Mar 31, 2015
1. Accounting Convention
The financial statements are prepared to comply in all material aspects
with all the applicable accounting principles and applicable accounting
standards, notified u/s 211 (3C) of the Companies Act, 1956 read with
General Circular 15/2013 dated 13 September, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act 2013
and the relevant provisions of the Companies Act, 1956/2013 Act, as
applicable. The financial statements have been prepared on accrual
basis in accordance with the historical cost convention. The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year,
2. Use of Estimates
The preparation of the financial statements 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 estimates
and differences between actual results and estimates are recognized in
the periods in which the results are known/materialize.
3. Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity value of
three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and
which are subject to insignificant risk of changes in value.
4. Cash Flow Statement
Cash flows are reported using indirect method, whereby profit/(loss)
before extraordinary items and tax is adjusted tor the effects of
transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the company are segregated based
on the available information For the purpose of Cash Flow statement,
cash and cash equivalents includes fixed deposits which are freely
remissible but excludes interest accrued on fixed deposits.
5. Fixed Assets and Depreciation
Tangible Assets are carried at cost of acquisition including freight,
duties, taxes and incidental expenses until the fixed assets are ready
to put to use less accumulated depreciation, Impairment loss, if any,
ascertained as per the Accounting Standard of the Companies (Accounting
Standards) Rules. 2006 is recognized.
Depreciation on Fixed Assets is provided under the Straight Line Method
at the rates provided by schedule XIV to the Companies Act. 1956.
Depreciation on additions during the year is being calculated on pro
rata basis.
6. Revenue Recognition
The Company follows the mercantile system of accounting and recognizes
income and expenditure on accrual basis.
Dividend income is recognized when the right to receive payment is
established.
Interest income is recognized on time proportion basis taking into
account the amount outstanding and rate applicable.
7. Investments
Investments wherever readily realizable and intended to be held no!
more than one year from the date of such investments are made, are
qualified as current investments. Current investments are carried at
lower of cost and quoted/fair value, computed category- wise.
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary.
8. Employee benefits
Employee benefits of short term nature are recognized as expenses as
and when it accrues. Gratuity liability is a defined obligation. The
company pays gratuity to employees who retire or resign after a minimum
period of five years of continuous service.
9. Earnings per share
Basic earnings per share is computed by dividing the profit/ (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year Diluted earnings per share is computed by dividing the profit/
(loss) after tax (including the post tax effect of extraordinary items,
if any) as adjusted for dividend, interest and other charges to expense
or income relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares
which could have been issued on the conversion of all dilutive
potential equity shares.
Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share
from continuing ordinary operations. Potential dilutive equity shares
are deemed to be converted as at the beginning of the period, unless
they have issued at a later data.
10. Taxes on Income
Current tax is determined as the amount of lax payable in respect of
taxable income for the year Credit in respect of Minimum Alternate Tax
paid is recognized only if there is convincing evidence of realization
of the same.
Deferred Tax, which is computed on the basis of enacted/ substantively
enacted rates, is recognized on timing differences, being the
difference between taxable incomes and accounting income that originate
in one period and are capable of reversal in one or more subsequent
period. Where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognized only if there is virtual certainly
of realization of such assets. Other deferred tax assets are recognized
only to the extent there is reasonable certainty of realization in
future.
11. Impairment
At each Balance Sheet date, the management reviews the carrying amounts
of each cash generating unit to determine whether there is any
indication that those assets were impaired If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset's net selling price use in the estimated future cash
flows expected from the continuing use of the asset and from its
disposal are discounted to their present value using a pre-tax discount
rate that reflects the current market assessments of time value of money
and the risks specific to the asset Reversal of impairment loss is
recognized as income in the statement of profit and loss
12. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
13. Contingent Liabilities
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
or one or more uncertain future events, not wholly within the control
of the company, or where any present obligation cannot be measured in
terms of future outflow resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis
and only those having a largely probable outflow of resources are
provided for. Contingent Assets are not recognized in the financial
statements.
Mar 31, 2013
1. Accounting Convention
The financial statements are prepared to comply in all material aspects
with all the applicable accounting principles and applicable accounting
standards, notified u/s 211(3C) of the Companies Ad. 1956 and the
relevant provisions of the Ad, 1956.The financial siaiementa have been
prepared in accordance with the historical chit convention.
The presentation of the accounts is based on the revised Schedule VI of
the Companies Ad. 1956. Accordingly previous year figures are
realigned to make it comparable with current year AH assets and
liabilities are classified into current and non-current generally based
on criteria of realisation/settlement month's period from tna Balance
Sheet date.
2. 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 tne
year. The Management believes that tbo estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to estimates and differences between actual resorts
and estimates are recognized in the periods in which the results are
known/meterialize.
3. Inventories
Inventories are valued at cost ox net reatzable value whichever is
lower. Cost of inventories is computed On the FireMn-Firat-Gul (FIFO)
basis.
