Mar 31, 2015
2.1) Basis of Preparation
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair value. GAAP comprises mandatory
accounting standards prescribed by the Companies (Accounting Standards)
Rules, 2006 and guidelines issued by the Securities and Exchange Board
of India (SEBI). Accounting policies have been consistently applied
except where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change n the
accounting policy hitherto in use.
2.2) Use of Estimates
The preparation of the finanicial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions
considered in the reported amount of assets and liabilities (including
contingent liabilities) and the reported income and expenditure during
the year. The management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ due to these estimates and the difference
between the actual results and the estimates as are recognized in the
period in which the results are known / materialize.
2.3) Tangible Assets
All fixed assets are stated at historical cost, net of CENVAT if
availed, less accumulated depreciation. Historical cost comprise the
purchase price and all direct costs attributable to bring the assets to
its working condition for intended use.
2.4) Intangible Assets Under Development
Intangible Assets Under Development comprises of the cost of fixed
assets that are not yet ready for their intended use at the reporting
date.
2.5) Depreciation
Depreciation has been provided based on life assigned to each asset in
accordance with Schedule II of the Companies Act, 2013.
2.6) Borrowing Cost:
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognized in
Statement of Profit and Loss in the period in which they are incurred.
2.7) Inventories
Finished goods are measured at lower of cost and net realizable value
.Cost of finished goods
comprises of cost of purchase, cost of conversion and other cost
including manufacturing overhead incurred in bringing them to their
respective present location & condition.
Cost of Raw Material, Work In Progress, Store & Spares, Packing
Material .Trading Stock is determined at FIFO Basis.
2.8) Investment
Trade Investments are the Investments made to enhance the Company's
business interests.
Investment either classified as current or long term based on
management intention. Current investment is carried at lower of cost
and fair value/quoted in each investment individually.
Long term investments are carried at cost less provisions recorded or
recognize any decline, other than temporary, in the carrying value of
each investment.
2.9) ImpairmentofTangibleAssets
The Management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
. An asset is treated as impaired when the carrying cost of
assets exceeds its recoverable value. An impairment loss is charged to
the Profit & Loss account in the year in which an assets 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.
2.10) Revenue Recognition
Revenue is recognized only when risk and rewards incidental to
ownership are transfer to customer-it can be reliably measured & it is
reasonable to expect ultimate collection. Revenue from operation
(gross) are inclusive of vat/Central sales tax, excise duty, and
adjustment for rate difference.
2.11) Provision, Contingent Liabilities And Contingent Assets
Provision is recognized in the accounts when there is a present
obligation as a result of past event(s) and it is probable that an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current
best estimates.
Contingent liabilities are disclosed unless the possibility of outflow
of resources is remote.
Contingent assets are neither recognized nor disclosed in the financial
statements.
2.12) Cash Flow Statement
Cash flow are reported using indirect method. The cash flow from
operating, financing and investing activities of the company are
segregated.
2.13) Employees Benefits
Short term employee benefits have been charged to Profit & Loss Account
on accrual basis. Post employment benefits such as Gratuity liability
is funded as per group gratuity scheme of Life Insurance of Corporation
of India.
2.14) Taxation
Taxation comprise current Income tax, deferred tax & wealth tax
.Current Income Tax provision has
been determined on the basis of relief, deductions available under the
Income Tax Act. Deferred Tax is recognized for all timing differences
subject to the consideration of prudence, applying the tax rates that
have been substantially enacted by the Balance Sheet date. Wealth Tax
is calculated on the basis of carrying value of wealth liable to tax
after deducting basic exemption available.
2.15) Foreign Currency Transactions
(i) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction.
(ii) Monetary items denominated in foreign currencies, if any, at the
end of the year are restated at year end rates.
(iii) Non monetary foreign currency items are carried at cost.
(iv) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account, except in cases where they relate to acquisition of fixed
assets, in which case, they are adjusted to the carrying cost of such
assets.
2.16) Other Income
Interest : Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable.
Dividend: Dividend from Investment are recognized when the right to
receive payment is established.
2.17) 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. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
2.18) Government Grants and subsidies
Grants & Subsidies from the government are recognized when there is
reasonable assurance that (i) the company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
When the grant or subsidy relates to revenue, it is recognized as
income on a systematic basis in the statement of profit and loss over
the periods necessary to match them with the related cost.
