Mar 31, 2015
A Basis for preparation of Financial Statements
The financial statements have been prepared and presented under the
historical cost convention on an accrual basis of accounting, are in
accordance with the applicable requirements of the Comapnies Act, 2013
(the ''Act'') and comply in all material aspects with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of
the Companies(Accounts) Rules, 2014(as amended).
b Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent liabilities as at the date of
financial statements and the reported amounts of revenues and expenses
during the reporting year. Key estimates include estimate of useful
life of fixed assets, provision for expenses, future obligations under
retirement benefit plans, provision for doubtful debts and income
taxes. Actual results could differ from those estimates. Any revision
to accounting estimates are recognised prospectively in the current and
future periods.
c Fixed Assets and depreciation/ amortisation:
Fixed assets are stated at cost less accumulated depreciation,
amortisation and impairment. Cost includes purchase price, inward
freight, taxes and expenses incidental to acquisition and installation,
up to the point the asset is ready for its intended use.
Expenses related to commercial premises specifically relating to the
project / sample flat are amortised over the project completion period
which is estimated to be five years.
Depreciation on other fixed assets is provided, pro rata for the period
of use, under the Written Down Value (WDV) as per the useful life of
the assets prescribed under Schedule II to the Companies Act, 2013.
As per the notification dated 29 August 2014 issued by the Ministry of
Corporate Affairs, the Company has charged the carrying value of Nil
life assets to the statement of profit and loss.
d Impairment of Assets
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an asset''s net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arm''s length transaction between knowledgeable, willing
parties, less the costs of disposal.
e Investments
Current Investments are carried at lower of cost and fair value. Long
term investments are carried at cost. However, when there is a decline,
other than temporary, the carrying amount is reduced to recognise the
decline.
f Borrowing costs:
Interests and other borrowing costs (including front end processing
fees) attributable to qualifying assets are allocated as part of the
cost of construction / development of such assets. The borrowing costs
incurred during the period in which activities, necessary to prepare
the assets for their intended use or sale, are in progress, are
allocated as aforesaid. Other borrowing costs are charged to the
statement of profit and loss.
g Provisions and contingent liabilities:
Provisions are recognised when the Company has a present obligation as
a result of past events 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 not discounted to its
present value and are determined based on management estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current
management estimates. Contingent liabilities are disclosed in respect
of possible obligations that arise from past events, whose existence
would be confirmed upon the occurrence or non occurrence of one or more
uncetain furture events not wholly within the control of the Company.
h Inventories :
Inventories are valued at lower of cost and net realisable value. Cost
is determined on the following basis:
(i) Stores and Spare parts First in First out
(ii) Raw Materials First in First out
(iii) Trading Good First in First out
(iv) Finished Goods and Material Cost plus appropriate share
Process Stock of overheads
i Retirement benefits:
i) All short term employee benefits are accounted on undiscounted basis
during the accounting period based on services rendered by employees
ii) The Company''s liability towards compensated absences is accounted
for at the year end on the basis of valuation done as per company''s
policy and the resultant gains/losses are charged to the Profit and
Loss Account.
iii) The Company''s liability towards gratuity benefits is accounted for
at the year end on the basis of valuation done as per Payment of
Gratuity Act, 1972.
j Cenvat Credit
CENVAT Credit is accounted on accrual basis on purchase of materials.
k Foreign Currency Transactions
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Monetary assets and
liabilities are translated at the year-end rate. The difference between
the rate prevailing on the date of the transaction and on the date of
settlement, as also on the translation of monetary assets and
liabilities at the end of the year is recognized as income or expense
as the case may be for the year.
l Revenue Recognition
Revenue is recognised to the extent that is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured.
Benefits on account of entitlement of export incentives are recognised
as and when the right to receive is established.
m Taxes on income
Current taxation
Provision for current tax is recognized based on the estimated tax
liability computed after taking credit for allowances and exemptions in
accordance with the Income Tax Act, 1961.
Deferred taxation
Deferred tax assets and liabilities are recognised for the future tax
consequences attributable to timing differences between the financial
statements carrying amounts of existing assets and liabilities and
their respective tax basis. Deferred tax assets and liabilities are
measured using the enacted tax rates or tax rates that are
substantively enacted at the Balance Sheet dates. The effect on
deferred tax assets and liabilities of a change in tax rates is
recognised in the period that includes the enactment date. Where there
is unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty supported by
convincing evidence of realisation of such assets. Other deferred tax
assets are recognised only to the extent there is reasonable certainty
of realisation in the future. Such assets are reviewed at each Balance
Sheet date to reassess realisation.
