| I. INVENTORIES:
Stock -in-Trade has been taken, valued and certified by the management.
a) Inventories including Raw Materials and Stores spares & Equipment
are valued at cost. Finished Goods is valued at lower of cost or net
realizable value. Cost for this purpose includes purchase price and
freight. Cost for the purpose of finished goods also includes cost of
conversion. Scrap and waste is valued at net realisable value. The
method of valuation of Stock is in accordance with Accounting Standard
- 2. Inventories have been valued using the FIFO method.
b) As stated to us, there are numerous items in stock of stores &
spares and, so, it is not possible to maintain the quantitative details
of stores & spares. Hence, quantitative details of stock of spares have
not been given.
II. Balance of Sundry receivables and payables are subject to forma!
confirmation. All sundry debtors are unsecured but considered good by
the management to the extent of their book value.
III. Estimated amount of capital contracts remaining to be executed not
provided for net of advances :- Rs. NIL (Last year NIL)
IV. Claims against the company not acknowledge as debts Nil.
V. Previous year's figures have been re-grouped and re-arranged
wherever considered necessary.
VI. Remuneration to Directors Rs. 12,00,000.00/- (Previous Year
4,86,000/-).
VII. Secured Loan
Stock, Receivables and Plant & Machineries are hypothecated to the bank
as security for amount borrowed
VIII BORROWING COST:
Borrowing Cost attributable to the acquisition and construction of
qualifying assets are capitalized. After borrowing costs are
recognised as an expense in period in which they are incurred.
IX. Recognition of Deferred Tax Liabilities
The provision for current Income Tax is based on the taxable profit
from April 1, 2012 to March 31, 2013. Deferred Income Tax reflects the
impacts of current year timing differences between taxable income/
losses and accounting income for the year and reversal of timing
differences of earlier years. Deferred tax is measured based on the
tax rates and the tax laws enacted or substantively enacted at the
Balance sheet date. Deferred tax are recognized only to the extents
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized. In respect of carry forward looses, deferred tax assets are
recognized only to the extent there is virtual certainty that
sufficient future taxable income will be available against which such
losses can be set off.
Pursuant to AS-22 issued by The Institute of Chartered Accountants of
India, Deferred Tax Liability of Rs. 28,25,895.00 which arose during
the year on account of timing difference between amount of depreciation
as per books of accounts and depreciation as claimed under the
provisions of Income Tax Rules, 1962; amounts to Rs.7,22,604.00 which
has been recognized in the books of accounts.
3. RETIREMENT BENFITS
Company's contribution to PF, ESI etc. are charged to Statement of
Profit & Loss on accrual basis.
4. RETIREMENTS LEAVE ENCASHMENT
Provision for gratuity liability is made on the basis of premium
actuarially assessed at the end of the period and intimated by the Life
Insurance Corporation of India in terms of a policy taken with them.
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