Mar 31, 2015
(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The Financial Statements have been prepared and presented under the
historical cost convention, in accordance with the accounting
principles generally accepted in India and in accordance with the
applicable Accounting Standards, Guidance Notes and the relevant
provisions of the Companies Act, 2013.
(b) USE OF ESTIMATES:
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires the Management to
make estimates and assumptions that affect the reported amounts of
Assets and Liabilities and the disclosure of contingent liabilities on
the date of Financial Statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognized in the period in which the results
are known / materialized.
(c) REVENUE RECOGNITION:
a. Sales are accounted on dispatch of products to customers.
b. Revenues / Incomes and Costs / Expenditure are generally accounted
on accrual, as they are earned or incurred.
(d) FIXED ASSETS AND DEPRECIATION:
a) Premium on leasehold land is amortized over the period of lease.
b) Depreciation is provided on Fixed Assets as under:
i) In respect of Buildings and Plant & Machinery - on straight line
basis in accordance with Section 133 of the Companies Act, 2013, at the
rates specified in Schedule II to the Companies Act, 2013.
ii) In respect of all other Fixed Assets - on written down value basis
in accordance with Section 133 of the Companies Act, 2013, at the rates
specified in Schedule II to the Companies Act, 2013.
iii) In respect of additions to/deletions from the Fixed Assets on
pro-rata basis with reference to the date of addition/deletion of the
Asset.
Fixed Assets are stated at cost less Depreciation/Amortization. The
Depreciation shown in Fixed Assets Schedule has been provided up to
Financial Year ending on 31st March, 2000. In subsequent Financial
Years- 1st April, 2000 till 31st March, 2015 no depreciation has been
provided.
(e) INVENTORIES:
Stock of stores, spares, packing materials, coal, color and chemicals
and raw materials are valued after considering deterioration of quality
and damage of raw materials, color, chemicals, stores & spares, packing
materials and coal have been written off on estimated basis. Finished
goods are valued at lower of cost or net realizable value
(f) BORROWING COSTS:
Interests and other borrowing costs attributable to qualifying Assets
are allocated as part of the cost of construction / development of such
assets. Such allocation is suspended during extended periods in which
active development is interrupted and, no costs are allocated once all
such activities are substantially completed. Other borrowing costs are
charged to the Profit and Loss Account.
(g) TAXATION:
Income tax expense comprises Current Tax and Deferred Tax charge or
credit. Provision for Current Tax is made on the basis of the
assessable income at the tax rate applicable to the relevant Assessment
Year.
The Deferred Tax Asset and Deferred Tax Liability is calculated by
applying tax rate and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets are recognized,
only if there is a virtual certainty of its realization, supported by
convincing evidence. At each Balance Sheet date, the carrying amounts
of deferred tax assets are reviewed to reassure realization as per
Accounting Standard 22 " Accounting for taxes on Income" issued by the
Institute of Chartered Accountants of India.
(h) IMPAIRMENT OF ASSETS:
The carrying amount of Assets is reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal/external
factors, i.e. when the carrying amount of the Assets exceeds the
recoverable amount, an impairment loss is charged to the Profit and
Loss Account in the year in which an Asset is identified as impaired.
An impairment loss recognized in prior accounting periods is reversed
or reduced if there has been a favorable change in the estimate of the
recoverable amount.
(I) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
a) A provision is recognized, if as a result of past event, the Company
has a present legal obligation that can be measured reliably and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability.
b) A disclosure for Contingent Liability is made when there is possible
obligation or a present obligation that may, but probably will not,
require outflow of resources. Where there is a possible obligation or
present obligation where likelihood of outflow is remote, no provision
or disclosure is made.
c) Contingent Assets are neither recognized nor disclosed in the
Financial Statements.
(j) LEASED ASSETS:
Rentals and all other expenses in respect of Leased Assets are treated
as revenue expenditure.
