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Accounting Policies of Farmax India Ltd. Company

Mar 31, 2015

Basis for preparation of accounts

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of Assets and Liabilities, revenues and expenses, and related disclosures of contingent liabilities in the financial statements and accompanying notes. Estimates are used for, but not limited to valuation of investments, collect ability of receivables, sales returns, incentive discount offers, valuation of inventory, depreciable lives of fixed assets and valuation of acquired intangibles and goodwill, income taxes, stock based compensation and contingencies. Actual results could differ materially from those estimates.

Fixed Assets and Depreciation

I) Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realizable value and are shown separately in the financial statements under Other Current Assets if any. Any expected loss is recognized immediately in the profit and loss account. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account if any. ii) Depreciation has been provided under the written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956. In respect of assets added / assets sold during the year, pro- rata depreciation has been provided at the rates prescribed under Schedule XIV. Depreciation in respect of assets acquired during the year whose cost does not exceed Rs. 5,000/- has been provided at 100%.

Revenue Recognition

i. Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties.

ii. Income from services rendered is recognized as the service is performed and is booked based on agreements / arrangements with the concerned parties.

Interest income on Deposits is recognized during the time proportion method, based on interest rates implicit in the transaction.

Expenditure

Expenses are accounted on accrual basis and the Provisions are made for all expected losses and liabilities.

Investments

Investments are classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments. Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Employee benefits

Disclosure is made as per the requirements of the standard and the same is furnished below:

1. Defined contribution plan

Contribution to provident fund is in the nature of defined contribution plan and is made to EPFO.

2. Defined Benefit Plan

The company doesn't have policy of contribution to Gratuity and Leave encashment. Hence no provision is made in the books.

Foreign Exchange Transactions

a) Foreign currency transactions arising during the year are recorded as per the prescribed foreign exchange rates prevailing on the date of the transaction.

b) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are stated at the contract rates and / or at the transaction Schedule :

Earnings per share

A basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares if any.

Inventories

Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Impairment of Assets:

At each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a) The provision for impairment loss, if any, required or

b) The reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized if the carrying amount an asset exceeds its recoverable amount

Borrowing Costs:

Borrowing Costs that are directly attributable to long term project management and development activities are capitalized as part of the projects cost when the activities that are necessary to prepare the asset for its intended use or sale are in progress. Other borrowing costs are recognized as expenses in profit and loss account in the period in which they are occur.

Income Taxes

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized , subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized on unabsorbed depreciation and losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments under such leases are charged to profit and loss account on a straight line basis over the lease term.

Provisions and Contingent Liabilities

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.






Mar 31, 2014

Basis for preparation of accounts

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of Assets and Liabilities, revenues and expenses, and related disclosures of contingent liabilities in the financial statements and accompanying notes. Estimates are used for, but not limited to valuation of investments, collect ability of receivables, sales returns, incentive discount offers, valuation of inventory, depreciable lives of fixed assets and valuation of acquired intangibles and goodwill, income taxes, stock based compensation and contingencies. Actual results could differ materially from those estimates.

Fixed Assets and Depreciation

i) Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realizable value and are shown separately in the financial statements under Other Current Assets if any. Any expected loss is recognized immediately in the profit and loss account. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account if any.

ii) Depreciation has been provided under the written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956. In respect of assets added / assets sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule XIV. Depreciation in respect of assets acquired during the year whose cost does not exceed Rs. 5,000/- has been provided at 100%.

Revenue Recognition

i) Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties.

ii) Income from services rendered is recognized as the service is performed and is booked based on agreements / arrangements with the concerned parties.

iii) Interest income on Deposits is recognized during the time proportion method, based on interest rates implicit in the transaction.

Expenditure

Expenses are accounted on accrual basis and the Provisions are made for all expected losses and liabilities.

Investments

Investments are classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments. Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Employee benefits

Disclosure is made as per the requirements of the standard and the same is furnished below:

1. Defined contribution plan

Contribution to provident fund is in the nature of defined contribution plan and is made to EPFO.

2. Defined Benefit Plan

The company doesn''t have policy of contribution to Gratuity and Leave encashment. Hence no provision is made in the books.

Foreign Exchange Transactions

a) Foreign currency transactions arising during the year are recorded as per the prescribed foreign exchange rates prevailing on the date of the transaction.

b) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are stated at the contract rates and / or at the transaction note.

Earnings per share

A basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares if any.

