Mar 31, 2015
1. Corporate Information :
The Company is engaged in the business of manufacturing and selling of UPVC pipes and fittings since Five years.
2. Accounting Policies
3, Basis of Accounting
The financial Statements are prepared under the historical cost basis of accounting and evaluated on a going-concern basis, with revenue and expenses accounted for on their accrual to comply in all material aspect with the applicable accounting principles and applicable Accounting Standards notified U/s. 211(3C) of the Companies Act, 2013 and other relevant provisions of the Companies Act, 2013.
b. Use of Accounting Estimates
The preparation of financial statements require estimates and assumptions to be made that affect the reported balances of assets as on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimate are made as and when the management becomes aware of the changes in the circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to the financial statements.
C. Conversion of Pvt Ltd into Public Ltd Company
During the previous year pvt ltd company converted to public ltd company and would become effective from the date of 23.09,2014. Legal provision for conversion of pvt ltd in to public ltd co followed and effect for The same has been given in the books of accounts and company is continue on going concern basis.
d. Revenue Recognition
The revenue recognition principal state that, under the accrual basis of accounting, revenue should be recognized when an entity has substantially completed a revenue recognition process thus record the revenue when it has been earned. Revenue is being recognized as per AS - 9 REVENUE RECOGNITION, when an entity has substantially completed a revenue generation process.
e. Fined Assets
Fixed assets are stated at historical cost (net of Modvat/ Cenvat/ VAT) less accumulated depreciation. Subsidy received against fixed assets is reported as per AS-12 ACCOUNTING FOR GOVERNMENT GRANTS as "Deferred Income" and the same is apportioned to P&L A/c at the same rate applicable for fixed assets of depredation,
f. Depreciation and Amortization
Depreciation on Fixed Asset has been provided as per useful life of asset given in Schedule 2 of Companies Act. 2013. During the reporting financial year there has been change in method of depreciation from WDV to SUM basis. The retrospective effect for change in Method of Depreciation is given as per AS-6 ACCOUNTING FOR DEPRECIATION and the same is treated as Extra Ordinary item and has been credited to Profit and loss account. The amount of such depreciation reversed back is Rs. 82,78,646.527-.
Raw materials are valued at lower of cost and net realizable value Cost is determined on first-in-first-out method, Inventories of manufactured finished goods are valued at net realizable value.
Investments are considered as long term (non current) investment and valued at cost- Any diminution in the value of long term (non current) investments, other than temporary, is recognized in the books of accounts. The fair market value of investment in Shares of 'Captain Polyp last Limited! is Rs.4,37,40,000/- Hence there is no diminution in the value of investment and its shown at cost in books of accounts as per AS- 13
ACCOUNTING OF INVESTMENT.
i. Sorrowing Costs
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of those assets till such time the asset is ready for its intended use. Other borrowing costs are recognized as expenses in the period in which they are incurred
j. Provision and Contingencies
Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the estimate of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or present obligation that arise from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
K. Provision for Current and /deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the income-tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates applicable on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future. Calculation of Deferred Tax a$ under:
l. Cash Flow Statement
Cash Flows are reported using indirect method, whereby profit/floats) before extraordinary items and taxes is adjusted for the effect of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities Of the Company are segregated based on the available information,
m. Employee Benefits
Provident Fund: Contribution towards provident Fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Scheme as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.
n. Earning per Share (EPS)
Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year and for all /ears presented is adjusted for events, such as bonus shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For The purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.