J F Laboratories Ltd. कंपली की लेखा नीति

Mar 31, 2010

Basis of Accounting

The financial statements were prepared under the historical cost convention, in accordance with generally accepted accounting principles and provisions of the Companies Act, 1956 and hitherto considered as a going concern for the Project Undertaking (for manufacture of Amino Acids as a 100% EOU) being implemented, though not yet set up, by the Company.

Based on the copies obtained during the year of the orders of the Mumbai Debts Recovery Tribunal I, the company learnt that in the Recovery Proceedings No. 343 of 2003 (OA 17 Of 2001) of the erstwhile Unit Trust of India, an auction for the Companys projects assets was held on 19th February, 2009 and the sale thereat has been confirmed and made absolute as on 30th March, 2009 for the entire asset base of the Project Undertaking of the Company in favour of one, M/s. Jsons Foundry Private Limited, G13, MIDC Kupwad Block, Sangli Maharashtra 416 436 for a sum of Rs. 420 lakhs, albeit without any notice or intimation to the Company though it had sought specific directions of the Honble Tribunal at such proceedings having regards to the specific nature/status of its Project Undertaking. The proceeds thereof have also been appropriated by the Honble Recovery Tribunal to the Companys secured creditors, viz. SBI, IDBI, Kotak Mahindra Bank (ICICI) and IFCI against their dues and charges as aforesaid. Accordingly, the costs and outlay on and relating to the entire Project Undertaking of the Company net of the auction sale proceeds is considered as a loss on such forced sale of its Project Undertaking. Consequently, for the year ended on March 31, 2010, the Company recognized such exceptional items with respect to Schedule 6, Pre-operative Expenditure as shown separately in the Balance Sheet hitherto. The aggregate expenditure incurred for the year ending March 31, 2010 amounted to Rs.11.64 Lakhs, also written off towards the Loss of Project Undertaking.

In light of the above the presumption of going concern is irretrievably jeopardized. Inasmuch as the Companys substratum is irretrievably affected, for matters in respect of its corporate status need to be addressed vis a vis the members and other project participants, the accounts are prepared on the balance sheet date on historical cost convention without any presumption of a going concern and adhere to the accounting requirements of the ICAI relating to the Impairment of Assets and recognizes any exceptional losses for the said event.

The Company generally follows the mercantile system of accounting and recognises significant items of income and expenditure on accrual basis except for insurance claims, sales tax set offs and incentives.

Fixed Assets, Depreciation, Amortisation

a. Fixed Assets are stated at their cost of acquisition [also refer Note 1 and 5(e) ]

b. Leasehold Land is amortised over the balance period of the Lease.

c. Depreciation of Fixed Assets is provided on Straight Line Basis at the rates and in the manner prescribed by Schedule XIV of the Companies Act, 1956.

Foreign Currency Transactions

Foreign Currency Transactions are recorded at the exchange rates existing at the time of transaction. Foreign Currency Loans in respect of fixed assets were restated at the closing rates prevailing as at the balance sheet dates and exchange variations arising thereon are adjusted to the cost of the related assets and/or expenses. However, as the entire principal foreign currency loan have fallen due, though not paid as scheduled the provision or adjustment has been made for all dues as per recovery proceedings stated in Note 5(d) including any loss/gain on exchange fluctuation and the corresponding cost of assets/liabilities/pre-operative expenses pending capitalization up to the date of such proceedings. Accordingly, no exchange fluctuations have arisen for the year ending March 31, 2010.