SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS A. Significant Accounting Policies (1) Basis of Accounting Financial statements are brpared under the historical cost convention, in accordance with generally accepted Accounting Standards applicable in India and the provisions of Companies Act, 2013. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties relating to income. (2) Revenue Recognition Sales are recognized on completion of sale of goods and recorded gross of tax but net of trade discounts & rebates. (3) Fixed Assets Fixed Assets are stated at cost less accumulated debrciation. The Company capitalizes all costs relating to the acquisitions and installations of fixed assets. Direct financing cost, if any, incurred during construction period in respect of major projects is also capitalized. (4) Debrciation Debrciation on all Fixed Assets is provided based on the useful life of the asset in manner brscribed in Schedule II of the Companies Act, 2013. In respect of assets acquired during the financial year, debrciation is provided on Pro-rata basis with reference to the period each assets was put to use during financial year. During the year Debrciation has been changed on the basis of single shift in view of the plant operations. (5) Investments Investments are valued at cost. (6) Inventories (I) All inventories are valued at cost or market value whichever is lower (II) For arriving cost of Finished Goods and stock in process all production expenses and debrciation except financing cost and marketing cost are considered. (III) In respect of raw materials, stores and spares cost is computed on weighted average basis. (IV) Fixed overhead are allocated for inclusion in the cost of conversion on the basis of normal level of production capacity. Conversion cost is apportioned to the finished goods in process on the basis of estimated values and proportions arrived at by the cost sheet of the last month of financial period in which production had taken place. (7) Foreign Currency Transactions There were no foreign currency transactions during the year. Retirement Benefits (i) Liabilities in respect of gratuity and leave encashment are provided on the basis of actual calculation. (ii) Contribution to Employees Provident Fund Scheme are paid to the Regional Commissioner of Provident Fund. B. NOTES 1. Estimated Amount of contracts on capital account to be executed and not provided for is Rs. 7.91 Lacs net of advances (brvious year Rs. 184.42 Lacs). 2. Investment of Rs. 39000/- in form of National Saving Certificates has been pledged with Sales tax authorities. 3. Certain Balances of Sundry Debtors, Sundry Creditors and trade advances are subject to confirmation. 4. Related Party Disclosures : There is no related party transaction 5. In view of substantial taxable losses, no adjustment towards Deferred tax assets is being made during the year. 6. There was no amount due to such of the units registered under SSI and declared to us as on 31.3.2015 and further there was no claim from suppliers under the ‘’ interest on delayed payments under Small Scale Undertaking Act, 1993.’’ 7. Previous years figures have been regrouped wherever necessary to conform to the current year’s classification since the brsentation has been made as per the Revised Schedule VI, in the current year. 8. In View of Losses and consequent erosion of net worth, the company is a case of Reference to BIFR. 9. Regarding Secretarial Audit Report for compliance of Securities and Exchange Board of India Act, 1992/Regulation it is stated that there is no change in holdings as per Regulation 29(2) & 30(2) and no Insider Trading transaction has taken place. Therefore no Regulation have been violated. For and on behalf of the Board Sd/- Manish Kumar Jain Chief Financial Officer Sd/- S.G. Vyas Managing Director DIN 01905310 Sd/- S. K. Singhal Director DIN 00075934 As per our attached report of even date For G.Dutta & Co. Chartered Accountants F.R. No. 002136C Sd/-(Gopal Dutta) Partner M.NO. 071312 Place: Jaipur Dated: 30/05/2015 |