Mar 31, 2014
A) Basis of accounting and preparation of financial statements
The financial statements of the company have been prepared in
accordance with the generally Accepted Accounting Principles in India
(Indian GAPP) to comply with the Accounting standards notified under
the Companies (Accounting standards) Rules, 2006(as amended )and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting principles adopted in the preparation
of the financial statements are consistent with those followed in the
previous year.
b) Use of estimates
The preparation of the financial statements in conformity with Indian
GAPP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results could offer due to these estimates and the differences
between the actual results and estimates are recognized in the periods
in which the results are known/materialize.
c) Cash flow statement
Cash flow statement are reported using the direct 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
activities of the company are segregated based on the available
information.
d) Revenue recognition
Revenue income from sale of goods is recognized net of trade discounts,
returns on transfer of significant risks and rewards of ownership to
the buyer. Sale of goods is recognized gross of excise duty but net of
sales tax and value added tax.
e) Other income
Interest and discount income are accounted on accrual basis.
f) Fixed Assets- Tangible Assets
Fixed assets are arrived at cost less accumulated depreciation and
impairment of loss if any. Cost includes related taxes, duties,
freight, insurance etc attributable to the acquisition and installation
of fixed assets but excludes duties and taxes that are recoverable from
tax authorities.
g) Depreciation
Depreciation on fixed assets has been provided on Written down value
method at the rates provided in Schedule XIV of the Companies Act,
1956.
h) Employee benefits
Employee benefits include Provident fund and Employee State Insurance
fund.
Defined Contribution Plans
The Company''s contribution to Provident fund and Employee state
Insurance fund are considered as defined contribution plans.
The company contributes to a government administered Provident and
Employee state Insurance fund on behalf of its employees, which are
charges to the Statement of Profit and loss . The company has no
obligations for future Provident and Employee State insurance fund
benefits other than its monthly contributions.
i) Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income tax
Act, 1961
Deferred tax is recognized on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period are capable ofreversal in one or more subsequent periods.
Deferred tax is measured using the tax rates and the tax laws enacted
or subsequently enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets are recognized for timing differences of items other than
unabsorbed depreciation and carried forward losses only to the extent
that reasonable certainty exists that sufficient future taxable income
will be available against which these can be realised. However, if
there are unabsorbed depreciation and carry forward losses, deferred
tax assets are recognized only if there is actual certainty that there
will be sufficient future taxable income available to realize the
assets. Defered tax assets and liabilities are offset if such items
relate to taxes on income levied by the same governing tax laws and the
Company has a legally enforceable right for such set off. Deferred tax
assets are reviewed at each balance sheet date for their realisability.
j) Earnings per share
Basic earnings per share is computed by dividing the profit after tax
by the weighted average number of equity shares outstanding during the
year. Diluted earnings per share is computed by dividing the profit
after tax as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of
equity shares considered for deriving basic average earnings per share
and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share
from continuing operations. Potential equity shares are deemed to be
converted as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares been actually
issued at fair value(i.e.average market value of the outstanding
shares) . Dilutive potential equity shares are determined independently
for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits/reverse share
splits and bonus shares as appropriate.
Mar 31, 2013
A) Basis of accounting and preparation of financial statements
The financial statements of the company have been prepared in
accordance with the generally Accepted Accounting Principles in India
(Indian GAPP) to comply with the Accounting standards notified under
the Companies (Accounting standards) Rules, 2006(as amended )and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting principles adopted in the preparation
of the financial statements are consistent with those followed in the
previous year.
b) Use of estimates
The preparation of the financial statements in conformity with Indian
GAPP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results could offer due to these estimates and the differences
between the actual results and estimates are recognized in the periods
in which the results are known/materialize.
c) Cash flow statement
Cash flow statement are reported using the direct 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
activities of the company are segregated based on the available
information.
d) Revenue recognition
Revenue income from sale of goods is recognized net of trade discounts,
returns on transfer of significant risks and rewards of ownership to
the buyer. Sale of goods is recognized gross of excise duty but net of
sales tax and value added tax.
e) Other income
Interest and discount income are accounted on accrual basis.
f) Fixed Assets- Tangible Assets
Fixed assets are arrived at cost less accumulated depreciation and
impairment of loss if any. Cost includes related taxes, duties,
freight, insurance etc attributable to the acquisition and installation
of fixed assets but excludes duties and taxes that are recoverable from
tax authorities.
g) Depreciation
Depreciation on fixed assets has been provided on Written down value
method at the rates provided in Schedule XIV of the Companies Act,
1956.
h) Employee benefits
Employee benefits include Provident fund and Employee State Insurance
fund.
Defined Contribution Plans
The Company''s contribution to Provident fund and Employee state
Insurance fund are considered as defined contribution plans.
The company contributes to a government administered Provident and
Employee state Insurance fund on behalf of its employees, which are
charges to the Statement of Profit and loss . The company has no
obligations for future Provident and Employee State insurance fund
benefits other than its monthly contributions.
i) Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income tax
Act, 1961
Deferred tax is recognized on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period are capable ofreversal in one or more subsequent periods.
