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

Accounting Policies of Delma Infrastructure Ltd. Company

Mar 31, 2014

1. Corporate Information

The company is in the business of Infrastructure Development and Construoiion acuities.

2. Significant accounting policies

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the General Accepted Aocounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Company (Accounting Standards) Rules 2006 (as amended) and the relevant Companies Act 1956. The financial statements have been prepared an accrual bass under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts 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 Ihe financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

2.3 Inventorios

Stock is valued at cost or net realisable value whichever is lower.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits and banks.

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

2.7 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards at ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

Income from services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related coats are incurred Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the contract using the proportionate completion method with contract costs determining the degree of completion. Foreseeable losses on such contracts are recognised when probable.

Revenues from maintenance contacts are recognised pro-rata over the period of the contract.

2.8 Other Income

lnterest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.9 Tangible fixed assets

Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets.

2.10 Intangible assets

Research and Development - Revenue Expenditure on Research and Development is charged against the profit of the year in which it is incurred. Capital expenditure on Research and Development shown as an addition to Fixed Assets.

2.11 Foreign currency transactions and translations

Foreign Currency Transactions - Foreign Currency Transactions are accounted for at the exchange rate prevaling on the date of such transactions where such transactions are not covered by Forward Contracts. Gains end Loss arising out of the fluctuation of exchange rate are accounted for at the time Of realizations and payments. Exchange differences relating to long term foreign currency monetary items to the extent they are used for financing of acquisition of fixed assets are added to the cost of the fixed assets.

2.12 Government grants, subsidies and export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants/subsidy will be received. Government grants whose primary condition is that the Company should purchase construct or otherwise acquire capital assets presented by deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Government grants in the nature of promoters'' contribute like investment subsidy, where no repayment is ordinarily expected in respect thereof, are treated as capital reserve. Government grants in the form of non-monetary assets given at a concessional rate, are recorded on the basis of their acquisition cost. In case the non-monetary asset is given free of cost the grant is recorded at a nominal value.

Other government grants and subsidies are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis.

2.13 Investments

These are valued at cost. Gain/Loss on these investments are accounted at the time of sale/disposal.

2.14 Employee benefits

Provision for Retirement Benefits - Liabilities in respect of Retirements Benefits to employees are accounted for on actual payment basis. No provision is being made for liabilities on actuarial valuation as required by Accounting Standard AS 15.

2.15 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying asset upto the data of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

2.16 Segment reporting

The company is engaged in infrastructure development and construction business which are as per Accounting Standard 17 (AS -17) "Segment Reporting issued by the Institute of Chartered Accountants of India, is considered the only reportable business segment of the Company.

2.17 Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of Profit and Loss on a straight-line basis.

2.10 Earnings per Share

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a late date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares) Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

2.19 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternative Tax (MAT) paid in accordance with the tax Iaws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the Taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities ere recognised for all timing differences Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainly that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

2.20 Research and development expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charges to the Statement of Profit and Loss unless a product''s technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

2.21 Impairment of assets

The carrying values of assets/cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment Ioss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Pofit and Loss, except in case of revalued assets.

2.22 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and 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 (excluding refinement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. Those are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

2.23 Share issues expenses

Share issue expenses and redemption premium are adjusted against the Securities Premium Account as permissible under Section 78 (2) of the Companies Act, 1956 to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is earned as an asset and is amortised over a period of 5 years from the date of the issue of shares.

2.24 Insurance claims

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

2.25 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing/utilising the credits.


Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management tc make estimates and assumptions considered in the reported amounts of assets and liabilities (includinc contingent liabilities) and the reported income and expenses during the year. The Management believes thai the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories

Stock is valued at cost or net realisable value whichever is lower.

1.4 Cash and cash equivalents {for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits and banks.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of pasl dr fiifdre cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV tc the Companies Act, 1956

1.7 Revenue recognition

sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards o ownership to the i buyer, which generally coincides with the delivery of goods to customers.

Income from services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred. Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the contract using the proportionate completion method, with contract costs determining the degree of completion. Foreseeable losses on such contracts are recognised when probable.

Revenues from maintenance contracts are recognised pro-rata over the period of the contract.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive il is established.

1.9 Tangible fixed assets

Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisiton and installation of the concerned assets.

1.10 Intangible assets

Research and Development - Revenue Expenditure on Research and Development is charged against the profit of the year in which it is incurred. Capital expenditure on Research and Development is shown as an addition to Fixed Assets

1.11 Foreign currency transactions and translations

Foreign Currency Transactions - Foreign Currency Transactions are accounted for at the exchange rate prevaling on the date of such transactions where such transactions are not covered by Forward Contracts. Gains and Loss arising out of the fluctuation of exchange rate are accounted for at the time of realizations and payments. Exchange differences relating to long term foreign currency monetory items to the extent they are used for financing of acquisition of fixed assets are added to the cost of the fixed assets.

