Mar 31, 2015
1. Basis of Preparation of Financial Statements:
The financial statements are prepared on the basis of going concern, on
the accrual basis of accounting, under the historical cost convention
except for revaluation of land, and in accordance with accounting
principles generally accepted in India and to comply in all material
aspects with the mandatory accounting standards issued by The Companies
(Accounting Standard) rules, 2006 as applicable and the relevant
provisions of the Companies Act, 2013. The accounting policies have
been consistently applied by the Company and are consistent with those
followed in previous year.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosure of contingent liabilities as at the date
of the financial statements and reported amounts of revenues and
expenses during the reporting period. Difference between the actual
results and estimates are recognized in the period in which the results
are known / materialized.
3. Inventories:
Raw material, Finished goods and Stock- in-Trade are valued at lower of
costs or net realizable value. Cost of inventories comprises all cost
of purchase, conversions and other costs incurred in bringing the
inventories to their present location and condition. Finished goods are
valued inclusive of excise duty payable thereon. Provisions for
obsolescence / expired goods are made, wherever necessary. Cost is
determined by using FIFO method.
4. Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
5. Revenue Recognition:
Sales are recognized, 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. Service
revenue is recognized as per terms of contract. Sales include amount
recovered towards Excise Duty but exclude, Central Sales Tax, Value
Added Tax & Courier Charges and in case of Export Sales exclude amounts
recovered towards insurance and freight.
6. Fixed Assets:
Fixed Assets are stated at cost except for revaluation of Land, less
accumulated depreciation. The cost of fixed assets includes freight and
other incidental expenses related to the acquisition and installation
of the respective assets and excludes Cenvat and MVAT, if any.
Interests on borrowings for the purpose of acquiring Fixed Assets are
also added to the cost of acquisition until the use thereof for
Com-mercial Production.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of either net book value or
net realizable value and are disclosed separately in the financial
statements. Any expected loss is recognized in the Profit and Loss
account as "Diminution in Fixed Assets".
7. Depreciation:
Depreciation on Fixed Assets is provided on Straight Line Method at the
applicable rates and in the manner as prescribed in Schedule II to the
Companies Act, 2013, which management considers as being representative
of the useful economic lives of such assets.
Depreciation on addition / deletion of Fixed Assets made during the
year is provided on pro-rata basis from / up to the date of such
addition / deletion, as the case may be. Assets under construction are
not depreciated.
8. Impairment of Assets:
The Company assesses at each Balance Sheet date where there is any
indication that any assets may be impaired and if such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and a provision is made for such impairment loss in
the Profit and Loss Account. If at the Balance Sheet date there is an
indication that a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciable historical cost.
9. Foreign Currency Transactions and Translations
Transactions denominated in foreign currency are recorded at the
exchange rate prevailing on the date of the transaction.
Translation of all foreign currency denominated monetary Assets &
Liabilities as at the balance sheet date are translated at year end
exchange rates. Exchange difference arising on restatement or
settlement is charged to the Statement of Profit and Loss.
10. Investments:
Long Term Investments are stated at cost of acquisition and related
expenses. Provision is made to recognize a diminution, other than
temporary, in the value of investments. Current Investments are
carried individually at lower of cost and fair value.
11. Employee Benefit:
A. Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages, and performance incentive paid annual leave,
bonus, leave travel assistance, medical allowance, contribution to
provident fund etc. recognized as actual amounts due in period in which
the employee renders the related services.
A. Post Âemployment benefits
a) Defined Contribution plan
Payment made to defined contribution plans such as Provident fund is
charged as expenses as they fall due.
b) Defined Benefit Plan
The cost of providing benefits i.e. gratuity is determined using the
Projected Unit Credit Method, with actuarial valuation carried out as
at the balance sheet date. Actuarial gain and losses are recognized
immediately in the Statement of Profit & Loss.
12 Segment Reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/ loss amounts are evaluated regularly by the management.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/ expenses/ assets /
liabilities".
13. Taxation:
Income Tax expense comprises current tax (i.e. Amount of Income tax
for the period determined in accordance with the Income Tax law),
deferred tax charge or credit (reflecting the tax effect of timing
differences between accounting income and taxable income for the
period). The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred Tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
However, where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is virtual certainty of realisation of the assets. Deferred tax assets
are reviewed at each Balance Sheet date and written down or written up
to reflect the amount that is reasonable / virtual certain (as the case
may be) to be realized.
