Mar 31, 2014
NOTE NO. 1:
Aseem Global Limited (the Company) is a public limited company
domiciled in India, incorporated in New Delhi in 1983 under the
provisions of Companies Act, 1956. Its shares are listed on Delhi Stock
Exchange Limited and Bombay Stock Exchange Limited. The Company is into
trading and manufacturing of Non-ferrous metals. Its manufacturing unit
is located at Abu Road, Rajasthan.
a) Basis of preparation and presentation of financial statements ''
The financial statements are prepared on historical cost basis and on
the principles of going concern. The accounting policies not
specifically referred to otherwise, are consistent and in consonance
with generally accepted accounting principles. Ail income and
expenditure are being accounted for on accrual basis. The financial
statements are presented in Indian rupees. The financial statements
have been prepared in accordance with Schedule VI to the ~ Companies
Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI to the Companies Act, 1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle at 12 months for the
purpose of current - noncurrent classification of assets and
liabilities.
b) Use of Estimates
In preparing Company''s financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and reported amount
of revenues and expenses during the reporting period. Actual results
could differ from those estimates. Any revision to accounting estimates
is recognized in the period the same is determined.
c) Revenue Recognition Sales and other incomes:
Sales are recognised when the substantial risks and rewards of
ownership in the goods are transferred to the buyer, upon supply of
goods, and are recognised net of trade discounts, rebates, sales taxes
and excise duties (on goods - manufactured and outsourced). It does not
include inter-branch transfers. Export Sales are accounted for with
reference to the date of bill of lading. Commission on consignment is
recognized when the material is sold by the consignee. Income from
interest on deposits is recognized on time proportionate basis.
Export Benefits:
Income from export incentives such as duty drawback and premium on sale
of import licences, and lease license fee are recognised on an accrual
basis.
Refund of Additional Duty of Customs:
In terms of Customs notification no: 102/2007 dated 14-09-2007, the
amount of additional duty of customs paid at the time of clearance of
goods from Customs for home consumption is refundable if the goods are
sold and CENVAT Credit of Additional Duty is denied to the purchaser
and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty
(Net of CENVAT Credit) paid at the time of clearance of goods is
accounted for as expense. CENVAT Credit availed at the time of
clearance of goods is accounted for as Balance with Revenue Authorities
under Short Term Loans and Advances. After sales of goods if benefit of
CENVAT Credit is passed on to the customers, the same is accounted for
as -
expense and if the benefit of CENVAT Credit is not passed the same is
eligible for refund as per prevailing laws, then the same is accounted
for as Special Additional Duty Refundable appearing under Short Term
Loans and Advances.
d) Inventories
Inventories are valued at lower of cost and net realizable value,
except for scrap and by-products, which is valued at net realizable
value. Cost is determined on the basis of the First in First Out
method. It includes all the appropriate allocable overheads and excise
duty wherever applicable. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make the sale.
Provision for inventory obsolescence is made based on the best
estimates of management.
Finished goods and work-in-progress include costs of conversion and
other costs incurred in bringing the inventories to their present
location and condition.
e) Investments
Investments that are readily realizable and are Intended to be held for
not more than one year from the date on which such investments are made
are classified as current investments. All other investments are
classified as Non-Current investments. Current investments are carried
at cost or fair value, whichever is lower. Non-Current investments are
carried at cost. However, provision for diminution is made to recognize
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually.
f) Tangible Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation and CENVAT benefit availed on capital goods.
Expenditure incurred on startup and commissioning of the project and/or
substantial expansion, including the expenditure incurred on trial runs
(Net of trial run receipts, if any) up to the date of commencement of commercial production are capitalized.
g) Pre-operative/implementation (construction) period expenses
Administration and other general overhead expenses are usually excluded
from the cost of fixed assets because they do not relate to a specific
fixed asset. However, in some circumstances, such expenses as are
specifically attributable to construction of a project or to the
acquisition of a fixed asset or bringing it to its working condition,
are to be included as part of the cost of the construction project or
as a part of the cost of the fixed asset. All expenses, including
general administrative expenditure incurred by the company till the
completion of the project shall be capitalized under the head
pre-operative/implementation (construction) period expenses. Further,
decision regarding the apportionment of such accumulations amongst the
cost of projects undertaken by the company or otherwise to write off of
such expenses, will be taken at the completion/implementation of each
of such projects.
h) Depreciation
Depreciation on Fixed Assets is provided on Written Down Value Method
at the rates and in the manner prescribed _
under Schedule XIV of the Companies Act, 1956. Amortization of lease
hold land is done over the tenure of lease.
i) Impairment of Assets
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified
as impaired. The impairment loss '' recognized in prior accounting
period is reversed if there has been a change in the estimate of
recoverable amount.
j} Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements,
k) Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items, are classified as
operating leases. Lease payment in respect of such leases is recognized
as an expense in the Statement of Profit & Loss on a straight line
basis over the lease term or extended term.
l) Borrowing Cost
Borrowing Costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is an asset that necessarily
requires a substantial period of time to - get ready for its intended
use. All other borrowing costs are recognized in the period in which
they are incurred.
m) Foreign Currency Conversions/Transactions
Foreign Currency Transactions are recorded at the exchange rates
prevailing on the date of the transactions. Gains and losses arising
out of subsequent fluctuations are accounted for on actual payments or
realizations as the case may be. " Current assets and liabilities
denominated in foreign currency as on Balance Sheet date are converted
at the exchange rates prevailing on that date and Exchange differences
arising out of such conversion are recognized in the Statement of
Profit and Loss. Exchange differences on forward contracts are
recognized in the Statement of Profit and Loss over ;-
The length of the contract. Any profit or loss arising on cancellation
or renewal of forward contract is recognized as income or expense as
the case may be in the Statement of Profit and Loss.
n) Employee Benefits
(a) Provisions of Employees Provident Fund & Misc. Provisions Act &
Employees State Insurance Act are applicable to the Company; hence
adequate provisions as required have been made. Employer''s contribution
on accrual basis is charged to Statement of Profit & Loss.
(b) Leave Encashment
The Company has no Leave Encashment Scheme as a part of Retirement
Benefit scheme. The Employees of the Company are entitled to en-cash
their un-availed leave accrued during the year in the year itself in
accordance with the Compan/s rules and regulations. The same is
therefore, accounted for as and when claims are paid. -
(c) (Provision for Gratuity is made on accrual basis, calculated on
actuals. No actuarial valuation has been'' obtained as the numbers of
employees are not significant.
o) Taxation
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period.
a) Current Tax
Current tax expense is based on the provisions of Income Tax Act, 1961
and judicial interpretations thereof as at the Balance Sheet date and
takes into consideration various deductions and exemptions to which the
Company is entitled to as well as the reliance placed by the Company on
the legal advices received by it.
b) Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
current year and reversal of timing differences for earlier years. The
deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the Balance Sheet date. Deferred
tax assets are reviewed at each Balance Sheet date and are written-down
or written-up to reflect the amount that is reasonably/virtually
certain (as the case may be) to be realized. Deferred tax assets and
deferred tax liabilities are offset when there is a legally enforceable
right to set off assets against liabilities representing current tax
and where the deferred tax assets and the deferred tax liabilities
relate to taxes on income levied by the same governing taxation laws.
C) Minimum Alternate Tax (MAT) ,
Minimum Alternate Tax (MAT) credit is recognized as an asset only when
and to the extent there is convincing evidence that the Company will
pay normal income tax during the specified period. In the year in which
MAT credit becomes eligible to be recognized as an asset in accordance
with the recommendation contained in the Guidance Note on "Accounting
for Credit Available in respect of Minimum Alternative Tax under The
Income Tax Act, 1961" issued by the Institute of Chartered Accountants
of India, the said asset is created by way of a credit to the Profit
and Loss Account and shown as MAT Credit Entitlement. The Company
reviews the same at each Balance Sheet date and writes down the
carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
income tax during the specified period.
p) Financial Derivatives and Commodity Hedging Transactions
In respect of financial derivatives and commodity hedging contracts,
premium paid, losses on restatement and gains/losses on settlement are
charged to the Statement of Profit & Loss, except in cases where they
relate to acquisition of fixed assets, in which case they are adjusted
to the carrying cost of such assets.
q) Earnings Per Share
Basis earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of Equity Shares outstanding during the period. For the
purpose of calculating diluted earnings per shares, Net Profit aftertax
during the year and weighted average number of shares outstanding
during the year are adjusted for the effect of all dilutive potential
Equity Shares. If bonus shares are issued, then the EPS of earlier year
is also restated.
r) Government Grants
Government Grants related to specific fixed assets whose primary
condition is that an enterprise qualifying for them should purchase,
construct or otherwise acquire such assets are shown as a deduction
from the gross value of the asset concerned in arriving at its book
value. The grant is thus recognized in the profit and loss statement
over the useful life of a depreciable asset byway of a reduced
depreciation charge.
s) Segment Reporting
The accounting policies adopted for segment reporting are inconformity
with the accounting policies adopted for the company. Further,
- Inter segment revenue has been accounted for based on the transaction
price agreed to between segments which is primarily market based.
- 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 company as a whole and are not
allocable to segments on a reasonable basis, have been included under
"Un-allocated corporate expenses net of un-allocated income".
