| A: Corporate Information
Eureka Industries Limited (the company) is a public limited (Listed)
company domiciled in India and incorporated under the provisions of the
companies Act, 1956.
B: Accounting Convention:
The Financial Statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") [which
continue to be applicable in respect of Section 133 of the Companies
Act,2013 ("the 2013 Act") in terms of General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs] and the
relevant provisions of the 1956 Act/ 2013 Act, as applicable. Except
where otherwise stated, the accounting policies are consistently
applied.
C : Presentation and disclosure of financial statements
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
D : Use of estimates
The preparation of financial statements in conformity with Accounting
Standards requires the management to make judgment, estimates and
assumptions that affect the reported amounts, at the end of the
reporting period. Although these estimates are based on the
management's best knowledge of current events in the outcomes requiring
a material adjustment to the carrying amounts of assets or liabilities
in future periods. Differences between the actual result and estimates
are recognized in the period in which the results are known /
materialized.
E : Borrowing Cost
a) Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of such assets. All other
borrowing costs are charged to revenue.
b) A qualifying asset is an asset that necessarily requires substantial
period of time to get ready for its intended use or sale.
F : Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date to
determine whether there is any indication of Impairment of assets. If
any indication exists, the recoverable amount of such assets is
estimated. An impairment loss is recognized whenever the carrying
amount of an asset or its cash generating unit exceeds its recoverable
amount.
G : Investments
a) Long Term Investments are stated at cost.
b) Current Investments are carried at lower of cost and fair value as
on the Balance Sheet date.
c) Provision for diminution in value of long term investments is made,
if the diminution is other than temporary.
H : Revenue recognition
a) The Company generally follows the mercantile system of accounting
and recognises income and expenditure on an accrual basis except those
with significant uncertainties.
b) Sale of goods is recognized when the risk and rewards of ownership
are passed on to the customers, which is generally on dispatch of
goods.
c) Dividend Income is recognized when the right to receive the dividend
is unconditional at the Balance Sheet date.
d) Claims made by the Company and those made on the Company are
recognised in the Statement of Profit and Loss as and when the claims
are accepted.
I : Retirement benefits
Contribution to provident fund and provision for leave encashment is
charged to profit & loss Statement. Provision for gratuity liability is
made based on actuarial valuation as at the Balance Sheet date and is
charged to profit & loss statement.
J : Taxes on Income
a) Tax on income for the current period is determined on the basis of
estimated taxable income computed in accordance with the provisions of
the Income Tax Act, 1961.
b) Deferred Tax is recognized on timing difference between the
accounting income and the estimated taxable income for the period and
quantified using the tax rates and laws enacted or substantively
enacted as on the balance sheet date.
c) Deferred tax assets which arise mainly on account of unabsorbed
losses or unabsorbed depreciation are recognized and carried forward
only to the extent that there is virtual certainty supported by
convincing evidence that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Looking to the present scenario of the Company there is no certainty to
recover DTA in near future, hence DTA has not been recognized.
K : Contingent Liabilities & Contingent Assets
A provision is recognized when the company has present obligation as a
result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimate are reviewed at each reporting date and
adjusted to reflect the current best estimates. Contingent liabilities
are not provided for and are disclosed by way of notes. Contingent
Assets are neither recognized nor disclosed the statements.
|