Abee Info-Consumables Ltd. कंपली की लेखा नीति

Mar 31, 2012

The financial statements have been prepared on an accrual basis under the historical cost convention in accordance with the accounting principles generally accepted in India and materially comply with the mandatory Accounting Standards notified by the Central Government of India under The Companies (Accounting Standards) Rules, 2006 (as amended), and by the Institute of Chartered Accountants of India and with the relevant provisions of the Companies Act,1956.

The revised Schedule VI notified under the Companies Act, 1956, for preparation and presentation of financial statements has become applicable to the Company for the year ended March 31, 2012. The adoption of revised Schedule VI does not impact the recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on the presentation and disclosure of the financial statements. The Company has also reclassified the prior year figures in accordance with the requirements applicable for the current year.

a) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except retirement benefits those with significant uncertainties.

b) Inventories: Inventories include raw materials and finished goods. Raw Material has been valued on FIFO basis and Finished Goods are valued at cost or market price whichever is less. There is no change in system of valuation.

c) i) Tangible Fixed Assets & Depreciation: Fixed assets are stated at original cost less depreciation. Cost includes inward freight and expenses incidental to acquisition and installation. Depreciation on fixed assets is provided on Straight Line method at the rate specified in the schedule XIV to the Companies Act, 1956.

ii) Intangible Asset and Amortization: The Company amortizes the Brand @10%. Its useful life and probability of flow of future economic benefits cannot be ascertained.

d) Revenue Recognition: Sales are recognized, net of returns, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales exclude sales tax and value added tax.

e) The company has an online ERP system for recording all transactions in relation to purchase, sale, inventory, production and other accounting transactions. The same system is optimum in terms of its efficiency and effectiveness.

f) Investments: Long-term investments are carried at cost less any other than temporary diminution in value determined separately foreach individual investment.

g) Employee Benefits: Defined Contribution Plan: Employee benefits in the form of contribution to Super Provident Fund managed by Government Authorities, Employees State Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan and the same is charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

Defined Benefit Plan: Retirement benefits in the form of Gratuity, Post retirement medical benefit and Death & disability benefit are considered as defined benefit obligations and are not provided for.

The Deferred Tax Assets has not been recognized; since there is accumulated depreciation loss and there is not virtual certainty that there will be future taxable income as required by Accounting Standard-22.

The deferred tax liability has been calculated applying income tax rate of 30.90%.

The company is enjoying income tax holidays under section 80IC of the Income Tax Act. The time differences originating in the tax holiday period and reversing in the tax holiday period are not provided for in terms of accounting standard interpretation note on AS-22.

h) Segment Reporting! Accounting Standard 17):

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

i) Impairment:

In accordance with Accounting Standard 28 - "Impairment of Assets", the carrying amounts of the Company's assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment.

j) Provisions and Contingencies:

Provision is recognized in the Balance Sheet when the Company has a present obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made. A disclosure by way of a contingent liability is made when there is a possible obligation or a present obligation that may require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

As per the Certificate issued by the Management following are the cases under dispute and hence contingent in nature:

1. Company has received stay order on basic excise demand Rs.6,995,384/- and penalty Rs. 3,103,965/- vide order No. S/151- 152/2007/C-l dated 06.03.2007 of the Customs Excise and Service Tax Appellate Tribunal West Zonal Bench at Mumbai.

2. There is an outstanding demand of Income Tax Arrears of the A.Y. 1998-99 Rs. 147,142.00/-and A. Y. 2004-05 Rs. 49,255/-

3. Interest Provision on Rupee Bank CC & Term Loan account & Mahesh Bank Term Loan account has not made as the statement has not available.

4. Company has not made regular payment of Provident Fund, ESIC, Profession Tax and other statutory liabilities. We cannot comment on what would be contingent liability in future as it is not ascertainable.

5. Liabilities for TDS (given below) were reversed during the year to respective parties account and subsequently written off in the books of accounts, hence any contingent liability cannot be ascertained.

