Accounting Policies of Remi Sales & Engineering Ltd. Company

Mar 31, 2014

1.1 SIGNIFICANT ACCOUNTING POLICIES:

i. Basis of Accounting

The Financial Statement are prepared under historical cost convention and generally on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

ii. Fixed Assets

a) Fixed Assets are stated at their original cost which includes expenditure incurred in the acquisition.

b) Depreciation on fixed assets has been provided on written down value method and depreciation on windmill has been provided on state line method as per the rates prescribed in the Schedule XIV to the Companies Act, 1956. Depreciation on addition/deductions during the year is provided on pro-rata basis.

iii. Intangible Assets:

a) Expenditure incurred for acquiring Software is stated at acquisition cost less accumulated amortisation. They are amortised over their useful life not exceeding five years.

b) Goodwill has been amortised in five years.

iv. Investments

Long term investments are stated at cost. Provision for temporary fall in market value, if any, is not provided for.

v. Employee Retirement Benefits

1) Post: Employment Employee Benefits

a) Defined Contribution Plans

The Company has Defined Contribution Plan for Post employment benefits in the form of Provident Fund for all employees which is administered by Regional Provident Fund Commissioner Provident Fund is classified as defined contribution plan as the Company has no further obligation beyond making the contributions. The Company''s contribution to Defined Contribution Plan is changed to the statement of Profit and Loss as and when incurred.

b) Defined Benefit Plans

Funded Plan: The Company has defined benefit plan for Post-employment benefit in the form of Gratuity for all employees which is administered through Life Insurance Corporation (LIC).

Liability for above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

2) Other Long-term Employee Benefit:

Liability for Compensated Absences (unutilized leave benefit) is provided on the basis of valuation, as at the Balance Sheet date carried out by an independent actuary. The actuarial valuation method used for measuring the liability is the Projected Unit Credit method in respect of past service.

3) Termination benefits are recognized an expense as and when incurred.

4) The actuarial gains and losses arising during the year are recognized in the statement of Profit and Loss of the year without resorting to any amortization.

vi. Sales

Sales are net of sales tax, sales returns, claims and discount etc.

vii. Inventories

Goods in trade have been valued "At Cost" or market value whichever is less.

viii. Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current tax provision has been determined on the basis of reliefs, deductions available under the Income Tax Act. Deferred Tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that are applicable on Balance Sheet date.

ix. Impairment of Assets

Impairment of assets are assessed at each balance sheet date and loss is recognised wherever the receivable amount of an assets less than its carrying amount.

x. Foreign Currency Transaction

a) Foreign currency transactions are recorded at exchange rate prevailing on the date of transaction.

b) Foreign currency receivable/payables at the year end are translated at exchange rates applicable as on that date.

c) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the statement of Profit & Loss.

xi. Provisions. Contingent Liabilities and Assets

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

1.2 Related parties disclosures

1. (a) Key Management Personnel:

Shri Sandeep Kasera

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

1.3 Contingent Liabilities not provided for:

i) Bank Guarantees given Rs. 56,81,524.00 (P.Y. Rs.47,46,154.00).

ii) Claim of third party towards rent not acknowledged by Company Rs. - NIL - (P.Y. Rs. 30,07,038.00).

iii) Sales Tax demand disputed in appeal Rs. 60,73,733/- (P.Y. 59,47,031).

iv) Bills discounted with State Bank of India Rs.- NIL- (P.Y. Rs. 23,02,788/-).

1.4 Payment to Micro, Small & Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

1.5 Segment Reporting: The Company operates in two segments namely (i) Trading and (ii) Wind Power Generation. Since revenue, result and assets of wind power generation are below the prescribed criteria and hence the same is not treated as reportable segment.

1.6 Value of Imports calculated on CIF basis: Rs. 7,46,39,576/- (P.Y. Rs. 32,20,702/-).

1.7 Expenditure in foreign currency:

* Travelling expenses Rs. 4,48,429/- (P.Y. 3,48,767/-).

* Payment of Imported Material Rs. 7,46,39,576/- (P.Y. 32,20,702/-).

* Sales promotion - NIL - (P.Y. Rs. 2,74,963/-).

* Service maintenance & Installation charges Rs. 3,09,930/- (P.Y. - NIL-).

1.8 The Company had exposure to National Spot Exchange Limited (NSEL) of Rs. 8,93,23,647/- through M/S. Motilal Oswal Commodities Broker Pvt. Ltd. NSEL has not been able to discharge its payment obligation from August 2013 onwards. Economic Office Wing (EOW) of Mumbai Police is investigating the matter and NSEL Investors Forum of which Company is a member has also filed writ in Bombay High Court. Based on the information available with the Company it is decided to write off Rs. 2,23,30,912/- during the year being 25% of the original outstanding amount during quarter ended 30th September, 2013, which has been shown under exceptional item. The Company is hopeful for recovery of balance amount in view of the steps taken by Eow of Mumbai Police, legal case in the High Court and steps taken by Government.

