Mar 31, 2015
1. Nature of business
1.1 The Company is in the business of manufacturing adhesive tapes and
plastic ropes. The manufacturing facility of the Company is situated at
Khopoli and its registered office is situated in Andheri (West),
Mumbai. The Company exports its products through its associate
companies.
2.1. Accounting convention
The financial statements of the Company are prepared under historical
cost convention on an accrual basis and comply with the Accounting
Standards ('AS') notifed by the Companies (Accounting Standards) Rules,
2006 except otherwise mentioned elsewhere in the financial statements.
2.2. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities, if any) as at the
date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful
lives of assets etc. Management believes that the estimates used in the
preparation of financial statements are prudent and reasonable. Future
results may vary from these estimates.
2.3. Revenue Recognition
On sale of goods
Sales of the Company comprise sale of BOPP tapes, ropes and adhesives.
Revenue is recognized when the risks and rewards are substantially
transferred to the buyer. This usually occurs when the goods leave the
premises of the Company. The Company collects sales taxes and value
added taxes (VAT) on behalf of the Government and, therefore, these are
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 the entire amount of
liability arising during the year. Excise duty (including education
cess) in respect of fished goods is shown separately as an item of
expense and included in the valuation of fished goods.
Interest income
Interest income is recognized on accrual basis.
2.4. Expenses and incomes
Expenses and incomes are accounted for on accrual basis except for
bonus to employees. Bonus to employees is accounted for on payment
basis. Provisions are made for all known liabilities.
2.5. Fixed Assets and Depreciation
Tangible assets are stated at cost, less accumulated depreciation and
impairment, if any.
Cost includes the purchase price (excluding refundable taxes) and
expenses directly attributable to bring the asset to the location and
condition for its intended use. Examples of directly attributable
expenses included in the acquisition cost are delivery and handling
costs, installation, legal services and consultancy services.
Fixed assets are depreciated on Straight Line Method ('SLM') based on
the useful lives prescribed under Part C of Schedule II of Companies
Act, 2013.
Land is not depreciated since it is deemed to have an indefinite
economic life. Depreciation is charged on a pro  rata basis on
additions made during the year.
Assets costing below Rs 5000 are charged to the Statement of Profit and
Loss in the year of purchase.
2.6. Foreign exchange transactions
Initial recognition
Transactions in foreign currency are booked at standard rates
determined periodically, which approximate the actual rates.
Translation
Cash and bank balances, receivables and liabilities (monetary items) in
foreign currencies as at the yearend are revalued at year end rates and
the unrealized translation differences are included in the Statement of
Profit or Loss.
Gain or loss on acquisition of fixed assets
Gain / loss arising out of fluctuations on realization / payment or
restatement, except those identifiable to acquisition of fixed assets
is charged / credited to the Statement of Profit or Loss. Gain / loss
on account of exchange fluctuations identifiable to fixed assets
acquired are adjusted against the carrying value of the related fixed
asset.
2.7. Inventory
Raw materials, consumable and packing materials, semi fished goods and
fished goods are valued at cost or net realizable value, whichever is
lower.
Cost includes freight, taxes and duties (other than those subsequently
recoverable from the tax authorities) and all other expenses incurred
on bringing the inventory to its present location and condition.
Inventory is valued on weighted average basis.
Cenvat credit for materials purchased for production is taken into
account at the time of purchases. Cenvat credit on purchases of capital
items wherever applicable is recognized when the asset is purchased.
The Cenvat credit so taken is utilized for the payment of excise duty
on goods manufactured. The unutilized Cenvat credit is carried forward
in the financial statements.
2.8. Segment reporting
The Company is primarily engaged in manufacture of Ropes and BOPP
tapes.
Although these two businesses represent separate business segments,
Accounting Standard 17 - "Segment Reporting" issued by the Institute of
Chartered Accountants of India is not applicable to the Company.
2.10 Taxes on income
- Income tax is computed in accordance with Accounting Standard 22 Â
'Accounting for Taxes on Income' ('AS Â 22'), notifed by the Companies
(Accounting Standards) Rules, 2006. Tax expenses are accounted in the
same period to which the revenue and expenses relate.