2.2. The Company has only one class of equity shares, having a par
value ofRs. 10 per share. Each shareholder is eligible to one vote per
share held. The repayment of equity share capital in the event of
liquidation and buy back of shares are possible subject to prevalent
regulations. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their
shareholding.
Mar 31, 2013
A) Basis of preparation and presentation of financial statements
The financial statements are prepared on historical cost basis and on
the principles of going concern. The accounting policies not
specifically referred to otherwise, are consistent and in consonance
with generally accepted accounting principles. All income and
expenditure are being accounted for on accrual basis. The financial
statements are presented in Indian rupees. The financial statements
have been prepared in accordance with Schedule VI to the Companies Act,
1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI to the Companies Act, 1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle at 12 months for the
purpose of current - noncurrent classification of assets and
liabilities.
b) Use of Estimates
In preparing Company''s financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and reported amount
of revenues and expenses during the reporting period. Actual results
could differ from those estimates. Any revision to accounting estimates
is recognized in the period the same is determined.
c) Revenue Recognition Export Benefits:
Export benefits and incentives, if any, are accounted for on the basis
of accrual. Benefits on account of entitlement to import goods free of
duty under the Duty Entitlement Pass Book under Duty Exemption Scheme"
applicable upto 30.09.11 is being accounted in the year of export.
Refund of Additional Duty of Customs:
In terms of Customs notification no: 102/2007 dated 14-09-2007, the
amount of additional duty of customs paid at the time of clearance of
goods from Customs for home consumption is refundable if the goods are
sold and CENVAT Credit of Additional Duty is denied to the purchaser
and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty
(Net of CENVAT Credit) paid at the time of clearance of goods is
accounted for as expense. CENVAT Credit availed at the time of
clearance of goods is accounted for as Balance with Revenue Authorities
under Current Assets, Loans and Advances. After sales of goods if
benefit of CENVAT Credit is passed on to the customers, the same is
accounted for as expense and if the benefit of CENVAT Credit is not
passed and the same is eligible for refund as per prevailing laws, then
the same is accounted for as Special Additional Duty Refundable
appearing under Short term loans & Advances.
Sales and other incomes:
Export Sales are accounted for with reference to the date of bill of
lading. Domestic sales are accounted for on the basis of transfer of
risks and rewards.
Commission on consignment is recognized when the material is sold by
the consignee. Income from interest on deposits is recognized on time
proportionate basis.
d) Inventories
Inventories are valued at lower of cost or net realizable value and all
incidental expenses incurred are included in the cost of goods. All
Non-Cenvatable Customs Duties are treated as part of cost and
Cenvatable duties are not included forvaluation of inventories.
e) Investments
Investments that are readily realizable and are intended to be held for
not more than one year from the date on which such investments are made
are classified as current investments. All other investments are
classified as Non-Current investments. Current investments are carried
at cost or fair value, whichever is lower. Non-Current investments are
carried at cost. However, provision for diminution is made to recognize
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually.
f) Tangible Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation and CENVAT benefit availed on capital goods.
Expenditure incurred on startup and commissioning of the project and/or
substantial expansion, including the expenditure incurred on trial runs
(Net of trial run receipts, if any) up to the date of commencement of
commercial production are capitalized.
g) Pre-operative/implementation (construction) period expenses
Administration and other general overhead expenses are usually excluded
from the cost of fixed assets because they do not relate to a specific
fixed asset. However, in some circumstances, such expenses as are
specifically attributable to construction of a project or to the
acquisition of a fixed asset or bringing it to its working condition,
are to be included as part of the cost of the construction project or
as a part of the cost of the fixed asset." All expenses, including
general administrative expenditure incurred by the company till the
completion of the project shall be capitalized under the head
pre-operative/implementation (construction) period expenses. Further,
decision regarding the apportionment of such accumulations amongst the
cost of projects undertaken by the company or otherwise to write off of
such expenses, will betaken at the completion/implementation of each of
such projects.
h) Depreciation
Depreciation on Fixed Assets is provided on Written Down Value Method
at the rates and in the manner prescribed under Schedule XIV of the
Companies Act, 1956.
No amortization of lease hold land is done, in view of long tenure of
lease & which is generally renewed after the lease period.
i) Impairment of Assets
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
j) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
k) Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items, are classified as
operating leases. Lease payment in respect of such leases is recognized
as an expense in the Statement of Profit & Loss on a straight line
basis over the lease term or extended term. Leasehold land is not
amortized in view of long term nature of the lease.
I) Borrowing Cost
Borrowing Costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready for its intended
use. All other borrowing costs are recognized in the period in which
they are incurred.
n) Employee Benefits
a) Provisions of Provident Fund Act & Pension Scheme are applicable to
the Company; hence adequate provisions as required have been made.
