Mar 31, 2018
1 Company Overview
The Company was incorporated in August 1994 having CIN No. L74120MH1994PLC079971, at Mumbai under The Companies Act, 1956.
The Company is engaged in the e-waste recycling business in an organised manner, with the help of superior technology, complying norms set by the Pollution Control Board for the environmental safety.
2 Basis of preparation of financial statements
2.1 Statement of compliance and basis of preparation:
These financial statements are prepared in accordance with the
Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules 2015, Companies (Indian Accounting Standards) Amendment Rules 2016.
The company prepared its standalone financial statements as per Indian GAAP in accordance with accounting standards notified under Companies (Accounting Standards) Rules 2006. These financial statements are the Companyâs first Ind AS standalone financial statements
The date of transition to Ind AS is April 01, 2016.
The standalone financial statements have been prepared on historical cost basis, except for certain items of financial assets and financial liabilities which have been measured at fair values.
The presentation of the standalone Ind AS Balance sheet, Statement of profit and loss and Statement of Changes in equity is as per Schedule III (Division II) notified by the Companies Act 2013.
2.2 Use of accounting estimates, assumption and judgements:
The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported amounts of incomes and expenses for the periods presented.
2.3 Useful lives of property plant and equipment:
The useful lives and the residual values of the property plant and equipment are reviewed by the management at least at every financial year end.
2.5 Impairment of Assets
The carrying amount of fixed assets and investments is regularly reviewed by the management and whenever there is an indication of impairment. In case of impairment loss, the asset is reduced to its recoverable amount
2.6 Employee benefit obligation:
The company uses actuarial valuation method to determine its defined employees benefits obligation at the end of each reporting period. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates
3 Notes on Transition to Ind AS:
The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified by the Ministry with effect from April 01, 2016.
The companyâs transition date is April 01, 2016 (Opening Ind AS balance sheet).
Ind AS 101 First time adoption to Indian Accounting Standards provides mandatory and optional exemptions, to a first time adopter of the Indian Accounting standards from retrospective application of certain or all aspects of the other standards.
This standard mandates that a first time adopter shall use the same accounting policies in its opening Ind AS balance sheet and throughout all periods presented in its first Ind AS financial statements. Any difference in the carrying value of assets and liabilities between Ind AS and Previous GAAP have been recognised directly in retained earnings (or if appropriate, another category of equity) at the date of transition to Ind AS (i.e. Opening balance sheet as at April 01, 2016).
3.1 Mandatory Exceptions:
a) Estimates: the companyâs estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP
b) Classification and measurement of financial assets: The company has classified financial assets as subsequently measured at amortised cost or at fair value through other comprehensive income on the basis of facts and circumstances that exist at the date of transition to Ind AS.
c) De-recognition of financial assets and financial liabilities:
The company has decided to apply the de-recognition requirements in Ind AS 109 Financial Instruments prospectively for transactions occurring on or after the date of transition to Ind AS.
3.2 Optional Exceptions:
(a) Property Plant and Equipment:
The company has opted for exemption given under paragraph D7AA of Ind AS 101 for all its property plant and equipment recognised in its financial statements as per previous GAAP on the date of transition to Ind AS. Accordingly all the property plant and equipment are carried at their existing previous GAAP carrying values, which will be their respective deemed costs at the date of transition to Ind AS.
(b) Investments in subsidiaries, associates and joint ventures:
The company has opted for exemption given in paragraph D15 of Ind AS 101. Accordingly the investments in subsidiaries, associates and joint ventures are carried at their respective previous GAAP carrying values, as deemed costs on the date of transition to Ind AS.
(c) Designation of previously recognised financial assets:
Ind AS 101 permits investments in equity instruments to be designated as at fair value through OCI (FVTOCI) in accordance with Ind as 109, on the basis of facts and circumstances that existed at the date of transition to Ind AS. The company has opted to avail this exemption to designate certain equity investments as FVTOCI on the date of transition to Ind AS.
Notes to reconciliation of equity and total comprehensive income:
(a) Fair valuation of investments: Under previous Indian GAAP, current investments are measured at lower of cost and fair value, and long term investments are measured at cost less diminution in value which is other than temporary. Under Ind AS, investments, long term as well as current, are measured at fair market value, with gains or losses recognised either in profit or loss or in other comprehensive income based on the business model of the company for managing these investments.
(b) Deferred tax: Under previous GAAP, deferred tax liabilities and assets was recognised using the income approach i.e. based on timing differences between the accounting profit and taxable profits for the period. Under Ind AS deferred tax calculations are based on balance sheet liability method i.e. based on temporary differences between the carrying amounts of assets and liabilities in the balance sheet and its tax base. This has resulted in recognising deferred tax on temporary differences that were not required to be recognised under previous Indian GAAP.
