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Accounting Policies of Haria Exports Ltd. Company

Mar 31, 2015

I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on an accrual basis and are in compliance with pursuant to section 133 of the Companies Act,2013 read with Rule 7 of the Companies (Account) Rules,2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under 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 the Companies Act, 2013.

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 Revised 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 up to twelve months for the purpose of current and non-current classification of assets and liabilities.

ii) USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements,estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future peiods.

iii) TANGIBLE FIXED ASSETS AND DEPRECIATION:

TANGIBLE FIXED ASSETS:

Tangible fixed assets are stated at cost, less accumulated depreciation and impairment loss if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.There are no fixed assets in the company during the year under consideration, hence there is nothing to report under this clause.

CAPITAL WORK IN PROGRESS:

Expenses incurred towards acquisition of fixed assets which have not been installed or not put to use before the year end are disclosed under capital work in progress and no depreciation has been provided on that.However there is no Capital Work in Progress during the year under consideration.

DEPRECIATION:

Depreciation is provided on pro rata basis on the straight line method over the remaining useful lives of the asstes in the manner prescribed by Schedule II of the Companies Act, 2013, as against the past practice of computing the depreciation at rates with refrence to the life of assets subject to the minimum rates provided by Schedule XIV of the Companies Act, 2013.However since there are no Fixed Assets during the year under consideration, No depreciation is charged.

iv) INTANGIBLE FIXED ASSETS AND AMORTISATION:

Intangible assets are recognized when it is probable that the future economic benefit attributable to the assets will flow to the Company and its cost can be reliably measured.Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a straight line basis over their estimated useful lives.

Expenditure incurred on acquisition/development of intangible assets which are not put/ready to use at the reporting date is disclosed under intangible assets under development. However there are no such intangible assets for the year under consideration.

v) IMPAIRMENT OF ASSETS:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss if any is charged to Statement of Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.However there is no such impairment in the year under consideration.

vi) INVENTORY:

Raw Material, Consumable Store & Spares and Packing Material are valued at lower of cost or net realizable value. However, these items are considered to be realizable at cost if the finished products in which they will be used, are expected to be sold at or above cost.However there is no Raw Material for the year under consideration.

Finished Goods and Work in Progress are valued at lower of cost or net realizable value. Cost of Finished Goods and Work in Progress includes the cost of conversion and other costs incurred to bring the inventories to their present location and condition.

Stock in Trade is valued at lower of cost or net realizable value. However there is no stock in trade at the year end.

Cost ofinventories is computed on FIFO basis.

Obsolete stock if any is valued at net realizable value.

vii INVESTMENTS:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

Investments are recorded at cost on the date of purchase, which includes acquisition charges such as brokerage, stamp duty, taxes, etc. Current Investments are stated at lower of cost and quoted/fair value. Provision for diminution in the value of Long Term Investments is made, only if, in the opinion of the management, such a decline is regarded as being other than temporary. However there are no such investments of the company in the year under consideration.

viii) GOVERNMENT GRANTS

Government Grants are recognized when there is reasonable assurance that the same will be received and all attaching conditions will be complied with. Revenue grants are recognized in the Statement of Profit & Loss account. Capital grants relating to specific Tangible/Intangible assets are reduced from the gross value of the respective Tangible/Intangible assets. Other capital grants in nature of promoter's contribution are credited to capital reserve.

However no government grants are received by the company in the year under consideration.

ix) REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and can be reliably measured.

SALE OF GOODS:

Domestic Sale is recognized on dispatch to customers and is net of returns. "Sales" includes basic sales value and excise, but excludes other recoveries such as insurance, sales tax etc.Export Sales is recognised on shipment of goods.

OTHER OPERATING REVENUE

Other operating revenue includes labour charges on accrual basis, and scrap sales on actual sale. Export Incentives are accounted as and when they are received.

