Mar 31, 2015
1.1 Basis of preparation of Financial Statements:
These financial statements have been prepared in accordance with the
Generally Accepted Accountings Principles in India ("Indian GAAP") to
comply with the Accountings Standards specified under Section 133 of
the Companies Act, 2013, read with Rule 7 of the Companies (Accounts)
Rules, 2014 and the relevant provisions of the Companies Act, 2013,
financial statements have been prepared under the historical cost
convention on accrual basis, except for certain financial instruments
which are measured at fair value.
1.2 Use of Estimates:
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Examples of
such estimates include provisions for doubtful receivables, employee
benefts, provision for income taxes, the useful lives of depreciable
fixed assets and provision for impairment. Future results could differ
due to changes in these estimates and the difference between the actual
result and the estimates are recognized in the period in which the
results are known/ materialize.
1.3 Fixed Asset, Depreciation and Amortsaton
a) Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation/
amortsaton. For this purpose cost comprises of cost of acquisition and
all costs directly attributable to bringing the asset to the present
condition for its intended use.
1.4 INVESTIMENTS:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments'. All other
investments are classified as long term investments'. Long term
investments are carried at cost. Provision for diminuton in value of
long term investiment is made only if such a decline is other than
temporary.
1.5 FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currency are recorded at the rates of exchange
prevailing on the date of transactions. Exchange differences are
recorded when the amount actually received on sales or actually paid
when expenditure is incurred, is converted to Indian Rupees. The
exchange differences arising on other foreign currency transactions are
recognized as income or expense in the year in which they realize.
1.6 PROVISION AND CONTINGENT LIABILITIES:
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outlaw of
resources and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to present value and are
determined based on best estimate required to settle the obligation at
the Balance Sheet date. A disclosure for a contingent liability is made
when there is a possible obligation or a present obligation that may,
but probably will not, require an outlaw of resources. Where there is
possible obligation or a present obligation that the likelihood of
outlaw of resources is remote, no provision or disclosure is made.
1.7 GOVERNMENT GRANTS/ SUBSIDY:
Grants/Subsidy related to revenue is credited to Statement of Proft &
Loss on accrual basis.
1.8 REVENUE RECOGNITION:
Sales and Other Income -
The Company recognizes the sale of goods when the significant risks and
rewards of ownership are transferred to the buyer, which is usually
when the goods are dispatched to the customers.
Interest Income and other items are accounted on Accrual Basis.
1.9 INVENTORIES
Finished goods stock is valued at lower of cost or net realizable value
and stock of raw material is valued at cost.
1.10 TAXES ON INCOME
Tax expense comprises of Current Income Tax and Deferred Tax. Deferred
income taxes are recognized for future tax consequences attributable to
taming differences between the financial statement determination of
income and their recognition for tax purposes. The effect of deferred
tax assets and liabilities of a change in tax rates is recognized in
income using the tax rates and tax laws that have enacted or
substantively enacted by the Balance Sheet date. Deferred tax assets
are recognized and carried forward only to the extent that there is
reasonable certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
Mar 31, 2014
1.1 ACCOUNTING CONVENTIONS:
The financial statements of the Company are prepared under the
historical cost convention on accrual basis of accounting except the
provision of interest on deposit as referred to note no 3.4 and in
accordance with the mandatory accounting standards issued by the
Institute of Chartered Accountant of India and referred to in Section
211 (3C) of the Companies Act, 1956 (which continues to be applicable
in respect of Section 133 of the Companies Act, 2013 in terms of the
General Circular 15/2013 dt.13.09.2013 of the Ministry of Corporate
Affairs), and generally accepted accounting principles in India. The
accounting policies not referred to otherwise have been consistently
applied by the Company during the year.
1.2 FIXED ASSETS:
Fixed Assets are stated at cost of acquisition/construction less
accumulated depreciation. For this purpose cost comprises of cost of
acquisition and all costs directly attributable to bringing the asset
to present condition for its intended use.