- Deferred tax assets, other than unabsorbed depreciation or carried
forward losses, are recognized only if there is reasonable certainty
that they will be realized in the future and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
2.11 Provisions and Contingencies
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outfox of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made.
Provisions are not discounted to their 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 not
recognized but are disclosed in the notes to the financial statements
unless the possibility of an outflow of resources embodying economic
benefit is remote. A contingent asset is neither recognized nor
disclosed.
The contingent liabilities as at the Balance Sheet date are disclosed
as under:
- The Company has other contingent liabilities in the form of
guarantees extended from time to time, details of which are maintained
by the Company as per the prescribed standards.
- The Company has given guarantee in favor of Sonal Impex Limited to
enable Sonal Impex Limited avail credit facilities with banks. The
Company is contingently liable to that extent.
The Company is in the process of filing an appeal and contesting the
demand raised by the above order of the tax authorities and the
Management including its consultants and advisors believe that its
position will likely be upheld in the appellate process.
The Management believes that the ultimate outcome of these proceedings
will not have a material adverse effect on the Company's financial
position and results of operations.
2.12 Previous year figures have been regrouped wherever necessary so as
to enable comparison with the figures of the current year.
- Claims not acknowledged as debts: Rs 0.45 lakhs
- Demands raised by the sales tax authorities, Maharashtra for
financial year 2010 Â 2011
The above fees are exclusive of service tax.
The company takes credit for the service tax on the above payment.
3.2 Dues to Micro Small and Medium Enterprises
The Company has not received any intimation from its suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence, the disclosures, if any, relating to
the amounts unpaid as at 31 Mar 2015 together with the interest paid /
payable as required under the said Act have not been given.
Mar 31, 2014
1.1. Accounting convention
The financial statements of the Company are prepared under historical
cost convention on an accrual basis and comply with the Accounting
Standards (''AS'') notified by the Companies (Accounting Standards)
Rules, 2006 except otherwise mentioned elsewhere in the financial
statements.
1.2. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities, if any) as at the
date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful
lives of assets etc. Management believes that the estimates used in the
preparation of financial statements are prudent and reasonable. Future
results may vary from these estimates.
1.3. Revenue Recognition
On sale of goods
Sales of the Company comprise sale of BOPP tapes, ropes and adhesives.
Revenue is recognized when the risks and rewards are substantially
transferred to the buyer. This usually occurs when the goods leave the
premises of the Company.
Interest income
Interest income is recognized on accrual basis.
1.4. Expenses and incomes
Expenses and incomes are accounted for on accrual basis except for
bonus to employees. Bonus to employees is accounted for on payment
basis. Provisions are made for all known liabilities.
1.5. Fixed Assets and Depreciation
Fixed assets acquired by the Company are reported at acquisition value
with deductions for accumulated depreciation and impairment losses, if
any.
The acquisition cost includes the purchase price (excluding refundable
taxes) and expenses directly attributable to bring the asset to the
location and condition for its intended use. Examples of directly
attributable expenses included in the acquisition cost are delivery and
handling costs, installation, legal services and consultancy services.
Fixed assets are depreciated on Straight Line Method (''SLM'') at the
rates prescribed by Schedule XIV of the Companies Act, 1956, unless the
use of a higher rate or an accelerated charge is justified through
technical estimates.
Land is not depreciated since it is deemed to have an indefinite
economic life. Depreciation is charged on a pro - rata basis on
additions made during the year.
Assets costing below Rs 5000 are charged to the Statement of Profit and
Loss in the year of purchase.
1.6. Foreign exchange transactions
Initial recognition
Transactions in foreign currency are booked at standard rates
determined periodically, which approximate the actual rates.
Translation
Cash and bank balances, receivables and liabilities (monetary items) in
foreign currencies as at the year end are revalued at year end rates
and the unrealized translation differences are included in the
Statement of Profit or Loss.
