Mar 31, 2014
A. AS - 1 Disclosure of accounting policies : -
The Financial statements are prepared under the accrual basis following the historical cost convention in accordance with generally accepted accounting principals (GAAP), and in accordance with the requirement of the Companies Act, 1956 and Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006 prescribed by the Central Government.
The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets & Liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which results are known/ materialized.
b. AS - 2 Valuation of Inventory : -
Raw Material : At Lower of Cost or Net realizable value.
Semi-finished goods : At estimated cost.
Finished goods : At Lower of Cost or Market Value
c. AS - 3 Cash Flow Statements
Cash flow statement has been prepared by indirect method as prescribed in the AS-3
d. AS - 4 Contingencies and Events Occurring After the Balance Sheet Date : -
Effects of, events occurred after Balance Sheet date and having material effect on financial statements are reflected in the accounts at appropriate places.
e. AS - 5 Net Profit or loss for the period, prior period items and changes in accounting policies : -
Material items of prior period, non-recurring and extra ordinary items are shown separately, If any.
f. AS - 6 Depreciation accounting : -
The Company has provided depreciation under Written Down Value method at a rate prescribed in Income Tax Act, 1961, on Single Shift and Pro rata basis.
In respect of assets added/sold during the year, pro-rata depreciation has been provided at the rates prescribed under Income Tax Act 1961
g. AS - 9 Revenue Recognition
Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.
Interest Income is Recognized on a time proportion basis taking into account the amount outstanding and the rate applicable i.e. on the basis of matching concept.
Dividend from investments in shares / units is recognized when the company.
Other items of Income are accounted as and when the right to receive arises.
h. AS - 10 Accounting for Fixed Assets :-
Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use less CENVAT claimed.
i. AS - 11 Accounting for effects of changes in foreign exchange rates :-
(a) . Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transactions.
(b) . Any income or expenses on account of exchange difference either on settlement or on Balance sheet Valuation 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.
(C). Foreign currency transactions accounts are given in the notes of accounts.
j. AS - 15 Employees Retirement Benefit Plan :-
a. Provident Fund :-
Provident fund is a defined contribution scheme as the company pays fixed contribution at pre-determined rates. The obligation of the company is limited to such fixed contribution. The contributions are charged to Profit & Loss A/c.
b. Gratuity :-
Gratuity is paid as and when employee is retired. It is not determined on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
k. AS - 16 Borrowing Cost :-
Borrowing costs directly attributable to the acquisition of qualifying assets are capitalized till the same is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing cost is charged to revenue.
l. AS - 18 Related Party Disclosure:-
The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are given in notes of accounts.
m. AS - 19 Accounting for Leases :-
The Company has not entered into any lease agreements during the year.
n. AS - 20 Earnings Per Share :-
Disclosure is made in the Notes of accounts as per the requirements of the standard.
o. AS - 21 Consolidated Financial Statements:-
* Basis of Accounting :-
* The financial statements of the subsidiary companies used in the consolidation are drawn up to the same reporting date as of the company ie. Year ended March, 31, 2014.
* The financial statements of the company and its subsidiary companies have been prepared in accordance with the Accounting Standards, issued by the Institute of Chartered Accountants of India, and generally accepted accounting principles.
Principles of Consolidation:-
The consolidation financial statements have been prepared on the following basis :
* The financial statements of the Parent Company and its subsidiaries have been consolidated on a line-by-line basis by adding together the book values of the like items of assets, liabilities, income and expenses, after eliminating intra-group balances and the unrealized profits/losses on intra-group transactions, and are presented to the extent possible, in the same manner as the Parent Company''s independent financial statements.
* The Consolidated financial statements are prepared by adopting uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as that followed by the company in its separate financial statements.
* Capital reserve represents the share of the equity in the subsidiary companies as on the date of investments, is in excess of cost of investments of the company, it is recognized as Capital Reserve and shown under the head Reserves and Surplus in the consolidated financial statements as per Accounting Standard (AS) 21 "Consolidated Financial Statements".
* Minority interest represents that part of the net profit or loss and net assets of subsidiaries attributable to interests which are not owned, directly or indirectly, by the Group.
p. AS - 22 Accounting for Taxes on Income :-
Provision for current tax is made after taken into consideration benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.
1. Deferred Tax Assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available in the future against which this items can be utilized.
2. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets is realized or the liability is settled, based on tax rates (and the tax) that have been enacted or enacted subsequent to the balance sheet date.
q. AS - 24 Discontinuing Operations:-
During the year the company has not discontinued any of its operations.
r. AS - 29 Provisions 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 and it is probable that there will be an outflow of resources.
* Contingent Liabilities are not recognized but are disclosed in the notes.
* Contingent Assets are neither recognized nor disclosed in the financial statements.
* Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.