1.9 Disclosures in accordance with Revised AS - 15 on Emplyee Benefits

(i) The Overall expected rate of return on assets is based on the expectation of the Average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

(ii) Following are the Principal Actuarial Assumptions used as at the balance sheet date.

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

1.10 Previous year figures are regrouped, rearranged and reclassified, wherever necessary to confirm with current year presentation.

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Mar 31, 2013

I. Basis of Accounting

The Financial Statement are prepared under historical cost convention and generally on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

ii. Fixed Assets

a) Fixed Assets are stated at their original cost which includes expenditure incurred in the acquisition.

b) Depreciation on fixed assets has been provided on written down value method and depreciation on windmill has been provided on state line method as per the rates prescribed in the Schedule XIV to the Companies Act, 1956. Depreciation on addition / deductions during the year is provided on pro-rata basis.

iii. Intangible Assets :

a) Expenditure incurred for acquiring Software is stated at acquisition cost less accumulated amortisation. They are amortised over their useful life not exceeding five years.

b) Goodwill has not been amortised.

iv. Investments

Long term investments are stated at cost. Provision for temporary fall in market value, if any, is not provided for.

v. Employee Retirement Benefits

1) Post: Employment Employee Benefits

a) Defined Contribution Plans

The Company has Defined Contribution Plan for Post employment benefits in the form of Provident Fund for all employees which is administered by Regional Provident Fund Commissioner Provident Fund is classified as defined contribution plan as the Company has no further obligation beyond making the contributions. The Company''s contribution to Defined Contribution Plan is changed to the statement of Profit and Loss as and when incurred.

b) Defined Benefit Plans

Funded Plan: The Company has defined benefit plan for Post- employment benefit in the form of Gratuity for all employees which is administered through Life Insurance Corporation (LIC).

Liability for above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The acturial method used for measuring the liability is the Projected Unit Credit method.

2) Other Long-term Employee Benefit:

Liability for Compensated Absences (unutilized leave benefit) is provided on the basis of valuation, as at the Balance Sheet date carried out by an independent actuary. The acturial valuation method used for measuring the liability is the Projected Unit Credit method in respect of past service.

3) Termination benefits are recognized an expense as and when incurred.

4) The acturial gains and losses arising during the year are recognized in the statement of Profit and Loss of the year without resorting to any amortization.

vi. Sales

Sales are net of sales tax, sales returns, claims and discount etc.

vii. Inventories

Goods in trade have been valued "At Cost" or market value whichever is less.

viii. Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current tax provision has been determined on the basis of reliefs, deductions available under the Income Tax Act. Deferred Tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that are applicable on Balance Sheet date.

ix. Impairment of Assets

Impairment of assets are assessed at each balance sheet date and loss is recognised wherever the receivable amount of an assets less than its carrying amount.

x. Foreign Currency Transaction

a) Foreign currency transactions are recorded at exchange rate prevailing on the date of transaction.

b) Foreign currency receivable/payables at the year end an translated at exchange rates applicable as on that date.

c) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the statement of Profit & Loss.

xi. Provisions, Contingent Liabilities and Assets

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2012

I. Basis of Accounting

The Financial Statement are prepared under historical cost convention and generally on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

ii. Fixed Assets

a) Fixed Assets are stated at their original cost which includes expenditure incurred in the acquisition.

b) Depreciation on fixed assets has been provided on written down value method and depreciation on windmill has been provided on state line method as per the rates prescribed in the Schedule XIV to the Companies Act, 1956. Depreciation on addition / deductions during the year is provided on pro-rata basis.

iii. Intangible Assets :

a) Expenditure incurred for acquiring Software is stated at acquisition cost less accumulated amortisation. They are amortised over their useful life not exceeding five years.

b) Goodwill has not been amortised.

iv. Investments

Long term investments are stated at cost. Provision for temporary fall in market value, if any, is not provided for.

v. Employee Retirement Benefits

1) Post: Employment Employee Benefits

a) Defined Contribution Plans

The Company has Defined Contribution Plan for Post employment benefits in the form of Provident Fund for all employees which is administered by Regional Provident Fund Commissioner Provident Fund is classified as defined contribution plan as the Company has no further obligation beyond making the contributions. The Company's contribution to Defined Contribution Plan is changed to the statement of Profit and Loss as and when incurred.

b) Defined Benefit Plans

Funded Plan: The Company has defined benefit plan for Post-

employment benefit in the form of Gratuity for all employees which is administered through Life Insurance Corporation (LIC).

Liability for above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The acturial method used for measuring the liability is the Projected Unit Credit method.

2)Other Long-term Employee Benefit:

Liability for Compensated Absences (unutilized leave benefit) is provided on the basis of valuation, as at the Balance Sheet date carried out by an independent actuary. The acturial valuation method used for measuring the liability is the Projected Unit Credit method in respect of past service.

3) Termination benefits are recognized an expense as and when incurred.