1.3 DEPRECIATION:
Depreciation is provided during the year under Straight Line method at
the rates prescribed under Section 205(2)(b), Schedule XIV of the
Companies Act, 1956.
Depreciation on Assets added/disposed off during the year has been
provided on pro-rata basis with reference to the date of
addition/disposal. Individual low cost assets (acquired for less than
Rs.5,000/-) are entirely depreciated in the year of acquisition. The
Company is into Seasonal business and hence depreciation is calculated
on number of days on which the factory or concern actually worked
during the period or 180 days, whichever is greater.
1.4 INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Long term
investments are carried at cost. Provision for diminution in value of
long term investment is made only if such a decline is other than
temporary.
1.5 FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currency are recorded at the rates of exchange
prevailing on the date of transactions. Exchange differences are
recorded when the amount actually received on sales or actually paid
when expenditure is incurred, is converted to Indian Rupees. The
exchange differences arising on other foreign currency transactions are
recognized as income or expense in the year in which they realize.
1.6 PROVISION AND CONTINGENT LIABILITIES:
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to present value and are
determined based on best estimate required to settle the obligation at
the Balance Sheet date. A disclosure for a contingent liability is made
when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is
possible obligation or a present obligation that the likelihood of
outflow of resources is remote, no provision or disclosure is made.
1.7 GOVERNMENT GRANTS/ SUBSIDY:
Grants/Subsidy related to revenue is credited to Statement of Profit &
Loss on accrual basis.
1.8 REVENUE RECOGNITION:
Sales and Other Income -
The Company recognizes the sale of goods when the significant risks and
rewards of ownership are transferred to the buyer, which is usually
when the goods are dispatched to the customers. Interest Income and
other items are accounted on Accrual Basis.
1.9 INVENTORIES
Finished goods stock is valued at lower of cost or net realizable value
and stock of raw material is valued at cost.
1.10 TAXES ON INCOME
Tax expense comprises of Current Income Tax and Deferred Tax. Deferred
income taxes are recognized for future tax consequences attributable to
timing differences between the financial statement determination of
income and their recognition for tax purposes. The effect of deferred
tax assets and liabilities of a change in tax rates is recognized in
income using the tax rates and tax laws that have enacted or
substantively enacted by the Balance Sheet date. Deferred tax assets
are recognized and carried forward only to the extent that there is
reasonable certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
1.11 MISCELLANEOUS EXPENDITURE
Preliminary Expenses is carried over and will be written off over a
period of 10 years from the year of commencement of activity.
a - Rights, preferences and restrictions attaching to each class of
shares
1 - The Company has only one class of equity shareholders. Each holder
of equity shares is entitled to one vote per share.
2 - In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the 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.
c - Monies received against Share Warrants:
The Board of Directors of the Company at their meeting held on 6th
November, 2012 and as approved at its Postal Ballot Meeting held on
10th December, 2012 have resolved to create, offer, issue and allot up
to 40,56,000/- warrants, convertible into 40,56,000/- Equity Shares of
''10/- each on a preferential allotment basis, pursuant to Section
81(1A) of the Companies Act, 1956, at a conversion price of ''36/- per
Equity Share of the Company, arrived at in accordance with the SEBI
Guidelines in this regard and subsequently 39,01,000/- warrants were
allotted at ''9/- paid up per warrant on 3rd January, 2013.
a - security for Long lerm - secured Loans
(i) Term Loan from Banks are secured by 1st charge byway of Equitable
Mortgage of land & building/fixed assets and 1st charge by way of
hypothecation of all movable assets (except vehicles) of the Company,
pledge of fixed deposits with Banks and further secured by 2nd charge
on current assets, stock, WIP, book debts of the Company and by
personal guarantee of a Director.