Inventories

Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Impairment of Assets:

At each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a) The provision for impairment loss, if any, required or

b) The reversal, if any, required for impairment loss recognized in previous periods. Impairment loss is recognized if the carrying amount an asset exceeds its recoverable amount

Borrowing Costs:

Borrowing Costs that are directly attributable to long term project management and development activities are capitalized as part of the projects cost when the activities that are necessary to prepare the asset for its intended use or sale are in progress. Other borrowing costs are recognized as expenses in profit and loss account in the period in which they are occur.

Income Taxes

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments under such leases are charged to profit and loss account on a straight line basis over the lease term.

Provisions and Contingent Liabilities

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.


Mar 31, 2013

Basis for preparation of accounts

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

Revenue Recognition

Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties. Income from services rendered is recognized as the service is performed and is booked based on agreements / arrangements with the concerned parties. Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest. Dividend income on investments is accounted for when the right to receive the payment is established.

Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realizable value and are shown separately in the financial statements under Other Current Assets if any. Any expected loss is recognized immediately in the profit and loss account. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account if any.

Depreciation accounting

Depreciation has been provided under the written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956. In respect of assets added / assets sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule XIV. Depreciation in respect of assets acquired during the year whose cost does not exceed Rs. 5,000/- has been provided at 100%.

Inventories

Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Impairment of Assets:

At each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a) The provision for impairment loss, if any, required or

b) The reversal, if any, required for impairment loss recognized in previous periods. Impairment loss is recognized if the carrying amount an asset exceeds its recoverable amount

Borrowing Costs:

Borrowing Costs that are directly attributable to long term project management and development activities are capitalized as part of the projects cost when the activities that are necessary to prepare the asset for its intended use or sale are in progress. Other borrowing costs are recognized as expenses in profit and loss account in the period in which they are occur.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of Assets and Liabilities, revenues and expenses, and related disclosures of contingent liabilities in the financial statements and accompanying notes. Estimates are used for, but not limited to valuation of investments, collectability of receivables, sales returns, incentive discount offers, valuation of inventory, depreciable lives of fixed assets and valuation of acquired intangibles and goodwill, income taxes, stock based compensation and contingencies. Actual results could differ materially from those estimates.

Investments

Investments are classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments. Investments that are readily realizable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Income Taxes

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized , subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized on unabsorbed depreciation and losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Accounting for effects of changes in foreign exchange rates

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions are recognized in the Profit and Loss account. Monetary and Non monetary Current Assets and liabilities are carried at fair value and other assets and liabilities are carried at historical cost.

Employee benefits

Disclosure is made as per the requirements of the standard and the same is furnished below:

1. Defined contribution plan

Contribution to provident fund is in the nature of defined contribution plan and is made to EPFO.

2. Defined Benefit Plan

The company doesn''t have policy of contribution to Gratuity and Leave encashment. Hence no provision is made in the books.

Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments under such leases are charged to profit and loss account on a straight line basis over the lease term.

Earnings per share

A basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares if any.

Provisions and Contingent Liabilities

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.


Mar 31, 2012

(a) AS -1 Disclosure of accounting policies

The accounts are maintained on accrual basis. The revenue and expenditure are accounted on a going concern basis.

(b) AS-2 Valuation of inventories

Inventories are valued in accordance with the method of valuation prescribed by The ICAI at weighted average cost or net realisable value, whichever is less.

(c) AS - 3 Cash flow statements .

The cash flow statement is prepared under "indirect method" and the same is annexed.

(d) AS - 4 Contingencies and events occurring after Balance Sheet date

Contingencies and events occurring after the Balance sheet date are recognized as per the standard issued by the ICAI with reference to (aa) of this note.

(e) AS - 5 Net profit or loss for the period, prior period items and changes in accounting policies Net profit or loss for the period, prior period items and changes in accounting policies if any are disclosed separately as per the AS-5

(f) AS - 6 Depreciation accounting

Depreciation has been provided under the written down value method at the rates prescribed under Schedule XIV of the Companies Act,1956 with the applicable shift allowance. In respect of assets added / assets sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule XIV. Depreciation in respect of assets acquired during the year whose cost does not exceed Rs. 5,000/- has been provided at 100%.

(g) AS - 7 Construction contracts

This Accounting Standard is not applicable.

