Mar 31, 2015
2.1 Basis of Accounting :
The financial Statements are prepared under the historical cost basis of accounting and evaluated on a going-concern basis, with revenue and expenses accounted for on their accrual to comply in all material aspect with the Generally Accepted Accounting Principles in India Indian (GAAP), including the Accounting Standards notified under the rctevant provisions of the Companies Act. 2013.
2-2 Use of Accounting Estimates :
The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to he made that affect the reported amount of assets and liabilities, riisdnsuras, of contingent liabilities on the date of the financial statements and (he reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materiaiized,
2.3 Revenue Recognition;
Revenue is b&ing recognized to the extent that it is probable that the economic benefits wilt flow to the Company and the revenue can be reliably measured.
2.4 Fixed Assets :
Fixed assets are staled at. cost net of recoverable taxes, trade discounts and rebates less
2.5 Depreciation and Amortization :
Depreciation on fixed assets has been charged on W, D. V method at the rates and useful life of the assets
Due to operation of the new mettled of depreciation on the basis of useful life of the asset as per Schedule -II of the Companies Act 2013 form 01-04-14 has resulted in significant transitional effect on opening retained earnings as well as current year's profit of the Company Change in the method of depreciation from WDV to useful life of the asset has resulted in more provision of depreciation amounting R$. 59.GOA lacs and reduction in opening retained earning by Rs. 3.59/- lacs due to charging of carrying amount of the assets having no useful life.
2-6 Inventories ;
Inventories are valued at cost. Cost is determined on hrsl-in first-cut method. Inventories of manufactured goods and raw materials are valued at lower of cost end net realizable value except for wastage 8 Scrap which are valued at net realizable value.. Cost of manufactured goods include related overheads
2.7 Investments ;
Non-currant Investments am recorded at cost.
2-8 Borrowing Costs :
Borrowing costs that are directly attributable to the acquisition or construction of a Qualifying assets are capitalized as part of the cost of that assets till such time the asset is ready for its intended use. Other borrowing costs are recognized as an expenses In the period in which they are incurred.
2-9 Provision and Contingencies :
Provisions : Provisions are recognized when there is a present obligation as 6 result of a pasl event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and arc not discounted to its present value.
Contingent Liabilities : Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the estimate of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or present obligation that arise from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made
2.10 Provision for Current and /deferred Tax :
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act. 1961. Deferred Tax resulting from "liming difference" between taxable and accounting income is accounted for using the tax rales applicable on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.
2.11 Cash Flow Statement:
Cash Flows are reported using indirect method, whereby prafit/(loi&) before extraordinary items and taxes js adjusted for the affect nf 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.
2.12 Employee Benefits ,
Provident Fund Contribution towards provident Fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are claasified as Defined Contribution Scheme as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.
Gratuity Liability . The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement death while in employment or on termination of employment in an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service Contribution to Gratuity fund are made to recognized funds managed by Life Insurance Corporation of India. The Company accounts for the liability for future gratuity benefits on the basis of an independent actuarial valuation.
2.13 Segmental Reporting :
As the company has only one business segment, disclosure under AS 17 on "Segment Reporting issued by the Institute of Chartered Accountants of India is not applicable
2.14 Earning per Share (EPS) ;
Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighed average number of equity shares outstanding during the year, The weighted average number of equity shares outstanding during the year and for all years presented is adjusted for events, such as bonus shares, that have changed the number of equity shares outstanding without a corresponding change in resources For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.