Statements for the year ended March 31, 2015 1. CORPORATE INFORMATION: The principle activities of the Company comprise of manufacturing surgical sutures and medical devices. The company is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 and listed on the BSE Limited (BSE) and Ahmedabad Stock Exchange Limited (ASE). 2. SIGNIFICANT ACCOUNTING POLICIES: 2.1. Basis of Accounting The financial statements of the Company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been brpared on an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year unless otherwise specified. 2.2. Use of Estimates Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized. 2.3. Fixed Assets Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated debrciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. 2.4. Expenditure during Construction Period All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets. 2.5. Investments Investments are stated at cost of acquisition. 2.6. Inventories 2.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower. 2.6.2. Works in process are valued at estimated cost. 2.7. Foreign Currency Transactions Foreign currency transactions are recorded at the exchange rates brvailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss. 2.8. Revenue Recognition Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists. 2.9. Export Benefits Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stabilised in respect of exports made/to be made. 2.10. Debrciation / Amortization Debrciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease. 2.11. Employee Benefits 2.11.1. Short Term Employee Benefits: Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services. 2.11.2. Post Employment Benefits: Company's contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company's liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date. Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company's rules. 2.12 Research and Development Research costs are expensed as and when incurred. 2.13. Custom Duty The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory. 2.14. Cenvat, Service Tax and VAT Credit Cenvat, Service Tax and VAT credit receivable/availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations. 2.15. Income Tax Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit and Loss. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewed at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. 2.16. Impairment of Assets The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available. 2.17. Operating Leases The Company has not taken any leases. 2.18. Provisions, Contingent Liabilities and Contingent Assets Provisions are recognised only when there is brsent obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised. 2.19. Borrowing Cost Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue. 3. Leave Encashment: No Provision has been made in the accounts towards encashment of earned leaves not availed by the employees upto March 31, 2015. Since their encashment as per the rules of the Company does not fall due on the same date. The same shall be accounted for as and when paid. 4. Excise duty related to differences between closing and opening stock and other adjustments are stated under operating and other expenses. Excise duty related to turnover is reduced from the Gross Revenue from Operations. 5. Figures unless stated specific are in lakhs. 6. As per the best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 "Provision, Contingent Liabilities and Contingent Assets" as notified by the Companies (Accounting Standards) Rules 2006, in respect of any brsent obligation as a result of a past event that could lead to a probable outflow of resources which would be required to settle the obligation. As per our report of even date attached for A. VIJAY KUMAR & CO. Chartered Accountants Firm Registration No. 009824S Sd/- Omprakash Soni Partner Membership No.: 016090 For and on behalf of Board of Directors CENTENIAL SURGICAL SUTURE LTD. Sd/- Vijay Majrekar Chairman & Managing Director DIN : 00804808 Sd/- Devraj Poojary Executive Director DIN : 02041726 Place : Mumbai, MAHARASHTRA, May 30, 2015 |