(h) AS - 9 Revenue recognition

The income of the company is derived from sale (net of trade discounts). Sale of goods is recognised on despatch of goods to customers. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. When uncertainty in remittance is anticipated for interest, royalties and dividends, revenue recognition may need to be postponed as per the Standard issued by ICAI

(i) AS -10 Accounting for fixed assets

All the fixed assets are valued at cost including expenditure incurred in bringing them to usable condition less depreciation.

(j) AS -11 Accounting for effects of changes in foreign exchange rates

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction.

Gains and losses resulting from the settlement of such transactions are recognised in the Profit and Loss account. Monetary and Non monetary Current Assets and liabilities are carried at fair value and other assets and liabilities are carried at historical cost.

(I) AS -12 Accounting for Government Grants

Company doesn't have any government grants.

(k) AS -13 Accounting for Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current

investments. All other investments are classified as long term investments. Current investments are carried at lower of cost or realizable value determined on individual basis. Long term investments are carried at cost.

(I) AS -14 Accounting for amalgamations

Goodwill arising on amalgamation shall be written off after estimating its useful life of goodwill or five years

whichever is earlier. Goodwill amounting to Twocrores was amortized during the year. During the year no entity is amalgamated with the company.

(m) AS -15 Accounting for Employee benefits

Disclosure is made as per the requirements of the standard and the same is furnished below:

1. Defined contribution plan

Contribution to provident fund is in the nature of defined contribution plan and is made to EPFO.

2. Defined Benefit Plan

The company doesn't have policy of contribution to Gratuity and Leave encashment. Hence no provision is made in the books.

(n) AS-16 Borrowing costs

The borrowing costs have been treated in accordance with Accounting Standard issued by The Institute of Chartered Accountants of India.

(O) AS - 17 Segment reporting

The Company operates in only one segment in one Business segment FMCG and one Geographical segment India. Hence the Accounting Standard on segment reporting is not applicable.

(P) AS - 18 Related party disclosures

Disclosure is made as per the requirements of the standard and the same is furnished below:

List of Related Parties as per clause 3(a) of the standard where control exists.

(q) AS -19 Accounting for Leases

Operating Leases are recognized as expense in Profit and Loss Account on Straight Line Basis over the lease term.

(r) AS - 20 Earnings per share

Earnings per share is calculated by dividing the profit attributable to the shareholders by the weighted average number of equity shares outstanding as at the close of the year.

(s) AS - 21 Consolidated financial statements

Consolidated financial statements of the company with its subsidiary are enclosed Separately.

(t) AS - 22 Accounting for taxes on income

Deferred tax liability and asset are recognised based on timing difference using the tax rates substantively enacted on the Balance Sheet date

(U) AS - 23 Accounting for investments in associates in consolidated financial Statements Company doesn't have any associates to consolidate as per AS - 23 issued by The ICAI.

(v) AS - 24 Discontinuing operations

During the year, the Company has not discontinued any of its operations.

(w) AS - 25 Interim financial reporting

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

(x) AS - 26 Accounting for Intangible assets

The company doesn't have any Intangible assets.

(y) AS - 27 Financial Reporting of interests in joint venture

Company doesn't have any Joint venture as on 31.03.2012.

(z) AS - 28 Impairment of assets

The company doesn't have any impaired assets.


Mar 31, 2011

1. Financial Statements:

Financial Statements are prepared under historical cost convention and as a going concern, on accrual basis and in accordance with the generally accepted accounting principles and relevant requirements of the Companies Act, 1956.

2. Revenue Recognition:

Revenue from Sales is recognized on the basis of Invoice raised based on dispatches of products to its customers.

3. Expenses:

It is the policy of the Company to provide for all expenses on accrual basis. Similarly, Provisions are made for all known losses and liabilities.

4. Fixed Assets:

i) Tangible Assets: Fixed assets are stated at Acquisition cost less depreciation. Cost includes the original cost of acquisition and subsequent improvements thereto-including taxes, duties, freight and other identical expenses relating to acquisition and installation of the assets. Fixed Assets are capitalized on the date on which they are ready to put to use. Those Fixed Assets that are under construction / Installation are shown under Capital Work In Progress. Expenditure for maintenance and repairs are charged to Profit & Loss Account.

ii) During the year company has not revalued any of its fixed assets. However revaluation of land made in the previous year has been reversed in the current year.

iii) Depreciation: The Company has the policy to provide depreciation on Tangible Assets on pro-rata basis from the date, the asset is put to use under Written Down Value Method (WDV) at the rates specified in Schedule XIV of the Companies Act, 1956.

