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Accounting Policies of Artech Power & Trading Ltd. Company

Mar 31, 2015

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(iii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iv) FIXED ASSETS AND DEPRECIATION.

There is No any Fixed Assets during the year.


Mar 31, 2014

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION :

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION :

Fixed Assets are stated at the cost of acquisition less accumulated depreciation. Cost includes all identifiable expenditure incurred to bring the asset to its present condition and location.

Depreciation on fixed asset is provided at the rates and in the manner specified in schedule XIV to the Companies Act, 1956 on strait line method on value of the asset.


Mar 31, 2013

The significant Accounting Policies followed by the company are as stated below:

1. Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 (''the Act''). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in whieh they become known or materialises.

2. Revenue Recognition

Income from consultancy are accounted on accrual basis.

3 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

4 Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss aecount on a straight-line basis over the lease term.

5 Taxation

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

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 recognised 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 realised. If the company has unabsorbed depreciation or carry forward tax losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realised against future taxable profits.

At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised.

6 Retirement Benefits

a)''In respect of gratuity, the company''s contribution to the Group Insurance Scheme of Life Insurance

Corporation of India are charged against the revenue. b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.

7 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of ehanges in value.

8 Fixed assets, intangible assets and capital work-in-progress

Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses relating to the acquisition and installation of the concerned assets less accumulated depreciation. Fixed Assets also include pre - operative expenses and borrowing costs. Direct costs are capitalized until fixed assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intend use at the reporting date. Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

9 Impairment of Assets

The eompany assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical eost.

10 Depreciation

Depreciation has been provided on all fixed assets under Straighe Line Method at the rates and in the manner prescribed in schedule XIV of The Companies Act, 1956,

10 Provisions and contigeiteies

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate ean be made of the amount of the obligation.A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognised when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.

11 Earnings per share

Basic earnings per share are 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. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

12 Segment Reporting

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under ''Unallocable income/expenses''


Mar 31, 2012

1 Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 (''the Act''). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

2. Revenue Recognition

Income from consultancy are accounted on accrual basis.

3 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

4 Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss account on a straight-line basis over the lease term.

5 Taxation

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

6 Retirement Benefits

a) In respect of gratuity, the company''s contribution to the Group Insuarce Scheme of Life Insurance Corporation of India are charged against the revenue.

b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.


Mar 31, 2011

1- Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act. 1956 ('the Act1). The accounting policies have been consistently applied by the Company. The preparation requited adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

During the year, the company has sold' written off the entire fixed assets. The management is of the opinion that the accounting assumption of going concerns impaired. Hence necessary adjustments have been made to the values of the assets and liabilities of the company as at the year end.

2. Revenue Recognition

Income from consultancy are accounted on accrual basis.

3 Investment Subsidy Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

4 Leases

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss account on a straight-line basis over the lease term.

5 Taxation

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

6 Retirement Benefits

a] In respect of gratuity, the company's contribution to the Group Insurance Scheme of Life Insurance Corporation of India are charged against the revenue.

b] Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.


Mar 31, 2010

Background

Aitech Power Products Limited (hereinafter referred to "the Company") was incorporated in the State of Kerala. The Company was In the business of production of Switched Mode Power Supplies. Due to accute financial difficulties, the company had stopped its operations In the first week of April. 2000 and the factory was dosed The operations did not recommence thereafter. During the year, the company has settled all the statutory and bank liabilities by disposing of the assets of the company.

1 Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles; and the applicable Mandatory Accounting Standards and relevant requiments of The Companies Act. 1956 ("the Act"). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities Differences between the actual results and estimates are recognise to the year in which they become known or materialises.

During the year, the company has sold/written oft the entire fixed assets. The management is of the opinion that the accounting assumption of going concern is impaired. Hence necessary adjustments have been made to the values of the assets and liabilities of the company as at the year end.

2. Revenue Recognition

Sale of goods and assets is recognised when the risk and rewards of ownership are passed on to the supportment which as generally at the point of despatch to the customer.

3 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its Intended use.

4 Depreciation

Since no operation was carried out during the year and the company Is not expecting to commence the operations in the near future, depreciation has not been provided for

5 Investments

investments are long term and are valued at cost Provisions for diminution in value of long term investments is made, If the diminution is other than temporary.

6 Inventories

Inventories are valued at lower of cost, as net realisable value can not be quantified since the company is not operational.

7 Investment Subsidy Investment Subsidy received from Government of Kerala is treated as Capital Reserve .

8 Impairment

The carrying amounts of assets are reviewed at each balance sheet date If there is any Indication of .impairment based on internal/external factors. An Impairment loss is recognised wherever the carrying amount of art asset exceeds its recoverable amount.

