SIGNIFICANT ACCOUNTING POLICIES 1. a) BASIS OF brPARATION OF FINANCIAL STATEMENT These Financial Statements have been brpared to comply with the Generally Accepted Accounting Principles (Indian GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act 2013. The Financial Statements are brpared on accrual basis under the historical cost convention. The financial Statements are brsented in Indian rupees rounded off to the nearest rupees. b) USE OF ESTIMATES The brparation of financial statements in conformity with Generally Accepted Accounting Principles (Indian GAAP) requires judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materealised. 2. FIXED ASSETS Tangible Assets are stated at cost net of recoverable taxes, trade discount and rebates and include amount added on revaluation, less accumlated debrciation and impairment loss, if any. The cost of tangible assets comprises its purchase price ,borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use. Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress 3. VALUATION OF INVENTORIES Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective brsent location and condition. 4. DEbrCIATION a) Debrciation on Fixed Assets is provided to the extent of debrciable amount on the Written Down Value (WDV) Method except in case of assets pertaining to unit- Noida A-37 where debrciation is provided on Straight Line Method (SLM). Debrciation is provided based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. b) No write off is made in respect of long term lease hold land. 5. FOREIGN EXCHANGE TRANSACTION a. Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction or that approximates the actual rate at the date of the transaction. b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the brmium paid on forward contracts is recognised over the life of the contract. c. Non-monetary foreign currency items are carried at cost. d. In respect of integral foreign operations, all transactions are translated at rates brvailing on the date of transaction or that approximates the actual rate at the date of transaction. Monetary assets and liabilities are restated at the year end rates. e. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Statement. 6. REVENUE RECOGNITION Revenue is recognised only when risk and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation include sale of goods and services. Export Sales are accounted for on the basis of the date of Bill of Lading, Domestic sales are accounted for on the basis of ex-factory/godown dispatches. Sales include excise duty but exclude discounts, sales tax and all other charges. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the in trest rate applicable. 7. EXPORT BENEFITS Sale of advance licenses is accounted for on realizations basis, Duty Drawbacks and Duty entitlement Pass Book benefits are accounted for on accrual basis. 8. RETIREMENT BENEFITS a) Contributions to Provident fund are made at the brscribed rates in the recognized funds and charged to the Profit and Loss A/c. b) Provision for Gratuity are to be made on the basis of actuarial valuation. c) Every employee who has completed five years or more of service gets a gratuity on leaving at 15 days salary (last drawn salary) for each completed year of service. Year end liability on account of retirement benefits to employees are provided. d) Leave encashment is accounted for on year to year basis and not accumulated to be enchased at the time of retirement. 9. INVESTMENTS Investments in subsidiary and other companies are treated as long term investments and are stated at cost. Provision of diminution in the market value of long- term investments is made only if such decline is considered permanent by the Management. Dividend is accounted for as and when received. 10. IMPAIRMENT OF FIXED ASSETS An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit anf Loss Statement in the year in which an assets is identified as impaired. The impairment loss is recognised in prior accounting period is reversed if there has been a change in the estimates of recoverable amount. 11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provision is rcognised in the accounts when there is a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and reliable estimates can be made. Provision are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates at each reporting date and adjusted to reflect the current best estimates. 1. Debit / Credit balances as on 31st March 2015 of Debtors, Creditors, Loans & Advances and other parties accounts are subject to confirmations. 2. The accounts of the company have been brpared on going concern basis as per Accounting Standard (AS-1) "Disclosure of Accounting Policies". 3. In the opinion of the management, there is no certainty that sufficient future taxable income will be available, the Company has not recorded cumulative Deferred Tax Assets on account of timing differences as stipulated in Accounting Standard (AS - 22) "Accounting for Taxes of Income" 4. The Company generally enters into cancelable operating leases for office brmises, factory brmises and residence of the employees, normally renewable on expiry. 5. No creditor has intimated about their status being of small scale industrial undertakings. 6. As per Accounting Standard 5, Net Profit or loss for the period,and Prior Period Item and Change in Accounting Policy Issued by ICAI, Prior period expenses of Rs. 66,08,958/- are include in electricity & water charges. 7. Previous year figures have been regrouped / rearranged wherever considered necessary to conform to the classification adopted in the current year. As per our report of even date annexed For Pradip Bhardwaj & Co. For and on behalf of the Board of Directors Chartered Accountants FRN- 013697C per Pradip Bhardwaj Partner M.No. 500219 Narendra Aggarwal Director P. M. Alexander Director DIN No. : 00027347 Narender Makkar Company Secretary Din No. : 00050022 Place : New Delhi Dated : 26.05.2015 |