Note 26 | Other Notes | | |
1 | In the opinion of the Board, all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. |
2 | Value of Imports (Including In-Transit) Calculated on C.I.F. basis in respect of - | | |
| i) Materials | Nil | Nil |
| ii) Stores and spare parts | Nil | Nil |
| iii) Capital Goods | Nil | Nil |
2 | Expenditure in Foreign Currency on Account of: | | |
| Foreign travel | 75,933 | 49,776 |
3 | Related Party Disclosures | | |
| 1. Relationships : | | |
| (a) Same Management | | |
| ECS Infotech P.Ltd | | |
| ECS Environment Limited | | |
| V M Infosystem | | |
| Mandora Finserve Pvt Ltd | | |
| Mandora Securities Pvt Ltd | | |
ECS BIZTECH PRIVATE LIMITED | | |
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NOTES FORMING PART OF FINANCIAL STATEMENT AS AT 31 ST MARCH, 2013 | | |
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Note | Particulars | As at 31 March 2013 | As at 31 March 2012 |
| (c) Key Management Personnel : | | |
| Shri Vijay Mandora | | |
| Shri Prabhakar Reddy Kasu | | |
| Smt. Seema Mandora | | |
| Shri K R Jayram | | |
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| 2. Transactions Carried out with Related Parties Referred in 1 above, in Ordinary Course of Business: | | |
| Nature of Transactions Related Parties | | |
| Purchases | | |
| Purchase of services | 54,35,780 | NIL |
| Purchase of Goods | 4,04,09,488 | 73,29,724 |
| Sales | | |
| Goods, Materials and Services | 1,55,663 | 2,66,92,983 |
| Expenses | | |
| Directors Remuneration | 74,92,400 | 48,27,250 |
4 | According to the information available with the Company, there are no amounts as at 31st March, 2013, due to suppliers who constitute a “Micro, Small and Medium Enterprises” as per MSMED Act, 2006. |
5 | Contingent Liabilities and Commitments (To the extent not provided for) | | |
| (i) Contingent Liabilities | | |
| a) Counter Guarantee given to Bank for LC outstanding | 7,28,20,866 | 6,93,99,406 |
| b) Guarantees | 90,000 | 90,000 |
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| | 7,29,10,866 | 6,94,89,406 |
| (ii) Commitments | | |
| Estimated amount of contracts remaining to be executed on capital account and not provided for | Nil | 4,63,45,247 |
| Total Contingent Liabilities | NIl | 11,58,34,653 |
6 | Building includes cost of Land of Rs.72,27,562 (Previous Year 60,95,000)., Debrciation thereon is not charged. |
7 | The financial statements for the year ended 31st March, 2013 had been brpared as per the then applicable, br- revised Schedule VI to the Companies Act,1956. Consequent to the notification under the Companies Act,1956, the financial statements for the year ended 31st March, 2013 are brpared under revised Schedule VI. Accordingly, the brvious year figures have also been reclassified to conform to this year’s classification. |
8 | Significant Accounting Policies: | |
| Nature of Operations: | | |
| ECS Biztech Private Limited (hereinafter referred to as “EBPL” or “the Company”) is a Company formed and registered under the Companies Act, 1956, on 29th November, 2010, by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. The name of the Company has been changed from SAC INFOSYSTEM PRIVATE LIMITED to ECS BIZTECH PRIVATE LIMITED consequent upon isuue of fresh Certificate of change of name on dated 08/12/2011. The Company has procured and sold IT products including Computers and computer peripherals. In addition to that the company has rendered IT related services during the year. |
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| Significant Accounting Policies: | | |
1) | Basis of Preparation of Financial Statements:- | | |
| The financial statements have been brpared to comply in all material respects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The financial statements have been brpared under the historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards brscribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. |
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2) | Use of Estimates:- | | |
| The brparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. |
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3) | Revenue Recognition:- | | |
| Revenue is recognised on accrual basis as per the details as under; |
| Sales of products and services are recognized when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided. |
| Dividend income is recognized when the right to receive dividend is established. |
| Interest income is recognized on the time proportion method. | |
| The Expenses are recognized when incurred. However, LC discounting charges are recognized on cash basis. |
| Other Income excepting as stated above is recognised on accrual basis when risk and rewards of such income are passed on to the customers |
| Transaction of Sales and Purchase with related parties are taken place on arms length basis. |
| No transaction have been taken place with Small and Medium Enterprise(SME) during the year. |
4) | Inventories:- | | |
| Inventories are stated at lower of cost and net realizable value, as certified by the management. |
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5) | Fixed Assets:- | | |
| Fixed assets are stated at the cost of acquisition less accumulated debrciation and impairment losses, if any. Cost of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. Borrowing costs related to the acquisition or construction of the qualifying assets for the period up to the completion of their acquisition or construction is capitalized. |
| Capital Work-in-progress of brvious year have been transferred to respective Fixed Assets during the year. The same have been capitalized at cost of purchase, duties, leview and other directly attributable cost. There is no any Capital Work-in-progress outstanding during the year. |
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6) | Debrciation/Amortization:- | | |
| Debrciation on assets is provided on the Straight Line method at the rates and in the manner brscribed in Schedule XIV to the Companies Act, 1956, which management considers as being rebrsentative of useful economic lives of such assets. There has been a change in accounting policy for providing debrciation in earlier years from WDV to SLM method. The debrciation has been recalculated from the date of assets put to use, and surplus therefrom has been taken to Statement of Profit and Loss Account. |
