Mar 31, 2015
A. Basis of Accounting:
The financial statements have been prepared under the historical cost
convention, on accrual basis, in accordance with the generaly accepted
accounting principles ( GAAP ) in India and applicable Accounting
Standards referred to under section 133 of the companies act 2013 read
with rule 7 of the companies ( Accounts ) rules 2014.
B. Fixed Assets:
Fixed assets are stated at cost of acquisition less accumulated
depreciation.
C. Depreciation / Amortisation
Depreciation on tangible fixed assets is provided for on the basis of
straight line method (Except on plant & machinery at written down value
method )as per the useful life specified in Schedule- II of the
Companies Act, 2013 on pro rata basis.
D. Inventories:
Raw Materials, Finished goods, Semi finished goods, scraps and stores &
spares and trading goods are stated at lower of cost and net realisable
value. The cost of inventories is computed on FIFO basis.Cost includes
vat.
E. Investments :
Investments are stated at cost. Provision for diminution in the value
of long term investments is made, only if, such a decline is other than
temporary in nature, in the opinion of the management.
F. Retirement Benefits:
(1) Contribution to provident fund and provision for leave encashment
is charged to profit & loss Account.
(2) Provision for gratuity liability is made based on actuarial
valuation as at the Balance Sheet date and is charged to profit & loss
account.
(3) All other short term benefits for employees are recognized as an
expense at the undiscounted amount in the Statement of profit & loss of
the year in which the related service is rendered.
G. Preliminary Expenses:
Preliminary expenses incurred are charged to revenue.
H. Foreign Currency Transactions :
Transaction denominated in Foreign Currency are recorded at the
exchange rate prevailing on the date of transaction. In respect of
transaction covered by forward exchange contracts, the difference
between the forward rate and the exchange rate at the date of the
transaction is recognized as income or expenses over the life of the
contract. Any income or expense on account of exchange rate difference
either on settlement or on translation is recognized in Statement of
Profit & Loss. Assets & Liabilities remaining unsettled at the end of
the year, other than covered by forward exchange contracts are
translated at exchange rate prevailing at the end of the year and the
difference is adjusted in Statement of Profit & Loss.
I. Borrowing Cost :
Fixed asset which necessarily takes substantial period of time to get
ready for its intended use is qualifying asset, Borrowing costs that
are attributable to the acquisition or construction of such qualifying
assets are capitalized as part of the cost of such assets. All other
borrowing costs are recognized as expense in the period in which they
are incurred.
J. Taxes on Income:
a) Tax on income for the current period is determined on the basis of
estimated taxable income computed in accordance with the provisions of
the Income Tax Act,1961.
b) Deferred tax is recognized on timing difference between the
accounting income and the estimated taxable income for the period and
quantified using the tax rates and laws enacted or substantively
enacted as on the balance sheet date.
c) Deferred tax assets are recognized for timing differences of items
other then unabsorbed depreciation and carry forward losses only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which deferred tax asset can
be realized. But, if there are unabsorbed depreciation and carry
forward of losses, deferred tax assets are recognized only if there is
virtual certainty that sufficient future taxable income will be
available to realize deferred tax assets.
K. Impairment of Assets :
The carrying amount of assets is reviewed at each balance sheet date to
determine whether there is any indication of impairment of assets. If
any indication exists, the recoverable amount of such assets is
estimated. An impairment loss is recognized whenever the carrying
amount of an assets or its cash generating unit exceeds its recoverable
amount.
L. Use of Estimates :
The presentation of financial statements requires certain estimates and
assumptions. These estimates and assumptions affect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between the actual result and estimates are
recognized in the period in which the results are known / materialized.
M. Provisions, Contingent Liabilities and Contingent Assets
Provision involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and that probability requires an outflow of resources.
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 a possible
obligation or a present in respect of which the likelihood of outflow
of resources is remote, no disclosure is made.
N. Accounting policies not specifically referred to are consistent
with generally accepted accounting practices.
Mar 31, 2014
A. Basis of Accounting:
The financial statements have been prepared under the historical cost
convention, on accrual basis, in accordacne with the generally accepted
accounting principles (GAAP) in India and applicable Accounting
Standards as notified under section 211 (3C) of the Companies Act, 1956
(which continue to be applicable in respect of Section 133 of the
Companies Act 2013 in terms of general circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs.
B. Fixed Assets:
Fixed assets are stated at cost of acquisition less accumulated
depreciation.
C. Depreciation:
Depreciation on fixed assets is provided on the basis of straight line
method (except on plant & machineries at written down value method) at
the rates prescribed in Schedule -XIV of the Companies Act,1956 as
applicable on prorata basis except that considering the useful life
based on technical evaluation by the management, higher rate of 15% is
provided then the prescribed rate of @9.50% on all vehicles.
D. Inventories:
Raw Materials, Finished goods, Semi finished goods, scraps and stores &
spares are stated at lower of cost and net realisable value. The cost
of inventories is computed on FIFO basis.Cost includes vat.
E. Investments :
Investments are stated at cost. Provision for diminution in the value
of long term investments is made, only if, such a decline is other than
temporary in nature, in the opinion of the management.
F. Retirement Benefits:
1) Contribution to provident fund and provision for leave encashment is
charged to profit & loss Account.
2) Provision for gratuity liabilty is made based on actuarial valuation
as at the Balance Sheet date and is charged to profit & loss account.
3) All other short term benefits for employees are recognised as an
expense at the undiscounted amount in the Statement of profit & loss of
the year in which the related service is rendered.
