1. Trade Payables includes Rs. 2,20,582/-( previous year Rs. 4,84,449/-) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act,2006. b No Interest is paid / payable during the year to any enterprise register under the MSMEDA,2006
2. The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of the suppliers under the MSMESA, 2006.
3. General:
These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to circular 15/2013dated 13-9-2013 read with circular 08/2014 dated 4-4-2014, till the standards of Accounting or any addendum there to are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Ac-counting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under section 211(3C) ( Companies Accounting Standards) Rules, 2006, as amended) and other relevant provisions of the Companies Act,1956.
All the assets and liabilities have been classified as current and noncurrent as per the Company’s normal operating cycle and other criteria set out in Schedule VI of the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be 12 months for purpose of current - noncurrent classification of assets and liabilities.
4. Recognition of Income and Expenditure :
5. Revenues / Incomes and Costs / Expenditure are generally accounted on accrual, as they are earned or incurred.
6. Sale of Goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.
7. Use of Estimates:
The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.
8. Fixed Assets:
9. Land Free Hold - At Cost
10. Other Fixed Assets - At Cost less Depreciation
‘Cost’ for the aforesaid purpose comprises of its purchase price and attributable cost for bringing the asset to its working condition for its intended use.
11. Depreciation :
12.. Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the provisions of Company Act, 1956 at the rates specified in Schedule XIV of the Companies Act 1956, as revised by GSR No.756 (E) Dated 10.12.93 by the Central Government, except in case of following Assets, which are amortized over the period as estimated by the management, as under. :-
Nature of assets Period of Amortization
Building 60 years
Plant & machinery 60 years
Office equipment’s 10 years
Vehicles 8 years
13. Depreciation on Fixed Assets acquired during the year is provided from the month in which assets is put to use.
14. Plant & Machinery acquired during the year but not put to use are shown as Capital Work-In-Progress and no depreciation is claimed thereon. _
iv. Depreciation on Fixed Assets disposed off during the period under consideration is pro-vided up to the month of disposal.
15 Investments:
Non- current investments are stated at cost.
16. Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
17. Impairment of Assets
Impairment loss is provided to the extent the carrying amount(s) of assets exceed their recoverable amount. Recoverable amount is the higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.
18. Inventories
Items of inventory are valued at Cost or Net Realizable Value, whichever is lower as ascertained by the management. Cost is determined on the following basis. :-
19. Retirement Benefits to Employees
20. The Company contributes towards Provident Fund and Family Pension Fund, which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution as required under the statutes / rules.
21. Gratitude liability as on 31-03-2016 has been recognized in Balance Sheet. No provision is required to be made for leave encashment.
22. Foreign Currency Transactions
Transactions in foreign currency are recorded at the original rates of exchange in force at the time transactions are affected. At the year-end, monetary items denominated in foreign currency and exchange contracts are reported using closing rates of exchange. Exchange differences arising thereon and on realization of foreign exchange are accounted in the relevant year, as income or expense.
23. Taxes on Income
Tax expense comprises of both current and deferred tax at the applicable enacted / substantively enacted rates. Current tax represents the amount of income-tax payable in respect of the taxable income for the reporting period. Deferred tax represents the effect of current year timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred Tax Assets are recognized only to the extent that there is a reasonable certainty that sufficient future Taxable Income will be available against which such Deferred tax Assets can be realized.
24. The accounts of customers / suppliers are under reconciliation / confirmation and the same have been taken as per balances appearing in the books. Any difference arising on account of such reconciliation, which are not likely to be material, will be accounted for as and when these reconciliation are completed.
25. Previous year’s figures have been regrouped / reclassified wherever considered necessary.
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