Note: 1 Significant Accounting Policies: A: Corporate Information Eureka Industries Limited (the company) is a public limited (Listed) company domiciled in India and incorporated under the provisions of the companies Act, 2013. B: Accounting Convention: The Financial Statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India including the applicable Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. The Financial Statements are brpared on going concern assumption and under the historical cost convention. C: Presentation and disclosure of financial statements The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for brparation of financial statements. However, it has significant impact on brsentation and disclosures made in the financial statements. The company has also reclassified the brvious year figures in accordance with the requirements applicable in the current year. D: Use of estimates The brparation of financial statements in conformity with Accounting Standards requires the management to make judgment, estimates and assumptions that affect the reported amounts, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Differences between the actual result and estimates are recognized in the period in which the results are known / materialized. E: Borrowing Cost a) Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All other borrowing costs are charged to revenue. b) A qualifying asset is an asset that necessarily requires substantial period of time to get ready for its intended use or sale. F: Impairment of Assets The carrying amount of assets is reviewed at each balance sheet date to determine whether there is any indication of Impairment of assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. G: Investments a) Long Term Investments are stated at cost. b) Current Investments are carried at lower of cost and fair value as on the Balance Sheet date. c) Provision for diminution in value of long term investments is made, if the diminution is other than temporary. H: Revenue recognition a) The Company generally follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except those with significant uncertainties. b) Sale of goods is recognized when the risk and rewards of ownership are passed on to the customers, which is generally on dispatch of goods. c) Dividend Income is recognized when the right to receive the dividend is unconditional at the Balance Sheet date. d) Claims made by the Company and those made on the Company are recognized in the Statement of Profit and Loss as and when the claims are accepted. I: Employee benefits Provident Fund and Leave Encashment: Contribution to provident fund and provision for leave encashment is charged to profit & loss Statement of the year when the contributions to the fund are due. Gratuity: Provision for gratuity liability is made based on actuarial valuation as at the Balance Sheet date and is charged to profit & loss statement. J: Taxes on Income a) Tax on income for the current period is determined on the basis of estimated taxable income computed in accordance with the provisions of the Income Tax Act, 1961. b) Deferred Tax is recognized on timing difference between the accounting income and the estimated taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. c) Deferred tax assets which arise mainly on account of unabsorbed losses or unabsorbed debrciation are recognized and carried forward only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. Looking to the brsent scenario of the Company there is no certainty to recover DTA in near future, hence DTA has not been recognized. K: Contingent Liabilities & Contingent Assets A provision is recognized when the company has brsent obligation as a result of past event, 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 of the amount of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimate are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are not provided for and are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed the statements. 1 Balances of Sundry Creditors, Debtors, Receivables, Payables, Loans & Advances to various parties / various authorities are subject to confirmation from the respective parties and necessary adjustments if any, will be made on its reconciliation. 2 In the Opinion of the Board of Directors the aggregate value of Current Assets, Loans & Advances on realisation in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet. 3 Previous Years figures have been re-arranged and re-grouped, wherever necessary to make them comparable with those of current year. For Kothari Sangawat & Associates. FOR AND ON BEHALF OF Chartered Accountants BOARD OF DIRECTORS F.R.No.- 132985 W (Ketan Gandhi) Director (Narayan B. Prajapati) Director Sunil Kothari Partner M.No.- 104384 (Aashish M. Modi) CFO Date: May 29, 2015. Place :Ahmedabad: |