Mar 31, 2014
A BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, the Accounting Standards
notified in the Companies (Accounting Standards) Rules, 2006 and the
relevant provisions of the Companies Act, 199, read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of Companies Act, 2013.
b USE OF ESTIMATES
The preparation of the financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates recognised in the
period in which the results are known / materialize.
c FIXED ASSETS
Fixed Assets are stated at cost of acquisition / construction or book
value and includes amounts added on revaluation accumulated
depreciation and impairment loss, if any.
d INVESTMENTS
Current Investments are carried at lower of cost and fair value. Long
term investments are carried at cost. However, when there is decline,
other than temporary, the carrying amount is reduced to recognise the
decline.
e DEPRECIATION
Depreciation on fixed assets is provided on straight line /written down
value basis in accordance with the Companies Act, 1956.
1 Depreciation is provided at the rates and in the manner specified in
Schedule XIV to the Companies Act, 1956
2 Depreciation for the year is provided on the revalued cost of Assets
and is charged to the Profit and Loss Account.
3 The company has completely discontinued its manufacturing operations
in line with the management's decision as communicated
4 The difference of Rs.8,12,626/- (Previous Year Rs.8,12,676/-) between
depreciation provided for the year on revalued cos! of assets and that
calculated on original cost of assets for the year has been withdrawn
from Revaluation reserve and credited to the Profit and Loss Account.
f INVENTORIES
* Inventories are valued at lower of cost and net realisable value.
Cost is determined on the following basis:
(i) Stores and Spare parts First in First out.
(ii) Raw Materials First in First out.
(iii) Trading Goods First in First out.
(iv) Finished Goods and Material Cost plus appropriate share
Process Stock of overheads.
g RETIREMENT BENEFITS
1) GRATUITY
The Trustees of Indian Extractions Limited Employees' Gratuity Fund has
a fund arrangement (cash accumulation policy) with Life Insurance
Corporation of India (LIC) to administer its gratuity benefit scheme.
The contributions towards the said funds which are as determined by LIC
are charged to revenue each year. Company ascertains the Liability
towards Gratuity at the year-end and provision for the differential
amount between the liability determined on Actuarial Valuation and Fund
balance is provided in the books of account.
2) COMPENSATED ABSENCES
Provision is made for Compensetal absesnces based on leave balance as
at the end of the year.
3) PROVIDENT FUND
Liability is determined on the basis of contribution as required under
the statute/rules.
h CENVAT CREDIT
CENVAT Credit is accounted on accrual basis on purchase of materials.
i FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the date of transaction. Monetary items are translated at
the year-end rates. The exchange difference between the rate prevailing
on the date of transaction and on the date of settlement as also on
translation of monetary items at the end of the year is recognised as
income or expense, as the case may be.
Any premium or discount arising at the inception of the forward
exchange contract is recognized as income or expense over the life of
the contract.
j REVENUE RECOGNITION
Revenue (Income) is recognised when no significant uncertainty as to
determination or realisation exists.
k PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provision involving substantial degree of estimation in measurement is
recognised when there is present obligation as a result of past events
and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in notes,
if any. Contingent Assets are neither recognised nor disclosed in the
financial statement.
l BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
m GOVERNMENT GRANTS
Grants related to specific fixed assets are disclosed as a deduction
from the value of the concerned assets. Grants related to revenue are
credited to the Profit and Loss account. Grants in the nature of
promoter's contribution are treated as Capital Reserve.
n TAXES ON INCOME
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to/ recovered from the tax
authorities, using the applicable tax rates. Deferred income tax
reflect the current period timing differences between taxable income
and accounting income for the period and reversal of timing differences
of earlier years/ period. Deferred tax assets are recognised only to
the extent that there is reasonable certainty that sufficient future
income will be available except that deferred tax assets, in case there
are unabsorbed depreciation and losses, are recognised if there is
virtual certainty that sufficient future taxable income will be
available to realise the same.
o DOUBTFUL DEBTS/ADVANCES
Provision is made in the accounts in respect of debts/advances which in
the opinion of the management are considered doubtful of recovery.
p IMPAIRMENT LOSS
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an asset's net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arm's length transaction between knowledgeable, willing
parties, less the costs of disposal.