(Above figures does not include interest, penalty on arrears thereon, which will be ascertained at the time of payment.)

k) Sundry Debtors for more than 6 months are Rs. 48,717,144.60 and less than 6 months are Rs. 437,497.95.

l) Related Party Disclosure as per Accounting Standard 18:

List of Related Parties

1. Vyaas Technologies Pvt. Ltd.

2. Abbee Consumables & Peripherals S shope Ltd.

3. Gloima Imaging Technologies Pvt. Ltd.

During the year, company has done transaction with related parties. Outstanding balances as on 31.3.2012 are Rs. 41,051,838.00. Out of this, Vyaas Technologies Rs. 1,604,947.00, Mr. B.B. Somani Rs. 36,477,394.00 Mrs. Priya B. Somani Rs. 2,657,637.00, Mrs. R. A. Joglekar Rs. 311,860.00. These parties are not paying any interest on outstanding amount. Not a single party has paid interest and principal during this year. Company has also sold goods to M/s. Abbee Consumables and Peripherals Sshoppe Ltd. amounts to Rs. 204,022.00 in which Directors Mr. B.B. Somani and Mrs. P.B. Somani are interested. Company has given advance to Vyaas Technologies Rs.2,000.00 as advance against services.

m) Miscellaneous Expenditure:

Preliminary expenses are amortized in equal installment over a period often years. Authorized capital expenditure consisting of advertisement expenses is written off over a period often years in equal annual installment. However such amortization over the period of 10 years is not in conformity of provisions of Accounting Standard -26 "Intangible Asset" as issued by the ICAI. Such expenditure is to be charged to profit and loss account as per the said Accounting Standard.

n) As per the provisions of the Section 383A of the Companies Act, 1956, company is required to appoint a whole time Company Secretary. The Company has appointed a whole time Company Secretary.

o) Company's scrip has been suspended by BSE since 31.12.2007, due to non - compliances of the Listing Agreement. As per explanation given by the Company, company has following up with concern authorities for revocation of suspension.

p) The Company has not made any provision for retirement benefits including liabilities under the Payment of Gratuity Act, 1972.

q) Debtors, loans and advances, current liabilities and balances in other personal accounts as at the year-end are subject to Remuneration to directors is the minimum remuneration u/s 349 of the Companies Act and no remuneration is provided to Mr. B. B. Somani.

r)There is payment of excess interest Rs. 218,631.00/- to Rupee Bank in the Financial Year 1997-1998. The matter is still pending in the court.

s) Under the Micro, Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. As no relevant information is available from the suppliers about their coverage under the Act, no disclosures have been made in the Accounts.

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Mar 31, 2011

A) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except retirement benefits those with significant uncertainties.

b) Sundry Debtors for more than 6 months are Rs. 49,728,296.00 and less than 6 months are Rs. 178,636.49.

c) Miscellaneous Expenditure:

Preliminary expenses are amortized in equal installment over a period of ten years. Authorized capital expenditure consisting of advertisement expenses is written off over a period of ten years in equal annual installment. However such amortization over the period of 10 years is not in conformity of provisions of Accounting Standard -26 "Intangible Asset" as issued by the ICAI. Such expenditure is to be charged to profit and loss account as per the said Accounting Standard.

d) Fixed Assets:

i) Fixed assets are stated at original cost less depreciation. Cost includes inward freight and expenses incidental to acquisition and installation.

ii) Depreciation on fixed assets is provided on Straight Line method at the rate specified in the schedule XIV to the Companies Act, 1956.

iii) Intangible Asset: The Company amortises the Brand @10%. Its useful life and probability of flow of future economic benefits cannot be ascertained.

e) Impairment:

In accordance with Accounting Standard 28 - "Impairment of Assets", the carrying amounts of the Company's assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment.

f) Investments:

Long - term investments are carried at cost less any other than temporary diminution in value determined separately for each individual investment.

g) Inventories:

Inventories include raw materials and finished goods. Raw Material has been valued on FIFO basis and Finished Goods are valued at cost or market price whichever is less. There is no change in system of valuation.

h) Provisions and contingencies:

