MERCURY METALS LIMITED BALANCE SHEET AS AT MARCH 31, 2015 (Amount in Rs.) PARTICULARS NOTE AMOUNT AS AT 31-3-2015 AMOUNT AS AT 31-3-2014 I. EQUITY AND LIABILITIES 1 Shareholders' funds (a) Share capital 2 74,656,580 74,656,580 (b) Reserves and surplus 3 (45,190,610) (85,243,952) 2 Non-current liabilities (a) Long-term borrowings 4 - 39,916,659 3 Current liabilities (a) Trade payables 5 - 826,875 (b) Other current liabilities 6 98,855 91,375 (d) Short-term provisions 7 52,000 - TOTAL 29,616,825 30,247,537 II. ASSETS 1 Non-current assets (a) Non-current investments 2 Current assets (a) Inventories (b) Trade receivables (c) Cash and Bank Balance (d) Short-term loans and advances TOTAL 8 3,001,250 12,238,730 1,471,084 229,437 12,676,324 29,616,825 3,001,250 12,269,612 14,648,629 157,771 170,275 30,247,537 9 10 11 12 Significant Accounting Policies 1 The accompanying notes are an integral part of the Financial Statements. As per our separate report of even date On behalf of the Board of Directors For Ambalal Patel & Co. Chartered Accountants Firm Reg. No. : 100305W CA Ratan Jethaliya Mercury Metals Limited Govindram L. Kabra Executive Director DIN - 00006621 Partner Membership No: 47398 Ramprakash L. Kabra Ahmedabad Rasikbhai A. Rana Director 30/05/2015 Chief Financial Officer DIN - 00006664 36 ANNUAL REPORT 2014-2015 MERCURY METALS LIMITED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED ON 31-3-2015 (Amount in Rs.) Particulars Note No. 2014-15 2013-14 I. Revenue from operations Sale of Metals Sale of Shares 13 7,121,125 596,250 4,823,437 7,717,375 4,823,437 II. Other income 14 103,604 13,250 III. Total Revenue (I + II) 7,820,979 4,836,687 IV. Expenses Purchases of Stock-in-Trade Changes in inventories of Stock-in-Trade Employee benefits expense Other Expenses 15 16 17 18 6,872,555 30,882 276,602 381,778 4,539,025 271,502 558,260 Total expenses 7,561,817 5,368,787 V. Profit before extraordinary items and tax (III - IV) VI Extraordinary Items 259,162 (532,100) (20,633,396) VII. Profit before tax (V-VI) VIII. Tax expense: (1) Current tax (2) Deferred tax (3) Prior Period Tax Adjustment 259,162 52,000 (21,165,497) 52,000 - XI. Profit/(Loss) for the period (V-VI) 207,162 (21,165,497) X. Earnings per equity share: (1) Basic (2) Diluted Significant Accounting Policies 1 The accompanying notes are an integral part of the Financial Statements. 0.03 0.03 (3.04) (3.04) As per our separate report of even date For Ambalal Patel & Co. Chartered Accountants Firm Reg. No. : 100305W CA Ratan Jethaliya Partner Membership No: 47398 Ahmedabad 30/05/2015 Rasikbhai A. Rana Chief Financial Officer On behalf of the Board of Directors Mercury Metals Limited Govindram L. Kabra Executive Director DIN - 00006621 Ramprakash L. Kabra Director DIN - 00006664 ANNUAL REPORT 2014-2015 37 MERCURY METALS LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED ON 31ST MARCH 2014 (Amount in Rs.) Particulars 2013-14 2012-13 A. Cash inflow/(outflow) from the opearating activities Net profit before Tax and Extra ordinary item 259,162 (532,100) Adjustments for: Dividend received (33,125) (13,250) Excess provision w/off (Secured Loan) (70,479) - Bad Debts W/off - (103,604) (20,633,396) (20,646,647) Operating Profit before working capital changes 155,558 (21,178,747) Adjustment for (Increase)/Decrease in Working Capital : Inventories 30,882 - Receivables 13,177,545 20,321,111 Loans & Advances (12,506,049) (13,476) Current Liabilities & Provisions (819,395) (117,017) 816,998 21,124,633 Net cash inflow/(outflow) from operating activities (A) 38,541 (54,114) B. Cash inflow/(outflow) from investing activity Dividend Received 33,125 13,250 Net cash inflow/(outflow) from investing activity (B) 33,125 13,250 C. Cash inflow/(outflow)from financing activity - - Net cash inflow/(outflow) from Fianancing activity (C) - - Net Cash changes in cash and cash equivalent (A+B+C) 71,666 (40,864) Cash & Cash Equivalent at the beginning of the Period 157,771 198,635 Cash & Cash Equivalent at the end of the Period 229,437 157,771 Net Increase in cash and cash equivalent 71,666 (40,864) Note : 1. The Cash Flow Statement has been brpared under the Indirect Method as set out in AS-3 on Cash Flow Statement notified by Companies(Accounting Standards) Rules, 2006. 2. Figures in bracket rebrsent Outflow of cash. As per our separate report of even date For Ambalal Patel & Co. Chartered Accountants Firm Reg. No. : 100305W CA Ratan Jethaliya Partner Membership No: 47398 Ahmedabad Rasikbhai A. Rana 30/05/2015 Chief Financial Officer On behalf of the Board of Directors Mercury Metals Limited Govindram L. Kabra Executive Director DIN - 00006621 Ramprakash L. Kabra Director DIN - 00006664 38 ANNUAL REPORT 2014-2015 MERCURY METALS LIMITED Note 1 SIGNIFICANT ACCOUNTING POLICIES i) Basis Of Preparation : The Financial Statements are brpared as per historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India, Section 133 of the Companies Act, 2013 and the applicable Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006. The company follows mercantile systems of accounting and recognised income and expenditures on accrual basis. ii) Use of Estimates : The brparation