Mar 31, 2014
A) Basis of preparation of financial statements
The financial statements have been prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
(GAAP) and provisions of the Companies Act 1956, read with the
Companies (Accounting Standard) Rules, 2006 (Accounting Standard Rules)
as well as applicable pronouncements of the Institute of Chartered
Accountant of India.
b) Use of estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. The estimates and assumptions used in
the accompanying financial statements are based upon management''s
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c) Revenue recognition
Sales are recorded net of trade discounts, sales tax/ value added tax,
rebates and excise duty. Revenue from sale of products is recognised
when the significant risks and rewards of ownership of the goods have
passed to the buyer. Revenue is recognised to the extent that it is
probable that the economic benefits will flow to the Company and can be
reliably measured.
d) Inventories:
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on FIFO basis.
e) Investments
Investments are classified into non current investments and current
investments. Investments which are intended to be held for more than
one year are classified as non current investments and investments
which are intended to be held for less than one year, are classified as
current investments. Non current investments are stated at cost and a
provision for diminution in value of non current investments is made
only if the decline is other than temporary in the opinion of the
management. Current investments are valued at cost or market/fair value
which ever is lower.
f) Provisions, Contingent Liabilities and Contingent Asset
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or present obligation in respect of which the likelihood of
outflow of resource is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that
the outflow of resources would be required to settle the obligation,
the provision is reversed.
Contingent assets are not recognised in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the assets and
related income are recognized in the period in which the change occurs.
g) Fixed assets and depreciation
I. Fixed assets are stated at cost of acquisition and installation 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.
ii. Depreciation on Fixed Assets is provided on Straight Line Method at
the rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956
iii. Fixed assets costing less than Rs 5,000 are fully depreciated in
the year of purchase.
iv. Expenses incurred on Project and other charges during construction
period are included under pre-operative expenditure (grouped under
Capital Work in Progress) and are allocated to the cost of Fixed Assets
on the commencement of commercial operations.
h) Impairment of assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such condition exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount of the asset or recoverable amount of the cash
generating units to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account.
If at the Balance Sheet date there is an indication that if previously
assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at revised recoverable amount.
i) Foreign currency transactions
a) Transactions denominated in foreign currency are normally recorded
at the exchange rate prevailing at the time of transaction.
b) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account.
c) Monetary items denominated in foreign currencies at the year end are
restated at the year end rates.
j) Retirement benefits
Retirement benefits are dealt with in the following manner:
(1) Contribution to Provident Fund and Family Pension Fund are
accounted on accrual basis with corresponding contribution to relevant
authorities.
(2) Encashment of leave lying to the credit of employees is not
provided for on actuarial basis. It is accounted on accrual basis.
Therefore, it is not possible to ascertain the liability at the end of
the accounting year.
(3) Liabilities in respect of gratuity of employees are accounted as
and when incurred.
k) Taxation
a. Current Tax:
Provision for tax is based on the taxable profit for the accounting
year after taking into consideration the relevant provisions of the
Income Tax Act, 1961.
b. Deferred Tax:
Deferred tax resulting from timing difference between accounting and
taxable income is accounted for using the tax rates and laws that are
enacted or substantively enacted on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
there is a virtual certainty that the asset will be realised in future.
l) Borrowing Cost:
Interest and other costs incurred in connection with the borrowing of
the funds are charged to revenue on accrual basis except those
borrowing costs which are directly attributable to the acquisition or
construction of those fixed assets, which necessarily take a
substantial period of time to get ready for their intended use. Such
costs are capitalized with the fixed assets.
m) Earnings per share
The basic earnings per share is computed by dividing the net profit /
loss attributable to the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earnings per share comprises the weighted average number of shares
considered for deriving earnings per share, and also the weighted
average number of equity shares, which could have been issued on the
conversion of all dilutive potential shares. In computing dilutive
earnings per share, only potential equity shares that are dilutive and
that reduce profit / loss per share are included.
n) Cash and cash equivalent
Cash and cash equivalent for the purpose of cash flow statement
comprised cash at bank and cash in hand and other short term investment
with maturity of three months or less
Mar 31, 2013
A) Basis of preparation of financial statements
The financial statements have been prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
(GAAP) and provisions of the Companies Act 1956, read with the
Companies (Accounting Standard) Rules, 2006 (Accounting Standard Rules)
as well as applicable pronouncements of the Institute of Chartered
Accountant of India.