3.3 Long term investments in unquoted equity instruments (other than investment in subsidiary)
Under previous Indian GAAP, non current investments are carried at cost with provision for diminution in their value which is other than temporary. under Ind AS, the company has designated unquoted equity instruments as financial assets at fair value through other comprehensive income and certain unquoted preference shares as financial assets at fair value through profit and loss. The company has not performed a fair valuation of its unquoted investments in equity shares and preference shares, as the company believes that the impact of change on account of the fair valuation of such investments is insignificant
3.4 Fair value disclosures for financial assets and financial liabilities
The company believes that the fair values of non-current financial assets (security deposits, lease rental deposits) , current financial assets (trade receivables etc.) and non current financial liabilities approximate their carrying amounts
3.5 Investment in quoted equity shares The company has designated investments in quoted equity shares as subsequently measured at fair value through other comprehensive income FVTOCI. On transition date, the difference between the existing carrying amount and fair value has been recognised as an adjustment to opening retained earnings. Subsequent adjustment to the fair values of such quoted equity investments is recognised in other comprehensive and accumulated separately under other equity in the balance sheet
3.6 Financial Guarantee contracts Under previous Indian GAAP, financial guarantee given by parent on behalf of its subsidiaries is recognised as âContingent liabilityâ
Under Ind AS, corporate / financial guarantee is treated as a financial liability and is recognised at fair value on initial as well as subsequent recognition. The fair value of the financial guarantee is treated as âinvestment in subsidiaryâ. Finance income is recognised over the term of the guarantee using the effective interest method.
The company has given a corporate / financial guarntee to National Skills Development Corporation (NSDC) on behalf of its 100% subsidiary Ecoreco Enviro Education P.Ltd. The company has however not done a fair valuation of the financial guarantee given to NSDC, as the company feels that its impact on the financial statements is insignificant
Note 4.1: The Company had set up a small facility for recycling of e-waste near Mumbai and were carrying out R&D for the recovery of various metals from printed circuit boards & other complicated e-waste. In the process we approached Department of Scientific & Industrial Research (DSIR) for their financial support to complete technology development and commercialize the same with an optimum capacity to recycle. DSIR was kind enough to sanction Rs.1186 lacs as grant payable back on commercialization of the above project. To implement the above project Company had withdrawn Rs.900 lacs from the above grant and invested its own funds of Rs. 2134.53 lacs to develop / procure required Plant & Machineries. Unfortunately, we could not develop / commercialize the project so far because access road to the Project Site has been blocked by the local villagers who also owns some parcel of land around the above project site. The company has approached to practically all the levels of Administration at the Local & State level for their kind intervention and resolution. The Company has also appealed to the office of the PMO and the same has been forwarded to the Ministry of Environment & Forests for their attention.
Note 5: Disclosure in Respect of Leases:
Operating Lease: Company as Lessee
The Companyâs leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.
a) The total of future minimum lease payments during lock in period of operating leases for each of the following periods:
Note 6: The Company had been dealing with Keynote Capital Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to Rs.4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been misappropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorisation of the company. In this matter Company has won both the appeals of Arbitration Committee of The National Stock Exchange. In the month of August, 2014 Keynote has filed an appeal u/s 34 in the Bombay High Court against the second appellate award passed by the Arbitration Committee of The National Stock Exchange of India Limited, which is still pending. The matter is now pending with Bombay High Court and the disposal of the same in favour of Company is expected.
Note 7: The Company had entered in to an agreement with KUD Realtors Pvt. Ltd, Mumbai for purchase of 10 acres of land for a consideration of Rs.650 lacs for setting up its e-waste recycling project at Kharbao, Bhiwandi and paid Rs.615 lacs against the above. As of now, M/s KUD Realtors Pvt Ltd, could conveyance 5.78 acres of land in favor of the company and for the remaining amount they have offered some warehouses and incomplete construction at the same site.
All the above land, warehouses and incomplete building are yet to be physically received because of incomplete documents for which the company has taken appropriate steps with the concerned authorities.
Note 8: Balances of some of the trade receivables, trade payables and creditor of expenses, loans and advances (given and taken) and loans, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however is of the view that there will be no material adjustments in this regards.
Note 9: The company is in the business of E-waste and Asset Management.
Note 10: Related Party Transactions
Related party disclosures as required by AS - 18, âRelated Party Disclosuresâ, are given below â
i) Relationships :
(a) Holding Company :-
Ecoreco Ventures Private Limited
(b) Associates (by common director):-
Reverse Logistics & Warehousing Private Limited
Ecoreco Park Private Limited
Eco Remarketing Pvt Ltd
Data De-End Private Limited
WEEE India Pvt Ltd
Reverse E-Commerce Private Limited
EPR Compliance Private Limited
(c) Subsidiary(100%):-
Ecoreco Enviro Education Pvt Ltd
(e) Key Management Personnel :-
Mr. Brijkishor Soni - C.M.D.
