Mar 31, 2014
A) BASIS FOR OPERATION OF FINANCIAL STATEMENTS:
The financial statements are prepared under the historical cost
convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed by the Companies (Accounting
Standards) Rules, 2006 , the provisions of the Companies Act, 2013 (to
the extent notified) and the Companies Act, 1956 (to the extent
applicable) and guidelines issued by the Securities and Exchange Board
of India (SEBI). Accounting policies have been consistently applied
except where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
b) USE OF ESTIMATES:
The preparation of the financial statements in conformity with GAAP
requires the Management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and reported amounts of income and expenses during the
period. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in
estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates.
B) Fixed Assets :-
Fixed assets are stated at cost less depreciation reserve, and no
revaluation in case of fixed assets made during the year. There is no
manufacturing activity done during the year.
Fixed assets are stated at cost, less accumulated depreciation and
impairment, if any. Direct costs are capitalized until fixed assets are
ready for use. Capital work-in-progress comprises the cost of fixed
assets that are not yet ready for their intended use at the reporting
date. Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment. Goodwill comprises the excess of purchase
consideration over the fair value of the net assets of the acquired
enterprise. Goodwill arising on consolidation or acquisition is not
amortized but is tested for impairment.
C) Depreciation: -
Depreciation is claimed by the company as per the provisions of
Companies Act, including on revalued assets at the rates specified in
schedule XIV on original cost as per straight-line method & there is no
change in the method of charging depreciation as compared to previous
year.
Depreciation on fixed assets is provided on the straight-line method
over the useful lives of assets estimated by the Management.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for Rs.
5,000 or less) are depreciated over a period of one year from the date
of acquisition
D) Inventory:-
a) Raw material are valued at cost or net realisable value whichever is
lower.
b) Finished products are valued at cost or net realisable value
whichever is lower.
c) During the Previous year, company has sold old stock of materials to
the tune of Rs. 15287209.29, which has been sold at Scrap Value of Rs.
761250.00/- (Inclusive of Vat) thereby incurring loss of Rs.
14525959.29. As an Auditor of the company we have recommended the
management to value the stock as per net realizable value or cost
whichever is lower by the independent committee consisting of
independent valuer from outside and/or stores department. Against which
management has accepted the suggestion and assured us for the same.
E) Research & Development:- Nil
F) Revenue Recognition:-
Sale of goods is recognized on dispatch to customers. Sales include
amounts recovered towards sales tax and excise duty and are net of
returns. Also company has issued invoices for the late payment of the
bills and taken the charges as income. Sales include Tax Free Trading
of goods and Share trading.
G) Foreign Currency transaction :-
There are no foreign currency transactions during the year.
H) Investments:-
Investments are stated at cost. Interest accrued thereon is not
accounted.
Investments are either classified as current or long-term based on the
Management s intention at the time of purchase as per AS-13. Current
investments are carried at the lower of cost and fair value of each
investment individually.
Non Current Investments 31.03.2014 31.03.2013
Long Term Investments:
National Savings Certificate 16000.00/- 16000.00/-
Current Investments - -
Total Investments: 16000.00/- 16000.00/-
I) Cash & Cash Equivalents:-
Cash and cash equivalents comprise cash and cash on deposit with banks
and corporations. The Group considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amounts of cash to be
cash equivalents.
J) Accounting of Modvat Credit / Excise :-
Modvat credit is not accounted for separately, accordingly the stocks
are valued at cost. During the year company has availed vat set-off as
under
a) Maharashtra value added tax. Nil
b) Andhra Pradesh value added tax Rs. Nil
K) Provisions for Retirement Benefits :-
No provision is made separately nor any payment under the head made. It
is reported by the management that the payment shall be made on actual
payment basis. The company has suspended its business activity w.e.f.
28th July 2012 and workers dues have yet to be settled. The Comp any is
in the process of clearing the dues. Partial compensation to Staff &
Workers has been paid by the Company amounting to Rs. 33,12,800/- on
account of Closure of Factory at Hyderabad.
