| ANNUAL REPORT 2005-2006
NOTES ON ACCOUNTS
1. SIGNIFICANT ACCOUNTING POLICIES
A) BASIS OF PREPARING FINANCIAL STATEMENTS
i) The Financial Statements have been prepared under the historical Cost
Convention in accordance with the normally accepted accounting principle
and the provisions of the Companies Act, 1956, as adopted consistently by
the company.
ii) Accounting policies not specifically referred to otherwise are
consistent and in accordance with generally accepted accounting principles.
B) FIXED ASSETS AND DEPRECIATION
i) Fixed Asset are generally stated at cost of acquisition or revaluation
amount less Value of Demolished & Discarded Assets and accumulated
depreciation.
ii) Depreciation on Fixed Assets other than land is provided on straight
line method at the rates specified and in the manner prescribed in the
schedule XIV of the Companies Act 1956.
iii) In respect of revalued assets, depreciation to the extent that it
pertains to the amount of revaluation, is transferred from the Revaluation
Reserve to the Profit & Loss account.
C) INVESTMENTS
i) Long term investments are stated at cost.
ii) Diminution in the value of long Term investments is Provided for where
it is considered other than Temporary in nature.
D) INVENTORIES
Inventories are taken valued and certified by management and valuation is
on following basis :-
i) Raw Material, Stores and spares are generally valued at cost determined
on first in first out basis.
ii) Work in Progress is valued at direct cost.
iii) Finished Goods are valued at cost or market value whichever is lower.
iv) Scrap is valued at estimated realizable value.
v) Loose Tools are Valued at Estimated cost.
E) BASIS OF ACCOUNTING
All items of income and expenditure having a material bearing on the
financial statement are accounted for on accrual basis.
F) EXCISE DUTY
Excise duty on the finished goods manufactured is accounted for on
clearance of goods from the factory premises.
G) SALES
i) Sales are net of excise duty & Sales Tax
ii) Other income is recognized on accrual basis except when the realization
of such income is uncertain.
H) ACCOUNTING FOR FOREIGN CURRENCY TRANSACTION
Transactions denominated in foreign currencies are normally recorded at the
exchange rate prevailing at the time of transactions.
I) RETIREMENT BENEFITS
Leave encashment of leave is permitted only on the retirement, hence no
provision is made for leave encashment of the present employees for their
Un-availed leave.
J) PROVISION FOR CURRENT AND DEFERRED TAX
Provision for current income tax is made on the assessable income at the
tax rate applicable to the relevant assessment year. Deferred income taxes
are recognized for the future tax consequences attributable to timing
differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases.
Other deferred tax assets are recognized and carried forward to the extant
that there is reasonable certainty of realization.
2. In the opinion of the directors, current assets, loans and advances are
approximately of the value stated, if realized in the ordinary course of
business. The provision for depreciation and all known liabilities is
adequate and neither in excess nor short of the amount reasonably
necessary.
3. MISCELLANEOUS EXPENDITURE :
Share issue Expenses are amortized over a period of ten years:
4. Provision for NPA Interest till date made as follows:
(Amt. In Lacs)
(a) 31.03.06 31.03.05
- Term Loan 65.99 65.99
- WCTL 15.19 15.19
- Working Capital
- Cash Credit A/c. 32.57 32.57
- Book Debt 22.36 22.36
(b) No provision for interest on Bank Borrowings has been made in accounts
as the account has been consider NPA by the bank. The interest there on is
not ascertain and not provided for the year.
5. CONTINGENT LIABILITIES NOT PROVIDED FOR
RS. IN LACS
i) Estimated amount of contracts remaining
To be executed on capital account and not NIL
Provided for [NIL]
ii) Letters of credit outstanding NIL
[NIL]
iii) Disputed Income Tax Liabilities NIL
[NIL]
6. RELATED PARTY DISCLOSURES PER AS-18:
Particulars Relation Nature of Amount Balance at
Transaction Rs. lacs year end
Rs lacs
Key Personnel Managing Director Remuneration 1.20 1.76 (Cr)
Mr. V.K. Doshi Receipt of Funds 0.21
7. Since the Company has incurred loss and there is no reasonable certainty
of making profits in the near future the deferred assets as per AS 22 is
not recognized.
8. Since there is negative result earning per share as per AS 20 is not
worked out.
9. Small Scale industrial undertaking to whom the Company owes sums
exceeding Rs. 1.0 lacs and which are outstanding for more than 30 days are
as under ;
Name
Chandresh Engineering Works. Press Metal Tools
Forward Precision Engineering Pvt. Ltd. Super Metal Industries.
Globe Industries.
The aggregate amount of outstanding to small scale industrial undertaking
as on 31/03/06 is Rs. 11,69,711/-
The small scale industrial undertaking status has been reckoned on the
basis of information available with the company
10. Amount paid / payable as Remuneration to directors U/S 198 of the
Companies Act, 1956 is as under:
2005-06 2004-05
To the Managing Director Rs. 1,20,000/-* Rs. 1,20,000/-
* Subject to Approval of Share Holders
The above remuneration is minimum remuneration paid in view of in adequacy
of profit.
II. OPENING AND CLOSING STOCK OF GOODS MANUFACTURED DURING THE YEAR: -
2005-06
Opening Stock Closing Stock
Class of goods Nos. Rs. lacs Nos. Rs. lacs
manufactured
Ball & Roller
Bearings 5,091 3.54 1,041 0.55
(10,259) (5.95) (5,091) (3.54)
(A) INFORMATION FOR EACH CLASS OF GOODS MANUFACTURED AND SOLD DURING THE
YEAR:
Class of Licensed Installed Production Sales
goods Capacity Capacity Quantity Value
Nos. Nos. Nos. Rs. lacs
Ball & Roller N.A 10,00,000 28,651 32,701 27.58
Bearings (10,00,000) (31,388) (36,556) (20.81)
(B) RAW MATERIALS CONSUMED ;
Quantity Value
Nos. Rs. in Lacs
Races/Rings 171,124 03.57
(165,526) (03.65)
Balls & Roller 7,11,232 3.75
(6,77,439) (3.15)
Cages 28,651 1.45
(31,388) (1.34)
Others - 0.75
(C) STORES AND SPARES
Indigenous Rs. 1.12 Rs. 1.63
Imported - -
12. CIF VALUE OF IMPORTS
Capital Goods NIL
[NIL]
Raw Material NIL
[NIL]
13. EXPENDITURE IN FOREIGN CURRENCY:
i) Commission on Exports NIL
(NIL)
ii) Foreign Tour NIL
[NIL]
iii) Remittance in Foreign Currency NIL
on Account of Dividend [NIL]
14. AUDITOR'S REMUNERATION
2005-06 2004-05
Audit Fees 17,500 15,000
Tax Audit Fees 4,500
Expenses 500 500
15. The Balance of Debtors, Creditors and Loans and Advances are subject to
confirmation. We find old balances continue for a very long time for which
no satisfactory explanation is available to us. Pending this we have not
given any Accounting treatment for write off of Debtors, Creditors or other
related accounts. The amount whereof is not ascertainable.
16. Schedules 1 to 18 form integral part of Accounts and have been duly
authenticated.
( Figures in brackets are that for the previous year )
17. Previous year's figures have been re-grouped/re-arranged wherever
necessary.
For and on behalf of the board As per our attached Report of
even date.
V. K. Doshi For Divyakant Zaveri & Co.,
Managing Director Chartered Accountants
R. G. Dalmia D. R. Zaveri
Director [Proprietor]
PLACE : DABHASA PLACE : BARODA
DALE : 05/05/2006 DATE : 05/05/2006 | 