Employer''s contribution on accrual basis is charged to Statement of
Profit & Loss.
b) Leave Encashment
The Company has no Leave Encashment Scheme as a part of Retirement
Benefit scheme. The Employees of the Company are entitled to en-cash
their un-availed leave accrued during the year in the year itself in
accordance with the Company''s rules and regulations. The same is
therefore, accounted for as and when claims are paid.
c) Provision for Gratuity is made on accrual basis, calculated on
actuals. No actuarial valuation has been obtained as the numbers of
employees are not significant.
o) Taxation
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit
or loss forthe period.
a) Current Tax
Current tax expense is based on the provisions of Income Tax Act, 1961
and judicial interpretations thereof as at the Balance Sheet date and
takes into consideration various deductions and exemptions to which the
Company is entitled to as well as the reliance placed by the Company on
the legal advices received by it.
b) Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
current year and reversal of timing differences for earlier years. The
deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the Balance Sheet date. Deferred
tax assets are reviewed at each Balance Sheet date and are written-down
or written-up to reflect the amount that is reasonably/virtually
certain (as the case may be) to be realized. Deferred tax assets and
deferred tax liabilities are offset when there is a legally enforceable
right to set off assets against liabilities representing current tax
and where the deferred tax assets and the deferred tax liabilities
relate to taxes on income levied by the same governing taxation laws.
c) Minimum Alternate Tax (MAT)
Minimum Alternate Tax (MAT) credit is recognized as an asset only when
and to the extent there is convincing evidence that the Company will
pay normal income tax during the specified period. In the year in which
MAT credit becomes eligible to be recognized as an asset in accordance
with the recommendation contained in the Guidance Note on "Accounting
for Credit Available in respect of Minimum Alternative Tax underThe
Income Tax Act, 1961" issued by the Institute of Chartered Accountants
of India, the said asset is created by way of a credit to the Profit
and Loss Account and shown as MAT Credit Entitlement. The Company
reviews the same at each Balance Sheet date and writes down the
carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
income tax during the specified period.
p) Financial Derivatives and Commodity Hedging Transactions
In respect of financial derivatives and commodity hedging contracts,
premium paid, losses on restatement and gains/losses on settlement are
charged to the Statement of Profit & Loss, except in cases where they
relate to acquisition of fixed assets, in which case they are adjusted
to the carrying cost of such assets.
q) Earnings Per Share
Basis earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of Equity Shares outstanding during the period. For the
purpose of calculating diluted earnings per shares. Net Profit after
tax during the year and weighted average number of shares outstanding
during the year are adjusted for the effect of all dilutive potential
Equity Shares. If bonus shares are issued, then the EPS of earlieryear
is also restated.
r) Government Grants
Government Grants related to specific fixed assets whose primary
condition is that an enterprise qualifying for them should purchase,
construct or otherwise acquire such assets are shown as a deduction
from the gross value of the asset concerned in arriving at its book
value. The grant is thus recognized in the profit and loss statement
over the useful life of depreciable asset by way of a reduced
depreciation charge.
Mar 31, 2012
A) Basis of preparation and presentation of financial statements
The financial statements are prepared on Historical Cost basis and on
the principles of going concern. The accounting policies not
specifically referred to otherwise, are consistent andin consonance
with generally accepted accounting principles. All income and
expenditure are being accounted for on accrual basis. The financial
statements are presented in Indian rupees.
During the year ended March 2012, the revised Schedule VI notified
under the Companies Act, 1956 has become applicable to the Company for
presentation of its financial statements. The adoption of revised
Schedule VI does not impact recognition and measurement principles
followed for preparation of financial statement. However, the revised
Schedule VI has a significant impact on the 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.
All assets and liabilities have been classified as current or non-
current as per the Company's normal operating cycle and other criteria
set out in the revised Schedule VI to the Companies Act, 1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current - noncurrent classification of assets and
liabilities.
b) Use of Estimates
In preparing Company's financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and reported amount
of revenues and expenses during the reporting period. Actual results
could differ from those estimates. Any revision to accounting estimates
is recognized in the period the same is determined.
c) Revenue Recognition
Export Benefits
Export benefits and incentives, if any, are accounted for on the basis
of accrual. Benefits on account of entitlement to import goods free of
duty under the Duty Entitlement Pass Book under Duty Exemption Scheme"
applicable upto 30.09.11 is being accounted in the year of export.