14. Earnings per share:
Basic earnings per share are computed by dividing the net profit or
loss for the year attributable to equity share holders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity share holders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
15. Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized only 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 the respect of
which a reliable estimate can be made based on technical evaluation and
past experience. Provisions are not discounted to its present value and
are determined based on management 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.
Mar 31, 2014
1. Basis of Preparation of Financial Statements:
The financial statements are prepared on the basis of going concern, on
the accrual basis of accounting, under the historical cost convention
except for revaluation of land, and in accordance with accounting
principles generally accepted in India and to comply in all material
aspects with the mandatory accounting standards issued by The Companies
(Accounting Standard) rules, 2006 as applicable and the relevant
provisions of the Companies Act, 1956. The accounting policies have
been consistently applied by the Company and are consistent with those
followed in previous year.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosure of contingent liabilities as at the date
of the financial statements and reported amounts of revenues and
expenses during the reporting period. Difference between the actual
results and estimates are recognized in the period in which the results
are known / materialized.
3. Inventories:
Raw material, Finished goods and Stock-in-Trade are valued at lower of
costs or net realizable value. Cost of inventories comprises all cost
of purchase, conversions and other costs incurred in bringing the
inventories to their present location and condition. Finished goods
are valued inclusive of excise duty payable thereon. Provisions for
obsolescence / expired goods are made, wherever necessary. Cost is
determined by using FIFO method.
4. Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
5. Revenue Recognition:
Sales are recognized, 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. Service
revenue is recognized as per terms of contract. Sales include amount
recovered towards Excise
Duty but exclude, Central Sales Tax, Value Added Tax & Courier Charges
and in case of Export Sales exclude amounts recovered towards insurance
and freight.
6. Fixed Assets:
Fixed Assets are stated at cost except for revaluation of Land, less
accumulated depreciation. The cost of fixed assets includes freight and
other incidental expenses related to the acquisition and installation
of the respective assets and excludes Cenvat and MVAT, if any.
Interests on borrowings for the purpose of acquiring Fixed Assets are
also added to the cost of acquisition until the use thereof for
Commercial Production.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of either net book value or
net realizable value and are disclosed separately in the financial
statements. Any expected loss is recognized in the Profit and Loss
account as "Diminution in Fixed Assets".
7. Depreciation:
Depreciation on Fixed Assets is provided on Straight Line Method at the
applicable rates and in the manner as prescribed in Schedule XIV to the
Companies Act, 1956, which management considers as being representative
of the useful economic lives of such assets.
Depreciation on addition / deletion of Fixed Assets made during the
year is provided on pro-rata basis from / up to the date of such
addition / deletion, as the case may be. Assets under construction are
not depreciated.
8. Impairment of Assets:
The Company assesses at each Balance Sheet date where there is any
indication that any assets may be impaired and if such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and a provision is made for such impairment loss in
the Profit and Loss Account. If at the Balance Sheet date there is an
indication that a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciable historical cost.
9. Foreign Currency Transactions and Translations Transactions
denominated in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction.
Translation of all foreign currency denominated monetary Assets &
Liabilities as at the balance sheet date are translated at year end
exchange rates. Exchange difference arising on restatement or
settlement is charged to the Statement of Profit and Loss.
10. Investments:
Long Term Investments are stated at cost of acquisition and related
expenses. Provision is made to recognize a diminution, other than
temporary, in the value of investments. Current Investments are carried
individually at lower of cost and fair value.
11. Employee Benefit:
A. Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages, and performance incentive paid annual leave,
bonus, leave travel assistance, medical allowance, contribution to
provident fund etc. recognized as actual amounts due in period in which
the employee renders the related services.
A. Post -employment benefits
a) Defined Contribution plan
Payment made to defined contribution plans such as Provident fund is
charged as expenses as they fall due.
b) Defined Benefit Plan
The cost of providing benefits i.e. gratuity is determined using the
Projected Unit Credit Method, with actuarial valuation carried out as
at the balance sheet date. Actuarial gain and losses are recognized
immediately in the Statement of Profit & Loss.
12 Segment Reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/ loss amounts are evaluated regularly by the management.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/ expenses/ assets /
liabilities".