OTHER INCOME:

Interest is recognized on Time Proportion Basis with reference to principal outstanding and rate of Interest applicable.Rent income is received on renting their immovable properties and amenities on accrual basis.

x) EMPLOYEE BENEFITS:

Retirement benefits to employees comprise of provident fund contributions, gratuity and leave encashment entitlements. Contribution to Provident Fund is made in accordance with the statute and provided on accrual basis. Gratuity are provided for, according to the rules of these benefit schemes, on the basis of actuarial valuation done at the year-end by independent actuaries using the Projected Unit Credit Method. Actuarial losses/gains are recognized in the Statement of Profit and Loss in the year in which they arise. Leave encashment are paid in the year in which they accrue.

xi) FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of transaction. The exchange difference resulting from settled transactions is recognized in the statement of profit and loss if applicable.Year end balances of monetary items are restated at the year end exchange rates and the resultant net gain or loss is recognized in the statement of profit and loss.

Premium or discounts on forward contracts where there are underlying assets/liabilities are amortized over the life of the contract. Such foreign exchange forward contracts are revalued at the Balance Sheet date and the exchange difference between the spot rate at the date of contract and spot rate on the Balance Sheet date is recognized as gain/loss in the Statement of Profit and loss.

xii) BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such assets are ready for its intended use. Other borrowing costs are charged to the Statement of Profit and Loss Account in the period in which they are incurred.

xiii) LEASES:

[a] As a Lessee:

Leases, where significant portion of risk and reward of ownership are retained by the Lessor, are classified as Operating Leases and lease rentals thereon are charged to the Statement of Profit and Loss on a straight-line basis over the lease term.

[b] As a Lessor:

If the Company has leased certain tangible assets, and such leases, where the Company has substantially retained all the risks and rewards of ownership, are classified as operating leases.

Lease income is recognised in the Statement of Profit and Loss on a straight-line basis over lease term.

The Company's significant leasing arrangements are in respect of operating leases for administrative office and factory premises.

xiv) TAXES ON INCOME:

Tax expense comprises of current and deferred tax.

Provision for current tax is made on the basis of estimated taxable income for the relevant accounting year in accordance with the Income Tax Act, 1961.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future.

In case of unabsorbed losses and unabsorbed depreciation, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profit. At each Balance Sheet date the Company reassesses the unrecognized deferred tax assets.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the ICAI, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement.

The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period.

The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, Provision for Income Tax made and excess/short tax provision for the year after filing Income Tax returns. The Company also makes a fair estimate of the Income Tax liability for the said year and gives effects to it in the Books of Accounts.

xv) CASH AND CASH EQUIVALENT :

Cash and Cash Equivalents for the purpose of cash flow statement comprise cash on hand and cash at bank including fixed deposit with original maturity period of three months or less and short term highly liquid investments with an original maturity of three months or less.

xvi) CASH FLOW STATEMENT:

Cash flows are reported using the Indirect Method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

xvii) RESEARCH & DEVELOPMENT:

Revenue expenditure on Research and Development is charged to the Statement of Profit and Loss in the year in which it is incurred. Capital Expenditure on Research and Development is shown as an addition to Fixed Assets or Work-in-Progress, as the case may be. However there are no such expenditure in the year under consideration.

xviii) EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company's earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

xix) PROVISION & CONTINGENCIES:

The company estimates the probability of any loss that might be incurred on outcome of contingencies on the basis of information available.

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are determined based on management's estimate required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the management's current estimates.

In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot be reasonable estimated, a disclosure is made in the financial statements.

In case of remote possibility neither provision nor disclosure is made in the financials.

A Contingent Asset is neither recognised nor disclosed in the Financial Statements.


Mar 31, 2014

(I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on an accrual basis and are in compliance with all material aspect the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular No. 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year

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 Revised 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 up to twelve months for the purpose of current and non-current classification of assets and liabilities.

(II) USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements,estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future peiods.

(III) TANGIBLE FIXED ASSETS AND DEPRECIATION:

TANGIBLE FIXED ASSETS:

Tangible fixed assets are stated at cost, less accumulated depreciation and impairment loss if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use, but does not includes amount of excise duty on which cenvat is availed. The Company has disposed all of its fixed assets during the year under consideration.

CAPITAL WORK IN PROGRESS:

Expenses incurred towards acquisition of fixed assets which have not been installed or not put to use before the year end are disclosed under capital work in progress and no depreciation has been provided on that. However there is no Capital Work in Progress during the year under consideration.

DEPRECIATION:

Depreciation on fixed assets is charged on written down value basis in the manner and as per the rates and method provided in schedule XIV of the Companies Act, 1956.

