Significant accounting policy Basis of accounting The financial statement are brpared under historical cost convention on accrual basis and in accordance with the requirement of the companies act 2013 and comply with the accounting standards specified by the institute of chartered accountants of India Fixed assets debrciation and treatments of expenditure during construction a. all fixed assets are valued at cost which include expenditure incurred in acquisition and contraction installation and other related expenses & differences in foreign exchange liability related to assist acwuired in foreign currency in accordance with notification dated 31st march 2009. b. debrciation on fixed assed is provided to the extent of debrciable amount provided on straight line method debrciation is provided based on useful life of the assets as brscribe in schedule ll in to the companies act 2013. In respect of additional on extension forming an integral part of existing assets debrciation provided as aforesaid over the useful life of the respective asset. c. leasehold assets expenditure incurred for acquiring software is stated at acquisition cost less accumulated amortization they are amortized over their useful life not exceeding five year. Intangible given on operating lease a.all assets given on operating lease are capitalized as fixed assets and shown separately in the fixed assets schedule. b. debrciation on fixed asset is provided to the extent of debrciable amount provided on straight line method .debrciation in schehule ll in to the companies act 2013. In respect of additions on extension forming an integral part of existing fixed assets debrciation provided as aforesaid over the usefull life of the respective asset. c.short debrciation for earlier period as per revised schedule ll of companies act 2013 based on useful life has been adjusted from retained earnings. v)valuation of inventory 1.raw materials and general stores are valued at cost or realizable value whichever is less excluding cenvat and vat credit by fifo method 2.work in process is calqued at raw material cost plus estimated overheads or realizable value whichever is less but excluding cenvat and vat credit c. finished good valued at raw material cost including estimated overheads or net realizable valor whichever is less the baler includes excise duty paid payable on such goods scrap is valued at realizable value. This value includes excise payable thereon. Sales Sales are inclusive of excise duty and sales tax net of returns claims discount etc domestic sale is recognized at the point of dispatch billing exports sales is recognided on the date of baill of lading Employee retirement benefits Post employment employee benefits a. defined contribution plan: the company has defined contribution plan for post employment benefits in the form of provident fund for all employees which is administer by regional all employee which is administered by regional provident fund commissioner. Provided fund is classified as defined contribution plan as the company has no further obligation beyond beyond making the contribution plan is charged to the statement of profit and loss as and when incurred. b. defined benefit plans funded plan : the company has defined benefit plan for post employment benefit in the form of gratuity for all employee which is administered through life insurance corporation lic liability for above defined benefit plan is provided on the basis of valuation as at the balance sheet date carried out by an independent actuary. The actuarial method used for measuring the liability is the projected unit credit method 2.other long term employee benefit Liability for compensated absences (unutilized benefit is provided on the basis of valuation as at the balance sheet date carried out by an independent actuary. The actuarial valuation method used for measuring the liability is the projected unit credit method in respect of past service 3.termination benefits are recognized as an expense as and when incurred 4.the actuarial gains and losses arising during the year are recognized in the statement of profit and loss of the year with out resorting to any amortization Sales tax incentive Sales tax deferred under the incentive scheme of govt of Maharashtra has been shown as unsecured loans Investment Long term investments are stated at cost or fair value whichever is less temporary fall in market value if any is not provided for current investment are carried at lower of cost and fair value Foreign currency transaction A)foreign currency transaction are recorded at the exchange rate brvailing at the time of the transaction b)foreign currency transaction remaining unsettled at the year end and not covered by forward contract are translated at the covered by forward contract are translated at the exchange rete brvailing at the year end brmium/ discount on forward contracts are amortized over the period of the contract c. the difference in translation of monetary assets and liability and realised gains and losses on foreign exchange transation are recognized in the statement of profit and loss except as referred in para d)below d company has exercised option notification dared 31st march 2009 to account for gain/loss foreign exchange liability for fixed assets assets acquired in foreign currency. Borrowing costs Borrowing costs that are attributable to the acquisition of fixed assets are capitalized for the period until the asset is ready for its intended ure . other borrowing costs are recognized as an expense in the period in which they are incurred Taxes Tax expense for the year comprises of current income tax wealth tax and deferred income tax current income tax provision has been determined on the basis of reliefs deductions for available under the income tax act deferred tax is recognized for all timing differences subject to the consideration of prudence applying the tax laws which have been enacted or substantively enacted by the balance sheet date deferred tax asset is recognized only to the extent that there is virtual certainty that the assets will be realized in future Provision contingent liabilities and contingent assets Provision 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 assets are neither recognized not disclosed in the financial statement . contingent liabilities are disclosed separately. Impairment Impairment of assets are assessed at each balance sheet date and loss is recognized whenever the recoverable amount of an asset is less than its carrying amount Excuse duty Excise duty payable on products is accounted for at the time of dispatch of goofs from the factory but finished goods stocks held at the year end Excise duty related to the difference between the closing stock and opening stock of finished goof has been recognized separately in the profit loss under note of other expenses under manufacturing expenses. 1.payment to micro small and medium enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information there is no overdue payable to msmr unit beyond the period specified in micro small and medium enterprises development 2.as per the requirement of schedule ll to the companies act 2013.w.e.01.04.2014 the company has charged debrciation based on revised remaining useful lives of the assets as a result the debrciation charge for the year ended 31st march 2015 is higher Rs.135.lacs further wherever remaining useful lives of assist have ended the carrying value as at 1st aril 2014.amounting to Rs. 42.67lacs net of deferred tax Rs.20.49lacs have been adjusted agaist opening balance of the retained earnings 3.brviour year figures are regrouped rearranged and reclassified whenever necessary to confim to current year brsentation AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF BOARD OF DIRECTORS FOR SUNDARLAL, DESAI & KANODIA, CHARTERED ACCOUNTANTS Sd/-(M.B. DESAI) PARTNER Membership No.33978 V.C. SARAF R.R. SARAF CHAIRMAN MANAGING DIRECTOR P.C. JALAN H.H. JOSHI CHIEF FINANCIAL OFFICER COMPANY SECRETARY DATED : 29TH MAY, 2015 PLACE : MUMBAI |