Ramsons Projects Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2017
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
NOTE NO.-1
SIGNIFICANT ACCOUNTING POLICIES TO AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDING MARCH 31, 2017
(A) SIGNIFICANT ACCOUNTING POLICIES:-
Background
Ramsons Projects Limited (‘the Company’) was incorporated on 22-12-1994 as Ramsons Finlease Ltd. The name of the company was changed from Ramsons Finlease Ltd. to Ramsons Projects Ltd. on 28-10-1997. The company holds a Certificate of Registration (COR) as Non-Banking Financial Institution, without accepting public deposits, registered with the Reserve Bank of India (‘RBI’) under section 451A of the Reserve Bank of India Act, 1934 and is primarily engaged in lending and investment activities.
1. Basis of preparation of Financial Statements
The accompanying financial statements are prepared on an accrual basis under the historical cost convention and in accordance with the applicable mandatory accounting standards and relevant guidance notes issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013.
The Company complies in all material respects, with the prudential norms relating to income recognition, asset classification and provisioning for bad and doubtful debts and other matters, specified in the directions issued by the Reserve Bank of India (RBI) in terms of Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 2007, as applicable to it.
2. Use of Estimates:
In preparing the Company’s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, incomes and expenses, the disclosure of contingent assets and contingent liabilities at the date of the financial statements and notes thereto. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any variations to accounting estimates are recognized prospectively in current and future period.
3. Extraordinary and Exceptional Items:
Extraordinary items are income or expenses that arise from transactions that are clearly distinct from ordinary activities. They are not expected to recur frequently or regularly. The nature and amount of extraordinary items are separately disclosed in Statement of Profit and Loss so that its impact on current profit or loss can be perceived.
However when items of Income and Expenditure from ordinary activities are of such size and nature that their disclosure is relevant to explain the performance of the enterprises for the period, the nature and amount of such items is also separately disclosed in the Profit and Loss account. These items are generally referred as exceptional items.
4. Fixed Assets and Depreciation:
Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
Depreciation on tangible fixed assets is provided on straight line value method over the useful life and considering residual value as prescribed in Schedule II of the Companies Act, 2013.
5. Investments:
Long Term Investments in shares and securities are stated at carrying costs. A provision for diminution in the value of Long Term investments is made only if such a decline is other than temporary, in the opinion of the management.
6. Inventory:
The company is not having any inventory as on the date of the Balance Sheet.
7. Foreign Exchange Transactions
a. Initial Recognition
Foreign currency transaction 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.
b. 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.
c. Exchange Differences
Exchange differences arising on the 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 previous financial statement, are recognized as income or as expenses in the year in which they arise.
8. Borrowing Costs:
Borrowing costs attributable to the acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue/deferred revenue expenses as considered appropriately by the management.
9. Retirement Benefits:
Provisions of the Payment of Gratuity Act, 1972 and the Employees State Insurance Act, 1948 and Employees Provident Fund and Miscellaneous Provisions Act, 1952 are not applicable to the Company.
10. Earnings Per Share:
Basic Earnings Per Share is calculated by dividing the net profit/(loss) for the period attributable to equity share holders by the weighted average number of equity share outstanding during the period.
Diluted Earnings per Share is calculated by dividing the net profit/(loss) attributable to equity shareholders by the weighted average number of equity shares outstanding during the period (adjusted for the effects of dilutive options).
11. Taxation:
Tax expense for the year, comprising current tax, income tax earlier years, MAT and deferred tax are included in determining the net profit/ (loss) for the year.
Deferred tax assets are recognized for all deductible timing differences and carried forward to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Deferred tax asset to the extent it pertains to unabsorbed losses / depreciation as per Income tax Act, 1961, is recognized only to the extent that there is virtual certainty of realization based on expected profitability in the future as estimated by the Company.
At each balance sheet date, recognized and unrecognized deferred tax assets are reviewed.
Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date.
12. Segment Reporting
a. Identification of segment
The company’s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the company operate.
b. Inter-segment Transfers
The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.
c. Allocation of common costs
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.
d. Unallocated items
Unallocated items include general corporate income and expense items which are not allocated to any business segment.
e. Segment accounting policies
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.
13. Contingent Liabilities:
The Company makes a provision when there is present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.
A disclosure is made for a contingent liability when there is a:
- Possible obligation, the existence of which will be confirmed by the occurrence / non occurrence of one or more uncertain events, not fully within the control of the company;
- Present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
- Present obligation, where a reliable estimate cannot be made.