Gain or loss on acquisition of fixed assets
Gain / loss arising out of fluctuations on realization / payment or
restatement, except those identifiable to acquisition of fixed assets
is charged / credited to the Statement of Profit or Loss. Gain / loss
on account of exchange fluctuations identifiable to fixed assets
acquired are adjusted against the carrying value of the related fixed
asset.
1.7. Inventory
Raw materials, consumable and packing materials, semi finished goods
and finished goods are valued at cost or net realizable value,
whichever is lower.
Cost includes freight, taxes and duties (other than those subsequently
recoverable from the tax authorities) and all other expenses incurred
on bringing the inventory to its present location and condition.
Inventory is valued on weighted average basis.
Cenvat credit for materials purchased for production is taken into
account at the time of purchases. Cenvat credit on purchases of capital
items wherever applicable is recognized when the asset is purchased.
The Cenvat credit so taken is utilized for the payment of excise duty
on goods manufactured. The unutilized Cenvat credit is carried forward
in the financial statements.
1.8. Segment reporting
The Company is primarily engaged in manufacture of Ropes and BOPP
tapes.
Although these two businesses represent separate business segments,
Accounting Standard 17 - "Segment Reporting" issued by the Institute of
Chartered Accountants of India is not applicable to the Company.
1.9 Taxes on income
* Income tax is computed in accordance with Accounting Standard 22 -
''Accounting for Taxes on Income'' (''AS - 22''), notified by the Companies
(Accounting Standards) Rules, 2006. Tax expenses are accounted in the
same period to which the revenue and expenses relate.
* Deferred tax assets, other than unabsorbed depreciation or carried
forward losses, are recognized only if there is reasonable certainty
that they will be realized in the future and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
1.10 Provisions and Contingencies
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 a
reliable estimate can be made.
Provisions are not discounted to their 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 not
recognized but are disclosed in the notes to the financial statements
unless the possibility of an outflow of resources embodying economic
benefit is remote.
A contingent asset is neither recognized nor disclosed.
The contingent liabilities as at the Balance Sheet date are disclosed
as under:
* Income Tax demand for Rs. 5.64 lakhs has been raised by the Assessing
officer for the AY 1995 - 96. The Company has disputed the demand and
preferred an appeal before Income Tax (Tribunal). The Company is not
aware of the outcome of the appeal. We are therefore, unable to comment
on the matter.
* The Company has given guarantee in favour of Sonal Impex Limited to
enable Sonal Impex Limited avail credit facilities with banks. The
Company is contingently liable to that extent.
* Claims not acknowledged as debts: Rs 0.45 lakhs
1.11 Previous year figures have been regrouped wherever necessary so as
to enable comparison with the figures of the current year.
Mar 31, 2013
1.1. Accounting convention
The financial statements of the Company are prepared under historical
cost convention on an accrual basis and comply with the Accounting
Standards (''AS'') notified by the Companies (Accounting Standards) Rules,
2006 except otherwise mentioned elsewhere in the financial statements.
1.2. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities, if any) as at the
date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful
lives of assets etc. Management believes that the estimates used in the
preparation of financial statements are prudent and reasonable. Future
results may vary from these estimates.
1.3. Revenue Recognition On sale of goods
Sales of the Company comprise sale of BOPP tapes, ropes and adhesives.
Revenue is recognized when the risks and rewards are substantially
transferred to the buyer. This usually occurs when the goods leave the
premises of the Company.
Interest income
Interest income is recognized on accrual basis.
1.4. Expenses and incomes
Expenses and incomes are accounted for on accrual basis except for
bonus to employees. Bonus to employees is accounted for on payment
basis. Provisions are made for all known liabilities.
1.5. Fixed Assets and Depreciation
Fixed assets acquired by the Company are reported at acquisition value
with deductions for accumulated depreciation and impairment losses, if
any.
The acquisition cost includes the purchase price (excluding refundable
taxes) and expenses directly attributable to bring the asset to the
location and condition for its intended use. Examples of directly
attributable expenses included in the acquisition cost are delivery and
handling costs, installation, legal services and consultancy services.
