Mar 31, 2015
3.1 Ues of estimates
The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.
Raw Materials & Work-In-Progress are valued at cost and Finished Goods are valued at lower of the cost or net realisable value.
3.3 Depreciation and amortisation
Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule 11, except in respect of certain assets.
3.4 Revenue recognition
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer. This coincides with the passing of possession to the buyer.
Expenses are accounted on accrual basis and provision is made for all known and liabilities.
3.6 Tangible fixed assets .
Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date.. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase inthe future benefits from such asset beyond its previously assessed standard of performance. Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.
Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book value of the asset given up, adjusted for any balancing cash consideration. Fair market value is determined either for the assets acquired or asset given up, whichever is more clearly evident. Fixed assets acquired in exchange for securities of the Company are recorded at the fair market value of the assets or the fair market value of the securities issued, whichever is more clearly evident.
Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and interest.
3.7 Foreign Exchange Transaction:
All the Foreign Exchange transactions entered into during the current financial year are accounted at the exchange rate prevailing on the date of documentation/invoicing. Foreign Exchange Fluctuation on transactions entered into during the current financial year and receivedlpaid during the year are accounted in the current financial year. ,The outstanding foreign currency debtors are restated at the Foreign Currency Rate; prevailing at the end of the year and thk Foreign Exchange Fluctuation on the same is also recognised at the enc of the year in conformity with the revised Accounting Standard 11 and foreign currency debtors which arc doubtful at the end of the year are not restated at the foreign currency rates prevailing at the end of the year.
3.8 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs incurred to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to constructidn / development of the qualifying asset upto the date o capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspende. and charged to the Statement of Profit and Loss during extended periods when active development activity oi the qualifying assets is interrupted.
3.9 Earnings per share
Basic earnings per suare is computed by dividing the profit / (Loss) after tax (Intuiting the post tax effect or extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per Share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at-a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and
3.10 Taxes on income
Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.
3.11 Impairment of assets
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the geater of thenet selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present vaiue based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and toss, except in case of revalued assets.
3.12 Provisions and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the'best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.
Provision shall b& made in the accounts for the dividends payable by the company as and when recommended by the Board of Directors, pending approval of the share holders at the Annual General Meeting.
Mar 31, 2010
1. BASIS OF ACCOUNTING:
The Financial statements are prepared under Historical costs convention on actual method of accounting and are in accordance with the requirements of the Companies Act, 1956.
2. FIXED ASSETS:
To state Fixed Assets at cost of acquisition inclusive of inward freight duties, taxes and incidental expenses related to acquisition.
3 VALUATION OF INVENTORY:
Raw Material at cost, Finished Goods are valued at Cost or Market value which ever is lower.
The Depreciation is calculated on SLM method under Schedule xiv of the Companies Act, 1956
5. RECOGNITION OF INCOME & EXPENDITURE:
Revenues/Incomes and Costs/Expenditures are generally accounted on the basis of as they are earned or incurred.
6. EMPLOYEE BENEFITS:
The company is covering PF & ESI and they are regular in Deposting into respective Accounts. The gratuity is no providing in the accounts.
7. CONTINGENT LIABILITY:
During the year the company is not having any contingent Liabilities.