Refund of Additional Duty of Customs
In terms of Customs notification no: 102/2007 dated 14-09-2007, the
amount of additional duty of customs paid at the time of clearance of
goods from Customs for home consumption is refundable if the goods are
sold and CENVAT Credit of Additional Duty is denied to the purchaser
and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty
(Net of CENVAT Credit) paid at the time of clearance of goods is
accounted for as expense. CENVAT Credit availed at the time of
clearance of goods is accounted for as Balance with Revenue Authorities
under Current Assets, Loans and Advances. After sales of goods , If
benefit of CENVAT Credit is passed on to the customers, the same is
accounted for as expense and if the benefit of CENVAT Credit is not
passed and the same is eligible for refund as per prevailing laws, then
the same is accounted for as Special Additional Duty Refundable
appearing under Short term loans & Advances.
Sales and other incomes
Export Sales are accounted for with reference to the date of bill of
lading. Domestic sales are accounted for on the basis of transfer of
risks and rewards.
Commission on consignment is recognized when the m aterial is sold by
the consignee.
Income from interest on deposits is recognized on time proportionate
basis.
d) Inventories
Inventories are valued at lower of cost or net realisable value and all
incidental expenses incurred are included in the cost of goods. All
Non-Cenvatable Customs Duties are treated as part of cost and
Cenvatable duties are not included for valuation of inventories.
e) Investments
Investments that are readily realizable and are intended to be held for
not more than one year from the date on which such investments are made
are classified as current investments. All other investments are
classified as Non Current investments. Current investments are carried
at cost or fair value, whichever is lower. Non Current investments are
carried at cost. However, provision for diminution is made to
recognize a decline, other than temporary, in the value of the
investments, such reduction being determined and made for each
investment individually.
f) Tangible Fixed Assets
Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation and CENVAT benefit availed on capital goods.
g) Depreciation
Depreciation on Fixed Assets is provided on Written Down Value Method
at the rates and in the manner prescribed under
Schedule XIV of the Companies Act, 1956.
No amortization of lease hold land is done, in view of long tenure of
lease & which is generally renewed after the lease period.
h) Impairment of Assets
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit & Loss in the year in which an asset is identified
as impaired. The impairment loss recognized in prior accounting period
is reversed if there has been a change in the estimate of recoverable
amount.
I) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
j) Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items, are classified as
operating leases. Lease payment in respect of such leases are
recognized as an expense in the Statement of Profit & Loss on a
straight line basis over the lease term or extended term.
k) Borrowing Cost
Borrowing Costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is an asset that necessarily
requires a subs tantial period of time to get ready for its intended
use. All other borrowing costs are recognized in the period in which
they are incurred.
L) Foreign Currency Conversions/Transactions
Foreign Currency Transactions are recorded at the exchange rates
prevailing on the date of the transactions. Gains and losses arising
out of subsequent fluctuations are accounted for on actual payments or
realizations as the case may be. Current assets and liabilities
denominated in foreign currency as on Balance Sheet date are converted
at the exchange rates prevailing on that date and Exchange differences
arising out of such conversion are recognised in the Statement of
Profit and Loss. Exchange differences on forward contracts are
recognized in the Statement of Profit and Loss over the length of the
contract. Any profit or loss arising on cancellation or renewal of
forward contract is recognized as income or expense as the case may be
in the Statement of Profit & Loss.
m) Employee Benefits
a) Provisions of Provident Fund Act & Pension Scheme are applicable to
the Company; hence adequate provisions as required have been made.
Employer's contribution on accrual basis is charged to the Statement of
Profit & Loss.
b) Leave Encashment
The Company has no Leave Encashment Scheme as a part of Retirement
Benefit scheme. The Employees of the Company are entitled to encash
their un -availed leave accrued during the year in the year itself in
accordance with the Company's rules and regulations. The same is
therefore, accounted for as and when claims are paid.
c) Provision for Gratuity is made on accrual basis, calculated on
actuals. No actuarial valuation has been obtained as the numbers of
employees are not significant.
n) Unamortized Expenses
All expenses wherein the benefits are likely to accrue over a long
period of time are deferred and amortized (systematically charged) to
the relevant expense head over the period in which the benefits shall
accrue. Unamortized expenses pertaining to future periods are shown in
Balance Sheet as Long Term Loans and advances under Non -current
Assets/Current Assets as the case may be based upon the period in which
it is to be expensed out.
o) Taxation
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period.
a) Current Tax
Current tax expense is based on the provisions of Income Tax Act, 1961
and judicial interpretations thereof as at the Balance Sheet date and
takes into consideration various deductions and exemptions to which the
Company is entitled to as well as the reliance placed by the Company on
the legal advices received by it.
b) Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for thecurrent
year and reversal of timing differences for earlier years. The deferred
tax charge or credit and the corresponding deferred tax liabilities or
assets are recognized using the tax rates that have been enacted or
substantively enacted by the Balance Sheet date. Deferred tax assets
are reviewed at each Balance Sheet date and are written-down or
written-up to reflect the amount that is reasonably/virtually certain
(as the case may be) to be realized. Deferred tax assets and deferred
tax liabilities are offset when there is a legally enforceable right to
set off assets against liabilities representing current tax and where
the deferred tax assets and the deferred tax liabilities relate to
taxes on income levied by the same governing taxation laws.
