1.BASIS OF ACCOUNTING: Financial Statements are brpared under historical cost convention, on accrual basis. 2.FIXED ASSETS: Fixed Assets are stated at cost less accumulated debrciation plus revaluation done on the basis of technical evaluation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. 3.DEbrCIATION : Debrciation on Fixed Assets provided as per the rates brscribed in Schedule - II to the Companies Act, 2013. 4.INVENTORY VALUATION: a)Raw Materials and Stores and Spares are valued at cost. b)Finished goods are valued at lower of cost or net realizable value. c)Cylinders, Valves, Adapters, Regulators and Steel are classified under stores and spares (Current Assets) and are valued at cost. 5.INCOME RECOGNITION: a)Sales are inclusive of all taxes wherever applicable, and net of returns. b)Sales are accounted on dispatch of goods. c)Income on services is recognized on release of regulators. 6.PRIOR PERIOD ADJUSTMENTS: Expenditure / Income relating to prior period not exceeding Rs.10,000/- in each case is debited/credited to relevant Heads of Account. 7.brPAID EXPENSES: Prepaid expenses not exceeding Rs.10,000/- in each case are charged to revenue in the year of incurrence. 8.FOREIGN CURRENCY TRANSACTION: Foreign Currency transactions are accounted at equivalent rupee value. 9. CLAIMS: Claims are accounted on receipt / acceptance. 10. INVESTMENT SUBSIDY: Subsidies received from Governments, both central and state, and from any other appropriate authorities, which are in the nature of capital receipt, are credited to Capital Reserve. 2.As the operations of the company by way of Bottling of LPG are going on and as the company has various new scheme of activities and plans for the future, the accounts of the Company for the year are drawn up on going concern basis. 3.Balances standing to the debit/credit of parties are subject to reconciliation by the company confirmation by them and review by the Company. 4."Other Non-Current Assets" rebrsent amount encashed by The Kerala State Cooperative Consumer Federation Ltd. from State Bank of Hyderabad and Punjab National Bank by invoking guarantees given in their favour by the company and are considered good and recoverable by the Company, and the Company has filed a suit for the recovery of the amount. 5.The Company was eligible to Sales Tax deferment Scheme granted vide order dated 03.09.1996 by the Commissioner of Industries, under G.O.Ms.No.117(Industries & Commerce(IFR)Department)dated 17.3.1993. The Order contains a condition that the Company is not entitled to collect Sales Tax from the consumers and further they would be liable to remit the Sales Tax collected to Government in case they collect Sales Tax during the availment period of Sales Tax incentive. 6.The Company, therefore, did not collect Sales tax from the customers while availing the Scheme. However, a notional liability was created for the amount eligible under the Scheme under the head "Deferred Sales Tax". The Sales Tax Appellate Tribunal vide its Order dated 1506.2009, in the appeal by the Company, held that the Company is not liable to pay this amount to the Sales Tax Department as it has not collected Sales tax from the customers when the Scheme was in operation. Therefore, the liability is written-back to the Profit & Loss Account. 7. All Current Assets as at 31.03.2015 have a value on realization in the ordinary course of business atleast value equal to amounts at which they have been stated in the Balance Sheet as on that date. 8.The company during the year had no transactions with the above related parties. . Previous Year's figures have been re-grouped/re-classified/re-stated as far as practicable and wherever necessary to confirm with current year brsentation. 9. Amounts have been rounded off to the nearest thousands. For and on behalf of the Board of Directors For VENUGOPAL & CHENOY, Chartered Accountants, ( CA P.V.SRI HARI ) Partner ( D.V.MANOHAR ) Chairman & Managing Director Membership No.21961 (CS A.RAMESH) Independent Director ( B K SINHA ) Company Secretary Place : Hyderabad Date: 29.05.15 |