Corporate information B.C.POWER CONTROLS PVT. LTD. (the "Company") was a private limited company domiciled in India and incorporated under the provisions of the Companies Act 1956. But recently, it has been converted to public limited company and has raised its share capital by public issue. The company is engaged in manufacturing & selling of Insulated Cables and Copper Wires as well as trading of Copper Scrap. The company caters to domestic market and sells goods to exporter as well. The Company's registered office is in New Delhi and Manufacturing Unit at Bhiwadi. NOTE27:^H Significant Accounting Policies 27.1 Basis of brparation of financial statements (a) Basis of Accounting: The financial statements have been brpared in accordance with Generally Accepted Accounting Principles (GAAP) in India and brsented under the historical cost convention on accrual basis of accounting to comply with the accounting standards brscribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956. (b) Use of Estimates: The brparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the year. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Differences between actual results and estimates are recognized in the period in which the results are known/ materialized. 27.2 Inventories As certified by the management, Finished Goods are valued at Sales Price, Raw Materials and Traded Goods are valued at cost, WIP is valued at cost (including Cost upto the stage of Completion). Scrap is valued at net realizable value. 27.3 Debrciation and Amortization Debrciation on fixed assets is provided to the extent of debrciable amount on written down value method (WDV) at the rates and in the manner brscribed in Schedule XIV to the Companies Act, 1956 over their useful life 27.4 Revenue Recognition Revenues/Incomes are generally accounted on accrual, as they are earned. Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer. VAT is accounted on exclusive method. CST and VAT Payable are not included in the sales price. However, CST paid on the purchase of goods is included in the cost of purchases. Sales are stated gross of Excise Duty as well as net of Excise Duty, Excise Duty being the amount included in the amount of gross turnover.Interest income is recognized on accrual basis. 27.5 Fixed Assets Fixed assets are carried at cost less accumulated debrciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and debrciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its brviously assessed standard of performance. 27.6 Foreign currency transactions and translations All transactions in foreign currency, are recorded at the rates of exchange brvailing on the dates when the relevant transactions take place. 27.7 Investments Investments include Long-Term Investments only and are stated at cost. 27.8 Employees Benefit The Company's contribution to Employees State Insurance Fund and Provident Fund is considered as defined contribution plan and is charged as an expense as it fall due based on the amount of contribution required to be made. No provision of Gratuity, Bonus, Leave Encashment, Leave Travel Allowance etc. has been made in the accounts and these will be accounted for on Actuarial Basis. 27.9 Borrowing Costs Borrowing costs include interest and amortization of ancillary costs. Costs in connection with th e borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Stat ement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted. 27.10 Earnings per share The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year. 27.11 Taxes on income Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. 27.12 Impairment of Assets The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their brsent value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets. 27.13 Provisions and contingencies A provision is recognized when the Company has a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities, if any are disclosed in the Notes. Subject to our report of even date. For and on behalf of directors FOR MEHTA & COMPANY CHARTERED ACCOUNTANTS FRN : 000772C (ARUN KUMAR JAIN) Director DIN:00438324 (RAJAT JAIN) Director DIN: 00438444 Sd/- (PRAPHULL MEHTA) Partner M.No.:403372 Sd/- (VIVARTH DOSAR) Company Secretary M.No.: A33120 PLACE: BHIWADI DATE: 30 MAY 2014 |