Contingent gains are not recognized.
NOTE NO.-19- OTHER DISCLOSURES
(1) Previous year figures have been re-grouped, re-arranged and reclassified wherever considered necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year.
(2) During the year the company has transferred Rs. 6,00,000/- to Bad debt a/c.
(3) Auditors Remuneration:
S. No. Particulars Year
Ended
31.03.2017 Year
Ended
31.03.2016
1 Audit Fess 50,000 50,000
2 In Other Capaicity Nil Nil
3 Service Tax 7,500 7,250
57,500 57,250
(4) In the opinion of the Board of Directors, any of the assets other than Fixed Asset and Non-current Investments have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet.
(5) Details of Specified bank notes (SBN) held and transacted during the period from 08th November, 2016 to 30th December, 2016 is provided hereunder:
Particulars Specified Bank Notes Other Denominated Notes Total
Closing cash in hand as on 08-11-2016 100,000 58,361 158,361
Add: Permitted receipts - 50,000 50,000
Less: Permitted payments - 10,000 10,000
Less: Amount deposited in bank 100,000 - 100,000
Closing cash in hand as on
30-12-2016 - 98,361 98,361
(6) Earnings Per Share (EPS):
Particulars Current
Year Previous
Year
a) Net profit/(loss) after tax available for equity shareholders (Rs.) 13,06,603 (1,60,775)
b) Weighted average number of Equity Shares of Rs.10/- each outstanding during the year (No. of Shares) 3,006,500 3,006,500
c) Basic Earnings per share (Rs.) 0.43 (0.05)
(7) The Company has not received information from vendors regarding their status under “The Micro Small and Medium Enterprises Development Act, 2006” and hence disclosure related to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.
(8) There are no litigation pending against the company.
(9) During the year, there are no foreign exchange inflow and outflow.
(10) Related Party Disclosure (as identified by the management):
Related Parties are classified under following Categories as:
a) Holdings/Subsidiaries:
There is no holding/subsidiary as on 31.03.2017.
b) Associates:
There is no associate as on 31.03.2017.
c) Individuals having control or significant influence over the company:
Mr. Sunil Sachdeva
d) Key Management Personnel & their relatives:
Name Designation
Mr.Sunil Sachdeva Chairman cum Managing Director
Mr. Yogesh Sachdeva Director
e) Enterprises in which Key Management Personnel or Individual having control or significant influence over the company have significant influence:
Savitri Overseas
SAS Servizio Pvt. Ltd.
S.A.S. Infotech Pvt. Ltd.
S V Corporation Pvt. Ltd.
Sumel Projects Pvt. Ltd.
Ramsons Organics Ltd.
Summary of significant related partied transactions carried out in ordinary course of business are as under: (Amt. in `)
Categories
a b c d e Total Total
Previous Year
Purchase of Shares
SV Corporation Pvt Ltd - - 30,00,000
Security Deposit received (refund)
Sunil Sachdeva - - 2,00,000
Sunil Sachdeva - - (2,00,000)
Loan received/ (Repaid)
Sunil Sachdeva 2,00,000 2,00,000
Sunil Sachdeva (2,00,000) (2,00,000)
Reimbursement of Expenses
SAS Infotech Private Limited 7,422 7,422 -
Sale of Shares
Sunil Sachdeva - - 1,59,95,880
Purchase of Machines
Ramsons Organics Ltd - - 72,097
Sale of Goods
Ramsons Organics Ltd 9,89,177 9,89,177 64,800
Savitri Overseas 1,93,876 1,93,876 66,824
Purchase of Goods
Savitri Overseas 2,87,005 2,87,005 -
Related party balances outstanding as on 31-03-2017 Amount in `
(a) Deferred tax has been provided in accordance with Accounting Standard-22 Accounting for taxes income issued by the Institute of Chartered Accountants of India.
(b) The break-up of net deferred asset/ liability as at 31st March 2017 is as under:
DEFERRED TAX AMOUNT OF
TIME DIFFERENCE 31-03-2017 AMOUNT OF
TIME DIFFERENCE 31-03-2016
DTL DTA
TEMPORARY DIFF. - - 49,967 15,440
TOTAL - 15,440
REMARKS:
Considering the non-certainity of profits in future, the deferred tax asset has been considered as NIL.