(ii) Vehicle Loans from Banks are secured against the specific vehicle
financed by respective banks.
c - During the year Bankers of the Company has assigned the total debts
due by Company to Banks pursuant to the various financial facilities
granted by Bankers i.e. Term Loan and Working Capital Loan from time to
time alongwith underlying financial documents together with Bank''s
rights, benefits and obligations thereunder to an Asset Reconstruction
Company, whereby the debts due to Banks will now become payable to the
Asset Reconstruction Company. Further, various discussions and meetings
are undergoing between Company and Asset Reconstruction Company on the
proposal for restructuring of financial assistance availed by the
Company and Company has considered the effects of various proposals as
discussed in meetings in its financial statement for the year ended
31st March, 2014.
a - Security for Short Term Borrowings - Secured Loans
Working Capital loans from Banks are secured by 1st charge byway of
hypothecation of current assets, stock, WIP, book debts of the Company
and 2nd charge on fixed assets and movable assets of the Company, and
by personal guarantee of a Director.
Mar 31, 2013
1.1 ACCOUNTING CONVENTIONS:
The financial statements of the company are prepared under the
historical cost convention on accrual basis of accounting, and in
accordance with the mandatory accounting standards issued by the
Institute of Chartered Accountant of India and referred to in Section
211 (3C) of the Companies Act, 1956, and generally accepted accounting
principles in India. The accounting policies not referred to otherwise
have been consistently applied by the Company during the year.
1.2 FIXED ASSETS:
Fixed Assets are stated at cost of acquisition/construction less
accumulated depreciation. For this purpose cost comprises of cost of
acquisition and all costs directly attributable to bringing the asset
to present condition for its intended use.
1.3 DEPRECIATION:
Depreciation is provided during the year under Straight Line method at
the rates prescribed under section 205 (2) (b), Schedule XIV of the
Companies Act, 1956.
Depreciation on Assets added / disposed off during the year has been
provided on pro-rata basis with reference to the date of addition /
disposal. Individual low cost assets (acquired for less than Rs. 5,000/-)
are entirely depreciated in the year of acquisition. The Company is
into Seasonal business and hence depreciation is calculated on number
of days on which the factory or concern actually worked during the
period or 180 days, whichever is greater.
1.4 BORROWING COSTS:
Borrowing Costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as the cost of the
respective assets. All other borrowing costs are charged to revenue.
1.5 INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Long term
investments are carried at cost. No provision for diminution in value
of long term investment is made.
1.6 FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currency are recorded at the rates of exchange
prevailing on the date of transactions. Exchange differences are
recorded when the amount actually received on sales or actually paid
when expenditure is incurred, is converted to Indian Rupees. The
exchange differences arising on other foreign currency transactions are
recognized as income or expense in the year in which they realize.
1.7 PROVISION AND CONTINGENT LIABILITIES:
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to present value and are
determined based on best estimate required to settle the obligation at
the Balance Sheet date. A disclosure for a contingent liability is made
when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is
possible obligation or a present obligation that the likelihood of
outflow of resources is remote, no provision or disclosure is made.
1.8 GOVERNMENT GRANTS/ SUBSIDY:
Grants/Subsidy related to revenue is credited to Statement of Profit &
Loss on accrual basis.
1.9 REVENUE RECOGNITION: Sales and Other Income -
The company recognizes the sale of goods when the significant risks and
rewards of ownership are transferred to the buyer, which is usually
when the goods are dispatched to the customers.
Interest Income and other items are accounted on Accrual Basis.
1.10 INVENTORIES :
Finished goods stock is valued at lower of cost or net realizable value
and stock of raw material is valued at cost.
1.11 TAXES ON INCOME :
Tax expense comprises of Current Income Tax and Deferred Tax. Deferred
income taxes are recognized for future tax consequences attributable to
timing differences between the financial statement determination of
income and their recognition for tax purposes. The effect of deferred
tax assets and liabilities of a change in tax rates is recognized in
income using the tax rates and tax laws that have enacted or
substantively enacted by the Balance Sheet date. Deferred tax assets
are recognized and carried forward only to the extent that there is
reasonable certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
1.12 MISCELLANEOUS EXPENDITURE :
Preliminary Expenses is carried over and will be written off over a
period of 10 years from the year of commencement of activity.