c) Minimum Alternate Tax (MAT)
Minimum Alternate Tax (MAT) credit is recognized as an asset only when
and to the extent there is convincing evidence that the Company will
pay normal income tax during the specified period. In the year in which
MAT credit becomes eligible to be recognized as an asset in accordance
with the recommendation contained in the Guidance Note on " Accounting
for Credit Available in respect of Minimum Alternative Tax under The
Income Tax Act, 1961" issued by the Institute of Chartered Accountants
of India, the said asset is created by way of a credit to the Statement
of Profit and Loss and shown as MAT Credit Entitlement. The Company
reviews the same at each Balance Sheet date and writes down the
carrying amount of MAT Credit Entitlement to th e extent there is no
longer convincing evidence to the effect that Company will pay normal
income tax during the specified period.
p) Financial Derivatives and Commodity Hedging Transactions
In respect of financial derivatives and commodity hedging contracts,
premium paid, losses on restatement and gains/losses on settlement are
charged to the Statement of Profit & Loss, except in cases where they
relate to acquisition of fixed assets, in which case they are adjusted
to the carrying cost of such assets.
q) Earnings Per Share
Basis earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of Equity Shares outstanding during the period. For the
purpose of calculating dilute d earnings per shares, Net Profit after
tax during the year and weighted average number of shares outstanding
during the year are adjusted for the effect of all dilutive potential
Equity Shares.If bonus shares are issued, then the EPS of earlier year
is a lso restated.
Mar 31, 2011
1) Basis of Accounting:
The accounts of the company are prepared under historical cost
convention and in accordance with the applicable Accounting Standards
referred to in Section 211(3C) and other requirements of the Companies
Act, 1956, except where otherwise stated. For recognition of income &
expenses, accrual basis of accounting is being followed.
2) Revenue Recognition:
Export Benefits:
Export benefits and incentives, if any, are account ed for on the basis
of accrual. Benefits on account of entitlement to import goods free of
dutyunder the Duty Entitlement Pass Book under Duty Exemption Scheme"
is being accounted in the year of export.
Refund of Additional Duty of Customs:
In terms of Customs notification no: 102/2007 dated 14-09-2007, the
amount of additional duty of customs paid at the time of clearance of
goods from Customs for home consumption is refundable if the goods are
sold and CENVAT Credit of Additional Duty is denied to the purchaser
and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty
(Net of CENVAT Credit) paid at the time of clearance of goods is
accounted for as expense. CENVAT Credit availed at the time of
clearance of goods is accounted for as Balance with Revenue Authorities
under Current Assets, Loans and Advances. After sales of goods and
deposit of appropriate Sales Tax/VAT, the refund claim is filed with
Customs, and thereafter CENVAT Credit as availed earlier is reversed.
If benefit of CENVAT Credit is passed on to the customers, the same is
accounted for as expense and if the benefit of CENVAT Credit is not
passed and the same is eligible for refund as per prevailing laws, then
the same is accounted for as Special Additional Duty Refundable
appearing under Other Current Assets, to the extent of claims filed
with the Customs Authorities.
Sales:
Export Sales are accounted for with reference to the date of bill of
lading. Domestic sales are accounted for on the basis of transfer of
risks and rewards.
3) Inventories:
Inventories are valued at lower of cost or net realisable value and all
incidental expenses incurred are included in the cost of goods. All
Non-Cenvatable Customs Duties are treated as part of cost and
Cenvatable duties are not included for valuation of inventories.
4) Investments:
Long-term investments are stated at cost. Provision for diminution in
the value is made if decline is other than temporary. Current
investments are stated at lower of cost or fair market value.
5) Fixed Assets:
Fixed assets are stated at historical cost less accumulated
depreciation. Historical cost comprises the Purchase price and all
direct cost attributable to bring the assets to its working condition
for the intended use.
6) Depreciation :
Depreciation on Fixed Assets is provided on Written Down Value Method
at the rates and in the manner prescribed under Schedule XIV of the
Companies Act, 1956.
7) Impairment of Assets
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
8) Foreign Exchange Transactions:
a) Transactions in foreign exchange are accounted for at the exchange
rates prevailing on the date of transactions.
b) Assets and Liabilities if any related to Foreign Currency
Transaction outstanding at the end of the year are translated at the
year-end rates and gains/loss on account of Exchange difference on
translation or restatement are recognized in the Profit & Loss Account.