13. Taxation:
Income Tax expense comprises current tax (i.e. Amount of Income tax
for the period determined in accordance with the Income Tax law),
deferred tax charge or credit (reflecting the tax effect of timing
differences between accounting income and taxable income for the
period). The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred Tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
However, where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is virtual certainty of realisation of the assets. Deferred tax assets
are reviewed at each Balance Sheet date and written down or written up
to reflect the amount that is reasonable / virtual certain (as the case
may be) to be realized.
14. Earnings per share:
Basic earnings per share are computed by dividing the net profit or
loss for the year attributable to equity share holders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity share holders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
15. Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized only 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 the respect of
which a reliable estimate can be made based on technical evaluation and
past experience. Provisions are not discounted to its present value and
are determined based on management 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.
a) The Company has only one class of shares referred to as Equity
Shares having a par value of Rs 10/- each. Each holder of Equity Share
is entitled to one vote per share.
b) The Company has not declared any Dividend.
c) In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
company,after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders
d) Share Reconciliation
The reconciliation of the number of shares outstanding and the amount
of Share Capital as at March 31,2014 and March 31, 2013 is set out
below.
Mar 31, 2013
1. Basis of Preparation of Financial Statements:
The financial statements are prepared on the basis of going concern, on
the accrual basis of accounting, under the historical cost convention
except for revaluation of land, and in accordance with accounting
principles generally accepted in India and to comply in all material
aspects with the mandatory accounting standards issued by the Institute
of Chartered Accountants of India as applicable and the relevant
provisions of the Companies Act, 1956. The accounting policies have
been consistently applied by the Company and are consistent with those
followed in previous year.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosure of contingent liabilities as at the date
of the financial statements and reported amounts of revenues and
expenses during the reporting period. Difference between the actual
results and estimates are recognized in the period in which the results
are known / materialized.
3. Inventories:
Raw material and Finished goods are valued at lower of costs or net
realizable value. Cost of inventories comprises all cost of purchase,
conversions and other costs incurred in bringing the inventories to
their present location and condition. Finished goods are valued
inclusive of excise duty payable thereon. Provisions for obsolescence
/ expired goods are made, wherever necessary. Cost is determined by
using FIFO method.
4. Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
5. Cash Flow Statement
Cash flow is reported using indirect method, whereby profit / (loss)
before extraordinary items and tax is adjusted for the effects of
transactions of non - cash nature 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.
6. Revenue Recognition:
Sales are recognized, 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. Service
revenue is recognized as per terms of contract. Sales include amount
recovered towards Excise Duty but exclude, Central Sales Tax, Value
Added Tax & Courier Charges and in case of Export Sales exclude amounts
recovered towards insurance and freight.
7. Fixed Assets:
Fixed Assets are stated at cost except for revaluation of Land, less
accumulated depreciation. The cost of fixed assets includes freight and
other incidental expenses related to the acquisition and installation
of the respective assets and excludes Cenvat and MVAT, if any.
Interests on borrowings for the purpose of acquiring Fixed Assets are
also added to the cost of acquisition until the use thereof for
Commercial Production.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of either net book value or
net realizable value and are disclosed separately in the financial
statements. Any expected loss is recognized in the Profit and Loss
account as "Diminution in Fixed Assets".
8. Depreciation:
Depreciation on Fixed Assets is provided on Straight Line Method at the
applicable rates and in the manner as prescribed in Schedule XIV to the
Companies Act, 1956, which management considers as being representative
of the useful economic lives of such assets.
Depreciation on addition / deletion of Fixed Assets made during the
year is provided on pro-rata basis from / up to the date of such
addition / deletion, as the case may be. Assets under construction are
not depreciated.
9. Impairment of Assets:
The Company assesses at each Balance Sheet date where there is any
indication that any assets may be impaired and if such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and a provision is made for such impairment loss in
the Profit and Loss Account. If at the Balance Sheet date there is an
indication that a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciable historical cost.
10. Foreign Currency Transactions and Translations
Transactions denominated in foreign currency are
recorded at the exchange rate prevailing on the date of relevant
transaction.
Translation of all foreign currency denominated monetary Current Assets
& Current Liabilities as at 31st March 2013 are translated at exchange
rates prevailing as on the same date. Exchange difference arising on
restatement or settlement is charged to the Statement of Profit and
Loss.
11. Investments
Long Term Investments are stated at cost of acquisition and related
expenses. Provision is made to recognize a diminution, other than
temporary, in the value of investments. Current Investments are carried
individually at lower of cost and fair value.
