NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED ON MARCH 31,2015 COMPANY OVERVIEW Silver Oak (India) Limited (the "Company") is a public limited company incorporated and domiciled in India and has register office at Indore. .Its share are listed on Bombay Stock Exchange. The Company is engaged in the manufacturing and selling of Indian made foreign liquor. The Company caters mainly to the domestic market 1. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to the periods brsented in these financial statements 1.1 BASIS OF brPARATION OF FINANCIAL STATEMENTS These financial statements have been brpared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under section 133 of the Companies Act, 2013 ("the Act") read with rule 7 to the Companies (Accounts) Rules, 2014, the provision of the Act ( to the extent notified ) and guidelines issued by the securities and Exchange Board of India (SEBI). The accompanying financial statement have been brpared under the historical cost convention, going concern and on the accrual basis of accounting comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable 1.2 ACCOUNTING ESTIMATES The brparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the brparation of the financial statement are prudent & reasonable, actual results could differ from these estimates. 1.3 FIXED ASSETS Land, Factory Building and Plant & Machinery are stated at re-valued amount less debrciation on cost of acquisition and other fixed assets are stated at cost less accumulated debrciation and impairment losses, if any. Direct costs are capitalized until such assets are ready for use. 1.4 DEbrCIATION Debrciation on fixed assets has been provided on the Straight —lime method over the useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. .Debrciation for assets Purchased / sold during a period is proportionately charged. In the case of re-valued assets, debrciation has been charge on the original cost of asset. 1.5 INVENTORIES Inventories which comprise raw materials , work-in-progress, finished goods, packing materials, stores and spares are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under. • Raw material- cost includes direct expenses and is determined on the basis of weighted average method. • Packing material- cost includes direct expenses and is determined on the basis of weighted average method. • Work in progress —Includes cost of conversion and other costs incurred to bring the inventories in their brsent condition. • Finished goods- cost includes raw material cost other overheads incurred to bring the goods to their brsent location and condition. Cost of finished goods also includes taxes, wherever applicable. 1.6 REVENUE RECOGNITION Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of goods, service, adjusted for discount Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. 1.7 TAXES ON INCOME Tax expenses comprises of Current tax and deferred tax. Current Tax Provision, if any, has been made on the basis of reliefs and deduction available under the Income- Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets can be realised in future. However, where there is unabsorbed debrciation or carry forward losses under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date. 1.8 EMPLOYEE BENEFIT • Short Term Employee Benefits Short term employee benefits are recognized in the period during which the service have been rendered. • Long Term Employee Benefits (a) Provident Fund & Employees state Insurance Scheme : As per the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 all eligible employees of the company are entitled to received benefits under the provident fund & family pension fund which is a defined contribution plan. These contributions are made to the fund administrated and managed by the Government of India. In addition ,some employees of the company are covered under Employees' State Insurance Act, 1948, which are also defined contribution schemes recognized and administrated by Government if India. The Company's contributions to these schemes are recognized as expenses in profit and loss account during the period in which the employee renders the related service. The company has no further obligation under these plans beyond its monthly contribution. (b) Gratuity. The Company has provided for Gratuity in accordance with the AS-15 " Employee Benefits", the company has obtained group Gratuity Insurance Policy from LIC of India and Contribution are made to LIC's Recognized Group Gratuity Fund Scheme based on amount demanded by LIC of India to cover its Gratuity liability and making annual payment of the liability as calculated by them . 1.9. CONSISTENCY These Financial statements have been brpared on basis consistent with brvious years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles. 1.10. IMPAIRMENT OF ASSETS: In accordance with the Accounting Standard (As-28 ) in " Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable . 1.11. SEGMENTAL REPORTING: Being the company having only one line of operation and in accordance with the provision of AS- 17, the company has only one reportable segments consisting of manufacturing business of IMFL business. Hence Segmental reports are not furnished. 1.12. BORROWING COST Borrowing Costs directly attributed to acquisition of fixed assets are capitalized as a part of thecost of assets up to the date asset is put to use. if any Other Borrowing Costs are charged to the profit and loss account in the year in which they incurred. 1.13. PROVISION AND CONTINGENT LIABILITIES • Contingent Liabilities are not recognised and are disclosed in notes. • Provisions involving substantial degree of estimation in measurement are recognized when the brsent obligation resulting from past events gives rise to probability of outflow of resources embodying economic benefits on settlement. 1.14. CASH AND CASHS EQUIVALENTS Cash and cash equivalents comprise cash ,bank balance & fixed deposit with banks, which original maturity period of less than 12 months. Notes forming part of the financial statements 2. CONTINGENT LIABILITIES (a) In the opinion of the Board of Directors, all the known liabilities have been accounted for (b) Contingent liability that may arise due to delayed / non-compliance of certain fiscal statutes amount unascertainable. (c) Contingent Liabilities [ to the extent not provided for ] [a] M.P. Excise matter, under disputes Rs. 12.68 Lac [ Previous Year Rs. 12.68 ] [b] M.P.VAT matter, under disputed Rs. 2.32 Lac [Previous Year Rs. Nil ] (d) The company does not possess information as to which of its suppliers are ancillary industrial undertaking / small scale industrial undertaking holding permanent registration certificate issued by the Directorate of Industries of a State or Union territory, consequently, the liability, if any, of interest which would be payable under. The interest on delayed payments to Small Scale and Ancillary Industrial Undertakings Act, 1992 cannot be ascertained. However, the Company has not received any claims in respect of interest. 3. Balance of Sundry Debtors, Sundry Creditors, Trade Deposit, Loan & Advances and others are subject to confirmation. However, in the opinion of the management theses accounts will fetch the amount as stated in the books of accounts on realisation in the ordinary course of business. 4. Expenditure & Earning in foreign currency Rs. Nil [Previous Year Rs. Nil] 5. Previous year's figures have been regrouped /reclassified wherever necessary to confirm to current year's classification. As per our report of even date attached FOR O.T. GANDHI & COMPANY Chartered Accountants Firm Registration No. 001120C For and on behalf of the Board Sameep Gandhi Partner Membership No. 411107 Bhupendra Singh Whole Time Director Shyam Alawe Director Sunil Khandelwal Chief Financial officer Indore, May 30, 2015 |