SIGIFICANT ACCOUNTING POLICES 1. FIXED ASSETS: Fixed Assets are stated at cost of acquisition and subsequent improvement thereto inclusive of taxes, duties, freight and other incidental expenses related to acquisition, improvement and installation. 2. DEbrCIATION: Debrciation on Fixed Assets has been provided as per Written down Value Method as per the Useful Lifes brscribed under Schedule II of the Companies Act, 2013. 3. REVENUE RECOGNITION: Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of the products are transferred to customers net of rate difference and discount given. 4. INVENTORIES: Inventories are valued on the following basis: a) Raw Material at Cost b) Work In progress at cost C) Finished goods at lower of cost and net realizable value. 5. MISCELLANEOUS EXPENDITURE: Miscellaneous expenditure is amortized over the number of years, as brscribed in the provision of Income Tax Act, 1962. 6. SYSTEM ACCOUNTING: The company adopts the accrual concept in the brparation of the accounts. 7. INFLATION: Assets and Liabilities are recorded at historical cost at the company. These costs are not adjusted to the reflect the changing value in the purchasing power of money. 8. CONTIGENT LIABILITIES: Contingencies are disclosed. 9. PRIOR PERIOD ADJUSTMENTS, EXTRA - ORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICY: There are no prior period adjustments, extra - ordinary items and no changes in accounting policy as compared to brvious years. NOTES TO THE ACCOUNTS 1. The estimated amount of contracts remaining to be executed on capital account and not provided in the books of accounts : Rs. Nil 2. Contingent liabilities in respect of : a) Claims against the company not acknowledged as debits b) Dispute Liability: I. Sales Tax Rs. 113.00 lakhs 3. The Company has not changed the method of valuation of stocks of Raw Material, Work - in- progress and finished goods 4. Proper provision for income tax is provided in the books after considering the Tax Deducted at source and brought forward loss 5. RETIREMENT BENEFITS a) Gratuity: As the company has no employees working for than five years, no gratuity has been provided by the company in the accounts. However, the management will be taking steps to introduce Group Insurance Scheme with the Life Insurance Corporation of India for Gratuity payment. b) Provident Fund: The Company is making to enrol with P.F.Authorities. 6. Reimbursement of expenses i.e., conveyance and food etc has been provided to Directors for attending Board Meeting held during the year. 7. Preliminary expenses have been amortized as per the provision of section 35D of the Income tax act, 1951 8. Sundry Debtors/Creditors/ Loans and Advances and subject to the confirmation and reconciliation. For SOUTHERN LATEX LIMITED N. Neelakanda Pillai Managing Director Murali Krishnan Director V K Balaji Director Director For Kannan & Alamelu Chartered Accountant (FR.No.009087S) -sd- A.K. Alamelu Partner Membership No. 206906 Place: Chennai Date: 30.05.2015 |