NOTE-1 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS SIGNIFICANT ACCOUNTING POLICIES 1 Basis For Preparation of Financial Statements The Financial statements are brpared in accordance with the Generally Accepted Accounting Principles ("GAAP") in India under the historical cost convention on accrual basis, and are in confirmity with mandatory accounting standards, as brscribed under Section 133 of the Companies Act, 2013('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India(SEBI). All assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. 2 Revenue Recognition (A) Domestic Sales are exclusive of Excise Duty (B) Export sales are inclusive of Exchange Rate Fluctuation on realisation ( C) CST Reimbursement claims from NEPZ are recorded on acceptance of claims. 3 Tangible Assets and Intangible Assets Tangible assets are recorded at cost of acquisition or construction Including interest/financial charges,project restructuring cost and other expenditure incidental and related to such acquisition / construction). Intangible Assets are capitalised at cost of acquisition or development and expendiure incidental and related to such acquistion/development. 4 Debrciation and Amortisation (a) Debrciation on Tangible Assets is provided on Straight Line method on the basis of useful lives in the manner brscribed in Schedule - II of the Companies Act, 2013. (b) Intangible Asset (Software) is amortised over a period of 6 years. 5 Inventories Inventories are valued on following basis: Raw Material At Cost Finished Goods At Cost Stocks, Spares & Packing Materials At Cost Work - In - Progress At Estimated Cost 6 Foreign Currency Transactions Transactions involving Foreign Currency are recorded at the exchange rates brvailing on the date of transaction. Exchange rate difference due to difference between recorded rates and net realized rates is booked in the respective head of account. The bank balance(Debit/Credit) at the year end revalued at the rates brvailing as on the close of the year. The other current assets/liabilities continue to be shown at recorded rates. 7 Employee Benefits Employee benefits(Bonus, gratuity and leave encashment etc) is accounted for on cash basis. 8 Borrowing Costs Borrowing costs that are attributable to the construction/acquisition of qualifying fixed assets are capitalised as a part of cost of these assets. 9 Provisions and Contingent Liabilities In accordance with the Accounting Standard 29(AS 29) as notified by the Companies Accounting Standard(Rules) 2006 (a) Provisions are made for the brsent obligations where amount can be estimated reliably, and (b) Contingent Liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the company. Contingent Assets are neither recognised nor disclosed in the financial statements. 10 Taxes On Income Income Tax expenses are accrued in accordance with Accounting Standard - 22 "Accounting for Taxes on Income" as notified by the Companies Accounting Standard (Rules) 2006, which include Current Tax and Deferred Tax. Provision for current tax is made after taking into considerations benefits admissible under the provision of the Income Tax Act 1961. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognized only to extent, there is a reasonable certainty that sufficient future taxable income will be available. 11 Earning per Share Basic earnings per Share is calculated by dividing the net profit or loss for the year attributable to Equity Shareholders by the weighted average number of Equity Shares outstanding during the year. For the purpose of calculating diluted earnings per Share, the net profit or loss for the year attributable to Equity Shareholders and the weighted average number of Shares outstanding during the year is adjusted for the effects of all dilutive potential Equity Shares. NOTES ON ACCOUNTS 1) CONTINGENT LIABILITIES Bond executed in favour of Dy. Commissioner Centrial Excise, for clearance of Imported Goods for Rs. 300 Lakhs (Previous Year Rs. 200 Lakhs) 2) Sundry Creditors and Sundry Debtors shown in the Balance Sheet are subject to confirmation. 3) The carrying amount of the assets, whose remaining useful life as on 1st April, 2014 is nil as per criteria brscribed as per the Companies Act, 2013, amounting to Rs. 11.22 Lacs has been charged to Profit and Loss Account. 4) Borrowing cost amounting to Rs. 7.57 Lacs has been capitalised as part of imported plant and machinery as loan Funds were utilised for acquiring the said fixed assets. 5) Necessary disclosures under Micro,Small and Medium Enterprises Development Act,2006,can only be considered once the relevant information to identify the suppliers who are covered under the said Act are received from such parties. 6) Previous Year figures have been regrouped / reclassified, wherever considered necessary. Sanjog Company Secretary Kamlesh Aggarwal Director DIN-07003955 Ashish Aggarwal Director DIN-01837337 Auditors Report to the members of Jagan Lamps Ltd. As per our separate report of even date annexed. For Bhasin Raghavan & Co. Chartered Accountants FRN No - 000197N (V. Singh) Partner M.No. 93458 Place : New Delhi Date : 30.05.2015 |