Mar 31, 2014
A. Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, 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 periods.
b. Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing cost if capitalization criteria are met and directly
attributable cost of bringing the assets to its working condition for
the intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day to day
repaired maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
Gains or losses arising from de-recognition of fixed assets are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit & loss when the asset is de recognized.
c. Depreciation on Tangible Fixed Asset
Depreciation on fixed asset is calculated on Written down Value method
using the rates prescribed under the Schedule XIV to The Companies Act,
1956.
d. Earnings per share
Basic earnings per share are computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period.
e. Provisions and Contingent liabilities
A provision is recognized when the Company has a present obligation as
a result of past event. It is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimate.
Where no reliable estimate can be made, a disclosure is made as a
contingent liability. A disclosure for a contingent liability is also
made when there is a possible obligation that may, but probably will
not, require an outflow of resources. Where there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
f. Cash & Cash equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks
and corporations. The company 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.
Jun 30, 2011
1)SIGNIFICANT ACCOUNTING POLICIES
The accounts are prepared on an accrual basis and under the historical
cost conventions, and are in line with the relevant laws as well as the
guidelines prescribed by the Department of Company affairs and the
Institute of Chartered Accountants of India.
2) FIXED ASSETS:
Tangible Fixed assets are stated at original cost of acquisition
including taxes, duties, freight and the incidental expenses related to
acquisition of the concerned asset. Fixed assets are stated at cost of
acquisition / Construction or cost.
3) DEPRECIATION:
Depreciation on fixed assets has been provided by using written down
method at the rates specified in schedule - XIV to the Companies Act,
1956.
4) CONTINGENT LIABILITIES:
Contingent Liabilities are disclosed after careful evaluation of facts
& legal aspects of the matter involved.
5) TAXES ON INCOMES :
Current tax is measured at the amount expected to be paid to the
taxation authorities, using the applicable tax rates and tax laws. As
the company has suffered loss during the year under review, no
provision has been made in respect of current tax. Deferred tax assets
and liabilities are measured using the tax rates and tax laws that have
been announced up to the Balance Sheet date. Deferred tax assets and
liabilities are recognised for the future tax consequences attributable
to timing differences between the taxable income and accounting income.
The effect of tax rate change is considered in the Profit & Loss
Account of the respective year of change. During the year under review,
the company has not carried out any business activity & no deferred tax
/asset/liability was recognized on account of timing
difference, hence, no provision was made in respect thereof.
6) EARNING PER SHARE:
The company reports basic and diluted earnings per share in accordance
accounting standard (AS) 20à Earning per shareà issued by the institute
chartered accountants of India. Basic Earning per share and Diluted per
share is computed by dividing the net profit or loss for the year by
weighted average number of Equity shares outstanding during years as
adjust for the effect of all dilutive potential equity share except,
where results are until-dilutive.
Jun 30, 2010
The accounts are prepared on an accrual basis and under the historical
cost conventions, and are in line with the relevant laws as well as the
guidelines prescribed by the Department of Company affairs and the
Institute of Chartered Accountants of India.
2) FIXED ASSETS:
Tangible Fixed assets are stated at original cost of acquisition
including taxes, duties, freight and the incidental expenses related to
acquisition of the concerned asset. Fixed assets are stated at cost of
acquisition / Construction or cost. Depreciation is provided during the
year on fixed assets as decided by the management.
3) DEPRECIATION:
Depreciation on fixed assets has been provided by using written down
method at the rates specified in schedule - XIV to the Companies Act,
1956.
4) CONTINGENT LIABILITIES:
Contingent Liabilities are disclosed after careful evaluation of facts
& legal aspects of the matter involved.
5) TAXES ON INCOMES :
Current tax is measured at the amount expected to be paid to the
taxation authorities, using the applicable tax rates and tax laws. As
the company has suffered loss during the year under review, no
provision has been made in respect of current tax.
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been announced up to the Balance Sheet date.
Deferred tax assets and liabilities are recognised for the future tax
consequences attributable to timing differences between the taxable
income and accounting income. The effect of tax rate change is
considered in the Profit & Loss Account of the respective year of
change.As the Company has made losses during the year under review no
provision for deferred loss has been made by the management.
7) EARNING PER SHARE:
The company reports basic and diluted earnings per share in accordance
accounting standard (AS) 20"Earning per share" issued by the institute
chartered accountants Of India. Basic Earning per share and Diluted ear
per share is computed by dividing the net profit or loss for the year
by weighted average number of Equity shares outstanding during years as
adjust for the effect of all dilutive potential equity share except,
where results are until-dilutive.
Jun 30, 2009
1) SIGNIFICANT ACCOUNTING POLICIES
The accounts are prepared on an accrual basis and under the historical
cost conventions, and are in line with the relevant laws as well as the
guidelines prescribed by the Department of Company affairs and the
Institute of Chartered Accountants of India.
2) FIXED ASSETS:
Tangible Fixed assets are stated at original cost of acquisition
including taxes, duties, freight and the incidental expenses related to
acquisition of the concerned asset. Fixed assets are stated at cost of
acquisition / Construction or cost. Depreciation is provided during the
year on fixed assets as decided by the management.
3) DEPRECIATION;
Depreciation on Fixed assets has been provided by using written down
method at the rates specified in schedule - XIV to the Companies Act,
1956.