Fixed assets are depreciated on Straight Line Method (''SLM'') at the
rates prescribed by Schedule XIV of the Companies Act, 1956, unless the
use of a higher rate or an accelerated charge is justified through
technical estimates.
Land is not depreciated since it is deemed to have an indefinite
economic life. Depreciation is charged on a pro  rata basis on
additions made during the year.
Assets costing below Rs 5000 are charged to the Statement of Profit and
Loss in the year of purchase.
1.6. Foreign exchange transactions Initial recognition
Transactions in foreign currency are booked at standard rates
determined periodically, which approximate the actual rates.
Translation
Cash and bank balances, receivables and liabilities (monetary items) in
foreign currencies as at the yearend are revalued at year end rates
and the unrealized translation differences are included in the
Statement of Profit and Loss.
Gain or loss on acquisition of fixed assets
Gain / loss arising out of fluctuations on realization / payment or
restatement, except those identifiable to acquisition of fixed assets is
charged / credited to the Statement of Profit and Loss. Gain / loss on
account of exchange fluctuations identifiable to fixed assets acquired
are adjusted against the carrying value of the related fixed asset.
1.7. Inventory
Raw materials, consumable and packing materials, semi finished goods and
finished goods are valued at cost or net realizable value, whichever is
lower.
Cost includes freight, taxes and duties (other than those subsequently
recoverable from the tax authorities) and all other expenses incurred
on bringing the inventory to its present location and condition.
Inventory is valued on weighted average basis.
Convert credit for materials purchased for production is taken into
account at the time of purchases. Convert credit on purchases of capital
items wherever applicable is recognized when the asset is purchased.
The Convert credit so taken is utilized for the payment of excise duty
on goods manufactured. The unutilized Convert credit is carried forward
in the financial statements.
1.8. Segment reporting
The Company is primarily engaged in manufacture of Ropes and BOPP
tapes.
Although these two businesses represent separate business segments,
Accounting Standard 17 Â "Segment Reporting" issued by the Institute of
Chartered Accountants of India is not applicable to the Company.
1.9 Taxes on income
- Income tax is computed in accordance with Accounting Standard 22 Â
''Accounting for Taxes on Income'' (''AS Â 22''), notified by the Companies
(Accounting Standards) Rules, 2006. Tax expenses are accounted in the
same period to which the revenue and expenses relate.
- Deferred tax assets, other than unabsorbed depreciation or carried
forward losses, are recognized only if there is reasonable certainty
that they will be realized in the future and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
1.10 Provisions and Contingencies
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 a
reliable estimate can be made.
Provisions are not discounted to their 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 not
recognized but are disclosed in the notes to the financial statements
unless the possibility of an outflow of resources embodying economic
benefit is remote.
A contingent asset is neither recognized nor disclosed.
The contingent liabilities as at the Balance Sheet date are disclosed
as under:
- Income Tax demand for Rs. 5.64 lakhs has been raised by the Assessing
officer for the AY 1995 - 96. The Company has disputed the demand and
preferred an appeal before Income Tax (Tribunal). The Company is not
aware of the outcome of the appeal. We are therefore, unable to comment
on the matter.
- The Company has given guarantee in favor of Sonal Impex Limited to
enable Sonal Impex Limited avail credit facilities with banks.
- Claims not acknowledged as debts: Rs 0.45 lakhs
1.11 Previous year figures have been regrouped wherever necessary so as
to enable comparison with the figures of the current year.
Mar 31, 2012
1.1. Accounting convention
The financial statements of the Company are prepared under historical
cost convention on an accrual basis and comply with the Accounting
Standards ('AS') notified by the Companies (Accounting Standards)
Rules, 2006 except otherwise mentioned elsewhere in the financial
statements.
1.2. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities, if any) as at the
date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful
lives of assets etc. Management believes that the estimates used in the
preparation of financial statements are prudent and reasonable. Future
results may vary from these estimates.