Mrs. Aruna Soni - Director Mr. Srikrishna B. - Director Mr.Shashank Soni - Director Mr. Vijay Acharya - Director
Note 11: Previous yearâs figures have been regrouped/reclassified wherever necessary to correspond with the current yearâs classification/disclosure.
Mar 31, 2017
a) 11,342,500 (P.Y.11,342,500) Equity Shares out of the issued, subscribed and paid up share capital were alloted in the last five years pursuant to the schemes of amalgamation of Eco Recycling Limited and Infotrek Syscom Limited without payments being received in cash.
c) Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of prefential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.
Secured Long Term Borrowings
* Indian Rupee term loan from bank is repayable in equated periodic installments upto a 5 year period each along with interest. Further, the loan has been guaranteed by personal guarantee of the chairman and managing director of the company, Ecoreco Ventures Private Limited, the holding company and by collateral security of the registered office in the name of B. K. Soni (HUF) and Pledge of 3.40 lakhs equity shares of the company by the chairman and managing director of the company Mr. B. K. Soni.
** The Vehicle loan from ICICI bank is repayable in equated periodic installments upto 36 months period each along with interest. Further, the loan has been secured by hypothecation of Vehicle and personal guarantee of Director.
*** Unsecured Long-Term Borrowings:
Repayment to start after 1 year from the date of commercialization of the project in 5 annual installments.
1 Disclosure in Respect of Leases:
Operating Lease:
Company as Lessee
The Company''s leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.
2 The Company had been dealing with Keynote Capital Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to ''4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been misappropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorization of the company. In this matter Company has won both the appeals of Arbitration Committee of The National Stock Exchange. In the month of August, 2014 Keynote has filed an appeal u/s 34 in the Bombay High Court against the second appellate award passed by the Arbitration Committee of The National Stock Exchange of India Limited, which is still pending. The matter is now pending with Bombay High Court and the disposal of the same in favour of Company is expected. In the interim company has booked the loss on sale of these shares in the current Financial Year.
3 The Whole Time Company Secretary had been appointed as per Companies Act 2013 before signing of the Financial Statements.
4 The Company has not written off the "Miscellaneous Expenditure" amounting to ''860,076/- fully in Statement of Profit and Loss account, which is not in confirmity with AS - 26 - Intangible Assets which had arise at the time of amalgamation. However in the opinion of the management it will not create any discrepancy as the treatment taken is as per the provisions of The Income Tax Act, 1961.
5 The Company had entered in to an agreement with KUD Realtors Pvt. Ltd, Mumbai for purchase of 10 acres of land for a consideration of Rs.650 lacs for setting up its e-waste recycling project at Kharbao, Bhiwandi and paid Rs.615 lacs against the above. As of now, M/s KUD Realtors Pvt Ltd, could conveyance 5.78 acres of land in favor of the company and for the remaining amount they have offered some warehouses and incomplete construction at the same site.
All the above land, warehouses and incomplete building are yet to be physically received because of incomplete documents for which the company has taken appropriate steps with the concerned authorities.
6 Balances of some of the trade receivables, trade payables and creditor of expenses, loans and advances (given and taken) and loans, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however is of the view that there will be no material adjustments in this regards.
7 The company is in the business of E-waste and Asset Management.
8 Related Party Transactions
Related party disclosures as required by AS - 18, "Related Party Disclosures", are given below "
i) Relationships :
(a) Holding Company:-
Ecoreco Ventures Private Limited
(b) Associates (by common director):-
Reverse Logistics & Warehousing Private Limited
Ecoreco Park Private Limited
Eco Remarketing Pvt Ltd
Data De-End Private Limited
WEEE India Pvt Ltd
(e) Key Management Personnel:-
Mr. B. K. Soni - C.M.D.
Mrs. Aruna Soni - Director
Mr. Srikrishna B. - Director
Mr.Shashank Soni - Director
Mr. Vijay Acharya - Director
Mr. Dattatraya Devale - Director
Ms. Anita Choudhari - CFO
(c) Subsidiary(100%):-
Ecoreco Enviro Education Pvt Ltd
9 Disclsoure On Specified Bank Notes (SBNs)
During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:
10 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.
Mar 31, 2016
1. Disclosures in Respect of Leases:
I Operating Lease: Company as Lessee
The Company''s leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.
