Mar 31, 2014
A. Basis of Preparation of Financial Statements
The Financial Statements are prepared under historical cost convention
and comply in all material aspects with the applicable accounting
principles in India, Accounting Standards notified under Sub Section 3
(C) of Section 211 of the Companies Act 1956 read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
and other relevant provisions of the Companies Act ,1956.
b. Revenue Recognition
Revenue is recognised when there is reasonable certainty of its
ultimate realization/collection. Prudential norms prescribed by Reserve
Bank of India for revenue recognition are followed.
i) Lease Rentals
Lease rentals received/receivable under lease agreements are accounted
as income net of Lease Equalisation to ensure recognition of Net Income
at a constant periodic rate of return on the Net Investment outstanding
in the lease as per (A3)-19 on leases. Against the lease rentals a
matching annual charge (which represents recovery of the net investment
in the leased assets over the lease term) is made to the Profit and
Loss Account.
ii) Hire-Purchase
Income from Hire Purchase financing is recognised on equated instalment
basis.
iii) Dividend Income is accounted when the right to receive the same is
established.
iv) Interest income is recognised on a time proportion basis taking
into account the amount outstanding and the rate applicable.
c. Fixed Assets
The fixed assets are stated at cost less accumulated depreciation. The
cost of fixed assets includes taxes and other identifiable direct
expenses.
d. Depreciation
Depreciation on Fixed Assets is provided on Straight line Method at the
rates and in the manner given in Schedule-XIV (as amended by the
Department of Companies Affairs, Government of India on December
16,1993) to the Companies Act, 1956. In respect of Fixed Assets
acquired prior to December 16,1993 depreciation is provided at the
rates applicable prior to the amendment. Assets costing upto Rs. 5000/
- each are depreciated fully in the year of purchase. In respect of
assets given on lease the company has followed the recommendations of
the Institute of Chartered Accountants of India on accounting for
leases. No depreciation is provided in respect of assets leased after
01.04.2001 as per Accounting Standard-19 on "Leases".
e. Stock on Hire
Stock on hire is valued at cost plus total finance charges and is
reduced by the instalments which have matured during the relevant
period.
f. Investments
Investments are classified into current and long term investments. Long
Term Investments are valued at cost. Current Investments are valued at
lower of cost and fair value. However, diminution other than temporary
is provided. The Profit/Loss arising on account of Sales is recognised
in the Profit & Loss Account.
g. Employee Benefits
Contribution to Defined Contribution Schemes such as Provident Fund is
charged to Profit & Loss Account. Gratuity liability for employees who
have completed five years of service is provided for on the basis of
actual liability determined by the company. Liability on account of
short term employee benefits such as bonus is recognized on an
undiscounted accrual basis.
h. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets, if any, are capitalised as part of
the cost of such assets. A qualifying asset is one that necessarily
takes substantial period of time to get ready for intended use. All
other borrowing costs are charged to revenue.
I. Taxation
Provision for current tax is made based on the liability computed in
accordance with relevant tax rates and tax laws. Deferred tax is
recognised, subject to the consideration of prudence, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
j. Foreign currency Transactions
(a) Transactions in foreign currencies are recorded at the exchange
rate prevailing at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are translated at the rates prevailing as on the date of Balance Sheet
and resultant exchange loss/gain, if any, is dealt in the Profit & Loss
Account.
(c) In respect of transactions covered by forward exchange contracts,
the difference between exchange rate on the date of the contract and
the year end rate/settlement rate is recognized in the profit & loss
account. Any premium/discount on forward contract is amortised over the
life of the contract. Any profit/loss arising on cancellation or
renewal of such a contract is recognized as income or expense for the
period.
k. Provisions & Contingent Liabilities
A provision is recognised when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
would be required to settle the obligation and in respect of which a
reliable estimate can be made. Provisions are reviewed at each balance
sheet date and are adjusted to effect the current best estimation.
A contingent Liability is disclosed after a careful evaluation of the
facts and legal aspects of the matter involved where the possibility of
an outflow of resources embodying the economic benefits is remote.
l. Impairment of Assets
The carrying values of assets / cash generating units at each balance
sheet date are reviewed for impairment of assets. If any such
indication exists, impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in books of accounts. In case there is '' any indication that an
impairment loss recognised for an asset in prior accounting periods no
longer exists or may have decreased, the recoverable value is
reassessed and the reversal of impairment loss is recognised as income
in the profit and loss account
m. Other Accounting Policies
These are consistent with generally accepted accounting practices.
