Mar 31, 2015
(a) Basis of preparation
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956
Act"), as applicable. The financial statements have been prepared on
accrual basis under the historical cost convention. The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year except for change
in the accounting policy for depreciation as more fully described in
Note AD.
(b) Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
(c) Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognised when the significant risks and rewards of
ownership of the goods have passed to the buyer. It includes excise
duty and discounts but excludes value added tax / sales tax and is net
of returns. Excise duty shown as deduction from revenue is the amount
that is included in the amount of revenue and not the entire amount of
liability that arose during the period.
Sale of Licenses
Revenue from sale of licenses is recognised when the entitlement for
license is endorsed in the name of the importer. It excludes value
added tax / sales tax.
Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Dividend income is recognized when the right to receive dividend is
established.
(d) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
In respect of accounting periods commencing on or after 7th December,
2006, exchange differences arising on reporting of the long-term
foreign currency monetary items at rates different from those at which
they were initially recorded during the period, or reported in the
previous financial statements are added to or deducted from the cost of
the asset and are depreciated over the balance life of the asset, if
these monetary items pertain to the acquisition of a depreciable fixed
asset.
(e) Depreciation
Depreciable amount for assets is the cost of an asset, or other amount
substituted for cost, less its estimated residual value. Depreciation
on tangible fixed assets has been provided on the straight- line method
as per the useful life prescribed in Schedule II to the Companies Act,
2013. Intangible assets are amortised over their estimated useful life
on straight line method.
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation period is revised to reflect the changed pattern, if any.
(f) Impairment
i. 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 asset's 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.
ii. After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
(g) Leases
Where the Company is the lessee 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 statement of profit and
loss account on a straight-line basis over the lease term.
(h) Inventories
Inventories are valued as follows:
(i) Foreign currency transactions (i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting Company's monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
Exchange differences, in respect of accounting periods commencing on or
after 7th December, 2006, arising on reporting of long-term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in previous
financial statements, in so far as they relate to the acquisition of a
depreciable capital asset, are added to or deducted from the cost of
the asset and are depreciated over the balance life of the asset.
(iv) Forward Exchange Contracts not intended for trading or speculation
purposes
In case of monetary items which are covered by forward exchange
contracts, the difference between the exchange rate on the date of such
contracts and the year-end rate is recognized in the statement of
profit and loss account. Any profit/loss arising on cancellation of
forward exchange contract is recognized as income or expense of the
year. Premium/Discount arising on such forward exchange contracts is
amortised as income/expense over the life of the contract.
(j) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value is made to recognise a
decline other than temporary in the value of the investments.
(k) Retirement and other employee benefits Provident Fund
Retirement benefits in the form of Provident Funds are a defined
contribution scheme and the contributions are charged to the statement
of profit and loss account of the period when the contributions are
made to Regional Provident Fund Commissioner. There are no other
obligations other than the contribution payable.
(l) Income taxes
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 period timing differences between
taxable income and accounting income for the period 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 and deferred tax liabilities across various countries of
operation are not set off against each other as the company does not
have a legal right to do so. Deferred tax assets and deferred tax
liabilities are offset, if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to the taxes on income
levied by same governing taxation laws. 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. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognised only if there is virtual certainty supported
by convincing evidence that they 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.
The deferred tax in respect of timing differences which originate
during the tax holiday period and reverse during the tax holiday
period, are not recognised to the extent the enterprise's gross total
income is subject to the deduction during the tax holiday period as per
the requirements of the Act.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available
MAT credit is recognised 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 the Minimum
Alternative tax (MAT) credit becomes eligible to be recognized as an
asset in accordance with the recommendations contained in Guidance Note
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
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.
(m) Segment Reporting Policies Identification of segments:
The Company's operating businesses are organized and managed separately
according to the nature of products, with each segment representing a
strategic business unit that offers different products and serves
different markets. The analysis of geographical segments is based on
the areas in which major operating divisions of the Company operate.
Allocation of common costs:
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items:
The Corporate and Other segment includes general corporate income and
expense items which are not allocated to any business segment.
Segment Policies:
The company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole
(n) Borrowing Cost
Borrowing cost attributable to the acquisition or construction of
qualifying assets as defined in the Accounting Standard 16 on
'Borrowing Cost' are capitalized as part of the cost of such assets up
to the date when the asset is ready for its intended use. Other
borrowing costs are expensed as incurred.
(o) 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.