Provision is recognised in the Balance Sheet when the Company has a present obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made. A disclosure by way of a contingent liability is made when there is a possible obligation or a present obligation that may require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

i) Related Party Disclosure as per Accounting Standard 18:

List of Related Parties

1. Vyaas Technologies Pvt. Ltd.

2. Abbee Consumables & Peripherals Sshope Ltd.

3. Gloima Imaging Technologies Pvt. Ltd.

During the year, company has granted loans to related parties. Outstanding balances as on 31.3.2011 are Rs. 41,049,557.78. Out of this, Vyaas Technologies Rs. 1,602,666.78, Mr. B. B. Somani Rs. 36,477,394.00 Mrs. Priya B. Somani Rs. 2,657,637.00, Mrs. R. A. Joglekar Rs. 311,860.00. These parties are not paying any interest on outstanding amount. Not a single party has paid interest and principal during this year. Company has also sold goods to M/s Abbee Consumables and Peripherals Sshoppe Ltd. amounts to Rs. 954,022.00 in which Directors Mr. B.B.Somani and Mrs. PB.Somani are interested.

j) As per the provisions of the Section 383Aof the Companies Act, 1956, company is required to appoint a whole time Company Secretary. The Company has appointed a whole time Company Secretary.

k) Company's scrip has been suspended by BSE since 31.12.2007, due to non - compliances of the Listing Agreement. As per explanation given by the Company, company has following up with concern authorities for revocation of suspension.

I) Consequent on the application of Accounting Standard 22 "Accounting for Taxes on Income"

The Deferred Tax Assets has not been recognized; since there is accumulated depreciation loss and there is not virtual certainty that there will be future taxable income as required by Accounting Standard-22.

The deferred tax liability has been calculated applying income tax rate of 30.90%.

The company is enjoying income tax holidays under section 80IC of the Income Tax Act. The time differences originating in the tax holiday period and reversing in the tax holiday period are not provided for in terms of accounting standard interpretation note on AS-22.

m) Segment information as per Accounting Standard 17: Sheet Attached.

n) The Company has not made any provision for retirement benefits including liabilities under the Payment of Gratuity Act, 1972.

o) Debtors, loans and advances, current liabilities and balances in other personal accounts as at the year-end are subject to confirmation and reconciliation.

s) Employee Benefits:

Defined Contribution Plan: Employee benefits in the form of contribution to Super Provident Fund managed by Government Authorities, Employees State Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan and the same is charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

Defined Benefit Plan: Retirement benefits in the form of Gratuity, Post retirement medical benefit and Death & disability benefit are considered as defined benefit obligations and are not provided for.

t) The company has an online ERP for recording all transactions in relation to purchase, sale, inventory, production and other accounting transactions. However, the system is not optimum in terms of its efficiency and effectiveness.

u) Contingent Liability:

As per the Certificate issued by the Management following are the cases under dispute and hence contingent in nature:

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Mar 31, 2010

A) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except retirement benefits those with significant uncertainties.

b) Sundry Debtors for more than 6 months are Rs.47,13,640.73/-and less than 6 months are Rs. 4,54,85,741.10/-

c) Miscellaneous Expenditure:

Preliminary expenses are amortized in equal installment over a period of ten years. Authorized capital expenditure consisting of advertisement expenses is written off over a period of ten years in equal annual installment. However such amortization over the period of 10 years is not in conformity of provisions of Accounting Standard -26 "Intangible Asset" as issued by the ICAI. Such expenditure is to be charged to profit and loss account as per the said Accounting Standard.

d) Fixed Assets:

i) Fixed assets are stated at original cost less depreciation. Cost includes inward freight and expenses incidental to acquisition and installation.

ii) Depreciation on fixed assets is provided on Straight Line method at the rate specified in the schedule XIV to the Companies Act, 1956.

iii) Intangible Asset: The Company amortises the Brand @10%. Its useful life and probability of flow of future economic benefits cannot be ascertained.

e) Impairment:

In accordance with Accounting Standard 28 - "Impairment of Assets", the carrying amounts of the Companys assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment.

f) Investments:

Long - term investments are carried at cost less any other than temporary diminution in value determined separately for each individual investment.

g) Inventories:

Inventories include raw materials and finished goods. Raw Material has been valued on FIFO basis and Finished Goods are valued at cost or market price whichever is less. There is no change in system of valuation.

h) Provisions and contingencies:

Provision is recognised in the Balance Sheet when the Company has a present obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made. A disclosure by way of a contingent liability is made when there is a possible obligation or a present obligation that may require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

i) Related Party Disclosure as per Accounting Standard 18:

During the year, company has granted loans to other parties. Outstanding balances as on 31.3.2010 are Rs. 4,02,56,826.16/-. Out of this, Vyaas Technologies Rs. 16,00,666.78/-, Mr. B. B. Somani - Rs. 3,64,57,394/-, Mrs. Priya B. Somani - Rs. 20,16,705.38/-, Mrs. R. A. Joglekar Rs.1,82,060.00/-. These parties are not paying any interest on outstanding amount. Not a single party has paid interest and principal during this year. Company has also sold goods to M/s Abbee Consumables and Peripherals Sshoppe Ltd. amounts to Rs.19,51,962/- in which Directors Mr.B.B.Somani and Mrs.P.B.Somani are interested.

j) As per the provisions of the Section 383A of the Companies Act, 1956, company is required to appoint a whole time Company Secretary. However, the Company has appointed a whole time Company Secretary on 1 st February 2010.

k) Companys scrip has been suspended by BSE since 31.12.2007, due to non - compliances of the Listing Agreement. As per explanation given by the Company, company has made submission on 18.08.2010. Till the date of this report, suspension has not been restored by BSE.

The Deferred Tax Assets has not been recognized; since there is accumulated depreciation loss and there is not virtual certainty that there will be future taxable income as required by Accounting Standard-22.

The deferred tax liability has been calculated applying income tax rate of 30.90%

The company is enjoying income tax holidays under section 80IC of the Income Tax Act. The time differences originating in the tax holiday period and reversing in the tax holiday period are not provided for in terms of accounting standard interpretation note on AS-22.

m) Segment information as per Accounting Standard 17: Sheet Attached.

n) The Company has not made any provision for retirement benefits including liabilities under the Payment of Gratuity Act, 1972.

o) Debtors, loans and advances, current liabilities and balances in other personal accounts as at the year-end are subject to confirmation and reconciliation.

r) Managerial remuneration to Managing Director/ Full time director:

Current Year Previous Year

Salaries 360000.00 240000.00

Remuneration to directors is the minimum remuneration u/s 349 of the Companies Act and no remuneration is provided to Mr. B.B.Somani & Mrs. Priya B. Somani

s) Employee Benefits:

Defined Contribution Plan: Employee benefits in the form of contribution to Super Provident Fund managed by Government Authorities, Employees State Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan and the same is charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

Defined Benefit Plan: Retirement benefits in the form of Gratuity, Post retirement medical benefit and Death & disability benefit are considered as defined benefit obligations and are not provided for.

t) The company has an online ERP for recording all transactions in relation to purchase, sale, inventory, production and other accounting transactions. However, the system is not optimum in terms of its efficiency and effectiveness.

u) Contingent Liability:

As per the Certificate issued by the Management following are the cases under dispute and hence contingent in nature:

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Mar 31, 2009

1. Accounting Policies

a) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except retirement benefits those with significant uncertainties.

b) Sundry Debtors for more than 180 days are Rs.15,459,800.60 and less than 6 months are Rs.8,02,909.89.

c) Miscellaneous Expenditure:

Preliminary expenses are amortized in equal installment over a period of 10 years. Authorized capital expenditure consisting of advertisement expenses is written off over a period of 10 years in equal annual installment. However such amortization over the period of 10 years is not in conformity of provisions of Accounting Standard -26 "Intangible Asset" as issued by the ICAI. Such expenditure is to be charged to profit and loss account as per the said Accounting Standard.

