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Accounting Policies of Cityman Ltd. Company

Mar 31, 2014

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements are prepared under the historical cost convention, under going concern basis and on an accrual basis of accounting and in accordance with the generally accepted accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and referred to in section 211 (3C) of the Companies Act, 1956 to the extent applicable. The accounting policies applied by the Company are consis- tent with those applied in the previous year.

1.2. ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with the generally accepted accounting principles often requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

1.3. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working conditions for its intended use. Depreciation is provided on the Straight Line Method at old rates for assets acquired up to 30th November 1993 and at the new rates for assets acquired after that date. On additions and disposals, depreciation is provided for the period of use during the year. The rates of depreciation are determined on the basis of useful life of the assets as estimated by the management, which are rates specified in Schedule XIV to the Companies Act, 1956.

1.4. IMPAIRMENT

(a) The carrying amounts of assets are reviewed at each Balance sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss is recognized, wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are dis- counted to their present value at the weighted average cost of capital

(b) Depreciation on impairment assets is provided on the revised carrying amount of the assets over its remaining useful life.

(c) A previously recognized impairment loss is increased or reversed depending on changes in the circum- stances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation, if there was no impairment.

1.5. INVESTMENTS Investments are stated at cost.

1.6. TRANSACTIONS IN FOREIGN CURRENCIES

Current assets and current liabilities are translated at yearend exchange rates or on actual basis, where they are available at the time of finalization of accounts.

1.7. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Finished goods are valued on full absorption cost and includes material, labour and overheads.

1.8. MISCELLANEOUS EXPENDITURE

Preliminary expenses and public issue related expenses have been fully written off.

1.9. CONTINGENT LIABLITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

1.10. SALES

Sales are inclusive of all charges, but net of normal trade discount and returns

1.11. RETIREMENT AND OTHER EMPLOYEE BENEFITS

The Company has made appropriate provision for gratuity cum settlement benefit for all employees, who have completed eligible number of years of service under relevant acts.

1.12. CAPITAL SUBSIDY

Subsidy referable to specific fixed assets are deducted from cost of assets, while subsidies not referable to specific fixed assets are credited to Capital Reserve Account.

1.13. TAXATION

Tax expenses comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.

1.14. PROVISIONS, CONTINGENT LIABLITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprise has a present obligation as a result of past event. It is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in case of

(a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation

(b) A possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed.

Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.15. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity share are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue; bonus elements in a right issue to existing shareholder; share split; and reverse share split (consolidation of shares)

For the purposes of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period are adjusted for the effects of all dilative potential equity shares.

1.16. SEGMENT REPORTING

The company has only one business segment and geographical segment viz. manufacturing and selling of readymade garments, hence the enterprise accounts are representing the segmental accounts. The other business segment to which the company has just entered into is development of residential township and no major activity except acquisition of land and some minor development has been carried out in this segment and the same is put under the head inventories. No special reporting is required for the current year in this segment.

1.17. CASH FLOW STATEMENT

Cash flow statement has been prepared under the indirect method.

(b) Rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital. The Company has only one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The company as and when declares dividend the same is paid in Indian Rupees. There are no restrictions on distribution of dividends or repayments of capital.

(c) Shares of each class held by its holding company or its ultimate holding company (including shares held by it or by subsidiaries or associates or the holding company or the ultimate holding company in aggregate) NIL

(e) Shares reserved for issue under options and contracts /commitments for sale of shares /disinvestments, including the terms and the amounts-NIL and not applicable

(f) For a period of 5 years immediately preceding the Balance Sheet date disclose:

Aggregate number and class of shares

Allotted as fully paid up pursuant to contract(s) without payment being received in cash-NIL

Allotted as fully paid up by way of bonus shares-NIL

Bought back -NIL

(g) Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date -NIL and not applicable.


Mar 31, 2013

1.1. BASIS OF PREPARATION OF FIANCIAL STATEMENT

The financial statements are prepared under the historical cost convention, under going concern basis and on an accrual basis of accounting and in accordance with the generally accepted accounting standards issued by the Institute of Charted Accountants of India (ICAI) and referred to in section 211 (3C) of the Companies Act, 1956 to the extent applicable. The accounting policies applied by the Company are consistent with those applied in the previous year.

