1 SIGNIFICANT ACCOUNTING POLICIES : A) GENERAL 1 The accounts are brpared on the basis of the Historical Cost Convention and in accordance with generally accepted accounting principles, provisions and Accounting standard notified under section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rule, 2014, All the assets and liabilities have been classified as current or non current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. 2 The company follows mercantile system of accounting and recognises income and expenditure on accrual basis. Interest on unpaid call money is accounted for as and when received. 3 Sales include sale of by-products and are net of sales tax if any and includes subsidy. 4 Investments are valued at cost of acquisition. Only permanent diminution in the value of investments meant to be held for long term is recognised. B) EXCISE DUTY Liability for excise duty payable on finished products has been accounted in respect of goods lying at the end of the year and added to the value of closing stock. C) FIXED ASSETS (a) Fixed Assets are stated at cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets and net off cenvat. (b) Impairment of Assets : The carrying amount of assets are reviewed at each Balance sheet date if there is any indication of impairment based on internal / external factors. If the carrying amount of the asset exceeds its estimated recoverable amount, an impairment loss is recognised in the Statement of Profit & Loss to the extent the carrying amount exceeds recoverable amount. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the assets, no longer exists or have decreased. D) DEbrCIATION Debrciation is provided on straight-line method, at the rates brscribed in Schedule II to the Companies Act, 2013 on a pro-rata basis commencing from the month of addition, except in case of plant and factory building of edible oil refinery and solvent extraction units and Sulphuric Acid plants, where the Debrciation is provided on written down value method. E) INVESTMENTS Investments are stated at cost less any diminution in their value, which is other than temporary. F) INVENTORIES Raw materials, Work in Process and at cost on First in First out (FIFO) basis or net realisable value whichever is lower. Packing materials Raw material and Work in Process are not written down below cost if the finished product in which they will be incorporated are expected to be sold at or above cost. Finished goods At cost or net realisable value whichever is lower. The cost is computed on weighted average method and includes cost of materials, cost of conversion and other costs incurred in acquiring the inventory and bringing them to their brsent location and condition. Stores & spares At Cost on FIFO basis. G) BORROWING COST Borrowing costs attributable to the acquisition or construction of fixed assets are capitalised as part of cost of the assets, upto the date the asset is put to use. Other Borrowing cost are charged to Statement of Profit & loss in the year in which they are incurred. H) SUBSIDY RECEIVABLE Subsidy receivable is accounted on the basis of actual sales and the deductions if any from the same, made by the Certifying Authority, are accounted as and when the same are communicated to the Company. 1 Sales are recognised, net of returns and trade discounts, on despatch of goods to customers. 2 Revenue in respect of insurance / other claims are recognised only when it is reasonably certain that the ultimate collection will be made. J) FOREIGN CURRENCY TRANSACTIONS Foreign currency transactions are accounted for at the exchange rates brvailing on the date of such transactions where these are not covered by forward contracts. Liabilities in foreign currencies as on the date of balance sheet are converted at the exchange rate brvailing on that date. Exchange difference in respect of liabilities incurred to acquire fixed assets prior to April 1, 2007, are adjusted to the carrying amount of such fixed assets and in other cases, are recognised as income or expense in the period in which they arise. K) PROVISION FOR RETIREMENT BENEFITS i) Short term Employee benefits Short term employee benefits are recognised as an expenses at the amount disclosed in the Statement of Profit and Loss for the period in which the related service is rendered. ii) Post employment benefits Post employment benefits are determined using the projected unit credit method, with actuarial valuation being carried out at Balance sheet date. Actuarial gains and losses are recognised in full in the Statement of Profit and Loss for the period in which they occur. Defined benefit plans : The Government provident fund scheme is funded contribution plan and the employee gratuity fund scheme is an funded defined benefit scheme. iii) Long Term Employee benefits The obligation for Long Term benefits such as Long Term Compensated absence, is defined benefit which is unfunded. L) TAXES ON INCOME 1 Tax expense consists of both current as well as deferred tax liability. Current tax rebrsents amount of Income tax payable including the tax payable u/s 115JB, if any, in respect of taxable income for the year. 2 Minimum alternate tax credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal Income tax within the specified period. 3 Deferred Tax is recognised on timing difference between the accounting income and the taxable income for the year that originates in one period and are capable of reversal in one or more subsequent period. Such Deferred Tax is quantified using the tax rates and laws enacted or substantively enacted as on Balance sheet date. M) EARNING PER SHARE The Company reports basic & diluted earnings per share (EPS) in accordance with Accounting Standard 20 on earnings per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive. 1 Pursuant to Section 135 of the Companies Act, 2013 and (Corporate Social Responsibility Policy) Rules, 2014, company has to spend CSR expenditure of X 46.74 Lacs in the current financial year under review, but company could not spend money due to huge losses and also liquidity problem arised due to delay in release in subsidy receivable from Government. Gross amount required to be spent by the company during the year is X 46.74 Lacs which remains unspent. 2 brVIOUS YEAR FIGURES : Previous year figures have been regrouped/rearranged, wherever necessary. As per our report of even date For Dayal & Lohia Chartered Accountants Firm Regn No. 102200W CA Anil Lohia Partner M .No. 31626 For and on Behalf of the Board of Directors D. J. Ramsinghani Chairman & Managing Director DIN:00013633 J. K. Parakh Chief Financial Officer D. N. Singh Director DIN:00021741 Kiran P. Jain Company Secretary Place : Mumbai Date : 28th May, 2015 |