(k) TREATMENT OF EXPENDITURE DURING CONSTRUCTION /EXPANSION PERIOD:
a. Expenditure during construction / expansion period are included
under capital work in progress and the same is allocated to the
respective Fixed Assets on the completion of construction/trial run
period.
b. Interest on borrowing for financing the acquisition of new Fixed
Assets is capitalized till the completion of the project.
Mar 31, 2014
(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The Financial Statements have been prepared and presented under the
historical cost convention, in accordance with the accounting
principles generally accepted in India and in accordance with the
applicable Accounting Standards, Guidance Notes and the relevant
provisions of the Companies Act, 1956 / Companies Act, 2013 ("new
Act").The Company has not sold substantial part of the fixed assets
during the year so the Balance Sheet has been prepared on going concern
concept.
(b) USE OF ESTIMATES:
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires the Management to
make estimates and assumptions that affect the reported amounts of
Assets and Liabilities and the disclosure of contingent liabilities on
the date of Financial Statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognized in the period in which the results
are known / materialized.
(c) REVENUE RECOGNITION:
a. Sales are accounted on dispatch of products to customers.
b. Revenues / Incomes and Costs / Expenditure are generally accounted
on accrual, as they are earned or incurred.
(d) FIXED ASSETS AND DEPRECIATION:
a) Premium on Leasehold land is amortized over the period of lease.
b) Depreciation is provided on Fixed Assets as under:
i) In respect of Buildings and Plants Machinery-on straight line basis
in accordance with Section 205(2)(b) of the Companies Act, 1956 /
Section 133 of the New Act, at the rates specified in Schedule XIV to
the Companies Act, 1956, as revised by Notification No.GSR
756(E)dt.16.12.1993 of the Dept. of Company Affairs.
ii) In respect of all other Fixed Assets - on written down value basis
in accordance with Section 205(2)(a)of the Companies Act, 1956 /
Section 133 of the New Act at the rates specified in Schedule XIV to the
Companies Act, 1956, as revised by the Notification.
iii) In respect of additions to/deletions from the Fixed Assets on
pro-rata basis with reference to the date of addition / deletion of the
Asset.
Fixed Assets are stated at cost less depreciation/amortization. The
Depreciation shown in Fixed Assets Schedule has been provided up to
Financial Year ending on 31st March, 2000. In subsequent Financial
Years- 1st April, 2000 till 31st March, 2014 no depreciation has been
provided.
(e) INVENTORIES:
Stock of stores, spares, packing materials, coal, color and Chemicals
and raw materials are valued after considering deterioration of quality
and damage of raw materials, color & chemicals stores & spares, packing
materials and coal have been written off on estimated basis. Finished
goods are valued at lower of cost or net realizable value.
(f) BORROWING COSTS:
Interests and other borrowing costs attributable to qualifying assets
are allocated as part of the cost of construction / development of such
assets. Such allocation is suspended during extended periods in which
active development is interrupted and, no costs are allocated once all
such activities are substantially complete. Other borrowing costs are
charged to the Profit and Loss Account.
(g) TAXATION:
Income tax expense comprises Current Tax and Deferred Tax charge or
credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant Assessment
Year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets are recognized,
only if there is a virtual certainty of its realization, supported by
convincing evidence. At each Balance Sheet date, the carrying amounts
of deferred tax assets are reviewed to reassure realization as per
Accounting Standard 22 " Accounting for taxes on Income" issued by the
Institute of Chartered Accountants of India.
(h) IMPAIRMENT OF ASSETS:
The carrying amount of assets is reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal/external
factors, i.e. when the carrying amount of the assets exceeds the
recoverable amount, an impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
An impairment loss recognised in prior accounting periods is reversed
or reduced if there has been a favorable change in the estimate of the
recoverable amount.
(i) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
a) A provision is recognized, if as a result of past event, the Company
has a present legal obligation that can be measured reliably and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability.
b) A disclosure for Contingent Liability is made when there is possible
obligation or a present obligation that may, but probably will not,
required outflow of resources. Where there is a possible obligation or
present obligation where likelihood of outflow is remote, no provision
or disclosure is made.
c) Contingent assets are neither recognized nor disclosed in the
Financial Statements.
