Background
Beryl Drugs Limited (The Company) is a public Limited Company
Domiciled in India and Its Shares are listed On Stock Exchange. The
Company is principally Engaged in Manufacturing of Bulk Drugs.
NOTE NO. 1
BASIS OF PREPARATION
The financial statements of the company have been prepared in
accordance with generally accepted accounting principle in India
(India GAAP). The company has prepared these financial statement to
comply with all material respect with the accounting standard notified
under section 133 of the companies act 2013,Read with rule 7 of
Companies (Accounts) Rules,2014. The Financial Statement has been
prepared under the Historical cost convention on the Accrual Basis
Except in case of the Asset which has been recorded on fair value and
Assets for Which Provision for Impairment is Made. The accounting
policy have been consistently applied by the company and are
consistent with those used in the Previous Year.
NOTE NO. 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICY
NOTE 3
Loan of HDFC car loan with Interest payable @ 10.25 % p.a repayable in
36 equal installment over a Period of 3 years commencing from
05/06/2014.
NOTE 4
Defined Benefit Plan - The employees' gratuity fund scheme is a
defined benefit plan. The present value of obligation is determined
based on acturial valuation using the Project Unit Credit Method,
which recognises each period of service as giving rise to additional
unit of employee benefit entitlement and measures each unit separately
to build up the final obligation.
National Bank is Secured Against Hypothecation Of Stock Of Raw
Material, Packaging Material, Finished Goods Consumable Stores and
Spares, Bills, receivables and and spares, bills, book debts & all
other movable both present & future) ( The Cash Credit Is Repayable On
Demand) And Interest Rate Is 14.25% p.a.)
NOTE 5
Provision for Wealth Tax of Rs.112368.90/-(PY 114284.40) has been made
during the year, however the company has not paid the wealth tax of
financial year 2012-13 and 2013-14.
NOTE 6
Liabilities of Entry tax, service tax and excise have been provided as
per Return filed. However additional liability if any arising on
assessment shall be provided for on completion of assessment.
NOTE 7
Defined Benefit Plan: Refer to note 7.1 NOTE - 11.3
Excise Duty is made on the closing Stock of finished goods as per the
Guidance Notes on Accounting for Excise Duty.
NOTE 8
Company has not availed the Cenvat benefit on capital goods purchased
during the year.
Expenses relating to construction of building capitalised during the
year and included in capital work in progress.
NOTE 9
Pursuant to the enactment of companies act 2013,the company has
applied the estimated useful lives as specified in schedule II.
Accordingly the unamortised carrying value is being
depriciated/amortised over remaining useful lives. The written down
value of Fixed Assets whose lives have expired as at 1st april 2014
Have been adjusted From the opening balance of Profit & Loss Account
amounting to Rs.93750.42/-
NOTE 10
Investment in Equity Shares is stated at cost. Company has made the
investment in Beryl Securities Ltd., a Company under the same
management.
NOTE 11
The Company has measured the deferred tax in accordance with AS-22
issued by the ICAI and amount recognized in profit & loss account.
NOTE 12
The company has given advances amounting to Rs.7931216/- (P.Y. Rs.
9719535/-) including interest free loan of Rs.21,31,216/- out of their
spare funds to firm, companies and parties without obtaining
registration under section 45I of the RBI Act, however same is not
applied for because advances of said fund is 12.21.% (Approx.) of the
total funds (Share capital and Reserve and Surplus) of the company.
NOTE 13
Loans & Advances includes Rs.643222.00 (P.Y. Rs. 668222.00) over due
from other parties on account of advance against capital assets.
Further no provision for sticky advances has been made due to
management in hope that the advances will be settled through full
recovery thereof, in due course.
NOTE 14
Due from customer Rs. 36414.00 (PY Rs. 36414.00) considered doubtful
but no provision for doubtful debt has been made in pursuance of
follow up with said customer(s).