1.3. Revenue Recognition
On sale of goods
Sales of the Company comprise sale of BOPP tapes, ropes and adhesives.
Revenue is recognized when the risks and rewards are substantially
transferred to the buyer. This usually occurs when the goods leave the
premises of the Company.
Interest income
Interest income is recognized on accrual basis.
1.4. Expenses and incomes
Expenses and incomes are accounted for on accrual basis except for
bonus to employees. Bonus to employees is accounted for on payment
basis. Provisions are made for all known liabilities.
1.5. Fixed Assets and Depreciation
Fixed assets acquired by the Company are reported at acquisition value
with deductions for accumulated depreciation.
The acquisition cost includes the purchase price, taxes (which are not
subsequently recoverable from the tax authorities), duties, freight and
incidental expenses related to the acquisition and installation of the
asset. Examples of incidental expenses are delivery and handling costs
and installation services.
Fixed assets are depreciated on Straight Line Method ('SLM') at the
rates prescribed by Schedule XIV of the Companies Act, 1956.
Depreciation is charged on a prorata basis on additions made during the
year. Assets costing below Rs. 5000 are expensed out in the year of
purchase.
1.6. Foreign exchange transactions
Initial recognition
Transactions in foreign currency are booked at standard rates
determined periodically, which approximate the actual rates.
Translation
Cash and bank balances, receivables and liabilities (monetary items) in
foreign currencies as at the year end are revalued at year end rates
and the unrealized translation differences are included in the
Statement of Profit and Loss.
Gain or loss on acquisition of fixed assets
Gain/loss arising out of fluctuations on realization/payment or
restatement, except those identifiable to acquisition of fixed assets
is charged/credited to the Statement of Profit and Loss. Gain/loss on
account of exchange fluctuations identifiable to fixed assets acquired
are adjusted against the carrying value of the related fixed asset.
1.7. Inventory
Raw materials, consumable and packing materials, semi finished goods
and finished goods are valued at cost or net realizable value,
whichever is lower.
Cost includes freight, taxes and duties (other than those subsequently
recoverable from the tax authorities) and all other expenses incurred
on bringing the inventory to its present location and condition.
Inventory is valued on weighted average basis.
Cenvat credit for materials purchased for production is taken into
account at the time of purchases. Cenvat credit on purchases of capital
items wherever applicable is recognized when the asset is purchased.
The Cenvat credit so taken is utilized for the payment of excise duty
on goods manufactured. The unutilized Cenvat credit is carried forward
in the financial statements.
1.8. Segment reporting
The Company is primarily engaged in manufacture of Ropes and BOPP
tapes.
Although these two businesses represent separate business segments,
Accounting Standard 17 - "Segment Reporting" issued by the Institute of
Chartered Accountants of India is not applicable to the Company.
1.9 Taxes on income
Income tax is computed in accordance with Accounting Standard 22 -
'Accounting for Taxes on Income' ('AS - 22'), notified by the Companies
(Accounting Standards) Rules, 2006. Tax expenses are accounted in the
same period to which the revenue and expenses relate.
Deferred tax assets, other than unabsorbed depreciation or carried
forward losses, are recognized only if there is reasonable certainty
that they will be realized in the future and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
1.10 Contingent liabilities
The following are the contingent liabilities outstanding as at the
balance sheet date.
Income Tax demand for Rs. 5.64 lakhs has been raised by the Assessing
officer for the AY 1995 - 96. The Company has disputed the demand and
preferred an appeal before Income Tax (Tribunal). The Company is not
aware of the outcome of the appeal. We are therefore, unable to comment
on the matter.
1.11 Since the Directors (including the Managing Director) are not
drawing any commission, computation of commission for the year ended 31
Mar 2012 as prescribed by sections 198, 309, 349 and 268 read with
schedule XIII of the Companies Act, 1956 is not applicable.
1.12 The format of Balance Sheet and Statement of Profit and Loss has
been revised. Hence, previous year figures have been regrouped wherever
necessary so as to enable comparison with the figures of the current
year.
