Mar 31, 2015
BASIS OF PREPARATION :
The Company follows the accrual method of accounting. The financial
statements have been prepared in accordance with historical cost
convention and accounting principles generally accepted in India.
Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of
the Companies (Accounts) Rules, 2014, till the standards of accounting
or any addendum thereto are prescribed by the Central Government in
consultation and recommendation of the National Financial Reporting
Authority, the existing Accounting Standards notified under the
Companies Act, 1956 shall continue to apply. Consequently these
financial statements have been prepared to comply in all material
aspects with the accounting standards notified under Section 211(3C) of
Companies Act, 1956 (Companies (Accounting Standards) Rules, 2006, as
amended) and other relevant provisions of Companies Act, 2013.
USE OF ESTIMATES :
The preparation of Financial Statements requires the management to make
estimates and assumptions in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Further results could differ from these estimates.
ASSETS CLASSIFICATION :
All assets and liabilities have been classified as current or non
current as per the Company's normal operating cycle and other criteria
set out in the Schedule III to the Companies Act, 2013. Based on the
nature of products and the time between the acquisition of assets for
processing and their realization 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.
INFLATION :
Assets and liabilities are recorded at historical cost to the Company
(except so far as they relate to (a) revaluation of fixed assets and
providing for deprecation on revalued amounts and (b) items covered
under "Accounting Standard (AS) - 30" on Financial Instruments;
Recognition and Measurement" which have been measured at their fair
value). These costs are not adjusted to reflect the changing value in
the purchasing power of money.
REVENUE RECOGNITION :
a) Sales are recorded net of trade discounts, rebates and include
excise duty, if any. Income from service is recognized as they are
rendered based on arrangement/agreements with concerned parties.
b) Revenue from services is recognized based on the services rendered
in accordance with the terms of contracts.
VALUATION OF INVENTORY :
Inventories are valued at cost or net realizable value whichever is
lower.
FIXED ASSETS AND DEPRECIATION :
Tangible Assets :
Fixed assets are stated at their original cost of acquisition less
accumulated depreciation and impairment losses. Cost comprises of all
costs incurred to bring the asses to their location and working
condition.
Till 1st April, 2014, Depreciation on Fixed Assets was provided on pro
rate basis for the period of use on straight line method (SLM) as per
rates specified in the Schedule XIV of the Companies Act, 1956.
Effective from 1st April, 2014, the Company depreciates its fixed
assets over useful life in the manner prescribed in Schedule II of the
Companies Act, 2013.
INTANGILBE ASSETS :
Intangible assets are stated at their cost of acquisition less
accumulated amortization and impairment losses. An intangible assets is
recognized, where it is probable that the future economic benefits
attributable to the assets will flow to the enterprise and where its
value/cost can be reliably measured.
IMPARMENT OF ASSETS :
An asset is considered as impaired in accordance with Accounting
Standard 28 on Impairment of Assets when at balance sheet date there
are indications of impairment and the carrying amount of the assets or
where applicable, the cash generating unit to which the asset belongs,
exceeds its recoverable amount (i.e. the higher of the assets net
selling price and value in use). The carrying amount is reduced to the
recoverable amount and the reduction is recognized as an impairment
loss in the Statement of Profit and Loss account.
Assessment is also done at each Balance Sheet date as to whether there
is any indication that an impairment loss recognized for an asset in
prior accounting periods may no longer exist or may have decreased
INVESTMENTS :
Investments are classified as Long Term Investments and Current
Investments. Long Term Investments are stated at cost less permanent
diminution in value, if any. Current Investments are stated at lower of
cost and net realizable value.
Investments in associates are valued at cost less any provision for
impairment. Investments are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be
recoverable.
Investments in property, Investments in building that are not intended
to be occupied substantially for use by, or in the operations of the
Company have been classified as investment property. Investment
properties are carried at cost less accumulated depreciation.
DERIVATIVES & COMMODITY HEDGING TRANSACTIONS :
In order to hedge its exposure to foreign exchange, interest rate and
commodity price risks, the Company enters into forward, option, swap
contracts and other derivative financial instruments. The Company
neither hold nor issues any derivatives financial instruments for
speculative purposes.