1.12 Government grants, subsidies and export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received. Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire capital assets are presented by deducting them from the carrying value of the assets. The grant is recognised as over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for in the year of exports based on eligibility and when there is no utfoeftaiRty in receiving the same.

Government grants in the nature of promoters'' contribution like investment subsidy, where no repay''megUg ordinarily expected in respect thereof, arelreated as capital reserve. Government grants in the form of nfift; monetary assets, given at a concessional rate, are recorded on the basis of their acquisition cost. In case the non-monetary asset is given free of cost, the grant is recorded at a nominal value.

Other government grants and subsidies are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis,

FORDEUW

1.13 Investments

These are valued at cost. Gain/Loss on these investments are accounted at the time of sale/disposal.

1.14 Employee benefits

Provision for Retirement Benefits - Liabilies in respect of Retirements Benefits to employees are accounted for on actual payment basis. No provision is being made for liabilities or actuarial valuation as required by Accounting Standard AS 15.

1.15 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, atlocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.16 Segment reporting

The company is engaged in infrastructure development and construction business which are as per Accounting Standard 17 (AS -17) "Segment Reporting issued by the Institute of Chartered Accountants of India, is considered the only reportable business segment of the Company.

1.17 Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

1.18 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect extraordinary items, if any) by the weighted average number of equity shares outstanding during thenar; Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effecJTpf extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relajifig to the dilutive potential equity shares, by the weighted average number of equity shares consideredr deriving basic earnings per share and the weighted average number of equity shares which could have beejr issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to''be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate. FOR DElMATWRRASTRljCTlIP,.

1.19 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly. MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flew to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income 3nd the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other ilems only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

1.20 Research and development expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product''s technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

1.21 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are revito impairment. If any indication of impairment exists, the recoverable amount of such assets is and impairment is recognised, if the carrying amount of these assets exceeds their recoverable arHoTiht. The recoverable amount is the greater of the net selling price and their value tn use. Value in use is amyhd discounting the future cash flows to their present value based on an appropriate discount factor. Wfyin there is indication that an impairment loss recognised for an asset in earlier accounting periods no may have decreased, such reversal of impairment loss is recognised tn the Statement of Profit except in esse of revalued assets.

1.22 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the estimate tan be made. Provisions (excluding retirement benefits) are to Frieff determined based on the best estimate required to settle the obligation at the Balance Sheet date. Thise at reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. in the Notes.

1.23 Share issues expenses

Share issue expenses and redemption premium are adjusted against the Securities Premium Account as permissible under Section 78(2) of the Companies Act, 1956: to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years from the date of the issue of shares.

1.24 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

1.25 Service tax input credit

Service lax input credit is accounted for in the books in feiwoyiWfig service received is accounted and when there is no uncertainty.


Mar 31, 2012

1.1 Basis of accounting and preparation of Fnancial statements

The financial statements of the Company have been prepared in accordance with the generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses 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 differences between the actural results and the estimates are recognised in the periods in which the results are known/materialise.

1.3 Inventories

Stock is vaiued at cost or net realizable value whichever is lower

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash flows from operating, investing and financing activities of the company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.9 Tangible fixed assets

Fixed Assets, are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets.

1.10 Intangible assets

Research and Development-Revenue expenditure on Research and Development is charged against the profit of the year in which it is incurred. Capital Expenditure on Research and Development is shown as an addition to the Fixed Assets.

1.11 Foreign currency transactions and translations

Foreing Currency transactions:- Foreign Currency transactions are accounted for at the exchange rate prevating on the date of such transactions where such transactions are not covered by Forward Contracts. Gains/Loses arising out of the fludtuation to the exchange rate are accounted for at the time of realization/payments. Exchange differences relating to long term foreign currency monetary items, to the extent they are used for financing the acquisition of fixed assets are added to the cost of such fixed assets.

1.12 Government grants, subsidies add export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received, Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire capital assets are presented by deducting them from the carrying value of the assets. The giant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receding the same.

Government grants in the nature of promoters'' contribution like investment subsidy, where no repayment is ordinarily expected in respect thereof, are treated as capital reserve, Government granis in the form of non-monetary assets, given at a concessional rate, are recorded on the basis of their acquistion cost. In case the non-monetary asset is given free of cost, the grant is recorded at a nomrnal value.

Other government grants and subsidies are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis.

1.13 investments

These are valued at cost. Gain/Loss on these investments are accounted for at the time of sale/disposal.

1.14 Employee benefits

Provision for Retirement Benefits:- Liabilities in respect of Retirement Benefits to employees are accounted for on actual payment basis. No provision is being made for Liabilities on actuarial valuation as required by Accounting Standard AS 15.

1.15 Borrowing costs

Borrowing costs mclude interest, amortisation of ancillary costs incurred and exchange differences arising from foreig currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the statement of profit and loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.16 Segment reporting

The Company is engaged in Trading business which, as per Accounting Standard 17(AS-17) "Segment Reporting issued by the institute of Chartered Accountants of India, is considered the only reportable business segment of the company.

