NOTES FORMING PART OF THE BALANCE SHEETAS AT MARCH 31 2015 AND OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.2015. 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES: A) SYSTEM OF ACCOUNTING : I) The company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis, except in case of significant uncertainties. II) Financial statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the purchasing power of money. B) REVENUE RECOGNITION I) Discount received in respect of Bills Discounted is apportioned over the period of usance of the instruments. II) Interest on delayed payments is accounted on ascertainment of reliability. III) Dividends from Mutual Fund are accounted for on the basis of statement received from the Mutual Funds. C) FIXED ASSETS& DEbrCIATION: I) Fixed assets are stated at cost of acquisition and other attributable costs less debrciation. II) The Company is consistently providing Debrciation on Written Down Value Method based on useful life of the assets. IU) Debrciation on additions/deletions is calculated on a pro-rata basis. D) BILLS OF EXCHANGE AND LOANS & ADVANCES: Specific cases identified as irrecoverable or doubtful are written of or provided for respectively. E VALUATION Of CLOSING STOCK Closing stock is valued at Cost or Market Value, whichever is lower. And the Market Value of closing stock as on 31st March 2015 is Rs.24,31,669/-{ Previous year Rs. 24,20,518/-) 2. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the institute of Chartered Accountants of India, the Company has accounted for deferred tax during the year, consequently the deferent liability of Rs.1,15,782/-as on 31st March, 2015 has been recognized (Previews year Rs. 2,18,915/-) The deferred tax liability for the year amounting to Rs, 1,03,133/- which has been reversed, and has been recognized in the Profit and Loss Account. In the absence of information regarding the status of micro, small and medium enterprises, as defined under "Micro, Small and Medium Enterprises Act, 2006" amounts overdue and remaining unpaid, if any, on account of principal and/or overdue interest at the close of the year to these suppliers Could not be determined. There are no transactions with related parties except for sitting fees paid Rs,6000/- to Mr. D. J. Engineer Director, Mr. K. V, DcliwaEa Rs.6000/-,Mr.N.J. Shah Rs.6000/-. Mr.V.B.Shah Rs.4500/-, Mrs. J. M, Deliwaa Rs.3000/-and Rs.6000/-to Mr.M.K.Deliwala Chairman. Figures for brvious year have been regrouped where considered necessary and practicable. For M. S. PARIKH & CO. Chartered Accountants Firm Regn no : I0755SW Dharmesh A. Parikh Partner For and on behalf of the Board of Directors N. D. SHAH Chief Executive Officer I. D. PATEL Company Secretary M, K. DELIWALA CHAIRMAN D. J. ENGINEER - DIRECTOR N.J. SHAH K, - DIRECTOR V. DELIWALA - DIRECTOR V. B. SHAH - DIRECTOR Place : Mumbai: Date : 29th May. 2015 |