Mar 31, 2015
(1) Basis of Preparation of Financial Statements:
These Financial Statements have been prepared to comply with the
Generally Accepted Accounting Principles including the Accounting
Standards notified under the relevant provisions of The Companies Act
2013.
The financial statements are prepared on accrual basis under the
Historical Cost Convention and on the accounting principle of "Going -
Concern ".
The Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
(2) Use of Estimates:
The preparation of Financial Statements requires estimates and
assumptions to be made that affect the reported amount of Assets and
Liabilities, disclosures of Contingent Liabilities on the date of
Financial Statements and the reported amount of Revenues and Expenses
during the reporting period. Differences between the actual results and
estimates are recognised in the period in which the results are
known/materialized.
(3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction after
reducing accumulated Depreciation until the date of Balance-Sheet. The
cost of Fixed Assets includes direct/indirect expenses incurred for the
purposes of acquiring Fixed Assets.
Capital work in progress includes the cost of fixed assets that are not
yet ready for the intended use, advances paid to acquire fixed assets
and the cost of assets not put to use before the Balance Sheet Date.
(4) Depreciation:
Depreciation on Fixed Assets is provided on the Straight Line Method in
the manner specified in Schedule II of the Companies Act, 2013 for all
Assets.
(5) Inventories:
The method of valuation of closing stock is as under.
I. Raw Materials are valued at cost net of CENVAT and VAT or net
realisable value, whichever is lower. Cost is determined on First - In
First Out basis.
II. Semi-Finished goods are valued at cost of materials and other
direct related manufacturing overheads.
III. Finished goods are valued at cost or net realizable value,
whichever is lower. Finished goods cost valuation includes material
cost, relevant manufacturing overheads and fixed overheads.
Cost comprises all cost of purchases, cost of conversion & other cost
included in bringing the inventory to their present location &
condition.
(6) Revenue Recognition:
I. Sales are recognized when "the risks and rewards" of ownership of
the goods is transferred to the customers in accordance with the terms
of sale, which is generally on dispatch of goods and when no
significant uncertainty as to determination or realization exists.
II. Sales are stated inclusive of Excise Duty but exclusive of VAT and
are net of Sales Return.
III. Revenue from Services are recognized when such Services are
rendered.
IV. Interest Income is recognized on the time proportion basis.
V. Other income is recognised on accrual basis except when the
realisation of such income is uncertain.
(7) Retirement and Other Employee Benefits:
The Company accounts for Employee's benefits on accrual basis only in
case of Provident Fund Contribution, in compliance with provision of
Accounting Standards (AS - 15).
a. The Company makes Provident Fund contribution to defined
contribution retirement benefit plans for qualifying employee. Under
the schemes, the company is required to contribute a specified
percentage of the payroll costs to funds the benefits. The
Contributions to the Scheme are charged to the Profit and Loss
Statement in the year when the Contribution to the fund is due.
b. The exact amount in respect of Gratuity liability and privilege
leave is not provided in the accounts as no actuarial valuation in
respect of these benefits have been made by the Company.
(8) CENVAT and VAT Credit:
CENVAT and VAT Credit available are accounted by booking
Purchase/Services net of Excise Duty, Service Tax and VAT. Unutilised
Credits are shown as receivables in "Short Term Loans & Advance" (Note
No.14) for adjustment against Excise Duty and VAT payable on dispatch
of Products/Materials
Deferred Tax resulting from "Timing Difference" between Book and
Taxable Profit is accounted for using the Tax Rates and Laws that have
been enacted or substantively enacted as on the Balance Sheet date.
Deferred Tax Assets in respect of unabsorbed Depreciation and carry
forward of Losses if any are recognized, if there is virtual certainty
that there will be sufficient future Taxable Income available to
realise such Losses.
(9) Prior Period Adjustments:
Adjustment of identifiable items of income and expenditure pertaining
to the prior period are accounted through "Prior Period Adjustments
Account."
(10) Prepaid Expenses:
Expenses pertaining to subsequent period are accounted as prepaid
expenses.
(11) Foreign Currency Transactions:
I. Transactions in Foreign currency are recorded by applying the
Exchange Rate prevailing at the date of transactions. Any exchange
gains or losses arising out of subsequent fluctuations are accounted
for in the Profit and Loss Statement Monetary items denominated in
foreign currency remaining unsettled at the end of the year, are
translated at closing rates, prevailing on the Balance-sheet date.
Receivables and Liabilities outstanding in foreign currencies are
translated at the exchange rate prevailing as at the close of the year.
