Note: 1 SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNT. I. Method of Accounting - The Company follows Mercantile System of accounting except in the case of significant uncertainties. II. Fixed Assets - Fixed Assets are stated at historical cost less accumulated debrciation upto date. Cost includes financial charges pertaining to respective assets upto the date of commencement of their commercial production. III. Debrciation a. Debrciation on building is provided on straight line method at the rate specified in schedule II to the Companies Act., 2013. b. Debrciation on assets other than stated in (a) supra is provided on written down value method at the rate specified in Schedule II of the Companies Act., 2013. c. Debrciation on all assets acquired on or after 1st April, 2014 is provided on straight line method at the rate specified in schedule II of the Companies Act., 2013. IV. Inventories The basis of valuation of inventories is as follows: a. Raw Material at cost b. Work in Process at cost c. Finished Goods at cost or market value, whichever is lower. d. Consumable Stores at cost. V. Employee's Retirement Benefits - Incremental liability for gratuity for the year is accounted on accrual basis VI. Contingent Liabilities - Contingent liabilities are determined on the basis of available information and no provision has been made in the books of account. However these are separately disclosed by way of Notes to Accounts. VII. Borrowing Cost - Borrowing cost incurred in relation to the acquisition, construction of Assets are capitalised as the part of the cost of such assets up to the date when such assets are ready for intended use. Other borrowing cost are charged as expense in the year in which these are incurred. VIII. Other Accounting Policies - These are consistent with the generally accepted accounting practices. IX. Accounting for Taxes on Income - Current tax is the amount of tax payable on taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred Tax is recognised on timing differences. Being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. 1 According to directors technical assessment, there is no impairment in the carrying cost of cash generating assets of the Company in terms of Accounting Standard 28 (AS 28) issued by the Institute of Chartered Accountants of India. 2 The ba la nce of sundry debtors, creditors, secured, unsecured loans and loans & adva nce a re subject to the confirmation. 3 Contingent Liabilities: Non provision of dividend on 11% Cumulative Redeemable Preference Shares amounting to Rs. 37.40 lakh (Prev. Year: 35.2 lakhs) 4 Foreign Currency Transactions: Value of Imports on CIF Basis: - - Expenditure in Foreign Currency: - 29,960 Earning in Foreign Currency: - - As per our report of even date attached For and on behalf of the Board For CPM & Associates Chartered Accountants Firm Registration No. 114923W Navin Pansari Chairman M.No.036082 Anurag Pansari Managing Director Chandra P Maheshwari Partner Abhinav Patodia Chief Financial Officer Radhika Jharolla Company Secretary Place : Mumbai. Dated: 30th May, 2015 |