Mar 31, 2014
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised. The gross block of fixed assets includes Rs. 132549291
on account of revaluation of fixed assets consequent to the said
revaluation there is an additional charge of depriciation of Rs.3310092
and and equivalent amount has been withdrawn from revaluation reserve
and credited to the Profit & Loss Account.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets is provided to the extent of depreciable
amount on written Straight Line Method (SLM) at the rates and in the
manner prescribed in Schedule XIV to the Companies Act. 1956.
Depreciation on intangible assets and software is provided @ 10% on
Straight Line Method and is amortized over a period of 10 Years.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised over
the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after ( providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
Work in Progress
Project and construction related work-in-progress at percentage of job
completed and at realizable value thereafter.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
Project related activity and contracts are recognised by applying
percentage completion to the contract value determined as a proportion
of the cost incurred to- date to the total estimated cost
K. Employee Benefits
(i) Short-term employee benefites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendred and as per the policy consitently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management''s assessment of the probable outcomes with
reference to the available information suplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
i) Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
ii) Liability on account interest on various borrowings from financial
institutions and ICDS which has not been provided for in the
accounts on account of litigation or classification as NPA is disclosed
under contigent liabilities on estimate basis.
P. Deferred Revenue Expenses
Deferred Revenue Expenditures are amortized over a period of 5 years,
comencing from the year next to the year of expenditure except in cases
mentioned otherwise in the notes on account.
Mar 31, 2013
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets ,
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss,'' if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised. The gross block of fixed assets includes Rs.132549291
on account of revaluation of fixed assets consequent to the said
revaluation there is an additional charge of depriciation of Rs.3310092
and and equivalent amount has been withdrawn from revaluation reserve
and credited to the Profit & Loss Account.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets is provided to the extent of depreciable
amount on written Straight Line Method (SLM) at the rates and in the
manner prescribed in Schedule XIV to the Companies Act.1956.
Depreciation on intangible assets and software is provided @ 10% on
Straight Line Method and is amortized over a period of 10 Years.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised
over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment ? ¦ . ''
Current investment are carried at cost . Long Term investments are
,stated at cost. Provision for diminution in the value of investments
is made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
Work in Progress
Project and construction related work-in-progress at percentage of job
completed and at realizable value thereafter.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
Project related activity and contracts are recognised by applying
percentage completion to the contract value determined as a proportion
of the cost incurred to- date to the total estimated cost
K. Employee Benefits
(i) Short-term employee benefites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendred and as per the policy consitently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management''s assessment of the probable outcomes with
reference to the available information suplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of
resources.Contingent Liabilities are not recognised but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
P. Deferred Revenue Expenses
Deferred Revenue Expenditures are amortized over a period of 5 years,
comencing from the year next to the year of expenditure except in cases
mentioned otherwise in the notes on account.
Mar 31, 2012
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
Company.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including fnancing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised. The gross block of fixed assets includes Rs. 132549291 on
account of revaluation of fixed assets consequent to the said
revaluation there is an additional charge of depreciation of Rs. 3310092
and equivalent amount has been withdrawn from revaluation reserve and
credited to the Profit & Loss Account.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/ depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets is provided to the extent of depreciable
amount on Written Straight Line Method (SLM) at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation on intangible assets and software is provided @ 10% on
Straight Line Method and is amortized over a period of 10 Years.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recognised over
the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost. Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
Work-in-Progress
Project and construction related work-in-progress at percentage of job
completed and at realizable value thereafter.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financial
institution.
Project related activity and contracts are recognised by applying
percentage completion to the contract value determined as a porportion
of the cost incurred to-date to the total estimated cost.
K. Employee benefits
(a) Short-term employee benefits are recognised as an expenses at the
undiscounted amount in the Profit and loss account in the year in which
the related service is rendered and as per the policy consistently
followed by the Company.
(b) The gratuity liability in respect of employees of the Company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(a) Claims for liquidated damages against the Company are recognised in
accounts based on management's assessment of the probable outcomes with
reference to the available information supplemented by experience of
similar transactions..
(b) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(c) Amounts due in respect of price escalation claims and/or variation
in contract work are recognised as revenue only when there are
conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to Profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
P. Deferred Revenue Expenses
Deferred Revenue Expenditures are amortized over a period of 5 years,
commencing from the year next to the year of expenditure except in
cases mentioned otherwise in the notes on account.
Mar 31, 2011
A. Accounting Conventions
i) The accounts are prepared under the historical cost convention in
accordance with generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
Company.
ii) The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
b. Sales
The revenue from :
i) Sales of Goods are recognised at the point of despatch of finished
goods to the customers.
ii) Project related activity and contracts are recognised by applying
percentage completion to the contract value determined as a proportion
of the cost incurred to- date to the total estimated cost.
iii) The export sales are converted at the exchange rate prevailing at
the time of transaction.
c. Foreign Currency Transaction
i) Transactions in foreign currencies are normally recorded at the
exchange rate prevailing at the time of the transactions.
ii) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the profit & loss account
except in the case of capital expenditure where they are adjusted
against the cost of relevant assets.
