SIGNIFICANT ACCOUNTING POLICIES 1. basis of brparation of accounts i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles. ii) The accounts of the Company are brpared under the historical cost convention on accrual basis and as per applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and disclosures requirement of schedule VI to the Companies Act 1956. 2. fixed assets and debrciation Fixed assets are stated at cost of acquisition less accumulated debrciation. Debrciation on fixed assets has been provided on written down value method at the rate and in the manner brscribed in Schedule XIV to Companies Act, 1956. Debrciation on any addition in fixed assets during the year has been charged on pro-rata basis. 3. taxes on income/deferred tax The current Corporate Tax of Rs. 3,65,837/- is calculated as per applicable tax rates and laws. Deferred Tax is provided on timing differences between tax and accounting treatment that originate in one period and are expected to be reversed or settled in subsequent periods. 4. revenue recognition Revenue in respect of sale of goods is recognised at the point of dispatch to customers in case of direct sale and at the point when the sales report is received from the consignee agents in case of consignment sales. 5. employee benefits gratuity No provision has been made in the accounts against the liability in respect of future payment of gratuity to employees as the same is accounted for on cash basis. No actuarial valuation of gratuity is done and as such liability is unascertained. 6. provisions, contingent liabilities and contingent assets Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements. 1. In the opinion of the management the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provisions for all the known liabilities are adequate and not in excess of the amount considered reasonably necessary. 2. Previous year figures have been re-grouped or re-arranged wherever necessary. 3. Note 1 to 19 are annexed to and from an integral part of the Balance Sheet as at 31st March 2015 and Statement of Profit & Loss for the year ended as on that date. Auditor's Report As per our report of even date attached For Prakash & Santosh Chartered Accountants FRN: 000454C Surendra Kumar Jain Chairman cum Managing Director Deepak Kumar Jain Director Arun Kumar Partner Membership No. 087378 Nidhi Jain Chief Financial Officer Sanjeev Tripathi Company Secretary Date: 20-05-2015 Place: New Delhi |