12. Employee Benefit:
A. Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages, and performance incentive paid annual leave,
bonus, leave travel assistance, medical allowance, contribution to
provident fund etc. recognized as actual amounts due in period in which
the employee renders the related services.
B. Post -employment benefits
a) Defined Contribution plan
Payment made to defined contribution plans such as Provident fund is
charged as expenses as they fall due.
b) Defined Benefit Plan
The cost of providing benefits i.e. gratuity is determined using the
Projected Unit Credit Method, with actuarial valuation carried out as
at the balance sheet date. Actuarial gain and losses are recognized
immediately in the Statement of Profit & Loss.
13. Insurance
Wherever considered necessary, the Company covers all the normal risks
on the basis of estimated values of its assets. The premium pertaining
to the year is charged against revenue of the year. Insurance claims
are accounted as and when admitted as due by the Insurance Company.
14. Research and Development Cost
All revenue expenses pertaining to Research and Development are charged
to the Profit and Loss Account under the normal and natural heads of
account under which they are incurred; hence no amount can be
quantified separately under the head of R & D Cost. The expenditure of
capital nature on R & D is capitalized as fixed assets, and depreciated
as per the Company''s policy.
15. Segment Reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure.
The operating segments are the segments for which separate financial
information is available and for which operating profit/ loss amounts
are evaluated regularly by the management.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/ expenses/ assets /
liabilities".
16. Taxation
Income Tax expense comprises current tax (i.e. Amount of Income tax for
the period determined in accordance with the Income Tax law), deferred
tax charge or credit (reflecting the tax effect of timing differences
between accounting income and taxable income for the period). The
deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the Balance Sheet date. Deferred
Tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future. However, where
there is unabsorbed depreciation or carried forward loss under taxation
laws, deferred tax assets are recognized only if there is virtual
certainty of realization of the assets. Deferred tax assets are
reviewed at each Balance Sheet date and written down or written up to
reflect the amount that is reasonable / virtual certain (as the case
may be) to be realized.
17. Earnings per share
Basic earnings per share are computed by dividing the net profit or
loss for the year attributable to equity share holders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity share holders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
18. Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized only 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 the respect of
which a reliable estimate can be made based on technical evaluation and
past experience. Provisions are not discounted to its present value and
are determined based on management 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.
a) The Company has only one class of shares referred to as Equity
Shares having a par value of Rs 10/- each. Each holder of Equity Share
is entitled to one vote per share.
b) The Company has not declared any Dividend as it has accumulated
Losses.
c) In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders
Provision for doubtful debts
Periodically, the Company evaluates all customer dues to the Company
for collectability. The need for provisions is assessed based on various
factors including collectability of specific dues ,risk perceptions of
the industry in which the customer operates general economic factors,
which could affect the customer''s ability to settle. The Company
normally provides for debtor where ascertained of recoverability is
very less. The Company pursues the recovery of the dues, in part or
full.
Mar 31, 2012
1. Basis of Preparation of Financial Statements:
The financial statements are prepared on the basis of going concern, on
the accrual basis of accounting, under the historical cost convention
except for revaluation of land, and in accordance with accounting
principles generally accepted in India and to comply in all material
aspects with the mandatory accounting standards issued by the Institute
of Chartered Accountants of India as applicable and the relevant
provisions of the Companies Act, 1956. The accounting policies have
been consistently applied by the Company and are consistent with those
followed in previous year.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets &
liabilities and the disclosure of contingent liabilities as at the date
of the financial statements and reported amounts of revenues and
expenses during the reporting period. Difference between the actual
results and estimates are recognized in the period in which the results
are known / materialized.
3. Inventories:
Raw material and Finished goods are valued at lower of costs or net
realizable value. Cost of inventories comprises all cost of purchase,
conversions and other costs incurred in bringing the inventories to
their present location and condition. Finished goods are valued
inclusive of excise duty payable thereon. Provisions for obsolescence
/ expired goods are made, wherever necessary. Cost is determined by
using FIFO method.
4. Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
5. Cash Flow Statement
Cash flow is reported using indirect method, whereby profit / (loss)
before extraordinary items and tax is adjusted for the effects of
transactions of non - cash nature 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.
