Significant Accounting Policies and Notes to Accounts annexed to and forming part of the Balance Sheet as at 31st March 2014 and Profit and Loss Statement for the year ending on that date. 1. Statement on Significant Accounting Policies These financial statements are brpared on an accrual basis, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 and provision of companies act, 2013 to the extent applicable. Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adopted by the company are detailed below. A. Revenue Recognition Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can't be ascertained with certainly in the respective accounting year. B. Fixed Assets Fixed assets other than plots are stated at cost of acquisition less debrciation. C. Debrciation: Debrciation has been provided on written down value method at the rates and the manner brscribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no debrciation has been provided for in the books of accounts. D. Investments Investments are valued at cost. E. Taxes on Income Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act 1961 F. Impairment of Assets: As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts. G. Regrouping/Reclassification Figures for the brvious period have been regrouped / reclassified in line with revised Schedule VI as directed by MCA through Notification No. S.O. 447(E). NOTES TO THE ACCOUNTS FOR THE YEAR MARCH 31 2014 A. Statutory Auditors remuneration is Rs. 18,000/- (including out of pocket expenses) Previous year Rs. 18,000/- B. Directors Remuneration Rs. Nil C. Segmental Reporting: Not Applicable D. Disclosure of related parties/ related party transactions: During the year the company has obtained loan from its director Mr. Om Prakash Maheshwari. Company is paying 9% interest on the said loan obtained from directors. Loan taken during the year is Rs. 9,37,836/-, Repaid Rs. 16,107/- (including interest of Rs. 6,37,376/-), maximum outstanding during the year is Rs. 78,43,195/- Closing Balance is Rs. 78,43,195/-, (Previous year, Loan taken is Rs. 18,36,088/-, Repaid Rs. 1,10,696/-, Maximum outstanding Rs. 69,21,466/- Closing Balance is Rs. 69,21,466/- E. Disclosure under section 22 of the Micro, Small and Medium Enterprises Development Act 2006: Amount due to Micro, Small and Medium Enterprises: Rs. Nil F. The Management of the company has review the existing assets working conditions and utility as at the balance sheet date and are of the opinion that there exists no indication that an asset has been impaired and hence no impairment has been carried out. H. Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. I. Contingent Liabilities: As per information and explanation available to us: Nil J. Figures for the brvious period have been regrouped / reclassified in line with revised Schedule VI as directed by MCA through Notification No. S.O. 447(E). For Harish Davani & Co. Chartered Accountants FRN 005313C Mukesh Vishnani Partner M.No. 409601 For on behalf of Board of Shricon Industries Limited Om Prakash Maheshwari Director DIN:00185677 Naval kishore Maheshwari Director DIN :00185762 Date: 30/05/2014 Kota |