Mar 31, 2013
A. Basis of Preparation of Financial Statements
The Financial Statements are prepared under historical cost convention
and comply in all material aspects with the applicable accounting
principles in India , Accounting Standards notified under Sub Section 3
(C) of Section 211 of the Companies Act 1956 and other relevant
provisions of the Companies Act ,1956.
b. Revenue Recognition
Revenue is recognised when there is reasonable certainty of its
ultimate realization/collection. Prudential norms prescribed by
Reserve Bank of India for revenue recognition are followed.
i) Lease Rentals
Lease rentals received/receivable under lease agreements are accounted
as income net of Lease Equalisation to ensure recognition of Net Income
at a constant periodic rate of return on the Net Investment outstanding
in the lease as per (AS)-19 on leases. Against the lease rentals a
matching annual charge (which represents recovery of the net investment
in the leased assets over the lease term) is made to the Profit and
Loss Account.
ii) Hire-Purchase
Income from Hire Purchase financing is recognised on equated instalment
basis.
iii) Dividend Income is accounted when the right to receive the same is
established.
iv) Interest income is recognised on a time proportion basis taking
into account the amount outstanding and the rate applicable.
c. Fixed Assets
The fixed assets are stated at cost less accumulated depreciation. The
cost of fixed assets includes taxes and other identifiable direct
expenses.
d. Depreciation
Depreciation on Fixed Assets is provided on Straight line Method at the
rates and in the manner given in Schedule-XIV (as amended by the
Department of Companies Affairs, Government of India on December 16,
1993) to the Companies Act, 1956. In respect of Fixed Assets acquired
prior to December 16, 1993 depreciation is provided at the rates
applicable prior to the amendment. Assets costing upto Rs. 5000/- each
are depreciated fully in the year of purchase. In respect of assets
given on lease the company has followed the recommendations of the
Institute of Chartered Accountants of India on accounting for leases.
No depreciation is provided in respect of assets leased after
01.04.2001 as per Accounting Standard-19 on "Leases".
e. Stock on Hire
Stock on hire is valued at cost plus total finance charges and is
reduced by the instalments which have matured during the relevant
period.
f. Investments
Investments are classified into current and long term investments. Long
Term Investments are valued at cost. Current Investments are valued at
lower of cost and fair value. However, diminution other than temporary
is provided. The Profit/Loss arising on account of Sales is recognised
in the Profit & Loss Account.
g. Employee Benefits
Contribution to Defined Contribution Schemes such as Provident Fund is
charged to Profit & Loss Account. Gratuity liability for employees who
have completed five years of service is provided for on the basis of
actual liability determined by the company. Liability on account of
short term employee benefits such as bonus is recognized on an
undiscounted accrual basis.
h. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets, if any, are capitalised as part of
the cost of such assets. A qualifying asset is one that necessarily
takes substantial period of time to get ready for intended use. All
other borrowing costs are charged to revenue.
i. Taxation
Provision for current tax is made based on the liability computed in
accordance with relevant tax rates and tax laws. Deferred tax is
recognised, subject to the consideration of prudence, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
j. Foreign currency Transactions
(a) Transactions in foreign currencies are recorded at the exchange
rate prevailing at the date of the transaction.
(b) (b) Monetary items denominated in foreign currencies at the year
end are translated at the rates prevailing as on the date of Balance
Sheet and resultant exchange loss/gain, if any, is dealt in the Profit
& Loss Account.
(c) (c) In respect of transactions covered by forward exchange
contracts, the difference between exchange rate on the date of the
contract and the year end rate/settlement rate is recognized in the
profit & loss account. Any premium/discount on forward contract is
amortised over the life of the contract. Any profit/loss arising on
cancellation or renewal of such a contract is recognized as income or
expense for the period.
k. Provisions & Contingent Liabilities
A provision is recognised when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
would be required to settle the obligation and in respect of which a
reliable estimate can be made. Provisions are reviewed at each balance
sheet date and are adjusted to effect the current best estimation.
A contingent Liability is disclosed after a careful evaluation of the
facts and legal aspects of the matter involved where the possibility of
an outflow of resources embodying the economic benefits is remote.
I. Impairment of Assets
The carrying values of assets / cash generating units at each balance
sheet date are reviewed for impairment of assets. If any such
indication exists , impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in books of accounts. In case there is any indication that an
impairment loss recognised for an asset in prior accounting periods no
longer exists or may have decreased, the recoverable value is
reassessed and the reversal of impairment loss is recognised as income
in the profit and loss account.
m. Other Accounting Policies
These are consistent with generally accepted accounting practices.
