Mar 31, 2014
A. Basis of preparation of Financial Statements
The accounts have been prepared on accrual basis and historical cost convention in accordance with the Generally Accepted Accounting Principles in India and the provisions of the Companies Act 1956. The accompanying financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies Accounting Standard Rules 2006 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those in the previous year.
b. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the required amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.
c. Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.
d. Fixed Assets and Depreciation
i. Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price, freight, duties, taxes and any attributable cost of bringing the asset to its working condition for its intended use.
ii. Depreciation is provided on Written Down Value method, based on useful life of the assets as estimated by the Management which coincides with rates prescribed under Schedule XIV to the Companies Act, 1956.
e. Long Term investments are carried at cost less provision for permanent diminution, if any, in value of such investments.
f. Borrowing costs:
Borrowing costs that are directly attributable to the acquisition or the construction of a qualifying asset is capitalized for the period until the asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time i.e more than 12 months to get ready for intended use. All other borrowing costs are charged to revenues
i. Materials are valued at the lower of cost and estimated net realizable value.
Net realizable value is the estimated selling price in the ordinary course of business, reduced by the estimated costs of completion and costs to effect the sale.
h. Income Tax
i. Current tax
Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.
ii. Deferred tax
Deferred income taxes is recognized, subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
' Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Where the Company has carry forward of unabsorbed depreciation or tax losses deferred tax assets are recognized only if it is virtually certain backed by convincing evidence that such deferred tax assets can be realized against future taxable profits.
i. Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
A Provision is recognized when the Company has a present obligation as a result of past event i.e 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 not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Mar 31, 2012
During the yea 3nded 31 March 2012, the revised Schedule VI notified under the Companies Ac 956, has become applicable to the company, for preparation and presentation of s financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles allowed for preparation of financial stater 3nts. However, it has significant impact on presentation and disclosures made in the financial statements The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.
* Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amour of revenues, expenses, assets and Iiabilities and the disclosure of contingent liablities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty abo these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
* Fixed Assets
Fixed Assets are stated at cost. Depreciation of fixed assets is calculated at the rates prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation on fixed assets in provided on straight-line method at the rates prescribe in Schedule XIV to the Company Act, 1956.
Investments, which are readily realizable and intended to be held for not more than one year from he date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments On initial recognition, all investments are-measured at cost.
Current investments are earned in the financial statements at lower of cost and fair value determii d on an individual investment basis. Long-term investments are carried at cost On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
Raw materials components, stores and spares are valued at lower of cost and net realizable value Work in progress and finished goods are valued at lower of cost and net realizable value.
* Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.
* Income tax
* Tax expense comprises current and deferred tax. current income-tax is measured at the amount expected to be paid to the tax author ties in accordance with the Income-tax Ac 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date,
* Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years.
Mar 31, 2011
1, Accounting convention
The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1955.
2 Revenue Recognition
All Revenue income are recognised on accrual basis of accounting.
All expenses, nave been accounted lor on accrual basis
4. Fixed Assets
Fixed Asset have been stated in the books at histories cost inclusive of all incidental expenses net of accumulated depreciation Depreciation has been provided at the rates mentioned in Schedule XlV of the Companies Act, 1955 on written down value method.
Investments are treated as long term investments and are stated at cost. Any decline in the value of Investments, other than a temporary decline, is recognised and charged to Profit & Loss Account.
6. Stock in trade
Stock in trade is valued at cost or net realizable value which is lower - if any.
7. Impairement if Assets:
All assets other than inventories, investments and deferred tax assets are reviewed for impairment wherever events or changes in circumstances indicate that the carrying amount may not be coveraable.
8. Contingent Liabilities;
Contingent liabilities are not provided for. and if any are disclosed separately by way of notes.