II. In case of forward Exchange Rate Contracts, the premium or a
discount arising at the inception of such forward Exchange Contract, is
amortized as expenses or Income over the life of the Contract.
(12) Provisions and Contingent Liabilities:
The company recognizes a provision when there is a present obligation as
a result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is a possibility that the
likelihood of outflow of resources is remote, no provision or disclosure
is made.
(13) Impairment of Assets:
An Assets is treated as impaired when the carrying cost of Assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account for the year in which as Asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed, if there has been a change in the estimate of recoverable
amount.
Mar 31, 2013
(1) General:
(i) The Company generally follows the mercantile system of accounting
and recognizes income and expenditure on an accrual basis except those
with significant uncertainties and in accordance with the mandatory
Accounting Standards referred to in Section 211(3)(C) of the Companies
Act, 1956 and other applicable Provisions of the Companies Act, 1956.
(ii) The Financial Statements have been prepared based on historical
cost and on the accounting principle of "Going - Concern ".
(iii) The Accounting policies not specifically referred to otherwise
are consistent and in consonance with generally accepted accounting
principles.
(iv) Assets and Liabilities are classified as Current and Non-Current
as per the Provisions of the revised Schedule VI notified under the
Companies Act, 1956 and the Company''s normal Operating Cycle. Based on
the nature of Business and its activities, the Company ascertained its
Operating Cycle as 12 months for the purpose of Current and Non-
Current Assets and Liabilities.
(2) Use of Estimates:
The preparation of Financial Statements requires estimates and
assumptions to be made that affect the reported amount of Assets and
Liabilities on the date of Financial Statements and the reported amount
of Revenues and Expenses during the reporting period. Differences
between the actual results and estimates are recognised in the period
in which the results are known/materialized.
(3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction after
reducing accumulated Depreciation until the date of Balance-Sheet. The
cost of Fixed Assets includes direct/indirect expenses incurred for the
purposes of acquiring Fixed Assets.
Capital work in progress includes the cost of fixed assets that are not
yet ready for the intended use, advances paid to acquire fixed assets
and the cost of assets not put to use before the Balance Sheet Date..
(4) Depreciation:
Depreciation on Fixed Assets is provided on the Straight Line Method in
the manner specified in Schedule XIV of the Companies Act, 1956 for all
Assets
Depreciation on all additions is provided on pro-rata basis
(5) Inventories:
The mode of valuation of closing stock is as under.
I. Raw Materials are valued at cost net of CENVAT and VAT or net
realisable value, whichever is lower. Cost is determined on First  In
First Out basis.
II. Semi-Finished goods are valued at cost of materials and other
direct related manufacturing overheads.
III. Finished goods are valued at cost or net realizable value,
whichever is lower. Finished goods cost valuation includes material
cost, relevant manufacturing overheads and fixed overheads.
IV. Stock of Trading Goods is valued at cost or net realisable value,
whichever is lower.
Cost comprises all cost of purchases, cost of conversion & other cost
included in bringing the inventory to their present location &
condition.
(6) Revenue Recognition:
I. Sales are recognized when "the risks and rewards" of ownership of
the goods is transferred to the customers in accordance with the terms
of sale, which is generally on dispatch of goods and when no
significant uncertainty as to determination or realization exists.
II. Sales are stated inclusive of Excise Duty but exclusive of VAT and
are net off
Sales Return.
III. Revenue from Services are recognized when such Services are
rendered.
IV. Interest Income is recognized on the time proportion basis.
V. Other income is recognised on accrual basis except when the
realisation of such income is uncertain. .
(7) Retirement and Other Employee Benefits:
The Company accounts for Employee''s benefits on accrual basis, in
compliance with provision of Accounting Standards (AS Â 15).
a. The Company makes Provident Fund contribution to defined
contribution retirement benefit plans for qualifying employee. Under
the schemes, the company is required to contribute a specified
percentage of the payroll costs to funds the benefits. The
Contributions to the Scheme are charged to the Profit and Loss
Statement. In the year when the Contribution to the fund is due.
b. Gratuity liability is a defined benefit obligation and it is
provided for, on the basis of an actuarial valuation on Projected Net
Credit Method made at the end of the each Financial Year.
c. The company has no policy of carried forward unutilised privilege
leave.
(8) Insurance Claims:
Insurance claims are accounted for on receipt basis.
