Mar 31, 2015
A. Use of Estimates:
The preparation of financial statements requires estimates and assumptions to be made that affect the re- ported 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 are recognized in the period in which the results are known/ materialized.
b. Revenue recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.
Sale of Products:
Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Interest income is recognized on a time proportion basis taking into account the amount out- standing and the applicable rates.
Current Tax: provision for current income tax is made on the taxable income using the applicable tax rates and tax laws.
d. Provisions and Contingent Liabilities
Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obliga- tion and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.
e) Foreign Currency Transactions:
The Company translates all foreign currency transactions at Exchange rates prevailing on the date of transactions. Exchange rate differences resulting from foreign exchange transactions settled during the year are recognized as income or expenses in the period in which they arise.
Monetary current assets and current liabilities that are denominated in foreign currency are translated at the exchange rate prevalent at the date of the balance sheet. The resulting difference is also recorded in the statement of Profit and loss.
a) Related Party Disclosures:
List of Transactions with key management personel during the year:
Particulars Nature of Relation Nature Of Transactions
Vijay Kumar Deekonda Whole time-director Managerial Remuneration
Particulars 2014-15 2013-14
Vijay Kumar Deekonda 2,40,000 0