2. The Company had been dealing with Keynote Capital Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to Rs.4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been misappropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorization of the company. In this matter Company has won both the appeals of Arbitration Committee of The National Stock Exchange. In the month of August, 2014 Keynote has filed an appeal u/s 34 in the Bombay High Court against the second appellate award passed by the Arbitration Committee of The National Stock Exchange of India Limited, which is still pending. The matter is now pending with Bombay High Court and the disposal of the same in favour of Company is expected.
3. The Company has not carried out Actuarial Valuation for Gratuity and has made an adhoc provision of Rs.2,00,000/-, which is not in conformity with AS-15 "Employee Benefits" as required under the provisions of The Payment of Gratuity Act, 1972.However in the opinion of the management the impact of difference, if any, on the Balance Sheet and Statement of profit and loss account is negligible.
4. The Company has not written off the "Miscellaneous Expenditure" amounting to Rs.14,51,548/- fully in Statement of Profit and Loss account, which is not in conformity with AS - 26 - Intangible Assets which had arise at the time of amalgamation. However in the opinion of the management it will not create any discrepancy as the treatment taken is as per the provisions of The Income Tax Act, 1961.
5. The Company had entered in to an agreement with KUD Realtors Pvt. Ltd, Mumbai for purchase of 10 acres of land for a consideration of Rs. 650 lacs for setting up its e-waste recycling project at Kharbao, Bhiwandi and paid Rs.615 lacs against the above. As of now, M/s KUD Realtors Pvt Ltd, could conveyance 5.78 acres of land in favor of the company and for the remaining amount they have offered some warehouses and incomplete construction at the same site.
All the above land, warehouses and incomplete building are yet to be physically received because of incomplete documents for which the company has taken appropriate steps with the concerned authorities.
6. The office of the Whole Time Company Secretary has been vacant and the Company is in process of appointing a full time company secretary as per Companies Act 2013.
7. The company is in the business of E-waste and Asset Management.
8. Balances of some of the trade receivables, trade payables and creditor of expenses, loans and advances (given and taken) and loans, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management however is of the view that there will be no material adjustments in this regards.
9. Related Party Transactions
Related party disclosures as required by AS - 18, "Related Party Disclosures", are given below " i) Relationships:
(a) Holding Company:- (c) Associates (by common director and investment):-
Ecoreco Ventures Private Limited WEEE India Pvt Ltd
(b) Associates (by common director):- (d) Subsidiary(100%):-
Reverse Logistics & Warehousing Private Limited Ecoreco Enviro Education Pvt Ltd
Ecoreco Park Private Limited
Eco Remarketing Pvt Ltd
Data De-End Private Limited
(e) Key Management Personnel:-
Mr. B. K. Soni - C.M.D.
Mrs. Aruna Soni - Director
Mr. Srikrishna B. - Director
Mr. T R Rao - Director
(Resigned on 19.09.2015)
Mr.Shashank Soni - Director
Mr. Vijay Acharya - Director
Ms. Anita Choudhari - CFO
Mar 31, 2015
1. Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs.10/- each. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividend in Indian Rupees.
2.In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of prefential amounts. The distribution will be in
proportion to the numbers of equity shares held by the shareholders.
3. Indian Rupee term loan from bank is repayable in equated periodic
installments upto a 5 year period each along with interest. Further,
the loan has been guaranteed by personal guarantee of the chairman and
managing director of the company, Ecoreco Ventures Private Limited, the
holding company and by collateral security of the registered office in
the name of B.K.Soni (HUF) and Pledge of 3.40 lakhs equity shares of
the company by the chairman and managing director of the company Mr.
B.K. Soni.
4. Unsecured Long-Term Borrowings:
b) Repayment to start after 1 year from the date of completion of the
project in 5 annual instalments.
5. Contingent Liabilities
Guarantee given by Bank on behalf
of the Company Secured against equal
fixed deposits
Standing Bank Guarantee in favour 1,810,000 1,810,000
of The Customs, JNPT
Custom Duty on Imported Machineries 12,400,000 12,400,000
cannot be sold or transferred to any
person or other organisation for a
period of 5 years from the date of
its import
6. The Company has been dealing with Keynote Capital Markets Limited
(Keynote) for its Share transactions. A substantial portion i.e
20,56,234 Nos. of shares amounting to Rs.4,48,55,092/- out of the
investment portfolio maintained by the company in demat form with
Keynote has been appropriated by the Keynote against the loss booked by
Keynote on account of transactions in the F&O Segment carried out by
Keynote on its own without any authorisation of the company. The
company has taken appropriate actions against Keynote with SEBI, NSE &
Economic Offence Wing (EOW) of the Mumbai Police for the recovery of
the misappropriation of the investment of the company. In this matter
Company has won both the appeals of Arbitration Committee of The
National Stock Exchange. In the month of August, 2014 Keynote has filed
an appeal u/s 34 in the High Court, which is still pending. The Company
is confident that it will be able to recover its amount and therefore
no accounting impact has been given to such misappropriated investments
till the matter is sub-judice.
