Notes forming part of financial statements for the year ended on 31st March 2015. Note:1 Significant Accounting Policies a) Basis of Preparation The Financial Statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) on Accrual basis. Under the Historical cost convention & to comply in all material respect with the notified Accounting standards brscribed by Section 133 of the Companies Act,2013 read with Rule 7 of companies (Accounts) rules, 2014 and guidelines issued by SEBI. ii) The brparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balance of assets and liabilities the disclosure of contingent liabilities as at the date of the financial statement and reported amounts of income and expenses during the period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized. b) Fixed Assets Fixed Assets are stated at their Original Cost of acquisition less accumulated debrciation .The cost of Fixed assets include freight. Taxes duties and other incidental expenses related to acquisition and any other attributable cost of bringing the asset to its working condition for its intended use. c) Debrciation Debrciation on Fixed Assets has been provided on straight Line Method over the useful lives of assets estimated by Management. Debrciation for asses purchased sold during a period is proportionately charged. The Management estimates the useful lives for other fixed assets as follows: Asset - Useful Life Building -30 years Plant & Machinery -20 years Office Equipment-15 years Computer Equipment- 6 years Furniture & Fixture -15 years Vehicle -10 years d) Inventories Inventory of Goods are valued at Cost. e) Investment Long term investments are stated at cost. Provision of Diminution in the value of long term investments is made only if such decline is other than temporary in nature in the opinion of management. f) Revenue Recognition: Sale of goods is recognized when significant risk and rewards is transferred amount can be reliably measured and it is reasonable to expect ultimate collection Turnover includes sale of goods. Sales tax and adjusted for value added tax, interest income is recognized on time proportion basis taking into consideration the amount outstanding and rate applicable Interest on overdue installments/defaults & Municipal Tax is accounted on cash basis. g) Employee Benefits: Provision for employees benefit (gratuity) is made on rationale basis for gratuity while provision for other benefits such as leave encashment has not been made. This accounting policy of company is not in compliance with AS 15- employee Benefits” issued by the institute of Chartered Accountants of India which brscribes Actuarial Valuation. h) Income Taxes Provision for current tax is made after taking into consideration benefits admissible under the provisions of the income tax Act. 1961. Deferred tax resulting from “ timing difference” between taxable and accounting income is accounted using the tax rates and laws that are enacted or substantively enated as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Minimum alternate tax(Mat) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability is recongnized as an asset in the Consolidated Balance Sheet if there is convincing evidence that the company will pay normal tax in future and the resultant asset can be measured reliably. i) Provisions contingent Liabilities and Contingent Assets: Provisions are recognized when the company has brsent obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Contingent Liabilities are disclosed by way of notes of accounts. Contingent Assets are neither recognized nor disclosed in the financial statements. J) Earnings Per Share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The Weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue. Bonus element in a rights issue share split and reverse share split ( Consolidation of shares) that have changed the number of equity shares outstanding without a corresponding change in resources. k) Miscellaneous expenditure Miscellaneous expenditure is written off to the Profit & Loss account as and when they are incurred. 2. Notes forming part of accounts a) The company does not have the policy of encashment of leave and hence no provision is made for liabilities or retirement benefits.The effect of the same can not be quantified to that extent profit for the year and balance of profit & loss account is overstanted. b) The Company has invested an amount of 32,64,092 in the shares of associates and no provision is made for diminution in the value of investment. c) No provision has been made for doubtful sundry debtors of Rs. 130.93 lac& doubtful advance of Rs. 49.23 lacs exceeding six months as the company is in the process of initiating available recourse against the said debtors and the company is hopeful of the recovery of the same. d) In view of the non-availability of the bank statement for bank account balance with banks are subject to confirmation & reconciliation will be made on receipt of the same. e) The balances shown in the Balance sheet under the head of unsecured loans. Creditors Debtors and Loans and Advances are each subject to confirmation from respective parties and are subject to adjustment if any on receipt of confirmation. f) The company has nor received any intimation from suppliers regarding their status under Micro and Medium Enterprise Development Act,2006 and hence disclosure if any relating to the amounts unpaid as at year end together with interest paid/payable as required under the said Act have not been given. g) The figures of the brvious year have been rearranged and regrouped wherever considered necessary so as to confirm to the current year classification. For V.S Manwani & Co., Chartered Accountants FRN:140076W Sd/- Vijay Manwani Proprietor MN.162129 For Madhur Industries Ltd Vinit Parikh Director (DIN: 0049452) Shalin Parikh Director (DIN:00494506) Place: Ahmedabad Date: May 30,2015 |