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Notes to Accounts of Roxy Exports Ltd.

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


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.