1.13 Related Party Disclosures
Related Party disclosures are given according to Accounting Standard 18
"Related Party Disclosures".
Sl. Name of the party Relationship
No.
1. Sonal Impex Limited Associate
2. Sonal Filaments Limited Associate
3. Sonal Ropes Limited Associate
4. Zain Fresh Agro Limited Enterprise over which
Key Management Personnel
are able to exercise significant
influence
5. Sandeep Arora Key Management Personnel
6. Kamal Arora Key Management Personnel
7. Mona Arora Key Management Personnel
Mar 31, 2011
1. Nature of business
1.1 The Company is in the business of manufacturing adhesive tapes and
plastic ropes. The manufacturing facility of the Company is situated at
Khopoli and its administrative office is situated in Andheri (West),
Mumbai. The Company exports its products through its associate
companies. The Company also gets some part of the manufacturing done
from its associate companies on job work basis.
2. Significant accounting policies
2.1. Accounting convention
The financial statements of the Company are prepared under historical
cost convention on an accrual basis and comply with the Accounting
Standards ('AS') notified by the Companies (Accounting Standards)
Rules, 2006 except otherwise mentioned elsewhere in the financial
statements.
2.2. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities, if any) as at the
date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful
lives of assets etc. Management believes that the estimates used in the
preparation of financial statements are prudent and reasonable. Future
results may vary from these estimates.
2.3. Revenue Recognition
On sale of goods
Sales of the Company comprise sale of BOPP tapes, ropes and adhesives.
Revenue is recognized when the risks and rewards are substantially
transferred to the buyer. This usually occurs when the goods leave the
premises of the Company.
Interest income
Interest income is recognized on accrual basis.
2.4. Expenses and incomes
Expenses and incomes are accounted for on accrual basis except for
bonus to employees. Bonus to employees is accounted for on payment
basis. Provisions are made for all known liabilities.
2.5. Fixed Assets and Depreciation
Fixed assets acquired by the Company are reported at acquisition value
with deductions for accumulated depreciation.
The acquisition cost includes the purchase price, taxes (which are not
subsequently recoverable from the tax authorities), duties, freight and
incidental expenses related to the acquisition and installation of the
asset. Examples of incidental expenses are delivery and handling costs
and installation services.
Fixed assets are depreciated on Straight Line Method ('SLM') at the
rates prescribed by Schedule XIV of the Companies Act, 1956.
Depreciation is charged on a pro - rata basis on additions made during
the year. Assets costing below Rs5000 are expensed out in the year of
purchase.
2.6. Foreign exchange transactions
Initial recognition
Transactions in foreign currency are booked at standard rates
determined periodically, which approximate the actual rates.
Translation
Cash and bank balances, receivables and liabilities (monetary items) in
foreign currencies as at the year end are revalued at year end rates
and the unrealized translation differences are included in the profit
and loss account.
Gain or loss on acquisition of fixed assets
Gain / loss arising out of fluctuations on realization / payment or
restatement, except those identifiable to acquisition of fixed assets
is charged / credited to the profit and loss account. Gain / loss on
account of exchange fluctuations identifiable to fixed assets acquired
are adjusted against the carrying value of the related fixed asset.
2.7. Inventory
Raw materials, consumable and packing materials, semi finished goods
and finished goods are valued at cost or net realizable value,
whichever is lower.
Cost includes freight, taxes and duties (other than those subsequently
recoverable from the tax authorities) and all other expenses incurred
on bringing the inventory to its present location and condition.
Inventory is valued on weighted average basis.
Convert credit for materials purchased for production is taken into
account at the time of purchases. Convert credit on purchases of
capital items wherever applicable is recognized when the asset is
purchased. The Convert credit so taken is utilized for the payment of
excise duty on goods manufactured. The unutilized Convert credit is
carried forward in the financial statements.
2.8. Segment reporting
The Company is primarily engaged in manufacture of Ropes and BOPP
tapes.
Although these two businesses represent separate business segments,
Accounting Standard 17 - "Segment Reporting" issued by the Institute of
Chartered Accountants of India is not applicable to the Company.
