Terrygold (India) Ltd. कंपली की लेखा नीति

Mar 31, 2015

A. Method of Preparation of accounts:

Accounts are prepared on historical cost convention, in accordance with the normally accepted accounting principles.

b. Fixed Assets:

Fixed assets are stated at their original cost of acquisition, including taxes, freight and other incidental expenses incurred in connection with the erection / commissioning / construction of the said assets, less accumulated depreciation.

c. Inventories:

Inventories are valued at cost or net realizable, whichever is lower.

2. (a) The Company is a Sick unit and is before the Hon'ble BIFR in Case No.210/2000. The company has reached OTS with both the secured creditors and submitted a viable revival proposal to the Hon'ble BIFR. The IDBI as operating Agency, failed to formulate a rehabilitation package keeping in view the provisions of Section 18 of the SICA Act. The Company had filed Writ Petition before the Hon'ble High Court of AP in April 2015 against the dismissal orders of Hon'ble AAFIR in the Winding up orders of Hon'ble BIFR Bench-1. (b) The Company had replied to the impugned NOTICE issued by ASREC (INDIA) LTD, the other secured creditors on 18.06.2015 u/sl3(2) of the SARFACEI Act 2002 on 20.07.2015 denying all the allegation therein in view of the existing paripasu charges with other secured creditors and have no jurisdiction to issue so.

(e) The Company had received a letter DT 20.05.2015 from M/s TVS Finance and Services Limited, Chennai confirming the withdrawal of all the cases filed by them against the Company and its Directors.

3. Earnings Per Share: The Company has incurred Loss of 91,363/- during the year under review.

4. Deferred taxation:

Even though, the company has unabsorbed depreciation, carry forward of losses and adjustments under section 43 B of Income tax Act, 1961 deferred tax asset as per the Accounting Standard - 22 " Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, has been recognized in the Books of account. In view of the appeal preferred against the order of BIFR as detailed in Note No. 2 and also considering the fact that deferred tax assets are more than the deferred tax liabilities, no provision has been made in respect of deferred tax liability. Taking a more prudent view deferred tax assets have not been recognized in the books of account.

5. Professional charges include payments to Statutory Auditors as under:

For Statutory Audit Rs. 11,400

6. Previous year's figures are rearranged or regrouped wherever necessary.

7. As there was no production ability no depreciation is charged for the year

---

Mar 31, 2013

A. Method of Preparation of accounts:

Accounts are prepared on historical cost convention, in accordance with the normally accepted accounting principles.

b. Fixed Assets:

Fixed assets are stated at their original cost of acquisition, including taxes, freight and other incidental expenses incurred in connection with the erection / commissioning / construction of the said assets, less accumulated depreciation.

c. Inventories:

Inventories are valued at cost or net realizable, whichever is lower.

d. Depreciation:

Depreciation is computed on straight-line basis in accordance with the provisions of Schedule XIV to the Companies Act, 1956.

---

Mar 31, 2012

A. Method of Preparation of accounts:

Accounts are prepared on historical cost convention, in accordance with the normally accepted accounting principles.

b. Fixed Assets:

Fixed assets are stated at their original cost of acquisition, including taxes, freight and other incidental expenses incurred in connection with the erection / commissioning / construction of the said assets, less accumulated depreciation.

c. Inventories:

Inventories are valued at cost or net realizable, whichever is lower.

d. Depreciation:

Depreciation is computed on straight-line basis in accordance with the provisions of Schedule XIV to the Companies Act, 1956.

2. The Company is a Sick unit and is before the Hon'ble BIFR in Case No.210/2000. The company has reached OTS with both the secured creditors and submitted a viable revival proposal to the Hon'ble BIFR.

3. Pending finalization of one time settlement with banks no interest was provided on principal outstanding loans from 01.04.2005 to 31.03.2012.

4. Claims not accepted as debt by the company and pending in courts / appeals.

a) Liability if any on alleged sale and leaseback transaction.

b) Appeals against the Arbitration awards and Decreetal orders of the Learned Single Judge are pending before the Division Bench in the High Court Judicature at Madras

c) Claim of Central Excise Department amounting to Rs.25.74 Lakhs pending in appeal.

