Notes to Accounts of Vapi Enterprise Ltd.

Mar 31, 2025

obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

m. Leases

The Company as a lessee

The Company''s lease asset classes primarily consist of leases for land. Leases on which significant portion of the risks and rewards of ownership are effectively retained by the lessor, are classified as operating leases. Operating leases payments are charged to the Statement Profit and Loss on a straight- line basis over the lease term.

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

(C) Terms/Rights attached to equity shares The Company has equity shares having a face value of Rs. 10 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(D) The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation

Nature and purpose of other reserves

(i) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the act.

(ii) General Reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

20. Contingent Liabilities: Rs. 2,14,16,973/- (Previous Year Rs.2, 14,88,059/-)
	No	Particulars	31st March 2025	31st March 2024
	1	Appeal against Sales Tax	-	71,086
	2	Appeal against DGVCL	2,14,16,973	2,14,16,973

21. Capital Commitment: Estimated amounts of contracts remaining to be executed on capital account is Nil (Net of advances).

22. Going Concern Assumption: The Companys net worth is positive as on March 31, 2025 and assumed that Company is a going concern.

23. Current Assets, Loans and Advances: In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business, provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

24. Other Receivables: Balance of Trade Payables, Trade Deposits, Advance from Customers, Trade Receivables, Non-Current and Current Loans and Advances are subject to confirmation by the parties. In case of doubts regarding recoverability of receivables the provision for bad debt have been provided accordingly.

25. MSME Trade Payables: There are no payables to Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The Micro, Small and Medium Enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

27. Expenditure in foreign currency: Rs. Nil (Previous Year Rs Nil )

28. CIF Value of Imports of Raw Materials and Capital goods: Rs. Nil (Previous Year Rs. Nil )

29. Remittance in Foreign Currency on account of Dividend: Rs. Nil (Previous Year Rs. Nil)

30. Earnings in foreign exchange and expenditure in foreign currency: Rs. Nil (Previous Year Rs. Nil)

32. Accounting of income taxes: In view of the uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, the company has considered deferred tax assets as required to be disclosed under Ind AS 12 "Income tax".

34. Loans or advances to specified persons: No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

35. Details of benami Property held: No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

36. Borrowing secured against current assets: The Company has not borrowed any funds from banks on the basis of security of current assets during the year.

37. Willful Defaulter: The Company has not been declared willful defaulter by any bank or financial institution or other lender.

38. Undisclosed Income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

39. Other Points: Previous year''s figures have been regrouped and /or rearranged whenever necessary.

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Mar 31, 2024

(C) Terms/Rights attached to equity shares The Company has equity shares having a face value of Rs. 10 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(D) The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation

Nature and purpose of other reserves

(i) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the act.

(ii) General Reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses

21.	Contingent Liabilities: Rs.2,14,88,059/ - (Previous Year Rs.10,71,086/- )
	No	Particulars	31st March 2024	31st March 2023
	1	Appeal against Sales Tax	71,086	71,086
	2	Appeal against DGVCL	2,14,16,973	10,00,000

22. Capital Commitment: Estimated amounts of contracts remaining to be executed on capital account is Nil (Net of advances)

23. Going Concern Assumption: The Company''s net worth is positive as on March 31, 2024 but no feasible future plan of business is presented before us hence there is significant doubt on the going concern of the entity .

24. Current Assets, Loans and Advances: In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business, provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

25. Other Receivables: Balance of Trade Payables, Trade Deposits, Advance from Customers, Trade Receivables, Non-Current and Current Loans and Advances are subject to confirmation by the parties. In case of doubts regarding recoverability of receivables the provision for bad debt have been provided accordingly.

26. MSME Trade Payables: There are no identifiable Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The Micro, Small and Medium Enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

28. Expenditure in foreign currency: during the year on account of Travelling expenses Rs. Nil (Previous Year Rs Nil )

29. CIF Value of Imports of Raw Materials and Capital goods: Rs. Nil (Previous Year Rs. Nil )

30. Remittance in Foreign Currency on account of Dividend: Rs. Nil (Previous Year Rs. Nil)

31. Earnings in foreign exchange and expenditure in foreign currency: Rs. Nil (Previous Year Rs. Nil)

33. Accounting of income taxes: In view of the uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, the company has not considered any deferred tax assets as required to be disclosed under Ind AS 12 "Income tax".