(j) LEASED ASSETS:
Rentals and all other expenses in respect of leased assets are treated
as revenue expenditure.
(k) TREATMENT OF EXPENDITURE DURING CONSTRUCTION /EXPANSION PERIOD:
a. Expenditure during construction / expansion period are included
under capital work in progress and the same is allocated to the
respective Fixed Assets on the completion of construction/trial run
period.
b. Interest on borrowing for financing the acquisition of new fixed
assets is capitalized till the completion of the project.
Mar 31, 2012
1) Basis of Preparation of Financial Statements:
The financial statements have been prepared and presented under the
historical cost convention, in accordance with the accounting
principles generally accepted in india and in accordance with the
applicable Accounting Standards, Guidance Notes and the relevant
provisions of the Companies Act, 1956.
2) Use of Estimates:
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent liabilities on
the date of financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognized in the period in which the results
are known / materialized.
3) Revenue Recognition:
a) Sales are accounted on dispatch of products to customers.
b) Revenues / Incomes and Costs / Expenditure are generally accounted
on accrual, as they are earned or incurred.
4) Fixed Assets and Depreciation:
a) Premium on Leasehold land is amortized over the period of lease.
b) Depreciation is provided on Fixed Assets as under:
i) In respect of Buildings and Plant & Machinery - on straight line
basis in accordance with Section 205(2)(b) of the Companies Act, 1956,
at the rates specified in Schedule XIV to the Companies Act, 1956, as
revised by Notification No. GSR 756(E) dt. 16.12.1993 of the Dept. of
Company Affairs.
ii) In respect of all other Fixed Assets - on written down value basis
in accordance with Section 205(2)(a) of the Companies Act, 1956 at the
rates specified in Schedule XIV to the Companies Act, 1956, as revised
by the notification.
iii) In respect of additions to/deletions from the Fixed Assets on
pro-rata basis with reference to the date of addition deletion of the
Asset.
Fixed assets are stated at cost less depreciation/ amortization. The
depreciation shown in Fixed Assets Schedule has been provided up to
Financial Year ending on 31st March, 2000. In subsequent Financial
Years - 1st April, 2000 till 31st March, 2012 no depreciation has been
provided.
5) Inventories:
Stock of stores, spares, packing materials, coal, color and chemicals
and raw materials are valued after considering deterioration of quality
and damage of raw materials, color & chemicals stores & spares, packing
materials and coal have been written off on estimated basis. Finished
goods are valued at lower of cost or net realizable value.
6) Borrowing Costs:
Interests and other borrowing costs attributable to qualifying assets
are allocated as part of the cost of construction / development of such
assets. Such allocation is suspended during extended periods in which
active development is interrupted and, no costs are allocated once all
such activities are substantially complete. Other borrowing costs are
charged to the Profit and Loss Account.
7) Taxation:
Income tax expense comprises Current Tax and Deferred Tax charge or
credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year.
The deferred tax asset and deferred tax liability is calculated by
applying tax rate and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets are recognized,
only if there is a virtual certainty of its realization, supported by
convincing evidence. At each Balance Sheet date, the carrying amounts
of deferred tax assets are reviewed to reassure realization as per
Accounting Standard 22 "Accounting for taxes on Income" issued by the
institute of chartered accountants of india.
8) Impairment of Assets:
The carrying amount of assets is reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal/external
factors, i.e. when the carrying amount of the assets exceeds the
recoverable amount, an impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
An impairment loss recognised in prior accounting periods is reversed
or reduced if there has been a favorable change in the estimate of the
recoverable amount.
9) Provisions, Contingent Liabilities and Contingent Assets:
a) A provision is recognized, if as a result of past event, the Company
has a present legal obligation that can be measured reliably and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability.
b) A disclosure for Contingent Liability is made when there is possible
obligation or a present obligation that may, but probably will not,
required outflow of resources. Where there is a possible obligation or
present obligation where likelihood of outflow is remote, no provision
or disclosure is made.
c) Contingent assets are neither recognized nor disclosed in the
financial statements.
