22 July 2010
I will give u a copy of this. Schedule: S Significant Accounting Policies and Notes thereon (Forming an integral part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the period ended as on that date)
1. Significant Accounting Policies:
(A) Basis of Accounting The Company follows the Mercantile System of Accounting and recognizes Income & Expenditure on Accrual Basis except retirement benefits payable to the employees and interest on Fixed Deposits, which are account for on as and when incurred. Accounts are prepared on Historical Cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted principles.
(B) Inventories i) Inventories are valued as follows: Raw Materials At Cost under FIFO basis Finished Goods Lower of cost and net realizable value. Stock-in-Process Lower of estimated cost and net realizable value. Estimated cost includes direct materials, labour and a proportion of manufacturing overheads. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion to make the sale. ii) Finished goods and Stock-in-Process have been valued as per the principles and basis provided in the Accounting Standard-2 (Valuation of Inventories).
(C) Depreciation Depreciation on fixed assets is provided at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on Written Down Value basis. Depreciation on additions to or on Disposal of Assets is calculated on pro-rata basis. Assets costing individually upto Rs. 5,000/- are fully depreciated in the year of addition.
(D) Revenue Recognition i) Revenue from the sale of goods is recognized upon passes of title to the customer, which generally coincides with their delivery. ii) Dividend income taken into account after its actual receipt to the company. (E) Fixed Assets Fixed assets are stated at cost less depreciation thereon.
(F) Retirement Benefits i) Provident Fund contributions are charged to Profit and Loss Account on accrual basis. ii) Provision for gratuity has not been made and is accounted for on cash basis (G) Miscellaneous Expenses Preliminary expenses are written off over a period of four years. 2. Notes Forming part of the Accounts:
(A) Current Assets, Loans & Advances In the opinion of Board of Directors the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the at which they are stated in the balance sheet and provisions for all known liabilities have been made as at the year end.
(B) Earning per share As on 31.03.2010 As at 31.03.2009 Rupees Rupees Profit after tax as per Profit & Loss A/c 18688307.16 27780285.85 No. of Shares at the starting of the year 2786000.00 2786000.00 No. of Shares Allotted during the year 2786000.00 2786000.00 No. shares at the end of the Year. 2786000.00 2786000.00 Earning per share 6.71 9.97 · Due weight have been given Equity Shares issued during the year on different dates.
(C) Deferred Taxation In accordance with the requirements under the Accounting Standard 22 relating to Deferred Tax, the Net deferred tax Liabilities at the year end works out to be in as calculated below: As at 31.03.2010 W.D.V. of Fixed Assets as per Companies Act 55822566.66 W.D.V. of Fixed Assets as per Income Tax Act 48499403.40 Short / (Excess) Depreciation charged as per Companies Act 7323163.00 Deffered Tax Liabilities /(Asset) @ 33.99% on Depreciation 2489143.00 Total Deffered Tax Liabilities / (Assets) 2489143.00
(D) Remuneration None of the employee of the Company is getting remuneration more than Rs. 24,00,000/- p.a. or Rs. 2,00,000/- p.m. (E) Foreign Currency Transaction: During 2009-10 During 2008-09 Export on FOB basis: Rs. NIL Rs. NIL Commission Rs. NIL Rs. NIL Legal Advice Fees: Rs. NIL Rs. NIL (F) List of Related Parties: As per The Accounting Standrad-18 , Related Party Disclisures issued by the Institute of Chartered Accountants of India the disclosures as mentioned in the Accounting Standard are given as below:
a) Key Management Personnel(KMP) b) Associates Enterprise 1) Bhagwati Prasad Jalan 1) Ganpati Industrial (P) Ltd 2) Niraj Jalan 2) Jekay Industrial Corporation 3) Pankaj Jalan 3) Jekay International Track ( p) Ltd. 4) Piyush Jalan 4) Jekay Rolling Mill (P) Ltd. c)Transaction with related parties.
Rendering of Services 2,396,961.00 - 1,236,942.00 -
Purchase /Receipt of Goods 151,330,922.00 - 141,306,987.00 -
Remuneration - 1,200,000.00 - 720,000.00
Closing Balance -
Debit 493,090.00 - 678,217.00
Closing Balance -
Credit 166,332.00 - -
(G) Comparative figures had not been done as the previous year was the first year of operation. (H) Previous year’s figures have been regrouped, rearranged, and recasted wherever found necessary.
(I). Claims against Company not acknowledged as debt NIL (J). Auditor's Remuneration: 2009-10 2009-09 (a) As Auditor 30000.00 25000.00 (b) Company Law Matter 5000.00 5000.00 35000.00 5000.00 Add Service Tax 10.30% 3605.00 0.00 Total 38605.00 30000.00 (K). EXCISE - DUTY: Excise Duty Expenses are accounted for at the time of removal of goods from the factory .Total Excise duty expenses of reversal include the amount of Cenvat Amount and penalty , if any on order passed during the year.
(L) . ADDITIONAL INFORMATION PURSUANT TO PART IV OF SCHEDULE VI TO THE COMPANIES ACT,1956.
I. REGISTRATION DETAILS
REGISTRATION NO. 108003.00 STATE CODE NO. 21.00 BALANCE SHEET DATE 31.03.2010
II. CAPITAL RAISED DURING THE YEAR (RS. IN LACS) PUBLIC ISSUE NIL RIGHT ISSUE NIL BONUS ISSUE NIL PRIVATE PLACEMENT 0.00
III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS
TOTAL LIABILITIES 2342.47 TOTAL ASSETS 2342.47
SOURCES OF FUNDS :-
PAID UP CAPITAL 278.60 RESERVE & SURPLUS 822.07 SECURED LOANS 9.23 UNSECURED LOANS 0.00 DEFFERED TAX LIABILITIES 77 TOTAL 1186.53 APPLICATION OF FUNDS :- -
NET FIXED ASSETS 558.23 INVESTMENTS 2.50 NET CURRENT ASSETS 625.04 MISC. EXPENDITURE 0.76
TOTAL 1186.53
IV. PERFORMANCE OF COMPANY
TURNOVER & OTHER INCOME 4704.53 TOTAL EXPENDITURE 4385.03 PROFIT AND LOSS BEFORE TAX 319.51 PROFIT AND LOSS AFTER TAX 186.88 EARNING PER SHARE IN Rs. 6.71 DIVIDEND RATE NIL
V. GENERIC NAME OF PRINCIPAL PRODUCT OF THE COMPANY :- ( AS PER MONETARY TERMS) ITEM CODE NUMBER SWITCH ,FITTINGS, & ERC Etc. 7302109 & 7302909 W & SCRAPE 7204490 (M). Schedule 'A'to 'J' and 'S' form part of the Balance Sheet as at 31st March,2010 and Schedule 'K' to 'R' and 'S' forms part of the profit and loss account for the year ended on that date.
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