NOTE TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 1. GENERAL INFORMATION: Welspun Investments and Commercials Limited ("the Company") was incorporated on 07 October 2008 under the Companies Act, 1956 (the 'Act') and has its registered office at Welspun City, Village: Versamedi, Taluka: Anjar, Dist. - Kutch, Gujarat 370110. The Company is engaged in business of Investment and dealing in shares and securities and trading of textile products and commodities. 2. SIGNIFICANT ACCOUNTING POLICIES: (a) Accounting convention: The financial statements are brpared on the basis of historical cost convention, and on the accounting principle of a going concern. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. The financial statements have been brpared in compliance with all material aspects of the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. (b) Use of estimates: The brparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for the year. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates are recognized in the period in which such revision are made. (c) Investments: i. Long term investments are valued at cost less provision, if any for diminution in value, which is other than temporary. ii. Current investments are carried at the lower of the cost and fair value. (d) Revenue recognition: i. Revenue in respect of sale of goods is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer. ii. Dividend income is accounted for when the right to receive dividend is established. iii. Interest income is accounted for on time basis and when the realisation of amount is certain. (e) Accounting for taxes on income: i. Provision for income tax is made on the basis of the estimated taxable income for the accounting year in accordance with the Income-tax Act, 1961. ii. The deferred tax for timing differences between the book and tax profits for the year are accounted based on tax rates in force and tax laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences, are recognized to the extent there is reasonable or virtual certainty as may be applicable that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. (f) Provisions and contingent liabilities: The Company recognises a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a brsent obligation but the likelihood of outflow of resources is remote, no provision or disclosure is made. (g) Transaction in foreign currencies: Foreign currency transactions are recorded at the exchange rates brvailing on the date of such transactions. Monetary assets and liabilities as at the balance sheet date are translated at the rates of exchange brvailing at the date of the balance sheet. Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognized in the statement of profit and loss. Non-monetary foreign currency items are carried at cost. (h) Impairment of assets: The Company assesses, at each balance sheet date, whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If, at the balance sheet date, there is an indication that a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciated historical cost. (i) Earnings per share: The basic earnings per share (EPS) is computed by dividing the net profit/(loss) after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year available for equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. 3 COMMITMENTS AND CONTINGENT LIABILITIES NOT PROVIDED FOR Guarantee given by the Company to Punjab National Bank for repayment of liabilities of MEP Cotton Limited of Rs 107,023,661 (Previous year: Rs.107,023,661). 4 Based on information received by the Company from its suppliers, amounts due to Micro and Small Enterprises as at 31 March 2015 is Rs Nil (as at 31 March 2014 Rs Nil). 5 In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for debrciation and all known liabilities is adequate and not in excess of the amount reasonably stated. 6 Previous year's figures have been re-grouped / re-classified, wherever necessary to conform to the current year's brsentation. As per our report of even date attached For Suresh Surana & Associates LLP Chartered Accountants (Nirmal Jain) Partner Membership No.: 34709 For and on behalf of the Board of Directors L. T. Hotwani Director DIN-007125 Rajkumar JainDirector DIN-00026544 Gajendra Nahar Chief Financial Officer Company Secretary Priya Pakhre Mumbai; Dated: 14th May, 2015 |