1.2. ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with the generally accepted accounting principles often requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

1.3. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working conditions for its intended use. Depreciation is provided on the Straight Line Method at old rates for assets acquired up to 30th November 1993 and at the new rates for assets acquired after that date. On additions and disposals, depreciation is provided for the period of use during the year. The rates of depreciation are determined on the basis of useful life of the assets as estimated by the management, which are rates specified in Schedule XIV to the Companies Act, 1956.

1.4. IMPAIRMENT

(a) The carrying amounts of assets are reviewed at each Balance sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss is recognized, wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital

(b) Depreciation on impairment assets is provided on the revised carrying amount of the assets over its remaining useful life.

(c) A previously recognized impairment loss is increased or reversed depending on changes in the circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation, if there was no impairment.

1.5. INVESTMENTS Investments are stated at cost.

1.7. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Finished goods are valued on full absorption cost and includes material, labour and overheads.

1.8. MISCELLANEOUS EXPENDITURE

Preliminary expenses and public issue related expenses have been fully written off.

1.9. CONTINGENT LIABLITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

1.10. SALES

Sales are inclusive of all charges, but net of normal trade discount and returns

1.11. RETIREMENT AND OTHER EMPLOYEE BENEFITS

The Company has made appropriate provision for gratuity cum settlement benefit for all employees, who have completed eligible number of years of service under relevant acts.

1.12. CAPITAL SUBSIDY

Subsidy referable to specific fixed assets are deducted from cost of assets, while subsidies not referable to specific fixed assets are credited to Capital Reserve Account.

1.13. TAXATION

Tax expenses comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.

1.14. PROVISIONS, CONTINGENT LIABLITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprise has a present obligation as a result of past event. It is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in case of

(a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation

(b) A possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed.

Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.15. EARINIGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity share are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue; bonus elements in a right issue to existing shareholder; share split; and reverse share split (consolidation of shares)

For the purposes of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period are adjusted for the effects of all dilative potential equity shares.

1.16. SEGMENT REPORTING

The company has only one business segment and geographical segment viz. manufacturing and selling of readymade garments, hence the enterprise accounts are representing the segmental accounts. The other business segment to which the company has just entered into is development of residential township and no major activity except acquisition of land and some minor development has been carried out in this segment and the same is put under the head inventories. No special reporting is required for the current year in this segment.

1.17. CASHFLOW STATEMENT

Cash flow statement has been prepared under the indirect method.

(e) Shares reserved for issue under options & contracts / commitments for sale of shares / disinvestment, including the terms and the amounts - NIL and Not applicable

(f) For period of 5 years immediately preceding the Balance sheet date disclose:

- Aggregate number and class of shares

- Allotted as fully paid up pursuant to contract(s) without payment being received in cash - NIL

- Allotted as fully paid up by way of bonus shares - NIL

- Bought back - NIL

(g) Terms of any securities convertible into equity / preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date - NIL and Not Applicable


Mar 31, 2012

1. BASIS OF PREPARATION OF FIANCIAL STATEMENT

The financial statements are prepared under the historical cost convention, under going concern basis and on an accrual basis of accounting and in accordance with the generally accepted accounting standards issued by the Institute of Charted Accountants of India (ICAI) and referred to in section 211 (3C) of the Companies Act, 1956 to the extent applicable. The accounting policies applied by the Company are consistent with those applied in the previous year.

2. ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with the generally accepted accounting principles often requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Any difference between the actual results and estimates are recog- nized in the period in which the results are known / materialized.

3. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working conditions for its intended use. Depreciation is provided on the Straight Line Method at old rates for assets acquired up to 30th November 1993 and at the new rates for assets acquired after that date. On additions and disposals, depre- ciation is provided for the period of use during the year. The rates of depreciation are determined on the basis of useful life of the assets as estimated by the management, which are rates specified in Schedule XIV to the Companies Act, 1956.

4. IMPAIRMENT

(a) The carrying amounts of assets are reviewed at each Balance sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss is recognized, wherever the carry- ing amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital

(b) Depreciation on impairment assets is provided on the revised carrying amount of the assets over its remaining useful life.

(c) A previously recognized impairment loss is increased or reversed depending on changes in the circum- stances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation, if there was no impairment.

5. INVESTMENTS Investments are stated at cost.

6. TRANSACTIONS IN FOREIGN CURRENCIES

Current assets and current liabilities are translated at yearend exchange rates or on actual basis, where they are available at the time of finalization of accounts.

7. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Finished goods are valued on full absorption cost and include material, labour and overheads.

8. MISCELLANEOUS EXPENDITURE

Preliminary expenses and public issue related expenses have been fully written off.

9. CONTINGENT LIABLITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

10. SALES

Sales are inclusive of all charges, but net of normal trade discount and returns

11. RETIREMENT AND OTHER EMPLOYEE BENEFITS

The Company has made appropriate provision for gratuity cum settlement benefit for all employees, who have completed eligible number of years of service under relevant acts.

12. CAPITAL SUBSIDY

Subsidy referable to specific fixed assets are deducted from cost of assets, while subsidies not referable to specific fixed assets are credited to Capital Reserve Account.

13. TAXATION

Tax expenses comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.

14. PROVISIONS, CONTINGENT LIABLITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprise has a present obligation as a result of past event. It is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in case of

(a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation

(b) A possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed.

Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

15. EARINIGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity share are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue; bonus elements in a right issue to existing shareholder; share split; and reverse share split (consolidation of shares)

For the purposes of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period are adjusted for the effects of all dilative potential equity shares.

16. SEGMENT REPORTING

The company has only one business segment and geographical segment viz. manufacturing and selling of readymade garments, hence the enterprise accounts are representing the segmental accounts. The other busi- ness segment to which the company has just entered into is development of residential township and no major activity except acquisition of land and some minor development has been carried out in this segment and the same is put under the head inventories. No special reporting is required for the current year in this segment.

17. CASHFLOW STATEMENT

Cash flow statement has been prepared under the indirect method.


Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention, under going concern basis and on an accrual basis of accounting and in accordance with the generally accepted accounting principles, adopted consistently by the company and in compliance with the accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and referred to in section 211 (3C) of the Companies Act, 1956 to the extent applicable. The accounting policies applied by the company are consistent with those applied in the previous year.

2. ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with the generally accepted accounting principles often requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Any difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Depreciation is provided on the straight line method at old rates for assets acquired up to 30th November 1993 and at new rates for assets acquired after that date. On additions and disposals, depreciation is provided for the period of use during the year. The rates of depreciation are determined on the basis of useful lives of the assets estimated by the management, which are rates specified in schedule XIV to the Companies Act, 1956.

4. IMPAIRMENT

(a) The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss is recognized, wherever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

(b) Depreciation on impairment assets is provided on the revised carrying amount of the assets over its remaining useful life.

(c) A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation, if there was no impairment.

5. INVESTMENT

Investments are stated at cost.

6. TRANSACTION IN FOREIGN CURRENCIES

Current assets and current liabilities are translated at yearend exchange rates or on actual basis, where they are available at the time of finalisation of accounts.

7. INVENTORIES

Inventories are valued at lower of cost or net realisable value. Finished goods are valued on full absorption cost and includes material, labour and overheads.

8. MISCELLANEOUS EXPENDITURE

Preliminary expenses and public issued expenses have been fully written off.

9. CONTINGENT LIABILITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

10. SALES

Sales are inclusive of all charges, but net of normal trade discount and returns.

11. RETIREMENT AND OTHER EMPLOYEES BENEFIT

The company has made appropriate provision for gratuity cum settlement benefit for all workers of the company. The company has made appropriate provision for gratuity to other employees, who have completed eligible number of years of service under the relevant acts.

12. CAPITAL SUBSIDY

Subsidy referable to specific fixed assets are deducted from cost of assets, while subsidies not referable to specific fixed assets are credited to capital reserve account.

13. TAXATION

Tax expenses comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.

14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprises has a present obligation as a result of past event. It is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in case of

(a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(b) A possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed.

Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

15. EARNINGS PER SHARES

Basic earnings per shares are calculated by dividing the net profit or loss for the period attributable to equitable share holders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus elements in a right issue to existing share holders; share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equitable shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilative potential equity shares.

16. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method.


Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention, under going concern basis and on an accrual basis of accounting and in accordance with the generally accepted accounting principles, adopted consistently by the company and in compliance with the accounting standards issued by the Institute of Chartered Accountants of India (IC AI) and referred to in section 211 (3C) of the Companies Act, 1956 to the extent applicable. The accounting policies applied by the company are consistent with those used in the previous year.

2. ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with the generally accepted accounting principles often requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Any difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Depreciation is provided on the straight line method at old rates for assets acquired up to 30th November 1993 and at new rates for assets acquired after that date. On additions and disposals, depreciation is provided for the period of use during the year. The rates of depreciation are determined on the basis of useful lives of the assets estimated by the management, which are rates specified in schedule XIV to the Companies Act, 1956.

4. IMPAIRMENT

(a) The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss is recognized, wherever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

(b) Depreciation on impairment assets is provided on the revised carrying amount of the assets over its remaining useful life.

(c) A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation, if there was no impairment.

5. INVESTMENT Investments are stated at cost.

6. TRANSACTION IN FOREIGN CURRENCIES

Current assets and current liabilities are translated at yearend exchange rates or on actual basis, where they are available at the time of finalization of accounts.

7. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Finished goods are valued on full absorption cost and includes material, labour and overheads.

8. MISCELLANEOUS EXPENDITURE

Preliminary expenses and public issue expenses have been fully written off.

9. CONTINGENT LIABILITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

10. SALES

Sales are inclusive of all charges, but net of normal trade discount and returns.

11. RETIREMENT AND OTHER EMPLOYEES BENEFIT

The company has made appropriate provision for gratuity cum settlement benefit for all workers of the company. The company has made appropriate provision for gratuity to other employees, who have completed eligible number of years of service under the relevant acts.

12. CAPITAL SIBSIDY

Subsidy referable to specific fixed assets are deducted from cost of assets, while subsidies not referable to specific fixed assets are credited to capital reserve account.

13. TAXATION

Tax expenses comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.

14. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprises has a present obligation as a result of past event. It is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each balance Sheet date and adjusted to reflect the current best estimates.


Mar 31, 2009

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention, under going concern basis and on an accrual basis of accounting and in accordance with the generally accepted accounting principles, adopted consistently by the company and in compliance with the accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and referred to in section 211 (3C) of the Companies Act, 1956 to the extent applicable. The accounting policies applied by the company are consistent with those used in the previous year.

2. ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with the generally accepted accounting principles often requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Any difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Depreciation is provided on the straight line method at old rates for assets acquired up to 30lh November 1993 and at new rates for assets acquired after that date. On additions and disposals, depreciation is provided for the period of use during the year. The rates of depreciation are determined on the basis of useful lives of the assets estimated by the management, which are rates specified in schedule XIV to the Companies Act, 1956.

4. IMPAIRMENT

(a) The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss is recognized, wherever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

(b) Depreciation on impairment assets is provided on the revised carrying amount of the assets over its remaining useful life.

(c) A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation, if there was no impairment.

5. INVESTMENT

Investments are stated at cost.

6. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Finished goods are valued on full absorption cost and includes material, labour and overheads.

7. MISCELLANEOUS EXPENDITURE

Preliminary expenses and public issued expenses have been fully written off.

8. CONTINGENT LIABILITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

9. SALES

Sales are inclusive of all charges, but net of normal trade discount and returns.

10. RETIREMENT AND OTHER EMPLOYEES BENEFIT

The company has made appropriate provision for gratuity cum settlement benefit for all workers of the company. The company has made appropriate provision for gratuity to other employees, who have completed eligible number of years of service under the relevant acts.

11. CAPITAL SIBSIDY

Subsidy referable to specific fixed assets are deducted from cost of assets, while subsidies not referable to specific fixed assets are credited to capital reserve account.

12. TAXATION

Tax expenses comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.

13. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprises has a present obligation as a result of past event. It is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in case of

(a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(b) A possible obligation, unless the probability of outflow of resources is remote. Contingent assets are neither recognized nor disclosed.

Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

14. EARNINGS PER SHARES

Basic earnings per shares are calculated by dividing the net profit or loss for the period attributable to equitable share holders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus elements in a right issue to existing share holders; share split; and reverse share split ( consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equitable shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilative potential equity shares.

15. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method.