of financial statements in conformity with generally accepted principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. iii) Fixed assets & Debrciation : There is no fixed assets held by the company. And hence there is no debrciation provided by the company iv) Inventories : Inventories of shares & securities are valued at cost. Other Traded inventories Valued at lower of the cost or Net realisable value. Cost of Inventories comprises of cost of purchase and other cost incurred in the bringing the inventories to their brsent location and condition. v) Revenue Recognition : Sales are recognized on completion of sale of goods and are recorded net of VAT. Dividend income is recognized when the right to receive the same is established. vi) Employee Benefits : Liabilities in respect of Gratuity & other retirement benefits is not provided in the Books of Account. vii) Impairment of Assets : There is no fixed assets held by the company. And hence company is not required to provide for any impairment loss in the financial statements. viii) Taxes on Income : Provision for tax is made for both current and deferred taxes. Current tax is provided on the Taxable income using the applicable tax rates and tax laws. Deferred tax liabilities arising on account on timing differences, which is capable of reversal in subsequent periods are recognized using tax rates and tax laws, which have been enacted or substantively enacted. ix) Earning per Share : The company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on Earnings Per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity shares outstanding during the year. x) 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 non current investments. All Investments are stated at cost. A provision for diminution is made only in case of permanent diminution in value of such securities. xi) Provisions, Contingent Liabilities and Contingent Assets : Provisions involving a substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements. Note 2 In compliance with the accounting standard-22 relating to "Accounting for taxes on Income", as there is no timing difference arises, provision for deferred tax liability is not provided in book of accounts. Note 3 Company has entered into OTS scheme for its liability towards loan from Charotar Nagrik Sahakari Bank Ltd. During the year under review, company has settled the said loan liability by sale of mortgaged property of Guarantor viz., Gopal Rice Mill. The amount is directly received by Bank by way of sale of property. Company has transferred the sum of Rs.3,98,46,180 of the said transaction to capital reserve being capital receipt. Note 4 Company has filed petition in Gujarat High Court for reduction of capital u/s 101 of Companies Act, 1956. As per scheme of capital reduction, share capital of Rs.7,46,56,580 divided into 69,52,808 Equity Shares of Rs. 10 each fully paid up and share forfeiture account of Rs.51,28,500 to Rs.69,52,808 divided into 69,52,808 Equity Shares of Re.1 each fully paid up and that such reduction be effected by reducing the paid up value of shares of the Company from Rs.10/- per share to Re.1/- per share, on 69,52,808 Equity Shares and cancellation of share forfeiture account of Rs.51,28,500. The matter is pending for hearing at Hon. Gujarat High Court. Note 5 During the brvious financial year 2013-14, the company has written off long outstanding Debtors balances as Bad debts of amount to Rs. 2,06,33,396, and disclosed the same as extra-ordinary item in the statement of Profit and Loss for year ended 31st March, 2014. Note 6 In the opinion of the board, the current assets, Loans & Advances are approximately of the value stated therein, if realized in the ordinary course of business. Balance of secured and unsecured loans, sundry creditors, sundry debtors and loans & advances are subject to confirmation & reconciliation. In the opinion of the Management book debts and advances are outstanding since long, however these are recoverable, hence no provision has been made for doubtful debt. Note 7 Inventories of shares are held in demate as well as physical certificate form. In respect of shares held as inventories by company, the same are stated at cost of acquisition. Company has not made provision for diminution in the value of shares held as inventories. Since in the opinion of the management, such decline is temporary phase and no provision would be necessary. Note 8 Capital Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for Nil (Previous Year Nil). Note 26 Contingent Liabilities In the opinion of the Management, there is no contingent liability. Note 9 Previous year figures are regrouped and rearranged wherever necessary to compare with current year figures. Note 10 Figures are rounded off to the nearest rupee. As per our separate report of even date For Ambalal Patel & Co. Chartered Accountants Firm Reg. No. : 100305W CA Ratan Jethaliya Partner Membership No: 47398 On behalf of the Board of Directors Mercury Metals Limited Govindram L. Kabra Executive Director DIN - 00006621 Ramprakash L. Kabra Rasikbhai A. Rana Director Chief Financial Officer DIN - 00006664 Ahmedabad 30/05/2015 |