A Significant Accounting Policies & Practices i) Basis of Preparation These financial statements have been brpared in accordance with the generally accepted accounting principals in India under the historical cost convention on accrual basis. These financial statements have been brpared to comply in all material aspects with the accounting standards notified under section 2(2) and other relevant provisions of the Companies Act, 2013 and the Guidelines issued by the Securities and Exchange Board of India (SEBI). All the 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 of the Companies Act. 2013 ("The Act"). Based on the nature of products and the time between the acquisition of assets for processing and their realisation In cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities. ii) Use of Estimates The brparation of financial statement in conformity with GAAP in India requires the management to make estimates and assumptions to be made that affect the reported amount of assets liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized. Hi) Fixed Assets : Fixed Assets are stated at cost or as revalued less accumulated debrciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the assets to working condition for its intended use. Expenditure for additions, modifications, improvements and renewals is capitalized and expenditure for maintenance and repairs is charged to the Statement of Profit and Loss. When assets are sold or discarded, their cost and accumulated debrciation are removed from the accounts and any gain or loss resulting from their disposal is included in the Statement of Profit & Loss. When fixed assets are revalued, any surplus on revaluation is credited to the Capital Reserveinstallation and other related expenses. iii) Debrciation : Debrciation has been provided as per the rates specified for written down value method in Schedule II iv) Investments Long-term investments and current maturities of long-term investments are stated at cost less provision for other than temporary diminution in value. Current investments, except for current maturities of long term investments, are stated at the lower of cost and fair value, determined on a portfolio basis. v) Inventories Stores & spares parts has been valued at cost on FIFO basis. Inventories are taken, valued & certified by the management. vi) Employees Benefits : Employees benefit of short term nature are recognised as expense as and when it accrues. Employees benefit of long term nature are recognised as expense based on actuarial valuation. Company's contribution in respect of Employees' Provident Fund is made fo Government Provident Fund and is charged to Statement of Profit & Loss. Accrued leave for the year is paid to the employees during the year itself. Other retirement benefits to the employees of the Company are not applicable during the year under review. The same will be provided as and when became due. vii) Revenue Recognition The Company maintains its accounts on accrual basis, except otherwise stated. viii) Expenses : Material known liabilities are provided on the basis of available information /estimates. ix) Claims : Claims have been accounted for on receipt/payment basis. x) Foreign Exchange Transaction : Transaction in foreign currency relating to (a) imports are recorded at the exchange rate brvailing at the time of such transaction, (b) Exports are recorded at the realised value as certified by the banks, however exports for which exchange sale forward contracts have been entered into with the banks are recorded at the respective forward contract value. Realised gains/losses on foreign exchange transaction are recognised in the Statement of Profit and Loss at the time of actual realisation of gains/losses. Unrealised exports are recorded at the exchange rate brvailing at the close of the year. However, unrealised exports for which exchange sale forward contract have been entered Into with the banks are recorded at the respective forward contract value. xi) Income Tax Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961. Deferred Income Tax is provided, using the liability method, on all temporary differences at the Balance Sheet date between the tax basis of assets and liabilities and their carrying amounts for financial reporting purpose. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised. Deferred Tax Assets and Liabilities are measured using the tax rates and the tax laws that have been enacted or subsequently enacted at the Balance Sheet date. xii) Impairment: At each balance sheet date, the management reviews the carrying amount of its assets to determine whether there Is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their brsent value using a br-tax discount rate that reflects the current market assessments of time value of money and risks specific to the assets Reversal of impairment loss is recognized immediately in the Statement of Profit & Loss. xiii) Contingent Liabilities : Contingent liabilities are disclosed by way of notes on accounts xx Previous year's figures have been rearranged, recast, restated and reclassified to confirm this year's classification wherever considered necessary. As per our Report attached of even date For Dangi Jain & Company Chartered Accountants Firm Registration No. 308108E For and on behalf of the Board Sagarmal Jhanwar Director Suresh Jhanwar Director S.K. DANGI Partner Vikash Shraff Director Membership No. 12529 4, N. S. Road Kolkata, the 29th day of May, 2015 |