Fixed Assets, individually costing less than five thousands, are fully depreciated in the year of purchase.

Depreciation on Assets added / disposed off during the year have been provided on pro-rata basis with reference to the day of additions / deletions from the respective day of purchase/sale.

(IV) INTANGIBLE FIXED ASSETS AND AMORTISATION:

Intangible assets are recognized when it is probable that the future economic benefit attributable to the assets will flow to the Company and its cost can be reliably measured. Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a straight line basis over their estimated useful lives.

Expenditure incurred on acquisition/development of intangible assets which are not put/ready to use at the reporting date is disclosed under intangible assets under development. However there are no such intangible assets for the year under consideration.

(V) IMPAIRMENT OF ASSETS:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss if any is charged to Statement of Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

However there is no such impairment in the year under consideration.

(VI) INVENTORY:

Raw Material, Consumable Store & Spares and Packing Material are valued at lower of cost or net realizable value. However, these items are considered to be realizable at cost if the finished products in which they will be used, are expected to be sold at or above cost. However there is no work in progress for the year under consideration.

Finished Goods and Work in Progress are valued at lower of cost or net realizable value. Cost of Finished Goods and Work in Progress includes the cost of conversion and other costs incurred to bring the inventories to their present location and condition.

Stock in Trade is valued at lower of cost or net realizable value. However there is no stock in trade at the year end.

Cost of inventories is computed on FIFO basis.

Obsolete stock if any is valued at net realizable value.

(VII) INVESTMENTS:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

Investments are recorded at cost on the date of purchase, which includes acquisition charges such as brokerage, stamp duty, taxes, etc. Current Investments are stated at lower of cost and quoted/fair value. Provision for diminution in the value of Long Term Investments is made, only if, in the opinion of the management, such a decline is regarded as being other than temporary.

However there are no such investments of the company in the year under consideration.

(VIII) GOVERNMENT GRANTS

Government Grants are recognized when there is reasonable assurance that the same will be received and all attaching conditions will be complied with. Revenue grants are recognized in the Statement of Profit & Loss account. Capital grants relating to specific Tangible/Intangible assets are reduced from the gross value of the respective Tangible/Intangible assets. Other capital grants in nature of promoter''s contribution are credited to capital reserve.

However no government grants are received by the company in the year under consideration.

(IX) REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and can be reliably measured.

a) SALE OF GOODS:

Domestic Sale is recognized on dispatch to customers and is net of returns. "Sales" includes basic sales value and excise, but excludes other recoveries such as insurance, sales tax etc.Export Sales is recognised on shipment of goods.

b) OTHER OPERATING REVENUE

Other operating revenue includes labour charges on accrual basis, and scrap sales on actual sale. Export Incentives are accounted as and when they are received.

c) OTHER INCOME:

Interest is recognized on Time Proportion Basis with reference to principal outstanding and rate of Interest applicable. Rent income is received on renting their immovable properties and amenities on accrual basis.

(X) EMPLOYEE BENEFITS:

Retirement benefits to employees comprise of provident fund contributions, gratuity and leave encashment entitlements. Contribution to Provident Fund is made in accordance with the statute and provided on accrual basis. Gratuity are provided for, according to the rules of these benefit schemes, on the basis of actuarial valuation done at the year-end by independent actuaries using the Projected Unit Credit Method. Actuarial losses/gains are recognized in the Statement of Profit and Loss in the year in which they arise. Leave encashment are paid in the year in which they accrue.

(XI) FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of transaction. The exchange difference resulting from settled transactions is recognized in the statement of profit and loss if applicable.

Year end balances of monetary items are restated at the year end exchange rates and the resultant net gain or loss is recognized in the statement of profit and loss.

Premium or discounts on forward contracts where there are underlying assets/liabilities are amortized over the life of the contract. Such foreign exchange forward contracts are revalued at the Balance Sheet date and the exchange difference between the spot rate at the date of contract and spot rate on the Balance Sheet date is recognized as gain/loss in the Statement of Profit and loss.

(XII) BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such assets are ready for its intended use. Other borrowing costs are charged to the Statement of Profit and Loss Account in the period in which they are incurred.