7. The Company has not provided provision for gratuity on employees on
accrual basis, which is not in conformity with AS-15 - Employee
Benefits as required under The Gratuity Act, 1972. However in the
opinion of the management the amount involved is negligible and has no
impact on Statement of profit and loss account.
8. The Company has not written off the "Miscellaneous Expenditure"
amounting to Rs.39,19,517/- fully in Statement of profit and loss
account, which is not in confirmity with AS - 26 - Intangible Assets
which had arise at the time of amalgamation. However in the opinion of
the management it will not create any discrepancy as the treatment
taken is as per the provisions of The Income Tax Act, 1961.
9. The office of the Whole Time Company Secretary has been vacant and
the Company is in process of appointing a full time company secretary
as per Companies Act 2013.
10. The Company is engaging in research & development activity on
Electronic Waste. The expenses incurred during the year other than
capital expenditure is charged off in the Statement of profit and loss.
The expenses included legal & professional fees, employee benefits
expenses & other expenses incurred during the year.
11. The company is in the business of E-waste and Asset Management.
12. Balances of some of the trade receivable, trade payable and creditor
of expenses, loans and advances are subject to confirmation from the
respective parties and consequential adjustments arising from
reconciliation, if any. The management, however is of the view that
there will be no material adjustments in this regards.
13. Related Party Transactions
Related party disclosures as required by AS - 18, "Related Party
Disclosures", are given below " i) Relationships :
(a) Holding Company :-
Ecoreco Ventures Private Limited
(b) Associates :-
Reverse Logistics & Warehousing Private Limited
Ecoreco Park Private Limited
WEEE India Private Limited
Data De-End Private Limited
(c) Key Management Personnel :-
Mr. B. K. Soni - C.M.D.
Mrs. Aruna Soni - Director
Mr. Srikrishna B. - Director
Mr. T R Rao - Director
Mr.Shashank Soni - Director
Mr. Vijay Acharya - Director
Ms. Anita Choudhari - CFO
14. Previous year's figures have been regrouped/reclassified wherever
necessary to correspond with the current year's classification/
disclosure.
Mar 31, 2014
1. a) 11,342,500 (P.Y.11,342,500) Equity Shares out of the issued,
subscribed and paid up share capital were alloted in the last five
years pursuant to the schemes of amalgamation of Eco Recycling Limited
and Infotrek Syscom Limited without payments being received in cash.
b) Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs. 10/- each. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividend in Indian Rupees.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of prefential amounts. The distribution will be in
proportion to the numbers of equity shares held by the shareholders.
c) Details of Shareholders holding more than 5 % shares in the Company
Secured Long-Term Borrowings:
d) Indian Rupee term loan from bank is repayable in equated periodic
installments upto a 5 year period each along with interest, after the
repayment holiday of 1 year viz., June, 2013. The loan is secured by
hypothecation of inventory and trade receivables of the company.
Further, the loan has been guaranteed by personal guarantee of the
chairman and managing director of the company, Ecoreco Ventures Private
Limited, the holding company and by collateral security of the
registered office in the name of B.K.Soni (HUF) and Pledge of 3.40
lakhs equity shares of the company by the chairman and managing
director of the company Mr. B. K. Soni.
Unsecured Long-Term Borrowings:
e) Repayment to start after 1 year from the date of completion of the
project in 5 annual instalments.
*Working Capital Loans from banks are secured by way of hypothecation
of Stock, Book-Debts and Personal Gurantee of the Chairman and Managing
Director of the company Mr. B.K. Soni.
*The Company has not received any intimation from "suppliers" regarding
their status under the Micro, Small and Medium Enterprises Development
Act,2006 and hence disclosures, if any relating to amounts unpaid as at
the year end together with interest paid/payable as required under the
said Act have not been made.
*Includes Tax deducted at source, Provident Fund and Profession Tax.
Note : * It represents an expenditure for development of the project
''E-Waste recycling and Precious metal recovery'' under TDDP of TDPU and
DSIR.
2 Disclosure in Respect of Leases:
I Operating Lease: Company as Lessee
The Company''s leasing arrangements are in respect of operating leases
for factory, office premises and guest house occupied by the Company.
These leasing arrangements are cancellable except during the lock in
period, and are renewable on a periodic basis by mutual consent on
mutually acceptable terms.
