Corporate Information:
The Company was incorporated on 24th November, 1993 in the state of
United Andhra Pradesh. The Company is engaged in the business of
manufacturing of Tyre Retreading Materials.
NOTE NO. 1
Excise Duty Refund Receivable Balance:
The Company has paid Rs.17.48 lakhs towards the Excise Duty on Finished
Products viz., Precured Tread Rubber, Cushion Gum, Vulcanizing solution
during the period 1995-96, 1996-97 against the show cause notice issued
by the Central Excise Department dispute in tariff classification and
computation of aggregate value of clearances. The company has filed
petition before the Honb'le High court of Andhra Pradesh and Telangana
and pending for final decision. The amount is treated as Excise duty
refund receivable account and shown under the head "Other Non Current
Assets". The management is confident that the same will be recovered.
NOTE NO. 2
Cash Credit facility taken from State Bank of India, Hyderabad is
secured by hypothecation of Stock of Raw Materials, Work-in-Progress,
Finished Goods, Stores & Spares, Book Debts, Movable (not being pledge)
and Immovable Properties etc., also guaranteed by four Directors of the
Company in their personal capacity
NOTE NO. 3
In compliance with the Accounting Standard "AS-22 Accounting for Taxes
on Income" issued by the Institute of Chartered Accountants of India,
the company has recognized Rs. 21,53,924/- towards deferred tax asset
the year 2014-15. The major component of deferred tax asset / liability
is on account of timing difference in depreciation.
NOTE NO. 4
The company has published Quarterly financial results in accordance
with the requirements of listing agreement with stock exchange. The
recognition and measurement principle as laid down in the Accounting
Standard - 25 "Interim Financial Reporting" have been followed in the
presentation of these results.
NOTE NO. 5
Useful life of various assets was revised in accordance with schedule
II of the companies Act 2013. The Change in useful life resulted in
the completion of useful life of certain fixed assets before
31.03.2014. The carrying amount of the assets after retaining the
salvage value was transferred to the retained earnings in the current
year. The amount of which is Rs.75,43,175/-
NOTE NO. 6
Previous year figures have been regrouped wherever if thought necessary
in conformity with the current year groupings. Paisa has been rounded
off to the nearest rupee.
Notes to the financial statements and statement on accounting policies
form an integral part of the balance sheet and profit and loss
statement.
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