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7) | Investments:- | | |
| Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. 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. |
7(A) | Margin Money deposit with Banks are subject to confirmation |
7(B) | Bank Balance includes cheques issued but not brsented and cheque received but not deposited. The same have been verified as per the reconciliation provided to us. |
8) | Provision, Contingent Liabilities and Contingent Assets:- |
| Provisions comprise liabilities of uncertain timing or amount. Provisions are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. |
| Contingent liabilities are disclosed by way of Notes to Accounts. | |
| Contingent assets are not recognized in the financial statements. |
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9) | Taxation:- | | |
| Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. |
| Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. |
| There is no disputed or undisputed statutory liability outstanding during the year. |
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10) | Segment reporting:- | | |
| Identification of segments: | | |
| The Company’s operating businesses are organized and managed according to the nature of products and brdominant source of the risk for the Company is business product, therefore business segment has been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates. The Company has operated only in Gujarat and Maharastra during the year and Sales of Maharashtra is Rs.147,85,06,517/- and balance sales of Rs.197,48,64,921/- have been generated from Gujarat. |
| Segment policies: | | |
| The Company brpares its segment information in conformity with the accounting policies adopted for brparing and brsenting the financial statements of the Company as a whole. |
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11) | Earning per share:- | | |
| Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting brference dividends and attributable taxes by the weighted average number of equity shares outstanding during the period. |
| For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any. |
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12) | Intangibles:- | | |
| Costs incurred on acquisition of intangible assets are capitalized and amortized on a straight-line basis over their technically assessed useful lives, as mentioned below: |
| Intangible assets : Estimated Useful Lives (Years) | |
| IT Software : 5 | |
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13) | Impairment:- | | |
| The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets’ net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, debrciation is provided on the revised carrying amount of the assets over its remaining useful lives. |
| A brviously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have brvailed by charging usual debrciation if there was no impairment. |
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14) | Borrowing costs:- | | |
| Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. |
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15) | Leases:- | | |
| Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as Operating Leases. Operating Lease payments are recognized as an expense in the Profit & Loss Account on a straight line basis over the lease period.. |
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16) | Employee benefits:- | | |
| Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribution scheme and the payments are charged to the Profit and Loss Account of the year when the payments to the respective funds are due. There are no obligations other than contribution payable to Provident Fund Authorities. |
| Superannuation Fund and Employees’ State Insurance Corporation (ESIC) are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds. |
| Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation at the end of each financial year. |
| Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation at the end of each financial year. |
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17) | Foreign Currency Transactions:- | | |
| 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. |
| Conversion | | |
| Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. |
| Exchange differences | | |
| Exchange differences arising on settlement of monetary items or on reporting Company’s monetary items at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expenses in the year in which they arise. |
| Forward exchange contracts not intended for trading or speculation purposes |
| The brmium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. |
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18) | Other Accounting Policies:- | | |
| These are consistent with the generally accepted accounting practices. | |
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19) | Other Accounting Standards. | | |
| Other accounting standards viz, AS 07 Accounting for Construction Contracts, AS 12 Accounting for Government Grants, AS 14 Accounting for Amalgamations, AS 21 Consolidated Financial Statements, AS 23 Accounting for Investments in Associates in Consolidated Financial Statements, AS 24 Discontinuing Operations, AS 25 Interim Financial Reporting, AS 27 Financial Reporting of Interests in Joint Ventures (to the extent of Requirement relating to Consolidated Financial Statements), AS 28 Impairment of Assets are not applicable to the company. |
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As per our report of even date | | |
For Nitin K. Shah & Co. | | | |
Chartered Accountants | | | |
Firm Reg. No.:107140W | For & on behalf of the Board | |
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(Nitin K Shah) | (Managing Director) (Director) (Company Secretary) |
Proprietor | | |
M. No. 012398 | | |
Ahmedabad, 01st August, 2013 | | Ahmedabad, 01st August, 2013 | |