3 Contingent Liabilities
Guarantee given by Bank on behalf of the Company Secured against equal
fixed deposits
Standing Bank Guarantee in JNPT 1,810,000 1,810,000
favour of The Customs,
Standing Bank Guarantee for Tender in - -
favour of The MMRDA
Custom Duty on Imported Machineries cannot
be sold or transferred to any person or other 12,400,000 12,400,000
organisation for a period of 5 years from the
date of its import
4 The Company was availing of broking services of M/s. Keynote
Capitals Limited (Keynote), a BSE & NSE Broker. In the month of March,
2013 Keynote misappropriated the entire portfolio of the company lying
in the demat account and transferred in its favor. The company
immediately filed a complaint with the SEBI. SEBI then forwarded our
complaint to the Arbitration Committee of NSE which decided the matter
in favor of the company, against which Keynote went into an appeal but
here too the Appellate Tribunal of NSE upheld the award passed by the
Arbitration Committee. Keynote has now filed an application with Mumbai
High Court for setting aside the award passed by the Appellate Tribunal
of NSE. Since the matter is sub-judies and therefore no accounting
treatment has been given to such misappropriated investments.
5 The Company has not provided provision for gratuity on employees on
accrual basis, which is not in conformity with AS-15 - Employee
Benefits as required under The Gratuity Act, 1972. However in the
opinion of the management the amount involved is negligible and has no
impact on Statement of profit and loss account.
6 The Company has not written off the "Miscellaneous Expenditure"
amounting to Rs. 64,98,617/- fully in Statement of profit and loss
account, which is not in confirmity with AS - 26 - Intangible Assets
which had arise at the time of amalgamation. However in the opinion of
the management it will not create any discrepancy as the treatment
taken is as per the provisions of The Income Tax Act, 1961.
7 The office of the Whole Time Company Secretary has been vacant and
the Company is in process of appointing a full time company secretary
as amended by The Companies Act, 1956.
8 The Company is engaging in research & development activity on
Electronic Waste. The expenses incurred during the year other than
capital expenditure is charged off in the Statement of profit and loss.
The expenses included legal & professional fees, employee benefits
expenses & other expenses incurred during the year.
9 The company is in the business of E-waste Management and Recycling.
10 The Company in 2012-13 has entered into agency arrangements with
"Nippon Magnetic Dressing Co. Ltd.(NMD)" - Japan for technology
agreements. Under this arrangements the company has issued equity
shares on preferential basis to NMD and is setting up a facility for
research and development in E-waste Management and recycling and
increasing awareness in the society.
The NMD has reimbursed full Construction and modification cost of
facility of which the Company has retained all risk and reward of
ownership of assets. The reimbursement cost is in Japanese YEN; the
difference arising on exchange amount is dealt to statement of profit
and loss account as per AS - 11.
Under the arrangements NMD has exported to India two Machineries
amounting to Rs. 112,944,791/- under technological arrangements with
the company. These machines have been provided free of cost to be
installed in facility where the company has paid only custom duty on
the same amounting to Rs. 60,48,202/- in which the company has retained
all risks and rewards of ownership of assets.
11 Balances of some of the trade receivable, trade payable and creditor
of expenses, loans and advances are subject to confirmation from the
respective parties and consequential adjustments arising from
reconciliation, if any. The management, however is of the view that
there will be no material adjustments in this regards.
12 Related Party Transactions
Related party disclosures as required by AS - 18, "Related Party
Disclosures", are given below "
i) Relationships:
(a) Holding Company:-
Ecoreco Ventures Private Limited
(b) Associates:-
Reverse Logistics & Warehousing Private Limited Bennett Coleman &
Company Limited (BCCL).
Nippon Magnetic Dressing Co., Ltd (NMD) - Japan Ecoreco Park Private
Limited
(c) Key Management Personnel:-
Mr. Brijkishor Soni - C.M.D.
Mrs. Aruna Soni - Director Mr. Srikrishna B. - Director Mr. T R Rao -
Director Mr. Shashank Soni - Director Mr. Mahendra Thanai - CEO
13 Previous year''s figures have been regrouped/reclassified wherever
necessary to correspond with the current year''s classification/
disclosure.
Mar 31, 2013
1 The Company has been dealing with Keynote Capital Markets Limited
(Keynote) for its Share transactions. A substantial portion i.e
20,56,234 Nos. of shares amounting to Rs. 4,48,55,092/- out of the
investment portfolio maintained by the company in demat form with
Keynote has been appropriated by the Keynote against the loss booked by
Keynote on account of transactions in the F&O Segment carried out by
Keynote on its own without any authorisation of the company. The
company has taken appropriate actions against Keynote with SEBI, NSE &
Economic Offence Wing (EOW) of the Mumbai Police for the recovery of
the misappropriation of the investment of the company. Investigation /
hearing in the matter is at an advanced stage at all the authorities.
