NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2015 1. Quoted investments have been valued at cost, Market value of all the quoted shares as at the balance sheet date is Rs. 407959/- However diminution in value other than temporary is provided. The profit / loss arising on account of sales are recognized in the statement of Profit & Loss Account. 2. Sundry Debtors, Creditors, Advance from Customers, Sundry Deposits are subject to Confirmation and are as per books of accounts and will require necessary adjustment on Reconciliation. 3. Sales Tax Assessments for earlier years are in progress. Demands, if any shall be accounted for on the completion of assessments. 4. Contingent Liabilities a. For a demand of Central Excise Duty being contested - Rs. 50,76,707/- (Including interest of Rs. 15,22,721/-) for the period from F.Y. 2007-08 to 2011-12. The matter is pending with the Customs, Excise & Service Tax Appellate Tribunal, New Delhi. b. Claims not acknowledged as debts - Nil 5. In the opinion of the directors of the company current assets, loans and advances, unsecured loans and current liabilities have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provisions for all know liabilities have been made. 6. Deferred Tax Liability/ Assets As required by Accounting Standard -22'' Accounting for taxes on income '' issued by Instituted of Chartered Accountants of India, deferred tax assets on profits for the year has been created. 7. Figures have been rounded off to the nearest paisa. 8. Previous year figures The company has reclassified brvious year figures to conform to this year's classification. 9. SIGNIFICANT ACCOUNITNG POLICIES FOR THE YEAR ENDED 31.03.2015 a. Method of Accounting The financial statement are brpared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. b. Impairment of Assets The Company identifies impairable tangible fixed assets at the year end in term of cash generating unit concept for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets if indication of impairment exists within the meaning of Para 5 to 13 of AS-28 issued by ICAI. Impairment loss if any when crystallizes in charged against revenue of the year. c. Inventories Inventories are valued at lower of cost or net realizable value. Cost is determined on FIRST IN FIRST OUT basis. Cost is comprises of all cost of purchase, cost of conversion and other costs incurred in bring the inventories to their brsent location and condition. Raw material and Packing material cost is exclusive of excise duty paid / payable on purchases, as the same has been set off against excise duty payable on sale of finished goods under CENVAT scheme. d. Revenue Recognition Revenue is recognized when there is reasonable certainty of its ultimate realization / collection. e. Investments Investments are stated at costs. Provision is made, where; there is a permanent fall in the value of investments. f. Provision for Taxation (i) Provision for income tax is made on the basis of the estimated taxable income for the current accounting period in accordance with the Income Tax Act, 1961. (ii) Deferred tax resulting from timing difference between book and tax profit is accounted for under liability method at the current rate of tax to the extent that the timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed debrciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. g. Fixed Assets and Debrciation (a) Fixed Assets are stated at cost including all direct incidental expenses. (b) Debrciation on Fixed Assets is provided on Straight line method at the rates and in the manner brscribed in Schedule XIV of the Companies Act, 1956. h. Provisions, Contingent Liabilities and Contingent Assets A provision is recognized when the company has a brsent obligation as a result of a past event, 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 are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure of contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements. i. Earnings Per Share Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. j. Foreign Exchange Transactions (i) Transactions in foreign currencies are recorded at the exchange rates brvailing at the date of transactions. (ii) The exchange rate fluctuation in revenue accounts is adjusted in the respective head in Statement of Profit and Loss. k. Employee Retirement Benefits Short term employee benefits All employee benefits payable/available within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages and bonus etc., are recognised in the statement of profit and loss in the period in which the employee renders the related service. Defined benefit plans Defined benefit plans of the company consist of gratuity and leave encashment. Gratuity : The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to the vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee's salary and tenure of employment. Vesting occurs upon completion of five years of service. Leave Encashment As per company's policy, eligible leaves have paid on every year basis. Defined contribution plans-Defined contribution plans of the company consist of Provident fund. Provident Fund The company makes specified monthly contribution towards the employees' provident fund for the eligible employees. The contribution made to provident fund are charged to the statement of profit and loss as and when these become payable. Auditors Report As per separate report of even date attached For S. PRASAD AGARWAL & CO. Chartered Accountants Firm Regn. No. 021425N (S.P. Agarwal) Proprietor M.No. : F-092194 For and On behalf of the Board of Directors Murli Manohar Director Din: 01173857 Sorabh Gupta Director Din: 00227776 Ziaul Hasan Khan Company Secretary M.No. ACS29983 Place - New Delhi Dated - 30.05.2015 |