Mar 31, 2012
A BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, the Accounting Standards
notified in the Companies (Accounting Standards) Rules, 2O01 and the
relevant provisions of the Companies Act, 1956.
b USE OF ESTIMATES
The preparation of the financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognised in the
period in which the results are known / materialize.
c FIXED ASSETS
Fixed Assets are stated at cost of acquisition / construction or book
value and includes amounts added on revaluation less accumulated
depreciation and impairment loss, if any.
d INVESTMENTS
Current Investments are carried at lower of cost and fair value. Long
term investments are carried at cost. However, when there is a decline,
other than temporary, the carrying amount is reduced to recognise the
decline.
e DEPRECIATION
Depreciation on fixed assets is provided on written down value basis in
accordance with the Companies Act, 1956.
1 Depreciation is provided at the rates and in the manner specified in
Schedule XIV to the Companies Act, 1956
2 Depreciation for the year is provided on the revalued cost of Assets
and is charged to the Profit and Loss Account.
3 During the year, the company has discontinued its manufacturing
operations in line with the management's decision as communicated. In
the view of the said fact no depreciation has been provided from July
2011 onwards on the manufacturing assets of the company.
4 The difference of Rs.9,85,393/- (Previous Year Rs.1,578,707/-)
between depreciation provided for the year on revalued cost of assets
and that calculated on original cost of assets for the year has been
withdrawn from Revaluation reserve and credited to the Profit and Loss
Account. Adjustment in revaluation reserve due to sale of free hold
land is Rs. 66,766,968/* (previous year Rs. 24,472,1)00/-).
f INVENTORIES
Inventories are valued at lower of cost and net realisable value. Cost
is determined on the following basis:
(i) Stores and Spare parts First in First out.
(ii) Raw Materials First in First out.
(iii) Trading Goods First in First out.
(iv) Finished Goods and Material Cost plus appropriate
Process Stock share of overheads.
g RETIREMENT BENEFITS
1) GRATUITY .
The Trustees of Indian Extractions Limited Employees' Gratuity Fund has
a fund arrangement (cash accumulation policy) with Life Insurance
Corporation of India (LIC) to administer its gratuity benefit scheme.
The contributions towards the said funds which are as determined by LIC
are charged to revenue each year. Company ascertains the Liability
towards Gratuity at the year-end and provision for the differential
amount between the liability' determined on Actuarial Valuation and
Fund balance is provided in the books of account
2) COMPENSATED ABSENCES
Provision is made for Compensetal absences based on leave balance as
at the end of the year.
3) PROVIDENT FUND
Liability is determined on the basis of contribution as required under
the statute/rules.
h CENVAT CREDIT
CENVAT Credit is accounted on accrual basis on purchase of materials.
i FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the date of transaction. Monetary items are translated at
the year-end rates. The exchange difference between the rate prevailing
on the date of transaction and on the date of settlement as also on
translation of monetary items at the end of the year is recognised as
income or expense, as the case may be.
Any premium or discount arising at the inception of the forward
exchange contract is recognized as income or expense over the life of
the contract.
j REVENUE RECOGNITION
Revenue (Income) is recognised when no significant uncertainty as to
determination or realisation exists.
k PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provision involving substantial degree of estimation in measurement is
recognised when there is present obligation as a result of past events
and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in notes,
if any. Contingent Assets are neither recognised nor disclosed in the
financial statement.
l BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
m GOVERNMENT GRANTS
Grants related to specific fixed assets are disclosed as a deduction
from the value of the concerned assets. Grants related to revenue are
credited to the Profit and Loss account. Grants in the nature of
promoter's contribution are treated as Capital Reserve.
n TAXES ON INCOME
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to/ recovered from the tax
authorities, using the applicable tax rates. Deferred income tax
reflect the current period timing differences between taxable income
and accounting income for the period and reversal of timing differences
of earlier years/ period. Deferred tax assets are recognised only to
the extent that there is reasonable certainty that sufficient future
income will be available except that deferred tax assets, in case there
are unabsorbed depreciation and losses, are recognised if there is
virtual certainty that sufficient future taxable income will be
available to realise the same.
o DOUBTFUL DEBTS/ADVANCES
Provision is made in the accounts in respect of debts/advances which in
the opinion of the management are considered doubtful of recovery.
p IMPAIRMENT LOSS
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an asset's net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arm's length transaction between knowledgeable, willing
parties, less the costs of disposal.