6. Revenue Recognition :
Sales are recognized, 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. Service
revenue is recognized as per terms of contract. Sales include amount
recovered towards Excise Duty but exclude, Central Sales Tax, Value
Added Tax & Courier Charges and in case of Export Sales exclude amounts
recovered towards insurance and freight.
7. Fixed Assets:
Fixed Assets are stated at cost except for revaluation of Land, less
accumulated depreciation. The cost of fixed assets includes freight and
other incidental expenses related to the acquisition and installation
of the respective assets and excludes Cenvat and MVAT, if any.
Interests on borrowings for the purpose of accfuiring Fixed Assets are
also added to the cost of acquisition until the use thereof for
Commercial Production.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of either net book value or
net realizable value and are disclosed separately in the financial
statements. Any expected loss is recognized in the Profit and Loss
account as "'Diminution in Fixed Assets".
8. Depreciation:
Depreciation on Fixed Assets is provided on Straight Line Method at the
applicable rates and in the manner as prescribed in Schedule XIV to the
Companies Act, 1956, which management considers as being representative
of the useful economic lives of such assets.
Depreciation on addition / deletion of Fixed Assets made during the
year is provided on pro-rata basis from / jp to the date of such
addition / deletion, as the case may be. Assets under construction are
not depreciated.
9. Impairment of Assets:
The Company assesses at each Balance Sheet date where there is any
indication that any assets may be impaired and if such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and a provision is made for such impairment loss in
the Profit and Loss Account. If at the Balance Sheet date there is an
indication that a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciable historical cost.
10. Foreign Currency Transactions and Translations: Transactions
denominated in foreign currency are recorded at the exchange rate
prevailing on the date of relevant transaction.
Translation of all foreign currency denominated monetary Current Assets
& Current Liabilities as at 31st March 2012 are translated at exchange
rates prevailing as on the same date. Exchange difference arising on
restatement or settlement is charged to the Statement of Profit and
Loss.
11. Investments:
Long Term Investments are stated at cost of acquisition and related
expenses. Provision is made to recognize a diminution, other than
temporary, in the value of investments. Current Investments are carried
individually at lower of cost and fair value.
12. Employee Benefit:
A. Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service iare classified as short term employee benefits. Benefits
such as salaries, wages, and performance incentive paid annual leave,
bonus, leave travel assistance, medical allowance, contribution to
provident fund etc. recognized as actual amounts due in period in which
the employee renders the related services.
B. Post -employment benefits
a) Defined Contribution plan
Payment made to defined contribution plans such as Provident fund is
charged as expenses as they fall due.
b) Defined Benefit Plan
The cost of providing benefits i.e. gratuity is determined using the
Projected Unit Credit Method, with actuarial valuation carried out as
at the balance sheet date. Actuarial gain and losses are recognized
immediately in the Statement of Profit & Loss.
13. Insurance:
Wherever considered necessary, the Company covers all the normal risks
on the basis of estimated values of its assets. The premium pertaining
to the year is charged against revenue of the year. Insurance claims
are accounted as and when admitted as due by the Insurance Company.
14. Research and Development Cost:
All revenue expenses pertaining to Research and Development are charged
to the Profit and Loss Account under the normal and natural heads of
account under which they are incurred; hence no amount can be
quantified separately under the head of R & D Cost. The expenditure of
capital nature on R & D is capitalized as fixed assets, and depreciated
as per the Company's policy.
15. Segment Reporting:
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure.
The operating segments are the segments for which separate financial
information is available and for which operating profit/ loss amounts
are evaluated regularly by the management.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/ expenses/ assets /
liabilities".
16. Taxation:
Income Tax expense comprises current tax (i.e. Amount of Income tax for
the period determined in accordance with the Income Tax law), deferred
tax charge or credit (reflecting the tax effect of timing differences
between accounting income and taxable income for the period). The
deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the Balance Sheet date. Deferred
Tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future. However, where
there is unabsorbed depreciation or carried forward loss under taxation
laws, deferred tax assets are recognized only if there is virtual
certainty of realisation of the assets. Deferred tax assets are
reviewed at each Balance Sheet date and written down or written up to
reflect the amount that is reasonable /' virtual certain (as the case
may be) to be realized.
17. Earnings per share:
Basic earnings per share are computed by dividing the net profit or
loss for the year attributable to equity share holders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity share holders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
18. Provisions, Contingent Liabilities and Contingent Assets:
Provision is recognized only 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 the respect of
which a reliable estimate can be made based on technical evaluation and
past experience. Provisions are not discounted to its present value and
are determined based on management 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.
a) The Company has only one class of shares referred to as Equity
Shares having a par value of Rs.10/- each. Each holder of Equity Share is
entitled to one vote per share.
b) The Company has not declared any Dividend as it has accumulated
Losses.
c) In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
company,after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders
Mar 31, 2011
Major consideration governing selection and application of significant
accounting policies of the Company to represent true and fair view of
the state of affairs of the financial statements of the Company are;
i) Prudence
ii) Substance over Form and
iii) Materiality
Significant Accounting Policies adopted and followed by the Company in
preparation of its Financial Accounts are as under:
a) Basis of Preparation of Financial Statements: Subject to significant
accounting policies outlined herein under, the accounts and the
financial statements have been prepared on the basis of going concern,
on the accrual basis of accounting, under the historical cost
convention except for revaluation of land, in accordance with
accounting principles generally accepted in India and to comply in all
material aspects with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India as applicable and the
relevant provisions of the Companies Act, 1956. The accounting policies
have been consistently applied by the Company and are consistent with
those followed in previous year.
b) Use of Estimates : The preparation of financial statements in
conformity with generally accepted accounting principles (GAAP)
requires management to make estimates and assumptions that affect the
reported amounts of assets & liabilities and the disclosure of
contingent liabilities as at the date of the financial statements and
reported amounts of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
c) Revenue Recognition :Sale of goods is recognized on transfer of
Property in goods to customers on agreed terms. Sales excludes amounts
recovered towards Excise Duty, Central Sales Tax, Value Added Tax &
Courier Charges and in case of Export Sales excludes amounts recovered
towards insurance and freight.
d) Fixed Assets : Fixed Assets are stated at cost except for
revaluation of Land, less accumulated depreciation. The cost of fixed
assets includes freight and other incidental expenses related to the
acquisition and installation of the respective assets and excludes
Cenvat and MVAT, if any. Interest on borrowings for the purpose of
acquiring Fixed Assets are also added to the cost of acquisition until
the use thereof for Commercial Production.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of either net book value or
net realizable value and are disclosed separately in the financial
statements. Any expected loss is recognized in the Profit and Loss
account as ÂDiminution in Fixed Assets".
e) Depreciation : Depreciation on Fixed Assets is provided on Straight
Line Method at the applicable rates and in the manner as prescribed in
Schedule XIV to the Companies Act, 1956, which management considers as
being representative of the useful economic lives of such assets.
Depreciation on addition / deletion of Fixed Assets made during the
year is provided on pro-rata basis from / up to the date of such
addition / deletion, as the case may be. Assets under construction are
not depreciated.
f) Impairment of Assets : The Company assesses at each Balance Sheet
date where there is any indication that any assets may be impaired and
if such indication exists, the carrying value of such assets is reduced
to its estimated recoverable amount and a provision is made for such
impairment loss in the Profit and Loss Account. If at the Balance
Sheet date there is an indication that a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is refected at the recoverable amount subject to a maximum of
depreciable historical cost.
g) Investments : Long Term Investments are stated at cost of
acquisition and related expenses. Provision is made to recognize a
diminution, other than temporary, in the value of investments.
h) Inventories : Raw material and Finished goods are valued at lower of
costs or net realizable value. Cost of inventories comprises all cost
of purchase, conversions and other costs incurred in bringing the
inventories to their present location and condition. Finished goods are
valued inclusive of excise duty payable thereon. Provision for
obsolescence / expired good is made, wherever necessary. Cost is
determined by using FIFO method.
i) Retirement Benefit : Contribution to Provident Fund and other
defined contribution schemes are made at pre- determined rates and are
charged to the Profit and Loss
Account monthly. Provision for Gratuity is made in the accounts in
respect of all employees of the company. Gratuity payment is accounted
as and when the same becomes due and payable by the Company at the time
of retirement of concerned employee in the year in which the liability
for the same crystalises against the provision made for gratuity in the
accounts in respect of the concerned employee.
j) Insurance : Wherever considered necessary, the Company covers all
the normal risks on the basis of estimated values of its assets. The
premium pertaining to the year is charged against revenue of the year.
Insurance claims are accounted as and when admitted as due by the
Insurance Company.
k) Research and Development Cost : All revenue expenses pertaining to
Research and Development are charged to the Profit and Loss Account
under the normal and natural heads of account under which they are
incurred, hence no amount can be quantified separately under the head
of R & D Cost. The expenditure of capital nature on R & D is
capitalized as fixed assets, and depreciated as per the Company''s
policy.
l) Classification of Expenditure and Income : unless otherwise stated,
all items of expenditure and income are being classified and stated
under their respective normal and natural heads of accounts having
regard to the nature of business in which the Company is engaged.
m) Provisions : 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 the
respect of which a reliable estimate can be made based on technical
evaluation and past experience. Provisions are not discounted to its
present value and are determined based on management estimate required
to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to refect the current
management estimates.
n) Cenvat and VAT Credit : Excise duty and VAT on inputs are carried
forward in current assets and is included in "Other Current Assets"
till it is utilized. Consequently such inputs are accounted for
exclusive of excise duty and VAT credit.
o) Foreign Currency Transactions : Transactions denominated in foreign
currency are normally recorded at the exchange rate prevailing on the
date of relevant transaction.
Translation of all foreign currency denominated monetary Current Assets
& Current Liabilities as at 31st March 2011 are translated at exchange
rates prevailing as on the same date. The Gain / Loss arising on
translations and on foreign currency transactions settled during the
year are recognized in the Profit and Loss Account of the year.
p) Extra Ordinary Events and Prior Period Items : Material extra
ordinary events and prior period items are disclosed separately in the
Accounts.
q) Claims Receivable from Third Parties & Litigations. Revenues on
claims pending disposal are recognised at the time of acceptance of
claim by third parties on disposal of litigation.
r) Events occurring after Balance Sheet date : Events occurring after
Balance Sheet date which are materially affecting the determination of
the amounts relating to conditions existing at the Balance Sheet date
are being recognized / disclosed as per Accounting Standard 4 (AS4) Â
Contingencies and Events Occurring after the Balance Sheet Date.
s) Taxation : Income Tax expense comprises current tax (i.e. Amount of
Income tax for the period determined in accordance with the Income Tax
law), deferred tax charge or credit (refecting the tax effect of timing
differences between accounting income and taxable income for the
period). The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred Tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
However, where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is virtual certainty of realisation of the assets. Deferred tax assets
are reviewed at each Balance Sheet date and written down or written up
to refect the amount that is reasonable / virtual certain (as the case
may be) to be realized.
Earnings per share :
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity share holders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity share holders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2010
Major consideration governing selection and application of significant
accounting policies of the Company to represent true and fair view of
the state of affairs of the financial statements of the Company are;
i) Prudence
ii) Substance over Form and
iii) Materiality
Significant Accounting Policies adopted and followed by the Company in
preparation of its Financial Accounts are as under:
a) Basis of Preparation of Financial Statements:Subject to significant
accounting policies outlined herein under, the accounts and the
financial statements have been prepared on the basis of going concern,
on the accrual basis of accounting, under the historical cost
convention except for revaluation of land, in accordance with
accounting principles generally accepted in India and to comply in all
material aspects with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India as applicable and the
relevant provisions of the Companies Act, 1956. The accounting policies
have been consistently applied by the Company and are consistent with
those followed in previous year.
b) Use of Estimates: The preparation of financial statements in
conformity with generally accepted accounting principles (GAAP)
requires management to make estimates and assumptions that affect the
reported amounts of assets & liabilities and the disclosure of
contingent liabilities as at the date of the financial statements and
reported amounts of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
c) Revenue Recognition:Sale of goods is recognised on transfer of
Property in goods to custom-ers on agreed terms. Sales excludes amounts
recovered towards Excise Duty, Central Sales Tax, Value Added Tax &
Courier Charges and in case of Export Sales excludes amounts recovered
towards insurance and freight.
d) Fixed Assets: Fixed Assets are stated at cost except for revaluation
of Land, less accumulated depreciation. The cost of fixed assets
includes freight and other incidental expenses related to the
acquisition and installation of the respective assets and excludes
Cenvat and MVAT, if any. Interest on borrowings for the purpose of
acquir-ing Fixed Assets are also added to the cost of acquisition until
the use thereof for Com-mercial Production.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of either net book value or
net realizable value and are disclosed separately in the financial
statements. Any expected loss is recognized in the Profit and Loss
account as "Diminution in Fixed Assets".
e) Depreciation:Depreciation on Fixed Assets is provided on Straight
Line Method at the applicable rates and in the manner as prescribed in
Schedule XIV to the Companies Act, 1956, which management considers as
being representative of the useful economic lives of such assets.
