1. Significant Accounting Policies:
(A) Basis of Preparation of Financial Statements:
The financial statements have been prepared under the historical cost
convention in accordance with generally accepted accounting principles
in India, the applicable accounting standards and as per provisions of
the Companies Act, 2013 except depreciation under companies Act 2013
has not been working during the period of fifteen months of period .
The company follows the mercantile system of accounting and recognizes
Income and Expenditure on accrual basis. Accounting Policies not
referred to otherwise are consistent with the generally accepted
Company has prepared the accounts for the period of fifteen months
starting from the 1st January 2014 to 31st March 2015.
Use of estimates:-
The preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent liabilities .on the date
of the financial statements and reported amounts of income and expenses
for the period of fifteen months,
(B) Fixed Assets:
Fixed Assets are stated at cost less Accumulated Depreciation. The Cost
of assets comprises purchase price and any attributable cost of
bringing the assets to its working condition for its intended use.
(C) Depreciation :
Depreciation on Fixed Assets has been calculated on straight line
method at the rate prescribed in schedule XIV to the Companies Act,
1956. Depreciation on addition/deletion during the year has been
provided on prorate basis. The company has not adopted the rate and
method prescribed in the Schedule II of the Companies Act 2013. i Hence
to that extend the profit-loss as the case may be effected on the
financial statements of the company.
(D) Investments :
Non-Current investment stated at cost. No provision for diminution in
value, if any , has been made as these are long term investments and in
the opinion of the management any decline is temporary. Current
investments are stated at lower and fair value,
1. Raw-materials .stores and spares , others and finished goods are
valued at lower of cost and net realizable value.
2. In determining cost of raw materials „ stores and spares valued at
cost. All cost of purchases, duties and taxes other than those
subsuquently recoverable from tax authorities.
3. Cost of finished products include the cost of raw materials, packing
materials an appropriate share of fixed and variable production
overheads and excise duly as applicable on the finished goods.
(F) Retirement Benefits ;
Contribution to Provident Fund, Liability for Leave encashment and
Gratuity are accounted for on accrual basis. There is no policy for the
retirement benefit by the company,
(G) Excise Duty :
The liability far Centra! Excise duly on account of stocks lying in
factory has not been provided in the books of accounts as the same is
being accounted for on payment basis and not carried into stock as per
practice followed by the company. However, the liability if accounted
would have no effect on the Profit for the year.
(H) Revenue Recognition:
a) Sales is net of Salestax/ VAT, Excise duty, Sales return, Rate
difference, damage goods Compensation etc.
b) Other income is accounted on due basis as per the terms.
(I) Foreign Currency Transactions :
Transaction in foreign currency are recorded at the rates of exchange in
force at the time transactions are affected Any exchange difference
arssing on settlement /transaction are dealt with in the statement of
profit and loss except those relating to acquisition of fixed assets,
which are adjusted to the cost of the assets if any,
(J) Borrowing Cost
Borrowing Cost that are directly attributable to the
acquision/construction of qualifying assets,
Wherever applicable, are capitalized as part of the cost of that asset.
Other borrowing costs are recognized as an expense in the period in
which they are incurred.
(K) impairment Loss
As required by the Accounting Standards (AS 28) ''Impairment of Assets
issued by 3CA1. as informed to us; the company has carried out the
assessment of impairment of assets. There has been no Impairment loss
during the year.
(L) Related Party disclosure as per accounting standard 18
(a) Where control exists Nakoda Syntex Pvt, Ltd.
* B, G. Jain investment Pvt. Ltd, - Nakoda Realities Pvt. Ltd,
* G. P. Shah Investment Pvt. Ltd. - Nakoda Energy Pvt. Ltd.
* P, B. Jain Investment Pvt, Ltd. - Nakoda Financial Services Pvt.
* Varju Investment Pvt. Ltd. - Nakoda Infrastructure & Leasing
* Nakoda Shipyard Pvt. Ltd, - Nakoda Hoidings Mauritius Ltd.
* Indo Korean Petrochem Ltd.-South Korea - Gerback Holdings Pte. Ltd
* Nakoda Green Power Ltd. - Koncept infotenrnent Pvt.
(b) Key Management Personnel :
Shri B. G. Jain (Chairman & Managing Director)
Shri D. B. Jain (Joint Managing Director & C,F,0.)