b) Use of estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. The estimates and assumptions used in
the accompanying financial statements are based upon management''s
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c) Revenue recognition
a) Sales are recorded net of trade discounts, sales tax/ value added
tax, rebates and excise duty. Revenue from sale of products is
recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer. Revenue is recognised to the extent
that it is probable that the economic benefits will flow to the Company
and can be reliably measured.
b) Interest income is recognised on time proportion basis.
d) Inventories:
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on FIFO basis.
e) Investments
Investments are classified into non current investments and current
investments. Investments which are intended to be held for more than
one year are classified as non current investments and investments
which are intended to be held for less than one year, are classified as
current investments. Non current investments are stated at cost and a
provision for diminution in value of non current investments is made
only if the decline is other than temporary in the opinion of the
management. Current investments are valued at cost or market/fair value
whichever is lower.
f) Provisions, Contingent Liabilities and Contingent Asset
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or present obligation in respect of which the likelihood of
outflow of resource is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognised in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the assets and
related income are recognized in the period in which the change occurs.
g) Fixed assets and depreciation
i. Fixed assets are stated at cost of acquisition and installation 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.
ii. Depreciation on Fixed Assets is provided on Straight Line Method at
the rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956
iii. Fixed assets costing less than Rs 5,000 are fully depreciated in
the year of purchase.
iv. Expenses incurred on Project and other charges during construction
period are included under preoperative expenditure (grouped under
Capital Work in Progress) and are allocated to the cost of Fixed Assets
on the commencement of commercial operations.
h) Impairment of assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such condition exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount of the asset or recoverable amount of the cash
generating units to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account.
If at the Balance Sheet date there is an indication that if previously
assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at revised recoverable amount.
i) Foreign currency transactions
a) Transactions denominated in foreign currency are normally recorded
at the exchange rate prevailing at the time of transaction.
b) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account.
c) Monetary items denominated in foreign currencies at the year end are
restated at the year end rates.
d) Non monetary items denominated in foreign currencies are carried at
cost. j) Retirement benefits
Retirement benefits are dealt with in the following manner:
(1) Contribution to Provident Fund and Family Pension Fund are
accounted on accrual basis with corresponding contribution to relevant
authorities
(2) Encashment of leave lying to the credit of employees is not
provided for on actuarial basis. It is accounted on accrual basis.
Therefore, it is not possible to ascertain the liability at the end of
the accounting year.
(3) Liabilities in respect of gratuity of employees are accounted as
and when incurred.
k) Taxation
a. Current Tax:
Provision for tax is based on the taxable profit for the accounting
year after taking into consideration the relevant provisions of the
Income Tax Act, 1961.
b. Deferred Tax:
Deferred tax resulting from timing difference between accounting and
taxable income is accounted for using the tax rates and laws that are
enacted or substantively enacted on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
there is a virtual certainty that the asset will be realised in future.
1) Borrowing Cost:
Interest and other costs incurred in connection with the borrowing of
the funds are charged to revenue on accrual basis except those
borrowing costs which are directly attributable to the acquisition or
construction of those fixed assets, which necessarily take a
substantial period of time to get ready for their intended use. Such
costs are capitalized with the fixed assets.
m) Earnings per share
The basic earnings per share is computed by dividing the net profit /
loss attributable to the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earnings per share comprises the weighted average number of shares
considered for deriving earnings per share, and also the weighted
average number of equity shares, which could have been issued on the
conversion of all dilutive potential shares. In computing dilutive
earnings per share, only potential equity shares that are dilutive and
that reduce profit /loss per share are included.
n) Cash and cash equivalent
Cash and cash equivalent for the purpose of cash flow statement
comprised cash at bank and cash in hand and other short term investment
with maturity of three months or less
Mar 31, 2012
A) Basis of preparation of financial statements
The financial statements have been prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
(GAAP) and provisions of the Companies Act 1956, read with the
Companies (Accounting Standard) Rules, 2006 (Accounting Standard Rules)
as well as applicable pronouncements of the Institute ofChartered
Accountant of India.