The company is confident that it will be able to recover its amount and
therefore no accounting impact has been given to such misappropriated
investments till the matter is sub-judice.
2 The Company has not provided provision for gratuity on employees on
accrual basis, which is not in conformity with AS-15 - Employee
Benefits as required under The Gratuity Act, 1972. However in the
opinion of the management the amount involved is negligible and has no
impact on Statement of profit and loss account.
3 The Company has not written off the "Miscellaneous Expenditure"
amounting to Rs. 62,69,089/- fully in Statement of profit and loss
account, which is not in confirmity with AS - 26 - Intangible Assets
which had arise at the time of amalgamation. However in the opinion of
the management it will not create any discrepancy has the treatment
taken is as per the provisions of The Income Tax Act, 1961.
4 The office of the Whole Time Company Secretary has been vacant and
the Company is in process of appointing a full time company secretary
as amended by The Companies Act, 1956.
5 The Company is engaging in research & development activity on
Electronic Waste. The expenses incurred during the year other than
capital expenditure is charged off in the Statement of profit and loss.
The expenses included legal & professional fees, employee benefits
expenses & other expenses incurred during the year.
6 The company is in the business of E-waste Management and Recycling,
Trading in stock of shares, Derivative, Future and options &
Speculation business.
7 i) The Company in current year has entered into agency arrangements
with "Nippon Magnetic Dressing Co. Ltd.(NMD)" - Japan for technology
agreements. Under this arrangements the company has issued equity
shares on preferential basis to NMD and is setting up a facility for
research and development in E-waste Management and recycling and
increasing awareness in the society.
ii) The NMD has reimbursed full Construction and modification cost of
facility of which the Company has retained all risk and reward of
ownership of assets. The reimbursement cost is in Japanese YEN; the
difference arising on exchange amount is dealt to statement of profit
and loss account as per AS - 11.
iii) Under the arrangements NMD has exported to India two Machineries
amounting to Rs. 4,58,53,055/- under technological arrangements with the
company. These machines have been provided free of cost to be installed
in facility where the company has paid only custom duty on the same
amounting to Rs. 27,91,011/- in which the company has retained all risks
and rewards of ownership of assets. After the completion of
construction & installation of facility and machines, the company will
capitalized these assets in the books of accounts by revaluing the
assets under AS Â 10. Till then, the company will classify the
mentioned amounts as Capital Advances under "Long-Term Loans and
Advances" and receipts under "Other Long-Term Liabilities".
8 Balances of some of the trade receivable, trade payable and creditor
of expenses, loans and advances are subject to confirmation from the
respective parties and consequential adjustments arising from
reconciliation, if any. The management, however is of the view that
there will be no material adjustments in this regards.
9 Disclosure of Closing stock under Section 372(10) of the Companies
Act 1956
The company holding listed equity shares as stock-in-trade, the market
value of which as at year end Rs. 27,24,382/- (P.Y. Rs. 29,54,081/-). The
company policy is to value the equity shares held as a stock-in-trade
at cost.
10 Related Party Transactions
Related party disclosures as required by AS - 18, "Related Party
Disclosures", are given below "
(i) Relationships :
(a) Holding Company :- First Online Comtrades Private Limited
(b) Associates :- Kriscon Services Private Limited
Reverse Logistics & Warehousing Private Limited Bennett Coleman &
Company Limited (BCCL). Nippon Magnetic Dressing Co., Ltd (NMD) -
Japan
(c) Key Management Personnel :- Mr. Brijkishor Soni - C.M.D. Mrs.
Aruna Soni - Director
Mr. Srikrishna B. - Director Mr. T R Rao - Director Mr. Deepak Nanda -
Director Mr.Shashank Soni - Relative
11 Previous year''s figures have been regrouped/reclassified wherever
necessary to correspond with the current year''s classification/
disclosure.
Mar 31, 2012
A) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs 10/- each. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividend in Indian Rupees.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of prefential amounts. The distribution will be in
proportion to the numbers of equity shares held by the shareholders.
1 Disclosure in Respect of Leases:
The Company's leasing arrangements are in respect of operating leases
for factory, office premises and guest house occupied by the Company.
These leasing arrangements are cancellable except during the lock in
period, and are renewable on a periodic basis by mutual consent on
mutually acceptable terms.
a) The total of future minimum lease payments during lock in period of
operating leases for each of the following periods.
