Note - 1: SIGNIFICANT ACCOUNTING POLICIES:- 1. Basis of Accounting:- The financial statements are brpared on the basis of going concern, under historical cost convention and on accrual basis of accounting and in compliance with the Accounting Standards referred to in section 133 of the Companies Act, 2013 ("the Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act. Claims against the company are recognized when finally accepted by the company. 2. Use of Estimates: The brparation of the financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Management believes that the estimates used in the brparation of the financial statements are prudent and reasonable. Any revision to the accounting estimates is recognized prospectively. 3 Classification of Assets and Liabilities:- Assets and Liabilities are classified as Current / Non-current considering, inter alia, expected realization / settlement thereof in the Company's normal Operating Cycle (of 5 months) or a period of 12 months from Balance Sheet date. 4 Fixed Assets:- (a) Fixed Assets are carried at cost of acquisition less accumulated debrciation. (b) Cost is inclusive of duties, taxes, erection / commissioning expenses and incidental expenses and Sales Tax set off wherever applicable. 5 Method of Debrciation:- Debrciation has been provided, considering the lives as brscribed by Schedule II of the Act, on Written Down Value Method in respect of Tangible Assets. Assets costing less than ? 5000/- each, acquired during the financial year, are being fully charged off to the Statement of Profit and Loss. 6 Valuation of Investments:- Long Term Investments are carried at cost. The cost of investments includes brokerage, Security Transaction Tax and stamp duty. Provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments. In case of sale of investments or part thereof the purchase cost is allocated as per weighted average method in accordance with Accounting Standard 13-Accounting for Investments. 7 Valuation of Stock in Trade-Stock in trade (Quoted Shares) is valued at cost or market price whichever is lower. In case of sale of Stock in Trade (Quoted Shares) or part thereof the purchase cost is allocated as per weighted average method in accordance with Accounting Standard 13- Accounting for Investments. 8 Income Recognition :- (a) Sale of trading goods is recognized on the date of invoice exclusive of sales tax/VAT and trade discount. (b) Profit / Loss from trading in Shares are accounted on the date of contract note received from the Broker. 9 Provision for Current Tax & Deferred Tax:- (a) Current Tax: Provision for Current Tax is made on the basis of taxable income for the current year in accordance with the provisions of the Income Tax Act, 1961. (b) Deferred Tax: Income tax expense is accrued in accordance with Accounting Standard 22 - Accounting for Taxes on Income, which includes current and deferred taxes. Deferred Income Taxes reflect the impact of timing differences between taxable income & accounting income for the year and reversal/restatement of timing differences of earlier years. Deferred tax assets and liabilities are measured using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized for all reversible timing differences, carry forward of unused tax assets and unused tax losses subject to consideration of prudence. Carrying amount of deferred tax assets is reviewed at each balance sheet date on the same consideration. 10. Provisions, Contingent Liabilities and Contingent Assets:- (a) The Company recognizes as Provisions, the liabilities being brsent obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation. (b) Contingent Liability is disclosed, unless the possibility of an outflow of resources is remote. (c) Contingent Assets are neither recognized nor disclosed. 11. Foreign Currency Transactions:- Transactions in foreign currency are recorded at the exchange rate brvailing on the date of the transactions. Foreign currency denominated assets and liability at the balance sheet date is translated at the exchange rate brvailing on the date of the Balance Sheet. 2Capital commitment for Purchase of Fixed Assets amounting to Rs. 25,75,074/-(Previous Year Rs. 63,89,625/-). 3 Debrciation: Effective from 01.04.2014, the Company has adopted the useful lives of its Tangible Fixed Assets as per Part C of Schedule II of the Companies Act, 2013 and provided debrciation accordingly. In respect of assets of which the remaining useful lives have been exhausted as on April 1, 2014, the carrying amount of assets after retaining residual value, amounting to Rs. 0.59 lacs (Net of Deferred Tax Credit of Rs. 0.29 lacs) has been recognized in the opening balance of General Reserve. The provision of debrciation in terms of Companies Act 2013 as aforesaid has resulted in lower provision by Rs. 4.20 lacs for the year as compared to the provision in terms of erstwhile Companies Act, 1956. 4 Detail of Loan given Under Section 186 (4) of the Companies Act.2013 Long-Term Loans and Advances Include Loan given @ 18% p.a. to Gei Industrial Systems Ltd. Amounting to Rs.0.91 Crore (Previous year Rs. 1.09 Crore) due for repayment. Short-Term Loans and Advances includes Loan given @ 15% p.a. to Videocon Industries limited Rs.1 Crore (Previous Year Rs.Nil) & Mr. N.Murkumbi amounting to Rs..3 Crore (Previous Year Rs.4 Crore) both due for repayment within 1 year 5. The provisions of Accounting Standard 15 (Revised) on "Employee Benefits" are not applicable to the Company except for Leave Encashment. However, the Company does not allow any accumulation of leave and employees are allowed to encash it on or after 31st March of every year. 6. Segment Reporting: The Company has disclosed Business Segment as the primary segment. The Company operates two business segments: Trading & Power Generation. Business Segments have been identified as reportable primary segments in accordance with Accounting Standard - 17 issued by the Institute of Chartered Accountants of India, taking into account the nature of products, risks and returns, organisation structure and internal reporting system. 7. Expenditure incurred in foreign currency for foreign travelling of ` 19,69,657/- (Previous Year ` 8,32,306/-). 8. In the opinion of the Board, current assets, loans and advances have a value on realization at least equal to the amount at which they are stated in the accounts. 9 Debtors & Creditors balances are subject to confirmation. Adjustments if any, will be made in the accounts on the receipt of such confirmations. 10 Previous year figures have been regrouped, reworked, reclassified & rearranged wherever necessary As per our report of even date attached For BANSI S. MEHTA & CO. Chartered Accountants Firm Reg. No. : 100991W Haresh G. Buch Partner Membership No. 33114 For and on behalf of the Board R. G. Dhoot Chairman R. K. Dhoot Managing Director Rajesh M. Loya Director Place : Mumbai Date : 29th May, 2015 |