b) Use of estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. The estimates and assumptions used in
the accompanying financial statements are based upon management's
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c) Revenue recognition
a) Sales are recorded net of trade discounts, sales tax/ value added
tax. rebates and excise duty. Revenue from sale of products is
recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer. Revenue is recognised to the extent
that it is probable that the economic benefits will flow to the Company
and can be reliably measured.
b) Interest income is recognised on time proportion basis.
d) Inventories:
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on FIFO basis.
e) Investments
Investments are classified into non current investments and current
investments. Investments which are intended to be held for more than
one year are classified as non current investments and investments
which are intended to be held for less than one year, are classified as
current investments. Non current investments are stated at cost and a
provision for diminution in value of non current investments is made
only if the decline is other than temporary in the opinion ofthe
management. Current investments are valued at cost or market/fair value
whichever is lower.
f) Provisions, Contingent Liabilities and Contingent Asset
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or present obligation in respect of which the likelihood of
outflow of resource is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognised in the financial statements.
However, contingent assets are assessed continually and ifit i s
virtually certain that an economic benefit will arise, the assets and
related income are recognized in the period in which the change occurs.
g) Fixed assets and depreciation
i. Fixed assets are stated at cost of acquisition and installation 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.
ii. Depreciation on Fixed Assets is provided on Straight Line Method at
the rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956
iii. Fixed assets costing less than Rs 5,000 are fully depreciated in
the year of purchase.
iv. Expenses incurred on Project and other charges during construction
period are included under preoperative expenditure (grouped under
Capital Work in Progress) and are allocated to the cost of Fixed Assets
on the commencement of commercial operations.
h) Impairment of assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such condition exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount of the asset or recoverable amount of the cash
generating units to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account.
If at the Balance Sheet date there is an indication that if previously
assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at revised recoverable amount.
i) Foreign currency transactions
a) Transactions denominated in foreign currency are normally recorded
at the exchange rate prevailing at the time of transaction.
b) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account.
c) Monetary items denominated in foreign currencies at the year end are
restated at the year enc rates.
d) Non monetary items denominated in foreign currencies are carried at
cost,
j) Retirement benefits
Retirement benefits are dealt with in the following manner:
(1) Contribution to Provident Fund and Family Pension Fund are
accounted on accrual basis with corresponding contribution to relevant
authorities
(2) Encashment of leave lying to the credit of employees is not
provided for on actuarial basis. It is accounted on accrual basis.
Therefore, it is not possible to ascertain the liability at the end of
the accounting year.
(3) Liabilities in respect of gratuity of employees are accounted on
accrual basis.
k) Taxation
a. Current Tax:
Provision for tax is based on the taxable profit for the accounting
year after taking into consideration the relevant provisions of the
Income Tax Act, 1961.
b. Deferred Tax:
Deferred tax resulting from timing difference between accounting and
taxable income is accounted for using the tax rates and laws that are
enacted or substantively enacted on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
there is a virtual certainty that the asset will be realised in future.
I) Borrowing Cost:
Interest and other costs incurred in connection with the borrowing of
the funds are charged to revenue on accrual basis except those
borrowing costs which are directly attributable to the acquisition or
construction of those fixed assets, which necessarily take a
substantial period of time to get ready for their intended use. Such
costs are capitalized with the fixed assets.
m) Earnings per share
The basic earnings per share is computed by dividing the net profit /
loss attributable to the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earnings per share comprises the weighted average number of shares
considered for deriving earnings per share, and also the weighted
average number of equity shares, which could have been issued on the
conversion of all dilutive potential shares. In computing dilutive
earnings per share, only potential equity shares that are dilutive and
that reduce profit / loss per share are included.
n) Cash and cash equivalent
Cash and cash equivalent for the purpose of cash flow statement
comprised cash at bank and cash in hand and other short term investment
with maturity of three months or less
Mar 31, 2011
1 Basis of Accounting
The financial statements are prepared on the historical cost convention
basis, in accordance with the normally accepted accounting principles
and the provision of the Companies Act, 1956 and Accounting Standards
issued by the Institute of Chartered Accountants of India.
2 Revenue Recognition
Income and Expenditure are recognized and accounted on accrual basis.
3 Use of Estimates
The preparation of Financial Statement in conformity with generally
accepted accounting principles requires estimate and assumptions to be
made that affect the reported amount of assets and liabilities on the
day of the financial statements and the reported amounts of revenues
and expenses during the reporting period Inference between actual
results and estimate are recognized in the period in which the results
are known /materialized.
