Mar 31, 2015
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
(i) In compliance with the accounting standards referred to in section
133 and the order relevant provision of the companies Act, 2013 to the
extent applicable, the company follows the accrual system of accounting
in general and the historical cost convention in accordance with the
generally accepted Accounting Principles (GAAP).
(ii) The preparation of accounting statements in conformity with GAAP
requires the management to make assumption and estimates that effect
the reported amounts of assets and liabilities and discloser of
contingent liabilities as at the date of the financial statements and
amount of income and expenses during The period reported under the
financial statements. Any revision to the accounting estimates are
recognised prospectively when revised.
(iii) All assets and liabilities have been classified as current and
non current as per the companies' normal operating cycle and other in
the in the schedule VI to the companies Act 1956. Based on the nature
of products and the time between the acquisition of assets for
processing and their realisation 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.
1.2 Use of estimates
The preparation of the financial statements In conformity with Indian
Accounting Standards requires the Management to make estimates and
assumptions considered in the reported amounts 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 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 / materialise.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO basis) and the net
realisable value after providing for obsolescence and other losses,
where considered necessary. Cost includes all charges in bringing the
goods to the point of sale, including octroi and other levies, transit
insurance and receiving charges.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balance (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
the are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes ii value.
1.5 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and 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.
1.6 Fixed Assets and Depreciation
Fixed Assets are recorded in the books of accounts at their original
cost of acquisition. As per the requirement of the provisions of
Schedule II of the Companies Act, 2013 (the "Act"), the Management has
decided to adopt the useful lives as suggested in Part C of Schedule II
of the Act with effect from 1st April,
1.7 Revenue recognition
Sale of goods
Sales are recognised, 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. Sales
exclude sales tax and value added tax.
1.8 Other income
interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.9 Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments, Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties,
1.10. Employee benefits
No provision for gratuity and Leave Encashment on retirement has been
made.
1.11 Others
Previous years figures have been recast and regrouped wherever
necessary.
1.12 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of 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 potentially dilutive equity
shares are adjusted for share splits / reverse share splits and bonus
shares, as appropriate.
1.13 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in 'the Balance Sheet when it is probable
that future economic benefit associated with it will flow to the
Company.
Deferred tax is recognised as per Accounting Standard -22 issued by
ICAI.
Mar 31, 2014
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
(i) In compliance with the accounting standards referred to in section
211(3C) and the order relevant provision of the companies act, 1956 to
the extent applicable, the company follows the accrual system of
accounting in general and the historical cost convention in accordance
with the generally accepted Accounting Principles (GAAP).
(ii) The preparation of accounting statements in conformity with GAAP
requires the management to make assumption and estimates that effect
the reported amounts of assets and liabilities and discloser of
contingent liabilities as at the date of the financial statements and
amount of income and expenses during the period reported under the
financial statements. Any revision to the accounting estimates are
recognised prospectively when revised.
(iii) All assets and liabilities have been classified as current and
non current as per the companies'' normal operating cycle and other
criteria set out in the in the schedule VI to the companies Act 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation 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.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
Accounting Standards requires the Management to make estimates and
assumptions considered in the reported amounts 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 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 / materialise.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO basis) and the net
realisable value after providing for obsolescence and other losses,
where considered necessary. Cost includes all charges in bringing the
goods to the point of sale, including octroi and other levies, transit
insurance and receiving charges.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.5 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and 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.
1.6 Fixed Assets and Depreciation
Fixed Assets are recorded in the books of accounts at their original
cost of acquisition. Depreciation has been provided on the
straight-line method as per the rates prescribed in Schedule XIV to the
Companies Act, 1956.
1.7 Revenue recognition
Sale of goods
Sales are recognised, 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. Sales
exclude sales tax and value added tax.
1.8 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.9 Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
1.10. Employee benefits
No provision for gratuity and Leave Encashment on retirement has been
made.
1.11 Others
Previous years figures have been recast and regrouped wherever
necessary.
1.12 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of 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 potentially dilutive equity
shares are adjusted for share splits / reverse share splits and bonus
shares, as appropriate.
1.13 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised as per Accounting Standard -22 issued by
ICAI.