Mar 31, 2015
(a) Basis of accounting and presentation of financial statements:
The Company maintains its accounts on accrual basis following the
historical cost convention, except for the revaluation of certain fixed
assets, in accordance with generally accepted accounting principles
["GAAP"] in compliance with the provisions of the Companies Act, 2013
and the Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 read with Rule 7(1) of the Companies (Accounts)
Rules, 2014 issued by the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. Further, the guidance
notes/announcements issued by the Institute of Chartered Accountants of
India (ICAI) are also considered, wherever applicable except to the
extent where compliance with other statutory promulgations override the
same requiring a different treatment
The Balance Sheet and the Statement of Profit and Loss are prepared and
presented in the format prescribed in the Schedule III to the Companies
Act, 2013 ("the Act"). The Cash Flow Statement has been prepared and
presented as per the requirements of Accounting Standard (AS) 3 "Cash
Flow Statements". The disclosure requirements with respect to items in
the Balance Sheet and Statement of Profit and Loss, as prescribed in
the Schedule III to the Act, are presented by way of notes forming part
of accounts along with the other notes required to be disclosed under
the notified Accounting Standards and the Equity Listing Agreement.
(b) Use of Estimates :
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Examples of such estimates include the useful
lives of tangible and intangible fixed assets, allowance for doubtful
debts/ advances, future obligations in respect of retirement benefit
plans, etc. difference, if any, between the actual results and
estimates is recognised in the period in which the results are known.
(c) Fixed Assets
i) All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
ii) Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion of such
liabilities is capitalized.
iv) When an asset is scrapped or otherwise disposed off, the cost and
related deprecation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any is
reflected in the profit and Loss Account.
v) Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their net book value and
estimated net realizable value and are disclosed separately in the
financial statements.
vi) Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance sheet date.
(d) Depreciation
Depreciation on assets carried at historical costs is provided on
straight line method on the basis of useful life as specified in
Schedule II to the Companies Act, 2013.
(e) Impairment of Assets
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset's net sales price or present value as determined above.
(f) Inventories
Stock of Raw Materials, Stores & sparse & Packing Materials are valued
at cost determined on FIFO basis. Work in process is valued at lower of
cost and net realizable value. Finished goods valued at cost or market
price whichever is less.
(g) Investments
Long term Investments are stated at cost. Provision for diminution in
value is made, if permanent.
(h) Foreign Exchange Transactions
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of transaction.
Monetary item dominated in foreign currency at year end are restated at
year end rates. All income & expenses on account of exchange different
either on settlement or on translation is recognized in the profit &
loss account except in case of foreign exchange fluctuation in related
to acquisition of fixed assets which is adjusted to the carry cost of
such assets.
(i) Revenue Recognized
Revenue is recognized only when it can be reliable measured and it is
reasonable to expect ultimate collection. Sales are accounted at net
excluding taxes. Dividend is recognized when the right to receive is
established. Interest is recognized on time proportion basis.
(j) Employee Benefits:
a. Defined Contribution Plans  Company's Contribution paid / payable
during the year to Provident Fund are charged to the Profit & Loss
Account.
b. Defined Benefit Plan  Company's liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately to build up the final obligation. Past service costs
are recognized on straight line basis over the average residual period
until the amended benefits become vested. Actuarial gain and losses are
recognized immediately in the Statement of Profit and loss as income or
expense. Obligation is measured at the present value of estimated
future cash flows
(k) Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognized, subject to consideration of
prudence, on timing differences, being the difference between taxable
incomes and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. As there is no virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized no provision for deferred tax is made.
(l) Provisions
Provision are recognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
(m) Contingent Liabilities and Commitments
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or nonoccurrence of one or more uncertain future events
not wholly within the control of the company.
Disclosure in respect of Related Party Transactions during the Year :
a) Opening Balance of Unsecured Loan from Rupinder Singh Arora Rs.
2,61,70,589/- (Previous Years Rs. 91,451,080), Received during the
yearRs. 9,05,64,084/- (Previous Year Rs.5,21,46,685), Loan Paid Rs.