Mar 31, 2011
A. Basis of Preparation of Financial Statements
The Financial Statements are prepared under historical cost convention
and comply in all material aspects with the applicable accounting
principles in India , Accounting Standards notified under Sub Section 3
(C) of Section 211 of the Companies Act 1956 and other relevant
provisions of the Companies Act ,1956.
b. Revenue Recognition
Revenue is recognised when there is reasonable certainty of its
ultimate realization/collection. Prudential norms prescribed by
Reserve Bank of India for revenue recognition are followed.
i) Lease Rentals
Lease rentals received/receivable under lease agreements are accounted
as income net of Lease Equalisation to ensure recognition of Net Income
at a constant periodic rate of return on the Net Investment outstanding
in the lease as per (AS)-19 on leases. Against the lease rentals a
matching annual charge (which represents recovery of the net investment
in the leased assets over the lease term) is made to the Profit and
Loss Account.
ii) Hire-Purchase
Income from Hire Purchase financing is recognised on equated instalment
basis.
iii) Dividend Income is accounted when the right to receive the same is
established.
iv) Interest income is recognised on a time proportion basis taking
into account the amount outstanding and the rate applicable.
c. Fixed Assets
The fixed assets are stated at cost less accumulated depreciation. The
cost of fixed assets includes taxes and other identifiable direct
expenses.
d. Depreciation
Depreciation on Fixed Assets is provided on Straight line Method at the
rates and in the manner given in Schedule-XIV (as amended by the
Department of Companies Affairs, Government of India on December 16,
1993) to the Companies Act, 1956. In respect of Fixed Assets acquired
prior to December 16, 1993 depreciation is provided at the rates
applicable prior to the amendment. Assets costing upto Rs. 5000/- each
are depreciated fully in the year of purchase. In respect of assets
given on lease the company has followed the recommendations of the
Institute of Chartered Accountants of India on accounting for leases.
No depreciation is provided in respect of assets leased after
01.04.2001 as per Accounting Standard-19 on "Leases".
e. Stock on Hire
Stock on hire is valued at cost plus total finance charges and is
reduced by the installments which have matured during the relevant
period.
f. Investments
Investments are classified into current and long term investments. Long
Term Investments are valued at cost. Current Investments are valued at
lower of cost and fair value. However, diminution other than temporary
is provided. The Profit/Loss arising on account of Sales is recognised
in the Profit & Loss Account.
g. Employee Benefits
Contribution to Defined Contribution Schemes such as Provident Fund is
charged to Profit & Loss Account. Gratuity liability for employees who
have completed five years of service is provided for on the basis of
actual liability determined by the company. Liability on account of
short term employee benefits such as bonus is recognized on an
undiscounted accrual basis.
h. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets, if any, are capitalised as part of
the cost of such assets. A qualifying asset is one that necessarily
takes substantial period of time to get ready for intended use. All
other borrowing costs are charged to revenue.
i. Taxation
Provision for current tax is made based on the liability computed in
accordance with relevant tax rates and tax laws. Deferred tax is
recognised, subject to the consideration of prudence, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
j. Foreign currency Transactions
(a) Transactions in foreign currencies are recorded at the exchange
rate prevailing at the date of the transaction.
(b) Loans denominated in foreign currencies at the year end are
translated at the rates prevailing as on the date of Balance Sheet and
resultant exchange loss/gain, if any, is dealt in the Profit & Loss
Account.
(c) In respect of transactions covered by forward exchange contracts,
the difference between exchange rate on the date of the contract and
the year end rate/settlement rate is recognized in the profit & loss
account. Any premium/discount on forward contract is amortised over the
life of the contract. Any profit/loss arising on cancellation or
renewal of such a contract is recognized as income or expense for the
period.
k. Provisions & Contingent Liabilities
A provision is recognised when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
would be required to settle the obligation and in respect of which a
reliable estimate can be made. Provisions are reviewed at each balance
sheet date and are adjusted to effect the current best estimation.
A contingent Liability is disclosed after a careful evaluation of the
facts and legal aspects of the matter involved where the possibility of
an outflow of resources embodying the economic benefits is remote.
l. The carrying values of assets / cash generating units at each
balance sheet date are reviewed for impairment of assets. If any such
indication exists , impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in books of accounts. In case there is any indication that an
impairment loss recognised for an asset in prior accounting periods no
longer exists or may have decreased , the recoverable value is
reassessed and the reversal of impairment loss is recognised as income
in the profit and loss account.
m. Other Accounting Policies
These are consistent with generally accepted accounting practices.