1.17 Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating ieases. Lease rentails under operating leases are recognised in the Statement or Profit and Loss on a straight-line basis.

1.18 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit /(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/ reverse share splits and bonus shares, as appropriate.

1.19 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that ruture economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that orignate in one period and are capable of reversal in one or more subsequent periods Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unobserved depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainly exists that sufficient future taxable income will be available against which these can be realised Deferred iax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet eate for their realisabrlily.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

1.20 Research and development expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss Development costs of products are also charged to ihe Statement of Profit and Loss unless a product''s technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

1.21 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists the recoverable amount of such assets is estimated and impairment is recognised, it the carrying amount of these assets exceeds their, recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to ther present value based on an appropriate discount factor When there is indication that an impairment loss recognised for an asset in eariier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.22 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the 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 liabilities are disclosed in the Noies.

1.23 Share issues expenses

Share issue expenses and redemption premium are adjusted against the Securities Premium Account as permissible under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is arrortised over a period of 5 years from the date of the issue of shares.

1.24 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

1.25 Service lax Input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.


Mar 31, 2011

A) STATEMENT OF ACCOUNTING POLICIES:

These accounts are prepared under the historical cost convention and materially comply with the mandatory accounting standards used by the Institute of Chartered Accountants of India (ICAI). The significant accounting policies followed by the Company are stated below

1) Revenue Recognition

The Books of accounts are maintained on accrual basis expect where stated otherwise.

2) Sales

Sales are exclusive of excise duty and sales tax7 wherever applicable.

3) Fixed Assets

(i) Fixed Assets, are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets.

(ii) Depreciation on fixed assets is provided on Straight Line Method in accordance with the rates specified in schedule XTV of the Companies Act, 1956.

4) Investments

These are valued at cost. Gain/Loss on these investments are accounted for at the time of sale /disposal.

5) Incidental Expenditure during Construction

All indirect expenses incurred during Project Implementation including interest cost on funds deployed for the project as well as trial run expenses are treated as Incidental expenditure during Construction and subsequently capitalized.

6) Inventories

Stock is valued at cost or net realizable value whichever is lower.

7) Provision for Retirement Benefits

The liabilities in respect of Retirement Benefits to employee are accounted for on actual payment basis. No provision is being made for liabilities on actuarial valuation.


Mar 31, 2010

These accounts are prepared under the historical cost convention and materially comply with the mandatory accounting standards used by the Institute of Chartered Accountants of India (ICAI). The significant accounting policies followed by the Company are stated below:

1) Revenue Recognition

The Books of accounts are maintained on accrual basis expect where stated otherwise.

2) Sales

Sales are exclusive of excise duty and sales tax.

3) Fixed Assets

(i) Fixed Assets, are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets.

(ii) Depreciation on fixed assets is provided on Straight Line Method in accordance with the rates specified in schedule XIV of the Companies Act, 1956.

4) Investments

These are valued at cost. Gain/Loss on these investments are accounted for at the time of sale /disposal.

5) Incidental Expenditure during Construction

All indirect expenses incurred during Project Implementation including interest cost on funds deployed for the project as well as trial run expenses are treated as Incidental Expenditure during Construction and subsequently capitalized.

6) Inventories

Stock is valued at cost or net realizable value whichever is lower.

7) Provision for Retirement Benefits

The liabilities in respect of Retirement Benefits to employee are accounted for on actual payment basis. No provision is being made (Letter not visibal) actuarial valuation.


Mar 31, 2008

These accounts are prepared under the historical cost convention and materially comply with the mandatory accounting standards used by the Institute of Chartered Accountants of India (ICAI). The significant accounting policies fbiowed by the Company are stated below:

1) Revenue Recognition

The Books of accounts are maintained on accrual basis expect where stated otherwise.

2) Sales

Sales are exclusive of excise duty and sales tax,

3) Fixed Assets

(i) Fixed Assets, are stated at their original cost of acquisition includingtaxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets.

(ii) Depreciation on fixed assets is provided on Straight Line Method in accordance with the rates specified in schedule XTV of the Companies Act, 1956.

4) Investments

These are valued at cost Gain/Loss on these investments are accounted for at the time of sale /disposal.

5) Incidental Expenditure during Construction

All indirect expenses incurred during Project Implementation including interest cost on funds deployed for the project as well as trial run expenses are treated as Incidental Expenditure during Construction and subsequent capBafcred.

6) Inventpries

Stock is valued at cost or net realizable value whichever is lower.

7) Provision for Retirement Benefits

The liabilities In respect of Retirement Benefits to employee are accounted for on actual payment basis. No provision is being made for fiabSWes on actuarial valuation.

 
Subscribe now to get personal finance updates in your inbox!