(XIII) LEASES:

[a] As a Lessee:

Leases, where significant portion of risk and reward of ownership are retained by the Lessor, are classified as Operating Leases and lease rentals thereon are charged to the Statement of Profit and Loss on a straight-line basis over the lease term.

[b] As a Lessor:

If the Company has leased certain tangible assets, and such leases, where the Company has substantially retained all the risks and rewards of ownership, are classified as operating leases.

Lease income is recognised in the Statement of Profit and Loss on a straight-line basis over lease term.

The Company''s significant leasing arrangements are in respect of operating leases for administrative office and factory premises.

(XIV) TAXES ON INCOME:

Tax expense comprises of current and deferred tax.

Provision for current tax is made on the basis of estimated taxable income for the relevant accounting year in accordance with the Income Tax Act, 1961.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future.

In case of unabsorbed losses and unabsorbed depreciation, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profit. At each Balance Sheet date the Company reassesses the unrecognized deferred tax assets.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the ICAI, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement.

The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period.

The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, Provision for Income Tax made and excess/short tax provision for the year after filing Income Tax returns. The Company also makes a fair estimate of the Income Tax liability for the said year and gives effects to it in the Books of Accounts

(XV) CASH AND CASH EQUIVALENT :

Cash and Cash Equivalents for the purpose of cash flow statement comprise cash on hand and cash at bank including fixed deposit with original maturity period of three months or less and short term highly liquid investments with an original maturity of three months or less.

(XVI) CASH FLOW STATEMENT:

Cash flows are reported using the Indirect Method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,

investing and financing activities of the Company are segregated based on the available information.

(XVII) RESEARCH & DEVELOPMENT:

Revenue expenditure on Research and Development is charged to the Statement of Profit and Loss in the year in which it is incurred. Capital Expenditure on Research and Development is shown as an addition to Fixed Assets or Work-in-Progress, as the case may be. However there are no such expenditure in the year under consideration.

(XVIII) EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

(XIX) PROVISION & CONTINGENCIES:

The company estimates the probability of any loss that might be incurred on outcome of contingencies on the basis of information available.

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are determined based on management''s estimate required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the management''s current estimates.

In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot be reasonable estimated, a disclosure is made in the financial statements.

In case of remote possibility neither provision nor disclosure is made in the financials.

A Contingent Asset is neither recognised nor disclosed in the Financial Statements.


Mar 31, 2013

I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual concept and are in line with the Accounting Standards, relevant laws as well as the guide lines prescribed by the Institute of Chartered Accountants of India.

These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended and the other relevant provisions of the Companies Act, 1956.

ii) USE OF ESTIMATES :

The preparation and presentation of financial statements requires estimates and assumptions and/or revised estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosures of Contingent Liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period.

The estimates and assumptions used in the accompanying financial statements are based upon Management''s evaluation of the relevant facts and circumstances as on the date of financial statements. Differences between the actual results and estimates are recognized in the period in which the results are known / materialize.

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 and non-current classification of assets and liabilities.

iii) TANGIBLE FIXED ASSETS AND DEPRECIATION :

- TANGIBLE FIXED ASSETS

Fixed Assets have been stated at cost. Cost comprises of the purchase price and all other attributable cost of bringing the assets to its working condition for intended use. The Company has disposed all of its fixed assets of plastic division during the year under consideration.

- CAPITAL WORK IN PROGRESS

Expenses incurred towards acquisition of fixed assets which have not been installed or not put to use before the yearend are disclosed under capital work in progress and no depreciation has been provided on that. However there is no Capital Work in Progress during the year under consideration.

- DEPRECIATION

Depreciation on fixed assets is charged on written down value basis in the manner and as per the rates and method provided in schedule XIV of the Companies Act, 1956.

Fixed Assets, individually costing less than five thousands, are fully depreciated in the year of purchase

Depreciation on Assets added / disposed off during the year have been provided on pro-rata basis with reference to the day of additions / deletions from the respective day of purchase/sale.

iv) INTANGIBLE FIXED ASSETS AND AMORTISATION

Intangible assets are recognized where it is probable that the future economic benefit attributable to the assets will flow to the Company and its cost can be reliably measured.

Expenditure incurred on acquisition/development of intangible assets which are not put/ready to use at the reporting date is disclosed under intangible assets under development. However there are no such intangible assets under development.

v) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying value of the asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and loss in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. However there is no such impairment for the year under consideration.

vi) INVENTORY

The Inventory is valued as under and as certified by the Management o Raw Material and Consumables are valued at cost.

o Finished Goods are valued at average selling price of goods or net realizable value whichever is lower. o Obsolete stock if any is valued at net realizable value.

o Work in progress is valued at cost which includes the cost of conversion and other costs incurred to bring the inventories to their present location and condition. However there is no work in progress for the year under consideration.

vii) INVESTMENTS

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

The Current investments are valued at cost. Long Term investments are stated at cost. Provision for diminution in the value of Long Term Investments is made, only if, in the opinion of the management, such a decline is regarded as being other than temporary.

However there are no investments of the Company for the year under consideration.

viii) REVENUE RECOGNITION : o SALE OF GOODS

Domestic Sales is recognized on dispatch to customers and is net of returns. Export Sales is recognized on shipment/ air lift of goods. Sales turnover includes basic sales value and excise duty but excludes other recoveries such as insurance, sales tax etc.

o OTHER OPERATING REVENUE

Other operating revenue includes labour charges on accrual basis, and scrap sales on actual sale.

o OTHER INCOME

Interest is recognized on Time Proportion Basis with reference to principal outstanding and rate of Interest applicable. Other income also includes rent income received on time basis.

ix) EMPLOYEE BENEFITS :

Retirement benefits to employees comprise of provident fund contributions, gratuity and leave encashment entitlements. Contribution to Provident Fund is made in accordance with the statute and provided on accrual basis. Gratuity and leave encashment liabilities are provided for, according to the rules of these benefit schemes, on the basis of actuarial valuation done at the year-end by independent actuaries using the projected Unit Credit Method. Actuarial losses/gains are recognized in the Statement of Profit and Loss in the year in which they arise.

However, the directors have waived off their claim of Rs.4,32,692 in respect of gratuity as per the payment of Gratuity Act,1972, in the year under consideration and hence there is no provision for the same made in the Balance Sheet.

The Company has not paid their contribution to provident fund as required by the Employees Provident Fund Act,1952 as the eligible employees have waived off their claim by giving a declaration.

x) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at transaction date. The exchange difference resulting from settled transactions is recognized in the statement of profit and loss, if applicable.

Year end balances of monetary items are restated at the year end exchange rates and the resultant net gain or loss is recognized in the statement of profit and loss.

Premium or discount on forward contracts where there are underlying assets/liabilities are amortized over the life of the contract. Such foreign exchange forward contracts are revalued at the Balance Sheet date and the exchange difference between the spot rate at the date of contract and spot rate on the Balance Sheet date is recognized as gain/ loss in the Statement of Profit and loss.

xi) BORROWING COSTS

Interest and other related cost on acquiring qualifying assets are capitalized as per accounting standard AS- 16. All other borrowing costs are recognized as expense in the period in which they are incurred.

xii) LEASES :

(a) As a Lessee:

Leases, where significant portion of risk and reward of ownership are retained by the Less or, are classified as Operating Leases and lease rentals thereon are charged to the Statement of Profit and Loss on a straight-line basis over the lease term.

(b) As a Less or:

The Company has leased certain tangible assets, and such leases, where the Company has substantially retained all the risks and rewards of ownership, are classified as operating leases.

Lease income is recognized in the Statement of Profit and Loss on a straight-line basis over lease term.

The company''s significant leasing arrangements are in respect of operating leases for administrative office and factory premises. The aggregate lease rentals payable are charged as rent paid.

xiii) TAXES ON INCOME

Tax expense comprises of current and deferred tax.

Provision for current tax is made on the basis of estimated taxable income for the relevant accounting year in accordance with the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the ICAI, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period.

The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, Provision for Income Tax made and excess/short tax provision for the year after filing the Income Tax Return. The Company also makes a fair estimate of the Income Tax liability for the said year and gives effects to it in the Books of Accounts.

The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, Provision for Income Tax made and excess / short tax provision for the year after receiving orders from the Appellate authorities. The Company also makes a fair estimate of the Income Tax liability every year and gives effects to it in the Books of Account.

xiv) CASH AND CASH EQUIVALENT

Cash and Cash Equivalents for the purpose of cash flow statement comprise cash on hand and cash at bank including fixed deposit with original maturity period of less than three months and short term highly liquid investments with an original maturity of three months or less.

xv) CASH FLOW STATEMENT

Cash flows are reported using the Indirect Method, whereby profit/ (loss) before 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.

xvi) RESEARCH & DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Statement of Profit and Loss in the year in which it is incurred. Capital Expenditure on Research and Development is shown as an addition to Fixed Assets or Work-in-Progress, as the case may be. However there are no such expenditures during the year under consideration.

xvii) EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

xviii) PROVISIONS AND CONTINGENCIES

The company estimates the probability of any loss that might be incurred on outcome of contingencies on the basis of information available up to the date on which the financial statements are prepared.

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are determined based on management''s estimate required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the management''s current estimates.

In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot be reasonable estimated, a disclosure is made in the financial statements.

In case of remote possibility neither provision nor disclosure is made in the financials.


Mar 31, 2012

I) Basis of Preparation of financial statements:

The financial statements are prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual concept and are in line with the relevant laws as well as the guide lines prescribed by the Institute of Chartered Accountants of India. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended and the other relevant provisions of the Companies Act, 1956.

ii) Presentation and Disclosure of Financial Statements:

During the year ended March 31, 2012, the revised schedule VI notified under Companies Act, 1956 has become applicable to the company, for preparation and presentation of its financial statements. Adoption of Revised Schedule VI does not impact the recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. Maximum efforts have been made to reclassify previous year figures in accordance with Revised Schedule VI.

iii) Use of Estimates :

The preparation and presentation of financial statements requires estimates and assumptions and revised estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosures of Contingent Liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period. The estimates and assumptions used in the accompanying financial statements are based upon Management''s evaluation of the relevant facts and circumstances as on the date of financial statements. Differences between the actual results and estimates are recognised in the period in which the results are materialise.

3) Fixed Assets :

a) Tangible Fixed Assets

Fixed assets have been stated at cost. Cost comprises of the purchase price and all other attributable cost of bringing the assets to its working condition for its intended use.

b) Capital wo rk in Progres s:

Expenses incurred towards acquisition of fixed assets which have not been installed or put to use before the year end are disclosed under capital work in progress and no depreciation has been provided on that. In the year under consideration there is no WIP of Fixed Assets.

c) Intangible Fixed Assets:

i) Intangible assets are recognized where it is probable that the future economic benefit attributable to the assets will flow to the Company and its cost can be reliably measured.

ii) Expenditure incurred on acquisition/development of intangible assets which are not put/ready to use at the reporting date is disclosed under intangible assets under development.

4) Depreciation:

Depreciation on Fixed Assets is charged on written down value basis in the manner and as per the rates and method provided in Schedule XIV of the Companies Act, 1956. Depreciation on Assets added/disposed off during the year has been provided on pro-rata basis with reference to the date of addition/deletions.

5) Inventory :

The Inventory is valued as under and as certified by the Management

a) Raw Material and Consumables are valued at cost.

b) Finished Goods are valued at Average selling price.

c) Obsolete stock if any is valued at net realisable value.

6) Investments:

Investments are stated at cost.

7) Revenue Recognition :

Sale of Goods

Domestic Sales is recognized on dispatch to customers and is net of returns and rate difference if any. Export Sales is recognized on shipment of goods. Sales turnover includes basic sales value, but excludes excise duty other recoveries such as insurance, sales tax etc.

Other Income

Interest is recognized on Time Proportion Basis with reference to principal outstanding and rate of Interest applicable.

Dividend income is recognized when the shareholders right to receive payment has been established.

8) Employee Benefits:

The Company has not provided for the liability for gratuity of Rs. 3,89,423/- as required by the payment of Gratuity Act 1972, as the directors have waived off their claim. There is no provision made in the Balance Sheet for the same.

9) Foreign Currency Transactions:

a) Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transactions.

b) Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c) Any income or expense on account of exchange difference either on settlement or on translation in the year is recognised in the Profit & Loss Account in the year in which it arises.

