NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES - A. Basis Of Preparation Of Financial Statements The financial statements are brpared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 2013 and the applicable accounting standards issued by the ICAI. B. Use Of Estimates : The brparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimate are recognised in the period in which the same are known/materialized. C. Fixed Assets : Fixed Assets including Leasehold Land are recorded at cost. The Company capitalizes all costs relating to Fixed Assets acquisition and installation and other financial cost till commencement of commercial Production. The Company has stated its Fixed Assets net of CENVAT/Value Added Tax. D. Borrowing Costs : Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset is ready for its intended use. All other borrowing costs are charged as Revenue Expenditure. E. Debrciation / Amortisation : 1)Debrciation on additions to Assets is calculated as per Schedule II of the Companies Act 2013. Debrciation in the case of uninstalled Fixed Assets has not been provided. 2) Useful life of tangible assets is the same as it is specified in part C of the schedule II to the Companies 2013 Act. The residual value taken is not more than five percent of the original cost of the tangible assets. 3) Debrciation on assets has been provided at the rates and in the manner brscribed in schedule II to the Companies Act, 2013 on Straight Line Method and under the provisions of Sub-Section (2) of Section 123 of the Companies Act, 2013. 4) Debrciation on Assets in Boisar Unit has not been provided as the production was suspended for the entire year therein. 5) Amortization of Intangible Assets has been provided as per Schedule 11 of the Companies Act 2013. F. Inventories (a) Inventories are valued at lower of Cost or Net Realizable Value. (b) Work in Progress is valued at Cost Plus estimated value of overheads. As on 31st March, 2015, the work in progress is not more that the corresponding order value. (c) Finished Goods are valued at Cost or Net Realizable Value whichever is lower. (d) Packing material and Stores and Spares purchased are written off as expenses in the year of purchases. (e) NRV is the estimated selling price in the ordinary course of business. G. Impairment Of Assets : An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impaired loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. H. Foreign Exchange Transactions (a) Foreign Currency Transactions are exbrssed in Indian Currency at the rates brvailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates brvailing at that date. (b) Exchange differences arising on repayment of liabilities incurred for the purpose of acquiring fixed assets are adjusted with the carrying amount of the respective fixed assets. I. Accounting Of Cenvat Transactions : CENVAT benefit is accounted for on accrual basis on purchase of material & assets and incurring of expenses and appropriated against payment of Excise Duty on clearance of Finished Goods. J. Taxation : Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI. Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be. As ascertained by the Management of the company , there is no virtual certainty that future taxable income as per the Income Tax Act,1961 may be available to offset current year's unabsorbed debrciation & business losses under the Income Tax Act,1961. As per Para 17 of the Accounting Standard 22 :- Accounting for Taxes on Income, where an enterprise has unabsorbed debrciation or carry forward of losses under tax laws , deferred tax assets should be recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax asset can be realized. K. Recognition Of Income And Expenditure (a) Incomes & Expenditures are generally accounted on accrual as they are earned or incurred except Interest on taxes and duties which are accounted on payment basis or at the time of assessment, whichever is earlier. (b) Sales are accounted net of Sales Discounts, rebates, etc., if any returns and also Excise Duty and Service tax, VAT and Sales Tax. (c) Packing Material and Stores & Spares purchased are written off as expenses in the year of purchase. (d) Imports are recognised on brsentation of Bill of Entry at the Customs or on retiring the Import document whichever is earlier. (e) Dividend Income is recognised when the right to receive the dividend is unconditional. L. Employee Retirement Benefits (a) Provident Fund is a defined contribution scheme and the Company's contribution to Provident Fund is charged to Profit & Loss Account. (b) Retirement Benefits in the form of Gratuity and Leave Encashment which are defined benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognized in Profit & Loss account. (c) Short Term Employee Benefits are recognised as an expense in the Profit & Loss account for the year in which the related service is rendered. 1. Some of the Creditors / Debtors / Loans / Advances are subject to Confirmations and resultant reconciliation, if any. 2. The Company has not received any intimation from the suppliers under the Micro, Small & Medium Enterprises Development Act 2006 & therefore disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given. 3. In terms of the requirements of the Accounting Standards-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period by the management based on brsent value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management. 4. As per the best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 "Provision, Contingent Liabilities & 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. 5. As at 31st March, 2015, IPO proceeds have been utilised as stated below. The utilisation of fund was as amended and ratified by the shareholder in the AGM held on 30th August, 2011. 6. Sundry Debtors as on the date of Balance Sheet are net of amounts received after discounting of Letter of Credits. 7. Previous Year Figures have been regrouped / Re cast wherever necessary. Signature to the Balance Sheet, Statement of Profit and Loss and notes which form an integral part of accounts. As per our attached report of even date. For Raman S Shah and Associates For and on bahalf of the Board Chartered Accountants Firm Regn.No. 119891W Pooja Soni Company Secretary Chandrashekhar Trivedi Managing Director Din : 00135114 Kiren Shrivastav Director Din 01078946 Raman Shah Partner Membership No. 33272 Kanji Chavda Chief Finance Officer Suresh More Director Din : 06873425 Place : Mumbai date : : 30th May 2015 |