ACCOUNTING POLICIES a BASIS OF brPARATION OF FINANCIAL STATEMENTS The financial statements are brpared in accordance with the Indian Generally Accepted Accounting Principles"(GAAP)" under the historical cost convention o n accrual basis. These financial statements have been brpared to comply in all material aspects with the accounting standards as notified under section 133 of the Companies Act, 2013, read with Rule 7 of [Companies Accounts’ Rules, 2014, as amended], and other relevant provisions of Companies Act, 2013, and the guidelines issued by the Securities Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. b USE OF ESTIMATES The brparation of financial statements is in conformity with the generally accepted accounting principles requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the reporting period. Although these estimates are based on the managements' best knowledge of current events and actions that the Company may undertake in future, the actual results could differ from those estimates. Any material changes in estimates are adjusted prospectively. c TANGIBLE ASSETS Tangible assets are stated at cost or at revalued amounts les s accumulated debrciation. Cost of fixed assets includes all incidental expenses and interest costs on borrowings, attributable to the acquisition of qualifying assets, up to the date of commissioning of assets. An item of fixed assets is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the fixed asset calculated as the difference between the net disposal proceeds and the carrying amount of the asset is included in the financial statements in the year the asset is de-recognised. d DEbrCIATION Debrciation on fixed assets is charged in accordance with estimate of useful life of the assets, on straight line method, at rates specified in Schedule II of the Companies Act, 2013. Debrciation on assets purchased during the year is provided pro-rata to the period such asset was put to use during the year. In respect of an asset for which impairment loss is recognised, debrciation is provided on the revised carrying amount of the assets over its remaining useful life. e IMPAIRMENT OF ASSETS Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indication exists, the recoverable value of assets is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount, the latter being greater of net selling price and value in use. f RECOGNITION OF REVENUE AND EXPENDITURE Income and expenditure are accounted for on accrual basis. g TAXES ON INCOME Provision for current income tax is made as per the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future h EARNINGS PER SHARE The Company reports basic and diluted per equity share in accordance with Accounting Standard(AS)20, "Earnings per Share" issued by the Institute of Chartered Accountants of India. Basic earnings per equity share is computed by dividing net income by the weighted average number of equity shares outstanding for the year. Diluted earnings per equity share is computed by dividing net income by the weighted average number of equity shares outstanding including shares pending allotment. i CASH FLOW STATEMENT Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. j CASH AND CASH EQUIVALENTS Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, and short term investments with an original maturity period of three months or less. k PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provision involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements. 2 EMPLOYEE BENEFITS AS - 15 REVISED There is no employee who is covered under Retirement Benefits at the end of the year, and the directors have waived their rights to receive retirement benefits, and therefore, no provision for retirement benefits is required to be made in the financial statements. 3 In the opinion of the Board, the assets, other than fixed assets, do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. 4 Balances with various customers, suppliers, creditors and advances recoverable are subject to confirmation/ reconciliation and consequential adjustments. 5 A demand of Rs. 46.67 lacs has been raised by Employees' Provident Fund Organisation against which appeal has been filed with 'Employees Provident Fund Appellate Tribunal EPFAT' challenging the validity and correctness of the Order. On Company's appeal, EPFAT stayed the Order with the condition to deposit Rs. 11.50 lacs. The Company does not consider itself liable on its account and accordingly, no liability has been provided in the books of account as the Company has been advised that no liability is likely to crystallize on this account. 6 The Company has challenged the constitutional validity of entry tax levied in April 2010, in the State of Himachal Pradesh, and a writ petition filed by the Company is pending before the Hon'ble High Court of Himachal Pradesh at Shimla, the Company dose not consider itself liable and accordingly, no liability has been provided in the financial statements of the Company. 7 The Company closed its glass manufacturing unit on December 25, 2012, with the permission of Labour Commissioner, Government of Himachal Pradesh, and since paid legal dues to all its employees, including Settlement Awards directed to be paid by April 15, 2013, in term of directions of Labour-Cum-Conciliation Office, Baddi Himachal Pradesh dated December 28, 2012. 8 During the year ended March 31, 2015, the Company incurred a loss of Rs. 30,43,059, and has accumulated losses of Rs. 16,13,23,054 as against 'Share Capital and Reserves' of Rs. 10,00,00,000. The Board of the Company is exploring and evaluating various business opportunities for which resources are required to be raised. The Company executed agreement to sell for sale of factory land at Village Tipra, Barotiwala, District Solan, Himachal Pradesh, to raise funds for the purposes. Accordingly, the accounts of the Company have been brpared on a going concern basis. The said sale deed shall be executed upon obtaining relevant approvals/permission/clearances as required for the said date. 9 The Company has not recognised deferred tax assets that relate to unused tax losses and unabsorbed debrciation, as it is not probable that future taxable profit will be available against which the Company can utilize the benefits. 10 Pursuant to applicable provisions of the Companies Act, 2013, effective April 1, 2014, the Company has revised the rate of debrciation on fixed assets in accordance with the useful life of the assets specified in Part 'C' of Schedule II of the said Act. 11 The Company is not regular in depositing its statutory dues due to financial constraints. The overdue outstanding as at March 31, 2015, were in respect of service tax, barrier tax, ESI, value added tax/central sales tax, mandi tax, amounting to Rs. 12,21,397, Rs. 10,36,036, Rs. 10,30,064, Rs. 7,27,687, Rs. 1,87,606, respectively. No provision for interest, penalties, and other levies, if any, on overdue statutory payments has been made, as the same will be accounted for as and when paid/settled. 12 Previous year figures have been regrouped/recast, where ever necessary, to confirm with this year's brsentation. The accompanying notes form an integral part of the financial statements. C.M. Marwah Managing Director DIN:00172818 Samir Katyal Director DIN:00645810 Place : New Delhi. Date : May 28 , 2015 |