Deferred tax is measured using the tax rates and the tax laws enacted
or subsequently enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets are recognized for timing differences of items other than
unabsorbed depreciation and carried forward losses only to the extent
that reasonable certainty exists that sufficient future taxable income
will be available against which these can be realised. However, if
there are unabsorbed depreciation and carry forward losses, deferred
tax assets are recognized only if there is actual certainty that there
will be sufficient future taxable income available to realize the
assets. Defered tax assets and liabilities are offset if such items
relate to taxes on income levied by the same governing tax laws and the
Company has a legally enforceable right for such set off. Deferred tax
assets are reviewed at each balance sheet date for their realisability.
j) Earnings per share
Basic earnings per share is computed by dividing the profit after tax
by the weighted average number of equity shares outstanding during the
year. Diluted earnings per share is computed by dividing the profit
after tax as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of
equity shares considered for deriving basic average earnings per share
and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share
from continuing operations. Potential equity shares are deemed to be
converted as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares been actually
issued at fair value(i.e.average market value of the outstanding
shares) . Dilutive potential equity shares are determined independently
for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits/reverse share
splits and bonus shares as appropriate.
Mar 31, 2012
Basis of Preparation.
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Financial Statements have been prepared to comply in
all material respects with the accounting standards notified under the
Companies (Accouting Standards) Rules, 2006 (as amended and as
applicable from time to time) and the relevant provisions of the
Companies Act, 1956. The Financial Statements have been prepared on an
accrual basis and under the historical cost convention on Going Concern
Basis. The accounting policies adopted in the preparation of financial
statements are consistent with those of the previous year.
Presentation and disclosure of Financial Statements.
During the year ended 31st March 2012, the revised Schedule VI notified
under the Companies Act, 1956, has become applicable to the Company,
for preparation and presentation of its financial statements. The
adoption of revised Schedule IV does not impact recognition and
measurement principles followed for preparation of theses financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
Uses of Estimates
The presentation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, revenues and
expenses and disclosures of contingent liabilities, Management believes
that the estimates used in the preparation of the financial statements
are prudent and reasonable, future results could differ, the
differences between the actual results and the estimates are recognized
in the period in which the results are known / materialise.
Fixed Assets
Fixed Assets are stated at Historical cost less accumulated
depreciation and impairment loss if any. Historical cost comprises the
purcahse price (net of CENVAT/Duty Credits whenever applicable) and all
direct costs attributable to bringing the asset to its working
condition for intended use.
Depreciation
Depereciation has been provided on the written down method on pro rata
month basis as per Section 205 (2) (b) of the Companies Act, 1956.
Inventories
Inventories are valued at lower of cost (on weighted average basis) and
net realizable value after providing for obsolescence and other losses,
where considered necessary. Cost includes all charges in bringing the
goods to their present location and condition. Work in process and
finished goods include appropriate proportion of overheads and where
applicable, excise duty. Revenue Recognition.
Sales of Goods
Sales are recognized, net of returns and trade discounts, Sales Tax and
Value Added Tax, on dispatch of goods t customers.
Income from Services
Revenues from contracts priced on a time and material basis are
recognised when services are rendered and related costs are incurred.
Other Income
Interest benefits consist of Provident Fund, Employees State Insurance
Scheme.
Employee Benefits
Employee benefits consist of Provident Fund, Employees State Insurance
Scheme.
Finance Costs
Costs in connection with the borrowing of funds to the extend not
directly reated to the acquisition of fixed assets are amortised and
charged to statement of Profit and Loss, over the tenure of the loan.
Interest on borrowed money, allocated to and utilized for qualifying
fixed assets, pertaining to the period upto the date of capitalization
is added to the cost of the assets.
Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred Tax is recognized on timing difference, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods.
Deferred Tax Assets in respect of unabsorbed depreciation and carry
forward of losses are recognized if there is virtual certainty that
there will be sufficient future taxable income available to realiaze
such losses. Other Deferred Tax Assets are recognized if there is
reasonable certainty that there will be sufficient future taxable
income to realize such assets.
Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and 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 flow for operating,
investing and financing activities of the Company are segregated based
on the available information.
Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits with banks.
Mar 31, 2010
The financial statements have been prepared on the historical cost
convention in accordance with generally accepted accounting policies.
(i) Fixed Assets and Depreciation : Fixed assets are stated at
historical cost as reduced by accumulated Depreciation.Depreciation on
fixed assets have been provided under written down value method at the
rates provided in Sch XIV of the Companies Act, 1956, on the prorata
month basis.
(ii) Inventories
1. Raw materials - Valued at Cost ( Net of Modvat ) On FIFO Basis
2. Work In Progress - At Cost
3. Finished Goods- at cost price (iii) Revenue Recognition
All income and expenses are accounted on accrual basis.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article