A. ComPauy llas taker‘ EPC/PCFC Facility,Cash Credit Facility, Letter of Credit Facility, Bank Guarantee Facility, GECL, Derivative/FC Faciltiy from State Bank of India, SME Ballygunge Branch, upto the tune of Rs. 36.40 Crore.
Rate of Interest: Cash Credit (CC) 11.65% and Standby Line of Credit (SLC) is 12.65%
Primary Security:-
First Hypothecation charge over entire Raw Materials, Work in Progress, Finished Goods, Advances to Suppliers, Consumables Stores and Receivables both present and future of the Company.
Collateral Security:
(A.) EM on Commercial Plot: Premises No.6, 2nd Floor, 6 Dr. Meghnad Saha Sarani, 4A, KMC word No.87, Kolkata- 700026 having super builtup area of 2678 sq ft Belonging to QVC Exports Ltd.
ib.S EM on Residential Flat measuring more or less 1280 Square Feet (on super built up area basis) at 136, Charu Chnadra Place, 4th Floor Flat no. 4A, Kolkata-700033 belonging to Shri Nilesh Kumar Sharma.
(C,j EM on Fieehold land of 78.50 decimal at Plot No-832, 833, 834, 838Mouza-Manikara, J.L. No-77, Khatian No-1258, P.S- Kanksa Durgapur, Dist-Burdwan belonging to QVC Steels Private Limited (Transferror Company)
(D.) EM on Commercial Plo;365, 4A, premises No.6, Dr. Meghnad Saha Sarani,4th Floor, word No.87, PS-Tollygunge, P.O.-Kalighat Koikata-700026 admeasuring area of area of 2350 Square Feet belonging to QVC Exports Ltd.
(E ) EM on Commercial PlotiEntire 3rd Floor with one covered car parking space of 70Sq ft at Ground Floor, Premises No. 6 Dr. Meghnad Saha Sarani, PS-Tollygunge, admeasuring area ol 2450 Sq ft Belonging to Unity Vyapaar Private Limited.
(F.) Lien on STDR of Rs. 1.15 Crores held in the name ofthe Company.
(G.) Lien on Mutual Fu^rn4b,.<J.15 Crores held in the name ofthe Company.
(H.) Personal < luartfffeSfcljMr, Ni*ss;i Kumar Sharma and Mrs. Madhu Sharma.
B. Company has taken FUBD/FBP/PSFC, Overdraft and Derivative Facility from ICICI Bank upto the tune of Rs. 10 Crore.
Rate of lnterest: For FUBD/FBP/PSFC/PCFC is 8.25% and for Overdraft is 9.25%
Exclusive charge by way of hypothecation only on the Stock and Debtors being financed out of the exports limits sanctioned by ICICI Bank. Collateral Security:
(a.) Lien of Fixed Deposits held in the name of the Company.
(b.) Personal Guarantee of Mr. Nilesh Kumar Sharma and Mrs. Madhu Sharma.
C. Company has taken FBWC-CC/ PC/FDBP/ ILC/FLC/BG/ FC/CEL Facility under multiple banking arrangement from Union Bank of India upto the tune of Rs. 15 Crore.
Rate oflnterest: For Cash Credit 11.55% and for Export WC Facility, Pre Shipment Credit EBLR 1.10%
Primary Scciirily:-
hirst Pari Pasu Charge on Stock and Book Debt and entire Current Assets on present and future of the Company created out of Bank Finance 25% Cash margin of ILC/FLC. 25% Cash Margin of BG.
CnlliUcral Security:
(a.) EM Charge on lease hold commercial property of Office Unit No. 611 on 6th Floor, at South City Business Park with 3 Car Parking Space, (b.) Personal Guarantee of Mr. Nilesh Kumar Sharma and Mrs. Madhu Sharma.
1. Background of I he comnanv:
QVC Exports Limited is a Public Unlisted company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company incorporated in the year 2005. The Company is engaged in Trading Business.
2. Statement of Significant Accounting Policies
The accounting policies set out below have been applied consistently to the period presented in these financial statements.