Intangible Assets: No provision has been created for the write off of Goodwill arising out of Amalgamation during the period.

Individual assets costing less than Rs. 5000/- each are fully depreciated in the year of purchase.

iv) Impairment of Assets: Consequent to the Accounting Standard 28 on "Impairment of Assets", the Company assesses at each Balance Sheet date whether there is any indication of impairment of assets and the effect of such impairment is considered in the books.

5. Investments: Investments held on the Balance Sheet date are valued at cost and at the rates reported in previous years. The Company has the policy to write off Permanent Diminution in the value of Investments to Revenue. However, the Company has not ascertained the value of Investments as at the Balance Sheet date and hence no provision has been made for the same.

6. Inventory:

The Company has valued Stock on Balance Sheet date at Cost or Net Realizable Value, whichever is lower. However, Consumables and Stores supplies are charged off to consumption at the time of purchase. They are not carried in the books of inventories since their value is npjb, significant Considering tax allowances and exemptions.

7. Taxes on Income:

Current Tax: Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed after considering tax allowances and exemptions.

Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified, and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and get reversed in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantively enacted regulations. 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.

9. Director's Remuneration:

The Company has paid Rs. 6280000/- towards Remuneration of Directors during the period. Further, the Company has not computed net profits under Section 349 of the Companies Act, 1956 for the purpose of directors remuneration, since no commission is payable to the directors.

10. Retirement Benefits:

a. Provident Fund: Contribution to Provident Fund has been charged off to Profit & Loss Account.

b. Gratuity and Leave Encashment: The Company does not have any Gratuity and Leave Encashment Policy and hence no provision has been made in the books of account.

11. Capital Commitments:

Estimated amount of contracts to be executed on capital not provided for (net of advances) - NIL

12. Contingent Assets and Liabilities: There is no Contingent Asset or Liability for or against the Company not acknowledge as debt during the period.

13. Balances appearing under Secured Loans, Unsecured Loans, Sundry Debtors, Sundry Creditors, Loans and Advances are subject to confirmation and / or reconciliation, if any

14. Quantitative Details:

Quantitative details of the principal items of goods traded (Clause 28(a))

15. Foreign Currency Transactions:

The Company has no other Foreign Currency Transactions during the period. Since, the Company has no Foreign Exchange Income or Expenditure, disclosures required under Schedule VI of the Companies Act, 1956 is not applicable.

16. EPS:

In determining Earnings Per Share, the Company considers the net profit after tax and includes post-tax effect of extra-ordinary items. The number of share used in computing Earnings per share is Weighted Average Number of Equity Shares outstanding during the period.

17. Deferred Tax Assets/Liabilities:


Mar 31, 2010

1. Financial statements:

Financial Statements are prepared under historical cost convention and as a going concern, on accrual basis and in accordance with the generally accepted accounting principles and relevant requirements of the Companies Act, 1956.

2. Revenue Recognition:

Revenue from sales is recognized on the basis of invoice raised based on dispatches of products to its customers.

3. Expenses:

It is the policy of the company to provide for all expenses on accrual basis. Similarly, Provisions are made for all known losses and liabilities.

4. Fixed Assets:

I) Tangible Assets: Fixed Assets are stated at Acquisition cost less depreciation. Cost includes the original cost of acquisition and subsequent improvements thereto-including taxes, duties, freight and other identical expenses relating to acquisition and installation of the assets. Fixed Assets are capitalized on the date on which they are ready to put to use. Those Fixed assets that are under construction / installation is shown under capital work in progress. Expenditure for maintenance and repairs are charged to profii &Loss Account.

ii) Depreciation: The Company has the policy to provide depreciation on Tangible Assets on pro rata basis from the date the asset is put to use under Written Down value Method (WDV) at the rates specified in schedule XIV of the Companies Act, 1956.

Individual assets coasting less than Rs.50007- each are fully depreciated in the year of purchase.

iii) Impairment of Assets: Consequent to the Accounting standard 28 on "Impairment of Assets", the Company assesses at each Balance sheet date whether there is any indication of impairment of assets and the effect of such impairment is considered in the books.

5. Investment:

Investments held on the Balance sheet are valued at cost and at the rates reported in previous years. The Company has the policy to write off Permanent Diminution in the value of investments to Revenue. However the company during the year tried to ascertained the value of investment as at date of Balance sheets has come to the conclusion that the value of such investment has become nil & hence decided to write off as loss on investments(schedulef).