4. Cash and Caah Equivalents
Cash campuses cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an origins' maturity value of
three months or toss from the date of acquisition), highly liquid
investments that ere readily convertible inlo known amounts of cash and
which ere subject to insignificant risk of changes in value.
5. Cash Flow Statement
Caan flows are reported using indirect method, whereby prcfit/(lMS)
before extraordinary Heme and tax is adjusted for the effects of
transactions of non-cash nature end any deferrals or accruals of past
dr future cash receipts or payments. The cash flows from operating,
investing and financing activities ol the company die segregated based
on the available mfannalion. For the purpose of Cash Flow statement,
cash and cash equivalents includes fixed deposits which are freely
remissible hut excludes interest accrued on fixed deposits
6. Fixed Assets end Depreciation
Tangible Assets are carried at cost of acquisition Including freight,
duties, taxes arid incidental until the fated assets are ready to put to
use less accumulated depreciation. Impairment ascertained as per Hie
Accounting Standard of the Companies (Accounting Standards) Rules, 2006
is recognized.
Depreciation on Fixed Assets is provided under the Straight Une Method
at the rales provided by schadule XiV to the Companies Act, 1956
Depreciation on additions during the year is being calculated on pro
rate basis.
7. Revenue Recognition
The Company follows the mercantile system of accounting and recognizes
income and expenditure an accrual basis.
Dividend income is recognized when the right to receive payment is
established.
Interest income is recognized on lime proportion basis taking into
account the amount outstanding and rate applicable.
8. Investments
Investments wherever readily realizable and intended to be held not
more than one year from the date of such investments are made, are
qualified as currant investments. Current investments are earned at
lower of cosi and quotod/fair value, computed category- wise.
Long term investments are stated at ctrel. Provision for diminution in
the value of king term investments is made only if such a detime is
other than temporary.
9. Employee benefits
Employee benefits of short term nature are recognized as expenses as
and when it accrues. Gratuity liability is a defined obligation. The
company pays gratuity to employees who retire or resign after a minimum
period Of five years of continuous service.
10. Earnings per share
Basic earnings per share is computed by dividing thd profit/ (loss)
after lax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
Ilia year. Diluted earnings per share is computed by dividing vie
profit/ (toss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend, interest and
other change* to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares
considered for deriving ba earnings per share and the weighted
average number of equity shares which could have been issued on the
conversion of all diutive potential equity shares.
Potential equity shares are deemed Ip be dilutive only if their
conversion to equity shares would decrease the net profit per share
from continuing ordinary operations, Potential dilutive equity shares
are deemed to be converted as at the beginning of the period, unless
they have issued at a later data
11. Taxes on income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Credit fn respect of Minimum Alternate Tax
paid is recognized only if there is convincing evidence of realization
of the same.
Deferred Tax, which is computed on the basis of enacted/ substantively
enacted rates, is recognized on timing differences, being the
difference between taxable incomes and accounting inj^rtfirmSiojioinate
in one period and are capable of reversal in one or more subsequent
period. WhffMttEeHti^ebwrbad . depreciation or carry forward tosses,
deferred tax assets are recognized only itffime/is virtual of
realization of such assets, Qlher deferred rax assets are recognized
only to the extent there is reasonable certainty of realization in
future.
12. Impairment
At eaih Balance Sheet dale, the management reviews the carrying amounts
of each cash generating unit to determine whether there is any
indication that those assets were impaired. If any such indication
exists, Ihe recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an assets net selling price use- In assessing value in use,
the estimated future cash flows expected from ihe continuing use of the
asset and from its disposal are discounted lo their present value using
a pre-tax discount rate that reflects the current market assessments of
time value of money and ihe risks specific to the asset.
Reversal of impairment loss is recognized as income In the statement of
profit and loss
13. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required lo settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required lo settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted lo reflect the current best estimates.
14, Contingent Liabilities
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
or one or more uncertain future events, no! wholly with the control of
the company, or where any present obligation cannot be measured in
terms of future outflow resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis
and only those having a largely prebeWe outflow of resources are
provided for. Contingent Assets are not recognized in the financial
statements.
Mar 31, 2012
1. Basis of accounting and preparation of financial statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 1956 (''the Act''),
and'' the accounting principles generally accepted in India and comply
with the accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 issued by the Central Government, in
consultation with the National Advisory Committee on Accounting
Standards, to the extent applicable.
The Revised Schedule VI has become effective from 1 April, 2011 for the
preparation of financial statements. This has significantly impacted
the disclosure and presentation made in the financial statements.
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
2. 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 recognized in the periods in which
the results are known / materialize.
3. Inventories
Inventories are valued at cost as per FIFO basis.
4. Cash and cash equivalents
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
5. Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information. For the purpose of Cash
Flow Statement, cash and cash equivalents includes fixed deposits which
are freely remissible but excludes interest accrued on fixed deposits.