8,02,09,221/- (Previous Year Rs. 11,74,27,176), Closing Balance Rs.
3,65,25,452/-(Previous Year Rs. 2,61,70,589).
b) Trade Receivables from Fun Apparel Inc. of Rs.0 (Previous Year
Rs.30,84,127)
1. Interest paid
a) Interest Paid to Rupinder Singh Arora during the year Nil (Previous
Year Rs. 1,37,85,207)
2. Rent paid to Shri Dilawar Singh Arora amounting to Rs.4,80,000
(Previous Year Rs.4,80,000).
3. Director Sitting fees paid to Shri Rupinder Singh Arora, Shri
SurendraGupta,ShriNavdeepSingh Khera and Shri
Hrushikesh Deodhar amounting to Rs.34,000/- (Previous Year Rs.26,000/-)
4. Salary Paid
a) Salary Paid to Ms.Ritika Arora amounting to Rs6,00,000/- (Previous
Year Rs.6,00,000)
b) Salary Paid to Ms.Amrita Arora amounting to Rs3,00,000/- (Previous
Year Rs.300,000)
Mar 31, 2014
(a) Basis of preparation of Financial statements:
The Financial statements are prepared under the historical Cost
convention on the accrual basis of accounting and comply in all
material aspects with (a) Applicable accounting principles in India,
(b) the Accounting Standards notified by Central Govt. U/S. section
211(3C). (c) Relevant provisions of the Companies Act, 1956.
(b) Use of Estimates :
The preparation of financial statements requires the management to make
estimates and assumptions in the reported amount of assets and
liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period.Any revision to accounting estimates is recognized
prospectively in current and future periods.
(c) Fixed Assets
i) All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
ii) Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion of such
liabilities is capitalized.
iv) When an asset is scrapped or otherwise disposed off, the cost and
related deprecation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any is
reflected in the profit and Loss Account.
v) Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their net book value and
estimated net realizable value and are disclosed separately in the
financial statements.
vi) Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance sheet date.
(d) Depreciation
Depreciation on fixed assets has been charged on prorata monthly basis
using Straight Line Method at the rates and in manner prescribed in
Schedule XIV to the Companies Act, 1956.
(e) Impairment of Assets
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset''s net sales price or present value as determined above.
(f) Inventories
Stock of Raw Materials, Stores & sparse & Packing Materials are valued
at cost determined on FIFO basis. Work in process is valued at lower of
cost and net realizable value. Finished goods valued at cost or market
price whichever is less.
(g) Investments
Long term Investments are stated at cost. Provision for diminution in
value is made, if permanent.
(h) Foreign Exchange Transactions
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of transaction.
Monetary item dominated in foreign currency at year end are restated at
year end rates. All income & expenses on account of exchange different
either on settlement or on translation is recognized in the profit &
loss account except in case of foreign exchange fluctuation in related
to acquisition of fixed assets which is adjusted to the carry cost of
such assets.
(i) Revenue Recognized
Revenue is recognized only when it can be reliable measured and it is
reasonable to expect ultimate collection.
Sales are accounted at net excluding taxes
Dividend is recognized when the right to receive is established.
Interest is recognized on time proportion basis.
(j) Employee Benefits:
a. Defined Contribution Plans - Company''s Contribution paid / payable
during the year to Provident Fund are charged to the Profit & Loss
Account.
b. Defined Benefit Plan - Company''s liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately to build up the final obligation. Past service costs
are recognized on straight line basis over the average residual period
until the amended benefits become vested. Actuarial gain and losses are
recognized immediately in the Statement of Profit and loss as income or
expense. Obligation is measured at the present value of estimated
future cash flows
(k) Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognized, subject to consideration of
prudence, on timing differences, being the difference between taxable
incomes and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. As there is no virtual certainty that sufficient
future taxable income will be availableagainst which such deferred tax
assets can be realized no provision for deferred tax is made.
(l) Provisions
Provision are recognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
(m) Contingent Liabilities
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or nonoccurrence of one or more uncertain future events
not wholly within the control of the company.