Basis of Preparation of Standalone Financial Statements;
1 he financial statements have been prepared to comply in all material aspects with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards prescribed under section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions relating to the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable. The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees. The financial statements are prepared under Division I of the Schedule III of the Companies Act, 2013. The financial statements are presented in Indian rupees, which is the functional currency of the country and all values are rounded off to Lacs except when otherwise indicated. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
Basis of Preparation of Consolidated Financial Statements:
The consolidated financial statements have been prepared to comply in all material aspects with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards prescribed under section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions relating to the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable. The consolidated financial statements are prepared on accrual basis under the historical cost convention. The consolidated financial statements are presented in Indian rupees. The consolidated financial statements are prepared under Division I of the Schedule III of the Companies Act, 2013.
The consolidated financial statements are presented in Indian rupees, which is the functional currency of the country and all values are rounded off to Lacs except when otherwise indicated.
Principles of Consolidation
The consolidated financial statements relate to M/s QVC Exports Limited (‘the Company’), and its Associates M/s QVC International Private Limited, M/s Unity Vyapaar Pvt Ltd, and M/s Matashree Mercantile Pvt Ltd. The consolidated financial statements have been prepared on the following basis:-
a. Investment in Associates where the company directly or indirectly holds more than 20% of the equity are accounted for using equity method as per Accounting Standard - 23 - “Accounting for Investments in Associates in Consolidated Financial Statements”.
b. The Company accounts for its share of post acquisition changes in net assets of associates, after eliminating unrealised profits and losses resulting from transactions between the Company and its associates to the extent of its share, if any, through its Consolidated Profit and Loss Statement, to the extent such change is attributable to the associates’ Profit and Loss Statement.
c. The difference between the cost of investment in the associates and the Group's share of net assets at the time of acquisition of share in the associates is identified in the financial statements as Goodwill or Capital Reserve as the case may be.
d. The financial statements of the associates used in the consolidation are drawn up to the same reporting date as that of the Company. These have been consolidated based on latest available financial statements.
e. As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like transactions and events in similar circumstances and are presented in the same manner as the Company’s separate financial statements.
Investment other ftuuiin subsidiary has been accounted as per Accounting Standard (AS) 13 on “Accounting for Investments”,f
ff t/C "V \ QVC EXPORTS LIMITED m/r pyPORTS LIMITED
Use of Estimates:
The preparation of the financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amount of revenues and expense during the reporting period. Accounting estimates could change from one period to another. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods as and when the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the period in which the changes are made and, if material, their effects are disclosed in the notes to the financial statements.
Operating Cycle
Based on the nature of products/activities of the company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.
Current and Non-Current Assets:
All assets and liabilities are classified into current and non-current.
Assets:
An asset is classified as current when it satisfies any of the following criteria:
a) It is expected to be realized in, or is intended for sale or consumption in, the Company's normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is expected to be realized within 12 months after the reporting date; or
d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at-least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current. Liabilities:
A liability is classified as current when it satisfies any of the following criteria:
a) It is expected to be settled in the Company's normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is due to be settled within 12 months after the reporting date; or
d) The Company does not have an unconditional right to defer settlement of the liability for atleast 12 months after the reporting date.
Current liabilities include current portion of non-current financial liabilities. Ail other liabilities are classified as noncurrent.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Property. Plant and Equipment:
Property, plant and equipment are carried at cost of acquisition or construction net of recoverable taxes, trade discounts and rebates less accumulated depreciation and/or accumulated impairment loss, if any. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditures related to an item of property, plant and equipment (except land) are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. The valuation and recognition is done by keeping in view the provisions of the Accounting Standard 10 on “Accounting for Property, Plant and Equipment”. None of Fixed Assets have been revalued during the Year.
Depreciation on Tangible Fixed Assets has been provided on Written down Value Method over the useful lives of Assets as prescribed in Schedule II of the Companies Act, 2013. Depreciation for Assets purchased/sold during a period is proportionately charged.
Property, plant and equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal.
Losses arising from retirement or gains or losses arising from disposal of property, plant and equipment which are carried at cost i^0^n the Statement of Profit and Loss.
Property, Plant and Equipment - Intangible:
Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortization and any accumulated impairment loss.
Intangible assets are amortized in the Statement of profit and loss over their estimated useful lives, from the date that they are available for use based on the expected pattern of consumption of economic benefits of the asset.
