SIGNIFICANT ACCOUNTING POLICIES i. Basis of brparation of financial statements The financial statements have been brpared and brsented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 (.Actrj read with Rule 7 of Companies 2014, the provisions of Act (to the extent notified) and guidelines issued by Securities and Exchange Board of India (SEBI). ii. Use of estimates In brparation of the financial statements, the company is required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or revision to an existing accounting standard requires a change in the accounting policy hitherto in use. iii. Revenue Recognition Sales and other Income are accounted on accrual basis and are taken to be inclusive of excise duty but excluding sales tax. Export incentive/benefits are accounted on accrual basis. Custom duty benefits in the form of Advance license entitlements are recognized on the export of goods and set off from material cost. Dividend Income on investments is accounted for when the right to receive the payment is established. iv. Fixed Assets Fixed Assets are stated at cost less accumulated debrciation. All costs Including financial costs which are specifically attributable to the asset are capitalized. Capital Work in Progress includes expenditure incurred during the year and yet to capitalized. Leasehold land is shown at cost including lease brmium paid. v. Debrciation Debrciation on the fixed assets is provided on Straight Line Method and Assets is being provided on pro-rata basis from the date of such acquisition and Lease Hold land is amortized over the period of lease. Effective 1" April 2014, the company debrciates its fixed assets over the useful lives of assets in the manner brscribed in schedule II of the Companies Act, 2013, as against the earlier practice of debrcating at the rate brscribed in schedule XIV of the companies Act 1955. vi. Investment Investments are classified into Current and long term Investments. Current Investments are stated at lower of cost and Fair Market Value. Long-term investments are stated at cost. vii. Inventories Inventories are valued on FIFO basis as under: 1) Raw Material - At Cost 2) Work In progress - At Cost 3) Finished Goods - Lower of Cost or Net realizable Value. 4) Stores & Spares - Treated as fully consumed. viii. Government grants Lump sum capital subsidies, not relating to any specific fixed assets, received from State Government for setting up projects are accounted as Capital Reserve in the year of receipt. ix. Foreign Exchange Transaction Foreign Exchange Transactions are recorded at exchange rates brvailing on the dates of the respective transactions. Current Assets and Liabilities in foreign currency as at the Balance Sheet date are translated at the year end exchange rates. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the profit and loss account. x. Employees Benefits The liability for Leave Encashment is provided for as per actuarial valuation however Gratuity has not been provided. xi. Borrowing Costs: Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets up to the date when they are ready for their intended use and other borrowing costs are charged to Profit and Loss Account. xii. Taxation: Provision for Taxation is determined on the basis of the Taxable profits computed for the current accounting period in accordance with the Income Tax, 1961. Deferred tax resulting from timing difference between book profit and taxatle profit for the year is calculated by using the tax rates and laws that have been enacted as on the Balance Sheet Date. The deferred tax assets is recognized and carried forward only to the extent that there is a certainty that the asset will be adjusted in future. xiii. Contingent Liabilities Claims against the Company not acknowledged as debts are treated as Contingent Liabilities. Provision in respect of contingent liabilities if any, is made when it is probable that a liability may be incurred and the amount can be reasonably estimated. xiv. Earning per share: The basic earnings per share (EPS) is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, net profit after tax for the year and the weighted number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. the average market value of the outstanding shares). XII. Previous yearfj figures have been regrouped, rearranged and reclassified wherever necessary. XIII. In accordance with the provision of schedule II of the act, in case of fixed assets which have been completed their useful life as at 1" April 2014, the carrying value amounting to Rs. 1,55,732/- charged to profit & Loss Accounts. Further In case of assets acquired prior to 1* April 2014, the carrying value of assets is debrciated over the remaining useful life as determined effective 1* April 2014. For KOTHARI JAIN & ASSOCIATES CHARTERED ACCOUNTANT FIRM REGN. NO. 113041 W For and on behalf of the Board SUNIL KUMAR KOTHARI PROPRIETOR M. No. 043842 SHARAT DEORAH MANAGING DIRECTOR SIDDHARTHA DEORAH DIRECTOR AMIT SHAH CHIEF FINANCIAL OFFICER SHANU PATANIA COMPANY SECRETARY Place: Mumbai Dated: 28" MAY 2015 |