Mar 31, 2013
(a) Basis of preparation of Financial statements:
The Financial statements are prepared under the historical Cost
convention on the accrual basis of accounting and comply - in all
material aspects with (a) Applicable accounting principles in India,
(b) the Accounting Standards notified by Central Govt. U/S. section
211(3C). (c) Relevant provisions of the Companies Act, 1956.
(b) Use of Estimates:
The preparation of financial statements requires the management to make
estimates and assumptions in the reported amount of assets and
liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period. Any revision to accounting estimates is recognized
prospectively in current and future periods.
(c) Fixed Assets
i) All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
ii) Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion of such
liabilities is capitalized.
iv) When an asset is scrapped or otherwise disposed off, the cost and
related deprecation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any is
reflected in the profit and Loss Account.
v) Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their net book value and
estimated net realizable value and are disclosed separately in the
financial statements.
vi) Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance sheet date.
(d) Depreciation
Depreciation on fixed assets has been charged on prorata monthly basis
using Straight Line Method at the rates and in manner prescribed in
Schedule XIV to the Companies Act, 1956.
(e) Impairment of Assets
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset''s net sales price or present value as determined above,
(f) Inventories
Stock of Raw Materials, Stores & sparse & Packing Materials are valued
at cost determined on FIFO basis. Work in process is valued at lower of
cost and net realizable value. Finished goods valued at cost or market
price whichever is less.
(g) Investments
Long term Investments are stated at cost. Provision for diminution in
value is made, if permanent.
(h) Foreign Exchange Transactions
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of transaction.
Monetary item dominated in foreign currency at year end are restated at
year end rates. All income & expenses on account of exchange different
either on settlement or on translation is recognized in the profit &
loss account except in case of foreign exchange fluctuation in related
to acquisition of fixed assets which is adjusted to the carry cost of
such assets.
(i) Revenue Recognized
Revenue is recognized only when it can be reliable measured and it is
reasonable to expect ultimate collection.
Sales are accounted at net excluding taxes
Dividend is recognized when the right to receive is established.
Interest is recognized on time proportion basis.
0) Employee Benefits:
a. Defined Contribution Plans - Company''s Contribution paid / payable
during the year to Provident Fund are charged to the Profit & Loss
Account.
b. Defined Benefit Plan - Company''s liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately to build up the final obligation. Past service costs
are recognized on straight line basis over the average residual period
until the amended benefits become vested. Actuarial gain and losses are
recognized immediately in the Statement of Profit and loss as income or
expense. Obligation is measured at the present value of estimated
future cash flows
(k) Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognized, subject to consideration of
prudence, on timing differences, being the difference between taxable
incomes and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. As there is no virtual certainty that sufficient
future taxable income will be availableagainst which such deferred tax
assets can be realized no provision for deferred tax is made.
(I) Provisions
Provision arerecognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
(m) Contingent Liabilities
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or nonoccurrence of one or more uncertain future events
not wholly within the control of the company.
Mar 31, 2012
(a) Basis of preparation of Financial statements:
The Financial statements are prepared under the historical Cost
convention on the accrual basis of accounting and comply in all
material aspects with (a) Applicable accounting principles in India,
(b) the Accounting Standards notified by Central Govt. U/S. section 211
(3C). (c) Relevant provisions of the Companies Act, 1956.
(b) Use of Estimates :
The preparation of financial statements requires the management to make
estimates and assumptions in the reported amount of assets and
liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period. Any revision to accounting estimates is recognized
prospectively in current and future periods.
(c) Fixed Assets
i) All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
ii) Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion of such
liabilities is capitalized.
iv) When an asset is scrapped or otherwise disposed off, the cost and
related deprecation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any is
reflected in the profit and Loss Account.
v) Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their net book value and
estimated net realizable value and are disclosed separately in the
financial statements.
vi) Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance sheet date.
(d) Depreciation
Depreciation on fixed assets has been charged on prorata monthly basis
using Straight Line Method at the rates and in manner prescribed in
Schedule XIV to the Companies Act, 1956.