The recoverable amount is the greater of the assets not selling pride value in use in assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depredation is provided on reversing carrying amount of the asset over its remaining useful life.

9 Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalised till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

10 Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss account on a straight-line basis over the lease term.

11 Taxation

Tax expense comprises of current and deferred 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 Deferred income taxes reflects the impact of current year timing differences between taxable Income and accounting income for the year and reversal of timing differences of earlier years.

12 Retirement Benefits

a) to respect of gratuity the company's contribution to the Group Insurance Scheme of Life Insurance Corporation of India are charged against the revenue.

b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account


Mar 31, 2009

1.Basis of preparation

The financial statements have been prepared on the historical cost convention. these statements have been prepared in accordance with the generally accepted accounting principles and the applicable mandatory accounting standards and relevant requirements of the companies act 1956 (the act) the accounting policies have been consistently applied by the company the preparation required adoption of estimates and assumption that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities . Differences between the actual results and estimates are recognised in the year in which they become know or materialses

2.Revenue Recognitation

a. sale of good is recognised when the risk and rewards of ownership are passed on to the customers which is generally at the point of despatch to the customer sales includes excise Duty and are net of discount

B. interest income is accounted on accurate basis 3.Fixed Assets Fixed assets are stated at cost less accumulated depreciation cost comprises the purchase price and any attributable of bringing the assets to its working condition for its intended use

4.Depreciation Since no operation was carried out during the year and the company is not expecting to commence the operation in the near future depreciation has not been provided for

5. Investment.

Investment are long term and are valued at cost Preventions for diminution In value of long term, Investment is made, if the diminution is other than temporary

6 Inventories Inventories are valued at lower of cast in the absence of net realisable value which can not be qualified since the company is not operational

7 Investment Subsidy Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Impairment

The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors an impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount the recoverable amount is the greater of the assets net setting price and value in use in assessing value in use the estimated future cash flows are discounted to their present value at the weighted average cost of capital;

9 Borrowing costs

Borrowing costs that are attributable to the acquisition of fixed are capitalised till the date of substantial completion of the activates necessary to prepare the relevant asset for its intended use.

10 Leases

Leases where the lessor effectively retains Substantially all the risks and benefits of ownership of the leased term, are classified as operating leased. Operating lease payments are recognised as an expense in the Profit in the Loss account on a straight-line basis over the lease term

11 Taxation

Tax expense comprises of currant and deferred tax. Current income-tax it measured at the amount expected to be paid to the tax authorises in accordance with the Indian Income-tax Act. Deferred-income- taxes reflects the impact at current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

12 Retirement Benefits

a) In respect of gratuity, the company's contribution to the Group insurance scheme of life insurance Corporation of India are charged against the revenue.

b) Contribution to Provident Fund and other recognised funds is charged to Profits Loss account


Mar 31, 2008

1.Basis of preparation

2. Revenue Recognition

3 Fixed Assets .

4 Depreciation

5 Investments

6 inventories

Inventories are valued at lower of cost. as the net realisable value car, not be quantified since the company is not operational

7 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 impairment

After impairment, depreciation is provided on reversing carrying amount of the asset over its remaining useful life.

9 Borrowing Costs

10 Leases

Leases where the lessor effectively retains substantially ell the risks and benefits of ownership of the leased term are classified as operating leases. Operating lease payments are recognised as an expense In the Profit & toss account on a straight line basis over the lease term

11 Taxation 1

Tax expense comprises of current and deferred tax current income tax is measured at the amount expedite to be paid to the tax authorities in accordance with the Indian income tax act deferred income taxes reflects the impact of current year timing differences between taxable income and accounting Income for the year and reversal of timing differences of earlier years.

12 Retirement Benefits -

a) In respect of gratuity, the company's contribution to the Group insurances Scheme of Life Insurance Corporation of India are charged against the revenue.

b} Contribution to Provident Fund and other recognised funds Is charged to Profit & Loss account


Mar 31, 2007

1. Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognized in the year in which they become known or materializes.

2. Revenue Recognition

a) Sale of goods is recognized when the risk and rewards of ownership are passed on to the customers, which is generally at the point of dispatch to the customer. Sales includes Excise Duty and are net of discount.

b) Interest income is accounted on accrual basis.

3 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 Depreciation

Since no operation was carried out during the year and the company is not expecting to commence the operations in the near future, depreciation has not been provided for.

5 Investments

Investments are long term and are valued at cost. Provisions for diminution in value of long term investments is made, if the diminution is other than temporary.

6 Inventories

Inventories are valued at lower of cost, in the absence of net realizable value which cannot be quantified since the company is not operational.

7 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

9 Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalized till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

10 Leases

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit & Loss account on a straight-line basis over the lease term.

