Mar 31, 2015
I. BASIS OF PREPARATION
a) These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
coat convention on accrual basis. Pursuant to section 133 of the
Companies Act. 2013 read with Rule 7 of the Companies (Accounts) Rule,
2014, till the standards of accounting or any addendum thereto arc
prescribed by Central Government in consultation and recommendation of
the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently, these financial statements have been prepared to
comply in all material aspect with the Accounting Standards notified
under Section 211(3C) of Companies Act, 1956 [Companies ( Accounting
Standards), 2006 as amended and other relevant provisions of the
Companies Act, 2013.
b) All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle, and other
criteria set out in the Schedule - III to the Companies Act, 2013,
Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as up to
twelve months for the purposed current / non-client classification of
assets and liabilities.
c) Accounting policies not specifically referred in otherwise are
consistent with the generally accepted accounting principles followed
by the Company.
d) The preparation of financial statements requires estimates and
assumption to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period .The Difference
between the actual and estimate are recognized in the period in which
results are known/materialized.
II. TANGIBLE FIXED ASSETS AND DEPRECIATION
a) Tangible Fixed Assets are stated at cost of acquisition or
construction except assets which has been revalued, at its revalued
amount, less accumulated depreciation and impairment loss, if any. Coal
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. Temporary
constructions/alterations arc charged off to Profit and Loss Account.
b) Depreciation has beer, provided as under:
(i) For assets existing on 1st April 2014 the carrying amount will be
amortized over the remaining useful valves on straight line method as
prescribed in the schedule II of the Companies Act, 2013.
(ii) For the assets added after the 1st April 2014 :- On straight line
method at the useful standard Lives prescribed in Schedule II to the
Companies Act, 13.
[iii] On the revalued assct3 the additional charge of depreciation on
account of revaluation is withdrawn from revaluation reserve and
credited to the retained surplus/deficit in profit and loss.
[iv] Depreciation on assets sold during the year is provided on prorate
basis.
III. INTANGIBLEASSETS AND AMORTISATION
a) Intangible Assets are stated at acquisition of cost, net of
accumulated amortization and accumulated impairment losses, if any.
b) Intangible assets include Cost of software capitalized is amortized
over a period of 5 years.
IV. IMPAIRMENT OF ASSETS
Assessment is done at each Balance heat date as to whether there is any
indication that a tangible asset may be impaired. For the purpose of
assessing impairment, the smallest identifiable group of asset A at
generates cash inflows from continuing use that are largely independent
of the cash inflow from other assets or groups of assets, is considered
as a cash generating unit. If any such indication exists, an estimate
of the recoverable amount of the asset/cash, generating unit is made.
Assets whose carrying rally exceeds their recoverable amount are
written down to the recoverable amount. Recoverable amount is higher of
an asset's or cash generating unit's ne* selling price and its value in
use. Value in use is the present value of estimated future cash flows
expected to arise from the continuing use of an assets and from its
disposal at the end of its useful life. Assessment is also done at each
Balance Sheet date as to whether there is any indication that an
impairment loss recognized for an asset in prior accounting orchids may
no longer exist or may have decreased.
V. BORROWING COST
Borrowing Costs attributable to acquisition aid canal recon of
qualifying assets are capitalized as a part of the cost of such assets
up to the date when such assets are ready for its intended use.
Other borrowing costs are charged to the Statement of Profit Hnd Loss
in the period in which they are incurred.
VI. INVESTMENTS
Investments, which are readily realizable and intended to be; held for
not more than one year from the date or which such investments are
made, arc classified as current investments. All other investments are
classified as long-term investments.
Investments arc recorded at cost on the date o: purchase, which
includes acquisition charges such as brokerage, stamp duty, taxes, etc.
Current Investments are stated at Lower of cost and net realizable
value. Long-term investments are stated at cost after deducting
provisions made, if any, for other than temporary diminution in the
value.
VII. INVENTORIES
Haw materials, components, stores and spares, and packing material are
valued are lower of color net reliable value. However, these items are
considered to be realizable at cost if the finished products, in which
they will be used, are expected to be sold at or above cost. Cost of
inventories is computed on a weighted average basis.
