SIGNIFICANT ACCOUNTING POLICIES (1) Basis of Accounting The financial statements are brpared on historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 2013. (2) Revenue Recognition Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. (i) Sale of goods Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales revenue is net of sales return, discounts and rebates. (ii) Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. (iii) Rent Revenue is recognized on accrual basis. (3) Fixed Assets Tangible Assets-Tangible Assets are stated at cost net of recoverable taxes less accumulated debrciation. All costs including financing costs till commencement of commercial production are capitalized. (4) Debrciation Debrciation on Tangible Assets (other than Freehold land on which no debrciation is charged) is provided to the extent of debrciable amount on straight line method based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. Debrciation on additions/deductions during the year is provided on pro-rata basis. (5) Investments Long term investments are stated at cost. (6) Inventories Stock of raw materials/components and traded goods are valued at cost. Stock of finished goods is valued at cost or market value whichever is lower. Stores and spares are valued at cost. The cost of finished goods includes materials costs, conversion costs and other costs incurred in bringing the goods to the brsent location and condition. (7) Transactions in Foreign Currency Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Premium on forward cover contracts, if any, in respect of imports is charged to profit & loss account over the period of contract. All monetary assets and liabilities as at the Balance sheet date, not covered by forward contracts are restated at the applicable exchange rates brvailing on that date. All exchange differences arising on transactions, not covered by forward contracts, are charged to Profit & Loss Account. (8) Employee Benefits (i) Short Term Employee Benefits: Short Term Employee Benefits in the form of bonus is recognized as an expense in the Profit & Loss Account of the year in which the related services is rendered. (ii) Long Term Employee Benefits:- (a) Defined Contribution Plan The Company has Defined Contribution plans for post employment benefits in the form of Provident Fund and Pension Scheme administered through the Government of India. Under the Provident Fund Plan and Pension Scheme, the Company contributes to a Government administered provident fund on behalf of its employees and has no further obligation beyond making its contribution. The Company's contributions to the above funds are charged to revenue every year. (b) Defined Benefit Plan The Company has a Defined Benefit plan namely Gratuity for all its employees. Liability for Defined Benefit Plan is provided on the basis of valuation, actuarially determined, by an independent agency namely, Life Insurance Corporation of India. Liability for Defined Benefit Plan is recognized as an expense in the Profit & Loss Account for the year in which employee has rendered services. The expense is recognized at the brsent value of the amounts payable determined using actuarial valuation techniques. (9) Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred. (10) Taxation Tax expenses comprise current tax and deferred tax charge/credit. The deferred tax charge / credit are recognized using current tax rates. Deferred tax assets/ liabilities are reviewed as at each Balance Sheet date. (11) Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements. (12) Impairment of Assets The Company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the assets. If such recoverable amount of the assets or the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. If at the Balance Sheet date, there is an indication that if a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciated historical cost. 2. Contingent liability and Commitments: (I) Contingent Liabilities (a) Claims against the Company not acknowledged as debts rebrsent suits filed by parties and disputed by the Company Rs.25,45,484/- (Previous Year Rs.25,45,484/-) 3. The brvious year's figures are grouped / regrouped or arranged / rearranged wherever necessary to make them comparable with the current year's figures. As per our report of even date For CHANDAN PARMAR & Co., Chartered Accountants Deepak H. Padachh Partner Mem bership No. 45741 On behalf of the Board J.R. Mehta Managing Director Shailesh Sankav Chief Financial Officer A. J Mehta Director Gayatri Valan Company Secretary Place: Mumbai Date: 29.05.2015 |