11 Taxation

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

12 Retirement Benefits

a) In respect of gratuity, the company's contribution to the Group Insurance Scheme of Life Insurance Corporation of India are charged against the revenue.

b) Contribution to Provident Fund and other recognized funds is charged to Profit & Loss account.


Mar 31, 2006

1 Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognized in the year in which they become known or materializes.

2. Revenue Recognition

a) Sale of goods is recognized when the risk and rewards of ownership are passed on to the customers, which is generally at the point of dispatch to the customer. Sales includes Excise Duty and are net of discount.

b) Interest income is accounted on accrual basis.

3 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 Depreciation

Since no operation was carried out during the year and the company is not expecting to commence the operations in the near future, depreciation has not been provided for.

5 Investments

Investments are long term and are valued at cost. Provisions for diminution in value of long term investments is made, if the diminution is other than temporary.

6 Inventories

Inventories are valued at lower of cost, in the absence of net realizable value which cannot be quantified since the company is not operational.

7 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

9 Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalized till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

10 Leases

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit & Loss account on a straight-line basis over the lease term.

b) Three deposit holders of the company had filed petition with the Company Law Board for the repayment of deposits ' amounting to Rs.400,000/-. The Company Law Board has ordered the company to pay the amounts in instalments. The company could not pay the amount due to financial constraints. Register of Companies, Kerala has proceeded against the company in the Economic Offence Court for non compliance of Company Law Board (CLB) Order and penalty was imposed on the company and the directors which was paid.

c) Three deposit holders of the company had filed a petition with the Company Law Board for the refund of deposits amounting to Rs.50,000K The Company Law Board had ordered the company to pay the amounts in instalments. The company could not pay the amount due to financial constraints. Register of Companies, Kerala has proceeded against the company in the Economic Offence Court for non compliance of Company Law Board (CLB) Order which was dismissed by the court. The Registrar of Companies has filed an appeal in the High Court of Kerala, which is pending disposal. However, these deposits were settled in the subsequent years.

d) The amount of fixed deposits outstanding amounting to Rs.33,98,655.00 represents unclaimed deposits.

11 IDBI and SBT had recalled the loan given to the company and filed a suit in Debt Recovery Tribunal (DRT) for the recovery of the loan outstanding amounting to Rs.232.42 lakhs and Rs.168.93 lakhs respectively together with accrued interest and further interest. The cases were decreed against the company and the banks have obtained the certificate of recovery from DRT. KSIDC had also recalled the loan and initiated revenue recovery proceedings for the recovery of Rs.32.59 Lakhs together with accrued interest and further interest. The institutions had approved One Time Settlement Scheme to the company with new investors as promoters. However, the schemes could not materialize as the investors were unable to raise the required funds in time. These loans were subsequently settled under One Time Settlement Scheme offered by the financial institutions.

12 M/s.BT Solders, Bangalore - a creditor of the company, has filed a suit against the company for dishonour of coequal amounting to Rs.44044/-. The case was dismissed by Magistrate Court in Bangalore. The creditor has filed a condo nation petition with the High Court of Karnataka for delayed filing of appeal which was objected by the company. This liability was settled through court proceedings in the subsequent years.

13 In the absence of overall taxable profit, no provision for Current Tax/ Minimum Alternate Tax has been made in the accounts of the current financial period. Further, as at year end the major components of deferred tax are accumulated losses & unabsorbed depreciation, and the recovery of the same is not virtually certain. In view of the aforesaid, deferred tax asset has not been recognized,

14 Managerial Remuneration

a) No commission is payable to any director and hence the computation of profit u/s 198 / 349 of the Companies Act, 1956 is not required

b) The computation of Managerial Remuneration u/s 350 of The Companies Act, 1956 have not been enumerated as the managerial remuneration payable to Managing Director are within the limit prescribed under Schedule XIII of the said Act.

c) Approval in the General Meeting of the company of remuneration payable to managing director from the period from September 1999 to March 2000 amounting to Rs.135, 000 is pending.

15 Taxation

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

16 Retirement Benefits

a) In respect of gratuity, the company's contribution to the Group Insurance Scheme of Life Insurance Corporation of India are charged against the revenue.

b) Contribution to Provident Fund and other recognized funds is charged to Profit & Loss account.


Mar 31, 2005

1 Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 (the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

2. Revenue Recognition

a) Sale of goods is recognised when the risk and rewards of ownership are passed on to the customers, which is generally at the point of dispatch to the customer. Sales includes Excise Duty and are net of discount.

b) Interest income is accounted on accrual basis.

3 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 Depreciation

Since no operation was carried out during the year and the company is not expecting to commence the operations in the near future, depreciation has not been provided for.