6. Inventory:

The Company has valued stock on Balance sheet date at cost or Net Realizable Value, whichever is lower. However, Consumables and Stores suppliers are charges off to consumption at the time of purchase. They are not carried in the books of inventories since their value is not significant.

7. Taxes on income:

Current Tax: Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed after considering tax allowances and exemptions.

Deferred Tax: The difference that result between the profit offered for income tax and the profit as per the financial statements are identified, and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and get reversed in another, based on the tax effect of the aggregate being considered. The tax effect is calculated on the accumulated timing differences at the accounting period based on prevailing enacted or substantively enacted regulations. Differed 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.

The Company has not made any provision for payment of FBT as the said FBT has been skip by the Finance Act 2009.

9. Directors Remuneration:

The Company has paid Rs.14,40,000/- towards Remuneration of Directors during the period. Further, the company has not computed net profits under Section 349 of the Companies Act, 1956 for the purpose of directors remuneration, since no commission is payable to the directors.

10. Retirement Benefits:

a. Provident Fund: Contribution to Provident Fund has been charges off to Profit & Loss Account.

b. Gratuity and leave Encashment: The Company does have any gratuity and leave Encashment Policy and hence no provision has been made in the books of accounts.

11. Capital Commitments:

Estimated amount of contracts to be executed on capital not provided for (net of advances)-Nil.


Mar 31, 2009

1. Financial Statements:

Financial Statements are prepared under historical cost convention and as a going concern, on accrual basis and in accordance with the generally accepted accounting principles and relevant requirements of the Companies Act, 1956.

2. Revenue Recognition:

Revenue from Sales is recognized on the basis of Invoice raised based on dispatches of products to its customers.

3. Expenses:

It is the policy of the Company to provide for all expenses on accrual basis. Similarly, Provisions are made for all known losses and liabilities.

4. Fixed Assets:

i) Tangible Assets: Fixed assets are stated at Acquisition cost less depreciation. Cost includes the original cost of acquisition and subsequent improvements thereto-including taxes, duties, freight and other identical expenses relating to acquisition and installation of the assets. Fixed Assets are capitalized on the date on which they are ready to put to use. Those Fixed Assets that are under construction / Installation is shown under Capital Work In Progress. Expenditure for maintenance and repairs are charged to Profit & Loss Account.

ii) Depreciation: The Company has the policy to provide depreciation on Tangible Assets on pro rata basis from the date the asset is put to use under Written Down Val ue Method (WDV) at the rates specified in Schedule XTV of the Companies Act, 1956.

Intangible Assets: No provision has been created for the write off of Goodwill arising out of Amalgamation during the period.

Individual assets costing Less than Rs. 5000/- each are fully depreciated in the year of purchase.

iii) Impairment of Assets: Consequent to the Accounting Standard 28 on "Impairment of Assets", the Company assesses at each Balance Sheet date whether there is any indication of impairment of assets and the effect of such impairment is considered in the books.

5. Investments: Investments held on the Balance Sheet date are valued at cost and at the rates reported in previous years. The Company has the policy to write off Permanent Diminution in the value of Investments to Revenue. However, the Company has not ascertained the value of Investments as at the Balance Sheet date and hence no provision has been made for the same.

6. Inventory:

The Company has valued Stock on Balance Sheet date at Cost or Net Realizable Value, whichever is lower. However, Consumables and Stores supplies are charged off to consumption at the time of purchase. They are not carried in the books of inventories since their value is not significant.

7. Taxes on Income:

Current Tax: Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed after considering tax allowances and exemptions.

Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified, and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and get reversed in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated liming differences at the end of an accounting period based on prevailing enacted or substantively enacted regulations. 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.

Fringe Benefit Tax: The Company has made a Provision of Rs. 2,37,098/- for the payment of Tax on Fringe Benefits provided to its Employees in accordance with Income Tax Act, 1961.

9. Directors Remuneration:

The Company has paid Rs. 4,50,000/- towards Remuneration of Directors during the period. Further, the Company has not computed net profits under Section 349 of the Companies Act, 1956 for the purpose of directors remuneration, since no commission is payable to the directors.

10. Retirement Benefits:

a. Provident Fund: Contribution to Provident Fund has been charged off to Profit & Loss Account.

b. Gratuity and Leave Encashment: The Company does not have any Gratuity and Leave Encashment Policy and hence no provision has been made in the books of account.