In accordance with the applicable Accounting Standard, the Company follows a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. However, if there is persuasive evidence mat the useful life of an intangible asset is longer than ten years, it is amortized over the best estimate of its useful life. Such intangible assets that are not yet available for use are tested annually for impairment. Intangible assets comprise ERP software only, which are being amortized over a period of 5 years.
Amortization method and useful lives are reviewed at each reporting date. If the useful life of an asset is estimated to be significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern. An intangible asset is derecognized on disposal or when no future economic benefits are expected from its use and disposal.
Inventories:
Inventories comprise Trading Goods and are carried at the lower of cost and net realizable value. Cost of inventories comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Valuation of inventories is done on a First in First Out (FIFO) basis.
Employee Benefits:
Short-term employee benefits
Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia.
Contribution as per Employees' State Insurance Corporation and Employees Provident Fund towards Employees’ State Insurance and Provident Fund are provided for and payments in respect thereof are made to the relevant authorities on actual basis and relevant employer’s contribution are recognized as expenditure and are charged to the profit & loss Account under the group head Employees Benefit Expenses.
Investments:
Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.
On initial recognition, all investments are measured at cost. The cost comprises of purchase price and directly acquisition charges such as brokerage, fees and duties.
Long -term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of investments, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit & loss.
Recognition n [Income And Expenditure:
Revenue Recognition: Revenue is recognized as and when the economic benefits will flow to the company.
Sale of Goods:
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods, The Company collects GST on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from Revenue. CVD and Additional Duty deducted from revenue (Gross) is the amount that is included in the Revenue (Gross)
Export Benefits:
Export benefits are recognized on accrual basis as per schemes specified in Foreign Trade Policy, as amended from time to time. -2^=5,-
Interest:
Interest benefits are recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “Other Income” in the statement of Profit and Loss.
All other Income and Expenditure to the extent considered receivable and payables unless specifically stated are accounted for on accrual and prudent basis.
Foreign Currency Translation:
Initial recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. The rate of conversion used is the rate prescribed by the CBEC.
Conversion: Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange iate at the date of the transaction. 'Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
Exchange tliltcrcnces: The transactions in foreign exchange are accounted at the exchange rate prevailing on the date of the transaction. Assets & liabilities denominated in foreign currency are restated at the year end adopting the contracted/ year end rates as applicable. Any exchange gains or losses arising out of subsequent fluctuations are accounted in the Profit & Loss Statement.
Translation of foreign exchange tr ansaction: Company follows AS - 11 (Revised) in respect of Foreign Currency Transaction applying the principle of most likely realizable/disbursable amount.
Forward Contracts: The Company enters into forward contracts in order to hedge its foreign currency exposures. As per Para 36 of AS11, premium or discount arising at the inception of such a forward exchange contracts have been amortised as expense or income over the life of the contract. Exchange differences on such contracts have been recognised in the statement of profit and loss in the reporting period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contracts have been recognised as income or as expense for the period. The contracts are entered for a short term period of less than 12 months.
Earnings Per Share:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted number of equity shares outstanding during the period is adjusted for events that have changed the number of equity shares outstanding, without a corresponding change in resources.
Accounting for Taxes on Income:
Tax expense comprises of Current Tax and Deferred Tax. Current Tax is measured as the higher of the amount expected to be paid to the tax authorities, using the applicable tax rates and Minimum Alternate Tax Calculated on the Book Profits.
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 depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.
Provisions, Contingent Liabilities and Contingent Assets
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.
Cash & Cash EquivrygffFs a Healed in the Cash Flow Statement comprise Cash on Hand, Cash at Bank and Fixed Deposits held with Rank.
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Borrowing Costs:
Borrowing cost includes interest, and other ancillary costs incurred in connection with the arrangement of borrowings and are charged to revenue. Borrowing costs that are attributable to the acquisition or construction of qualifying assets aie capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.
Segment Information:
based on the principles for determination of segments given in Accounting Standard 17“Segment Reporting” issued by accounting standard notified by Companies (Accounting Standard) Rules, 2008, the company is mainly engaged in the activity surrounded with main business of the Company hence there is no reportable segment.
Impairment of Assets:
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which as the 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.