(p) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
(q) Cash Flow Statement
Cash flows are reported using indirect method, whereby profit before
tax is adjusted for the effects of transactions of a non-cash nature
and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, financing and
investing activities of the Company are segregated
(r) Cash and Cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank,
cash/ cheques in hand and short-term investments with an original
maturity of three months or less.
(s) Miscellaneous Expenditure (to the extent not written off or
adjusted)
Expenses incurred on Initial Public Offer, will be adjusted against the
securities premium account and hence not charged to statement of profit
and loss account.
W. The Company has a defined benefit gratuity plan. Every employee who
has completed five years or more of service gets a gratuity on
departure at 15 days salary (last drawn salary) for each completed year
of service. The defined benefit obligation for gratuity is unfunded.
In assessing the Company's Post Retirement Liabilities, the Company
monitors mortality assumptions and uses up-to-date mortality tables.
The base being the Indian Assured Lives Mortality (2006-08) Ultimate.
The estimates of future salary increase, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
The Company has carried out the actuarial valuation in the current
year, the previous years numbers are not presented.
The impact in the opening retained earnings for the earlier is minimal,
hence the same is considered in current year statement of profit and
loss.
The Company has not accounted interest on cash credit facility taken
from Dena Bank and State Bank of India and interest on vehicle loan
taken from Janakalyan Sahakari Bank Ltd. The Company has received
notice under SARFAESI Act, where the loan of the Banks have become NPA,
and they have filed recovery proceedings before appropriate
authorities. The Company is of the view that the notice filed by JKB,
DENA Bank and SBI is against mistaken identity. The matter is before
appropriate authority, pending the decision, the interest has not been
accrued, as the quantum is not ascertainable as this stage.
The Company is early stage of discussion with the banks for
restructuring and negotiation on settlement on the debts.
Y. In the opinion of Board of Directors the Current Assets, Loans &
Advances are approximately of the value stated if realized in the
ordinary course of business. The provision for depreciation and all
known liabilities are adequate and not in excess of amount reasonably
necessary.
Mar 31, 2014
(a) Basis of preparation
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis
except in case of assets for which provision for impairment is made and
revaluation is carried out. The accounting policies have been
consistently applied by the Company and except for the changes in
accounting policy discussed more fully below, are consistent with those
used in the previous year.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
(c) Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognised when the significant risks and rewards of
ownership of the goods have passed to the buyer. It includes excise
duty and discounts but excludes value added tax / sales tax and is net
of returns. Excise duty shown as deduction from revenue is the amount
that is included in the amount of revenue and not the entire amount of
liability that arose during the period.
Sale of Licenses
Revenue from sale of licenses is recognised when the entitlement for
license is endorsed in the name of the importer. It excludes value
added tax / sales tax.
Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Dividend income is recognized when the right to receive dividend is
established.
(d) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
In respect of accounting periods commencing on or after 7th December,
2006, exchange differences arising on reporting of the long-term
foreign currency monetary items at rates different from those at which
they were initially recorded during the period, or reported in the
previous financial statements are added to or deducted from the cost of
the asset and are depreciated over the balance life of the asset, if
these monetary items pertain to the acquisition of a depreciable fixed
asset.
(e) Depreciation
Depreciation on Fixed Assets is provided pro-rata from the date of
addition using the Straight Line Method each at the rates based upon
useful life of the assets estimated by the management, which are equal
to the corresponding rates prescribed in Schedule XIV of the Companies
Act, 1956.
(f) Impairment
i. 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 asset''s 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.
ii. After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
(g) Leases
Where the Company is the lessee
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 statement of profit and loss account on a straight-line basis
over the lease term
(h) Inventories
Inventories are valued as follows:
Raw materials, stores and spare parts
Lower of cost and net realizable value. However, materials and other
items held for use in the production of inventories are not written
down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost. Cost is
determined on weighted average basis.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
(i) Foreign currency transactions
(i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting Company''s monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
Exchange differences, in respect of accounting periods commencing on or
after 7th December, 2006, arising on reporting of long-term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in previous
financial statements, in so far as they relate to the acquisition of a
depreciable capital asset, are added to or deducted from the cost of
the asset and are depreciated over the balance life of the asset.
(iv) Forward Exchange Contracts not intended for trading or speculation
purposes
In case of monetary items which are covered by forward exchange
contracts, the difference between the exchange rate on the date of such
contracts and the year end rate is recognized in the statement of
profit and loss account. Any profit/loss arising on cancellation of
forward exchange contract is recognized as income or expense of the
year. Premium/Discount arising on such forward exchange contracts is
amortised as income/expense over the life of the contract .