Mar 31, 2000

A. MAJOR ACCOUNTING POLICIES

1. BASIS OF ACCOUNTING

The financial statements of the Company are prepared under historic cost convention. Income and expenditure are recognised on accrual basis and are in accordance with the requirements of the Companies Act, 1956 and on the basis of generally accepted accounting principles except in the case of subsidies, which are accounted as and when, received. During the year, the company has changed the method of accounting of Export Bills discounted. Hitherto, the company had been showing the amounts relating to export bills discounted and outstanding as on 31st March as part of Secured Loans. However during the year, the company has treated these as contingent liabilities. This has resulted in the Secured Loans being understated by Rs.1,12,53,947/- and consequently. Sundry debtors for export sales have been understated by the same amount. Interest on Foreign Currency Loan taken from Director has not been provided during the year. This has resulted in the profits being overstated by Rs.1,95,795/- and the unsecured loans being understated by the same amount.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. All cost including expenses relating to the acquisition and installation of the respective fixed assets are capitalised.

3. DEPRECIATION

Depreciation has been provided on Straight Line Method at old rates for assets acquired up to 30th November, 1993 and at new rates for assets acquired after that date, in the manner prescribed in Schedule XIV to the Companies Act, 1956.

4. INVESTMENT

Investments are stated at cost.

5. TRANSACTIONS IN FOREIGN CURRENCIES

Current assets and Current liabilities are translated at year-end exchange rates or on actual basis where they are available at the time of Finalisation of accounts.

6. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Work in process and finished goods are valued on full absorption cost basis and includes material, labour and overheads.

7. MISCELLANEOUS EXPENDITURE

Preliminary expenses and Public Issue Expenses are written off over a period of ten years.

8. CONTINGENT LIABILITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

9. SALES

Sales are inclusive of all charges but net of normal trade discounts and returns.

10. EMPLOYEES BENEFITS

The Company has made provision for gratuity and has taken an insurance policy with Life Insurance Corporation towards the gratuity payable at Branch and the premium paid towards the above is charged to Revenue account.

11. CAPITAL SUBSIDY

Subsidies referable to specific fixed assets are deducted from cost of assets while subsidies not referable to specific fixed assets are credited to capital reserve account.




Mar 31, 1999

1. BASIS OF ACCOUNTING

The financial statements of the Company are prepared under historic cost convention. Income and expenditure are recognised on accrual basis and are in accordance with the requirements of the Companies Act, 1956 and on the basis of generally accepted accounting principles except in the case of subsidies which are accounted as and when received.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. All cost including expenses relating to the acquisition and installation of the respective fixed assets are capitalised.

3. DEPRECIATION

Depreciation has been provided on Straight Line Method at old rates for assets acquired upto 30th November, 1993 and at new rates for assets acquired after that date, in the manner prescribed in Schedule XIV to the Companies Act, 1956.

4. INVESTMENT

Investments are stated at cost.

5. TRANSACTIONS IN FOREIGN CURRENCIES

Current assets and Current liabilities are translated at year end exchange rates or on actual where they are available at the time of finalisation of accounts.

6. INVENTORIES

Inventories are valued at lower of cost or net realisable value. Work in process and finished goods are valued on full absorption cost basis and includes material, labour and overheads.

7. MISCELLANEOUS EXPENDITURE

Advertisement expenditure incurred on special occasions and for certain special schemes had been spread proportionately over the period for which benefit was expected to accrue. This has been completely written off during the year. Deferred Export Market Development Expenditure was to be written off over a period of three years and has been fully written off during the year. Preliminary expenses and Public Issue Expenses are written off over a period of ten years.

8. CONTINGENT LIABILITIES

Contingent liabilities not provided for, are reflected in the notes on accounts.

9. SALES

Sales are inclusive of all charges but net of normal trade discounts and returns.

10. EMPLOYEES BENEFITS

The Company was hitherto following the practice of paying customary bonus and was not providing for bonus. However, during the year under reference, the Company has provided Rs. 5,76,192/- towards bonus. This has resulted in the profits of the Company being understated by Rs. 5,76,192/- and the current liabilities have been overstated by Rs. 5,76,192/-. The Company has made provision for gratuity and has taken an insurance policy with Life Insurance Corporation of India towards the gratuity payable at branch and the premium paid towards the above is charged to Revenue account.

11. CAPITAL SUBSIDY

Subsidies referable to specific fixed assets are deducted from cost of assets while subsidies not referable to specific fixed assets are credited to capital reserve account.


Mar 31, 1998

1. BASIS OF ACCOUNTING

The financial statements of the Company are prepared under historic cost convention. Income and expenditure are recognised on accrual basis and are in accordance with the requirements of the Companies Act, 1956 and on the basis of generally accepted accounting principles except in the case of subsidies which are accounted as and when received.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. All cost including expenses relating to the acquisition and installation of the respective fixed assets are capitalised.