Particulars
i) Not later than one year
ii) Later than one year and not later than five years
iii) Later than five years
31.03.2012 31.03.2011
(Rupees) (Rupees)
2 Contingent Liabilities
Guarantee given by Bank on behalf of
the Company Secured against equal fixed
deposits Standing Bank Guarantee in
favour of The Customs, JNPT 1,810,000 1,810,000
Standing Bank Guarantee for Tender
in favour of The MMRDA 20,000,000 -
3 The office of the Company Secretary has been vacant and the Company
is in process of appointing a full time company secretary.
4 The Company has not provided for gratuity, leave encashment and
leave travel allowances to employees on accrual basis, which is not in
conformity with AS-15 issued by ICAI. However in the opinion of the
management the amount involved is negligible and has no impact on
profit and loss account.
5 The company is into single segment of E-waste Management and
Recycling. Hence segment wise reporting is not applicable.
Mar 31, 2011
1. In the opinion of the Board, the Current Assets, Loans and Advances
have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated in the fnancial
statements.
2. No revaluation of fixed assets has been made since the date of
incorporation of the Company.
3. In the opinion of the Management, the Provident Fund and ESI Acts
are not applicable to the Company.
4. The Company has not provided for gratuity and leaves encashment and
leave travel allowances to employees on accrual basis, which is not in
conformity with AS- 15 issued by ICAI. However in the opinion of
management the amount involved is negligible and has no impact on proft
and loss account.
5. Standing Bank Guarantee of Rs. 22,18,955/- In favor of The
Customs, JNPT is fully secured against equal Fixed Deposit with a bank.
6. As per the accounting standard 18 on "Related Party Disclosures"
issued by the ICAI the related Parties of the company and nature of
relationship are as follows:
c) Closing Stock of Shares held as stock- in-trade
2010-11 2009-10
3866166 4902498
7. Segment Reporting
(i) The company is into single segment of E-waste Management and
Recycling. Hence segment wise reporting is not applicable. (ii) The
company operates in domestic market only.
8. Earnings in foreign currency during the year. Expenditure in
foreign currency during the year à INR 5,09,704
9. Value of imports on CIF Basis: INR 5,33,304
10. In accordance with the accounting standard 20 on "Earnings per
Share" issued by the ICAI: Net Profit (Loss) after tax availableto
Equity Shareholders: - Rs. 71,55,950 Weighted average no. of Equity
Shares outstanding during the year: 159,425,000 Basic and Diluted EPS:
Rs.0.44 (P.Y. Rs 0.09)
11. Deferred Income Tax:
Deferred tax has been provided in accordance with the Accounting
Standard 22- Accounting for Taxes on Income issued by the Institute of
Chartered Accountant of India. The deferred tax liabilities as on 31st
March, 2011 amounting toRs. 1,26,363/-is the difference between the
book depreciation and tax depreciation.
12. Previous year fgures have been regrouped and rearranged wherever
necessary to confrm to this year's classifcation..
Mar 31, 2010
1. In the opinion of the Board, the Current Assets, Loans and Advances
have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated in the financial
statements.
2. No revaluation of fixed assets has been made since the date of
incorporation of the Company.
3. In the opinion of the Management, the Provident Fund and ESI Acts
are not applicable to the Company.
4. The Company has not provided for gratuity and leaves encashment and
leave travel allowances to employees on accrual basis, which is not in
conformity with AS-15 issued by ICAI. However in the opinion of
management the amount involved is negligible and has no impact on
profit and loss account.
5. Standing Bank guarantee of Rs. 1810000/= In favor of The Customs,
JNPT is fully secured against equal fixed deposit with the bank.
6. As per the accounting standard 18 on "Related Party Disclosures"
issued by the ICAI the related Parties of the company and nature of
relationship are as follows:
RELATED PARTY NATURE OF RELATIONSHIP
Brij Kishor Soni Key Management Personnel
Aruna Soni Director
N.R.Colors ltd One Common Director
First Online Comtrades Pvt.
Ltd. Two Common Directors
B. K. Soni HUF CMD Is Karta Of HUF
7. Deferred Income Tax:
Deferred tax has been provided in accordance with the Accounting
Standard 22- Accounting for Taxes on Income issued by the Institute of
Chartered Accountants of India. The deferred tax liabilities as on 31st
March, 2010 amounting to Rs. 1,72,799/- is the difference between the
book depreciation and tax depreciation.
8. Previous year figures have been regrouped and rearranged wherever
necessary to confirm to this years classification. The accounts
includes Eco-Recycling Ltd figures of three months from 01-01-10 till
31-03-10 on account of the merger. Hence figures are not comparable
with last year.
9. Contingent liability - Disputed Income Tax demand Rs. 1,281,837
for the A.Y. 1998-99.
10. There are no parties, which can be classified as small-scale
undertakings to whom the company owes a sum exceeding Rs. 1 Lac, which
is outstanding for more than 30 days.
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