Notes forming part of the Accounts for the year ended 31st March, 2015 Notes No. 30 : Significant Accounting Policies : 1) Accounting Conventions : These accounts are brpared under historical cost convention, with revenues recognized and expenses accounted on their accrual including provisions / adjustments for committed obligations and amounts determined as receivable or payable during the year as a going concern and in accordance with the accounting standards referred to in section 211(3C) of the Companies Act, 2013 2) Fixed Assets : All fixed assets, except Land, are stated at cost net of Modvat less accumulated Debrciation. Land is valued at cost. Fixed Assets include all expenditure of capital nature, br operation expenses including interest and financial cost of borrowing during the period of construction. 3) Debrciation : Debrciation is provided on straight Line Method at the rate brscribed in Schedule II to the Companies Act, 2013 and rounded off to nearest 15 days. For the purpose of charging debrcation on Plant & Machinery falling in the category of "Continuous Process Plant " the company has identified such plants on the basis of technical opinion obtained and debrciation has been provided at special rates brscribed in Schedule II to the Companies Act, 2013. 4) Income Recognition: The company recognizes sales on the basis of actual delivery of goods. Sales are recorded at invoice values net of trade discounts. The purchases are recorded at the invoice value. All expenses and income to the extent considered payable and receivable respectively are accounted for on accrual basis except encashment of leave salary and interest on income tax refunds, which are accounted on cash basis. 5) Inventories : Raw materials are stated at cost or net realisable value, whichever is lower. Cost includes expenses for procuring the same and is computed on first in first out basis. Stocks of finished goods have been valued at cost or net realisable value, whichever is lower. The cost includes manufacturing expenses and appropriate overheads. Stock of by-products and waste have been valued at net realisable value. Packing material, stores and spares are stated at cost or net realisable value, whichever is lower. Cost is computed on first in first out basis. Work in process is valued at proportionate value of finished goods upto the stage of completion of the work in progress. 6) Investments : Current investments are valued at cost or market value which ever is less. Long term investments are stated at cost, and where applicable provision is made for erosion in its valuation. 7) Foreign Currency Transactions : Transactions in foreign currencies are recorded at the exchange rate brvailing at the time of the transaction. Foreign Currency Assets and Liabilities are stated at the exchange rates brvailing at the date of Balance Sheet and at forward contract rates, wherever so covered. Exchange difference relating to Fixed Assets is adjusted to the cost of Fixed Assets. Any other exchange difference is dealt in the Profit and Loss Account. Premium in respect of forward contract is recognized over the life of the contract. Any income or expense on account of exchange difference on settlement is recognized in the Profit and Loss Account. 8) Borrowing Costs : The company capitalizes interest and foreign exchange rate difference on credit acquired for the construction of plant and installation of machinery as part of the cost of assets. The capitalization of interest and foreign exchange rate differences discontinued when the plant construction and machinery installation are completed and are ready for their intended use. 9) Retirement Benefits : The gratuity liabilities is funded through a scheme administered by the Life Insurance Corporation of India, on the basis of LIC's demand (on the basis of actuarial valuation of liabilities) which specifies the contribution to be made by the company, the same is charged to Profit and Loss account. However, the actuarial valuation is for the period from 1st June to 31 May of each year and consistently accounted for same period on payment basis. The liabilities in respect of unutilized leave due to employees is accounted for as and when become payable. 10) Research and Development Expenditure : All revenue expenditure on research and development are charged to the Profit and Loss Account. Fixed Assets used for research and development are capitalized 11) Taxes on Income : The company provides for income tax on estimated taxable income and based on expected outcome of assessments appeals, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under. Consequent to the issuance of the Accounting Standard 22 - ' Accounting for Taxes on Income ' by the Institute of Chartered Accountants of India which states that deferred tax should be recognized based on timing differences between the account-ting income and the estimated taxable income for the year and quantify the same using the tax rates and laws enacted or substantively enacted as at the balance sheet date. Deferred tax assets are recognized and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which deferred tax assets can be realized NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2015 Schedules forming part of the Accounts for the year ended 31st March, 2015. 1) The Notes referred to in the Balance Sheet and Statement of Profit and Loss form an integral part of the accounts. 2) In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans and advances and current assets, in the ordinary course of business, will not be less than the amount at which they are stated in the balance sheet. 3) Previous year figures have been regrouped, rearranged and recast to correspond with the figures of the current year 4) Research & Development Expenditure is as follows 5) Net Profit of Rs. 0/- (Previous year Net Profit of Rs. 6,74,212/-) on account of exchange difference has been considered under foreign exchange earning under the head of indirect Income in the profit and loss account 6) AS - 15 Accounting For Retirement Benefits in Financial Statements of Employees: * Employee benefits are not classified into short-term benefits, Post employment benefits and termination benefits. * There are no VRS expenses incurred during the year. As per our report of even date attached. For Khedkar & Co. Firm Reg. No.130838W Chartered Accountants D.R.KHEDKAR Proprietor M.No: 034963. For & on behalf of Board of Directors, B.V.RETAREKAR Chairman S.G.THAKUR. Managing Director Place : Vadodara Date: 30/05/2015 |