Mar 31, 2015
A. Basis of preparation of financial statements
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India. (Indian GAAP) to
comply with all material respects with the accounting standards
notified under section 133 of the Companies act 2013 read with rule 7
of the companies (Accounts) Rules, 2014. The accounting policies
adopted in preparation of the financial statements are consistent with
those followed in previous year unless otherwise stated below.
b. Use of estimates
The preparation of 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 and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
c. Revenue recognition
Revenue is recognized only when there is no significant uncertainty as
to the measyrability / collectability of the amounts. Export Revenue in
foreign currency is accounted for at the exchange rate prevailing at
the time of sale or service. Gain/Loss arising out of variances in the
exchange rates is recognized as income / expenditure of the year.
d. Fixed assets and capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to put to use.
e. Depreciation
The Company provides depreciation for tangible assets on straight line
method over the useful lives of assets specified in Schedule II of
Companies act, 2013. Depreciation for assets purchased and sold during
are period proportionately charged. Intangible assets are amortized
over their respective individual estimated useful lives on a straight
line basis, commencing form the date the asset is available to the
company for its use. .
f. Impairment
i. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on internal/extfemal
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
ii. After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
g. Inventories
Inventories are valued as under:
Components and consumables are valued at lower, of cost.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
h. Retirement and other employee benefits
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
i. Income taxes
Provision for current tax is made in accordance with the provisions of
the Income Tax Act, 1961. Deferred tax expense or benefit is recognized
on timing differences being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets and
liabilities are measured using the tax rates and tax laws that have
been enacted or substantively enacted by balance sheet date.
j. Foreign currency transaction
i. Initial recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
ii. Conversion
Foreign currency monetary items denominated in foreign currencies at
the year end are restated at year end rates. In case of monetary items
which are covered by foreign exchange contracts, the difference between
the original entry dates to forward contract date is recognized as an
exchange difference.
iii. Exchange differences
Exchange differences arising on the settlement of monetary items, or on
reporting such, monetary items of company at rates different from those
at which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
iv. Foreign currency Transactions.
Particulars Current Year Previous Year
Earningsin Foreignexchange NIL NIL
Expenditures Foreignexchange NIL NIL
Mar 31, 2014
A Basis of preparation of financial statements:
The Company follows the Mercantile system of Accounting and recognizes
Income and Expenditure on accrual basis. The Provisional accounts are
prepared on historical cost basis and as a going concern. Accounting
policies not referred to otherwise are consistent with Generally
Accepted Accounting Principles.
b Presentation and disclosure of financial statements:
Previous Year figure have been regrouped and or reclassified wherever
necessary. c Use of Estimates
The preparation of 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 and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
2 Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses if any.
3 Depreciation
Depreciation on fixed assets provided on Straight Line method as per
rates specified in Schedule XIV of the Companies Act, 1956.
4 Invsetments
The investments are long term which are unquoted shares and are valued
at cost to the Company.
5 Revenue Recognition Contract Revenue:
Contract Revenue (net of taxes and duties) is recognized at the
reporting date of the financial statements under percentage of
completion method. However, during the year there are no Contract
Revenue.
6 Taxes on Income
As per AS 22 (Accouting for Taxes on income issued by ICAI, the
Deferred Tax Asset on adjustment for the current year''s operation as at
31.03.2014 is Rs.4,081 /-and the Net DTA (Assets) reflected in Balance
Sheet is Rs.2,62,666/-.
7 Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized when the Company has a legal and constructive
obligation as a result of a past event, for which it is probable that a
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent Liabilities are disclosed when
the Company has possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation.
Mar 31, 2013
A Basis of preparation of financial statements:
The Company follows the Mercantile system of Accounting and recognises
Income and Expenditure on accrual basis. The Provisional accounts are
prepared on historical cost basis and as a going concern. Accounting
policies not referred to otherwise are consistent with Generally
Accepted Accounting Principles.
b Presentation and disclosure of financial statements:
During the year ended 31 March, 2013, the revised Schedule VI was
applicable to the Company, for preparation and presentation of its
financial statements. The adoption of revised Schedule VI does not
impact recognition and measurement principles followed for preparation
of financial statements. Previous Year figure have been regrouped and
or reclassified wherever necessary.
c Use of Estimates
The preparation of 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 and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon managements` best
knowledge of current events and actions, actual results could differ
from these estimates.
Mar 31, 2012
A) Accounting convention:
Accounts are maintained on Historic cost on accrual basis as a going
concern and are in accordance with The Companies Act, 1956.
b) Fixed Assets.
Fixed assets are valued at cost less depreciation. Depreciation is
computed at the rates specified in schedule XVI of the Companies Act,
1956 under written down value method and on additions on pro-rata as
provided in that schedule.
c) Investments:
The investments are long term which are unquoted shares and are valued
at cost to the Company.
d) Extra - ordinary items wherever material are disclosed separately.
Mar 31, 2010
A) Accounting convention:
Accounts are maintained on Historic cost on accrual basis as a going
concern and are in accordance with The Companies Act, 1956.
b) Fixed Assets.
Fixed assets are valued at cost less depreciation. Depreciation is
computed at the rates specified in schedule XIV of the Companies Act,
1956 under written down value method and on additions on pro- rata as
provided in that schedule.
c) Inventories:
Inventories are valued at cost of acquisition to the Company plus
developmental expenses incurred thereon
d) Investments:
The investments are long term which are unquoted shares and are valued
at cost to the Company.
e) Extra-ordinary items wherever material are disclosed separately.
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