Home  »  Company  »  Centenial Surgic  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Centenial Surgical Suture Ltd. Company

Mar 31, 2015

1.1. Basis of Accounting

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

1.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

1.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

1.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

1.5. Investments

Investments are stated at cost of acquisition.

1.6. Inventories

1.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

1.6.2. Works in process are valued at estimated cost.

1.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss.

1.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

1.9. Export Benefits

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stabilised in respect of exports made/to be made.

1.10. Depreciation / Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

1.11. Employee Benefits

1.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

1.11.2. Post Employment Benefits:

Company's contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company's liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company's rules.

1.12 Research and Development

Research costs are expensed as and when incurred.

1.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

1.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable/availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

1.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit and Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewed at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

1.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

1.17. Operating Leases

The Company has not taken any leases.

1.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

1.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(b) The Company has only one class of shares referred to as equity shares having face value of Rs. 10/-. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2014

1.1. Basis of Accounting

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

2.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

2.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

2.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

2.5. Investments

Investments are stated at cost of acquisition.

2.6. Inventories

2.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

2.6.2. Works in process are valued at estimated cost.

2.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss,

2.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Sales are net of discounts, sales tax and

returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

2.9. Export Benefits

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stabilised in respect of exports made/to be made.

2.10. Depreciation/Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

2.11. Employee Benefits

2.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

2.11.2. Post-Employment Benefits:

Company''s contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company''s liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company''s rules.

2.12. Research and Development

Research costs are expensed as and when incurred.

2.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

2.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable / availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

2.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit and Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewed at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

2.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

2.17. Operating Leases

The Company has not taken any leases.

2.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

2.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(b) The Company has only one class of shares referred to as equity shares having face value of Rs. 10/-. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

Cash credit facilities are secured by way of hypothecation of stock and book debts. It is further secured by collateral charge on immoveable properties, hypothecation of plant and machinery, other fixed assets of the Company, in addition to personal guarantee of the Promoter / Director.


Mar 31, 2013

1.1. Basis of Accounting

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

1.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

1.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

1.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

1.5. Investments

Investments are stated at cost of acquisition.

1.6. Inventories

1.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

1.6.2. Works in process are valued at estimated cost.

1.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss.

1.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

1.9. Export Benefits .

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stabilised in respect of exports made/to be made.

1.10. Depreciation / Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

1.11. Employee Benefits

1.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

1.11.2. Post Employment Benefits:

Company''s contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company''s liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company''s rules.

1.12. Research and Development

Research costs are expensed as and when incurred.

1.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

1.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable/availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

1.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit & Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewed at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

1.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

1.17. Operating Leases

The Company has not taken any leases.

1.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

1.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.


Mar 31, 2012

1.1. Basis of Accounting

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actuai results and estimates are recognized in the period in which results are known / materialized.

1.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

1.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

1.5. Investments

Investments are stated at cost of acquisition.

1.6. Inventories

1.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

1.6.2. Works in process are valued at estimated cost.

1.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss.

1.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Incomes from services are recognised when services are rendered. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

1.9. Export Benefits

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stablised in respect of exports made/to be made.

1.10. Depreciatiorv'Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

1.11. Employee Benefits

1.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

1.11.2. Post Employment Benefits:

Company's contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company's liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company's rules.

1.12. Research and Development

Research costs are expensed as and when incurred.

1.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

1.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable/availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

1.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit & Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficent future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewd at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonbly certian or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

1.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reveresed to the extent that it becomes reasonbly certain or virtually certain, as the case may be, that sufficent future taxable income will be available.

1.17. Operating Leases

The Company has not taken any leases.

1.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable -estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

1.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.


Mar 31, 2011

ACCOUNTING CONVENTION : The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards.

FIXED ASSETS : Fixed Assets are stated at cost less accumulated depreciation, cost is inclusive of freight, duties, levies, and any directly attributable cost of bringing the assets to their working condition for intended use.

DEPRECIATION : Depreciation is provided as per the W.D.V method at rates provided by Company's Act.

INVESTMENTS : Investments are stated at cost.

INVENTORIES : Inventories are stated at lower of cost and net realisable value. Cost includes excise duty and appropriate allocation of direct and variable overheads.

TAXES ON INCOME : Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). Provision for Income Tax is recognised on an annual basis under the taxes payable method, based on the estimated tax liability computed after taking credit for allowances and exemption in accordance with Indian Income Tax Act, 1961.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date for appropriateness of their carrying value at each balance sheet date.

GRATUITY, LEAVE ENCASHEMENT : The Company has registered with the Life Insurance Corporation of India under the Employees Group Gratuity Scheme and provision for gratuity has been made during the year. No provision has been made in the accounts towards encashment of earned leaves not availed by the employees up to March 31, 2011. Since their encashment as per the rules of the company does not fall due on the said date. The same shall be accounted for as and when paid.

CUSTOMS DUTY: The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouses.

FOREIGN EXCHANGE TRANSACTIONS : Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. The exchange difference arising out of the subsequent settlements are dealt with in Profit & Loss Account.

DEFERRED TAX : Deferred Tax is accounted for by computing the Tax effect of timing differences, which arise during the year and reversed in subsequent periods.

SALES : Sale of goods is recognised at the point of dispatch to the customer.


Mar 31, 2010

ACCOUNTING CONVENTION : The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards.

FIXED ASSETS : fixed Assets are stated at cost less accumulated depredation, cost is inclusive of freight, duties, levies, and any directly attributable cost of bringing the assets to their working condition for intended use.

DEPRECIATION : Depreciation is provided as per the W.D.V method at rates provided by Companys Act.

INVESTMENTS : Investments are stated at cost.

INVENTORIES : Inventories are stated at lower of cost and net realisable value. Cost includes excise duty and appropriate allocation of direct and variable overheads,

TAXES ON INCOME : Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit {reflecting the tax effects of timing differences between accounting income and taxable income for the period). Provision for Income Tax is recognised on an annual basis under the taxes payable method, based on the estimated tax liability computed after taking credit for allowances and exemption in accordance with Indian Income Tax Act, 1961.

The deferred tax change or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets Can be realised in future; however, where there is un absorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date for appropriateness of their carrying value at each balance sheet date.

GRATUITY; LEAVE ENCASHEMENT : The Company has registered with the Life Insurance Corporation of India under the Employees Croup Gratuity Scheme and provision for gratuity has been made during the year. No provision has been made in the accounts towards encashment of earned leaves not availed by the employees up to March 31, 2010. Since their encashment as per the rules of the company does not fall due on the said date. The same shall be accounted for as and when paid.

CUSTOMS DUTY : The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouses.

FOREIGN EXCHANGE TRANSECTIONS ; Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. The exchange difference arising out of the subsequent settlements are dealt with in Profit & Loss Account.

DEFERRED TAX : Deferred Tax is accounted for by computing the Tax effect of timing differences, which arise during the year and reversed in subsequent periods.

SALES : Sale of goods is recognised at the point of dispatch to the customer.

 
Subscribe now to get personal finance updates in your inbox!