Notes to Accounts of Innocorp Ltd.

Mar 31, 2024

1.9 Provisions and Contingent Liabilities

A Provision is recognized if, as a result of past event, the Company has a present legal obligation
that is reasonably estimable, and it is probable that an outflow of economic benefits will be re¬
quired to settle the present obligation. Provisions are determined by the best estimate of the
outflow of economic benefits required to settle the obligation at the reporting date. Where no
reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. Where there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of resources is remote, no provi¬
sion or disclosure is made.

1.10 Financial Instruments

A financial instrument is any contract that give rise to a financial asset of one entity and a financial
liability or equity of another entity.

Initial Recognition

Financial assets and liabilities are recognised when the Company becomes a party to the contrac¬
tual provisions of the instrument. Financial assets and liabilities are initially measured at fair value.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit
and loss) are added to or deducted from the fair value measured on initial recognition of financial
asset or financial liability

Subsequent Measurement

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial
assets are held within a business whose objective is achieved both by collecting contractual cash
flows on specified dates to cash flows that are solely payments of principal and interest on the
amount outstanding and selling financial assets.

Financial assets at fair value through Profit and Loss

Financial assets are measured at fair value through profit and loss unless it is measured at amor¬
tised cost or at fair value through other comprehensive income on initial recognition. The transac¬
tion costs that are directly attributable to the acquisition of financial assets and liabilities at fair
value through profit and loss are immediately recognised in statement of profit and loss.

1.11 Financial liabilities

Financial liabilities are classified as measured at amortised cost or Fair Value Through Profit and
Loss Account (FVTPL). A financial liability is classified as at FVTPL if it is classified as held for
trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net gains and losses, including any interest expense, are
recognised in statement of profit and loss. Other financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest expense and foreign exchange gains
and losses are recognised in statement of profit and loss. Any gain or loss on derecognition is also
recognised in statement of profit and loss.

1.12 De-recognition

The Company derecognises a financial asset when the contractual rights to the cash flows from
the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
as per Ind AS 109. A financial liability (or a part of a financial liability) is derecognised from the
Company''s balance sheet when the obligation specified in the contract is discharged or cancelled
or expires.

1.13 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three months or less, which are subject to an insignificant
risk of changes in value. For the purpose of the statement of cash flows, cash and cash equiva¬
lents consist of cash and short-term deposits, as defined above are considered an integral part of
the Company''s cash management.

Cash flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from regular revenue generating, investing and financing
activities of the company are segregated.

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Mar 31, 2014

1. a) Contingent liabilities and commitments (to the extent not provided for)

2013-14 2012-13

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debt NIL NIL

(b) Guarantees

(c) Other money for which the company is contingently liable - -

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital NIL NIL account and not provided for

(b) Uncalled liability on shares andd other investments partly paid

(c) Other commitments (specify nature) - -

- -

2. Related party disclosures (AS-18):

a) Related Parties and their relationship :

i) Key Management Personnel (Directors)

* Prasad VSS Garapati , Managing Director

* Sahu Garapati, Whole time Director.

3. Contingent Liabilities and commitments - (AS-29):

Contingent Liabilities:

i. Guarantees and letters of credit : Nil

1) Bank Guarantees issued by Bankers - Rs. Nil (Previous year Rs Nil)

4. The Previous year''s figures have been regrouped and recast wherever necessary to Bring them in line with the current year''s figures.

5. General Notes to the financial statements:

Statement of Profit & Loss for the year has been prepared showing separately as per Schedule-VI (Revised)

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Mar 31, 2012

(a) a) Previous year figures have been regrouped and rearranged wherever necessary.

b) Paisas have been rounded off to the nearest rupee.

(b) Contingent Liabilities and commitments - (AS-29): Contingent Liabilities: -NIL-

(c). General Notes to the financial statements :

(i) Statement of Profit & Loss for the year has been prepared showing the following separately as per Schedule-VI (Revised):

(ii) Previous year's figures have been regrouped wherever necessary to conform to the format of revised Schedule-VI and the layout adopted in the current year.

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Mar 31, 2010

1. Contingent liability not provided for:

i) Capital commitment not provided – NIL Previous Year – NIL.

ii) Claims against the company not acknowledged as debt – NIL Previous Year - NIL

iii) Other Contingent liabilities – NIL Previous Year - NIL

2. Balances in Debtors, Advances and Creditor accounts are subject to confrmation from the parties.

3. No employee has received salary of Rs.200,000 per month if employed part of the year or Rs.,2400,000 per annum during the year 2009-2010. Previous year : NIL.

4. there are no outstanding over-dues to Small Scale Industrial Undertakings and/or Ancillary Industrial Suppliers on account of principal and/or interest at the close of the year. this disclosure is based on the documents/information available with the company.

5. In accordance with the Accounting Standard 22 issued by the ICAI, the company is having a tax Asset of Rs.40,82,874 on timing differences as on 31.03.2009.

6. Cenvat Credit: excise duty paid on inputs is debited to a separate account namely Cenvat on Raw material Account. this account is credited as and when Cenvat actually utilized against payment of Excise Duty on fnal Dispatches. Balance in Cenvat on Raw Materials is shown on assets side of Balance sheet under the current assets.

7. a) Previous year figures have been regrouped and rearranged wherever necessary.

b) Paisa have been rounded off to the nearest Rupee.

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Mar 31, 2009

1. Contingent Liability not provided for:

i) Capital commitment not provided - NIL Previous Year - NIL.

ii) Claims against the company not acknowledged as debt - NIL Previous Year - NIL

iii) Other Contingent liabilities - NIL Previous Year-NIL

2. Balances in Debtors, Advances and Creditor accounts are subject to confirmation from the parties.

3 Working Capital Loan from Punjab National Bank and Medium Tern Loan (MTL) from Punjab National Bank is secured by charge on Fixed Assets, Hypothecation of Stocks, Stores and Spares, present and future Book Debts and claims and personal guarantee of the directors of the company. Further, Working Capital Loan from UCO Bank is secured by charge by way of Hypothecation of Current Assets of the company and personal guarantee of the Directors.

4. No employee has received salary of Rs. 100,000 per month if employed part of the year or Rs.1,200,000 per annum during the year 2008-2009. Previous year: NIL.

5. There are no outstanding over-dues to Small Scale Industrial Undertakings and/or Ancillary Industrial Suppliers on account of principal and/or interest at the close of the year. This disclosure is based on the documents/information available with the company.

6. In accordance with the Accounting Standard 22 issued by the ICAI, the company is having a Tax Asset of Rs.40,82,874 on timing differences as on 31.03.2009.

7. Cenvat Credit: Excise Duty paid on inputs is debited to a separate account namely Cenvat on Raw Material Account. This account is credited as and when Cenvat actually utilized against payment of Excise Duty on final Dispatches. Balance in Cenvat on Raw Materials is shown on assets side of Balance sheet under the current assets.

8. Related Party Transactions :

The Company has transactions with the following related parties:

9. a) Previous year figures have been regrouped and rearranged wherever necessary. b) Paisa have been rounded off to the nearest Rupee.

10. Quantitative Information pursuant to the provisions of paragraphs 3,4C and 4D of Para-ll of Schedule VI in respect of goods manufacture.