(e) Impairment of Assets
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset's net sales price or present value as determined above.
(f) Inventories
Stock of Raw Materials, Stores & sparse & Packing Materials are valued
at cost determined on FIFO basis. Work in process is valued at lower of
cost and net realizable value. Finished goods valued at cost or market
price whichever is less.
(g) Investments
Long term Investments are stated at cost. Provision for diminution in
value is made, if permanent.
(h) Foreign Exchange Transactions
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of transaction.
Monetary item dominated in foreign currency at year end are restated at
year end rates. All income & expenses on account of exchange different
either on settlement or on translation is recognized in the profit &
loss account except in case of foreign exchange fluctuation in related
to acquisition of fixed assets which is adjusted to the carry cost of
such assets.
(i) Revenue Recognized
Revenue is recognized only when it can be reliable measured and it is
reasonable to expect ultimate collection.
Sales are accounted at net excluding taxes
Dividend is recognized when the right to receive is established.
Interest is recognized on time proportion basis.
(j) Employee Benefits:
a. Defined Contribution Plans - Company's Contribution paid / payable
during the year to Provident Fund are charged to the Profit & Loss
Account.
b. Defined Benefit Plan - Company's liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately to build up the final obligation. Past service costs
are recognized on straight line basis over the average residual period
until the amended benefits become vested. Actuarial gain and losses are
recognized immediately in the Statement of Profit and loss as income or
expense. Obligation is measured at the present value of estimated
future cash flows
(k) Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognized, subject to 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
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. As there is no virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized no provision for deferred tax is made.
(I) Provisions
Provision arerecognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
(m) Contingent Liabilities
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or nonoccurrence of one or more uncertain future events
not wholly within the control of the company.
Mar 31, 2011
(a) Basis of preparation of Financial statements:
The Financial statements are prepared under the historical Cost
convention on the accrual basis of accounting and comply in all
material aspects with (a) Applicable accounting principles in India,
(b) the Accounting Standards notified by Central Govt. U/S. section
211(3C). (c) Relevant provisions of the Companies Act, 1956.
(b) Use of Estimates :
The preparation of financial statements requires the management to make
estimates and assumptions in the reported amount of assets and
liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period. Any revision to accounting estimates is recognized
prospectively in current and future periods.
(c) Fixed Assets
i) All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
ii) Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion of such
liabilities is capitalized.
iv) When an asset is scrapped or otherwise disposed off, the cost and
related deprecation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any is
reflected in the profit and Loss Account.
v) Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their net book value and
estimated net realizable value and are disclosed separately in the
financial statements.
vi) Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance sheet date.
(d) Depreciation
Depreciation on fixed assets has been charged on prorata monthly basis
using Straight Line Method at the rates and in manner prescribed in
Schedule XIV to the Companies Act, 1956.
(e) Impairment of Assets
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset's net sales price or present value as determined above.
(f) Inventories
Stock of Raw Materials, Stores & sparse & Packing Materials are valued
at cost determined on FIFO basis. Work in process is valued at lower of
cost and net realizable value. Finished goods valued at cost or market
price whichever is less.
(g) Investments
Long term Investments are stated at cost. Provision for diminution in
value is made, if permanent.
(h) Foreign Exchange Transactions
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of transaction.
Monetary item dominated in foreign currency at year end are restated at
year end rates. All income & expenses on account of exchange different
either on settlement or on translation is recognized in the profit &
loss account except in case of foreign exchange fluctuation in related
to acquisition of fixed assets which is adjusted to the carry cost of
such assets.
(i) Revenue Recognized
Revenue is recognized only when it can be reliable measured and it is
reasonable to expect ultimate collection.
Sales are accounted at net excluding taxes
Dividend is recognized when the right to receive is established.
Interest is recognized on time proportion basis.
