Mar 31, 2015
1. Corporate Information
Roxy Exports limited ('the Company') is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956.
The Company is engaged in the business of manufacturing/ trading of
bicycles part.
2. Basis of Preparation
The financial statements have been prepared to comply in accordance
with generally accepted accounting principles in India (Indian GAAP).
The company has prepared these financial statements lo comply in alI
material respects with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 2013. The financial
statements have been prepared on a going concern basis under the
historical cost convention on un accrual basis. Theaccounting policies
have been consistently applied by the Company and are consistent with
those used in the previous year The significant accounting policiesare
as follows:
3. use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent Libilities, at the end of
the reporting period. Although these estimates are based on the
management's bast knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
4. Fixed Assets
Fixed assets arc stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for
the intended use,
5. Depreciation
Depreciation is provided as per schedule II of New companies act 2013.
Depreciation has been provided its per useful lives of various assets
us specified in annexure A of schedule II of companies Act after
retaining residual value of 5% of gross value of asset An amount of
Its. 93003/- has been transferred lo reserves on account of excess
depreciation charged ,as per the new provisions of Companies Act 2013.
6. Inventories
Raw materials, components;, stores and spares are valued at lower of
cost and net realizable value. However, materials and other items held
for use in the production of inventories are not written down below cost
if the finished products in which they will be incorporated are expected
to be sold at or above cost. Cost of raw materials, components and
stores and spares is determined on FIFO basis. Work-in-progress ,md
finished goods are valued at lower of cost and net realizable value.
Cost includes direct materials and labour and a proportion of
manufacturing overheads based on normal operating capacity.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
7. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sales of products- Revenue is recognized when the significant risks and
rewards of ownership of the goods have passed to the buyer and is
stated net of trade discounts, returns and Sales Tax / Value Added Tax
(VAT) but includes Excise Duty. The Company collects sales taxes and
value added taxes on behalf of the government and. therefore, these
arc not economic benefits flowing to the Company. Hence, they are
excluded from revenue. Excise duty deducted from revenue (gross) is the
amount that is included in the revenue (gross) and not thee nitre
amount of liability arising during the year.
Other Income: Other income includes amount of Rs. 81.09 lacs on account
of write back of trading liabilities of previous years. Details of
trading liability along with reasons for write buck are as under:
On account of defective goods- 64,06 lacs
On account of forfeiture of advance money lor non fulfillment of
obligation  Rs. 17,06 lacs
Interest income - Revenue is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable.
8. Borrowing Costs
There is no borrowing from any Bank /F.I's.
9. Foreign Currency Transactions
There is no foreign exchange transaction during the year.
10. Retirement and other Employee benefits
Gratuity: 'I he company has not made any provision for gratuity due to
nil liability on a/c of gratuity..
Provident Fund: Retirement benefit in the- form of Provident Fund is a
defined contribution scheme and the contributions arc charged to the
statement of profit and loss of the year when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the provident funds.
Employees State Itmtrautv. Contribution to FSI Fund is made in
accordance with the provisions of the FSI Act and is charged to Protit
& Loss account.
11. Income taxes
Provision for current income-tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income-tax Act,
1961 enacted in India and tax laws prevailing in the respective tax
jurisdictions where the company operates.
12. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Current investments arc carried in the financial statements at lower of
cost and fair value determined on an individual in vestment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
13. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss fur the period
attributable to equity shareholders (after deducting preference
dividends andattrihutahle taxes) by the weighted avenue number of
equity shares out standing 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), if any.
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 alldilulive potential equity shares,
14. Administrative Expenses:
Admin. Expenses include fees paid to Ahmadabad stock exchange Limited
for Rs. 1,29 lacs as annual lees pertaining from years tram 1997-98 to
2014-15 and to Bombay Stock exchange I imited of Rs. 5.62 lacs for
initiaI listing fees,
15. Cash & cash equlvalent
Cash and cash equivalents in the cash flow statement comprise cash at
bank and on hand and shon-term in vestments with an original maturity of
three months or less.
16. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
rum-occurrencc of one or more uncertainfiiturc events beyond the
control of the Company ora present obligation that i.i not recognized
because it is not probable thatan outflow of resources will be required
to .settle the obligation.
A contingent liability also arises in extremely rare cases where there
is a liability that cannot he recognized because it cannotbe measured
reliably The Company does not recognize acontingent liability but
discloses its existence in the financial statements.
The company has estimated its contingent liabilities in respect of show
cause notices/demand received from government authorities and other in
respect of the following:
Income tax demand contested by Company:
There was a search by Income Tax department on the company premises on
07 08.1992. The income tax cases are pending before Settlement
Commission for A-Y 1990-91 to 1993-94.
17. Related Party Details
ASSOCIATES
a. Mishm International
b. Roxy Industrial Corporation
c. Mittal Tech
Key Manageulent Personnel (KMP)
a, Sh, Subhash Chander Mittal
b, Sh, Am it Mittal
c, Smt. Shukla Mittal
Relatives of KMP
a. Mohit Mittal
b. Rohil Mtitnl
18. Others
Contingent Liabilities not provided for 2014-15 2013-14
i)Income lax A/y 1994-95 Nil Nil
ii) Income Tax A/y 1995-96 47000/- 47000/-
iii) Income Tax ,Ay 1990-97 150000/- 150000/-
*cases for these years have been decided during 2013-14 for which
appeal effect is yet not fiven by department. However we have taken the
estimated amount based on these orders, However the company has again
gone into aooeals with HAT against these orders..
The company is only in one line of business activity i.e. Bicycle
parts, hence the disclosure requirements of the AS-17 on "Segment
Reporting" issued by the ICAl are nut applicable.
None of suppliers have come forward with their registration under the
MSME Development Act 2006 to the Company, so disclosure requirement
can't be given
The company is a listed company from Ahmedabad Stock exchange.
Company acquired the factory land on lease basis from PSIEC, Chd for 99
years.
Material events occurring after the balance sheet date are taken into
cognizance.
Prior period and extra-ordinary chances in accounting policies, having
material effect on the financial affairs of the company (if any) are
disclosed.
Previous year figures have been re-arranged or regrouped wherever
necessary to conform to current year figures.
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