SIGNIFICANT ACCOUNTING POLICES A) SYSTEM OF ACCOUTING Financial statements are based on Historical cost in accordance with applicable accounting principles in India, mandatory accounting standards issued by ICAI and the relevant provisions of the companies act,1956.The company follows mercantile systems of accounting and recognized income and expenditure on accrual basis except those with significant uncertainties. B) FIXED ASSETS Fixed assets are stated at cost including freight, duties and other incidental expenses relating to cost of acquisition. Capital work in progress includes expenses for project appraisal fee and salary paid for project. The same will be capitalized to respective fixed assets on commissioning of plant C) DEbrCIATION Debrciation on all assets has been provided on straight line basis method in the manner and at the rates specified as per the companies Act, 2013. D) REVENUE /EXPENSES RECOGINITION The revenues have been accounted for on Accrual basis and expenses related to the year have been accounted for on accrual basis E) T AXATION The provisions of Tax has been created keeping view the provisions of section 115JB of income Tax Act 1961. F) CONTINGENT LIABILITIES Liabilities may arise if any, on account of pending litigations matters as stated by the management and reported as above. G) PENDING LITIGATION: a) PENDING LITIGATION MATTERS CASES FILED BY THE COMPANY • M/S Vatsa Finance Ltd. and others on account of restraining them from disassociating as LEAD MANAGER to the public issue of the company and for damages for contempt of court. And SEBI for withdrawing the Acknowledgement card No.3042 dated 08.04.1994 for the public issue of the company. • Suit No.4488/1996 for recovery of Rs.4.00 lakh from M/s Mahalaxmi Dyes & Chemical, Mumbai. • Criminal Complaint no 217 of 2002 filed by the company before chief judicial Magistrate 1st Class at Distt. Courts Chandigarh against Indian Overseas Bank, officials u/s 409 of IPC for not releasing the deposit of the company. • Civil suit No 472 of 2003 filed against Indian Overseas Bank & others in the Distt Court Chandigarh. Suit for declaration of the effect that Public Issue of Indian Overseas Bank being opened w.e.f 06.09.2003 is illegal being issued in violation of provisions of Companies Act as well as concealment of facts . The suit was dismissed, and appeal filed by company is pending with the court. • Suit No.3584 of 1994 filed by the company against Vatsa Finance Ltd for recovery of damages in High Court, Bombay. • Suit No.1319 of 1995 filed by the company against Punjab & Sind Bank for recovery of Rs.5.00 Crore pending before High Court, Bombay. • Suit filed against Punjab & Sind Bank for recovery of Rs.75,000/- paid on account of Appraisal Fee. b) CASES FILED AGAINST THE COMPNAY • Punjab Agro Industries Corporation has filed a suit for alterations in the Articles of Association of the company and restricting the company to hold the EGM on 29th December, 1995 in view of the financial collaboration agreement executed with them by OASIL. • RSA 833/2003 field by PAIC against company for permanent injunction restraining the company form holding or modified the Articles of Association of the company and further restrain the company holding Extraordinary Annual General Meeting held on 29.12.1995. • M/s. Mauve & Crimision Advertising Pvt Ltd., New Delhi has filed a case for passing a decree of permanent injunction thereby restraining Omega Ag-Seeds (Punjab) Limited and Omega Agro Limited from taking forcible and illegal possession of flat at 7/18,Kalkaji Extension ,New Delhi against recovery of Rs 11.82 lacs from the Company. • Civil suit No. 81 of 2000 in Distt. Court Chandigarh filed by Mr. Teja Singh against the Company for recovery of Rs 4.43 lacs in consideration of seeds supplied by him to the company .Decree was passed against the company and an appeal filed by the company and the said appeal also was dismissed . Company is in the process to file appeal before Punjab and Haryana court at Chandigarh. • Civil suit no 97 of year 2000 in the Distt. Court Chandigarh filed by Mr.Teja Singh against the company for recovery of Rs 2.07 lacs in consideration of seeds supplied by him to the company. Decree passed,appeal filed by the company is dismissed . Company is in the process of filing appeal before Punjab and Haryana court at Chandigarh. • Civil suit of year 2000 in the Distt. Court Chandigarh filed by Mr. Gurinder Singh against the company for recovery of Rs 4.43 lacs in consideration of seeds supplied by him to the company. Decree passed, appeal filed by the company is dismissed. Company is in process to file appeal before Punjab and Haryana court at Chandigarh. • Civil suit no 82 of year 2000 in the Distt. Court Chandigarh filed by Mr. Ravinder Singh against the company for recovery of Rs 50,901.63/- in consideration of seeds supplied by him to the company and rejoinders arising out of aforesaid Litigation. Decree passed, appeal filed by the company is dismissed. Company is in process of file appeal before Punjab and Haryana court at Chandigarh. • 64/2010 is pending in 47th Court, Killa Court, CST and filed by SEBI for Public Issue of 1994. • The property of associate company of Omega Ag. Seeds (Punjab) Ltd. was trespassed by M/S Mauve & Crimision Advertising Pvt. Ltd. in the year 1995 after the Public issue and in 1996, the Tishazari Court, Delhi dismissed the case filed by M/S. Mauve & Crimision Advertising Pvt. Ltd. The said company appeal against the said order in High Court, Delhi. The Court ordered the occupant, Rakesh Singh to deposit Rs.25,000/- per month as mesne profit from 23.01.2003 till further order. In return, he has deposited Rs.5,87,500/- in the High Court, Delhi in compliance with directions of court. H) LICENSED/INSTALLED CAPACITY The Company has carried out only trading activity and has not commenced any farming/grading activities hence the license, installed capacity are not applicable. I) STOCK RECEIPT/ TURNOVER The company has dealt with items of stock of goods by the way of trading during the year. J) MANAGERIAL REMUNERATION & FEE ( IF ANY) The directors have not claimed any remuneration from the company. K) RELATED PARYT DISCOLSERS (AS-18) The related party Disclosures as required as per Accounting Standard (AS-18) on Related party Disclosures Issued by Institute of Chartered Accountants of India are as below:- A. PARTY RELATION Omega Ag-Seeds (India) Limited Promoter Company Punjab Agro Ind. Corporation (PAIC) Promoter Company B. Key Managerial Personnel L) Expenses /Revenue in Foreign currency - NIL M) Balance of Sundry Debtors, Sundry Creditors and growers and loans & Advances are subject to confirmation. N) The company has calculated Deferred Tax liability as at 31.03.2015 in accordance with the Accounting Standards (AS-22) issued by The Institute of Chartered Accountants of India. O) In the opinion of the management the value realization of current assets and loans & Advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet. P) In accordance with the Accounting Standard (AS-22) issued by Institute of Chartered Accountants of India, the company has Deferred Tax liability as at 31.03.2015 with regard to timing difference of debrciation of brvious years and current year. Q) Figures for the brvious year have been regrouped or rearranged wherever necessary. R) Paise have been rounded to nearest rupee. As per our separate report of even date For Mudili Vijaya Krishna On Behalf of the Board Chartered Accountants For Omega Ag Seeds Punjab Limited Firm Reg No.: 011211S (Mudili Vijaya Krishna) NV Raghunadh NVR Mohan Rao Partner Managing Director Director M.No: 211105 HYDERABAD (Camp) Date: 29th May, 2014 |