Derivative financial instruments are initially recorded at their fair
value on the date of the derivative transaction and are re-measured at
their fair value at subsequent balance sheet dates.
Change in the fair value of derivatives that are designated and qualify
as cash flow hedges and are determined to be an effective hedge are
recorded in hedging reserve account. To designate a forward contract or
option as an effective hedge, management, objectively evaluates
evidences with appropriate supporting documents at the inception of
each contract whether the contract is effective in achieving offsetting
cash flows attributable to hedged risk. Ay cumulative gain or loss on
the hedging instrument recognized in hedging reserve is kept in hedging
reserve until the forecast transaction occurs or the hedged accounting
is discontinued. Amount deferred to hedging reserve are recycled in the
Statement of Profit and Loss in the periods when the hedged item is
recognized in the Statement of Profit and Loss or when the portion of
the gain or loss is determined to be an ineffective hedge.
Derivative Financial instruments that do not qualify for hedge
accounting are marked to market at the balance sheet date and gains or
losses are recognized in the Statement of Profit and Loss immediately.
Hedge accounting is discontinued when the hedging instrument expires or
is sold, terminated or exercised, or no longer qualifies for hedge
accounting. If a hedged transaction is no longer expected to occur, the
net cumulative gain or loss recognized in hedging reserve is
transferred to profit of Loss for the year.
EMPLOYEE BENEFITS :
The Company's Contributions to State Plans namely Employees Provident
Fund, Employee's State Insurance Fund and Employee's Pension Scheme are
charged to revenue every year.
No provision for gratuity has been made during the year and the
liability for the same has not been ascertained by the company till the
end of the accounting year and same will be accounted on cash basis.
BORROWING COST :
Borrowing costs include interest, fees and other charges incurred in
connection with the borrowing of funds. It is calculated on the basis
of effective interest rate in accordance with Accounting Standard
(AS)-30 and considered as revenue expenditure and charged to Statement
of Profit and Loss for the year in which it is incurred except for
borrowing costs either generally or specifically attributed directly to
the acquisition/ improvement of qualifying assets up to the date when
such assets are ready for intended use which are capitalized s a part
of the Cost of such asset.
TAXES ON INCOME :
Tax expense consists of both current as well as deferred tax. Current
tax represent amount of income tax payable including the tax payable
U/s 115JB, if any, in respect of taxable income for the year.
Minimum Alternate Tax Credit is recognized as an asset only when and to
the extent there is convincing evidence that the Company will pay
normal income tax within the specified period.
Deferred tax is recognized on timing difference between the accounting
income and taxable income for the year that originates in one period
and capable of reversal in one or more subsequent period. Such deferred
tax is quantified using the tax rates and laws enacted or substantively
enacted as on the Balance sheet date.
Deferred Tax asset is recognized and carried forward to the extent that
there is a virtual certainty supported by convincing evidence that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provisions involving a substantial degree of estimation in measurement
are recognized when there is a preset obligation as a result of past
events and it is probable that there will be an outflow or resources.
Contingent liabilities are not recognized but are disclosed in the
accounts by way of a note. Contingent assets are neither recognized nor
disclosed in the financial statements.
Mar 31, 2014
BASIS OF PREPARATION
The Company follows the accrual method of accounting. The financial
statements have been prepared in accordance with historical cost
convention and accounting principles generally accepted in India. The
financial Statements comply with the requirements of the Accounting
Standards notified under Section 211 (3C) [Companies (Accounting
Standards) Rules. 2006, as amended] and other relevant provisions of
the Companies Act, 1956
USE OF ESTIMATES
The preparation of Financial Statements requires the management to make
estimates and assumptions in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Further results could differ from these estimates.
ASSETS CLASSIFICATION
All assets and liabilities have been classified as current or non
current as per the Company''s normal operating cycle and other criteria
set out 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 realization 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.
INFLATION
Assets and liabilities are recorded at historical cost to the Company
(except so far as they relate to (a) revaluation of fixed assets and
providing for deprecation on revalued amounts and (b) items covered
under "Accounting Standard (AS) - 30" on Financial Instruments;
Recognition and Measurement" which have been measured at their fair
value). These costs are not adjusted to reflect the changing value in
the purchasing power of money.