9) Employee Benefits:
a) Provisions of Provident Fund Act & Pension Scheme are applicable to
the Company; hence adequate provisions as required have been made.
Employers contribution on accrual basis is charged to Profit & Loss
account.
b) Leave Encashment
The Company has no Leave Encashment Scheme as a par t of Retirement
Benefit scheme. The Employees of the Company are entitled t o encash
their un-availed leave accrued during the year in the year itself in
accor dance with the Companys rules and regulations. The same is
therefore, accounted for as and when claims are paid.
c) Provision for Gratuity is made on accrual basis, calculated on
actuals. No actuarial valuation has been obtained as the numbers of
employees are not significant.
10) Borrowing Cost:
Borrowing Costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready for its intended
use. All other borrowing costs are recognized in the period in which
they are incurred.
11)Taxation:
a) Deferred Tax Liabilities/Assets is dealt with in accordance with the
Accounting Standard- 22 (AS-22). Deferred Tax Assets are accounted for
only if there is virtual certainty of realization in the near future.
b) Minimum Alternate Tax (MAT) if any, is provided based upon the
provisions of Section 115JB of the Income Tax Act, 1961 and MAT Credit
Ent itlement is considered if sufficient certainty as to future taxable
income is there.
12) Financial Derivatives and Commodity Hedging Transactions
In respect of financial derivatives and commodity h edging contracts,
premium paid, losses on restatement and gains/losses on settlement are
charged to the Profit & Loss Account, except in cases where they relate
to acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
Mar 31, 2010
1) Basis of Accounting:
The accounts of the company are prepared under historical cost
convention and in accordance with the applicable Accounting Standards
referred to in Section 211(3C) and other requirements of the Companies
Act, 1956, except where otherwise stated. For recognition of income &
expenses, accrual basis of accounting is being followed.
2) Revenue Recognition:
Export Benefits:
Export benefits and incentives, if any, are accounted for on the basis
of accrual. Benefits on account of entitlement to import goods free of
duty under the Duty Entitlement Pass Book under Duty Exemption Scheme'
is being accounted in the year of export.
Refund of Additional Duty of Customs:
In terms of Customs notification no: 102/2007 dated 14-09-2007, the
amount of additional duty of customs paid at the time of clearance of
goods from Customs for home consumption is refundable if the goods are
sold and CENVAT Credit of Additional Duty is denied to the purchaser
and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty
(Net of CENVAT Credit) paid at the time of clearance of goods is
accounted for as expense. CENVAT Credit availed at the time of
clearance of goods is accounted for as Balance with Revenue Authorities
under Current Assets, Loans and Advances. On Sales of goods, CENVAT
Credit as availed earlier is reversed. If benefit of CENVAT Credit is
passed on to the customers, the same is accounted for as expense and if
the benefit of CENVAT Credit is not passed and the same is eligible for
refund as per prevailing laws, then the same is accounted for as
Special Additional Duty Refundable appearing under Other Current
Assets.
Sales:
Export Sales are accounted for with reference to the date of bill of
lading. Domestic sales are accounted for on the basis of transfer of
risks and rewards.
3) Inventories:
Inventories are valued at lower of cost or net realisable value and all
incidental expenses incurred are included in the cost of goods. All
Non-Cenvatable Customs Duties are treated as part of cost and
Cenavatable duties are not included for valuation of inventories.
4) Investments:
Long-term investments are stated at cost. Provision for diminution in
the value is made if decline is other than temporary. Current
investments are stated at lower of cost or fair market value.
5) Fixed Assets:
Fixed assets are stated at historical cost less accumulated
depreciation. Historical cost comprises the Purchase price and all
direct cost attributable to bring the assets to its working condition
for the intended use.
6) Depreciation:
Depreciation on Fixed Assets is provided on Written Down Value Method
at the rates and in the manner prescribed under Schedule XIV of the
Companies Act, 1956.
7) Impairment of Assets
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
8) Foreign Exchange Transactions:
a) Assets and Liabilities if any related to Foreign Currency
Transaction outstanding at the end of the year are translated at the
year-end rates.
b) Any Income or Expenses on account of Exchange difference on
translation or restatement are recognized in the Profit & Loss Account.
c) Transactions in foreign exchange are accounted for at the exchange
rates prevailing on the date of transactions.
9) Employee Benefits:
a) Provisions of Provident Fund Act & Pension Scheme are applicable to
the Company; hence adequate provisions as required have been made.
Employer's contribution on accrual basis is charged to Profit & Loss
account.
b) Leave Encashment
The Company has no Leave Encashment Scheme as a part of Retirement
Benefit scheme. The Employees of the Company are entitled to encash
their un-availed leave accrued during the year in the year itself in
accordance with the Company's rules and regulations. The same is
therefore, accounted for as and when claims are paid.
c) Provision for Gratuity is made on accrual basis, calculated on
actuals. No actuarial valuation has been obtained as the numbers of
employees are not significant.
