SIGNIFICANT ACCOUNTING POLICIES 1. Basis of brparation of Financial Statements : The Accounts have been brpared on historical cost convention. The Company follows the accrual basis of accounting. The Financial Statements are brpared in accordance with the Accounting Standards specified in the Companies ( Accounting Standards ) Rules, 2006 notified by the Central Government in terms of section 211 (3C) of the Companies Act, 1956. 2. Use of Estimates : The brparation of Financial Statements in confirmity with generally accepted accounting principles ( GAAP ) in India requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of Financial Statements. 3. Fixed Assets: Fixed Assets are stated at cost less accumulated debrciation. Cost comprises the purchase price or construction cost including any attributable cost of bringing the asset to its working condition for its intended use. 4. Capital Work in Progress : Capital work in progress includes the acquisition/commissioning cost of assets under expansion / acquisition and pending commissioning. Expenditure of revenue nature related to such acquisition/expansion is also treated as Capital work in Progress and capitalised along with the asset on completion of the expansion project or otherwise on commencement of commercial use of the asset. 5. Debrciation and Amortization: (i) Premium on leasehold land is amortised over the balance period of lease. (ii) Debrciation on Assets is provided at the rates specified by Schedule XIV of the Companies Act, 1956 in the following manner: (a) On Buildings and Flats, Plants & Machinery and Furnaces it is provided on Straight Line Method. (b) On other assets it is provided on Written Down Value Method. (c) On Assets added/sold during the year it is provided on pro-rata basis. (d) Additional debrciation is provided, if required, to cover any impairment in the value of Fixed Assets. 6. Valuation of Stock : Stock of raw materials, packing materials, stores & spares are valued at weighted average cost. Cost comprises of purchase cost including all taxes and duties. Traded goods and finished goods are valued at lower of cost or market value/contracted price. 7. Investments: Investments are stated at cost. 8. Operating Lease: Operating lease payments for brmises taken on lease by the Company are recognised as expense in profit and loss account on accrual basis. 9. Borrowing Costs : Borrowing costs that are directly attributable to the acquisition or construction of a qualifying fixed asset are capitalized as part of the cost of that asset. Other borrowing costs are recognised as expense in the Staterment of Profit and Loss on accrual basis. 10. Provisions and Contingencies : A provision is recognised when there is a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on management best estimates of the expenditure required to settle the obligation as at the balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate for each such obligation. A contingent liability is disclosed when there is a possible or brsent obligation that may, but probably will not, require an outflow of resources unless the possibility of such outflow is remote. 11. Revenue Recognition: a) Sales and services are recognised on despatch of goods to customers and is net of sales returns and taxes.Scrap sale is accounted upon sale. b) Foreign commission is recognised on shipment of goods by foreign principals. Local commission is accounted on accrual basis. c) Rent, Interest and other income are accounted on accrual basis. d) Dividend income is accounted as and when right to receive dividend is established. 12. Staff Retirement Benefits : Defined benefit plan : The Company accounts for the defined benefit plans such as gratuity and leave encashment on accrual basis. Gratuity and leave encashment liability has been determined by an actuarial valuation report based on AS - 15 (revised) obtained as at 31st March, 2013. 13. Taxes on Income: Current tax provision is determined on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act. The Deferred tax for all timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that these would be realised in future. 14. Foreign Currency Transactions : Transactions in foreign currency are recorded at the exchange rate brvailing on the date of transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the Statement of Profit and Loss of the year. Monetary assets and liabilities denominated in foreign currencies, which are outstanding as at the year end are translated at the closing exchange rate and the resultant exchange differences are recognised in the Statement of Profit and Loss.
Notes on Financial Statements for the Year ended 31st March, 2016 1. The value of stocks include all taxes and duties. Cenvat is credited to statement of Profit & Loss on consumption basis. Cenvat related to year-end stock is carried forward in Balance Sheet under the head 'Other Laibilities'. 2. Excise duty liability on Finished Goods stock has not been provided and also not included in the valuation of Finished Goods stock. However, it has no impact on Statement of Profit & Loss. 3. The brvious year's figures have been regrouped / reclassified wherever necessary. Notes referred to above form an integral part of the Balance Sheet and Statement of Profit and Loss. As per our Report attached For D. P. GHEVARIA & CO. Chartered Accountants Firm Regn. No.103176W D. P. GHEVARIA Proprietor Membership No.032431 S. C. MALHOTRA (DIN: 00026704) Chairman RANJIT MALHOTRA (DIN: 00026933) Vice Chairman DILEEP MALHOTRA (DIN:00027168) Joint Managing Director UMA R. MALHOTRA (DIN: 06848613) Directors R. A. MASKATI (DIN: 00057850) Directors B. C. GANDHI (DIN: 00780094) Directors C. P. SHAH (DIN: 00450394) Directors S. K. GULATI Director Finance & Company Secretary Mumbai, May 26, 2016 |