REVENUE RECOGNITION
a) Sales are recorded net of trade discounts, rebates and include
excise duty. Income from service is recognized as they are rendered
based on arrangement/agreements with concerned parties,
b) Revenue from services is recognized based on the services rendered
in accordance with the terms of contracts.
VALUATION OF INVENTORY
Inventories are valued at cost or net realizable value whichever is
lower.
FIXED ASSETS AND DEPRECIATION Tangible Assets
Fixed assets are stated at their original cost of acquisition less
accumulated depreciation and impairment losses. Cost comprises of all
costs incurred to bring the asses to their location and working
condition.
Depreciation on Fixed Assets is provided on pro rate basis for the
period of use on straight line method (SLM) as per rates specified in
the Schedule XIV of the Companies Act, 1956
INTANGILBE ASSETS
Intangible assets are stated at their cost of acquisition less
accumulated amortization and impairment losses. An intangible assets is
recognized, where it is probable that the future economic benefits
attributable to the assets will flow to the enterprise and where its
value/cost can be reliably measured.
The Company capitalized software and related implementation costs where
it is reasonably estimated that the software have an enduring useful
life.
IMPARMENT OF ASSETS
An asset is considered as impaired in accordance with Accounting
Standard 28 on Impairment of Assets when at balance sheet date there
are indications of impairment and the carrying amount of the assets or
where applicable, the cash generating unit to which the asset belongs,
exceeds its recoverable amount (i.e. the higher of the assets net
selling price and value in use). The carrying amount is reduced to the
recoverable amount and the reduction is recognized as an impairment
loss in the Statement of Profit and Loss account.
Assessment is also done at each Balance Sheet date as to whether there
is any indication that an impairment loss recognized for an asset in
prior accounting periods may no longer exist or may have decreased
INVESTMENTS
Investments are classified as Long Term Investments and Current
Investments. Long Term Investments are stated at cost less permanent
diminution in value, if any. Current Investments are stated at lower of
cost and net realizable value.
Investments in associates are value at cost less any provision for
impairment. Investments are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be
recoverable.
Investments in property, Investments in building that are not intended
to be occupied substantially for use by, or in the operations of the
Company have been classified as investment property. Investment
properties are carried at cost less accumulated depreciation.
DERIVATIVES & COMMODITY HEDGING TRANSACTIONS
In order to hedge its exposure to foreign exchange, interest rate and
commodity price risks, the Company enters into forward, option, swap
contracts and other derivative financial instruments. The Company
neither hold nor issues any derivatives financial instruments for
speculative purposes.
Derivative financial instruments are initially recorded at their fair
value on the date of the derivative transaction and are re-measured at
their fair value at subsequent balance sheet dates.
Change in the fair value of derivatives that are designated and qualify
as cash flow hedges and are determined to be an effective hedge are
recorded in hedging reserve account. To designate a forward contract or
option as an effective hedge, management, objectively evaluates
evidences with appropriate supporting documents at the inception of
each contract whether the contract is effective in achieving offsetting
cash flows attributable to hedged risk. Ay cumulative gain or loss on
the hedging instrument recognized in hedging reserve is kept in hedging
reserve until the forecast transaction occurs or the hedged accounting
is discontinued. Amount deferred to hedging reserve are recycled in the
Statement of Profit and Loss in the periods when the hedged item is
recognized in the Statement of Profit and Loss or when the portion of
the gain or loss is determined to be an ineffective hedge.
Derivative Financial instruments that do not qualify for hedge
accounting are marked to market at the balance sheet date and gains or
losses are recognized in the Statement of Profit and Loss immediately.
Hedge accounting is discontinued when the hedging instrument expires or
is sold, terminated or exercised, or no longer qualifies for hedge
accounting. If a hedged transaction in no longer expected to occur, the
net cumulative gain or loss recognized in hedging reserve is
transferred to profit of Loss for the year.
EMPLOYEE BENEFITS
The Company''s Contributions to State Plans namely Employees Provident
Fund, Employee''s State Insurance Fund and Employee''s Pension Scheme are
charged to revenue every year.
No provision for gratuity has been made during the year and the
liability for the same has not been ascertained by the company till the
end of the accounting year and same will be accounted on cash basis.