(9) CENVAT and VAT Credit:
CENVAT and VAT Credit available are accounted by booking
Purchase/Services net of Excise Duty, Service Tax and VAT. Unutilised
Credits are shown as receivables in "Short Term Loans & Advance" (Note
No.15) for adjustment against Excise Duty & VAT payable on dispatch of
Products/Materials
Deferred Tax resulting from "Timing Difference" between Book and
Taxable Profit is accounted for using the Tax Rates and Laws that have
been enacted or substantively enacted as on the Balance Sheet date.
Deferred Tax Assets in respect of unabsorbed Depreciation and carry
forward of Losses if any are recognized, if there is virtual certainty
that there will be sufficient future Taxable Income available to
realise such Losses.
(10) Prior Period Adjustments:
Adjustment of identifiable items of income and expenditure pertaining
to the prior period are accounted through "Prior Period Adjustments
Account."
(11) Prepaid Expenses:
Expenses pertaining to subsequent period are accounted as prepaid
expenses.
(12) Foreign Currency Transactions:
I. Transactions in Foreign currency are recorded by applying the
Exchange Rate
prevailing at the date of transactions. Any exchange gains or losses
arising out of subsequent fluctuations are accounted for in the Profit
and Loss Statement Monetary items denominated in foreign currency
remaining unsettled at the end of the year, are translated at closing
rates, prevailing on the Balance-sheet date. Receivables and
Liabilities outstanding in foreign currencies are translated at the
exchange rate prevailing as at the close of the year.
II. In case of forward Exchange Rate Contracts, the premium or a
discount arising at the inception of such forward Exchange Contract, is
amortized as expenses or Income over the life of the Contract.
(13) Provisions and Contingent Liabilities:
The company recognizes a Provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a
possibility that the likelihood of outflow of resources is remote, no
provision or disclosure is made.
(14) Impairment of Assets:
An Assets is treated as impaired when the carrying cost of Assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account for the year in which as Asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed, if there has been a change in the estimate of recoverable
amount.
Mar 31, 2010
1. Overall Valuation Policy:
The financial statements are based on historical cost convention and
prepared in accordance with the Generally Accepted Accounting
principles and in compliance with the Accounting Standards notified in
Section 211 (3C) of the Companies Act 1956.
2. Basis of Accounting :
The financial statements have been prepared on accrual basis of
accounting and in accordance with the provisions of the Companies Act,
1956, the accounting standards issued by The Institure of Chartered
Accountants of India as adapted consistently by the company to the
extent disclosed in the Notes. All income and expenditure having a
material bearing on financial statements are recognised on accrual
basis.
The preparation of the financial statements in conformity with the
Generally Accepted Accounting principles requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures relating to the contingent
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the year. Management believes
that, the estimates used in the preparation of financial statements are
prudent and reasonable. Future results could differ from those
estimates. Difference between the actual results and estimates are
recognized in the periods in which the results are taken /
materialized.
3. Revenue Recognition :
Revenue from sales is recognised at the time of despatch of goods.
Sales are inclusive of excise duty but exclusive of VAT. Revenue from
service rendered is recognised as the service is performed.
4. Fixed Assets :
Fixed assets are stated at cost of acquisition, including any cost
attributable for bringing the assets to its working condition less
accumulated depreciation. The cost of fixed assets includes incidental
and other related expenses incurred for the purpose of acquiring fixed
assets.
5. Capital Work - in - Progress:
Capital Work-in-Progress is carried at cost comprising direct cost and
other related expenses and advances to the suppliers of capital goods.
6. Impairment of Assets:
The carrying amount of assets, other than inventory, is reviewed at
each Balance Sheet date to determine whether there is any indication of
impairment, if any such indication exists, the recoverable amount of
the assets is estimated. An impairment loss is recognised whenever the
carrying amount of an asset exceeds its recoverable amount. The
Impairment loss is recognised in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount. Impairment loss is recognised as an
expense in profit and loss account in the year in which an asset is
identified as impaired.
7. Depreciation:
The estimated economic useful life of the fixed assets as per the
Managements judgement is not more than the economic life implicit in
the rates of depreciation as per Schedule XIV of the Companies Act,
1956, and such Depreciation is provided on the "Straight Line Method"
at the rates (single shift) and in the manner prescribed in Schedule
XIV to the Companies Act, 1956, as amended, in respect of assets other
than land. The depreciation on Addition to fixed Assets is charged on
pro-rata basis. Individual assets costing Rs. 5000/- are depreciated in
full in the period of purchase.
8. Prior Year Expenses / Income:
All identifiable items of income and expenditure pertaining to prior
period are accounted through "Prior Period Adjustment Account".
