Notes to the financial statements for the year ended 31st March, 2015 1. Corporate Information Enterprise International Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay & Kolkata Stock Exchanges in India. Enterprise International Limited is engaged in import of textile yarn and fabric and sale thereof in India. 2. Basis of Preparation of financial statements These financial statements . have been brpared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are brpared on accrual basis under the historical cost convention. The financial statements are brsented in Indian rupees rounded off to the nearest rupees. 3. Summary of significant accounting policies a. Use of Estimates The brparation of the financial statements in the conformitywith Indian GAAP requires judgments, estimates and assumptions, to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized. b. Tangible Fixed Assets Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates less accumulated debrciation and impairment loss, if any. The cost ofTangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use. Subsequent expenditures related to an item of Tangible Assets are added to its book value only .if they increase the future benefits from the existing assets beyond its brviously assessed standard of performance. c. Leases Operating Leases: Rentals are expensed on a straight line basis with reference to the lease terms and other considerations. d. Debrciation Debrciation on fixed assets is provided to the extent of debrciable amount on Straight Line Method. Debrciation is provided based on useful life of the assets as brscribed in Schedule 11 to the Companies Act, 2013. e. Impairment An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. f. Foreign Currency Transactions i. Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction or that approximates the actual rate at the date of the transaction. ii. Monetary items denominated in foreign currencies at the yearend are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rates on the date of the contract is recognized as exchange difference and the brmium paid on forward contracts is recognized overthe life of the contract. iii. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets. g. Investments Current investments are carried at lower of cost and quoted/fair value, computed categorywise. Non Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is otherthan temporary. h. Inventories Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including overheads incurred in bringing them to their respective brsent location and condition. i. Revenue Recognition Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods. Dividend income is recognized when the right to receive payment is established. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable. Rental income is recognized on a time proportion basis. j. Employee Benefits Short Term Employee Benefits The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. Post-Employment Benefits No post employment benefits are payable by the Company, k. Borrowing Costs Borrowing costs include exchange differences arisingfrom foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Aqualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred. I. Financial Derivatives and Commodity Heading Transactions In respect of derivative contracts, brmium paid, gain/losses on settlement and losses on restatement are recognized in the Profit and Loss Statement except in case where they relate to the acquisition or construction of Fixed Assets, in which case, they are adjusted to the. carrying cost of such assets. m. Taxation Tax expenses comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed debrciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date. n. Provisions, Contingent Liabilities and Contingent Assets Provision is recognized is the accounts when there is a brsent obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of out flow resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements. 4. In the opinion of the Board of Directors current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business. 5. Fixed Deposit with scheduled bank have been pledged to Bank against bank guarantee issued by the bank to the custom authorities 6. The company has examined carrying cost of its identified Cash Generating Units (CGU) by comparing brsent value of estimated future cash flows from such CGU in terms of Accounting Standard on Impairment of Assets according to which no provision for Impairment is required as assets of non of CGU are impaired during the financial year ended 31st March, 2015. 7. Contingent Liability in respect of Bank Guarantee given by a scheduled bank to custom authorities is Rs. 11,38,63,928/- (Previous Year Rs. 8,36,49,863) 8. Custom duty refundable amounting to Rs. 62,45,167/- (Previous Year Rs. NIL) has been shown under the head "Short Term Loans & Advances". The Custom Authorities have rejected the claim of Rs. 62,45,167/-(Previous Year Rs. NIL) against which an appeal has been filled by the Company. The balance amount of the claim is underconsideration of the appropriate authorities. 9. Operating Lease: Company as Lassor The company has leased out certain building on operating leases. The lease term is for 3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease agreements. The lease are cancelable. For K. M. TAPURIAH & CO. (Chartered Accountants) Enterprise International Limited Firm Registration No.: 314043E K. M. TAPURIAH (Partner) Membership No: 051509 for and on behalf of Board of Directors of Director: G.D.Sarda Director: Aditya Sarda C.F.O. :Anup Kumar Saha Place: Kolkata Dated :29th May, 2015 |