The company found no indication that any asset may be impaired. Therefore, there was no need to determine impairment Loss. Other disclosure requirements as per mandatory Accounting Standard AS - 28 are not applicable in the case of the company.
Prior Period Expenditure:
The change in estimate due to error or omission in earlier period is treated as prior period items. The items in respect of which liability has arisen/crystallized in the current year, though pertaining to earlier year is not treated as prior period expenditure.
Extra Ordinary Items:
The income or expenses that arise from event or transactions which are clearly distinct from the ordinary activities of the Company and are not recurring in nature are treated as extra ordinary items. The extra ordinary items if any are disclosed in the statement of profit and loss as a part of net profit or loss for the period in a manner so as the impact of the same on current profit can be perceived.
Director Personal Expenses
There are no direct personal expenses debited to the profit and loss account. However, personal expenditure if included in expenses like telephone, vehicle expenses etc. are not identifiable or separable.
Previous Year Figures have been regrouped or rearranged wherever considered necessary.
Balances of Sundry Debtors, Loan & Advances and Sundry Creditors are subject to confirmation and reconciliation (if any).
The details of amount outstanding under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent of information available with the Company are as under:
(i) Principal & Interest amount due and remaining unpaid as at 31.03.2024: Nil (Previous YearNil)
(ii) Payment made beyond the appointed day during the year: Nil (Previous Year Nil)
(iii) Interest Accrued and unpaid as at 31.03.2024: Nil (Previous YearNil)
The Company has utilized the borrowings received from banks and financial instutions for the purpose for which it was taken during the year.
There were no capital-work-in progress and intangible assets under development, whose completion was overdue or has exceeded its cost compared to its original plan.
In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and for all known liabilities are adequate and not in excess of llieamwuai reasonably necessary.
Notes to the Re-stated Financial Statements:
I. Non-adjustment Items:
No Audil qualifications for the respective periods which require any corrective adjustment in these Restated Financial Statements of the Company have been pointed out during the restated period.
II. Material Regroupings:
No adjustments have been made in the restated summary statements of Assets and Liabilities Profits and Losses and Cash flows wherever required by reclassification of the corresponding items of income expenses assets and liabilities in order to bring them in line with the requirements of the SEBI Regulations.
III. Material Adjustments in Restated Profit & Loss Account:
No material adjustments required to be done in Restated Profit & Loss Account.
IV. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006
Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro and Small Enterprises.
The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2021 as Micro, Small or Medium enterprises. Consequently, the amount paid/payable to these parties could not be ascertainable.
There are no micro and small enterprises, as defined in the micro and small enterprises development act, 2006, to whom the company owes dues on account of principal amount together with the interest and accordingly no additional disclosures have been made. The above information regarding micro and small enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
V. Other figures of the previous years have been regrouped / reclassified and / or rearranged wherever necessary.
VI. The balance of Sundry Creditors, Sundry Debtors, Loans Advances, Unsecured Loans, and Current Liabilities are subject to confirmation and reconciliation.
IX. Leave Encashment [AS-15]
Accounting Standard (AS) — 15 issued by ICAI is Mandatory. However, the company has not made provision for leave encashment benefit on retirement of employee as the quantum of liability is not ascertainable due to the availability of leave encashment benefit and availment of leave any time during the service period.
X. Trade Receivables, t rade Payables, Borrowings, Loans & Advances and Deposits
Balances of Trade Receivables, Trade Payables, Borrowings and Loans & Advances and Deposits are subject to confirmation.
XI. Re-grouping/re-classification of amounts
The figures have been grouped and classified wherever they were necessary and have been rounded off to the nearest rupee.
XII. Examination of Books of Accounts & Contingent Liability
The list of books of accounts maintained is based on information provided by the assesse and is not exhaustive. The information in audit report is based on our examination of books of accounts presented to us at the time of audit and as per the information and explanation provided by the assessed at the time of audit.
XIII. Director Personal Expenses
There are no direct personal expenses debited to the profit and loss account. However, personal expenditure if included in expenses like telephone, vehicle expenses etc. are not identifiable or separable.
XIV. Deferred Tax Asset/Liability: [AS-22]
The company has created Deferred Tax Asset / Liability as required by Accounting Standard (AS) - 22.
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