10) Leased Assets:
Rentals and all other expenses in respect of leased assets are treated
as revenue expenditure.
11) Treatment of Expenditere During Construction /Expansion Period:
a) Expenditure during construction / expansion period are included
under capital work in progress and the same is allocated to the
respective fixed assets on the completion of construction/trial run
period.
b) Interest on borrowing for financing the acquisition of new fixed
assets is capitalized till the completion of the project.
1. Since the plant was not in operation during the year:
i. No depreciation has been provided on Fixed Assets. (Previous year -
NIL).
ii. No provision for Income Tax has been made for the Current Financial
Year due to carried forward of losses and accumulated Depreciation and
as per the provisions of Section 115JB (Minimum Alternate Tax) of
Income Tax Act, 1961 as applicable to Profit of Sick Industrial
Company.
iii. Deferred tax liability:
In accordance with Accounting Standard 22 "Accounting for taxes on
Income" (AS 22) issued by the Institute of Chartered Accountants of
India, deferred tax assets and liability should be recognized for all
timing differences in accordance with said standards. However,
considering the present financial position and requirement of the
Accounting Standard regarding certainty/virtual certainty, the same is
not provided for as an asset (net). However, the same will be
reassessed at a subsequent Balance Sheet date and will be accounted for
in the year of certainty/virtual certainty in accordance with the
aforesaid Accounting Standard.
Mar 31, 2010
I. Basis Of Accounting :
(a) The Company follows the Mercantile System of accounting and
recognizes income and expenditure on accrual basis.
(b) Financial statements are based on historical cost. The costs are
not adjusted to reflect the impact of the changing value in the
purchasing power of money.
II: Fixed Assets :
Fixed Assets are stated at cost less depreciation / amortization. The
Depreciation shown in Fixed Assests Schedule has been provided upto
Financial Year ending on 31st March, 2000. In subsequent Financial Year
1st April, 2000 till 31" March, 2010 no depreciation has been provided.
III. Depreciation:
(a) Premium on Leasehold land is amortised over the period of lease.
(b) Depreciation is provided on Fixed Assets as under:
i) In respect of Buildings and Plant & Machinery - on straight line
basis in accordance with Section 205(2)(b) of the Companies Act, 1956,
at the rates specified in Schedule XIV to the Companies Act, 1956, as
revised by Notification No.GSR 756(E)dt.16.12.1993 of the Dept. of
Company Affairs.
ii) In respect of all other Fixed Assets - on written down value basis
in accordance with Section 205(2)(a) of the Companies Act, 1956 at the
rates specified in Schedule XIV to the Companies Act, 1956, as revised
by the notification.
iii) In respect of additions to / deletions from the Fixed Assets on
pro-rata basis with reference to the date of addition deletion of the
Asset.
IV. Inventories:
Stock of stores, spares, packing materials, coal, colour & Chemicals
and raw materials are valued after considering deterioration of quality
and damage of raw materials, colour & chemicals stores & spares,
packing materials and coal have been written off on estimates basis.
Finished goods are valued at lower of cost or net realizable value.
V. Gratuity:
Annual contribution towards the gratuity liability is funded with Life
Insurance Corporation of India in accordance with Gratuity Scheme.
VI. Leased Assets :
Rentals and all other expenses in respect of leased assets are treated
as revenue expenditure.
VII. Treatment of expenditure during construction / expansion period:
(a) Expenditure during construction / expansion period are included
under capital work in progress and the same is allocated to the
respective. Fixed Assets on the completion of construction / trial run
period.
(b) Interest on borrowing for financing the acquisition of new fixed
assets is capitalised till the completion of the project.
VIII. Sales, Raw materials consumed, Actual production, value of
Imports, Expenditures on Foreign currency, value of Raw materials,
Spares and other consumables and Managerial Remuneration are nil.
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