Work-in-progress, finished goods and Stock-in-trade art valued at lower
of cost or net realizable value. Cost of Finished goods and
work-in-progress comprises raw material, direct labor, other direct
costs and other related unction overheads up to the stage of bringing
the inventories to their present location and condition.
Net realizable value is the estimated selling price in the ordinary
course of business less estimated cost necessary to make the sales.
VIII. TRANSLATION OF FOREIGN CURRENCY ITEMS
Transaction a in foreign currency are recorded at the rate of exchange
prevailing on the date of transaction. Expediency monetary assets and
liabilities are converted in Indian currency at the rate reviling at
the end of the year. Resultant gain or loss is recognized in the Staten
profit and loss for the year.
IX. REVENUE RECOGNITION
a) Revenue is recognized to the extent that it is probable that the
economic benefits will Sow to the Company and can be reliably measured.
b) Revenue from sale of products is recognized when the significant
risks and rewards of ownership of the goods have passed to the buyer,
Sale of goods and services are recorded net of trued discounts,
rebates, Excise duty, service Tax but include Sales Tax and Value Added
Tax.
c) Revenue from services tire recognized as they are rendered based on
agreements / arrangements with the concerned parties and recognized net
of Service Tax.
d) Interest Income is recognized on a time proportion ba3is taking into
account the amount outstanding and applicable interest rate.
e) Dividend income on investments accounted for when the right to
receive the payment is established.
X. PURCHASES & INDIRECT TAXES
a] Purchases are accounted net of excise duty paid but including the
VAT/CST. However at th-1 end of year unadjusted VAT against VAT
liability on sale is reduced from the Purchase Cost.
b} VAT/ CST Transactions: VAT, CST paid [after taking credit for taxed
paid on inputs is directly charged to statement of Profit and Loss.
XI. RETIREMENT AND OTHER EMPLYEE BENEFITS
(a) Defined Contribution Plan
The Company makes defined contribution to Government Employee Provident
Fund, which are recognized in the Statement of Profit and Loss un
accrual basis. The company has no further obligation beyond its
contribution.
(n) Defined Benefit Plan
i) The Company's liabilities under Payment of Gratuity Act are
determined on the basis of actuarial valuation made at the end of each
financial year using the projected unit credit method. Actuarial gains
and lasses are recognized immediately in the Statement of Profit and
Loss as income or expenses. Obligation is measured at the present value
of estimated future cash flow using a discounted rate that is
determined by reference to market yields at the Balance Sheet date on
Government bonds where the terms of the Government bonds are consistent
with the estimated terms of the defined benefit obligation.
ii) Leave Salary: Leave Salary for accumulated compensated absences
that are expected to be availed or enchased by eligible employees
within 12 months from the end of the year are treated as short term
employees benefits, which is provided at the expected cost.
XII. TAXATION
Tax expense for the period, comprising Current tax and Deferred Tax arc
included in the determination of net profit or loss for the period.
Current tax is measured at the amount expected to be paid to the tax
authorities in accordance with the taxation laws prevailing in India.
Deferred Tax recognized for all the timing differences, subject to the
consideration of prudence in respect of deferred tax assets, Deferred
tax assets are recognized and carried forward only to the extent that
there is are reasonable certainty that sufficient future Taxable income
will be available against which such deferred tax assets can be
realized. Deferred tax assets on unabsorbed carry forward losses are
recognized only upon definite virtual certainty of future taxable
income is available and not otherwise.
Deferred Tax assets arid liabilities are measured using the tax rates
and tax laws that have been enacted and substantively enacted by the
Balance Sheet date. At each Balance Sheet dale, the company re-assesses
unrecognized deferred tax assets, if any.
XIII. OPERATING LEASES
Asa Lessee : Leases, where significant portion of risk and reward of
ownership are retained by the Lesser, are classified as Operating
Leases and lease rentals thereon arc charged to the Statement of Pupil
and Loss on a straight-line basis over the lease term.
XIV. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for
the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during tho period. The
weighted-average number of equity shares outstanding during the period
and for all periods presented is adjusted fur events, such as bonus
shares,
XV. CONTINGENT LIABILITIES AND PROVISIONS
Provision:-
provision are recognized when there is a present obligation as a result
of a. past event and it is probable that an outflow of benefits will be
required to settle the obligation and there is a reliable estimate of
the amount of the obligation.
