SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting: The Company brpares its financial statements on historical cost basis and in accordance with applicable accounting standards and generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 2013 and provisions of Companies Act, 1956 to the extent applicable. Use of Estimates The financial statements in conformity with GAAP requires that the management makes estimates and assumptions that affect the reported amount of assets and liabilities, disclosures of contingent liabilities as at the date of the financial statements and the reported amount of revenue and expenses during the reported period. Examples of such estimates include future obligation under employee benefit plans, income tax liability and useful life of fixed assets. Contingencies recorded when the same is probable of cash out flow and amount can be reliably estimated. Other contingencies are disclosed as Contingent liability. Actual results can differ in case of estimates. Income & Expenditure: Accounting of Income & Expenditure is done on accrual basis. Revenue Recognition: Revenue from job work charges is accounted for on the basis of raising the invoice on completion of jobs. Revenue from sales is recognized on actual dispatch of goods along with transfer of risk and rewards thereof. Fixed Assets-Tangible/Intangible & Debrciation/ Amortization: a) Fixed Assets are stated at their original cost of acquisition, inclusive of inward freight, duties and expenditure incurred in the acquisition, construction/ installation. b) Assets acquired from the partnership firm on its dissolution are shown as addition to fixed assets and WDV as on date of dissolution is considered as cost. c) Debrciation is charged on Straight Line Method in accordance with the useful life of the asset provided in Schedule II of the Companies Act, 2013. d) Cenvat credit availed on Capital Goods is accounted for by credit to respective Fixed Assets. e) Intangible assets are amortized over the period of useful life of the asset subject to maximum life of amortization as referred in AS-26 on Intangible Assets. Inventories: Method of Valuation a) Raw Materials and components - at cost or market price whichever is less. b) Finished Goods - at cost or market price whichever is less. Contingent Liabilities: Contingent Liabilities are determined on the basis of available information and are disclosed by way of Notes to the Accounts. Foreign Currency Transactions Foreign currency transactions are initially recorded at the exchange rates brvailing at the time of execution of the transaction. Monetary items are revalued at the yearend exchange rates and difference is charged to the statement of profit and loss. Employee Benefit The Employee benefits comprising defined benefit plan and defined contribution plan. Defined contribution plan is recognized as expenses on accrual basis to the extent of Company's contribution as an employer. Defined benefit plan of gratuity and the same are provided as expenses on the basis of demand raised by insurance Company. Leave encashment benefit is accounted for on the basis of accumulated entitlement of the employee as at the end of the year and valued on last salary drawn. Sales Sales are stated net of discounts allowed and excise duty paid. Excise Duty Excise Duty is accounted for as expense at the time of goods cleared. Also provision has been made for excise duty payable on closing stock of finished stock as at the end of the year. Unless specifically stated to be otherwise, these policies are consistently followed. 3. Previous Year figures have been regrouped or re-casted wherever considered necessary. FOR AND ON BEHALF OF THE BOARD FOR O. P. BAGLA & CO CHARTERED ACCOUNTANTS FIRM REGN NO. 000018N Sd/-(R. K. GUPTA) Managing Director DIN: 00019125 Sd/- (RAKESH KUMAR) Partner Sd/- (SATISH CHAND) Director DIN: 02615736 Sd/- (J. S. DALAL) Director DIN: 02251250 Sd/- (KAJAL GUPTA) Company Secretary PAN: AKQPG0886Q Place : New Delhi Dated : 30/05/2015 |