ACCOUNTING POLICIES: A] I] Accounting convention: The financial statement of accounts have been brpared on the historical cost convention and on going concern concept. Accrual system of accounting is generally followed. The accounts have been brpared to comply in all material aspects with applicable accounting principles in India and the Accounting Standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. II] Use of estimates The brparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. B] Fixed assets: Fixed assets are stated at cost less debrciation. C] Debrciation: Debrciation has been provided on the fixed assets on the WDV method u/s 205(2)(B) of the Companies Act, 1956 consistent with the accounting policy, at the rate and in the manner laid down in Schedule XIV of the Companies Act, 1956.Debrciation on the fixed assets added or sold during the has been calculated on the pro-rata basis from the date of addition and/or up to date of sale. D] Investments: Long term investments are valued at cost (Unquoted). E] Inventories: Inventories are valued as under: * Raw Material is valued at cost. * Finished goods are valued at lower of cost or net realizable Value. F] Revenue Recognition Sales are recognized when the title to the goods is passed on to the buyer. Sales are recognized net of sales tax and other charges. 2] Information u/s. 217(2A) of Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 and forming Part of Directors Report for the year ended 31-03-2010. Details of Employees drawing salary not less than Rs.24, 00,000 P.A. or Rs. 2, 00,000 P.M. : NIL 3] Segment reporting The company has disclosed PVC, HDPE & LATERAL PIPES business segment as primary segment. The turnover from business segment is Rs. 9.19 lacs. 4] Company has not made any provision in respect of interest payable on raw material advance given by G.S.C.I informs that the matter is still pending before honorable Gujarat High court. By an interim order dated 13-10-2000 ordered the company to pay upto at least 20% of the outstanding amount by 15-11-2000.the order further stated to approach GSIC has not responded to the request of interest waiver made by the company, the honorable Gujarat high court by its order dated 16-08-2002,has disposed of the petition laying down criteria's for determination of (a) amount to be paid (b) the manner in which the installments to be determined in view of financial condition of the company and (c) the rate of interest which shall in no case exceed 12 % The company however has not made any provision for interest payable to G.S.I.C. Amount unascertained. To the extent of non provisioning the expense and losses of the company are understated. 5] The company has not made any provision for income tax in view of losses. 6] No provision has been made for short fall in the value of the investment in M/S Nada Dyes & Chemicals as well as advances granted to it. Considering all the relevant facts, full amount deserved to be written off. To that extent, the losses of the company are under stated. 7] In view of uncertainty of future income to wipe off the accumulated lossess of the company, deferred tax provisions have not been considered. 8] We draw attention of the members towards the deteriorating financial status of the company. The company has accumulated losses of Rs. 186.95 lacs as against the paid up capital of Rs.362.74 lacs. As such substantial part of the capital has been wiped out by losses. 9] In the opinion of directors, all current assets, loans and advances are approximately of the value stated if realized in ordinary course of business and provision for all known liabilities are adequate and not in excess of amount reasonably necessary. 10] Debit/Credit balances under the head "Current Liabilities", "Sundry Debtors", "Unsecured Loans", "Loans and Advances" and deposits are subject to confirmation from respective parties. 11] Previous year's figures are regrouped whenever necessary. For, M/s. S.D.Mehta & Co. Chartered Accountants (Shalshav Mehta) Proprietor For And On Behalf Of The Board Managing Director Whole Time Director Place: Ahmedabad Date: 21/08/2012 |