(j) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value is made to recognise a
decline other than temporary in the value of the investments.
(k) Retirement and other employee benefits Provident Fund
Retirement benefits in the form of Provident Funds are a defined
contribution scheme and the contributions are charged to the statement
of profit and loss account of the period when the contributions are
made to Regional Provident Fund Commissioner. There are no other
obligations other than the contribution payable.
(l) Income taxes
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 period timing differences between
taxable income and accounting income for the period 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 and deferred tax liabilities across various countries of
operation are not set off against each other as the company does not
have a legal right to do so. Deferred tax assets and deferred tax
liabilities are offset, if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to the taxes on income
levied by same governing taxation laws. 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. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognised only if there is virtual certainty supported
by convincing evidence that they can be realised against future taxable
profits.
At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognisesunrecognised 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.
The deferred tax in respect of timing differences which originate
during the tax holiday period and reverse during the tax holiday
period, are not recognised to the extent the enterprise''s gross total
income is subject to the deduction during the tax holiday period as per
the requirements of the Act.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available MAT credit is
recognised 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 the Minimum Alternative tax
(MAT) credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in Guidance Note 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 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.
(m) Segment Reporting Policies
Identification of segments:
The Company''s operating businesses are organized and managed separately
according to the nature of products, with each segment representing a
strategic business unit that offers different products and serves
different markets. The analysis of geographical segments is based on
the areas in which major operating divisions of the Company operate.
Allocation of common costs:
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items:
The Corporate and Other segment includes general corporate income and
expense items which are not allocated to any business segment.
Segment Policies:
The company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole
(n) Borrowing Cost
Borrowing cost attributable to the acquisition or construction of
qualifying assets as defined in the Accounting Standard 16 on
''Borrowing Cost'' are capitalized as part of the cost of such assets up
to the date when the asset is ready for its intended use. Other
borrowing costs are expensed as incurred.
(o) 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.
(p) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
(q) Cash Flow Statement
Cash flows are reported using indirect method, whereby profit before
tax is adjusted for the effects of transactions of a non-cash nature
and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, financing and
investing activities of the Company are segregated.
(r) Cash and Cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank,
cash/cheques in hand and short-terminvestments with an original
maturity of three months or less.
(s) Miscellaneous Expenditure (to the extent not written off or
adjusted)
Expenses incurred on Initial Public Offer, will be adjusted against the
securities premium account and hence not charged to statement of profit
and loss account.
Mar 31, 2012
A. ACCOUNTING POLICIES:
1) Basis of Preparation of Financial Statements:
The accounts have been prepared on the historical cost basis and on the
principles of a going concern and also in accordance with the standards
on accounting issued by Institute of Chartered Accountants of India
referred to in section 211 (3C) of the Companies Act, 1956, unless
specifically stated to be otherwise.
Accounting policies, unless specifically stated to be otherwise, are
consistent and are in accordance with generally accepted accounting
principles.
2) Investments:
Long Term Investments are stated at cost. However, when there is a
decline other than temporary in the value of long term investment, the
carrying amount is reduced to recognize the decline.
3) Recognition of Income and Expenditure :
Income and expenses is accounted on accrual basis. Dividend is
accounted for in the year in which the same is received.
4) Taxes on Income :
a) Current Tax: Provision for Income Tax is determined in accordance
with the provisions of Income Tax Act, 1961.
b) Deferred Tax Provision: Deferred Tax is recognized on timing
differences being the differences between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period(s). The deferred tax asset is
recognized and carried forward only to the extent that there is a
reasonable certainty that the asset will be realized in future.
5) Miscellaneous Expenditure:
Preliminary Expenses are amortized over period of five years.
6) Borrowing Cost:
Borrowing cost (if any) that are directly attributable to the
acquisition, construction or production of a qualifying asset are
capitalized as part of the cost of that asset. The amount of other
borrowing cost (if any) is recognized as an expense in the period in
which they are incurred.
7) Provisions, Contingent Liabilities and Contingent Assets
Provision are recognized for liabilities that can be measured only by
using substantial degree of estimation, if
1. the company has a present obligation as a results of past event,
2. a probable outflow of resource is expected to settle the obligation
and
3. the amount of the obligation can be reliably estimated
Reimbursement expected in respect of expenditure required to settle a
provision is recognized only when it is virtually certain that the
reimbursement will be received.
Contingent Liability is disclosed in the case of
a. a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation
b. a possible obligation, unless the probability of outflow of
resources is remote. Contingent Assets are neither recognized, nor
disclosed.
