1) SIGNIFICANT ACCOUNTING POLICIES:
1.1. ACCOUNTING CONCEPTS:
The Company maintains its accounts on accrual basis following the historical cost
Convention in accordance with generally accepted accounting principles (“GAAP”), and in compliance with the Accounting Standards referred to in Section 133 and other requirements of the Companies Act, 2013.
The preparation of financial statements in conformity with Indian GAAP requires that the Management of the Company makes estimates and assumptions that affect the Reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful live of fixed assets etc. Actual results could differ from these estimates.
1.2. FIXED ASSETS:
Fixed Assets are stated at cost of acquisition less depreciation. The cost comprises of the purchase price and other attributable costs.
1.3. DEPRECIATION:
The Company follows the written down value method of providing depreciation at the rates prescribed in Schedule II PART C of the Companies Act, 2013 read with Section 123 of the said Act on pro-rata basis uniformly in respect of all Assets.
1.4. INVESTMENTS:
Long Term Investments are carried at cost less provision for diminution other than Temporary, if any, in value of such investments.
1.5. INVENTORIES:
Inventories are valued at cost or Net realizable value, whichever is lower.
1.6. EMPLOYEE BENEFITS:
Provident fund has been paid regularly in time by the company. Gratuity & Leave Encashment is accounted for in cash basis as and when paid.
1.7 Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes as a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.
1.8 AS-22 ACCOUNTING FOR TAXES ON INCOME:
Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provision of the Income Tax Act, 1961, and based on expected outcome of assessment / appeals.
1.9 The company in the previous year has made provision towards interest on banks' loans and working capital advances and credited the same in respective head. Consequent upon exit from CDR by the Banks, which has been disputed by the company, the amount due and payable to the banks has been reworked out. Accordingly, provision for current year towards interest on bank loans & advances has been made separately, giving effect of the excess provision made in previous year.
1.10 The company had entered into business conducting arrangements at certain locations during previous years. The revenue received from such arrangements has been accounted/provided for, as income from rent as well as job work charges. Reimbursements of electricity charges and staff expenses in respect of such mills given under business conducting arrangements have been effected in the respective heads.
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