4 Fixed Assets
Fixed Assets are stated at the cost of acquisition or construction.
Cost comprises of the purchase price and other attributable costs. They
are stated at historical cost.
5 Depreciation
Depreciation on Fixed Assets has been provided on straight line method
at the rate prescribed in Schedule XIV of the Companies Act, 1956
Depreciation on additions during the year is provided on pro-rata basis
from the date of acquisition and put to use till the date of Balance
Sheet
6 Investments
Investments held by the company are Long term investments as per
Accounting Standard 13 ' Accounting for investment' issued by the
Institute of Chartered Accountant of India.
7 Inventories
The imparted raw material is valued at purchase cost plus Insurance,
Freight, and Import Duty Indigenous raw materials, Components and
Finished goods are stated at cost
Cost comprises all cost of purchase, cost of conversion and other cost
incurred in bringing the inventories of finished goods to their present
location and condition.
8 Foreign Currency Transactions
Foreign currency transactions are accounted at exchange rate prevailing
on the date transaction takes place Monetary items outstanding at the
year end are translated at the exchange rate prevailing on the last
date of the accounting year.
9 Taxes on Income
Provision for income tax is made on the of estimated taxable income for
The year. Deferred tax resulting from timing differences between
taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent period.
10 Contingent Liabilities
The Directors of the opinion to the contingent liabilities would occur
to the company.
11 Miscellaneous expenditure
Preliminary expenses shown under the head Miscellaneous Expenditure,
other than Amalgamation Expenses have been written off during the year
as per the provisions of the Income Tax act, 1961.
12 Segment Information
Primary segment information (By Business segment): The Company is
engaged in the business of Electrical which constitute single business
segment
13 Deferred Tax
Deferred tax is recognized or all timing differences, subject to
consideration of prudence, applying tax rates That has been
substantively enacted by the balance sheet date. Deferred tax assets
not recognized unless there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax asset
can De realized.
14 Earnings per Share
Basic EPS are calculated by dividing the net profit or loss for the
period attributable to equity shareholders by The weighted number of
outstanding shares during the year
Mar 31, 2010
1. Basis of Accounting
The financial statements are prepared on the historical cost convention
basis, in accordance with the normally accepted accounting principles
and the provision of the Companies Act, 1956 and Accounting Standards
issued by the Institute of Chartered Accountants of India.
2. Income Recognition
Income and Expenditure are recognized and accounted on accrual basis.
3. Use of Estimates
The preparation of Financial Statement in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the
day of the financial statements and the reported amounts of revenues
and expenses during the reporting period Difference between actual
results and estimates are recognized in the period in which the results
are known / materialized.
4. Fixed Assets
Fixed Assets are stated at the cost of acquisition or construction.
Cost comprises of the purchase price and other attributable costs. They
are stated at historical cost.
5. Depreciation
Depreciation onFixed Assets has been provided on straight line method
at the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is provided on pro-rata basis
from the date of acquisition and put to use till the date of Balance
Sheet.
6. Investments
Investments held by the company are Long term investments as per
Accounting Standard 13 Accounting for investment issued by the
Institute of Chartered Accountant of India.
7. Inventoties
The Imported raw material is valued at purchase cost plus Insurance,
Freight, and Import Duty.
Indigenous raw materials, Components and Finished goods are stated at
cost.
Cost comprises all cost of purchase, cost of conversion and other cost
incurred in bringing the inventories of finished goods to their present
location and condition.
8. Foreign Currency Transaction
Foreign currency transactions are accounted at exchange rates
prevailing on the date transaction takes place.
Monetary items outstanding at the year end are translated at the
exchange rate prevailing on the last date of the accounting year.
9. Taxes on Income
Provision for income tax is made on the basis of estimated taxable
income for the year. Deferred tax resulting from timing differences
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent period.
10. Contingent Liabilities
The Directors are of the opinion that no contingent liabilities would
occur to the company.
11. Miscellaneous expenditure
Preliminary expenses shown under the head Miscellaneous Expenditure,
have been written off during the year as per the provisions of the
Income Tax act, 1961.
12. Segment Information
Primary segment information (By Business segment): The Company is
engaged in the business of Electrical, Which constitute single business
segment.