1.13 REVENUE RECOGNITION: Sales and Other Income -
The company recognizes the sale of goods when the significant risks and
rewards of ownership are transferred to the buyer, which is usually
when the goods are dispatched to the customers.
Interest Income and other items are accounted on Accrual Basis.
1.14 INVENTORIES
Finished goods stock is valued at lower of cost or net realizable value
and stock of raw material is valued at cost.
1.15 TAXES ON INCOME
Tax expense comprises of Current Income Tax and Deferred Tax. Deferred
income taxes are recognized for future tax consequences attributable to
timing differences between the financial statement determination of
income and their recognition for tax purposes. The effect of deferred
tax assets and liabilities of a change in tax rates is recognized in
income using the tax rates and tax laws that have enacted or
substantively enacted by the Balance Sheet date. Deferred tax assets
are recognized and carried forward only to the extent that there is
reasonable certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
1.16 MISCELLANEOUS EXPENDITURE
Preliminary Expenses is carried over and will be written off over a
period of 10 years from the year of commencement of activity.
Mar 31, 2010
ACCOUNTING CONVENTIONS
The financial statements of the company are prepared under the
historical cost convention on accrual basis of accounting, and in
accordance with the mandatory accounting standards issued by the
Institute of Chartered Accountant of India and referred to in Section
211 (3C) of the Companies Act, 1956, and generally accepted accounting
principles in India. The accounting policies not referred to otherwise
have been consistently applied by the Company during the year.
FIXED ASSETS
Fixed Assets are stated at cost of acquisition/construction less
accumulated depreciation. For this purpose cost comprises of cost of
acquisition and all costs directly attributable to bringing the asset
to present condition for its intended use. Since the commercial
production has not commenced, all the expenses incurred during
construction period are carried forward till capitalization and is
shown under the head Fixed Assets (Pending Allocation).
DEPRECIATION
Depreciation is provided during the year under Straight Line method at
the rates prescribed under section 205 (2) (b), Schedule XIV of the
Companies Act, 1956.
Depreciation on Assets added / disposed off during the year has been
provided on prorata basis with reference to the month of addition /
disposal .Individual low cost assets (acquired for less than Rs.5,000/
-) are entirely depreciated in the year of acquisition.
INVESTMENTS
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments .Long term
investments are carried at cost .No provision for diminution in value
of long term investment is made.
FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rates of exchange
prevailing on the date of transactions. Exchange differences are
recorded when the amount actually received on sales or actually paid
when expenditure is incurred, is converted to Indian Rupees. The
exchange differences arising on other foreign currency transactions are
recognized as income or expense in the year in which they realize.
PROVISION AND CONTINGENT LIABILITIES
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to present value and are
determined based on best estimate required to settle the obligation at
the Balance Sheet date. A disclosure for a contingent liability is made
when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is
possible obligation or a present obligation that the likelihood of
outflow of resources is remote, no provision or disclosure is made.
GOVERNMENT GRANTS/ SUBSIDY
Grants/Subsidy related to revenue is credited to Profit & Loss Account
on receipt basis.
REVENUE RECOGNITION
Domestic Sales and Other Income.
The company recognizes the sale of goods when the significant risks and
rewards of ownership are transferred to the buyer, which is usually
when the goods are dispatched to the customers.
Interest Income and other items are accounted on Accrual Basis.
INVENTORIES
Inventories are valued at lower of cost or market value.
TAXES ON INCOME
Tax expense comprises of Current Income Tax, Deferred Tax and Fringe
Benefit Tax. Fringe Benefit Tax is measured at the amount expected to
be paid to the tax authorities in accordance with Indian Income Tax
Act. Deferred income taxes are recognized for future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes. The
effect of deferred tax assets and liabilities of a change in tax rates
is recognized in income using the tax rates and tax laws that have
enacted or substantively enacted by the Balance Sheet date. Deferred
tax assets are recognized and carried forward only to the extent that
there is reasonable certainty supported by convincing evidence that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
MISCELLANEOUS EXPENDITURE
Preliminary Expenses is carried over and will be written off over a
period of 10 years from the year of commencement of activity.