Note 1: SIGNIFICANT ACCOUNTING POLICIES A) Basis of Preparation of Financial Statements: The financial statements have been brpared and brsented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India ('Indian GAAP') and comply with the Accounting standards brscribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013, ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 1956, to the extent applicable. B) Use of Estimates: The brparation of financial statement requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised. C) Fixed Assets and Debrciation: Fixed Assets are stated at cost net of Cenvat and Value added tax less accumulated debrciation including impairment loss. All cost relating to installation up to the commencement of commercial production are capitalised. Debrciation on Fixed Assets has been provided on Straight Line Method over the remaining useful life of the assets as specified in Schedule II to the Companies Act, 2013. Intangible assets are stated at cost of acquisition less accumulated amortisation. D) Investments: The Investments being non-current in nature are carried at Cost or Fair realisable value where the diminution in fair value is of permanent in nature. E) Inventories: Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. i. Raw Materials, Stores and Spares are valued at cost. ii. Finished stock and process stock are valued at cost or net realisable value whichever is lower. iii. The valuation of inventories includes taxes, duties of non refundable nature and direct expenses, and other direct cost attributable to the cost of inventory, net of excise duty / counter-vailing duty / education cess and value added tax. F) Provision for Current Tax and Deferred Tax: i. Tax on Income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on expected outcome of earlier year assessments/appeals. ii. Deferred Tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted and substantively enacted as on the Balance Sheet date. iii. Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty or virtual certainty as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised. G) Provisions, Contingent Liabilities and Contingent Assets: Provisions 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. H) Revenue Recognition: i. Sales revenue are recognised when goods are invoiced and dispatched to the customers are recorded net off Excise Duty, Sales Tax, Sales returns and Trade discounts. ii. Dividends are recognised when the right to receive them is established. I) Employee Benefits: i. Short Term employee benefits are recognised as expenses at the undiscounted amount in the profit and loss account of the year in which the related service is rendered. ii. Post employment employee benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognised at the brsent value of the amounts payable determined using actuarial valuation technique. J) Impairment of Assets: As asset is treated as impaired when the carrying cost of assets exceeds recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. K) Borrowing Cost: Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost is charged to Statement of Profit and Loss. L) Foreign Currency Transaction: Foreign currency transactions are recorded at the rate of exchange brvailing on the date of the transactions. Transaction gain or losses realised upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. All monetary items denominated in foreign currencies at the year end are converted at the year end rates. Note 2: The figures of the brvious year have been regrouped and rearranged so as to make them comparable with those of the current financial year. As per our report of even date attached For Desai Saksena & Associates Chartered Accountants Dr. S.N. Desai Partner M.N.32546 For and on behalf of the Board of Directors S. Mohan Devendra Whole-time Director J. Shrimanker Shyam Director C. Balsekar Director Swarna S. Gunware Company Secretary Sunil Y. Raghav Chief Financial Officer Place : Mumbai Date : 19th May, 2015 |