9. Inventories:
a) Inventories are valued at lower of cost and net realisable value on
FIFO basis.
b) Cost of Raw Materials includes purchase price and freight.
c) Cost of Work-in-progress includes purchase price and the relevant
production overheads on yearly average basis.
d) Finished Goods are valued on absorption cost basis and include
material, labour and appropriate overheads.
10. Sales:
Sales are recognised at the time of despatch of goods. Sales are
inclusive of excise duty but exclusive of VAT.
11. Cenvat Credit:
The Cenvat Credit available on purchase of raw material is utilised
against excise duty payable on clearance of goods produced. The
unutilised Cenvat Credit is shown as receivable in "Loans and
Advances".
12. Other Income:
Other Income is recognised as and when becoming due and receivable.
13. Retirement Benefits:
The Company has made its own estimates of retirement benefits like
Gratuity, Leave Encashment etc and provided the same in the books of
accounts.
14. Taxes on Income:
Current Tax is the amount of tax payable on income for the year as
determined in accordance with the provisions of Income Tax Act, 1961.
Mar 31, 2009
1. Overall Valuation Policy:
The financial statements are based on historical cost convention and
prepared in accordance with the Generally Accepted Accounting
principles and in compliance with the Accounting Standards notified in
Section 211 (3C) of the Companies Act 1956.
2. Basis of Accounting :
The financial statements have been prepared on accrual basis of
accounting and in accordance with the provisions of the Companies Act,
1956, the accounting standards issued by The Institure of Chartered
Accountants of India as adapted consistently by the company to the
extent disclosed in the Notes. All income and expenditure having a
material bearing on financial statements are recognised on accrual
basis.
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures relating to the contingent
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the year. Management believes
that, the estimates used in the preparation of financial statement are
prudent and reasonable. Future results could differ from those
estimates.
3. Revenue Recognition :
Revenue from sales is recognised at the time of despatch of goods.
Sales are inclusive of excise duty but exclusive of VAT. Revenue from
service rendered is recognised as the service is performed.
4. Fixed Assets :
Fixed assets are stated at cost of acquisition, including any cost
attributable for bringing the assets to its working condition less
accumulated depreciation. The cost of fixed assets includes incidental
and other related expenses incurred for the purpose of acquiring fixed
assets.
5. Capital Work - in - Progress:
Capital Work-in-Progress is carried at cost comprising direct cost and
other related expenses and advances to the suppliers of capital goods.
6. Impairment of Assets:
The carrying amount of assets, other than inventory, is reviewed at
each Balance Sheet date to determine whether there is any indication of
impairment, if any such indication exits, the recoverable amount of the
assets is estimated. An impairment loss is recognised whenever the
carrying amount of an asset exceeds its recoverable amount. The
Impairment loss is recognised in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
7. Depreciation:
The estimated economic useful life of the fixed assets as per the
Managements judgement is not more than the economic life implicit in
the rates of depreciation as per Schedule XIV of the Companies Act,
1956, and such Depreciation is provided on the "Straight Line Method"
at the rates (single shift) and in the manner prescribed in Schedule
XIV to the Companies Act, 1956, as amended, in respect of asets other
than land. The depreciation on Addition to fixed Assets is charged on
pro-rata basis. Individual assets costing Rs. 5000/- are depreciated in
full in the period of purchase.
8. Prior Year Expenses / Income:
All identifiable items of income and expenditure pertaining to prior
period are accounted through "Prior Period Adjustment Account".
9. Inventories:
a) Inventories are valued at lower of cost and net realisable value on
FIFQ basis.
b) Cost of Raw Materials includes purchase price and freight.
c) Cost of Work-in-progress includes purchase price and the relevant
production overheads on yearly average basis.
d) Finished Goods are valued on absorption cost basis and include
material labour and appropriate overheads.
10. Sales:
Sales are recognised at the time of despatch of goods. Sales are
inclusive of excise duty but exclusive of VAT.
11. Cenvat Credit:
The Cenvat Credit available on purchase of raw material is utilised
against excise duty payable on clearance of goods produced. The
unutilised Cenvat Credit is shown as receivable in "Loans and
Advances".
12. Other Income:
Other Income is recognised as and when becoming due and receivable.
13. Retirement Benefits:
The retirement benefit except Provident Fund are accounted on cash
basis.
14. Taxes on Income:
Current Tax is the amount of tax payable on income for the year as
determined in accordance with the provisions of Income Tax Act, 1961.
Fringe Benefit Tax is provided as per the provision of Income Tax Act.
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