| (1) BASIS FOR PREPARATION OF ACCOUNTS
(i) The Company generally follows the mercantile system of accounting
and recognizes significant items of income and expenditure on an
accrual basis except in case of Accumulated leaves which are accounted
on payment basis.
(ii) The Financial Statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and provisions of the Companies Act, 2013 as adopted
consistently by the Company.
(iii) The Financial Statements comply with the Accounting Standards
issued by the Institute of Chartered Accountants of India as referred
to Sec 133 of the Companies Act, 2013, of India except AS -15
"Employee's Benefits".
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
(2) ASSETS AND DEPRECIATIONS :
TANGIBLE ASSETS
(i) The Gross Block of Fixed Assets is shown at the cost of acquisition
which includes Taxes, Duties and other identifiable direct expenses.
(ii) Depreciation has been provided on Straight Line Method based on
life assigned to each asset in accordance with Schedule II of the
Companies Act, 2013. Residual Value has been assigned to each asset in
accordance with Schedule II of the Companies Act, 2013.
(iii) Depreciation on additions to fixed assets is being provided on
pro- rata basis from the next month of acquisition and on assets sold,
discarded, demolished or scrapped, the same is being provided up to the
month in which the said asset is sold, discarded, demolished or
scrapped.(iv) The balance amount brought forward as Written Down Value
of Fixed assets whose remaining useful life as on 31st March, 2014 is
Nil, is transferred to Retained Earnings after setting aside the
residual value for those Fixed Assets.
(3) INVESTMENT :
(i) Unquoted Investments are valued at cost of acquisition.
(ii) Provision for dimunition in value of long term investment is made
only if such a decline is other than temporary.
( 4 ) INVENTORIES :
(i) Raw Materials, Packing Materials are valued at Landed Cost.
(ii) Stores, Spares and consumable are valued at Landed Cost.
(iii) Finished Products and Work in progress are valued on the
principle of direct cost or estimated net realisable value whichever is
lower.
(iv) Scrap generated on manufacturing of barrel are valued at
realizable value.
(5) USE OF ESTIMATES :
The preparation of Financial Statements require estimates and
assumption to be made that affect the reported amount of assets and
liabilities on the date of Financial Statements and the reported amount
of revenues and expenses during the reported period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
(6) REVENUE RECOGNITION :
(i) Sales are recognized when goods are supplied and are recorded net
of trade discounts and rebates.
(ii) Interest income on investments is booked on a time proportionate
basis taking into account the amounts invested and the rate of
interest.
(iii) Dividend income is recognised when the right to receive dividend
is established.
(7) RETIREMENT BENEFITS :
(i) Contributions to Provident Fund & Family Pension Scheme are
accounted on accrual basis and charged to Profit and Loss Account for
the year. (ii) The Company has adopted a policy to make payment of
accumulated leaves at the time of termination of its employees. Hence,
no provision on account of leave encashment is made in the books of
accounts.
(iii) The Company accounts for Gratuity on the basis of Management
estimates.
(8) TREATMENT OF CONTINGENT LIABILITIES :
Contingent Liabilities are determined on the basis of available
information and disclosed by way of Accounts.
ACCOUNTING FOR TAXES ON INCOME :
(9) Current tax is determined as the amount of tax payable in respect
of taxable income for the year.
Deferred tax is recognized, on timing difference, being the difference
between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognized if there is virtual certainty that
sufficient future taxable income will be availbale against which such
assets can be realized. Other deferred tax assets are recognized only
to the extent there is reasonable certainty of realization in future.
Such assets are reviewed at each Balance sheet date to reassess
realization.
Deferred tax assets and liabilities are measured using the tax rates
and laws that have been enacted on the balance sheet date.
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