NOTE 15
In the opinion of the Board of Directors the current assets are
expected to be realized in, within 12 months from the reporting date
or in the company's normal operating cycle and have value on
realization in the ordinary courses of business at least equal to the
amount at which they are stated in the Balance Sheet and provision for
all known liabilities is adequate and not in excess of the amount
reasonably necessary.
NOTE 16
Sales are Inclusive of Freight and Octroi Claimed In the Sales Invoice
but net of Excise Duty and Sales return.
NOTE 17
The above rent received of Rs.48000/- is pertaining to rent received
from the Beryl Securities Ltd., a company under the same management
NOTE 18
The Company availed Cenvat benefit on purchase of material and netted
from the cost of these goods/ material. Cenvat is adjusted against
excise duty to the extent utilized against clearance of the material.
NOTE 19
Particulars of employees who are in receipt of remuneration
aggregating to more than Rs.60,00,000.00 per annum or Rs.5,00,000.00
p.m. are not given since there is no such employees.
NOTE 20
Stores and spares, coal and consumable chemical are charged to profit
and loss account as and when these are incurred NOTE-28.2
Travelling, Conveyance expenses also included expenditure incurred by
the Directors of the Company for the purpose of business of the
Company.
21. Previous year's figures have been regrouped and re-casted,
re-arranged wherever necessary to make them comparable with those of
the current year
22. Under the Micro, Small and Medium Enterprises Development Act,
2006 certain disclosure are required to be made relating to Micro
Small and Medium Enterprises (SME). The company is in process of
compiling relevant information from its suppliers about their coverage
under the said Act. Since the relevant information is not readily
available, no disclosure have been made in the accounting, however in
view of the management the amount due to the suppliers are paid within
the mutually agreed credit period and therefore there will not be any
interest that may be payable in accordance with the provision of the
Act
23. The Company has filed its return of the income up to Assessment
Year 2014-2015 and the Income Tax Assessment of the Company has been
completed upto Assessment Year 2013-14.
24. Contingent Liability not provided AS ON AS ON
2014-2015 2013-2014
1. Claim against the Company not
Acknowledged as debts.
a. Commercial Tax Authority 82865.00 82865.00
(Against Entry Tax 98-99)
(Against Entry Tax 12-13) 320624.00 Nil
(Against M.P Vat Tax 11-12) Nil 229617.00
(Against M.P Vat Tax 12-13) 1142415.00 Nil
(Against CST 12-13) 12937.00 Nil
b. Central excise department
(Against Excise duty ) 8825970.00 8825970.00
c. Central excise department has filed SLP before Hon'ble Supreme
Court against appeal allowed by Hon'ble M.P. High Court Bench, Indore
in connection of non liability of excise on the company product.
Nevertheless, company is in hope of dismissal of appeal of the
department hence no provision is made in the account, involving a
Total Amount of Rs.8825970/-
d. The Company have not made Provision in Books of Accounts for Demand
raised by Various Tax Authorities including Rs.320624 (Entry Tax
2012-13), Rs.1142415(Vat Tax 2012-13),Rs.12937 (CST 2012-13).Thus the
Profits are overstated by the Aforementioned Amounts. In respect of
above items future cash outflows if any are determinable only on
receipt of judgment pending at various forum/ authority.
25. Interest received include Rs. 798531/- from loan given to Malwa
real estate development pvt. Ltd., Rs. NIL from Radheshwari Developers
Pvt. ltd.
26. The company had a trading division which has been disposed of
pursuant to a single plan during the current year, but said trading
division does not qualify as a business component Hence the related
disclosure as prescribed in AS-24 -"Discontinuing operation" are not
provided.
27. The Company is liable to pay Tax collected on source for scrap
sale made during the Year, but as per management's contention, they
are not liable for TCS as they will receive form 27 C from the
Purchaser of scrap.
28. a) The company has bought land in Pithampur under lease agreement,
which is in the nature of operating lease. Required disclosure as per
AS - 19 "Leases" are as follow:
b) General description of lease term:
Assets are taken on lease for a period of 30 years.
ii) As leaser
The company has given own office to Beryl Securities Limited on
monthly rent. The rent agreement for 11 months are cancelable and are
generally renewable in mutual consent or mutually agreeable terms. The
rental income on such is included in other income.