d) Fixed Assets:

i) Fixed assets are stated at original cost less depreciation. Cost includes inward freight and expenses incidental to acquisition and installation.

ii) Depreciation on fixed assets is provided on Straight Line method at the rate specified in the schedule XIV to the Companies Act, 1956.

iii) Intangible Asset: This year Company has amortized the Brand @10%. Its useful life and probability of flow of future economic benefits cannot be ascertained.

e) Impairment:

In accordance with Accounting Standard 28-"Impairment of Assets", the carrying amounts of the Companys assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment.

f) Investments:

Long - Term Investments are carried at cost less any other than temporary diminution in value determined separately for each individual investment. As per Accounting Standard 13, " Accounting for Investments" and on the basis of certificate issued by the management, the investments of Rs.3,66,87,000/- in Abee Soft Technologies Ltd. is not having any market value and the same is written off during the current year.

g) Inventories:

Inventories include raw materials and finished goods. Raw material has been valued on FIFO basis and Finished Goods are valued at cost or market price whichever is less. There is no change in system of valuation.

h) Provision and contingencies:

Provision is recognised in the balance sheet when the company has a present obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation cab be made. A disclosure by way of a contingent liability is made when there is a possible obligation of a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

i) Related Party Disclosure As per Accounting Standard 18:

During the year company has granted unsecured loans to other parties. Outstanding balances as on 31.3.2009 are Rs. 6,33,21,774/-. Out of this Loan to Abeesoft Technologies Ltd. is Rs. 96,24,408/- in which Directors Mr.B.B.Somani and Mrs.P.B.Somani are interested. Loans to Vyas Technologies Rs.15,72,827/-, Mr.B.B.Somani - Rs.3,65,66,894/-, Mrs. Priya B. Somani - Rs.17,66,705/-, Mrs. R. A. Joglekar- Rs.1,84,217/-. These parties are not paying any interest on outstanding amount. Not a single party has paid interest and principal during this year. Company has also sold goods to M/s. Abbee Consumables and Peripherals Sshope Ltd. amounts to Rs.12,52,622/-in which Directors Mr. B. B. Somani and Mrs. P. B.Somani are interested.

j) As per the provisions of the Section 383A of The Companies Act, 1956, company is required to appoint a whole time Company Secretary, however, the Company has not appointed a whole time Company Secretary.

k) Companies scrip has been suspended by BSE since 31.12.2007, due to non compliances of the Listing Agreement. As per explanation given by the Company, company has made submission on 25.01.2008. Till the date of this report, suspension has not been restored by BSE.

The Deferred Tax Assets has not been recognized; since there is accumulated depreciation loss and there is not virtual certainty that there will be future taxable income as required by Accounting Standard-22.

The deferred tax liability has been calculated applying income tax rate of 30.90 %

The company is enjoying income tax holidays under section 80IC of the Income Tax Act. The time differences originating in the tax holiday period and reversing in the tax holiday period are not provided for in terms of accounting standard interpretation note on As-22.

l) The Company has not made any provision for retirement benefits including liabilities under the Payment of Gratuity Act, 1972.

m) Debtors, loans and advances, current liabilities and balances in other personal accounts as at the year-end are subject to confirmation and reconciliation.

Remuneration to the directors is the minimum remuneration u/s 349 of the Companies Act and no remuneration is provided to Mr. B. B. Somani and Mrs. Priya B. Somani.

n) Employee Benefits:

Defined Contribution Plan : Employee benefits in the form of contribution to Super Provident Fund managed by Government Authorities, Employees State Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan and the same is charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

Defined Benefit Plan : Retirement benefits in the form of Gratuity, Post retirement medical benefit and Death & Disability benefit are considered as defined benefit obligations and are not provided for.

t) The company has on line ERP for recording all transactions in relation to purchase, sale, inventory, production and other accounting transactions. However, the system is not optimum in terms of its efficiency and effectiveness.

o) Contingent Liability:

As per the Certificate issued by the Management following are the cases under dispute and hence contingent in nature: