Mar 31, 2015
1) Basis of Accounting:
The financial statements of the company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the Companies (Accounts) Rules
2014 and the relevant provisions of the companies Act, 2013. The
financial statements have been prepared on an accrual basis and under
the historical cost convention. The accounting policies adopted in the
preparation of financial statements are consistent with those of
previous year
2) Use of Estimates :
The presentation of financial statements require estimates and
disclosure of contingent liabilities, assumptions to be made that
affect the reported amount of Assets and Liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Results of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and
estimates are recognized in the year in which the results are known
/materialized.
3) Fixed Assets:
Fixed Assets are stated at Cost or at Revalued Cost, net of CENVAT /
VAT Credit less Accumulated Depreciation. All costs including financing
costs till commencement of commercial production and Exchange rate
variations relating to the Borrowing are capitalized / adjusted to the
fixed asset
4) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
5) Investments:
Long Term Investments are carried at cost less provision for permanent
diminution, if any, in value of such investments.
6) DEPRECIATION:-
I) Depreciation on Fixed Assets is provided based on the useful life of
asset in manner prescribed in Schedule II to the Companies Act, 2013.
II) Depreciation on additions to the assets and the assets sold,
discarded or disposed off, during the year is provided on pro-rata
basis with reference to the date of acquisition / installation or date
of sale/disposal
7) Employees Retirement Benefits:
Short term employee benefits, if any (which are payable within 12
months after the end of the period in which the employees render
service) are measured at cost other than leave encashment payable
within 12 months from the end of the year.
Long term employee benefits, if any (which are payable after the end of
12 months from the end of the period in which the employees render
service) and post employment benefits (benefits which are payable after
completion of employment) are accounted for on cash basis.
Contributions to provident fund a defined contribution plan are made in
accordance with the statute.
8) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
Revenue from Sale of goods is recognized on delivery of the goods, when
all significant contractual obligations have been satisfied, the
property in the goods is transferred for a price, significant risks and
rewards of ownership are transferred to customers and no effective
ownership is retained However;
a) Revenue in respect of insurance/other claims etc, is recognized only
when it is reasonably certain that the ultimate collection will be
made.
b) Export Incentives in respect of exports made is accounted for when
right to receive is established, if any.
c) Dividend income is recognized when the right to receive is
established.
d) Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable rate of interest.
e) Interest received on delayed payment is accounted on receipt basis.
9) Earnings per Share:
The earnings considered in ascertaining the Company's EPS comprises the
net profit/loss after tax (and include the post tax effect of any extra
ordinary item). The number of shares used in computing Basic EPS is the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of equityshares outstanding during the
period are adjusted for the effects of all dilutive potential equity
shares.
10) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax if any and Deferred
Tax are included in determining the net profit for the year.
A provision is made for deferred tax for all timing differences arising
between taxable incomes and accounting income at currently enacted tax
rates.
Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon
the merit of each case and/or receiving the actual demand from the
department.
11) Provisions and Contingent Liabilities:
A provision is recognized when the company has a present obligation as
a result of past event 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. A contingent liability is disclosed when
the company has a possible or present obligation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
Mar 31, 2014
1. Basis of Preparation of Financial Statements:
The financial statements have been prepared to comply with the
Accounting Standards referred to in the Companies (Accounting
Standards) Rule, 2006 issued by the Central Government in exercise of
the power conferred under sub-section ( I ) (a) of section 642 and the
relevant provisions of the Companies Act, 1956 (the ''Act''). The
financial statements have been prepared under the historical cost
convention on the accrual basis. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
2. Going Concern :
The financial statements are prepared on a going concern basis. The
management of the Company believes that, the Company will continue to
operate as a going concern and will be in a position to meet all its
liabilities as they fall due for payment.
3. Use of Estimates:
In preparing the Company''s financial statements in conformity with the
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Any revision to accounting
estimates is recognised prospectively in the current and future
periods.
4. Fixed Assets:
Fixed Assets is stated at cost of acquisition (net of CENVAT, wherever
applicable) as reduced by accumulated depreciation. The cost of assets
includes other direct/indirect and incidental cost incurred to bring
them into their working condition.
When assets are disposed or retired, their cost is removed from the
financial statements. The gain or loss arising on the disposal or
retirement of an asset is determined as the difference between sales
proceeds and the carrying amount of the asset and is recognised in
Statement of Profit and Loss for the relevant financial year.
5. Depreciation:
Depreciation is provided on written down value method at the rates and
in the manner prescribed in Schedule -XIV to the Companies Act, 1956.
Depreciation on additions/deletion during the year is charged on
prorata basis from the date of such addition/deletion.
When assets are disposed or retired, their accumulated depreciation is
removed from the financial statements. The gain or loss arising on the
disposal or retirement of an asset is determined as the difference
between sales proceeds and the carrying amount of the asset and is
recognised in Statement of Profit and Loss for the relevant financial
year.
6. Investments:
Long Term Investments are stated at cost. Provision is only made to
recognize a decline other than temporary, in the value of investments.
However, where quotation as on 31st March, 2014 was not available, last
available quotation was considered.
7. Revenue Recognition:
Revenue is recognised when practically all risk and rights connected
with ownership have been transferred to the buyer. This usually occurs
upon dispatch, after the price has been determined and collection of
the sales proceeds is reasonable certain.
i. Interest Income
Interest Income is recognized on accrual basis.
8. Earning Per Share:
Basic earnings per share is calculated by dividing net profit after tax
for the year attributable to Equity Shareholders of the company by the
weighted average number of Equity Shares issued during the year.
Diluted earnings per share is calculated by dividing net profit
attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding
during the year.
9. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when there is a present obligation as a
result of past event 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.
A disclosure for a contingent liability is made when there is a
possible or present obligation that may, but probably will not require
an outflow of resources.
Contingent Assets are neither recognized nor disclosed in the financial
statements
10. Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
such assets, whenever applicable, till the assets are ready for their
intended use. A qualifying asset is one which necessary takes
substantial period to get ready for intended use. All other borrowing
costs are charged to revenue accounts. Capitalization of borrowing cost
is suspended when active development is interrupted.
11. Income Tax and Deferred Tax:
Provision for current tax is made after taking into consideration
benefits admissible under the provision of the Income Tax Act, 1961.
Deferred Tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or subsequently enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that there is virtual certainty that the assets will be realized in
future.
12. Intangible Assets:
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization. All costs, including financing
costs in respect of qualifying assets till commencement of commercial
production, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the intangible
assets are capitalized.
Intangible assets are amortised on a straight - line basis over their
estimated useful lives. A rebuttable presumption that the useful life
of an intangible asset will not exceed than years from the date when
the asset is available for use is considered by the management. The
amortization period and the amortization method are reviewed at least
at each reporting date. If the expected useful life of the asset is
significantly different from previous estimates, the amortization
period is changed accordingly.
The gain or loss arising on the disposal or retirement of an intangible
asset is determined as the difference between net disposal proceeds and
the carrying amount of the asset and is recognised as income or
expenses in the Statement of Profit and Loss in the year or disposal.
13. Foreign Currency Transaction:
i. Transactions in foreign currencies are recorded in Indian rupees
using the rates of exchange prevailing on the date of the transactions.
At each balance sheet date, monetary balances are reported in Indian
Rupees at the rates of exchange prevailing at the Balance Sheet date.
All realized or unrealized exchange adjustment gains or losses are
dealt with in the Statement of Profit and Loss.
ii. In order to hedge exposure to foreign exchange risks arising from
export or import foreign currency, bank borrowings and trade
receivables, the company enters into forward contracts. In case of
forward exchange contract, the cost of the contracts is amortised over
the period of the contract, any profit or loss arising on the
cancellation or renewal of a forward exchange contract is recognised as
income or expenses for the year.
iii. Exchange difference is calculated as the difference between the
foreign currency amount of the contract translated at the exchange rate
at the reporting date, or the settlement date where the transaction is
settled during the report period and the corresponding foreign currency
amount translated at the later of the dates of inception of the forward
exchange contract and the last reporting date. Such exchange difference
rate recognised in the Statement of profit and loss in the reporting
period in which the exchange rates change.
iv. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction.
14. 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 and loss account in the period in which an asset is identified
as impaired. The impairment loss, if any, recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
Mar 31, 2013
1. Basis of Preparation of Financial Statements:
The financial statements have been prepared to comply with the
Accounting Standards referred to in the Companies (Accounting
Standards) Rule, 2006 issued by the Central Government in exercise of
the power conferred under sub-section ( I ) (a) of section 642 and the
relevant provisions of the Companies Act, 1956 (the ''Act''). The
financial statements have been prepared under the historical cost
convention on the accrual basis. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
2. Going Concern :
The financial statements are prepared on a going concern basis. The
management of the Company believes that, the Company will continue to
operate as a going concern and will be in a position to meet all its
liabilities as they fall due for payment.
3. Use of Estimates:
In preparing the Company''s financial statements in conformity with the
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Any revision to accounting
estimates is recognised prospectively in the current and future
periods.
4. Fixed Assets:
Fixed Assets is stated at cost of acquisition (net of CENVAT, wherever
applicable) as reduced by accumulated depreciation. The cost of assets
includes other direct/indirect and incidental cost incurred to bring
them into their working condition.
When assets are disposed or retired, their cost is removed from the
financial statements. The gain or loss arising on the disposal or
retirement of an asset is determined as the difference between sales
proceeds and the carrying amount of the asset and is recognised in
Statement of Profit and Loss for the relevant financial year.
5. Depreciation:
Depreciation is provided on written down value method at the rates and
in the manner prescribed in Schedule ÂXIV to the Companies Act, 1956.
Depreciation on additions/deletion during the year is charged on
prorata basis from the date of such addition/deletion. When assets are
disposed or retired, their accumulated depreciation is removed from the
financial statements. The gain or loss arising on the disposal or
retirement of an asset is determined as the difference between sales
proceeds and the carrying amount of the asset and is recognised in
Statement of Profit and Loss for the relevant financial year.
6. Investments:
Long Term Investments are stated at cost. Provision is only made to
recognize a decline other than temporary, in the value of investments.
However, where quotation as on 31st March, 2014 was not available, last
available quotation was considered.
7. Revenue Recognition:
Revenue is recognised when practically all risk and rights connected
with ownership have been transferred to the buyer. This usually occurs
upon dispatch, after the price has been determined and collection of
the sales proceeds is reasonable certain.
i. Interest Income
Interest Income is recognized on accrual basis.
8. Earning Per Share:
Basic earnings per share is calculated by dividing net profit after tax
for the year attributable to Equity Shareholders of the company by the
weighted average number of Equity Shares issued during the year.
Diluted earnings per share is calculated by dividing net profit
attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding
during the year.
9. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when there is a present obligation as a
result of past event 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.
A disclosure for a contingent liability is made when there is a
possible or present obligation that may, but probably will not require
an outflow of resources.
Contingent Assets are neither recognized nor disclosed in the financial
statements
10. Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
such assets, whenever applicable, till the assets are ready for their
intended use. A qualifying asset is one which necessary takes
substantial period to get ready for intended use. All other borrowing
costs are charged to revenue accounts. Capitalization of borrowing cost
is suspended when active development is interrupted.
11. Income Tax and Deferred Tax:
Provision for current tax is made after taking into consideration
benefits admissible under the provision of the Income Tax Act, 1961.
Deferred Tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or subsequently enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that there is virtual certainty that the assets will be realized in
future.
12. Intangible Assets:
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization. All costs, including financing
costs in respect of qualifying assets till commencement of commercial
production, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the intangible
assets are capitalized.
Intangible assets are amortised on a straight  line basis over their
estimated useful lives. A rebuttable presumption that the useful life
of an intangible asset will not exceed than years from the date when
the asset is available for use is considered by the management. The
amortization period and the amortization method are reviewed at least
at each reporting date. If the expected useful life of the asset is
significantly different from previous estimates, the amortization
period is changed accordingly.
The gain or loss arising on the disposal or retirement of an intangible
asset is determined as the difference between net disposal proceeds and
the carrying amount of the asset and is recognised as income or
expenses in the Statement of Profit and Loss in the year or disposal.
13. Foreign Currency Transaction:
i. Transactions in foreign currencies are recorded in Indian rupees
using the rates of exchange prevailing on the date of the transactions.
At each balance sheet date, monetary balances are reported in Indian
Rupees at the rates of exchange prevailing at the Balance Sheet date.
All realized or unrealized exchange adjustment gains or losses are
dealt with in the Statement of Profit and Loss.
ii. In order to hedge exposure to foreign exchange risks arising from
export or import foreign currency, bank borrowings and trade
receivables, the company enters into forward contracts. In case of
forward exchange contract, the cost of the contracts is amortised over
the period of the contract, any profit or loss arising on the
cancellation or renewal of a forward exchange contract is recognised as
income or expenses for the year.
iii. Exchange difference is calculated as the difference between the
foreign currency amount of the contract translated at the exchange rate
at the reporting date, or the settlement date where the transaction is
settled during the report period and the corresponding foreign currency
amount translated at the later of the dates of inception of the forward
exchange contract and the last reporting date. Such exchange difference
rate recognised in the Statement of profit and loss in the reporting
period in which the exchange rates change.
iv. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction.
14. 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 and loss account in the period in which an asset is identified
as impaired. The impairment loss, if any, recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
Mar 31, 2011
BASIS FOR PREPARATION OF FINANCIAL STATEMENTS,
The financial statements have been prepared under the historical cost
convention, in accordance with Accounting Standards issued by the
Institute of Chartered Accountants of India and the provisions of the
Companies Act, 1956, as adopted consistently by the company. All income
and expenditure having a material bearing on the financial statements
are recognized on accrual basis except accrued gratuity / pension
liability.
Use of Estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities on the date of the financial statements, disclosure of
contingent liabilities and reported amounts of revenues and expenses
for the year. Estimates are based on historical experience, where
applicable and other assumptions that management believes are
reasonable under the circumstances. Actual results could vaiy from
these estimates and any such differences are dealt with in the period
in which the results are known / materialise.
REVENUE RECOGNITION.
The company follows the mercantile system of accounting and recognizes
income and expenditure on accrual basis except in case of significant
uncertainties.
FIXED ASSETS AND DEPRECIATION.
i) Fixed assets are stated at the cost of acquisition less accumulated
depreciation. Cost includes all identifiable expenditure incurred to
bring the asset to its present condition and location.
ii) Depreciation on fixed assets is provided at the rates and in the
manner specified in schedule xiv to the Companies Act, 1956 on written
down value of the assets.
INVENTORIES:
Inventories are valued at lower of cost and net realizable value as
certified by the Management.
INVESTMENTS:
Long term investments are stated at cost less provision for diminution
other than temporary, if any. Current investments are valued at lower
of cost and fair value.
INCOME TAX:
Provision for taxation is made on the basis of taxable income computed
in accordance with the I. Tax Act
ii. Deferred Tax resulting from timing differences are expected to
crystallize in case of deferred tax liabilities with reasonable
certainty and in case of deferred tax assets with virtual certainty
that there would be adequate future taxable income against which such
deferred tax assets can be realized
The tax effect if any ,is calculated on the accumulated timing differences
at the end of an accounting period based on prevailing enacted
regulations.
FOREIGN EXCHANGE TRANSACTIONS
Foreign currency transactions are recorded at the rates prevailing on
the date of transaction. Exchange differences arising on settlement of
transactions are recognized as income or expense.
EMPLOYES BENEFITS
Company's contributions to defined contribution plans like provident
fund, employee state insurance and other funds are determined under the
relevant statute and charged to revenue in the year in which they
relate.