Jun 30, 2014
A) Basis of accounting:
The Financial Statements are prepared under historical cost convention,
on accrual basis, in accordance with the generally accepted accounting
principles in India and to comply with the Accounting Standards
prescribed in the Companies [Accounting Standards) Rules, 2006 issued
by the Central Government in exercise of the power conferred under
sub-section (1) (a) of Section 642 and the relevant provisions of the
Companies Ad, 1956 (the "Act:).
All assets and liabilities have been classified as current or
non-current, wherever applicable as per the operating cycle of the
Company as per the guidance as set out in the Revised Schedule VI to
the Companies Act. 1956.
b) Use of estimates:
The preparation of Financial Statements in conformity with 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 the Financial Statements and the results of operations during
the reporting periods. Although these estimates are based upon
management''s knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognised
in the current and future periods.
c) Fixed assets and depreciation:
Fixed Assets are stated at cost of acquisition plus direct costs which
are incidental to acquisition and installation till the assets are
ready for put to use, less accumulated depreciation.
i) The company follows the Straight Line Method of depreciation (SLM)
in the case of Plant & Machinery and written down value method of
depreciation (WDV) in all other remaining assets.
ii) Depreciation is provided on pro-rata basis.
Intangible assets, if any are amortised on straight line basis over a
period of five years, being their estimated useful life.
d) Investments:
Investments are classified as non-current or current, based on
management s intention at the time of purchase Investments that are
readily realisable end intended to be held for not more than a year are
classified as current investments All other investments are classified
as non-current investments
Trade investments are the investments made for or to enhance the
Company''s business interests. Current investments are stated at lower
of cost and fair value determined on an individual investment basis.
Non-current investments are stated at cost and provision for diminution
in their value, other than temporary, is made in the Financial
statements.
e) Inventories:
Raw material, Stores and Packing Materials are valued at lower of cost
or net realizable value, Semi-Finished and finished goods are valued at
lower of cost or estimated net realizable value.
f) Revenue recognition:
Revenue from Sale of goods, if any, is recognized when the sale has
been completed with the passing of title. Turnover represents invoiced
amount of goods end services net of discount, Sales Tax and Excise.
Revenue from Sale of Services, if any, is recognized as the service is
performed and booked based upon arrangements with the concerned parties
Interest income is recognized on time proportion basis, inclusive of
related tax deducted at source.
g) Expenditure:
Expenditure is booked on accrual basis and provision is made for all
known losses and liabilities,
h) Borrowing costs:
Borrowing costs that are attributable to the acquisition and/or
construction of qualifying assets are recognized as part of the cost of
such assets, in accordance with notified Accounting Standard 16
"Borrowing Costs" A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the statement of profit and loss as
incurred.
i) Taxation:
Tax expense for the year comprises current income tax and deferred tax.
Current income tax is determined in respect of taxable income with
deferred tax being determined as the tax effect of timing differences
representing the difference between taxable income and accounting
income that originate in one period, and are capable of reversal in one
or more subsequent period(s). Such deferred tax is quantified using
rates and laws enacted or substantively enacted as at the end of the
financial year.
j) Foreign currency transactions:
i) Transactions in foreign currency, if any, are accounted for ai the
exchange rate prevailing on the date of the transaction. All monetary
items denominated in foreign currency are concerted into Indian rupees
at the year-end exchange rate.
ii) The exchange differences arising on such conversion and on
settlement of the transactions are recognized in the statement of
profit and loss.
k) Employee benefits:
Expenses and liabilities in respect of employee benefits are recorded
in accordance with the notified Accounting Standard 15 - Employee
Benefits.
i) Provident Fund
The Company makes contribution to statutory provident fund, in
accordance with the Employees'' Provident Funds and Miscellaneous
Provisions Act, 1952. In terms of the Guidance on implementing the
revised AS - 15, issued by the Accounting Standards Board of the ICAI.
ii) Gratuity and Accrued leave Salary
Gratuity is a post-employment benefit and is in the nature of a defined
benefit plan. The company has no provision in the books of accounts
regarding accrued leave salary and gratuity (if any), if applicable.
However, the same is taken at the time of payment to employee''s on
retirement or otherwise.