Mar 31, 2014
1.1) Basis of Preparation
These financial statements have been prepared in accordance with the
generally acceptedAccounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956 All assets and liabilities have been
classified as current or non-current as per the Company''snormal
operating cycle and other criteria set out in the Revised Schedule VI
to the Companies Act,1956. 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 12 months for the purpose of current - non current
classification of assets and liabilities.
2.2) Tangible Assets
All fixed assets are stated at historical cost, net of CENVAT if
availed, less accumulated depreciation. Historical cost comprise the
purchase price and all direct costs attributable to bring the assets to
its working condition for intended use.
2.3) Depreciation
Depreciation on all fixed assets is provided on the straight line
method at the rate specified in schedule XIV of the Companies Act,
1956.Depreciation is not been charged on fixed assets sold during the
year.
2.4) Borrowing Cost :
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognized in
Statement of Profit and Loss in the period in which they are incurred.
2.5) Inventories
Inventories of Raw Material, Stores & Spares, Work-in-Progress,
Finished Goods and Trading stocks are valued at lower of cost and net
realizable value. The cost of work in progress & finished goods is
determined on absorption cost basis. Raw material, Stores & Spares and
trading stocks is valued on FIFO method.
2.6) Investment
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
cost or fair value, whichever is lower. Long-term investments are
carried at cost. However, provision for diminution is made to recognize
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually
2.7) Impairment of Tangible Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss account in the year in which an assets 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.
2.8) Revenue Recognition
Revenue on sale of goods is recognized on passes of title to the
customers, Sales (gross) are inclusive of vat/Central sales tax ,
excise duty , and adjustment for rate difference .
2.9) Provision, Contingent Liabilities And Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events & it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to the accounts. Contingent assets are neither recognized nor
disclosed in thefinancial statements.
2.10) Cash Flow Statement
Cashflow are reported using indirect method. The cash flow from regular
revenue generating, financing and investing activities of the company
are segregated.
2.11) Emplyees Benefits
Short term employee benefits have been charged to Profit & Loss Account
on accrual basis. Post employment benefits such as Gratuity liability
is funded as per group gratuity scheme of Life Insurance of Corporation
of India.
2.12) Taxation
Taxation comprise current Income tax, deferred tax , wealth tax
.Current Income Tax provision has been determined
on the basis of relief, deductions available under the Income Tax Act.
Deferred Tax is recognized for all timing differences subject to the
consideration of prudence, applying the tax rates that have been
substantially enacted by the Balance Sheet date. Wealth Tax is
calculated on the basis of carrying value of wealth liable to tax after
deducting basic exemption available.
2.13) Foreign Currency Transactions
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Monetary items denominated in foreign currencies, if any , at the
end of the year are restated at year end rates.
iii) Non monetary foreign currency items are carried at cost
iv Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account, except in cases where they relate to acquisition of fixed
assets, in which case they are adjusted to the carrying cost of such
assets.
2.14) Other Income
Interest : Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable
Dividend Dividend income is recognized when the right to receive
dividend is established.
2.15) 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. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
2.16) Government Grants and subsidies
Grants & Subsidies from the government are recognized when there is
reasonable assurance that (i) the company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received. When the grant or subsidy relates to revenue, it is
recognized as income on a systematic basis in the statement of profit
and loss over the periods necessary to match them with the related
cost.
Mar 31, 2013
1.1) Basis of Preparation
These financial statements have been prepared in accordance with the
generally accepted Accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956. 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 Revised Schedule VI
to the Companies Act,1956. 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 12 months for the purpose of current  non current
classification of assets and liabilities.
1.2) Tangible Assets
All fixed assets are stated at historical cost, net of CENVAT if
availed, less accumulated depreciation. Historical cost comprise the
purchase price and all direct costs attributable to bring the assets to
its working condition for intended use.
1.3) Depreciation
Depreciation on all fixed assets is provided on the straight line
method at the rate specified in schedule XIV of the Companies Act,
1956. Depreciation is not been charged on fixed assets sold during the
year.
1.4) Borrowing Cost :
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognized in
Statement of Profit and Loss in the period in which they are incurred.
