NOTE 1: Statement of Significant Accounting Policies and Practices A. Basis of Presentation The accounts have been brpared using historical cost convention and on the basis of a going concern, with revenues recognised and expenses accounted for on accrual (including for committed obligations), in accordance with the accounting standard brscribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards, to the extent applicable. Where changes in brsentation are made, comparative figures for the brvious year are regrouped accordingly. B. Use of Estimates: The brparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/ materialised. C. Recognition of Income and Expenditure: a) Revenues/Incomes and Costs/ Expenditure are generally accounted on accrual, as they are earned or incurred. b) Sale of goods is recognized on transfer of property in goods or on transfer of significant risks and reward of ownership to the buyer, which is generally on despatch of goods. D. Employee Benefits: Gratuity and Earned Privilege Leaves are the retirement benefits available to the employees and the same have been determined on accrual basis. There are no eligible employees entitled for such benefits and therefore no provision has been made in respect of such benefits. E. Accounting for Taxes on Income Provision for current year Income Tax Expense combrsses of Minimum Alternate Tax made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. F. Accounting for Deferred Taxes In compliance with Accounting Standard 22 on Taxes on income issued by the Institute of Chartered Accountants of India, the Company has not disclosed net deferred tax liability as there is no certainty of sufficient taxable income being available against which such deferred tax assets can be realised. G. Contingencies and Events occurring after the date of Balance Sheet a) Accounting for contingencies (gains and loss) arising out of contractual obligations are made only on the basis of mutual acceptances. b) Where material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts. 2. 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. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary. 3. Letters seeking confirmation of balances outstanding from Banks, Debtors, Creditors and others are not being issued. Accordingly balances as on 31St March 2016 as appearing in books of account have been recognised and are subject to reconciliation / adjustment if any, when the accounts of the concerned parties are reconciled and settled. 4. The company has availed facilities under Raw Material Assistance Scheme from National Small Industries Corporation (N.S.I.C.) during the year 1996. The Company has defaulted in making payment to N.S.I.C. since 1997-1998. No interest including arrears of interest has been provided in the books up to 2014-15 on outstanding amount of Rs 1,75,07,713/- in absence of details. NSIC has filed suit against the company in City Civil Court Ahmedabad in the year 1997 for recovery of its dues and has agreed to accept \ 110.00 Lacs. under One Time Settlement Scheme in October 2014 in full and final settlement of its dues. The Company has started repayment under the One Time Settlement Scheme offered by NSIC. In the opinion of Board of Directors the said One Time Settlement Scheme is still in operative. 5. The Company is "SICK" within the meaning of clause (0) of sub-section (1) of section 3 of Sick industrial Companies ( Special Provision) Act 1985 (SICA), However as the company is Small Scale Industry, it is not eligible for making reference to Board for Industrial Financial Reconstruction for declaration of Company as "Sick Industrial Undertaking". 6. Figures of the brvious year have been regrouped/ rearranged/ reclassified wherever necessary to correspond with the classification of the current period As per our attached Report of even date For and on behalf of the Board For Parikh Shah Chotalia & Associates UTL Industries Limited Chartered Accountants CA. Vijay Parikh Parimal Shah Umesh Gandhi Partner Director Director Membership No.: 031773 F.R.N.:118493W Place: Vadodara. Date: 30th May, 2015 |