I) Impairment of assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset, if
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to Its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the statement of profit and loss. If at the balance sheet
date there is an indication that a previously assessed Impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reacted at the amount subject to a maximum of depreciated historical
cost and is accordingly reversed in the statement of profit and loss.
m) Contingent liabilities and provisions:
Depending upon the facts of each case and after due evaluation of legal
aspects, claims against the Company are accounted for as either
provisions or disclosed as contingent liabilities In respect of
statutory dues disputed and contested by the Company contingent
liabilities are provided for and disclosed as per original demand
without taking into account any interest or penally that may accrue
thereafter. The Company makes a provision when there is a present
obligation as a result of past event where the outflow of economic
resources is probable and a reliable estimate of the amount of
obligation can be made. Possible future or present obligation that may
but will probably not require outflow of resources or where the same
cannot be reliably estimated, is disclosed as contingent liability in
the Financial Statement.
n) Segment information:
i) Business Segment: The Company is primarily engaged in the business
of manufacture and sale of leaf spring of automobiles.
ii) Geographical Segment: The Company primarily operates in India and
therefore the analysis of geographical segment is based on the areas in
which customers of the Company are located.
o) Earnings per share:
Basic earnings per share is 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. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events including a bonus issue, bonus element in a
rights issue to existing shareholders, share split, and reverse share
split (consolidation of shares).
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. The
period during which, number of dilutive potential equity shares change
frequently, weighted average number of shares are computed based on a
mean date in the quarter, as impact is immaterial on earnings per
share.
Jun 30, 2013
A) Basis of accounting:
The Financial Statements are prepared under historical cost convention,
on accrual basis, in accordance with the generally accepted accounting
principles in India and to comply with the Accounting Standards
prescribed in the Companies (Accounting Standards) Rules, 2006 issued
by the Central Government in exercise of the power conferred under
sub-section (1) (a) of Section 642 and the relevant provisions of the
Companies Act, 1956 (the "Act").
All assets and liabilities have been classified as current or
non-current, wherever applicable as per the operating cycle of the
Company as per the guidance as set out in the Revised Schedule VI to
the Companies Act, 1956.
b) Use of estimates:
The preparation of Financial Statements in conformity with 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 the Financial Statements and the results of operations during
the reporting periods. Although these estimates are based upon
management''s knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognised
in the current and future periods.
c) Fixed assets and depreciation:
Fixed Assets are stated at cost of acquisition plus direct costs which
are incidental to acquisition and installation till the assets are
ready for put to use, less accumulated depreciation.
i) The company follows the Straight Line Method of depreciation (SLM)
in the case of Plant & Machinery and written down value method of
depreciation (WDV) in all other remaining assets.
ii) Depreciation is provided on pro-rata basis.
Intangible assets, if any, are amortised on straight line basis over a
period of five years, being their estimated useful life.
d) Investments:
Investments are classified as non-current or current, based on
management''s intention at the time of purchase. 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 non-current investments.
Trade investments are the investments made for or to enhance the
Company''s business interests. Current investments are stated at lower
of cost and fair value determined on an individual investment basis.
Non-current investments are stated at cost and provision for diminution
in their value, other than temporary, is made in the Financial
statements.
e) Inventories:
Raw material, Stores and Packing Materials are valued at lower of cost
or net realizable value. Semi Finished and finished goods are valued
at lower of cost or estimated net realizable value.
f) Revenue recognition:
Revenue from Sale of goods, if any, is recognized when the sale has
been completed with the passing of title. Turnover represents invoiced
amount of goods and services net of discount, Sales Tax and Excise.
Revenue from Sale of Services, if any, is recognized as the service is
performed and booked based upon arrangements with the concerned parties
Interest income is recognized on time proportion basis, inclusive of
related tax deducted at source.
g) Expenditure:
Expenditure is booked on accrual basis and provision is made for all
known losses and liabilities.
h) Borrowing costs:
Borrowing costs that are attributable to the acquisition and/or
construction of qualifying assets are recognized_ as part of the cost
of such assets, in accordance with notified Accounting Standard 16
"Borrowing Costs". A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use.. All
other borrowing costs are charged to the statement of profit and loss
as incurred.
i) Taxation:
Tax expense for the year comprises current income tax and deferred tax.
