Company - A.K. Laboratories Ltd. (ii) Key Management Personnel of the Company

Whole Time Director - Mr. S.N.P. Ohja (iii) Whole Time Promoter Director of the Company and their relatives - Mr. D.C.Jain-Director and his relatives.

9. CONSOLIDATED FINANCIAL STATEMENT

Consolidated Financial Statements as per accounting standard 21 "Consolidated Financial Statements" issued by the ICAI, duly audited are enclosed.

10. Prior period expenses amounting to Rs. 79,818/- (Previous Year Rs. 17,66,457/-)mainly on account of personnel, administration and selling expenses and finance charges, nave been accounted for under the relevant heads of account.

11. VALUATION OF INVESTMENT

Investments are stated at cost. However, provision for diminution in value was made of Rs. 28,04,200/- in the previous year to recognize a decline other than temporary in the value of the investments. During the current year, the provision for diminution in value is revised from Rs. 28,04,200/- to Rs.27,78,625/- due to increase in market value of quoted investment by Rs. 25,575/-.

12. BAD DEBTS WRITTEN OFF

During the year, amount of Rs.6,75,034/- is written off as bad debts out of the provisions of doubtful debts (Previous Year Rs.1,57,63,552/-)

13. PROVISION FOR DOUBTFUL DEBTS

Specific provisions for doubtful debts of Rs. 1,38,92,154/-(Rs. 86,77,425/- for debtors was Rs. 52,14,729/- for loans & advances) was made in the previous year in cases where collection of debt is uncertain. In certain cases, legal suits had also been filed for recovery for overdue amount. But the chances of recovery are bleak.Therefore, provision for doybtful debts was made in the previous year. Out of the above provision, an amount of Rs. 9,58,115/- has been withdrawn/utilized and Rs. 6,75,034/- written off against the provisions for doubtful debts during the current year.

A further provision for doubtful debts of Rs. 2,07,900/- is made during the year.

Thus the provision for doubtful debts has worked out to be Rs. 1,24,66,905/- (Rs. 72,52,176/- for debtors and Rs. 52,14,729/- for loans & advances.)

14. REARRANGEMENT & ROUNDING OFF -

(i) The figures of the previous year have been regrouped and rearranged wherever considered necessary to make them comparable with current year figures.

(ii) All Figures have been rounded off to the nearest rupees.

 
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