1 SIGNIFICANT ACCOUNTING POLICIES

1.1 BASIS OF ACCOUNTING AND brPARATION OF FINANCIAL STATEMENTS

The financial statements are brpared under the historical cost convention, in accordance with applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provision of the Companies Act, 2013.

1.2 FIXED ASSETS

Fixed Assets are stated at cost less accumulated debrciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use.

1.3 DEbrCIATION / AMORTISATION

Debrciation on Tangible assets has been provided on Straight Line Method as per the useful life brscribed in Schedule-II of the Companies Act, 2013 except for Wind Mills, which is provided on Written Down Value Method. Intangible assets are amortized over estimated useful life of three years on Straight Line Method. Leasehold land is amortize over the period of lease.

1.4 INVESTMENTS

Long-term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Current investments are valued at lower of cost and fair value.

1.5 INVENTORIES

Inventories are valued at lower of cost and net realisable value. The cost is determined on the basis of FIFO Method. For the purpose of finished goods and work-in-process, cost comprises of material cost plus appropriate share of production overheads and excise duty, wherever applicable.

1.6 EMPLOYEE BENEFITS Defined Contribution Plan :

a) In accordance with the provisions of Employees Provident Funds and Miscellaneous Provisions Act,1952, eligible employees of the company are entitled to receive benefits with respect to provident fund, a defined contribution plan in which both the company and the employee contribute monthly at a determined rate (currently 12% of employee's basic salary). Company's contribution to providend fund is charged to statement of profit and loss.

b) The Company has taken a Policy with Life Insurance Corporation of India for the payment of gratuity, a defined contribution plan and brmium paid on the policy has been charged to statement of profit & loss in the year of payment.

Defined Benefit Plan :

a) Gratuity to the Managing Director and Joint Managing Director, who are not covered under the policy with LIC has been provided for on the basis of Actuarial valuation, which is based on their contractual terms.

b) As per Leave encashment policy, the employees other than Managing Director and Joint Managing Director are required to encash accumulated leave before the end of accounting year and accordingly form the part of expenses under the head Salaries and wages. However, liability towards leave encashment benefits to Managing Director and Joint Managing Director inrespect of unavailed leave at the end of their tenure is accounted on cash basis.

1.7 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rate brvailing on the date of the transaction. In case of liabilities incurred for the acquisition of fixed assets, the loss or gain on conversion (at the rate brvailing at the year end) is recognized as income or expenses in the statement of profit and loss. Current assets and liabilities (other than those relating to fixed assets) are restated at the rate brvailing at the year end. The difference between the year end rate and the exchange rate at the date of the transaction is recognized as income or expense in the statement of profit and loss.

1.8 REVENUE RECOGNITION

Sale of goods is recognized at the point of despatch to the customer. Income from Wind Power is recognized at the point of generation. Sales includes excise duty but excludes Sales Tax and discounts. Other Income are accounted on accrual basis.

1.9 TAXATION

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing difference, being the differences between taxable income and accounting income that originate in one peroiod and are capable of reversal in one or more subsequent periods except for carried forward losses, which are recognized only if there is virtual certainty of their realization.

1.10 IMPAIRMENT

An asset is treated as Impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.11 PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognized when there is a brsent obligation as a result of past events for which it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates, contingent liabilities are disclosed after an evaluation of the facts and legal aspects of the matters involved

Notes :

Related parties relationship is as identified by the Company on the basis of information available with them and accepted by the Auditors.

36 brVIOUS YEAR FIGURES

Previous year figures have been regrouped, rearranged and reclassified, wherever necessary to correspond with the current year's clasification / disclosure.

As per our attached report of even date

For S. V. DOSHI & CO.

Chartered Accountants

SUNIL V. DOSHI

Partner

Memerbership No. 35037

For and on behalf of the Board of Directors

D. S. SHAH

(Director)

D. B. SHAH

(Director)

PRIYANKA M. BORKAR

(Company Secretary)

M. G. GANDHI

(Chairman & Managing Director)

K. N. WARDEN

(Director)

BHAVI KORADIA

(Director)

B. G. GANDHI

(Joint Managing Director)

J. M. GANDHI

(Director)

SHOBHANA R. VARTAK

(CFO)  

Place : Mumbai,

date : 16th May, 2016