Significant Accounting Policies (a) Basis of Accounting: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) under the historical cost convention, on the accruals basis.Except in respecr of assets classified as Non Performing Assets (NP) (b) Use of Estimates The brsentation of financial statements in confirmity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those of estimated. (c) Revenue Recognition: (i) Sale of goods: Reveune from the sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales Order. (ii) Interest Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable (iii) Dividend Dividend Income from investments are recognized when the right to receive payment established. (d) Fixed Assets Fixed Assets are stated at cost, less accumulated debrciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use. (e) Debrciation and Amortisation Debrciation is provided on the straight line method based as per the rate specified in Schedule II of the Companies Act, 2013. (f) Investments Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current Investments are carried at lower of cost and fair values, determined on individual basis. (g) Inventories Inventories are at lower of cost and net realizable value. Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis, net realizable value is determined by management using technical estimates. (h) Borrowing Costs Borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qulity asset is one that necessarily takes substantial period of time to get readly for intended use. All other borrowing costs are changed to revenue. (i) Retirment and other employee benefits The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Acturial Valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly. (j) Provisions, Contingent liabilities and contingent Assets. A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liablities are disclosed by way of Notes to the account. Contingent assets are not recognized. (k) Provision for current and deferred tax Provision for current income tax is made in accordance with the Income Tax Act,1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accouonting income that original in oone period arecapable of reversal in one or more subsequently period. (l) Foreign Currency Transaction a) Transaction denominated in foreign currency are recorded at the exchange rate brvailing on the date of the transaction. b) Monetary items denominated in foreign currency at the year end are restated at year end rates. c) Non monetary foreign currency items are carried at cost. Impairments Impairment loss is recognizede wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount. (n) Earning Per Share Basic earnings per Share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares oustanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board of Directors. For the purpose of calculating diluted earnings per share, the net profit for period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilaative potenial equity shares. The number of equity shares and potenial dilative equity shares are adjusted for bonus as appropriate. (o) Share Issue Expenses Share issue expenses are redemption brmium are adjusted against the Securities Premium Account as permissble under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years 1 The Company has floated a 100% subsidiary " Veer Enterprise-GMBH" in Germany to explore the possibility of expansion in the field of non conventional energy with the help of colloberation with any company in this field with a wide experience and capital resources. The main idea is to make development in India only at a later stage. The subsidiary is incurring losses, but the management is hopeful to recover the same in future. The management has taken care to minimise the expenses. 2 The Company has also 100% subsiduary in India " Shruti Power Projects Pvt Ltd., The subsdiary is engaged in the same business of non conventional energy. 3 Previous year figures have been regrouped & rearranged wherever necessary. As per our report of even date attached For JAYESH R SHAH & CO. For and on Behalf of the Board Chartered Accountants Firm Regn.No.104182W Sd/- Yogesh Shah Prakash Shah Jayesh Shah Managing Director Executive Director Proprietor DIN: 00169189 DIN: 01660194 Membership No.033864 Nipa Shah Kunal Shah Company Secretary C.F.O. Date: 28th May, 2015 Place: Mumbai |