2.1 During the year 2013-14, 45,00,000 warrants has been treated as converted into 45,00,000 equity shares of face value of Rs. 4/- each at a brmium of Rs. 61- each as per SAT ordered dated 2.12.2013 in Appeal No. 115/2012. Accordingly 67,50,000 equity shares allotted earlier stands cancelled and only 45,00,000 equity shares were listed in BSE. Further the Company has allotted 67,50, 000 new equity shares of Rs. 4/- each issued at a brmium of Rs. 2.5 each to promoter group. However the shares are pending for listing in BSE as open offer is under process. 2.2 The Company does not have information regarding of its supplier who is Small Scale Industrial Undertakings and hence, the required information has not been furnished. However, the Company has not received any claim from any party for payment of any interest. 2.3 Sundry Debtors and Creditors are subject to confirmation. 2.4 No provision has been made in respect of liability for gratuity and earned leave due to employees as required by Accounting Standard -15 of the ICAI. In the absence of actuarial valuation, it is not possible to quantify the amount by which the Profit of the Company will be affected. 2.5 The Company is principally engaged in Metal fabrication and is managed as one entity governed by the same set of risks and return, hence there are no separate reportable segment as per Accounting Standard -17 on Segmental Reporting issued by the Institute of Chartered Accountant of India. 2.6 Figures of the Previous year have been regrouped and rearranged wherever necessary. SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS: - 1) SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of Accounting: - The accounts are brpared in accordance with the Historical Cost Convention and on the basis of a going concern with revenue recognized and expenses accounted on accrual basis. 1.2 Sales: - A) Sales of manufacturing items are accounted inclusive of excise duties and sales tax. B) Sales include billing of Project work on the basis of stipulations specified in each contract. Thus the company does not follow AS-7 as laid down by Institute of Chartered Accountant of India. 1.3 Retirement Beneflts:- A) Retirement benefit in the form of provident fund are accounted on accrual basis. B) The Company has accounted gratuity & leave encashment liability on cash basis. 1.4 Debrciation:- A) Debrciation on Fixed assets has been provided on Straight Line Method (SLM) at the rates specified in the Schedule II of the Companies Act, 2013. B) The Company reassessed the remaining useful life of tangible fixed assets w.e.f 1st April, 2014. Accordingly, the carrying values as on that date are debrciated over their assessed remaining useful lives. Further the carrying amount of assets where remaining useful lives have been reassessed to be nil as at 1st April, 2014 has been recognised in the opening balance of retained earnings as on 1st April, 2014. 1.5 Fixed Assets:- All Fixed assets are stated at cost of acquisition less accumulated debrciation. 1.6 Inventories:- Stores and components - At cost Raw material - At cost Work in Progress - At Estimated cost. Scrap - At realizable value. 1.7 Deferred Sales Tax:- The Company values it obligation for deferred sales tax on net brsent value basis. 1.8 Income Tax:- a) The Current year tax has been determined on the basis of Minimum Alternate Tax (MAT) liability under section 115 JB of the Income Tax Act, 1961. b) Deferred Tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier period. Deferred Tax Assets are recognised only to the extent that there is certainty that sufficient future income will be available to realise the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date. As per our report attached. For Ketan N. Shah & Co. Chartered Accountants Sd/- Ketan N. Shah Proprietor Sd/- (Shaukatali S. Mewawala) Chairman & Managing Director Sd/- S.M. Nathani Director Place : Mumbai Dated: 29.05.2015 |