10) Borrowing Cost:

Interest and other related cost on acquiring qualifying assets are capitalised as per Accounting Standard AS -16. All other borrowing costs are recognized as expense in the period in which they are incurred.

11) Impairment of Assets :

At each Balance Sheet date, an assessment is made of whether it is indication of impairment. An impairment laws is recognized whenever the carrying amount of assets exceeds their recoverable amount.

12) Taxes on Income

Provision of income tax comprising current tax and deferred tax is made on the basis of the results of the Year. As per the Accounting Standard 22 - issued by ICAI, the net deferred tax assets amounting to Rs. 14.56 lacs on account of timing differences as shown below after crediting Current Tax effect.

Deferred Tax Liability on account of depreciation Rs. 3,725,073

Deferred Tax Asset on account of loss and other disallowances Rs. 51,81,145

Net Deferred Tax Assets Rs. 14,56,072

13) The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, Provision for Income Tax made and excess / short tax provision for the year after receiving orders from the Appellate authorities. The Company also makes a fair estimate of the Income Tax liability every year and gives effects to it in the Books of Account.

14 ) Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the Matter Involved.


Mar 31, 2010

1) METHOD OF ACCOUNTING:

The accounts have been prepared under the historical cost convention and on going concern concept basis. Method of accounting employed by the company is generally mercantile both as to income and expenditure

2) a) Fixed Assets:

Fixed assets have been stated at cost. Cost comprises of the purchase price and all other attributable cost of bringing the assets to its working condition for its intended use.

b) Capital work in Progress:

Expenses incurred towards acquisition of fixed assets which have not been installed or put to use before the year end are disclosed under capital work in progress and no depreciation has been provided on that. In the year under consideration there is no WIP of Fixed Assets.

3) Depreciation:

Depreciation on Fixed Assets is charged on written down value basis in the manner and as per the rates & method provided in Schedule XIV of the Companies Act, 1956. Depreciation on Assets added/disposed off during the year has been provided on prorata basis with reference to the date of addition/deletions.

4) Inventory:

The Inventory is valued as under and as certified by the Management

a) Raw Material and Consumables are valued at cost.

b) Finished Goods are valued at cost or market value whichever is lower

c) Obsolete stock if any is valued at net realisable value.

d) In the year under consideration work in progresses valued at cost.

5) Investments:

Investments are stated at cost.

6) Employee Benefits:

The Company has not provided for the liability for gratuity of Rs. 3,02,885/-, as required by the Payment of Gratuity Act 1972, as the directors have waive off their claim.

7) Foreign Currency Transactions:

a) Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the recognised in the Profit & Loss Account in the year in which it arises.

b) Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c) Any income or expense on account of exchange difference either on settlement or on translation in the year is recognised in the Profit & Loss Account in the year in which it arises.

8) Borrowing Cost:

Interest and other related cost on acquiring qualifying assets are capitalised as per Accounting Standard AS - 16.

9) Taxes on Income

Provision of income tax comprising current tax and deferred tax is made on the basis of the results of the Year. As per the Accounting Standard 22 - issued by ICAI, the net deferred tax assets amounting to Rs.207.46 lacs on account of timing differences as shown below after crediting Current Tax effect of Rs.(23.74) Lacs to profit and loss account. Deferred Tax Liability on account of depreciation Rs. 63, 94,071 Deferred Tax Asset on account of loss and other disallowances Rs. 2,71,39,873 Net Deferred Tax Assets Rs 2,07,45,802

10) The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, Provision for Income Tax made and excess/short tax provision for the year after receiving orders from the Appellate authorities. The Company also makes a fair estimate of the Income Tax liability for the said year and gives effects to it in the Books of Account.

11) Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the Matter Involved.


Mar 31, 2004

1) METHOD OF ACCOUNTING:

The accounts have been prepared under the historical cost convention and on going concern concept basis. Method of accounting employed by the company is generally mercantile both as to income and expenditure except in the following cases for which method of accounting is on cash basis:

Expenditure & Income:

a) Commission

b) Quota Sales

2) a) Fixed Assets:

Fixed assets have been stated at cost. Cost comprises of the purchase Price and all other attributable cost of bringing the assets to its working condition for its intended use.

b) Capital work in Progress :

Expenses incurred towards acquisition of fixed assets which have not been installed or put to use before the year end are disclosed under capital work in progress and no depreciation has been provided on that.