Contingent liabilities:-
Contingent liabilities are disclosed when tiered is a possible
obligation arising from, the past events, the existence of which will
be confirmed only on the occurrence or non occurrence of one or more
uncertain future events not wholly within the control of the company or
a present obligation that arises from past events where it is either
not portable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
XVI. Cash and Cash Equivalents:
In the Cash flow statement, cash and cash equivalents include cash an
hand, demand deposits with bank including short term margin money
against bank guaranty issued.
Mar 31, 2014
A) Basis of Accounting
The Company is following accrual basis of accounting as prescribed by
Companies (Amendment) Act of 1988 on a ongoing concern basis.
Use of Estimates:
The preparation of financial statements requires the management to make
estimates and assumptions that may affect the reported amount of assets
and liabilities and disclosures relating to contingent liability as at
the date of financial statements and the reported amount of income and
expenses during the reporting period. Although these estimates are
based upon management best knowledge of current events and actions,
actual result could differ from these estimates.
b) Revenue Recognition
The revenue comprises of sales, services, interest, and rent.
1, Revenue is recognized to the extent it is probable those economic
benefits will flow to the company and that the revenue can be reliably
measured.
2. Sales of goods & services include applicable Excise duty, sales tax
and service tax respectively.
3. Sales of Traded goods are recognized upon goods being dispatched
and the ownership of the goods passes to buyer.
4, Sales of Services and commission are recognized on accrual basis
upon the completion of performance as per agreed terms with the buyer.
c) Purchases:
Purchases are accounted including excise duty and unutilized Excise
Modvat as at the end of the Financial year is reduced from Raw Material
Consumed in the Profit & Loss account.
Purchases are accounted including the VAT/CST, However at the end of
year unadjusted VAT against VAT liability on sale is reduced from the
Purchase Cost.
d) Excise / VAT/ CST Transactions
Excise duty, VAT, CST paid (after taking credit for taxed paid on
inputs) is directly charged to Profit and Loss Account.
e) Fixed Assets
Fixed Assets are stated at cost less Depreciation. The cost of
acquisition or construction includes direct expenditure incurred up to
the date the asset is put to use. Temporary constructions/alterations
are charged off to Profit and Loss Account.
f) Depreciation
Depreciation is charged at the rate provided in Schedule XIV of the
Companies Act, 1956 on straight fine method basis.
g) Investment:
Investments are stated at cost.
h) Valuation of inventories
Raw materials and components and unfinished goods are valued at cost.
Finished Goods are valued at cost or Market Value, whichever is lower.
i) Employee Benefits
1) Defined benefit plans
i) Gratuity: Gratuity liability for the year has been provided as per
actuarial valuation certified by the approved valuer. However, at the
earlier year the company has provided for the Gratuity Liabilities
based on estimate received form LIC under group gratuity scheme in
respect of employees as at 31/03/2013.
ii) Leave Salary: Leave Salary encashment of eligible employees is
provided on the credit leave as on the end of the balance sheet date.
2) Defined Contribution plans.
Provident Fund liability contributed by the company is provided and
recognized as expenditure on the basis of actual liability accrued and
paid to the trust/authority,
j) Foreign Currency transactions:
Transaction in foreign currency for purchase and sales are accounted at
the rate prevailing on the date of transaction. The difference arising
on the date of actual receipt or payment is accounted as exchange
fluctuation profit or loss as the case may be. Year ended balance in
foreign currency valued at the exchange rate prevailing on the balance
sheet date.
k) Lease Rentals:
Lease Rentals for assets taken on operating lease are recognized as on
expenses in Profit and Loss Account over the lease term on accrual
basis.
l) Provision for Current fie 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 ''timing difference between book and taxable
profit is accounted for using the tax rates and laws that have been
enacted or substantively enacted on balance sheet date. The deferred
tax asset is recognized and carried forward only to the extent that
there is reasonably certainty that the assets will be realized in
future
m) Borrowing Cost
Borrowing Cost in relation to the acquisition construction of Assets
are capitalized as the part of cost of such assets up to date which
such assets are ready for intended use. Other Borrowing cost are charge
as an expense in the year in which they are incurred.
n) Impairment of Assets
An Asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to Profit and Loss
Account. In the year in which an 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.