5 Investments

Investments are long term and are valued at cost. Provisions for diminution in value of long term investments is made, if the diminution is other than temporary.

6 Inventories

Inventories are valued at lower of cost, in the absence of net realisable value which cannot be quantified since the company is not operational.

7 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on reversing carrying amount of the asset over its remaining useful life.

9 Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalised till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

10 Leases

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the teased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss account on a straight-line basis over the lease term.

11 Taxation

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the Impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

12 Retirement Benefits

a) In respect of gratuity, the company's contribution to the Group Insurance Scheme of Life Insurance Corporation of India are charged against the revenue.

b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.


Mar 31, 2004

1. Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable " Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

2. Revenue Recognition

a) Sale of goods is recognised when the risk and rewards of ownership are passed on to the customers, which is generally at the point of dispatch to the customer. Sales includes Excise Duty and are net of discount.

b) Interest income is accounted on accrual basis.

3 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 Depreciation

Since no operation was carried out during the year and the company is not expecting to commence the operations in the near future, depreciation has not been provided for.

5 Investments

Investments are long term and are valued at cost. Provisions for diminution in value of long term investments is made, if the diminution is other than temporary.

6 Inventories

Inventories are valued at lower of cost, in the absence of net realisable value which cannot be quantified since the company is not operational.

7 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on reversing carrying amount of the asset over its remaining useful life.

9 Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalised till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

10 Leases

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss account on a straight-line basis over the lease term.

11 Retirement Benefits

a) In respect of gratuity, the company's contribution to the Group Insurance Scheme of Life Insurance Corporation of India are charged against the revenue.

b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.

12 Taxes on Income

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.


Mar 31, 2003

1: Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

2. Revenue Recognition

a) Sale of goods is recognised when the risk and rewards of ownership are passed on to the customers, which is generally at the point of dispatch to the customer. Sales includes Excise Duty and are net of discount.

b) Interest income is accounted on accrual basis.

3 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 Depreciation

Since no operation was carried out during the year and the company is not expecting to commence the operations in the near future, depreciation has not been provided for.

5 Investments

Investments are long term and are valued at cost. Provisions for diminution in value of long term investments is made, if the diminution is other than temporary.

6 Inventories

Inventories are valued at lower of cost, in the absence of net realisable value which cannot be quantified since the company is not operational.

7 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on reversing carrying amount of the asset over its remaining useful life.

9 Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalised till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

10 Leases

Leases where die lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss account on a straight-line basis over the lease term.

11 Retirement Benefits

a) The company accounts for the gratuity payments to Life Insurance Corporation of India as actuarially determined.

b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.

12 Taxes on Income

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.


Mar 31, 2002

1- Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are. recognised in the year in which they become known or materialises.

2. Revenue Recognition

a) Sale of goods is recognised when the risk and rewards of ownership are passed on to the customers, which is generally at the point of dispatch to the customer. Sales includes Excise Duty and are net of discount.

b) Interest income is accounted on accrual basis.

3. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 Depreciation

Since no operation was carried out during the year and the company is not expecting to commence the operations in the near future, depreciation has not been provided for.

5. Investments

Investments are long term and are valued at cost. Provisions for diminution in value of long term investments is made, if the diminution is other than temporary.

6. Inventories

Inventories are valued at lower of cost, in the absence of net realisable value which cannot be quantified since the company is not operational.

7. Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

9- Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalised till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

10 Leases ,

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit & Loss account on a straight-line basis over the lease term.

11. Retirement Benefits

a) The company accounts for the gratuity payments to Life Insurance Corporation of India as actuarially determined.

b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.

12. Taxes on Income

Tax expense comprises of current and deferred 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. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.


Mar 31, 2001

1- Basis of Preparation

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

2. Revenue Recognition

a) Sale of goods is recognised when the risk and rewards of ownership are passed on to the customers, which is generally at the point of dispatch to the customer. Sales includes Excise Duty and are net of discount.

b) Interest income is accounted on accrual basis.

3 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4 Depreciation

Since no operation was carried out during the year and the company is not expecting to commence the operations in the near future, depreciation has not been provided for.

5 Investments

Investments are long term and are valued at cost. Provisions for diminution in value of long term investments is made, if the diminution is other than temporary.

6 Inventories

Inventories are valued at lower of cost, in the absence of net realisable value which cannot be quantified since the company is not operational.

7 Investment Subsidy

Investment Subsidy received from Government of Kerala is treated as Capital Reserve.

8 Borrowing Costs

Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalised till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

9 Retirement Benefits

a) The company accounts for the gratuity payments to Life Insurance Corporation of India as actuarially determined.

b) Contribution to Provident Fund and other recognised funds is charged to Profit & Loss account.

 
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