3) Depreciation:

Depreciation on Fixed Assets is charged on written down value basis in the manner and as per the rates & method provided in Schedule XIV of the Companies Act, 1956. Depreciation on Assets added/disposed off during the year have been provided on prorata basis with reference to the date of addition/deletions.

4) Inventory:

a) Raw Material, and Consumables are valued at cost.

b) Finished Goods & wip are valued at cost or market value whichever is lower

c) Obsolete stock if any is valued at net realisable value.

5) Investments:

Investments are stated at cost. Long term investments are valued at cost subject to reduction made for permanent diminution in value.

6) Foreign Currency Transactions:

a) Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transactions.

b) Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c) Any income or expense on account of exchange difference either on settlement or on translation in the year is recognised in the Profit & Loss Account in the year in which it arises.

7) Borrowing Cost :

Interest and other related cost on acquiring qualifying assets are capitalised as per accounting Standard AS -16.

8) Taxes on Income

a) Provision of income tax comprising current tax and deferred tax is made on the basis of the results of the year in accordance with accounting standard-22-Accounting For The Taxes on income, issued by the ICAI. The deferred tax for timing difference between the book profit and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantively enacted as of the balance date.

b) The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, provision for Income Tax made and excess/short tax provision for the year after receiving orders from the CIT Appeals. The Company also makes a fair estimate of the Income Tax liability for the said year and gives effects to it in the Books of Account.

9) Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the Matter involved. B) NOTES:

1) The Balances of Sundry Debtors, Creditors State Bank of India (Overseas Branch) and Loans & Advances are accepted as appearing in the Ledger Accounts & subject to confirmation from individual Parties concerned, due adjustments, if any will be made thereon. Management is confident of receiving all the sums due from debtors and the advances.


Mar 31, 2003

1) METHOD OF ACCOUNTING:

The accounts have been prepared under the historical cost convention and on going concern concept basis. Method of accounting employed by the company is generally mercantile both as to income and expenditure except in the following cases for which method of accounting is on cash basis:

Expenditure & income:

1) Commission

2) Quota Sales

2) a) Fixed Assets :

Fixed assets have been stated at cost. Cost comprises of the purchase Price and all other attributable cost of bringing the assets to its working condition for its intended use.

b) Capital work in Progress:

Expenses incurred towards acquisition of fixed assets which have not been installed or put to use before the year end are disclosed under capital work in progress and no depreciation has been provided on that.

3) Depreciation:

Depreciation on Fixed Assets is charged on written down value basis in the manner and as per the rates & method provided in Schedule XIV of the Companies Act, 1956. Depreciation on Assets added/disposed off during the year have been provided on prorata basis with reference to the date of addition/deletions.

4) Inventory:

a) Raw Material, and Consumables are valued at cost.

b) Finished Goods & wip are valued at cost or market value whichever is lower

c) Obsolete stock if any is valued at net realisable value.

5) Investments:

Investments are stated at cost. Long term investments are valued at cost subject to reduction made for permanent diminution in value.

6) Retirement Benefits:

The company has provided for gratuity amounting to Rs 400000/- for the year under consideration

7) Foreign Currency Transactions:

a) Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transactions.

b) Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c) Any income or expense on account of exchange difference either on settlement or on translation in the year is recognised in the Profit & Loss Account in the year in which it arises.

8) Preliminary Expenses:

Preliminary expenses are amortised in equal installment over a period of 5 Years.

9) Borrowing Cost :

Interest and other related cost on acquiring qualifying assets are capitalised as per accounting Standard AS -16.

10) Taxes on Income

a) Provision of income tax comprising current tax and deferred tax is made on the basis of the results of the year in accordance with accounting standard-22-Accounting For The Taxes on income, issued by the ICAI. The deferred tax for timing difference between the book profit and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantively enacted as of the balance date.

b) The Company has the policy of reviewing and passing proper adjustment entries for Income Tax paid, provision for Income Tax made and excess/short tax provision for the year after receiving orders from the CIT Appeals. The Company also makes a fair estimate of the Income Tax liability for the said year and gives effects to it in the Books of Account.

11) Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the Matter involved.

 
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