Current income tax is determined in respect of taxable income with
deferred tax being determined as the tax effect of timing differences
representing the difference between taxable income and accounting
income that originate in one period, and are capable of reversal in one
or more subsequent period(s). Such deferred tax is quantified using
rates and laws enacted or substantively enacted as at the end of the
financial year.
j) Foreign currency transactions:
i) Transactions in foreign currency, if any, are accounted for at the
exchange rate prevailing on the date of the transaction. All monetary
items denominated in foreign currency are converted into Indian rupees
at the year-end exchange rate.
ii) The exchange differences arising on such conversion and on
settlement of the transactions are recognized in the statement of
profit and loss.
k) Employee benefits:
Expenses and liabilities in respect of employee benefits are recorded
in accordance with the notified Accounting Standard 15 - Employee
Benefits.
i) Provident fund
The Company makes contribution to statutory provident fund, in
accordance with the Employees'' Provident Funds and Miscellaneous
Provisions Act, 1952. In terms of the Guidance on implementing the
revised AS - 15, issued by the Accounting Standards Board of the ICAI,
ii) Gratuity and Accrued leave Salary
Gratuity is a post-employment benefit and is in the nature of a defined
benefit plan. The company has no provision in the books of accounts
regarding accrued leave salary and gratuity (if any), if applicable.
However, the same is taken at the time of payment to employee''s on
retirement or otherwise.
I) Impairment of assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the statement of profit and loss. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
re ected at the recoverable amount subject to a maximum of depreciated
historical cost and is accordingly reversed in the statement of profit
and loss.
m) Contingent liabilities and provisions:
Depending upon the facts of each case and after due evaluation of legal
aspects, claims against the Company are accounted for as either
provisions or disclosed as contingent liabilities. In respect of
statutory dues disputed and contested by the Company, contingent
liabilities are provided for and disclosed as per original demand
without taking into account any interest or penalty that may accrue
thereafter. The Company makes a provision when there is a present
obligation as a result of past event where the outflow of economic
resources is probable and a reliable estimate of the amount of
obligation can be made. Possible future or present obligation that may
but will probably not require outflow of resources or where the same
cannot be reliably estimated, is disclosed as contingent liability in
the Financial Statement.
n) SEGMENT INFORMATION:-
i) Business Segment". The Company is primarily engaged in the business
of manufacture and sale of leaf spring of automobiles. ii)
Geographical Segment: The Company primarily operates in India and
therefore the analysis of geographical segment is based on the areas in
which customers of the Company are located.
o) Earnings per share:
Basic earnings per share is 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. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events including a bonus issue, bonus element in a
rights issue to existing shareholders, share split, and reverse share
split (consolidation of shares).
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. The
period during which, number of dilutive potential equity shares change
frequently, weighted average number of shares are computed based on a
mean date in the quarter, as impact is immaterial on earnings per
share.
Jun 30, 2012
A) RECOGNITION OF INCOME & EXPENDITURE.
The accounts of the Company are Prepared on the Historical Cost
Convention using accrual method of accounting.
b) FIXED ASSETS:-
Fixed assets are recorded at cost of acquisition inclusive of related
expenses there on towards putting the assets into use.
c) INVESTMENTS:-
Investments are stated at cost.
d) DEPRECIATION:-
i) The company follows the Straight Line Method of depreciation (SLM)
in the case of Plant & Machinery and written down value method of
depreciation (WDV) in all other remaining assets.
ii) Depreciation is provided on pro-rata basis.
e) INVENTORIES:-
Raw material, Stores and Packing Materials are valued a lower of cost
or net realizable value Semi Finished and finished goods are valued at
lower of cost or estimated net realizable value.
f) RETIREMENT BENEFIT:-
The company has no provision in the books of account regarding accrued
leave salary and Gratuity. However this been taken on the time of
Payment to employee''s at the time of retirement.
g) FOREIGN CURRENCY TRANSACTION:
i) All foreign currency assets and liabilities, if any, as at the
Balance Sheet date are stated at the applicable exchange rates
prevailing at that date.
ii) Transaction completed during the year accounted for at the
prevailing rates.
h) EXPORT BENEFITS
Export benefits are accounted for on cash basis.
i) SEGMENT INFORMATION:-
i) Business Segment: The Company is primarily engaged in the business
of manufacture and sale of leaf spring of automobiles.
ii) Geographical Segment. The Company primarily operates in India and
therefore the analysis of geographical segment is based on the areas in
which customers of the Company are located.
j) IMPAIRMENT OF ASSETS:-
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amount. Recoverable amount is the higher of
an asset''s net selling price or its value in use. Value in use is the
present value of estimated future cash flow expected to arise from the
continuing use of an assets and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from the sale
of an asset in an arm''s length transaction between knowledgeable
willing parties, less the cost of the disposal.
k) CONTINGENT LIABILITIES:-
Unprovided contingent liabilities are disclosed in the accounts by way
of notes giving nature and quantum of such liabilities.
