| 1. BASIS OF PREPARATION:
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP).These financial statements have been prepared to comply
in all material respects with the Accounting Standards notified by
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 2013. The financial
statements have been prepared under the historical cost convention on
an accrual basis and going concern basis. The accounting policies have
been consistently applied by the company are consistent with those used
in the previous year.
2. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
3. INVENTORIES :
I. Raw Material, Stores & Spares & other trading products are valued
at cost determined on FIFO basis .
II. Finished goods are valued at cost or net realizable value
whichever is lower.
3. FIXED ASSETS AND DEPRECIATION
i) Fixed assets are stated at historical cost of acquisition and
installation.
ii) Depreciation is provided on all depreciable assets on straight-line
basis at the rates and in the manner prescribed in Schedule II of the
Companies Act ,2013 . Depreciation on addition / deletion is charged on
pro rata basis.
iii) Consequent to following the new provisions as stated in schedule
II , necessary adjustment entries have been made in the books to retain
5% residual value of original cost.
4. RETIREMENT BENEFITS :
i) The Company's contribution to recognized provident fund and
employee's state insurance contribution is charged to revenue.
ii) Provision for gratuity liability has been made .
5. CASH FLOW STATEMENT
Cash flow statement has been prepared under indirect method .
6. TAXATION
Current Tax is determined as per the current tax provisions applicable
for Income Tax. Deferred tax is recognized subject to the consideration
of prudence in respect of deferred tax assets/liabilities on timing
difference being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent years.
7. IMPAIRMENT :
The management assesses, using external and internal recourses whether
there is an indication that any asset may be impaired If an asset is
impaired ,the company recognizes an impairment loss as excess of the
carrying amount of the asset over recoverable amount.
9. Managerial Remuneration: NIL
10. Balances of Sundry debtors, creditors and advances are subject to
confirmation & reconciliation.
11. Related party disclosures as required by AS - 18
A. Transactions between the Company and related parties and the status
of outstanding balances as at March 31, 2015
Note :The entire assets and liabilities are not allocable between these
two segments because of nature of business.
13. Previous year's figures have been regrouped and rearranged wherever
considered to make them comparable and in lines with the requirement of
presentation. Figures are rounded to nearest rupees.
14. There are no transactions with SSI units, hence reporting for SSI
units not required.
|