35. Impairment of Assets: Entity has transferred all the land to Bayer Vapi PVT LTD and for that all the existing structure of buildings and godowns is demolished. Other office plant and machinery is measured for impairment and shown accordingly in the balance sheet as on 31-03-2024.

36. Title Deeds of immovable properties: The title deeds of all immovable properties are transferred during previous year to Bayer Vapi PVT LTD under sale agreement between them to transfer all the lease land to Bayer Vapi PVt LTD but possession was transferred during current year after demolishing all the existing structure built on the land.

37. Valuation of Property Plant & Equipment , intangible asset: The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year. Company has transferred all the lease land to Bayer Vapi pvt ltd during previous financial year under sale agreement to do so, tax on which was paid in last year and possession of which was transferred by end of December 2023 due to after dismantling all the existing structures of building and godowns constructed on land.

38. Loans or advances to specified persons: No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

39. Details of benami Property held: No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

40. Borrowing secured against current assets: The Company has not borrowed any funds from banks on the basis of security of current assets during the year.

41. Wilful Defaulter: The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

42. Undisclosed Income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

43. Other Points: Previous year''s figures have been regrouped and / or rearranged whenever necessary.

44. The company has entered into a Memorandum of Understanding (MOU) for the sale of land and due diligence and the required regulatory approvals got completed during last financial year and land handed over to company but actual possession was transferred in current year after demolishing all the existing structure built on the land . The financials and disclosure is prepared in compliance to INDAS 105 , discontinuance of operation.

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Mar 31, 2014

1. Contingent Liabilities Rs.34,82,360/- (Previous Year Rs. Nil)

2. Capital Commitment:

Estimated amount of contracts remaining to be executed on capital account is approximately Rs.1,06,611/-(Net of advances) (Previous Year Rs. 10,00,000)

3. The company has discontinued manufacturing of paper and paper board. The company has started leasing its premises on rent. The Company''s net worth is negative as on March 31, 2014. The management has made the net worth positive from out of the surplus that had been generated from present activities and also by bringing required funds to finance losses. Now having regard to these the accounts are prepared on going concern.

4. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business, provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. a) Balance of Trade Payables, Trade Deposits, Advance from Customers, Trade Receivables, Non Current and Current Loans and Advances are subject to confirmation by the parties.

b) There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The Micro, Small and Medium Enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

6. The Company has setup Gratuity Fund for future payment of retirement gratuities of employees. The company has not ascertained the amount of accrued liability on the basis of actuarial valuation and has not made any contribution to gratuity fund.

7. Expenditure in foreign currency during the year on account of Travelling expenses Rs. Nil (Previous Year Rs Nil )

8. CIF Value of Imports of Raw Materials and Capital goods Rs. Nil (Previous Year Rs. Nil )

9. Remittance in Foreign Currency on account of Dividend Rs. Nil (Previous Year Rs. Nil)

10. Earnings in foreign exchange and expenditure in foreign currency Rs. Nil (Previous Year Rs. Nil)

11. Related party disclosures:

I. LIST OF RELATED PARTIES:

A) Key Management Personnel:

a) Shri Manoj R. Patel : Managing Director

b) Shri Rajeev R. Patel : Whole time Director

c) Smt. Laxmiben J. Patel : Director

B) Other Related Parties:

a) M/s Polycone Paper Limited : Associate Company

b) Laj Investments Private Limited : Associate Company

12. In view of the uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, the company has not considered any deferred tax assets as required to be disclosed under Accounting Standard 22 "Accounting for Taxes on Income"

13. Company has closed down engineering division during the year 2011-12. However, the required information as per Accounting Standard – 24 has not been disclosed.

14. Previous years figures have been regrouped and or rearranged whenever necessary.

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Mar 31, 2013

1. Contingent Liabilities Rs. Nil (Previous Year Rs. Nil)

2. Capital Commitment:

Estimated amount of contracts remaining to be executed on capital account is approximately Rs.10,00,000. (Net of advances) (Previous Year Rs. Nil)

3. The company has discontinued manufacturing of paper and paper board. The company has started leasing its premises on rent. The Company''s net worth is negative as on March 31, 2013. The management is hopeful of making the net worth positive from out of the surplus that may be generated from present activities and also by bringing required funds to finance losses. Now having regard to these the accounts are prepared on going concern.

4. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business, provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. a) Balance of Trade Payables, Trade Deposits, Advance from Customers, Trade Receivables, Non Current and Current Loans and Advances are subject to confirmation by the parties.

b) There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The Micro, Small and Medium Enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

6. The Company has setup Gratuity Fund for future payment of retirement gratuities of employees. The company has not ascertained the amount of accrued liability on the basis of actuarial valuation and has not made any contribution to gratuity fund.

7. Expenditure in foreign currency during the year on account of Travelling expenses Rs.NIL (Previous Year Rs 33,809/-)

8. CIF Value of Imports of Raw Materials and Capital goods Rs. NIL (Previous Year Rs. NIL )

9. Remittance in Foreign Currency on account of Dividend Rs. NIL (Previous Year Rs. NIL)

10. Earnings in foreign exchange and expenditure in foreign currency Rs. NIL (Previous Year Rs. NIL)

11. Related party disclosures:

I. LIST OF RELATED PARTIES:

A) Key Management Personnel:

a) Shri Manoj R. Patel : Managing Director

b) Shri Rajeev R. Patel : Whole time Director

c) Smt.Laxmiben J. Patel : Director

B) Other Related Parties:

a) M/S Polycone Paper Limited : Associate Company

b) Laj Investments Private Limited : Associate Company

12. In view of the uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, the company has not considered any deferred tax assets as required to be disclosed under Accounting Standard 22 "Accounting for Taxes on Income"

13. Company has closed down engineering division during the year 2011-12. However, the required information as per Accounting Standard - 24 has not been disclosed.

14. Previous years figures have been regrouped and or rearranged whenever necessary

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Mar 31, 2012

1. Share Capital

(d) Rights of Shareholders, Dividend and Repayment of Capital:

i) Holder of equity shares is entitled to one vote per share.

ii) The company declares and pays dividend in Indian rupees.The companies Act, 1956 provides that any dividend be declared out of accumulated distributed profits only after transfer to general reserve of a special percentage of net profit computed in accordance with current regulations.

iii) In the event of liquidation of the company, holder of the shares shall be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.The amount distributed will be in proportion to number of equity shares held by shareholders.

2. Contingent Liabilities Rs. Nil (Previous Year Rs. Nil)

3. Capital Commitment:

Estimated amount of contracts remaining to be executed on capital account and not provided for are Rs. Nil (Previous Year Rs. Nil)

4. The company has discontinued manufacturing of paper and paper board and has continued the activity of assembling of pollution control equipments. The company has also carried out trading activity and leasing assets on rent. The Company's net worth is negative as on March 31, 2012. The management is hopeful of making the net worth positive from out of the surplus that may be generated from present activities and also by bringing required funds to finance losses. Now having regard to these the accounts are prepared on going concern.

5. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business, provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. a) Balance of Trade Payables, Trade Deposits, Advance from Customers, Trade Receivables, Non Current and Current Loans & Advances are subject to confirmation by the parties.

b) There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The Micro, Small and Medium Enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

7. The Company has setup Gratuity Fund for future payment of retirement gratuities of employees. The company has not ascertained the amount of accrued liability on the basis of actuarial valuation and has not made any contribution to gratuity fund.

8. Disclosure for operating leases under Accounting Standard 19 - "Leases"

(i) The company has significant operating leases for premises. These lease arrangements range for a period between 11 months and 3 years which includes cancellable leases. Most of leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

(ii) Lease income are recognized to Profit and Loss Account under "Rent received" for Rs. 67,64,796/- (P.Y. Rs.22,22,000/-). Operating Lease payments are recognised in Statement of Profit and Loss for Rs. 30,000/- (P.Y. Rs.30,000/-).

9. Expenditure in foreign currency during the year on account of Travelling expenses Rs. 33,809 (Previous Year Rs. NIL )

10. OF Value of Imports of Raw Materials for Paper Division Rs.NIL Lacs and Import of Felt, Wire Cloth . Stores Rs.NIL Lacs (Previous Year Rs. NIL Lacs)

11. Remittance in Foreign Currency on account of Dividend Rs. NIL (Previous Year Rs. NIL)

12. Earnings in foreign exchange on account of Exports Rs. NIL (Previous Year Rs. NIL)

13. Related party disclosures:

I. LIST OF RELATED PARTIES:

A) Key Management Personnel:

a) Shri Manoj R. Patel : Managing Director

b) Shri Rajeev R. Patel : Whole time Director

c) Smt. Laxmiben J. Patel : Director

B) Other Related Parties:

a) M/S Polycone Paper Limited : Associate Company b) Laj Investments Private Limited : Associate Company

14. In view of the uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, the company has not considered any deferred tax assets as required to be disclosed under Accounting Standard 22 "Accounting for Taxes on Income"

15. Company has closed down engineering division during the year 2011-12. However the required information as per Accounting Standard - 24 have not been disclosed.