(j) Employee Benefits:
a. Defined Contribution Plans à Company's Contribution paid / payable
during the year to Provident Fund are charged to the Profit & Loss
Account.
b. Defined Benefit Plan à Company's liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately to build up the final obligation. Past service costs
are recognized on straight line basis over the average residual period
until the amended benefits become vested. Actuarial gain and losses are
recognized immediately in the Statement of Profit and loss as income or
expense. Obligation is measured at the present value of estimated
future cash flows
(k) Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognized, subject to 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
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
(l) Provisions
Provision are recognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
(m) Contingent Liabilities
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or nonoccurrence of one or more uncertain future events
not wholly within the control of the company.
Mar 31, 2010
(a) Basis of preparation of Financial statements
The Financial statements are prepared under the historical Cost
convention on the accrual basis of accounting and comply in all
material aspects with (a) applicable accounting principles in India,
(b) the Accounting Standards issued by the Institute ot Chartered
Accountants of India and (c) relevant provisions of the Companies Act,
1956.
(b) Use of Estimates
The preparation of financial statements requires the management to make
estimates and assumptions considered in the reported amount of assets
and liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in the
preparation of the financial statement are prudent and reasonable.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
(c) Fixed Assets
(i) All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of brigning the assets to its working condition for
the intended use.
(ii) Exchange difference arising on payment of liabilitie for purchase
of fixed assets from outside india and year end conversion of such
laibilities are charged/credidted to the profit and Loss Account.
(iii) When an asset is scrapped or otherwise disposed off, the cost and
related deprecation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any is
reflected in the profit and Loss Account.
(iv) Items of fixed assets that have been retired from active use and
are held for disposal are stated at the lower of their net book value
and estimated net realizable value and are disclosed separately in the
financial statements.
(v) Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance sheet date and advances paid to
acquire capital assets before the Balance Sheet date.
(d) Intangible Assets
(i) All intangible assets are initially measured at cost and amortized
so as to reflect the pattern in which the assets economic benefits are
consumed.
(ii) Software cpitalized as intagible asset is written off over a
maximum period of three years.
(e) Depreciation
Depreciation on fixed assets has been charged using Straight Line
Method at the rates and in manner prescribed in Schedule XIV to the
Companies Act, 1956.
(F) IMPAIRMENT OF aSSETS
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be asset may be
impaired. Impairment occurs where the carrying value exceeds the
present value of future cash flows expected to arise from the
continuing use of the asset and its eventual disposal. The impairment
loss to be expensed is determined as the excess of the carrying amount
over the higher of the assets net sales price or present value as
determined above.
(g) Inventories
Stock of Raw Materials, Stores & spares and packing Materials are
valued at Cost determined on FIFO basis. Work in process isvalued at
cost and finished goods are valued at lower of cost and net realisable
value. Finished stocks at the close of the year include provision for
excise duty.
(h) Investments
Long term Investments are stated at cost. Provision for diminution in
value is made, if permanent.
(i) Sales
Sales are accounted at net plus excise duty.
(j) Employee Benefits
(i) Defined Contribution Plans - Companys Contribution paid/payable
during the year to Provident Fund are charged to the Profit & Loss
Account.
(ii) Defined Benefit Plan - Companys liabilities towards gratuity
being post employment benefit and leave encashment being other long
term benefit are determined acturialiy using the projected unit credit
method which considers each period of service as giving rise to an
additional unit of benefit entitlement and measures each unit
separately to build up the final obligation. Past service costs are
recognized on straight line basis over the average residual period util
the amended benefits become vested. Acturial gain and losses are
recongized immediatley in the Statement of Profit and loss as income or
expense. Obligation is measured at the present value of estimated
future cash flows and the gross obligation is duly adjusted by the fair
value of plan assets on reporting date.
(k) Income Tax and Deffered Taxes
Curent tax is determined as the amount of tax payable in respect of
taxable income for the year. Deffered tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deffered tax is recognised, subject to 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. Dfferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virual certainty
supported by convincing evidence that sufficient future taxable income
will be available against which such deffered tax assets can be
realised
(l) Contlngnet Liabilities
(i) Provision are recognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
(ii) Contingent liabilities are disclosed in repsct of possible
obligations that arise from past events but their existence is
confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the company.