Mar 31, 2015
(a) Use of Estimates
'The preparation of the financial Statements in confirmity with
Generally Accepted Accounting Principles (GAAP) in India requites
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures relating to
Contingent liabilities as at the date of the financial statements and
reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees
benefits, income taxes, useful lives of fixed assets etc. Although
these estimates are based upon management's best knowledge of current
events and actions, actual results Could differ from these estimates.
Difference between the actual results and estimates are recognised in
the period in which the results are known / materialised.
(b) Fixed Assets and Depreciation
i) Tangible assets
Tangible assets are stated at their cost of acquisition net of
receivable CBNVAT and VAT Credits. All costs, direct or indirect,
(dating to the acquisition and installation of fixed assets and
bringing it to its working condition for its intended use are
capitalised and include borrowing costs and adjustments arising from
foreign exchange rate variations directly attributable to construction
or ac quisitions of fixed assets. Depreciation on fixed assets is
provided on straight line method jSl .M) on a pro rata basis at the
rates and in the manner specified m .Schedule II to the Companies Act,
2)1.A In respect of asset s aequired/sold during the year, depredation
has been provided on pro rata basis with reference to the days of
addition /put to use or disposal,
(ii) Intangible /assets
Intangible Assets are stated at their cost of acquisition, less
accumulated amortization ami accumulated impairment losses thereon. An
intangible asset is recognized where it is probable that tutu re
economic benefits attributable to the asset will tlow to the enterprise
and where its cost can be reliably measured. The depreciable amount of
intangible assets is allocated based on the estimates of the useful
life of the asset not exceeding five years.
(c) Impairement of ASSETS
Art asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment km is charged to the*
Profit & LossAccount in the year in which an asse is dentified as
impaired. The impairment loss recognised in prior accounting; period is
reversed if there has been a change in the estimate of recoverable
amount:
(d) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long- term investment. Current investment
are earned at lower of cost and fair value determined cm an individual
item basis, Lonng term investments arc carried at cost. However,
provision for diminution in value is made to recognise a decline other
than temporary in the value of the investments.
(e) Inventories
(i) Finished and Semi-Finished products produced and purchased by the
Company are carried at lower of cost and net realisable value after
providing for
obsolescence, if any.
(ii) Work in-progress is carried at lower of cost and net realisable
value.
iii) Stock of raw materials, stores, spare parts and packing materials
are valued at lower of cost less CRNVAT Credit/ VAT availed or net
realisable value,
iv. Cost of inventories comprises all costs of purchase, cost of
conversion and other costs incurred in bringing them to their
respective present location and condition.
v. lability for excise duty m respect of goods manufactured by the
Company is accounted upon removal of goods from the factkory-
f. Revenue Recongnistion
Income and expenditure is recognized and accounted for on accrual
basis, Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue from sate of goods is recognised oo transfer
of significant risks and rewards of ownership to the customer and when
no significant uncertainty exists regarding realisation of the
consideration. sales are recorded net of sales returns, sales tax/VAT,
cash and trade discounts.
(g) Foreign Currency Transactions
The company follows Accounting Standard II issued by the Institute of
Chartered Accountants of India to account for the foreign exchange
transactions,
(h) Government Grants and Subisidies
Grants and Subsidies from the Government are recognized when there is
reasonable certainty that the Grant/Subsidy will be received and all
attaching condition* will be complied with. When the Grant o» Subsidy
relate, to an expense item, it k recognised as income over the periods
necessary to match them, on a systematic basis to the costs, which it
is intended to compensate. Where the Grant or Subsidy relates to an
asset, its value is deducted from rite grow value of the asset
concerned in arriving at the carrying amount of the related asset,
Government Grants of the nature of Promoters' contribution are credited
to Capital Reserve amt treated as a part of Shareholders* Funds.
(i) Retirements Benefits
Contributions to the provident fond and employees state insurance if
any) is made monthly at a pre determined rate to the Provident Fund
Gunmissioner and employees State Insurance Fund respectively and
debited to the profit & loss account on an accrual basis.
Provision for outstanding Lease Encashment benefit and Gratuity (if
any) for employees, if any is accounted for on accrual basis,
j. Borrwoing costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. All other borrowing two are charged to revenue.
Lease Policy
(i) Finance Lease
Lease which effectively transfer to the company substantially all the
risks and benefits included to ownership of the based item an
captailised at the inception of the lease at the lower of the fair
value of the leased property and present value of minimum lease
payment. Lease payments are appointed between the finance charges and
reduction of the lease liability to as a achieve a constant ratae of
interst on the remaining balance of the liability finance charges are
recognised as finace costs in the statement of profit and loss.