Mar 31, 2010
1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The accounts have been prepared to comply in all material aspects with
applicable accounting principles ift India, the Accounting Standards
notified in the Companies (Accounting Standards) Rules, 2006 and the
relevant provisions of the Companies Act. 1956
2 USE OF ESTIMATES
The preparation of the financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the repprted
amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognised in the
period in which the results are known / materialize.
3 FIXED ASSETS
Fixed Assets are stated at cost of acquisition / construction or book
value and includes amounts added on revaluation less accumulated
depreciation and impairment loss, if any.
4 INVESTMENTS
Current Investments are carried at lower of cost and fair value. Long
term investments are carried at cost I fowever, when (here is
stdecline, other than temporary, the carrying amount is reduced to
recognise the decline.
5 DEPRECIATION
Depreciation on fixed assets is provided on straight line /written down
value basis in accordance with the Companies Act. 1956 (Refer Note No B
3 )
6 INVENTORIES
Inventories are valued at lower of cost and net realisable value Cost
is determined on the following basis:
(i) Stores and Spare parts First in First out.
(ii) Raw Materials First in First out
(iii) Trading Goods First in First out
(lv) Finished Goods and Material Cost plus appropriate share
Process Stock of overheads.
7 RETIREMENT BENEFITS
A) GRATUITY
The Trustees of Indian Extractions Limited Employees Gratuity Fund has
stfund arrangement (cash accumulation policy) with Life Insurance
Corporation of Indist(LIC) to administer its gratuity benefit scheme.
The contributions towards the said funds which are as determined by LIC
are charged to revenue each year. Company ascertains the Liability
towards Gratuity at the year-end and provision for the differential
amount between the liability determined on Actuarial valuation and Fund
balance is provided in the books of account
B) COMPENSATED ABSENCES
Provision is made for Compensetal absesnces based on leave balance as
at the end of the year.
C) PROVIDENT FUND
Liability is determined on the basis of contribution as required under
the statute/rules. .
8 CENVAT CREDIT
CENVAT Credit is accounted on accrual basis on purchase of materials
9 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the date of transaction. Monetary items are translated at
the year-end rates. The exchange difference between the rate prevailing
on the date of transaction and on the date of settlement as also on
translation of monetary items at the end of the year is recognised as
income or expense, as the case may be.
Any premium or discount arising at the inception of the forward
exchange contract is recognized as income or expense over the life of
the contract.
10 REVENUE RECOGNITION
Revenue (Income) is recognised when no significant uncertainty as to
determination or realisation exists
11 CONTINGENT LIABILITIES
These, if any, are disclosed in the notes on accounts. Provision is
made in the accounts if it becomes probable that an outflow of
resources embodying economic benefit will be required to settle the
obligation.
12 BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of the cost
of such assets. stqualifying asset is one that necessarily takes
stsubstantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
13 GOVERNMENT GRANTS
Grants related to specific, fixed assets are disclosed as stdeduction
from the value of the concerned assets. Grants related to . revenue
are credited to the Profit and Loss account. Grants in the nature of
promoters contribution are treated as Capital Reserve.
14 TAXES ON INCOME ,
Tax expense comprises of current tax, deferred tax and fringe benefits
tax. Current tax is measured at the amount expected to be paid to/
recovered from the tax authorities, using the applicable tax rates.
Deferred income tax reflect the current period timing differences
between taxable income and accounting income for the period and
reversal of timing differences of earlier years/ period Deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future
income will be available except that deferred tax assets, in case there
are unabsorbed depreciation and losses, are recognised if there is
virtual certainty that sufficient future taxable income will be
available to realise the same. Fringe benefits tax is recognized in
accordance with the relevant provisions of the Income-tax Act, 1961 and
the Guidance Note on fr.f.ge Benefits Tax issued by the Institute of
Chartered Accountants of India.
15 DOUBTFUL DEBTS/ADVANCES
Provision is made in the accounts in respect of debts/advances which in
the opinion of the management are considered doubtful of recovery.
16 IMPAIRMENT LOSS
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts Recoverable amount is the higher of
an assets net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life Net selling price is the amount obtainable from sale of the
asset in an arms length trnasaction between knowledgable. willing
parties, less the costs of disposal
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