11. Capital Commitments:

Estimated amount of contracts to be executed on capital not provided for (net of advances) -NIL

12. Contingent Assets and Liabilities: There is no Contingent Asset or Liability for or against the Company not acknowledge as debt during the period.

13. Balances appearing under Secured Loans, Unsecured Loans, Sundry Debtors, Sundry Creditors, Loans and Advances are subject to confirmation and / or reconciliation, if any

14. Quantitative Details:

The Company has not maintained quantitative details of the information required under paragraphs 3 and 4 C of Part II of Schedule VI of the Companies Act, 1956 and hence are not furnished.

15. Foreign Currency Transactions:

The Company has no other Foreign Currency Transactions during the period. Since, the Company has no Foreign Exchange Income or Expenditure, disclosures required under Schedule VI of the Companies Act, 1956 is not applicable.

16. EPS:

In determining Earnings Per Share, the Company considers the net profit after tax and includes post-tax effect of extra-ordinary items. The number of share used in computing Earnings per share is Weighted Average Number of Equity Shares outstanding during the period.


Aug 31, 2008

1. Financial Statements:

Financial Statements are prepared under historical cost convention and as a going concern, on accrual basis and in accordance with the generally accepted accounting principles and relevant requirements ofthe CompaniesAct, 1956.

2. Revenue Recognition:

Revenue from Sales is recognized on the basis of Invoice raised based on dispatches of productstoits customers.

3. Expenses:

It is the policy of the Company to provide for all expenses on accrual basis. Similarly, Provisions are made for all known losses and liabilities.

4. Fixed Assets:

i) Tangible Assets: Fixed assets are stated at Acquisition cost less depreciation. Cost includes the original cost of acquisition and subsequent improvements thereto- including taxes, duties, freight and other identical expenses relating to acquisition and installation of the assets. Fixed Assets are capitalized on the date on which they are ready to put to use. Those Fixed Assets that are under construction / Installation is shown under Capital Work In Progress. Expenditure for maintenance and repairs are charged to Profit&LossAccount.

ii) Revaluation: During the period the Company has revalued Land. Gain arising out of such revaluationofRs. 70294600/- was transferred Revaluation Reserve.

iii) Depreciation: The Company has the policy to provide depreciation on Tangible Assets on pro-rata basis from the date the asset is put to use under Written Down Value Method (WDV) at the rates specified in Schedule XIV of the Companies Act, 1956.

Intangible Assets: No provision has been created for the write off of Goodwill arising out ofAmalgamation during the period.

Individual assets costing less than Rs. 5000/- each are fully depreciated in the year of purchase.

iv) ImpairmentofAssets: Consequent to theAccounting Standard 28 on "Impairment of Assets", the Company assesses at each Balance Sheet date whether there is any indication of impairment of assets and the effect of such impairment is considered in the books.

5. Investments: Investments held on the Balance Sheet date are valued at cost and at the rates reported in previous years. The Company has the policy to write off Permanent Diminution in the value of Investments to Revenue. However, the Company has not ascertained the value of Investments as at the Balance Sheet date and hencenoprovisionhas beenmade forthesame.

6. Inventory:

The Company has valued Stock on Balance Sheet date at Cost or Net Realizable Value, whichever is lower. However, Consumables and Stores supplies are charged off to consumption at the time of purchase. They are not carried in the books of inventories since their value is not significant.

7. Taxes on Income:

Current Tax: Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed after considering tax allowances and exemptions.

Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified, and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and get reversed in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of anaccounting period basedon prevailing enacted or substantively enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriatenessof their respective carrying values ateach balance sheet date.

Fringe Benefit Tax: The Company has made a Provision of Rs. 107646/- for the payment of Tax on Fringe Benefits provided to its Employees in accordance with IncomeTaxAct,1961.

9. Directors Remuneration:

The Company has paid Rs. 3,98,000/- towards Remuneration of Directors during the period and has made a provision of Rs. 80000/- as on the Balance Sheet date. Further, the Company has not computed net profits under Section 349 of the CompaniesAct, 1956 for the purpose of directors remuneration, since no commission is payable to the directors.

10. Retirement Benefits:

a. Provident Fund: Contribution to Provident Fund has been charged off to Profit & Loss Account.

b. Gratuity and Leave Encashment: The Company does not have any Gratuity and Leave Encashment Policy and hence no provision has been made in the books of account.

11. Capital Commitments:

Estimated amount of contracts to be executed on capital not provided for (net of advances)- NIL

 
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