1.5) Inventories
Inventories of Raw Material, Stores & Spares, Work-in-Progress,
Finished Goods and Trading stocks are valued at lower of cost and net
realizable value. The cost of work in progress & finished goods is
determined on absorption cost basis. Raw material, Stores & Spares and
trading stocks is valued on FIFO method.
1.6) Investment
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
cost or fair value, whichever is lower. Long-term investments are
carried at cost. However, provision for diminution is made to recognize
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually
1.7) Impairment of Tangible Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss account in the year in which an assets 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.
1.8) Revenue Recognition
Revenue on sale of goods is recognized on passes of title to the
customers, Sales (gross) are inclusive of vat/Central sales tax ,
excise duty , and adjustment for rate difference .
1.9) Provision, Contingent Liabilities And Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events & it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to the accounts. Contingent assets are neither recognized nor
disclosed in the financial statements.
1.10) Cash Flow Statement
Cash flow are reported using indirect method. The cash flow from
regular revenue generating, financing and investing activities of the
company are segregated.
1.11) Emplyees Benefits
Short term employee benefits have been charged to Profit & Loss Account
on accrual basis. Post employment benefits such as Gratuity liability
is funded as per group gratuity scheme of Life Insurance of Corporation
of India.
1.12) Taxation
Taxation comprise current Income tax, deferred tax , wealth tax Current
Income Tax provision has been determined on the basis of relief,
deductions available under the Income Tax Act. Deferred Tax is
recognized for all timing differences subject to the consideration of
prudence, applying the tax rates that have been substantially enacted
by the Balance Sheet date. Wealth Tax is calculated on the basis of
carrying value of wealth liable to tax after deducting basic exemption
available.
1.13) Foreign Currency Transactions
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Monetary items denominated in foreign currencies, if any , at the
end of the year are restated at year end rates.
(iii) Non monetary foreign currency items are carried at cost. (iv)
Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the
Profit and Loss Account, except in cases where they relate to
acquisition of fixed assets, in which case, they are adjusted to the
carrying cost of such assets.
1.14) Other Income
Interest : Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable.
Dividend : Dividend income is recognized when the right to receive
dividend is established.
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. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
1.16) Government Grants and subsidies
Grants & Subsidies from the government are recognized when there is
reasonable assurance that (i) the company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
When the grant or subsidy relates to revenue, it is recognized as
income on a systematic basis in the statement of profit and loss over
the periods necessary to match them with the related cost.
Mar 31, 2012
1.1) Basis of Preparation
These financial statements have been prepared in accordance with the
generally accepted Accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
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 Revised Schedule VI to the Companies Act,1956.
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 12
months for the purpose of current - non current classification of
assets and liabilities.
1.2) Tangible Assets
All fixed assets are stated at historical cost, net of CENVAT if
availed, less accumulated depreciation. Historical cost comprise the
purchase price and all direct costs attributable to bring the assets to
its working condition for intended use.
1.3) Depreciation
Depreciation on all fixed assets is provided on the straight line
method at the rate specified in schedule XIV of the Companies Act,
1956.Depreciation is not been charged on fixed assets sold during the
year.
1.4) Borrowing Cost :
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognized in
Statement of Profit and Loss in the period in which they are incurred.
1.5) Inventories
Inventories of Raw Material, Stores & Spares, Work-in-Progress,
Finished Goods and Trading stocks are valued at lower of cost and net
realizable value. The cost of work in progress & finished goods is
determined on absorption cost basis. Raw material, Stores & Spares and
trading stocks is valued on FIFO method.
1.6) Investment
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
cost or fair value, whichever is lower. Long-term investments are
carried at cost. However, provision for diminution is made to recognize
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually
1.7) Impairment of Tangible Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss account in the year in which an assets 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.
1.8) Revenue Recognition
Revenue on sale of goods is recognized on passes of title to the
customers, Sales (gross) are inclusive of vat/Central sales tax ,
excise duty , and adjustment for rate difference .
1.9) Provision, Contingent Liabilities And Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events & it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to the accounts. Contingent assets are neither recognized nor
disclosed in the financial statements.
1.10) Cash Flow Statement
Cash flow are reported using indirect method. The cash flow from
regular revenue generating, financing and investing activities of the
company are segregated.