4) The acturial gains and losses arising during the year are recognized in the statement of Profit and Loss of the year without resorting to any amortization.

vi. Sales

Sales are net of sales tax, sales returns, claims and discount etc.

vii. Inventories

Goods in trade have been valued "At Cost" or market value whichever is less.

viii. Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current tax provision has been determined on the basis of reliefs, deductions available under the Income Tax Act. Deferred Tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that are applicable on Balance Sheet date.

ix. Impairment of Assets

Impairment of assets are assessed at each balance sheet date and loss is recognised wherever the receivable amount of an assets less than its carrying amount.

x. Foreign Currency Transaction

a) Foreign currency transactions are recorded at exchange rate prevailing on the date of transaction.

b) Foreign currency receivable/payables at the year end an translated at exchange rates applicable as on that date.

c) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the statement of Profit & Loss.

xi. Provisions, Contingent Liabilities and Assets

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2011

I. Basis of Accounting

The Financial Statement are prepared under historical cost convention and generally on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

ii. Fixed Assets

a) Fixed Assets are stated at their original cost which includes expenditure incurred in the acquisition.

b) Depreciation on fixed assets has been provided on written down value method and depreciation on windmill has been provided on state line method as per the rates prescribed in the Schedule XIV to the Companies Act, 1956. Depreciation on addition / deductions during the year is provided on pro-rata basis.

iii. Intangible Assets :

a) Expenditure incurred for acquiring Software is stated at acquisition cost less accumulated amortization. They are amortized over their useful life not exceeding five years.

b) Goodwill will be amortized over a period of 5 years.

iv. Investments

Long term investments are stated at cost. Provision for temporary fall in market value, if any, is not provided for.

v. Employee Retirement Benefits

1) Post: Employment Employee Benefits

a) Defined Contribution Plans

The Company has Defined Contribution Plan for Post employment benefits in the form of Provident Fund for all employees which is administered by Regional Provident Fund Commissioner Provident Fund is classified as defined contribution plan as the Company has no further obligation beyond making the contributions. The Company's contribution to Defined Contribution Plan is changed to the Profit and Loss Account as and when incurred.

b) Defined Benefit Plans Funded Plan: The Company has defined benefit plan for Post-employment benefit in the form of Gratuity for all employees which is administered through Life Insurance Corporation (LIC).

Liability for above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

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Mar 31, 2010

I. Basis of Accounting

The Financial Statement are prepared under historical cost convention and generally on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

ii. Fixed Assets

a) Fixed Assets are stated at their original cost which includes expenditure incurred in the acquisition.

b) Depreciation on fixed assets has been provided on written down value method and depreciation on windmill has been provided on state line method as per the rates prescribed in the Schedule XIV to the Companies Act, 1956. Depreciation on addition / deductions during the year is provided on pro-rata basis.

iii. Intangible Assets:

a) Expenditure incurred for acquiring Software is stated at acquisition cost less accumulated amortisation. They are amortised over their useful life not exceeding five years.

b) Goodwill has not been amortised.

iv. Investments

Long term investments are stated at cost. Provision for temporary fall in market value, if any, is not provided for.

v. Employee Retirement Benefits

1) Post: Employment Employee Benefits

a) Defined Contribution Plans

The Company has Defined Contribution Plan for Post employment benefits in the form of Provident Fund for all employees which is administered by Regional Provident Fund Commissioner Provident Fund is classified as defined contribution plan as the Company has no further obligation beyond making the contributions. The Companys contribution to Defined Contribution Plan is changed to the Profit and Loss Account as and when incurred.

b) Defined Benefit Plans Funded Plan: The Company has defined benefit plan for Post-employment benefit in the form of Gratuity for all employees which is administered through Life Insurance Corporation (LIC).

Liability for above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The acturial method used for measuring the liability is the Projected Unit Credit method.

2) Other Long-term Employee Benefit:

Liability for Compensated Absences (unutilized leave benefit) is provided on the basis of valuation, as at the Balance Sheet date carried out by an independent actuary. The acturial valuation method used for measuring the liability is the Projected Unit Credit method in respect of past service.

3) Termination benefits are recognized an expense as and when incurred.

4) The acturial gains and losses arising during the year are recognized in the Profit and Loss Account of the year without resorting to any amortization.

vi. Sales

Sales are net of sales tax, sales returns, claims and discount etc.

vll. Inventories

Goods in trade have been valued "At Cost" or market value whichever is less.

viii. Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current tax provision has been determined on the basis of reliefs, deductions available under the Income Tax Act. Deferred Tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that are applicable on Balance Sheet date.

ix. Impairment of Assets

Impairment of assets are assessed at each balance sheet date and loss is recognised wherever the receivable amount of an assets less than its carrying amount.

x. Foreign Currency Transaction

a) Foreign currency transactions are recorded at exchange rate prevailing on the date of transaction.

b) Foreign currency receivable/payables at the year end an translated at exchange rates applicable as on that date.

c) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit & Loss Account.

xi. Provisions, Contingent Liabilities and Assets

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts. Contingent assets are neither recognised nor disclosed in the financial statements.