Mar 31, 2014
NIL
Mar 31, 2010
1. Basis of Accounting :
Financial Statements are prepared under the historical cost convention
on the basis of a going concern in accordance with the mandatory
Accounting Standards issued by the Institute of Chartered Accountants
of India and the provisions of the Companies Act, 1956.
2. Income & Expenditure :
Accounting of Income & Expenditure is done on accrual basis. Sales are
recognized when goods are dispatched to customers. Sales are recorded
at invoice value and exclude Sales Tax.
3. Fixed Assets & Depreciation :
a) Fixed Assets are stated at their original cost of acquisition
inclusive of freight, duties levies and any directly attributable cost
of bringing the assets to the working condition for intended use.
b) Depreciation on fixed assets has been provided on Straight Line
Method and at the rates and the manner specified in Schedule XIV to the
Companies Act, 1956.
c) Depreciation on the acquisition/purchase of assets during the year
has been provided on pro- rata basis according to period each asset was
put to use during the year.
d) Expenditure on renovation/ modernization relating to existing fixed
assets is added to the cost of such assets where it increases its
performance / life significantly.
4. Inventories:
Inventories are valued at cost or market value which ever is lower.
Cost comprises all cost of purchase, cost of conversion and other costs
incurred in bringing the inventories to their present location and
condition. The cost is computed on weighted average/ FIFO basis. Due
allowance is estimated and made for defective and obsolete items,
wherever necessary, based on the past experience of the Company. Goods
in transit are valued at cost, which represents the costs incurred up
to the stage at which the goods are in transit.
5. Governments Grants:
Capital grants related to specific assets are reduced from the gross
value of the Fixed Assets.
6. Borrowing Cost:
Interest Cost relating to (i) funds borrowed for acquisition of fixed
assets are capitalized and (ii) funds borrowed for other purposes are
charged to Profit and Loss Account.
7. Taxes on Income :
Provision for current tax is made considering the provisions of Income
Tax Act, 1961. Deferred tax is recognized subject to the consideration
of prudence, on timing difference, being the differences between Book
profit and tax profit that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are
recognized only if there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
8. Foreign Currency Transactions :
Foreign currency transactions are recorded at the exchange rate
prevailing on the date of transaction. Monetary assets and liabilities
in foreign currency existing at balance sheet date are translated at
the exchange rate prevailing on that date. Exchange differences in case
of borrowed funds and liabilities in foreign currency for the
acquisition of fixed assets from a country outside India are adjusted
to the cost of fixed assets. All other exchanges differences are
recognized in Profit and Loss Account.
9. Retirement Benefits:
a) Retirement benefits in the form of Provident Fund is a defined
contribution scheme and the contribution is charged to the Profit &
Loss Account. There are no other obligations other then the
contribution payable to the said fund.
b) Gratuity liability is defined benefit obligations and are provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year and in conformity with
Accounting Standard -15.
c) Liability for leave encashment is provided for on the basis of an
actuarial valuation on projected unit credit method made at the end of
each financial year.
d) Actuarial gains/ losses are immediately taken to the Profit & Loss
Account and are not deferred.
10. Impairment of Assets:
An asset is treated as impaired, when the carrying cost of assets
exceeds its recoverable value. An impairment loss, if any, is charged
to profit and loss account, in the year in which an asset is identified
as impaired.
11. Provisions /Contingencies:
Provision involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resource.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statement.
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