3. DEPRECIATION

Depreciation has been provided on Straight Line Method at old rates for assets acquired upto 30th November, 1993 and at new rates for assets acquired after that date, in the manner prescribed in Schedule XIV to the Companies Act, 1956.

4. INVESTMENT

Investments are stated at cost.

5. TRANSACTIONS IN FOREIGN CURRENCIES

Current assets and Current liabilities are translated at year end exchange rates or on actual where they are available at the time of finalisation of accounts.

6. INVENTORIES

Inventories are valued at lower of cost or net realisable value. Work in process and finished goods are valued on full absorption cost basis and includes material, labour and overheads.

7. MISCELLANEOUS EXPENDITURE

Advertisement expenditure incurred on special occasions and for certain special schemes are spread proportionately over the period for which benefit is expected to accrue and hence a part of the advertisement expenses is deferred expecting that the benefit of the same will be accrued in future only. Deferred Export Market Development Expenditure is written off over a period of three years. Preliminary expenses and Public Issue Expenses are written off over a period of ten years.

8. CONTINGENT LIABILITIES

Contingent liabilities not provided for are reflected in the Notes on accounts.

9. SALES

Sales are inclusive of all charges but net of normal trade discounts and returns.

10. EMPLOYEES BENEFITS

The Company has not made any provision for bonus for the year concerned since the Company follows the practice of paying customary bonus each year. However, bonus is accounted as and when it is paid. The Company has made provision for gratuity at Head Office and has taken an insurance policy with Life Insurance Corporation towards the gratuity payable at Branch and the premium paid towards the above is charged to Revenue account.

11. CAPITAL SUBSIDY

Subsidies referrable to specific fixed assets are deducted from cost of assets while subsidies not referable to specific fixed assets are credited to capital reserve account.


Mar 31, 1997

1. BASIS OF ACCOUNTING

The financial statements of the company are prepared under historic cost convention. Income and expenditure are recognised on accrual basis and are in accordance with the requirements of the Companies Act, 1956 and generally accepted accounting principles except in the case of subsidies which are accounted as and when received.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. All costs including expenses relating to the acquisition and installation of the respective fixed asset are capitalised.

3. DEPRECIATION

Depreciation has been provided on Straight line method (SLM) at old rates for assets acquired upto 30th November 1993, and at new rates for assets acquired after 30th November 1993, in the manner prescribed in schedule XIV to the Companies Act, 1956.

4. INVESTMENTS

Investments are stated at cost.

5. TRANSACTIONS IN FOREIGN CURRENCIES

Current Assets and Current Liabilities are translated at year end exchange rates or on actual where actual are available at the time of finalisation of accounts.

6. INVENTORIES

Inventories are valued at lower of cost or net realisable value. Work in progress and finished goods are valued on full absorption cost basis and includes material, labour and overheads.

7. MISCELLANEOUS EXPENDITURE

Advertisement expenses incurred in connection with launch of products for one full year in all areas are amortised over a period of three years, and advertisement expenditure incurred on special occasions and for certain special schemes are spread proportionately over the period for which benefit is expected to accrue and hence a part of the advertisement expenses is deferred expecting that the benefit of the same will be accrued in future only. Deferred Export Market Development Expenditure is written off over a period of three years. Preliminary Expenses and Public Issue Expenses are written off over a period of ten years.

8. CONTINGENT LIABILITIES

Contingent liabilities not provided for are reflected in the Notes on Accounts.

9. SALES

Sales are inclusive of all charges but net of normal trade discounts and returns.

10. EMPLOYEES BENEFITS

The company was incorporated only on 8th September 1992 and since none of the employees have completed the required number of years of service under the Payment of Gratuity Act, no provision has been made for gratuity payable. However payments made to Life Insurance Corporation under group gratuity insurance Scheme paid during the current financial year have been charged to revenue. The company has not made any provision for bonus for the year concerned since the Company follows the practice of paying customary bonus each year. However, bonus is accounted for as and when it is paid.

11. CAPITAL SUBSIDY

Subsidies referable to specific fixed assets are deducted from cost of assets while subsidies not referable to specific fixed assets are credited to capital reserve.