2.9 A Furniture near Share
2.10 Taxes on income
Income tax is computed in accordance with Accounting Standard 22 -
'Accounting for Taxes on Income' ('AS - 22'), notified by the Companies
(Accounting Standards) Rules, 2006. Tax expenses are accounted in the
same period to which the revenue and expenses relate.
Deferred tax assets, other than unabsorbed depreciation or carried
forward losses, are recognized only if there is reasonable certainty
that they will be realized in the future and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date._
2.11 Secured Loans
Secured loan represents loans obtained for commercial purposes. These
loans are secured by mortgage of the Company's immovable property and
hypothecation of the movable properties, stocks, book debts and
personal guarantees of the directors. Loan from Kotak Mahindra Prime
Limited is secured against car.
The loan from Kotak Mahindra Prime Limited has been repaid during the
year and a new loan from Axis Bank for a new car has been availed. The
loan is secured against the car. Amount payable within 1 year is Rs 1.48
lakhs.
2.12 Contingent liabilities
The following are the contingent liabilities outstanding as at the
balance sheet date.
Income Tax demand for Rs.5.64 lakhs has been raised by the Assessing
officer for the AY 1995 - 96. The Company has disputed the demand and
preferred an appeal before Income Tax (Tribunal) and final judgment is
awaited.
2.13 Unsecured loans
Under the packaging scheme of incentives of the Government of
Maharashtra, the Company is entitled to defer its liability for the
payment of sales tax up to a period of 10 years for its manufacturing
facility at Khopoli.
The amount is payable as per liability determined by the Sales Tax
authorities. The Company has paid Rs22.13 lakhs as sales tax liability
on this account during the year.
2.14 Since the Directors (including the Managing Director) are not
drawing any commission, computation of commission for the year ended 31
Mar 2011 as prescribed by sections 198, 309, 349 and 268 read with
schedule XIII of the Companies Act, 1956 is not applicable.
2.15 Previous year figures have been regrouped wherever necessary. ;-
Notes:
1. Items of a similar nature may be disclosed in aggregate by type of
related party except when separate disclosure is necessary for an
understanding of the effects of related party transactions on the
financial statements of the reporting enterprise. Disclosure of details
of particular transactions with individual related parties would
frequently be too voluminous to be easily understood. Accordingly,
items of a similar nature may be disclosed in aggregate by type of
related party. However, this is not done in such a way as to obscure
the importance of significant transactions. Hence, purchases or sales
of goods are not aggregated with purchases or sales of fixed assets.
Nor a material related party transaction with an individual party is
clubbed in an aggregated disclosure.
Mar 31, 2010
1.1. Accounting convention
The financial statements of the Company are prepared under historical
cost convention on an accrual basis and comply with the Accounting
Standards (AS) notified by the Companies (Accounting Standards)
Rules, 2006 except otherwise mentioned elsewhere in the financial
statements.
1.2. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities, if any) as at the
date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful
lives of assets etc. Management believes that the estimates used in the
preparation of financial statements are prudent and reasonable. Future
results may vary from these estimates.
1.3. Revenue Recognition
Sales of the Company comprise sale of BOPP tapes and ropes. Revenue is
recognized when the risks and rewards are substantially transferred to
the buyer. This usually occurs when the goods leave the premises of the
Company.
Interest income is recognized on accrual basis.
1.4. Expenses and incomes
Expenses and incomes are accounted for on accrual basis. Provisions are
made for all known liabilities.
1.5. Fixed Assets and Depreciation
Fixed assets acquired by the Company are reported at acquisition value
with deductions for accumulated depreciation.
The acquisition cost includes the purchase price, taxes (which are not
subsequently recoverable from the tax authorities), duties, freight and
incidental expenses related to the acquisition and installation of the
asset. Examples of incidental expenses are delivery and handling costs
and installation services.
Fixed assets are depreciated on Straight Line Method (SLM) at the
rates prescribed by Schedule XIV of the Companies Act, 1956.