G. Preliminary Expenses:
Preliminary expenses incurred are charged to revenue.
H. Foreign Currency Transactions :
Transaction denominated inf Foreign Currency are recorded at the
exchange rate previling on the date of transaction. In respect of
transaction covered by forward exchange contracts, the difference
between the forward rate and the exchange rate at the date of the
transaction is recognized as income or expenses over the life of the
contract. Any income or expense on account of exchange rate difference
either on settlement or on translation is recognized in Statement of
Profit & Loss. Assets & Liabilities remaining unsettled at the end of
the year, other than covered by forward exchange contracts are
translated at exchange rate prevailing at the end of the year and the
difference is adjusted in Statement of Profit & Loss.
I. Borrowing Cost :
Fixed asset which necessarily takes substantial period of time to get
ready for its intended use is qualifying asset, Borrowing costs that
are attributable to the acquisition or construction of such qualifying
assets are capitalised as part of the cost of such assets. All other
borrowing costs are recognized as expense in the period in which they
are incurred.
J. Taxes on Income:
a) Tax on income for the current period is determined on the basis of
estimated taxable income computed in accordance with the provisions of
the Income Tax Act,1961.
b) Deferred tax is recognized on timing difference between the
accounting inome and the estimated taxable income for the period and
quantified using the tax rates and laws enacted or substantively
enacted as on the balance sheet date.
c) Deferred tax assets are recognized for timing differences of items
other then unabsorbed depriciation and carry forward losses only to the
extent that there is reasonable certainity that sufficient future
taxable income will be available against which deffered tax asset can
be realized. But, if there are unabsorbed depriciation and carry
forward of losses, deffered tax assets are recognized only if there is
vitual certainity that sufficient future taxable income will be
available to realize deffered tax assets.
K. Impairment of Assets :
The carrying amount of assets is reviewed at each balance sheet date to
determine whether there is any indication of impairment of assets.If
any indication exists, the recoverable amount of such assets is
estimated. An impairment loss is recognized whenever the carrying
amount of an assets or its cash generating unit exceeds its recoverable
amount.
L. Use of Estimates :
The presentation of financial statements requires certain estimates and
assumptions.These estimates and assumptions affect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period.Differences between the actual result and estimates are
recognized in the period in which the results are known / materialized.
M. Provisions, Contingent Liabilities and Contingent Assets
Provision involving substrantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and that probability requires an outflow of resources.
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 a possible
obligation or a present in respect of which the likelihood of outflow
of resources is remote, no disclosure is made.
N. Accounting policies not specifically referred to are consistent with
generally accepted accounting practices.
1.3 Terms/Rights attached to Shares :
Each holder of Equity Shares of face value of Rs.10 each is entitled to
one vote per share. The dividend is declared and paid on being
proposed by the Board of Directors after the approval of the
Shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company the holders of equity shares
will be entitled to remaining assets of the company after payment or
distribution of all liabilities. The distri- bution to equity share
holders will be in propotion to the number of Equity Shares held by the
Shareholders.
Loan from Directors in note 3B(i) repayable after 31-03-2015 bearing
inerest @ 12% p.a Loan from share holders and others in note 3B(ii)
repayable after 31-03-2015 bearing inerest @ 12% p.a
Loan from Bodies Corporate in note 3B(iii) repayable after 31-03-2015
bearing inerest @ 12% p.a Loan from Others in note 3B(iv) repayable
after 31-03-2015 bearing no inerest
10.a Investment in Mangalam Steel & Alloys Ltd (MSAL), incorporated in
Vietnam for manufacturing of Stainless Steel products in which company
has 40% stake. During the year the MSAL is not an asso- ciate under
accounting standard 18-"Related party disclosers" as there is no
participation in the financial and / or operating policy decisions of
MSAL. Due to loses, mismanagement by working director (General
Director) at Vietnam and disputes & deadlock in Management, the plant
is closed during financial year 2011-2012 and the creditors of MSAL
have filed petition to Commence bank- ruptcy proceedings at Vietnam
with Vietnamese authorities in 2012-2013 After considering the overall
appreciation in market value of Fixed assets, company has provided
further Rs.18,50,974/- for diminution in value of such investment during
the year.
11a Advance to others include given to All Kerala Social Welfare
Society of Rs.95 lacs for purchase of Scrap, a raw-material for our
manufacturing activity in F.Y.2010 2011, But the raw material was not
supplied, and the agreement for sale was cancelled by the party and
against which the said party issued a cheque of Rs. 110 lacs (including
interest which is not accounted as income), but the cheque bounced.
Company filled criminal case u/s 138 of Negotiable Instrument Act, in
court at Ahmedabad in financial year 2011-2012 and the party gave
undertaking to the Honorable Court to pay or settle it. Presently the
party having not fulfilled his commitment, Honourable Court has issued
arrest warrant against Mr. Ibrahim Kutty of All Kerala Welfare Soceity.
Accordingly company expect to realize the whole amount at the earliest
however the same is considered as long term.
23b Share of profit exculding interest from partnership firm for the
current year named CHANDANPANI ENTERPRISE shall be accounted for on the
finality of the accounts of the partnership firm for the year ended
31/03/2014
Profit from partnership firm of Rs. 1,81,315 /- (previous year loss
Rs.4,96,632/-) from the said firm in Note-19 pertains to year ended
31-03-2013, Interest for the current year 31-03-2014Rs.9,62,448 /- (
Prior Year 31-03-13 Rs.9,46,957 ) is part of interest income in Note-19
to these finanicial statment.