6. Depreciation and; amortization
Depreciation has been provided on die straight-line method as per the
rates prescribed in Schedule XTV to the Companies Act, 1956.
Depreciation on addition to fixed assets is provided on a pro-rata
basis from the date of addition.
7. Revenue recognition
Revenue and cost are generally accounted on accrual basis as they are
earned/incurred, except in case of , significant uncertainties.
- Dividend is accounted when the right to receive payment is
established.
- Interest and other income is accounted on accrual basis.
8. Fixed assets
Tangible assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed, assets,
includes-in treason borrowings attributable-to acquisition of qualifying
fixed assets up to the date the asset is ready for its intended use and
otber incidental expenses incurred up to that date.
9. Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
10. Employee benefits
Employee benefits of short term nature are recognized as expenses as
and when it accrues. Gratuity liability is a defined obligation. The
company pays gratuity to employees who retire or resign after a minimum
period of five years of continuous service.
11. Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the
profit / (loss) tax (including the post tax . effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which- could: have been issued on the conversion of all dilutive
potential equity shares.
Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share
from continuing ordinary operations. Potential dilutive equity shares
are deemed to be converted as at the beginning of the period, unless
they have been issued at a later AtE-
12. Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognized as an asset in the. Balance Sheet when it is probable
that future economic benefit associated with it will flow to the
Company- Deferred tax is recognized on timing differences, being the
differences between the taxable income and the accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and
the tax laws enacted or substantially enacted as. at the reporting
date. Deferred tax liabilities are recognized for all timing
differences. Deferred tax assets r Âin Respect of Âun aborted
Depreoiatiorr and "carry forward of losses are recognized "only if
"there is virtual certainty that there will be sufficient future
taxable income available to realize such assets. Deferred tax assets
are recognized for timing differences of other items only to the extent
that reasonable certainty exists that sufficient future taxable income
will be available against which these can be realized. Deferred tax
assets and liabilities are offset if such items relate to taxes on
income levied by the same governing tax laws and the Company has a
legally enforceable right for such set off. Deferred tax assets are
reviewed at each Balance Sheet date for their readability.
13. Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognized, if the carrying amount of these assets
exceeds their recoverable amount.- The recoverable amount is the
greater of the net selling price and their value in use. Value in use
is arrived at by discounting the future cash flows to their present
value based on an appropriate discount factor. When there is indication
that an impairment loss recognized for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognized in the Statement of Profit and Loss,
except in case of revalued assets.
14. Provision and Contingencies
A provision is recognized when the Company has a present obligation as
a result of past events and 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 (excluding retirement
benefits) are not discounted to their present value and are determined
based on the 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. Contingent liabilities
are disclosed in the Notes.
15. Miscellaneous Expenditure
The Company has changed Its policy of amortizing preliminary
expenditures. Earlier it had been amortizing preliminary expenditure
over a period of ten years, and continued such policy till 4th year.
Now it has been amortizing such expenditure over a period of five years
and accordingly the rest of the unamortized amount has been amortized
in the current financial year i.e., 5th year.
Mar 31, 2010
A. Basis of Preparation of Financial Statements
i. The Financial Statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and provisions of the Companies Act, 1956 and comply with
the Accounting Standards referred to in sub section (3C) of Section 211
of the Companies Act, 1956.
ii. Recognition of Income and Expenditure
The Company follows the accrual basis of accounting.
b. Fixed Assets
Fixed Assets are accounted at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to working condition for its intended use.
c. Depreciation
i. Depreciation on fixed assets is provided on the Straight Line Method
at the rates specified in Schedule XIV of the Companies Act, 1956.
ii. Depreciation on additions / deductions of assets during the year
is provided on a pro-rata basis.
d. Inventories
Inventories are valued at cost as per FIFO method.
e. Investments
Investments are classified into current and long term investments.
Current investments are stated at lower of cost or market value. Long
term in vestments are stated at cost, less any provision for permanent
diminution in value.
f. Miscellaneous Expenditure
1/10th of Preliminary expenses have been written off every year.
g. Contingent Liabilities
These are disclosed by way of Notes forming part of Accounts. Provision
is made in the accounts in respect of those liabilities which are
likely to materialise after the period end, till the finalisation of
accounts and have material effect on the position stated in the Balance
Sheet.
h. Retirement Benefits
The liability of gratuity & other benefits to employees is accounted in
the year in which payment is made.
i. Purchases
Purchases are stated net of discounts, VAT and rate difference.
j. Sales
Sales exclude Sales Tax, VAT and adju sted for discounts to the
customers.
k. Deferred Taxation
Provision for tax is made by applying the applicable tax rates and the
tax laws. Deferred tax assets and liabilities arising on account of
timing differences, which are capable of reversal in one or more
subsequent periods, are recognized using the tax rates and tax laws
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred Tax Assets are not recognized unless there is sufficient
assurance with respect to the reversal of the same in future years.
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