Depreciation is charged on a pro - rata basis on additions made during
the year. Assets costing below Rs 5000 are expensed out in the year of
purchase.
1.6. Foreign exchange transactions
Transactions in foreign currency are booked at standard rates
determined periodically, which approximate the actual rates. Cash and
bank balances, receivables and liabilities (monetary items) in foreign
currencies as at the year end are revalued at year end rates and the
unrealized translation differences are included in the profit and loss
account.
Gain / loss arising out of fluctuations on realization / payment or
restatement, except those identifiable to acquisition of fixed assets
is charged / credited to the profit and loss account. Gain / loss on
account of exchange fluctuations identifiable to fixed assets acquired
are adjusted against the carrying value of the related fixed asset.
1.7. Inventory
Raw materials, consumable and packing materials, semi finished goods
and finished goods are valued at cost or net realizable value,
whichever is lower. Cost includes freight, taxes and duties (other
than those subsequently recoverable from the tax authorities) and all
other expenses incurred on bringing the inventory to its present
location and condition.
Inventory is valued on weighted average basis.
Cenvat credit for materials purchased for production is taken into
account at the time of purchases. Cenvat credit on purchases of capital
items wherever applicable is recognized when the asset is purchased.
The Cenvat credit so taken is utilized for the payment of excise duty
on goods manufactured. The unutilized Cenvat credit is carried forward
in the financial statements.
1.8. Segment reporting
The Company is primarily engaged in manufacture of Ropes and BOPP
tapes.
Although these two businesses represent separate business segments,
Accounting Standard 17 -"Segment Reporting" issued by the Institute of
Chartered Accountants of India is not applicable to the Company.
1.9 Taxes on income
Income tax is computed in accordance with Accounting Standard 22 -
Accounting for Taxes on Income (AS - 22), notified by the Companies
(Accounting Standards) Rules, 2006. Tax expenses are accounted in the
same period to which the revenue and expenses relate.
Deferred tax assets, other than unabsorbed depreciation or carried
forward losses, are recognized only if there is reasonable certainty
that they will be realized in the future and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
1.10 Secured Loans
Secured loan represents loans obtained for commercial purposes. These
loans are secured by mortgage of the Companys immovable property and
hypothecation of the movable properties, stocks, book debts and
personal guarantees of the directors.
Loan from Kotak Mahindra Prime Limited is secured against car.
1.11 Contingent liabilities
The following are the contingent liabilities outstanding as at the
balance sheet date. Letter of Credits outstanding aggregate to Rs
78.62 lakhs (Previous Year: Rs 1.96 Crores).
Income Tax demand for Rs. 5.64 lakhs has been raised by the Assessing
officer for the AY 1995 - 96. The Company has disputed the demand and
preferred an appeal before Income Tax (Tribunal) and final judgment is
awaited.
1.12 Unsecured loans
Under the packaging scheme of incentives of the Government of
Maharashtra, the Company is entitled to defer its liability for the
payment of sales tax upto a period of 10 years for its manufacturing
facility at Khopoli.
The amount is payable as per liability determined by the Sales Tax
authorities The Company has paid Rs 22.13 lakhs as sales tax liability
on this account during the year.
1.13 Since the Directors (including the Managing Director) are not
drawing any commission, computation of commission for the year ended 31
Mar.2010 as prescribed by sections 198, 309, 349 and 268 read with
schedule XIII of the Companies Act, 1956 is not applicable.
Notes:
1. Items of a similar nature may be disclosed in aggregate by type of
related party except when separate disclosure is necessary for an
understanding of the effects of related party transactions on the
financial statements of the reporting enterprise. Disclosure of details
of particular transactions with individual related parties would
frequently be too voluminous to be easily understood. Accordingly,
items of a similar nature may be disclosed in aggregate by type of
related party. However, this is not done in such a way as to obscure
the importance of significant transactions. Hence, purchases or sales
of goods are not aggregated with purchases or sales of fixed assets.
Nor a material related party transaction with an individual party is
clubbed in an aggregated disclosure.