1.11) Employees Benefits
Short term employee benefits have been charged to Profit & Loss Account
on accrual basis. Post employment benefits such as Gratuity liability
is funded as per group gratuity scheme of Life Insurance of Corporation
of India.
1.12) Taxation
Taxation comprise current Income tax, deferred tax , wealth tax
.Current Income Tax provision has been determined
on the basis of relief, deductions available under the Income Tax Act.
Deferred Tax is recognized for all timing differences subject to the
consideration of prudence, applying the tax rates that have been
substantially enacted by the Balance Sheet date. Wealth Tax is
calculated on the basis of carrying value of wealth liable to tax after
deducting basic exemption available.
1.13) Foreign Currency Transactions
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Monetary items denominated in foreign currencies, if any , at the
end of the year are restated at year end rates.
(iii) Non monetary foreign currency items are carried at cost.
(iv) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account, except in cases where they relate to acquisition of fixed
assets, in which case, they are adjusted to the carrying cost of such
assets.
1.14) Other Income
Interest : Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable.
Dividend : Dividend income is recognized when the right to receive
dividend is established.
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. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
1.16) Government Grants and subsidies
Grants & Subsidies from the government are recognized when there is
reasonable assurance that (i) the company will comply with the
conditions attached to them, and (ii) the grant/subsidy will be
received.
When the grant or subsidy relates to revenue, it is recognized as
income on a systematic basis in the statement of profit and loss over
the periods necessary to match them with the related cost.
Mar 31, 2010
01. METHOD OF ACCOUNTING
The Company follows the mercantile system of accounting and all
significant items of incomes and expenditure are accounted for on
accrual basis. Claims / lodgments / refunds not ascertainable with
certainty are accounted for on cash basis.
02. FIXED ASSETS AND CAPITAL WORK Ã IN - PROGRESS
All fixed assets are stated at historical cost, net of CENVAT if
availed, less accumulated depreciation. Historical costs comprise the
purchase price and all direct costs attributable to bring the assets to
its working condition for intended use.
03. DEPRECIATION
Depreciation on all fixed assets is provided on the straight line
method at the rate specified in schedule XIV of the Companies Act,
1956.Depreciation is not been charged on fixed assets sold during the
year.
04. VALUE OF INVENTORIES
Inventories of Raw Material, Stores & Spares, Work-in-Progress,
Finished Goods and Trading stocks are valued at lower of cost and net
realizable value. The cost of work in progress & finished goods is
determined on absorption cost basis. Raw material, Stores & Spares and
trading stocks is valued on FIFO method.
05. INVESTMENT
Long Term Investments are carried at cost less provision for
diminution, only if, decline is other than temporary, in the opinion
the management.
06. IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss account in the year in which an assets 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.
07. REVENUE RECOGNITION
Revenue on sale of goods is recognized on passes of title to the
customers, Sales (gross) are inclusive of vat/sales tax , excise duty ,
and adjustment for rate difference .
08. PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS.
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events & it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the notes
to the accounts. Contingent assets are neither recognized nor disclosed
in the financial statements.
09. CASH FLOW STATEMENT
Cash flow are reported using indirect method. The cash flow from
regular revenue generating, financing and investing activities of the
company are segregated.
10. EMPLOYEES BENEFITS
Short term employee benefits have been charged to Profit & Loss Account
on accrual basis. Post employment benefits such as Gratuity liability
is funded as per group gratuity scheme of Life Insurance of Corporation
of India.
11. TAXATION
Taxation comprise current Income tax, deferred tax ,Fringe Benefit tax
and wealth tax .Current Income Tax provision has been determined on the
basis of relief, deductions available under the Income Tax Act.
Deferred Tax is recognized for all timing differences subject to the
consideration of prudence, applying the tax rates that have been
substantially enacted by the Balance Sheet date. Wealth Tax is
calculated on the basis of carrying value of wealth liable to tax after
deducting basic exemption available.
12 FOREIGN CURRENCY TRANSACTIONS
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the transaction.
(ii) Monetary items denominated in foreign currencies, if any , at the
end of the year are restated at year end rates.
(iii) Non monetary foreign currency items are carried at cost.
(iv) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss Account,
except in cases where they relate to acquisition of fixed assets, in which
case, they are adjusted to the carrying cost of such assets.