NOTE - 1 SIGNIFICANT ACCOUNTING POLICIES :- a) Basis of brparation of Financial Statements The financial statements are brpared in accordance with generally accepted accounting principles in India. The company has brpared these financial statements to comply in all material respects with the accounting standard notified under section 133 of Companies Act, 2013. The financial statements have been brpared on accrual basis and under historical cost convention. The accounting policies adopted in the brparation of financial statement are consistent with those of brvious year. b) Use of Estimates The brparation 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. c) Revenue Recognition Sales of Products are recognized when significant risks and rewards of ownership of products are passed on to customers. Sales are stated at realizable values and are recorded net of excise duty, sales tax and returns. Dividend Income is recognized when the right to receive dividend is established. Interest income is recognized on the time proportion method. d) Fixed Assets (i) Fixed assets are stated at their original cost including interest, borrowing cost and other expenses directly related to qualifying assets during construction period. (ii) Cost of fixed assets not ready for their intended use before such date is disclosed under Capital Work in Progress. (iii) All costs relating to up gradations/ enhancements are generally charged off as revenue expenditure unless they bring significant additional benefits of lasting nature. (iv) CENVAT Credits on capital goods are recognized in the books when the company becomes eligible to claim the same and are reduced from the cost of respective asset. Debrciation on these assets are calculated on the net amount. e) Debrciation (i) Assets individually costing Rs. 5,000/- or less are debrciated fully in the year of purchase. (ii) Debrciation on Leasehold land is over the primary period of lease. (iii) Plant and Equipment acquired before 1st April 2006, building including non-factory building, furniture, fixture and vehicle are debrciated under WDV method at rates brscribed in Schedule II of Companies Act, 2013. (iv) Plant and Equipment acquired after 1st April 2006 and computer are debrciated in accordance with Schedule II of Companies Act, 2013. (v) Debrciation on Effluent Treatment Plant has been provided @ 100%. f) Borrowing Cost The borrowing cost attributed to the acquisition or constructions of qualifying assets are capitalized as a part of cost of such assets. A qualified asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to Statement of Profit and Loss. g) Impairment Fixed assets are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the greater of assets net selling price or its value in use. In assessing value in use, the estimated future cash flows from the use of the assets are discounted to their brsent value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased. Impairment loss/reversal thereof is adjusted to the carrying value of the respective assets, which in case of CGU, are allocated to its assets on a prorata basis h) Investments Long term investments are stated at cost net of provisions. Investments in shares of foreign subsidiary is exbrssed in Indian currency at the rate of exchange brvailing at the time when the original investment was made. When market value becomes less than cost, provision is considered only when the diminution is considered as being permanent by the management. i) Valuation of Inventories Inventories of Raw Materials, Stores and Spare parts, Packing Material, Fuel, Work-in-progress, Stock in Trade and Finished Goods are stated 'at cost or net realisable value, whichever is lower'. Stock of Scrap and Spent Acid is valued at net realizable value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition. Stores and Spares are valued on Weighted Average Cost Basis. All other inventories are valued at Cost on 'First-In-First-Out' Basis. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company. j) Foreign Currency Transaction Foreign currency transactions are recorded by applying the rates on the date of transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the Statement of Profit and Loss for the period. All foreign currency denominated monetary assets and liabilities are translated at the exchange rates brvailing on the balance sheet date. The resultant exchange differences are recognized in the Statement of Profit and Loss for the year. All non-monetary assets and liabilities are stated at the rates brvailing on the date of the transaction. Exchange difference arising on reporting of long term foreign currency monetary items relating to acquisition of debrciable capital assets at rate different from those at which they were initially recorded in the brvious financial statement are being debrciated over the balance life of assets. Exchange difference arising on reporting of all other long term foreign currency monetary items having a term of twelve month or more at the date of origination is amortised over the balance period of such monetary item. k) Retirement Benefits (i) Short term employee benefits are recognized as expenses at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered. (ii) Post employment and other long term employee benefit are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expenses is recognized at the brsent value of amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of employment and other long term benefit are charged to the Statement of Profit and Loss. l) Research and Development cost (i) Revenue expenses on Research and Development are written off to the Statement of Profit and Loss. (ii) Capital expenditure on Research and Development is shown as addition to fixed assets. m ) Taxation Current tax is determined as the amount of tax payable in respect of taxable income for the financial year. Deferred tax is recognized subject to the consideration of prudence in respect of deferred assets on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. In the event of unabsorbed debrciation and carry forward loses, deferred tax assets are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize such assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets. n) Provisions A provision is recognized when the Company has a brsent obligation as a result of past event and 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 based on technical evaluation and past experience. Provisions are not discounted to its brsent value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. o) Insurance Claims Claims receivable are accounted at the time of lodgment depending on virtual certainty of receipt. NOTE - 3 The order book position has improved during the financial year as compared to the past including long term supply agreements. This will improve the overall performance of the company in addition to absorbing accumulated losses. Hence although there are accumulated losses as on 31st March, 2016, considering the overall strategy, going concern would not be affected and accordingly financial statements have been brpared. NOTE – 4 Previous year's figures have been regrouped and re-classified wherever necessary. As per our Report of even date For and on Behalf of the Board of Directors For V. SANKAR AIYAR & CO. Chartered Accountants Firm Regn. No. 109208W A. D. JAVERI Chairman & Managing Director A. R. DOSHI Director D. M. SHAH Director ARVIND MOHAN Partner Membership No. 124082 A. A. JAVERI Director & Chif Financial Officer N. R. JANI Company Secretary Smt. S. A. JAVERI Executive Director - Administration Place : Mumbai Dated : 27th May, 2016 |