10)Borrowing Cost:
Borrowing Costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready for its intended
use. All other borrowing costs are recognized in the period in which
they are incurred.
11)Taxation:
a) Deferred Tax Liabilities/Assets is dealt with in accordance with the
Accounting Standard- 22 (AS-22). Deferred Tax Assets are accounted for
only if there is virtual certainty of realization in the near future.
b) Minimum Alternate Tax (MAT) is provided based upon the provisions of
Section 115JB of the Income Tax Act, 1961 and MAT Credit Entitlement is
considered if sufficient certainty as to future taxable income is
there.
12)Financial Derivatives and Commodity Hedging Transactions
In respect of financial derivatives and commodity hedging contracts,
premium paid, losses on restatement and gains/losses on settlement are
charged to the Profit & Loss Account, except in cases where they relate
to acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
Mar 31, 2009
1) Basis of Accounting:
The accounts of the company are prepared under historical cost
convention and in accordance with the applicable Accounting Standards
referred to in Section 211 (3C) and other requirements of the Companies
Act, 1956, except where otherwise stated. For recognition of income &
expenses, accrual basis of accounting is being followed.
2) Revenue Recognition:
Export Benefits:
Export benefits and incentives, if any, are accounted for on the basis
of accrual. Benefits on account of entitlement to import goods free of
duty under the Duty Entitlement Pass Book under Duty Exemption Scheme'
is being accounted in the year of export.
Refund of Additional Duty of Customs:
In terms of Customs notification no: 102/2007 dated 14-09-2007, the
amount of additional duty of customs paid at the time of clearance of
goods from Customs for home consumption is refundable if the goods are
sold and CENVAT Credit of Additional Duty is denied to the purchaser
and appropriate Sales Tax thereon is deposited. Total Customs Duty paid
at the time of clearance of goods is accounted for on payment basis and
on subsequent sale of the goods such customs duty account is credited
and refundable account is debited.
Sales:
Export Sales are accounted for with reference to the date of bill of
lading. Domestic sales are accounted for on the basis of transfer of
risks and rewards.
3) Inventories:
Inventories are valued at lower cost or net realisable value, whichever
is less and all incidental expenses incurred are included in the cost
of goods.
4) Investments:
Long-term investments are stated at cost. Provision for diminution in
the value is made if decline is other than temporary. Current
investments are stated at lower of cost or fair market value.
5) Fixed Assets:
Fixed assets are stated at historical cost less accumulated
depreciation. Historical cost comprises the Purchase price and all
direct cost attributable to bring the assets to its working condition
for the intended use.
6) Depreciation:
Depreciation on Fixed Assets is provided on Written Down Value Method
at the rates and in the manner prescribed under Schedule XIV of the
Companies Act, 1956.
7) Impairment of Assets
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
8) Foreign Exchange Transactions:
a) Assets and Liabilities if any related to Foreign Currency
Transaction outstanding at the end of the year are translated at the
year-end rates
b) Any Income or Expenses on account of Exchange difference on
translation or restatement are recognized in the Profit & Loss Account.
9) Employee Benefits:
a) Provisions of Provident Fund Act & Pension Scheme are not
applicable to the Company; hence no provision was required to be made.
b) Leave Encashment
The Company has no Leave Encashment Scheme as a part of Retirement
Benefit scheme. The Employees of the Company are entitled to encash
their un-availed leave accrued during the year in the year itself in
accordance with the Company's rules and regulations. The same is
therefore, accounted for as and when claims are paid.
c) Provision for Gratuity is made on accrual basis, calculated on
actuals. No actuarial valuation has been obtained as the numbers of
employees are few.
10)Borrowing Cost:
Borrowing Costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready for its intended
use. All other borrowing costs are recognized in the period in which
they are incurred.
11)Taxation:
a) Deferred Tax Liabilities/Assets is dealt with in accordance with the
Accounting Standard- 22 (AS-22). Deferred Tax Assets are accounted for
only if there is virtual certainty of realization in the near future.
b) Minimum Alternate Tax (MAT) is provided based upon the provisions of
Section 115JB of the Income Tax Act, 19G1 and MAT Credit Entitlement is
considered if sufficient certainty as to future taxable income is
there.
12)Financial Derivatives and Commodity Hedging Transactions
In respect of financial derivatives and commodity hedging contracts,
premium paid, losses on restatement and gains/losses on settlement are
charged to the Profit & Loss Account, except in cases where they relate
to acquisition of fixed assets, in which ease they are adjusted to the
carrying cost of such assets.