Depreciation on addition / deletion of Fixed Assets made during the
year is provided on pro-rata basis from / up to the date of such
addition / deletion, as the case may be. Assets under construction are
not depreciated.
f) Impairment of Assets: The Company assesses at each Balance Sheet
date where there is any indication that any assets may be impaired and
if such indication exists, the carrying value of such assets is reduced
to its estimated recoverable amount and a provision is made for such
impairment loss in the Profit and Loss Account. If at the Balance Sheet
date there is an Indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost.
g) lnvestments:lnvestments are stated at cost of acquisition and
related expenses.
h) lnventories:Raw material and Finished goods are valued at lower of
costs or net realizable value. Cost of inventories comprises all cost
of purchase, conversions and other costs incurred in bringing the
inventories to their present location and condition. Cenvat and MVAT
are excluded in the value of the inventories. Provision for
obsolescence / expired good is made, wherever necessary. Cost is
determined by using FIFO method.
i) Retirement Benefit: Contribution to Provident Fund and other defined
contribution schemes are made at pre-determined rates and are charged
to the Profit and Loss Account monthly. Provision for Gratuity is made
in the accounts in respect of all employees of the company. Gratuity
payment is accounted as and when the same becomes due and payable by
the Company at the time of retirement of concerned employee in the year
in which the liability for the same crystalises against the provision
made for gratuity in the accounts in respect of the concerned employee.
j) Insurance: Wherever considered necessary, the Company covers all the
normal risks on the basis of estimated values of its assets. The
premium pertaining to.the year is charged against revenue of the year.
Insurance claims are accounted as and when admitted as due by the
Insurance Company.
k) Research and Development Cost: All revenue expenses pertaining to
Research and Development are charged to the Profit and Loss Account
under the normal and natural heads of . account under which they are
incurred, hence no amount can be quantified separately under the head
of R & D Cost. The expenditure of capital nature on R & D is
capitalized as fixed assets, and depreciated as per the Companys
policy.
l) Classification of Expenditure and Income:
Unless otherwise stated, all items of expenditure and income are being
classified and stated under their respective normal and natural heads
of accounts having regard to the nature of business in which the
Company is engaged.
m) Provisions: 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 the respect
of which a reliable estimate can be made based on technical evaluation
and past experience. Provisions are not discounted to its present
value and are determined based on management 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 management
estimates.
n) Cenvat and VAT Credit: Excise duty and VAT on inputs are carried
forward in current assets and is included in "Other Current Assets"
till it is utilized.Consequently such inputs are accounted for
exclusive of excise duty and VAT credit.
o) Foreign Currency Transactions : Transactions denominated in foreign
currency are normally recorded at the exchange rate prevailing on the
date of relevant transaction. Translation of all foreign currency
denominated monetary Current
Assets & Current Liabilities as at 31st March 2010 are translated at
exchange rates prevailing as on the same date. The Gain / Loss arising
on translations and on foreign currency transactions settled during the
year are recognized in the Profit and Loss Account of the year.
p) Extra Ordinary Events and Prior Period
Items:Material extra ordinary events and prior period items are
disclosed separately in the Accounts.
q) Claims Receivable from Third Parties & Litigations.Revenues on
claims pending disposal are recognised at the time of accept-ance of
claim by third parties on disposal of litigation.
r) Events occurring after Balance Sheet date:
Events occurring after Balance Sheet date which are materially
affecting the determination of the amounts relating to conditions
existing at the Balance Sheet date are being recognized / disclosed as
per Accounting Standard 4 (AS4) - Contingencies and Events Occurring
after the Balance Sheet Date.
s) Taxation: Income Tax expense comprises current tax (i.e. Amount of
Income tax for the period determined in accordance with the Income Tax
law), deferred tax charge or credit (reflecting the tax effect of
timing differences between accounting income and taxable income for the
period). The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred Tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
However, where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is virtual certainty of realisation of the assets. Deferred tax assets
are reviewed at each Balance Sheet date and written down or written up
to reflect the amount that is reasonable / virtual certain (as the case
may be) to be realized.
Earnings per share:
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity share holders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity share holders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
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