A Leased Asset is depreciated on a straight-lint* basis over the
useful life of the asset or the useful life envisaged in Schedule II to
the Companies Act. 2013, whichever is lower.
ii. OPERATING LEASE
Leases, where the lessor effectively retains substantially all the
risks, and benefits of ownership of the leased item, are classified as
Operating lease. Opettdqg lease payments are recognised as m expense
in the statement of profit and Inst on a straight-line basis over the
lease term.
Earning Per Share
The Company reports Haste and Diluted tarnimp per equity share in
accordance with the Accounting Standard - 2b on Kareuog Pet Share, In
determining earning per share, the Company considers the tret profit
after tax and ittclodes the post tax effect of any
extraordinary/exceptional stems.
The number of shares used in computing base earning per share is fire
weighted avergae number of equity shares outstanding during the period-
The numbers of shares used in. computing diluted earning per share
comprises the weighted aenage number of equity' shares that would have
been issued on the conversion of all potential equity shares. Dilutive
potential equity shares have been deemed converted as of the beginning
of the period, unless issued at a later dare.
Provision for currrent and deferred tax
Provision for current Income Tax and Wealth Tax are made after taking
into consideration benefits admissible under the provisions of the
Income Tax Act, 1961. Defemd Tax resulting ficom "timing difference*
between book and taxable profit Is accounted for using the tax rates
and laws that one enacted or sabtanrively enacted as on the balance
sheet date. The deferred tax asset is recognised and carried forward
only to the extent that there is a reasonable certsinity that
sufficient future taxable income will be avaibble against which such
deferred tax asset can be realized.
Provision contingent liabilities and contingent asstes
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be on outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2014
(a) Use of Estimates
The preparation of the Financial Statements in confirmity with
Generally Accepted Accounting Principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees
benefits, income taxes, useful lives of fixed assets etc Although these
estimates are based upon management''s best knowledge of current events
and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognised in
the period in which the results are known / materialised.
(b) Fixed Assets and Depreciation
(i) Tangible Assets
Tangible assets are stated at their cost of acquisition net of
receivable CENVAT and VAT Credits. All costs, direct or indirect,
relating to the acquisition and installation of fixed assets and
bringing it to its working condition for its intended use are
capitalised and include borrowing costs and adjustments arising from
foreign exchange rate variations directly attributable to construction
or acquisition of fixed assets. Depreciation on fixed assets is
provided on written down value method (WDV) on a pro-rata-basis at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956. In respect of assets acquired/sold during the year, depreciation
has been provided on pro-rata basis with reference to the days of
addition/put to use or disposal.
(ii) Intangible Assets
Intangible Assets are stated at their cost of acquisition, less
accumulated amortization and accumulated impairment losses thereon. An
intangible asset is recognized where it is probable that future
economic benefits attributable to the asset will flow to the enterprise
and where its cost can be reliably measured. The depreciable amount of
intangible assets is allocated based on the estimates of the useful
life of the asset not exceeding five years.
(c) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
(d) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investment. Current investment
are carried at lower of cost and fair value determined on an individual
item basis. Long-term investments are carried at cost. However,
provision for diminution in value is made to recognise a decline other
than temporary in the value of the investments.
(e) Inventories
(i) Finished and Semi-Finished products produced and purchased by the
Company are carried at lower of cost and net realisable value after
providing for obsolescence, if any.
(ii) Work-in-progress is carried at lower of cost and net realisable
value.
(iii) Stock of raw materials, stores, spare parts and packing materials
are valued at lower of cost less CENVAT Credit/ VAT availed or net
realisable value.
Cost of inventories comprises all costs of purchase, cost of conversion
and other costs incurred in bringing them to their respective present
location and condition.
(v) Liability for excise duty in respect of goods manufactured by the
Company is accounted upon removal of goods from the factory.
(f) Revenue Recognistion
Income and expenditure is recognized and accounted for on accrual
basis. Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can he
reliably measured. Revenue from sale of goods is recognised on transfer
of significant risks and rewards of ownership to the customer and when
no significant uncertainty exists regarding realisation of the
consideration. Sales are recorded net of sales returns, sales tax/VAT,
cash and trade discounts.
(g) Foreign Currency Transactions
The company follows Accounting Standard 11 issued by the Institute of
Chartered Accountants of India to account for the foreign ex-change
transactions.
