Notes 1 Corporate information The Company is into the activity of manufacturing of Sugar Candies. The principal place of business is situated at 133, TSIIC Industrial Estate, Medchal, RR Dist, Telangana - 501 401. SIGNIFICANT ACCOUNTING POLICES: I BASIS OF brPARATION OF FINANCIAL STATEMENTS: The financial statements of the Company have been brpared in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year. II Use of estimates The brparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize. III Inventories The basis for valuation of inventories is as under: 1. Raw Materials & Packing Materials Cost or realizable value whichever is lower. Cost is computed on the basis of weighted average method including fright and related expenses reduced by CENVAT benefits. 2. Work –in-Progress At cost or net realizable value, whichever is lower(Cost includes materials and related overheads). 3. Finished Goods At Cost or net realizable value, whichever is lower. 4. Stores, spare & consumables Cost or realizable value whichever is lower. Cost is ascertained on weighted average basis. IV Cash and cash equivalents Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. V Debrciation and amortization Debrciation has been provided on the straight-line method as per the life period brscribed in Part “C” of Schedule II of The Companies Act 2013 VI Revenue recognition Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax. VII Other income Interest income is accounted on accrual basis. Dividend income, if any is accounted for when the right to receive it is established. VIII Tangible fixed assets Fixed assets are carried at cost less accumulated debrciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of debrciable fixed assets are adjusted to the cost of the respective assets and debrciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and debrciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its brviously assessed standard of performance. IX Government grants, subsidies and export incentives Subsidy received is credited to reserves and surplus. X Employee benefits Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits. Defined contribution plans The Company’s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made. Defined benefit plans For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the cost of providing benefits is determined in accordance with the rules of the Company and are provided for based on the assumptions that such benefits are payable to employees at the end of the accounting year. NOTES ON ACCOUNTS 1. Contingent liabilities not provided for in respect of: a. The company is in receipt of assessment order of Sales Tax for the years 05-06 & 06-07 by not considering the Input tax on the materials which were used in the Job works, against the said assessment order, the company has brferred for appeal before the Deputy Commissioner of Sales Tax, Hyderabad. The Company is expecting a favorable result from the appellate authority. 2. Secured Loans: a. Term Loan taken from The Cosmos Co-Op Bank Ltd has been secured by way of charge on Industrial Land & Factory building of the company as collateral security. b. Vehicle loans under hire purchase schemes are secured by hypothecation of vehicles owned by the company. 3. The sundry debtors, current assets, loans and advances have a value on realization, in the ordinary course of business, at least equal to the amount at which they are stated by the company. 4. The company has corresponded with old debtors and creditors and the dues which were neither recoverable nor payable have been written off during the year. Still there are some parties from which the company is yet to receive confirmations in respect of balances outstanding in sundry debtors and creditors. 5. As per the information available with the company, it appears that no dues outstanding for more than 30 days in excess of Rs.1,00,000/- as on 31st March 2015 in respect of Small Scale Industrial Undertakings. It is reported that there are no specific claims on the company from the small scale industrial supplier under the “Interest on Delayed Payments to small Scale and Ancillary Industrial Undertaking Act, 1993” during the said year. 7. Director’s Remuneration: 8. There are no debts outstanding as on 31st March 2015 from Directors or other officers of the company other than imbrst cash in order to meet running expenses. 9. Segment Reporting: The company’s business consists of one primary reportable business segment of manufacturing and sale of sugar boiled candies and toffees with manufacturing facility at single place and consists of major revenue on account of Processing charges, no separate disclosures pertaining to attributable revenues, profits, assets, liabilities and capital employed are given as required under Accounting Standard – 17. 10. Deferred Tax Liability: Deferred tax liability as on 01.04.2015 due to timing differences between financial statements and taxation statements based on the return of income filed by the company as per applicable rate of taxation, estimated has been shown under Deferred Tax Liability in Balance Sheet as per the procedure brscribed in the Accounting Standard – 22. The movement of Provision of Deferred Tax for the year ended 31-03-2015 is as given below: 11. Earnings per Share (EPS) The earnings considered in ascertaining the company’s Earnings per share comprise of net profit after tax. The number of shares used in computing Basic earnings per share is the weighted average number of shares outstanding during the year. The numerators and denominators used to calculate earnings per share. 12. Taxes on income The company made necessary provision for income tax as per the provisions of income tax act, 1961. 15. Previous year’s figures have been re grouped / and or re-arranged wherever necessary to confirm with the current year classification. 16. Provision for accruing liability for Super Annuation / Retirement benefits have been made in the basis of the liability as actually determined as at the year end. 17. Debrciation has been provided on the straight-line method as per the rates brscribed in Part “C” of Schedule II of The Companies Act 2013. 18. There were no employees drawing remuneration of Rs.60.00 lacs or more per annum or Rs.5.00 lacs or more per month, if employed for part of the year. 19. Paisa is rounded off to nearest rupee. 20. Micro and Medium Scale Business Entities: There are no micro, small and medium enterprises, to whom the company over dues, which are outstanding for more than 45 days as at 31st March 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. As per our report given at even date FOR RRK & ASSOCIATES Chartered Accountants R.RADHA KRISHNA Partner M.No. 210777 For and on behalf of the Board Sambr Nutritions Limited Sd/- (MEERA B GURBANI) Director Sd/- (B K GURBANI) Chairman & Managing Director Sd/- (V. VAMSHI SRINIVAS) Chief Financial Officer Date: 29/05/2015 Place: Hyderabad. |