4) CONTINGENT LIABILITIES:
Contingent Liabilities are disclosed after careful evaluation of facts
& legal aspects of the matter involved,
5) TAXES ON INCOMES :
Current tax is measured at the amount expected to be paid to the
taxation authorities, using the applicable tax rates and tax laws. As
the company has suffered loss during the year under review* no
provision has been made in respect of current tax.
Deferred tax assets and liabilities are measured using the tax rates
and lax laws that have been announced up to the Balance Sheet date.
Deferred tax assets and liabilities are recognised for the future tax
consequences attributable to timing differences between the taxable
income and accounting income, The effect of tax rate change is
considered in the Profit & Loss Account of the respective year of
change As the Company has made losses during the year under review no
provision for deferred loss has been made by the management
6) EARNING PER SHARE:
The company reports basic and diluted earnings per share in accordance
accounting standard (AS) 20" Earning per share" issued by the institute
chartered accountants of India. Basic Earnings per share and Diluted
year per share is computed by dividing the net profit or loss for the
year by weighted average number of Equity shares outstanding during
years as adjust for the effect of ail dilutive potential equity share
except, where results are until-dilutive.
Jun 30, 2008
1) BASIS OF ACCOUNTING
The Accounting of tire Company have been prepared; under the historical
cost. convention using the accrual method of accounting with the
applicable accounting standards and other generally accepted accounting
principles in conformity with the statutory .requirements
2) FIXED ASSETS :
Tangible; Fixed assets are- stated at original cost of acquisition
including taxes, duties freight and: the incidental expenses' related
to acquisition of the concerned, asset.. Fixed assets are Stated' at
cost of acquisition Construction or cost.
3) DEPRECIATION :
Depreciation on fixed assets has been provided written down method at
the- rates specified in: Schedule- XIV to the. Companies Act, 1956.
4) INVESTMENTS :
Long Term:- Long Term Investments shown in the balance sheet, are
valued at cost unless there is a permanent diminution, in the value,
an. which case are valued at the diminished value, and the result
difference is reseating in the profit and loss account.
Disposal Investment, On disposal of. Investment, the difference
between the: carrying amount, and net disposal proceeds is being
charged to Profit and Loss account-determined on the- basis of Average
Method.
5) REVENUE RECOGNITION: ;
Revenue is recognized only when, measurability and certain. In ease of
uncertainties, revenue recordation is: postponed to the year in
which, it is properly measured and reliability assured.
The company recognize: sale at the point of dispatch of1 goods to
customers, Sales are net price trade discounts and exclusive of excise
and sales tax.
In respect of services the company accounts for revenue on the
basis of, completed contract method.
6) INVENTORIES:
inventories are valued at the lower of cost, or net. realizable value
after providing' for cost of obsolescence If any Costs arrived at as
mention below
Raw and Packing. Material, at direct cost' of purchases, including
duties taxes (other-than those subsequently refreshable by the
enterprise from the, taxing Authorities)/ freight .inwards and other
expenditure- direct attributable: to the acquisition, Trade discounts,
rebates,. duty drawbacks - and other similar items are deducted in
determining the costs of purchase.
Work-in-progress also includes a fair proportion of .manufacturing
overheads applicable to the percentage of completion.
In case of finished goods, other than the costs mentioned above, also
includes excise duty attributable to the. finished goods.
7) Contingent LIABILITIES:.
Contingent liabilities are. disclosed: after; careful, evaluation of
facts and legal aspects of the matter' involved.
8) RETIREMENT .BENEFITS:
Gratuity-:
Liability in respect of' Gratuity-is-provided, in the books of accounts
on the basis of actuarial valuation..
Leave Encashment:
Leave Encashment expenses axe being accounted for as and when the
employee encase.
Provident Fund
Contribution to Provident Fund maintained under approved 'scheme, is
made on monthly basis and .charged to, revenue.
9) BORROWING: COSTS :
Borrowing costs that are, directly Attributable to the acquisition,
construction or production of. Qualifying, asset aired capitalized as
part of a the cost of that assets,
The amount of borrowing costs eligible for capitalization on the assets
is determined as the actual borrowing costs incurred on funds that are
specifically borrowed less any income on the temporary investment
of those borrowings, and by applying a weighted average capitalization
rate- of the borrowing costs applicable to the enterprise that are
outstanding during the period other than those that are made
specifically for the purpose o: obtaining a qualifying asset. Such
capitalization continues till substantially all the activities
necessary to prepare the qualifying asset for its intended use or sales
are complete. Other borrowing costs are recognized as and expenses in
the period in-which they are incurred. None o the borrowing costs have
been capitalize during the period.
l0) TAXES ON INCOME :
The company provides for taxes on income on Tax Effect Accounting Method
which takes into account the effect of all timing difference between the
financial statements and income Tax, assessments.
11) EARINGS PER SHAKE;
The company reports basic and diluted earnings per share in accordance
with Accounting Standard (AS) 20"Earnings per share" issued by the
Institute Chartered Accountants' of India. Basic Earning per share and
Diluted earlier per share is computed by dividing the net profit or loss
for the year by weighted average number of Equity shares outstanding
during years as adjust for the effect of all dilutive, potential equity
share, except, where results are unit-dilutive.