16. The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised schedule VI to the Companies Act, 1956.Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous figures have been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for the previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2010

1. Contingent Liabilities Rs. Nil (Previous Year Rs. Nil)

2. Capital Commitment:

Estimated amount of contracts remaining to be executed on capital account and not provided for are Rs. Nil (Previous Year Rs. Nil)

3. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business, provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. a) Balance of Creditors, Debtors, Loans & Advances are subject to confirmation by the parties.

b) The management has initiated the process of identifying enterprises which have provided goods and services to the Company and which qualify under the definition of Micro and Small Enterprises, as defined under Micro, Small and Medium enterprises development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31.3.2010 has been not made in the financial statements based on information received and available with the company. Further, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

b) In view of the fact that there is a global contribution to Gratuity Fund, the amount applicable to individual employee is not ascertainable and accordingly, contribution to Gratuity Fund in case of Managing Director/ Whole time Director is not shown separately in the Profit and Loss Account.

c) As no Commission to Managing Director/ Whole time Director is payable for the year, on account of loss, the computation of Net Profit in accordance with Section 198 of the Companies Act, 1956 has not been given.

5. The Company has setup Gratuity Fund for future payment of retirement gratuities of employees. The company has not ascertained the amount of accrued liability on the basis of actuarial valuation and has not made any contribution to gratuity fund. However, provision for gratuity has been made in the accounts on the on the basis of estimate made by the management.

6. Interest paid includes Rs.NIL thousands (Previous year Rs. NIL thousands) paid to Directors.

7. No Provision for Income Tax has been made during the year.

8. Quantitative and Turnover information:

A) Particulars regarding capacities and production:

(i) Licensed: License is not required under the Industries (Development & Regulation) Act.

(ii) Installed Capacity (As Certified by Management):

9. Disclosure for operating leases under Accounting Standard 19 - "Leases"

(i) The company has given / taken office premises for staff of the company under Leave and license agreements. These are generally not non cancelable and for the period ranging between 11 months of three years under leave and license.

(ii) Lease income are recognized to Profit and Loss Account under "Rent received" for Rs. 4,91,700/- (P.Y. Rs.25,200/-). Lease payments are recognized to Profit and Loss Account under "Rent paid" for Rs. 1,87,300/- (P.Y. Rs. 1,50,250/-).

10. Expenditure in foreign currency during the year on account of Travelling expenses Rs. NIL (Previous Year Rs. NIL)

11. CIF Value of Imports of Raw Materials for Paper Division Rs.NIL Lacs and Import of Felt, Wire Cloth, Stores Rs.9.39 Lacs for VPM Engineering & Trading Division (Previous Year Rs. 19.10 Lacs)

12. Remittance in Foreign Currency on account of Dividend Rs. NIL (Previous Year Rs. NIL)

13. Earnings in foreign exchange on account of Exports Rs. NIL (Previous Year Rs. NIL)

14. Related party disclosures:

I. LIST OF RELATED PARTIES:

A) Key Management Personnel:

a) Shri Manoj R. Patel - Managing Director

b) Shri Rajeev R. Patel - Wholetime Director

c) Smt. Laxmiben J. Patel - Director

B) Other Related Parties:

a) M/S Polycone Paper Limited - Associate company.

b) Laj Investments Private Limited - Associate company.

15. In view of the uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, the company has not considered any deferred tax assets as required to be disclosed under Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

16. The Company operates two segments viz. Paper division and Eng. Division. However the required information as per AS -17 is not given.

17. The Company has shut down the manufacturing activity of Paper division on 4th November 2009. The Company has sold the part of the plant and machinery and retrenched the labours and staff for the Paper Division. However, the required information as per Accounting standard 24 has not been given.

18. Previous years figures have been regrouped, rearranged and reclassified wherever necessary to make them comparable with those of current year.