BORROWING COST
Borrowing costs include interest, fees and other charges incurred in
connection with the borrowing of funds. It is calculated on the basis
of effective interest rate in accordance with Accounting Standard (AS)
-30 and considered as revenue expenditure and charged to Statement of
Profit and Loss for the year in which it is incurred except for
borrowing costs either generally or specifically attributed directly to
the acquisition/ improvement of qualifying assets up to the date when
such assets are ready for intended use which are capitalized s a part
of the Cost of such asset.
TAXES ON INCOME
Tax expense consists of both current as well as deferred tax. Current
tax represent amount of income tax payable including the tax payable
U/s 115JB, if any, in respect of taxable income for the year.
Minimum Alternate Tax Credit is recognized as an asset only when and to
the extent there is convincing evidence that the Company will pay
normal income tax within the specified period.
Deferred tax is recognized on timing difference between the accounting
income and taxable income for the year that originates in one period
and capable of reversal in one or more subsequent period. Such deferred
tax is quantified using the tax rates and laws enacted or substantively
enacted as on the Balance sheet date.
Deferred Tax asset is recognized and carried forward to the extent that
there is a virtual certainty supported by convincing evidence that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving a substantial degree of estimation in measurement
are recognized when there is a preset obligation as a result of past
events and it is probable that there will be an outflow or resources.
Contingent liabilities are not recognized but are disclosed in the
accounts by way of a note. Contingent assets are neither recognized nor
disclosed in the financial statements.
Mar 31, 2010
1. System of Accounting -
The company generally follows mercantile system of accounting and
recognises Income and Expenditure on accrual basis. ii) The financial
statements are prepared on historical cost basis and as a going
concern, in accordance with normally accepted Accounting principles and
the provisions of the Companies Act, 1956 as followed consistently by
the company
2. Fixed Assets and Depreciation
A. Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation. No revaluation has been made in any fixed
assets.
B. Depreciation is charged on fixed assets on following basis:
i) On straight line method applying rates as per schedule XIV of The
Companies Act, 1956 for the assets in use for full year.
ii) On the assets added during the year, on pro-rata basis with
reference to the date of addition.
3. Investments
All investments are held as Long Term Investments, unless otherwise
mentioned and are stated at cost unless there is a permanent fall in
the value of investments.
4. Inventories
i) Inventories are valued at cost or net realisable value whichever is
lower.
5, Taxation:
(i) Provision for current tax is made on the assessable income computed
for the accounting period in accordance with the Income Tax Act, 1961.
(ii) Deferred Tax is recognised, subject to the consideration of
prudence, on timing differences, calculated by applying tax rates and
tax laws that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets arising mainly on account of business
losses and capital losses under tax laws are recognised, only if there
is a virtual certainty of its realisation supported by convincing
evidence. At each balance sheet date, the carrying amount of deferred
tax assets is reviewed to reassure realisation.
Mar 31, 2009
1. System of Accounting
(i) The company generally follows mercantile system of accounting and
recognises Income and Expenditure on accrual basis.
ii) The financial statements are prepared on historical cost basis and
as a going concern, in accordance with normally accepted Accounting
principles and the provisions of the Companies Act, 1956 as followed
consistently by the company.
2. Fixed Assets and Depreciation
A. Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation. No revaluation has been made in any fixed
assets.
B. Depreciation is charged on fixed assets on following basis:
i) On straight line method applying rates as per schedule XIV of The
Companies Act, 1956 for the assets in use for full year.
ii) On the assets added during the year, on pro-rata basis with
reference to the date of addition.
3. Investments
All investments are held as Long Term Investments, unless otherwise
mentioned and are stated at cost, unless there is a permanent fall in
the value of investments.
4. Inventories
i) Inventories are valued at cost or net realisable value whichever is
lower.
5. Taxation:
(i) Provision for current tax is made on the assessable income computed
for the accounting period in accordance with the Income Tax Act, 1961.
(ii) Deferred Tax is recognised, subject to the consideration of
prudence, on timing differences, calculated by applying tax rates and
tax laws that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets arising mainly on account of business
losses and capital losses under tax laws are recognised, only if there
is a virtual certainty of its realisation, supported by convincing
evidence. At each balance sheet date, the carrying amount of deferred
tax assets is reviewed to reassure realisation.