L) Taxes on Income:-
The provision for taxation has been made as per the provisions of
Income Tax Act, 1961.
A provision is made for income tax annually, based on the tax liability
computed, after considering tax allowances and exemptions. Provisions
are recorded when it is estimated that a liability due to disallowances
or other matters is probable.
M) Deferred Tax Liability/Asset:-
Deferred Ta x is accounted for subject to consideration of prudence of
deferred tax assets at the current rate of tax, on timing differences
being the difference between taxable incomes & accounting income that
originates in one period and are capable of reversal in one or more
subsequent periods. The difference in tax liability on carry forward
losses is also considered in the current year for accounting deferred
tax.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets in a situation where unabsorbed
depreciation and carry forward business loss exists, are recognized
only if there is virtual certainty supported by convincing evidence
that sufficient future taxable income will be available against which
such deferred tax asset can be realized. Deferred tax assets, other
than in a situation of unabsorbed depreciation and carry forward
business loss, are recognized only if there is reasonable certainty
that they will be realized.
N) Earnings Per Share:-
Basic earnings per share are computed by dividing the net profit after
tax by the weighted number of equity shares outstanding during the
period. Diluted earnings per share is computed by dividing the net
profit after tax by the weighted number of equity shares considered for
deriving basic earnings per share and also the weighted number of
equity shares that could have been issued upon conversion of all
dilutive potential equity shares.
The number of shares and potentially dilutive equity shares are
adjusted retrospectively for all periods presented for any share splits
and bonus shares issues.
Mar 31, 2012
A) The financial statements are prepared under the historical cost
convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
B) Fixed Assets :-
Fixed assets are stated at cost less depreciation reserve, and no
revaluation in case of fixed assets made during the year.
C) Depreciation: -
Depreciation is claimed by the company as per the provisions of
Companies Act, including on revalued assets at the rates specified in
schedule XIV on original cost as per straight-line method & there is no
change in the method of charging depreciation as compared to previous
year.
D) Inventory:-
a) Raw material are valued at cost or net realisable value whichever is
lower.
b) Finished products are valued at cost or net realisable value
whichever is lower.
c) During the year, company has sold old stock of materials to the tune
of Rs.239 lacs, which has been rejected by the vendor stating the
reason of goods having inferior quality after year end, as per
accounting standards we have valued the stock at not realizable value
of Rs. 59 lacs (scrap value) thereby incurring net loss of Rs. 180 lacs
in the account. Also we as on Auditors of the company has recommended
the management to value the stock as per net realizable value or cost
whichever is lower by the independent committee consisting of
independent valuer from outside and/or stores department. Against which
management has accepted the suggestion and assured us for the same.
E) Research & Development: - Nil
F) Revenue Recognition:-
Sale of goods is recognized on dispatch to customers. Sales include
amounts recovered towards sales tax and excise duty and are net of
returns. Also company has issued invoices for the late payment of the
bills and taken the charges as income.
G) Foreign Currency transaction :-
There are no foreign currency transactions during the year.
H) Investments:-
Investments are stated at cost. Interest accrued thereon is not
accounted.
I) Accounting of Modvat Credit / Excise: -
Modvat credit is not accounted for separately, accordingly the stocks
are valued at cost including excise duty. Excise duty is recognized on
the goods manufactured. During the year company has availed vat set-off
as under
a) Maharashtra value added tax Nil
b) Andhra Pradesh value added tax Rs. 97,35,425/-
J) Provisions for Retirement Benefits: -
No provision is made separately nor any payment under the head made. It
is reported by the management that the payment shall be made on actual
payment basis. The company has suspended its business activity w.e.f.
29.07.2012 and workers have been paid their due and outstanding.
However office staff is still working and their retirement benefits are
workable at that time.
K) Taxes on Income:-
The provision for taxation has been made as per the provisions of
Income Tax Act, 1961.
