SIGNIFICANT ACCONTING POLICIES BASIS OF brPARATION OF FINANCIAL STATEMENTS The financial statements have been 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 Standards, notified under section 133 of the Companies Act. 2013 read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been brpared on an accrual basis and under the historical cost convention The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year. USE OF ESTIMATES The brparation of financial statements in conformity with Accounting Principles generally accepted in India, requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized. Fixed Assets & Debrciation Due to application of schedule II to the Companies Act, 2013 with effect from April 1, 2014, the management has re-estimated useful life and residual values of all its fixed assets and determined separate useful life for each major asset, if they have useful life i.e. materially different from that of remaining asset. The management believes that the debrciation rates currently used fairly reflect its estimate of the useful life and residual value of fixed asset. If asset has zero remaining useful life on the date of Schedule II becoming effective, i.e. April 01, 2014, its carrying amount, after retaining any residual value, is charged to the opening balance of retained earnings. The carrying amount of other assets i.e., whose remaining useful life is not nil on April 01. 2014. is debrciated over their remaining useful life. Up to March 2014. the assets are debrciated on Straight Line Method as per Schedule XIV of the Companies Act, 1956 FOREIGN CURRENCY TRANSACTIONS a. Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction or that approximates the actual rate at the date ol the transaction." b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference. c. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss. . j- 6 INVESTMENTS Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments are stated at cost. 7 RECOGNITION OF INCOME AND EXPENDITURE Sale are recognized whe goods are supplied and are recorded net of rebates and sale tax but inclusive of excise duty. Expenses are accounted for on accrual basis. 8 CURRENT & DEFERRED TAX Tax expense comprises of current tax and deferred tax. Current lax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed debrciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to cealise the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date. 9 PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provision is recognised in the accounts when there is a brsent obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. 10 CORPORATE SOCIAL RESPONSIBILITY (CSR) In accordance with the clarification issued by the Institute of Chartered Accountants of India, vide FAQ's on the provisions of CSR applicability under the Companies Act, 2013, the Company has adopted the policy to charge CSR expenditure incurred as an appropriation of pr</fit with effect from April 01, 2014. 11 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles. As per our seperate report of even date. For Jain & Assoiciates Chartered Accountants FRN : 001361N Sd/- Krishan'Mangawa, Partner M. No. : 513236 For and on behalf of the Board Akhil Dada (Chairman) DIN No: 02321706 Harvinder Chopra (Managing Director) DIN No : 00129891 Sd/- Bhawana Gupta (Director, Company Secretary & CFO) DIN No : 07144762 Date : 30.5.2015 Place : Gurgaon |