Jun 30, 2011
1. Recognition of Income & Expenditure
The accounts of the Company are prepared on the Historical Cost
Convention using accrual method of accounting.
2. FIXED ASSETS:-
Fixed assets are recorded at cost of acquisition inclusive of related
expenses there on towards putting the assets into use.'
3. INVESTMENTS:-
Investments are stated at cost. 4. DEPRECIATION:- a) The company
follows the Straight Line Method of depreciation (SLM) in the case of
Plant & Machinery and written down value method of depreciation (WDV)
in all other remaining assets. b) Machinery depreciation is provided
on pro-rata basis.
5. INVENTORIES:- Raw material, Stores and Packing Materials are valued
at lower of cost or net realizable value. Semi Finished and finished
goods are valued at lower of cost or estimated net realizable value.
5. RETIREMENT BENEFIT:-
The company has no provision in the books of account regarding accrued
leave salary and Gratuity. However this been taken on the time of
payment to employee's at the time of retirement or otherwise.
6. FOREIGN CURRENCY TRANSACTION;-
a) All foreign currency assets and liabilities, if any, as at the Balance
Sheet date are stated at the applicable exchange rates prevailing at that date.
b) Transaction completed during the year accounted for at the
prevailing rates.
7. EXPORT BENEFITS :- Export benefits are accounted for on cash basis.
8. SEGMENT INFORMATION:-
a) Business Segment: The Company is primarily engaged in the business
of manufacture and sale of Leaf Springs of automobiles.
b) Geographical Segment: The Company primarily operates in India and
therefore the analysis of geographical segment is based on the areas in
which Customers of the Company are located.
9. IMPAIRMENT OF ASSETS;-
Impairment loss is provided to the extent the carrying amount of,
assets exceeds their recoverable amount. Recoverable amount is the
higher of. an asset's net selling price or its value in use. Value in
use is the present value of estimated future cash flow expected to
arise from the continuing use of an assets and from its disposal at the
end of its useful life. Net selling price is the amount obtainable from
the sale of an asset in an arm's length transaction between
knowledgeable willing parties, less the cost of the disposal.
10. CONTINGENT.LIABILITIES:- ' .
Un provided contingent liabilities are disclosed in the accounts by way
of notes giving nature and quantum of such liabilities.
Mar 31, 2010
1. Recognition of Income & Expenditure
The accounts of the Company are prepared on the Historical Cost
Convention using accrual method of accounting.
2. FIXED ASSETS:-
Fixed assets are recorded at cost of acquisition inclusive of related
expenses there on towards putting the assets into use.
3. INVESTMENTS:-
Investments are stated at cost.
4. DEPRECIATION:-
a) The company follows the Straight Line Method of depreciation (SLM)
in the case of Plant & Machinery and written down value method of
depreciation (WDV) in all other remaining assets.
b) Machinery depreciation is provided on pro-rata basis.
5. INVENTOR1ES:-
Raw material, Stores and Packing Materials are valued at lower of cost
or net realizable value. Semi Finished and finished goods are valued
at lower of cost or estimated net realizable value.
6. RETIREMENT BENEFIT:-
The company has no provision in the books of account regarding accrued
leave salary and Gratuity. However this been taken on the time of
payment to employees at the time of retirement or otherwise.
7. IMPAIRMENT OF ASSETS:-
Impairment loss is provided to the extent the carrying-amount of assets
exceeds their recoverable amount. Recoverable amount is the higher of
an assets net selling price or its value in use. Value in use is the
present value of estimated future cash flow expected to arise from the
continuing use of an assets and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from the sale
of an. asset in an arms length transaction between knowledgeable
willing parties, less the cost of the disposal.
8. CONTINGENT LIABILITIES:-
Unprovided contingent liabilities are disclosed in the accounts by way
of notes giving nature and quantum of such liabilities.