Rajkamal Synthetics

(i) Basis of Preparation of financial Statements :
 
 The financial statements have been prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual basis except for certain financial
 instruments which are measured at fair values. GAAP comprises mandatory
 Accounting standards notified under 133 of the Companies Act, 2013 read
 together with Rules 7 of the Companies (Accounts) Rules, 2014, the
 provisions of the Companies Act, 2013 and guide lines issued by the
 securities and Exchange Board of India ( SEBI ). Accounting policies
 have been consistently applied except where a newly issued accounting
 standard is initially adopted or a revision to an existing accounting
 standard requires a change in the accounting policy hitherto in use or
 different accounting policy is required by status.
 
 (ii) Use of Estimates :
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles requires estimates and assumption to be
 made. That affect the reported amounts of assets and liabilities on the
 date of the financial statements and the reported amounts of revenues
 and expenses during the reporting period. Difference between the actual
 result and estimates are recognized in the period in which the results
 are known/materialized.
 
 (iii) Investments :
 
 Long term Investment are stated at cost. Provision for permanent
 diminution in value of Long term investment is made only if such
 decline is other than temporary in the opinion of management.
 Investments other than long term investments being current investments
 are valued at cost or fair value whichever is lower.
 
 (iv) Provision :
 
 Provision are recognized when an enterprise has a present obligation as
 a result of past event and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are deremined based on
 management estimate require to settle the obligation at the balance
 sheet date. These are reviewed at each balance sheet date and adjusted
 to reflect the current management estimates.
 
 (v) Treatment of Contingent Liabilities :
 
 Contingent Liabilities are disclosed by way of notes. Provision is made
 in the accounts for those liabilites which are likely to materialize
 after the year end till the finalization of accounts and having effect
 on the position stated in the balance sheet as at the year end.
 
 (vi) Taxation :
 
 Provision for taxation has been made in accordance with the rates of
 Income Tax Act, 1961 prevailing for the relevant assessment year.
 
 (vii) Deferred Taxation :
 
 Deferred tax assets and liabilites are recognized for the future tax
 consequences attributable to timing differences that result between the
 profits offered for income taxes and the profits as per the financial
 statements. Deferred tax assets and liabilities are measured using the
 tax rates and the tax laws that have been enacted or substantially
 enacted at the balance sheet date. Deferred tax Assets are recognized
 only to the extent there is reasonable certainty that the assets can be
 realized in the future. Deferred tax Assets are reviewed as at each
 Balance Sheet date.
 
 (viii) Revenue Recognition :
 
 Sales are recognized, net of returns discounts, on dispatch of goods to
 Customers.
 
 Interest income is recognized on time proportion basis.
 
 Dividends are recognized when actually received.
 
 (ix) Employee Retirement Benefits :
 
 Company''s contributions to provident fund and subscription to Employees
 group gratuity scheme of life Insurance Corporation of India is charged
 to profit and Loss Account and further, leave salary and bonus are
 charged to profit and loss account on cash basis.