29. Company has given Inter corporate advances to Malwa real estate
development pvt. Ltd. of Rs. 53,00,000/ - and to Radheshwari
Developers Pvt. Ltd. of Rs. 10,00,000/- which are outstanding since
many years. Moreover out of above advances, Company has not charged
any interest from Radheshwari Developers Pvt. Ltd.
30. The company has received state capital subsidy with reference to
the total investment in an undertaking, thus the government grants are
in the nature of Promoters' contribution as Per AS - 12- "GOVERNMENT
GRANTS" and hence credited to Capital Subsidy Account.
31. Working capital facilities are secured by hypothecation of stock
of raw material, packing material and finished goods, stores and
spares not relating to plant and machinery (consumable stores &
spares) bills, receivables and book debts and all other movable both
present and future. These are further secured by personal guarantee of
the Managing Director and Whole Time Director of the Company.
32. Company has credited a sum of Rs. 35830.00/-.( P.Y Rs 22630.00 /)-
under the head "Receipt from Government Authority pending for
reconciliation" which is received against sale to government
authorities (given under the head- Advance Received from Customer) but
the same amount is still pending from earlier year for allocation &
reconciliation for want of their information.
33. Disclosure in accordance with the Accounting Standard- (AS-18)
"Related Party Disclosure" issued by the Institute of Chartered
Accountants of India and notified under the Companies Accounting
Standards Rules, 2006 the name of the related parties and the relevant
disclosure is as under:
a) Name of the related party and description of relationship.
i) Key Management personnel
1) Mr. Sanjay Sethi , Managing Director
2) Mr. Ashish Baraskar , CFO
3) Mrs. Neha Sharma , CS
ii) Companies / Entities under the control of key management personnel
1) M/s Beryl Securities Ltd.
iii) Relative of director
1) Sangita Sethi
2) Soniya Sethi
The following transactions were carried out with the related parties
in the ordinary course of business.
34. The Company has not given any advance (s) in the nature of loan to
any party as defined in clause 32 of the listing agreement. As per the
company policy interest free loan given to employees are not
considered under this clause. Loan and Advance in the nature of loans
to associates/employees disclosure pursuant to Clause 32 of the
listing agreement is as under :
35. Balance of all Debtors/ Creditors/ lenders and borrowers are
subject to confirmation.
36. The company has appointed women director with effect from
1/10/2014 as Per Section 149(1) of the Companies Act 2013.
37. Provision for current Income tax has been made in accordance with
the provision of Income tax act and has been shown net off payment of
advance tax Rs. 3.75 Lacs and TDS Rs. 176820/- made during the year.
38. In the opinion of management all current asset, loans and advances
have value of realization atleast equal to the extent considered good
and stated in the balance sheet.
39. Sitting fees has been waived by all the director's of the company.
40. Prior period items includes Rs.350803 on account of coal purchase
as prior period expense .
41. Company has made the investment amounting to Rs.67.84 lacs (P.Y.
Rs.67.84 lacs) in Beryl Securities Ltd., a Company under the same
management.
42. The Books of Account is showing CST Payable Amounting to Rs.
217283.94/- because Government sale of Second and Third Quarter has
not been posted in return & the company is also facing problem in
revising the same.
43. Company has discontinued the trading division in during the year
whose shareholder approval is awaited.
44. Pursuant to companies act 2013 (the Act) becoming effective from
1st April 2014, The company has reworked depreciation with reference
to the estimated useful life's of fixed Assets prescribed under
schedule II to the Act. As a result the charge for depreciation is
higher by Rs. 1966394.20/- for the year ended 31st march 2015.pursuant
to the transitional provision prescribed in schedule II to the
companies act 2013, The company has fully depreciated the carrying
value of assets net of residual value where the remaining useful life
of the assets was determined to be NIL as on 1st April 2014 and has
adjusted an amount of Rs. 93750.42/- against the opening surplus
balance in the Statement of Profit & Loss under Reserve & Surplus.
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