5. The Company declared a Lay-Off with effect from December 06, 2004. Pending final settlement, no provision has been made in the books of account for terminal benefits like gratuity, bonus and leave encashment.

6. The term Loans from Industrial Development Bank of India and State Bank of Hyderabad are secured by joint equitable mortgage of land and buildings, hypothecation of plant & machinery and other movable assets, excluding book debts, and on the personal guarantee of some of the directors of the Company.

a) The working capital loans from State Bank of Hyderabad are secured by a first charge on all goods, book debts and movable assets of the Company and on the personal guarantee of some of the directors. The working capital term loan is secured by a second charge on the fixed assets of the Company.

b) SASF Cell (IDBI had accepted the OTS Proposal of the Company on 18.06.2007 and also had accepted the down payment of Rs.15.00 Lakhs arranged by the Company. As such, the Company has not provided compound and penal interest on term loan for the year under review.

c) Reportedly SBH has assigned its debt to ASREC India Ltd. on 07.11.2006. Deutsche Bank being the power of attorney holders of ASREC had reached OTS with the Company on 02.03.2007. As such, the Company has not provided compound and penal interest on term loan from SBH for the year under review.

7. Redundant fixed Assets of Rs.96.19 Lakhs (approx) have been given to another EOU, after obtaining permissions from VEPZ / Central Excise authorities, on a returnable basis without any rental charges.

8. Claims made by the Company

a) The claim filed by the Company against National Insurance Company before the Learned Addl. Chief Judge City Civil Court Hyderabad has been dismissed with costs and hence the - same is debited to statement of profit & loss during the year as exceptional item.

b) Claim filed by the Company against the Revenue Divisional Officer, Nalagonda under National Highway Act 1956 US 3(a), 3(d) and 3(b) is pending for finalization.

9. No confirmations have been obtained for sundry creditors, debtors and other balances outstanding.

10. As regards to the compliance of provision relating to the dues to the small scale industries in terms of companies (Amendment) Act, 1999 the company has sent letters to the creditors to confirm whether they are SSI Units. The company is yet to receive the confirmations from them. Hence, the company could not quantify the dues, if any, to the small-scale industries/ ancillary undertakings.

11. The company has not made any related party transaction during the Financial Year under review. However the Outstanding balance of un-secured loan taken from the Managing Director as at March 31, 2012 was Rs.l,15,01,829/-

12. Segment Reporting: The Company has not performed any operations during the year under review and hence Segment Reporting is not applicable.

13. Earnings Per Share: The Company has incurred a net loss of Rs.2,43,32,438/- during the year under review and hence EPS is not applicable.

14. Deferred taxation:

Even though, the company has unabsorbed depreciation, carry forward of losses and adjustments under section 43 B of Income tax Act, 1961 deferred tax asset as per the Accounting Standard - 22 " Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, has not been recognized in the Books of account as the company is 100% EOU and eligible for tax exemption u/s 10A of income tax Act, 1961 and also generation of sufficient taxable income in near future is uncertain. In view of the appeal preferred against the order of BIFR as detailed in Note No. 2 and also considering the fact that deferred tax assets are more than the deferred tax liabilities, no provision has been made in respect of deferred tax liability. Taking a more prudent view deferred tax assets have not been recognized in the books of account.

16. Aoditional information pursuant to the provisions of Paragraphs 3 & 4 of Schedule VI to the Companies Act, 1956.

17. Previous year's figures are rearranged or regrouped wherever necessary.

18. As there was no production ability no depreciation is charged for the year

---

Mar 31, 2010

A. Method of Preparation of accounts:

Accounts are prepared on historical cost convention, in accordance with the normally accepted accounting principles.

b. Fixed Assets:

Fixed assets are stated at their original cost of acquisition, including taxes, freight and other incidental expenses incurred in connection with the erection / commissioning / construction of the said assets, less accumulated depreciation.

c. Inventories:

Inventories are valued at cost or net realizable, whichever is lower.

d. Depreciation:

Depreciation is computed on straight-line basis in accordance with the provisions of Schedule XIV to the Companies Act, 1956.