d. Employee Benefits
i) Short term employee benefits
Employee benefits payable wholly within twelve months of rendering the
service are classified as short term employee benefits and are
recognized in the period in which the employee renders the related
service
ii) Post employment benefits ( defined benefit plans)
The employees' gratuity scheme is defined benefit plan .The Gratuity
liability in respect of the employees of the Company has been covered
through LIC Policy. The premium paid for such policy is treated as
revenue expenditure.
iii) Post employment benefits (defined contribution plans)
Contribution to the Provident Fund is made in accordance with the
provisions of the Provident Fund Act, 1952 and is charged to revenue
account.
iv) Long term employee benefits
Long term employee benefits comprise of Leave Encashment. Leave
balances in respect of all employees as on 31st March, 2011 have been
accounted on the basis of last salary drawn by the employee and charged
to revenue account.
e. Fixed Assets
Fixed Assets are stated at historical cost less depreciation.
The gross block of Fixed Assets includes Rs 132549291 on account of
revaluation of Fixed Assets consequent to the said revaluation there is
an additional charge of depreciation of Rs. 3310092 and an equivalent
amount has been withdrawn from Revaluation Reserve and credited to the
Profit & loss Account.
f. Depreciation
i) Depreciation on fixed Assets has been provided on straight line
method in accordance with the provisions of section 205 (2) (b) of the
Companies Act, 1956 at the rate and in manner specified in schedule XIV
to the Companies Act, 1956.
ii) Depreciation of intangible assets and software is provided @ 10% on
straight-line method and is amortized over a period of 10 years.
g. Investments
Long term investments are stated at cost.
h. Inventories
Raw-materials, stores, spares and consumables are valued at cost,
Semi-finished goods are valued at cost of raw-material and the cost
incurred in the normal course of business in bringing the goods upto
the present condition on estimate basis or at realisable value, which
ever is lower. Finished goods are valued at selling price.
Work-in-progress
Project and construction related work-in-progress at percentage of job
completed and at realizable value thereafter.
i. Deferred Revenue Expenses
Deferred Revenue Expenditure are amortised over a period of 5 years,
commencing from the year next to the year of expenditure except in
cases mentioned otherwise in the notes on accounts.
Mar 31, 2010
A. Accounting Conventions
i) The accounts are prepared under the historical cost convention in
accordance with generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
Company.
ii) The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
b. Sales
The revenue from :
i) Sales of Goods are recognised at the point of despatch of finished
goods to the customers.
ii) Project related activity and contracts are recognised by applying
percentage completion to the contract value determined as a proportion
of the cost incurred - to- date to the total estimated cost.
iii) The export sales are converted at the exchange rate prevailing at
the time of transaction.
c. Foreign Currency Transaction
i) Transactions in foreign currencies are normally recorded at the
exchange rate prevailing at the time of the transactions.
ii) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the profit & loss account
except in the case of capital expenditure where they are adjusted
against the cost of relevant assets.
d. Employee Benefits
i) Short term employee benefits
Employee benefits payable wholly within twelve months of rendering the
service are classified as short term employee benefits and are
recognized in the period in which the employee renders the related
service.
ii) Post employment benefits (defined benefit plans)
The employeesà gratuity scheme is defined benefit plan. The Gratuity
liability in respect of the employees of the Company has been covered
through LIC Policy. The premium paid for such policy is treated as
revenue expenditure.
iii) Post employment benefits (defined contribution plans)
Contribution to the Provident Fund is made in accordance with the
provisions of the Provident Fund Act, 1952 and is charged to revenue
account.
iv) Long term employee benefits
Long term employee benefits comprise of Leave Encashment. Leave
balances in respect of all employees as on 31st March 2010 have been
accounted on the basis of last salary drawn by the employee and charged
to revenue account.
e. Fixed Assets
Fixed Assets are stated at historical cost less depreciation.
The gross block of Fixed Assets includes Rs 13,25,49,291/- on account
of revaluation of Fixed Assets consequent to the said revaluation there
is an additional charge of depreciation of Rs 3310092 /- and an
equivalent amount has been withdrawn from Revaluation Reserve and
credited to the Profit & loss Account.
f. Depreciation
i) Depreciation on fixed Assets has been provided on straight line
method in accordance with the provisions of section 205 (2) (b) of the
Companies Act, 1956 at the rate and in manner specified in schedule XIV
to the Companies Act, 1956.
ii) Depreciation of intangible assets and software is provided @ 10% on
straight-line method and is amortized over a period of 10 years.
g. Investments
Long term investments are stated at cost.
h. Inventories
Raw materials, stores, spares and consumables are valued at cost.
Semi-finished goods are valued at cost of Raw Material and the cost
incurred in the normal course of business in bringing the goods upto
the present condition on estimate basis or at realisable value, which
ever is lower. Finished goods are valued at selling price.
Work-in-progress
Project and construction related work-in-progress at percentage of job
completed and at realizable value thereafter.
i. Deferred Revenue Expenses
Deferred Revenue Expenditure is to be amortised over a period of 5
years, commencing from the year next to the year of expenditure except
in cases mentioned otherwise in the notes on accounts.
Market study expenses to explore feasibility of Engineering Services
Export and development expenses of LP heaters have been treated as
deferred revenue expenditure which is to be amortized over a period of
5 Years.