NOTES ON ACCOUNTS : 1. SIGNIFICANT ACCOUNTING POLICIES: (a) ACCOUNTING CONVENTION The financial statements are brpared on the basis of going concern, under historical cost convention on an accrual basis and in accordance with the requirement of the Companies Act, 2013 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable. (b) INVESTMENTS: Investments are stated at cost. (c) INVENTORIES Finished goods are valued at lower of cost and market price, while Raw Material and Work in Progress are valued at cost. The Scrap is valued at realizable value. Cost of work in progress excludes expenses on material received for processing on Job basis. (d) FIXED ASSETS AND DEbrCIATION: Fixed assets are stated at cost and debrciated on written down value (WDV) method in accordance with provisions of schedule II of the Companies Act, 2013 except addition on Machinery w.e.f. 01.04.1989, vehicle and computer w.e.f. 01.04.1996 where S.L.M. method is followed. (e) REVENUE RECOGNITION: Sales are recognised at the point of dispatch to customers. 2. ACCOUNTING STANDARDS: (a) Accounting Standard 04 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies. There is no change in accounting policies. As regards prior period item, those have been earmarked. (b) Accounting Standard 11 - Accounting for effects of change in Foreign Exchange Transactions in foreign currency are recorded at exchange rates brvailing on the date of the transaction. Assets and Liabilities related to foreign currency transactions, remaining unsettled at the year end, are stated at the contracted rates, when covered under forward exchange contracts and at year end rates in other cases. The brmium payable on forward foreign exchange contracts is amortized over the period of contract. Exchange gains /losses are recognized in the profit and loss account. 3. In the opinion of the Board, the Current Assets, Loans and advances Debtors & Creditors have a value on realization in ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. However no confirmation has been obtained on the same. 4. Fixed monthly remuneration has been paid to directors as per resolution passed by the Shareholders in their meeting. 5. In compliance with the requirement of the Accounting Standard on valuation of Inventories issued by the Institute of Chartered Accountant of India, Excise Duty payable amounting to Rs. 24,73,916/- (Prev. Year Rs.40,93,990/-) on Finished Goods as on 31st March, 2015 has been included in the valuation of the said stocks. This has no impact on profit for the year. 6. Amount due to small industries Rs. Nil as on 31.03.2015 out of which amount outstanding for more than Rs. 1.00 lac and due for more than 30 days is Rs. Nil. 7. Previous year's figures have been regrouped and rearranged wherever considered necessary. As per our Report of even date attached. For Shah Gandhi & Company Chartered Accountants Kamlesh Mehta Partner Membership No : 036323 FRN No : 109569W On behalf of the Board R.S.GAJRA Chairman & Mg. Director K.R.GAJRAManaging Director Date : 22.05.2015 Place : Mumbai |