(h) Government Grants and Subsidies
Grants and Subsidies from the Government are recognized when there is
reasonable certainty that the Grant/Subsidy will be received and all
attaching conditions will be complied with. When the Grant or Subsidy
relates to an expense item, it is recognised as income over the periods
''necessary to match them on a systematic basis to the costs, which it
is intended to compensate. Where the Grant or Subsidy relates to an
asset, its value is deducted from the gross value of the asset
concerned in arriving at the carrying amount of the related asset.
Government Grants of the nature of Promoters'' contribution are credited
to Capital Reserve and treated as a part of Shareholders'' Funds.
(i) Retirement Benefits
Contributions to the provident fund and employees state insurance (if
any) is made monthly at a pre-determined rate to the Provident Fund
Commissioner and Employees State Insurance Fund respectively and
debited to the profit & loss account on an accrual basis.
Provision for outstanding Leave Encashment benefit and Gratuity (if
any) for employees, if any is accounted for on accrual basis.
(j) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. All other borrowing costs are charged to revenue.
(k) Lease Policy
(i) Finance Leases
Leases which effectively transfer to the company substantially all the
risks and benefits incidental to ownership of the leased item, are
capitalised at the inception of the lease term at the lower of the fair
value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance charges
are recognised as finance costs in the Statement of Profit and Loss.
A Leased Asset is depreciated on a straight-line basis over the useful
life of the asset or the useful life envisaged in Schedule XIV to the
Companies Act, 1956, whichever is lower.
(ii) Operating Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item, are classified as
Operating lease. Operating lease payments are recognised as an expense
in the statement of profit and loss on a straight-line basis over the
lease term.
(I) Earning Per Share
The Company reports Basic and Diluted earnings per equity share in
accordance with the Accounting Standard - 20 on Earning Per Share. In
determining earning per share, the Company considers the net profit
after tax and includes the post tax effect of any
extraordinary/exceptional items. The number of shares used in computing
basic earning per share is the weighted avergae number of equity shares
outstanding during the period. The numbers of shares used in computing
diluted earning per share comprises the weighted average number of
equity shares that would have been issued on the conversion of all
potential equity shares. Dilutive potential equity shares have been
deemed converted as of the beginning of the period, unless issued at a
later date.
(m) Provision for Current and Deferred Tax
Provision for current Income Tax and Wealth Tax are made after taking
into consideration benefits admissible under the provisions of the
Income Tax Act, 1961. Deferred Tax resulting from "timing difference"
between book and taxable profit is accounted for using the tax rates
and laws that are enacted or subtantively enacted as on the balance
sheet date. The deferred tax asset is recognised and carried forward
only to the extent that there is a reasonable certainity that
sufficient future taxable income will be available against which such
deferred tax asset can be realized.
(o) Provision. Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2013
(a) Use of Estimates
The preparation of the Financial Statements in conformity with
Generally Accepted Accounting Principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees
benefits, income taxes, useful lives of fixed assets etc. Although
these estimates are based upon management''s best knowledge of current
events and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognised in
the period in which the results are known / materialised.
(b) Fixed Assets and Depreciation
(i) Tangible Assets
Tangible assets are stated at their cost of acquisition net of
receivable CENVAT and VAT Credits. All costs, direct or indirect,
relating to the acquisition and installation of fixed assets and
bringing it to its working condition for its intended use are
capitalised and include borrowing costs and adjustments arising from
foreign exchange rate variations directly attributable to construction
or acquisition of fixed assets. Depreciation on fixed assets is
provided on written down value method (WDV) on a pro-rata-basis at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956. In respect of assets acquired/sold during the year, depreciation
has been provided on pro-rata basis with reference to the days of
addition/put to use or disposal.
(ii) Intangible Assets
Intangible Assets are stated at their cost of acquisition, less
accumulated amortization and accumulated impairment losses thereon. An
intangible asset is recognized where it is probable that future
economic benefits attributable to the asset will flow to the enterprise
and where its cost can be reliably measured. The depreciable amount of
intangible assets is allocated based on the estimates of the useful
life ofthe asset not exceeding five years.
(c) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
(d) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investment. Current investment
are carried at lower of cost and fair value determined on an individual
item basis. Long- term investments are carried at cost. However,
provision for diminution in value is made to recognise a decline other
than temporary in the value of the investments.
(e) Inventories
(i) Finished and Semi-Finished products produced and purchased by the
Company are carried at lower of cost and net realisable value after
providing for obsolescence, if any.
(ii) Work-in-progress is carried at lower of cost and net realisable
value.
(iii) Stock of raw materials, stores, spare parts and packing materials
are valued at lower of cost less CENVAT Credit/ VAT availed or net
realisable value.
(iv) Cost of inventories comprises all costs of purchase, cost of
conversion and other costs incurred in bringing them to their
respective present location and condition.