L) Deferred Tax Liability/Asset:-
Deferred Tax is accounted for subject to consideration of prudence of
deferred tax assets at the current rate of tax, on timing differences
being the difference between taxable incomes & accounting income that
originates in one period and are capable of reversal in one or more
subsequent periods. The difference in tax liability on carry forward
losses is also considered in the current year for accounting deferred
tax.
Mar 31, 2011
The financial statements are prepared under the historical cost
convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
B) Fixed Assets :-
Fixed assets are stated at cost less depreciation reserve, and no
revaluation in case of fixed assets made during the year.
C) Depreciation: -
Depreciation is claimed by the company as per the provisions of
Companies Act, including on revalued assets at the rates specified in
schedule XIV on original cost as per straight-line method & there is no
change in the method of charging depreciation as compared to previous
year.
D) Inventory:-
a) Raw material are valued at cost or net realisable value whichever is
lower.
b) Finished products are valued at cost or net realisable value
whichever is lower.
E) Research & Development: - Nil
F) Revenue Recognition:-
Sale of goods is recognized on dispatch to customers. Sales include
amounts recovered towards sales tax and excise duty and are net of
returns.
G) Foreign Currency transaction :-
There are no foreign currency transactions during the year.
H) Investments:-
Investments are stated at cost. Interest accrued thereon is not
accounted.
I) Accounting of Modvat Credit / Excise: -
Modvat credit is not accounted for separately, accordingly the stocks
are valued at cost including excise duty. Excise duty is recognized on
the goods manufactured. During the year company has availed vat set-off
as under
a) Maharashtra value added tax Rs.9,89,476/-
b) Andhra Pradesh value added tax Rs.60,44,248/-
J) Provisions for Retirement Benefits: -
No provision is made separately nor any payment under the head made. It
is reported by the management that the payment shall be made on actual
payment basis.
K) Taxes on Income:-
The provision for taxation has been made as per the provisions of
Income Tax Act, 1961.
L) Deferred Tax Liability/Asset:-
Deferred Tax is accounted for subject to consideration of prudence of
deferred tax assets at the current rate of tax, on timing differences
being the difference between taxable incomes & accounting income that
originates in one period and are capable of reversal in one or more
subsequent periods. The difference in tax liability on carry forward
losses is also considered in the current year for accounting deferred
tax.
Mar 31, 2010
The financial statements are prepared under the historical cost
convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
B) Fixed Assets
Fixed assets are stated at cost less depreciation reserve, and no
revaluation in case of fixed assets made during the year. Additions to
plant & machinery and car have been made during the year.
C) Depreciation
Depreciation is claimed by the company as per the provisions of
Companies Act, including on revalued assets at the rates specified in
schedule XIV on original cost as per straight-line method & there is no
change in the method of charging depreciation as compared to previous
year. Depreciation has been charged on additions to fixed assets.
D) Inventory
a). Raw material are valued at cost or net realisable value whichever
is lower.
b). Finished products are valued at cost or net realisable value
whichever is lower.
E) Research & Development: Nil
F) Revenue Recognition
Sale of goods is recognized on dispatch to customers. Sales include
amounts recovered towards sales tax and excise duty and is net of
returns.
G) Foreign Currency transaction
There are no foreign currency transactions during the year.
H) Investments
Investments are stated at cost. Interest accrued thereon are not
accounted.
I) Accounting of Modvat Credit/Excise
Modvat credit is not accounted for separately, accordingly the stocks
are valued at cost including excise duty. Excise duty is recognized on
the goods manufactured.
J) Provisions for Retirement Benefits
No provision is made separately nor any payment under the head is made.
It is reported by the management that the payment shall be made on
actual payment basis.
K) Taxes on Income :-
The provision for taxation has been made as per the provisions of
Income Tax Act, 1961.
L) Deferred Tax Liability/Asset :-
Deferred Tax is accounted for subject to consideration of prudence of
deferred tax assets at the current rate of tax, on timing differences
being the difference between taxable income & accounting income that
originates in one period and are capable of reversal in one or more
subsequent periods. The difference in tax liability on carry forward
losses is also considered in the current year for accounting deferred
tax.
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