Provisions, Contingent Liabilities and Contingent Assets are reviewed
at each Balance Sheet Date.
Mar 31, 2011
1) Basis of Preparation of Financial Statements:
The accounts have been prepared on the historical cost basis and on the
principles of a going concern and also in accordance with the standards
on accounting issued by Institute of Chartered
Accountants of India referred to in section 211 (3C) of the Companies
Act, 1956, unless specifically stated to be otherwise.
Accounting policies, unless specifically stated to be other wise, are
consistent and are in accordance with generally accepted accounting
principles.
2) Investments:
Long Term Investments are stated at cost. However, when there is a
decline other than temporary in the value of long term investment, the
carrying amount is reduced to recognize the decline.
3) Recognition of Income and Expenditure :
Income and expenses is accounted on accrual basis. Dividend is
accounted for in the year in which the same is received.
4) Taxes on income :
a) Current Tax: Provision for Income Tax is determined in accordance
with the provisions of Income Tax Act, 1961.
b) Deferred Tax Provision: Deferred Tax is recognized on timing
differences being the differences between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period(s). The deferred tax asset is
recognized and carried forward only to the extent that there is a
reasonable certainty that the asset will be realized in future.
5) Miscellaneous Expenditure:
Preliminary Expenses are amortized over period of five years.
6) Borrowing Cost:
Borrowing cost (if any) that are directly attributable to the
acquisition, construction or production of a qualifying asset are
capitalized as part of the cost of that asset. The amount of other
borrowing cost (if any) is recognized as an expense in the period in
which they are incurred.
7) Provisions, Contingent Liabilities and Contingent Assets
Provision are recognized for liabilities that can be measured only by
using substantial degree of estimation, if
1. The company has a present obligation as a results of past event,
2. A probable outflow of resource is expected to settle the obligation
and
3. The amount of the obligation can be reliably estimated
Reimbursement expected in respect of expenditure required to settle a
provision is recognized only when it is virtually certain that the
reimbursement will be received.
Contingent Liability is disclosed in the case of
a. a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation
b. a possible obligation, unless the probability of outflow of
resources is remote. Contingent Assets are neither recognized, nor
disclosed.
Provisions, Contingent Liabilities and Contingent Assets are reviewed
at each Balance Sheet Date.
Mar 31, 2010
1) Basis of Preparation of Financial Statements:
The accounts have been prepared on the historical cost basis and on the
principles of a going concern and also in accordance with the standards
on accounting issued by Institute of Chartered Accountants of India
referred to in section 211 (3C) of the Companies Act , 1956, unless
specifically stated to be otherwise.
Accounting policies, unless specifically stated to be other wise, are
consistent and are in accordance with generally accepted accounting
principles.
2) Investments:
Long Term Investments are stated at cost. However, when there is a
decline other than temporary in the value of long term investment, the
carrying amount is reduced to recognize the decline.
3) Recognition of Income and Expenditure :
Income and expenses is accounted on accrual basis. Dividend is
accounted for in the year in which the same is received.
4) Taxes on Income :
a) Current Tax: Provision for Income Tax is determined in accordance
with the provisions of Income Tax Act, 1961.
b) Deferred Tax Provision: Deferred Tax is recognized on timing
differences being the differences between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period(s). The deferred tax asset is
recognized and carried forward only to the extent that there is a
reasonable certainty that the asset will be realized in future.
5) Miscellaneous Expenditure:
Preliminary Expenses are amortized over period of five years.
6) Borrowing Cost:
Borrowing cost (if any) that are directly attributable to the
acquisition, construction or production of a qualifying asset are
capitalized as part of the cost of that asset. The amount of other
borrowing cost (if any) is recognized as an expense in the period in
which they are incurred.
7) Provisions, Contingent Liabilities and Contingent Assets
Provision are recognized for liabilities that can be measured only by
using substantial degree of estim ation, if
1. The company has a present obligation as a results of past event,
2. A probable outflow of resource is expected to settle the obligation
and
3. The amount of the obligation can be reliably estimated
Reimbursement expected in respect of expenditure required to settle a
provision is recognized only when it is virtually certain that the
reimbursement will be received.
Contingent Liability is disclosed in the case of
a. a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation
b. a possible obligation, unless the probability of outflow of
resources is remote.
Contingent Assets are neither recognized, nor disclosed.
Provisions, Contingent Liabilities and Contingent Assets are reviewed
at each Balance Sheet Date.