(v) Liability for excise duty in respect of goods manufactured by the
Company is accounted upon removal of goods from the factory.
(f) Revenue Recognistion
Income and expenditure is recognized and accounted for on accrual
basis. Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue from sale of goods is recognised on transfer
of significant risks and rewards of ownership to the customer and when
no significant uncertainty exists regarding realisation of the
consideration. Sales are recorded net of sales returns, sales tax/VAT,
cash and trade discounts.
(g) Foreign Currency Transactions
The company follows Accounting Standard 11 issued by the Institute of
Chartered Accountants of India to account for the foreign exchange
transactions.
(h) Government Grants and Subsidies
Grants and Subsidies from the Government are recognized when there is
reasonable certainty that the Grant/Subsidy will be received and all
attaching conditions will be complied with. When the Grant or Subsidy
relates to an expense item, it is recognised as income over the periods
necessary to match them on a systematic basis to the costs, which it is
intended to compensate. Where the Grant or Subsidy relates to an asset,
its value is deducted from the gross value of the asset concerned in
arriving at the carrying amount of the related asset. Government Grants
of the nature of Promoters'' contribution are credited to Capital
Reserve and treated as a part of Shareholders'' Funds.
(i) Retirement Benefits
Contributions to the provident fund and employees state insurance (if
any) is made monthly at a pre-determined rate to the Provident Fund
Commissioner and Employees State Insurance Fund respectively and
debited to the profit & loss account on an accrual basis.
Provision for outstanding Leave Encashment benefit and Gratuity (if
any) for employees, if any is accounted for on accrual basis.
(j) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. All other borrowing costs are charged to revenue.
(k) Lease Policy
(i) Finance Leases
Leases which effectively transfer to the company substantially all the
risks and benefits incidental to ownership of the leased item, are
capitalised at the inception of the lease term at the lower of the fair
value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate
ofinterest on the remaining balance of the liability. Finance charges
are recognised as finance costs in the Statement of Profit and Loss.
A Leased Asset is depreciated on a straight-line basis over the useful
life of the asset or the useful life envisaged in Schedule XIV to the
Companies Act, 1956, whichever is lower.
(ii) Operating Leases
Leases, where the lesser effectively retains substantially all the
risks and benefits of ownership of the leased item, are classified as
Operating lease. Operating lease payments are recognised as an expense
in the statement of profit and loss on a straight-line basis over the
lease term.
(l) Earnings Per Share
The Company reports Basic and Diluted earnings per equity share in
accordance with the Accounting Standard - 20 on Earning Per Share. In
determining earning per share, the Company considers the net profit
after tax and includes the post tax effect of any
extraordinary/exceptional items. The number of shares used in computing
basic earnings per share is the weighted average number of equity shares
outstanding during the period. The numbers of shares used in computing
diluted earnings per share comprises the weighted average number of
equity shares that would have been issued on the conversion of all
potential equity shares. Dilutive potential equity shares have been
deemed converted as of the beginning of the period, unless issued at a
later date.
(m) Provision for Current and Deferred Tax
Provision for current Income Tax and Wealth Tax are made after taking
into consideration benefits admissible under the provisions of the
Income Tax Act, 1961. Deferred Tax resulting from "timing difference"
between book and taxable profit is accounted for using the tax rates
and laws that are enacted or substantively enacted as on the balance
sheet date. The deferred tax asset is recognised and carried forward
only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax asset can be realized.
(o) Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
(b) Terms / Rights attached to Equity Shares
The Company has only one class of Equity Shares having a par value of Rs.
10 per shares. Each holder of equity shares is entitled to one vote per
share. Any shareholder whose name is entered in the Register of Members
of the Company shall enjoy the same rights and be subject to the same
liabilities as all other shareholders of the same class.
Dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting. The Company
in general meeting can''t declare dividend in excess of the amount
recommended by the Board. Dividend as declared in the ensuing Annual
General Meeting, shall be distributed within the period provided in
section 207 of the Companies Act, 1956.
In the event of Winding up of the Company, Equity Shareholders will be
entitled to receive remaining assets of the Company, after distribution
of all preferential amounts. For the said purpose, the liquidator may
set such value as he deems fair upon any property to be divided and may
determine how such division shall be carried out between the members.
27. SEGMENT REPORTING
The Company operates mainly in Works & Supplies Contracts, hence in
pursuance to the requirements of Accounting Standard 17 issued by the
Institute of Chartered Accountants of India the segments are not
separately reportable.
28. PREVIOUS YEAR FIGURES
The Company has reclassified, rearranged and regrouped the previous
year figures in accordance with the requirements applicable in the
current year.