Mar 31, 1996

01. BASIS OF ACCOUNTING

The financial statements of the company are prepared under historic cost convention. Income and expenditure are recognised on an accrual basis and are in accordance with the requirements of The Companies Act 1956 and generally accepted accounting principles except in the case of subsidies which are accounted as and when received.

02. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. All costs including expenses relating to the acquisition and installation of the respective fixed asset are capitalised.

03. DEPRECIATION

Depreciation has been provided on Straight Line Method(SLM) at old rates for assets acquired upto 30th November 1993, and at new rates for assets acquired after 30th November 1993, in the manner prescribed in schedule XIV to the Companies Act, 1956.

04. INVESTMENTS

Investments are stated at cost.

05. TRANSACTIONS IN FOREIGN CURRENCIES

Current Assets and Current Liabilities are translated at year end exchange rates or on actuals where actuals are available at the time of finalisation of accounts.

06. INVENTORIES

Inventories are valued at lower of cost or net realisable value. Work in progress and finished good are valued on full absorption cost basis and include material, labour and overheads.

07. MISCELLANEOUS EXPENDITURE

Advertisement expenses incurred in connection with launch of products for one full year in all areas are amortised over a period of three years, and advertisement expenditure incurred on special occasions and for certain special schemes are spread proportionately over the period for which benefit is expected to accrue and hence a part of the advertisement expenses is defferred expecting that the benefit of the same will be accrued in future only. Sampling expenses which are in the nature of advertisement and Export Market Development Expenditure for which export orders are yet to be finalised is defferred. Preliminary Expenses and Public issue Expenses are written off over a period of ten years.

08. CONTINGENT LIABILITIES

Contingent liabilities not provided for are reflected in the Notes on Accounts.

09. SALES

Sales are inclusive of all charges but net of normal trade discount and returns.

10. EMPLOYEES BENEFITS

The Company was incorporated only on 8th September 1992 and since none of the employees have completed the required number of years of service under the Payment of Gratuity Act, no provisions has been made for gratuity payable. However payments made to Life Insurance Corporation under group gratuity Insurance scheme paid during the current financial year have been charged to revenue. The Company has not made any provision for bonus for the year concerned since it is in the practice of paying customery bonus each year. However, bonus is accounted for as and when it is paid.

11. CAPITAL SUBSIDY

Subsidies referrable to specific fixed assets are deducted from cost of assets while subsidies not referrable to specific fixed assets are credited to capital reserve.


Mar 31, 1995

01. BASIS OF ACCOUNTING

The financial statements of the company are prepared under historic cost convention. Income and expenditure are recognised on an accrual basis and are in accordance with the requirements of The Companies Act 1956 and generally accepted accounting principles except in the case of subsidies which are accounted for as and when realised.

02. FIXED ASSETS.

Fixed assets are stated at cost of acquisition less depreciation. All costs including expenses relating to the acquisition and installation of the respective fixed asset are capitalised.

03. DEPRECIATION

Depreciation has been provided on Straight Line Method (SLM) at old rates for assets acquired upto 30th November 1993, at new rates for assets acquired after 30th November 1993, in the manner prescribed in schedule XIV to the Companies Act, 1956.

04. INVESTMENTS.

Investments are stated at cost.

05. TRANSACTIONS IN FOREIGN CURRENCIES.

Current Assets and Current Liabilities are translated at year end exchange rates or on actuals where actuals are available during the time of finalisation of accounts.

06. INVENTORIES

Inventories are valued at lower of cost or net realisable value. Work in progress and finished goods are valued on full absorption cost basis and include material, labour and overheads.

07. MISCELLANEOUS EXPENDITURE

Advertisement expenses incurred in connection with launch of products for one full year in all areas are amortised over a period of three years and advertisement expenditure incurred during the fag end of the current financial year is deferred to next year expecting that benefit of the same will be accrued during the next financial year only. Preliminary expenses and public issue expenditures are written off over a period of ten years.

08. CONTINGENT LIABILITIES

Contingent liabilities not provided for are reflected in the Notes on Accounts.

09. SALES

Sales are inclusive of all charges but net of normal trade discount, and returns

10. EMPLOYEES BENEFITS

The company was incorporated only on 8th September 1992 and since none of the employees have completed the required number of years of service under the Payment of Gratuity Act and Payment of Bonus Act, no provision has been made for gratuity and bonus to employees. However payments to Life Insurance Corporation under group gratuity Insurance scheme paid during the current financial year have been charged to revenue.

 
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