Mar 31, 2015
A. Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with the
generally accepted accounting principles and on accrual basis of
accounting under historical cost.
b. Use of Estimates
The preparation of financial statements requires the Management make
estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Difference between the
actual results and estimates are recognized in the period in which the
results materialize or are known.
c. Inventories
Items of Inventories are valued at cost.
d. Cash Flow Statement
Cash Flow are reported using the indirect method, whereby profit/loss
before extraordinary items and tax is adjusted for 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 and financing activities of the Company are segregated based
on the available information.
e. Fixed Assets and Depreciation
1. Fixed Assets are stated at cost less accumulated depreciation. All
cost, including financing cost till commencement of assets put to use,
effect of foreign exchange contracts and adjustment arising from
exchange rate variations attributable to the fixed assets are
capitalised.
2. Expenditure including finance costs related to borrowed funds for
the fixed assets incurred on projects under implementation is included
under "Capital Work in Progress". These expenses are transferred to
fixed assets on commencement of respective projects.
3. Tangible Assets
(i) Depreciation on Fixed Assets is provided to the extent of
depreciable amount on Straight Line Method based on balance useful
lives of the Assets as per useful life prescribed in Schedule II to the
Companies Act, 2013.
(ii) The carrying amount of the asset, as on date of Schedule II
becoming effective, after retaining the residual value, shall be
recognised in the opening balance of retained earnings where the
remaining useful life of an asset is NIL.
f. Revenue Recognition
Sales of goods and other operational revenue are net of tax.
g. Other Income
Interest Income is accounted on accrual basis. Dividend Income is
accounted for when the right to receive it is established.
h. Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the dated of the transaction. Monetary
assets & liabilities remaining unsettled at the year-end are translated
at closing rates.
i. Investments
Investments that are intended to be held for more than a year, from the
date of acquisition, are classified as Long Term Investments. Long Term
Investments and Current Investments are carried at cost. Unquoted
investments are stated at book value. However, provision for diminution
in value of investment is made to recognise a decline in the value of
investment.
j. Earnings per Share
Basic Earnings per share is computed by dividing the profit/(loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.
k. Tax on Income
Current Tax is determined on the basis of the amount of tax payable in
respect of taxable income for the year.
Deferred Tax is calculated at current statutory Income Tax rate and is
recognized on timing differences, being the difference between the
Taxable Income and Accounting Income that originate in one period.
Deferred Tax Assets subject to the consideration of prudence are
recognized and carried forward only to the extent that there is a
responsible certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
l. Provisions and contingencies
Provisions involving substantial degree of estimation in measurement
are recognized when there is 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 of the obligation. Contingent Assets are neither recognized nor
disclosed in the financial statements. Contingent Liabilities are not
recognized but are disclosed by way of notes.
Mar 31, 2014
A. Basis of Preparation of Financial Statements : The financial
statements have been prepared in accordance with the generally accepted
accounting principles and on accrual basis of accounting under
historical cost.
b. Use of Estimates : The preparation of financial statements requires
the Management to make estimates and assumptions to be made that affect
the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. The Management believes that the estimates
used in preparation of the financial statements are prudent and
reasonable. Difference between the actual results and estimates are
recognized in the period in which the results materialize or are known.
c. Inventories : Items of Inventories are valued at cost.
d. Cash Flow Statement : Cash Flows are reported using the indirect
method, whereby profit/loss before extraordinary items and tax is
adjusted for 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 and financing activities of the
Company are segregated based on the available information.
e. Depreciation and amortization : Depreciation has been provided on
straight line method as per the provision of section 205(2)(a) of The
Companies Act, 1956 and as per the SCHEDULE XIV of The Companies Act,
1956. However, as per the consistency followed by the Management, the
Company has not provided depreciation on its fixed assets from
1998-1999 to 2011-2012 (Refer Note 11) However from FY 2012-13 the
Company has provided depreciation on SLM on the Assets purchased
thereafter.
f. Revenue Recognition : Sales of goods and other operational Revenue
are net of tax.
g. Other Income : Interest Income is accounted on accrual basis.
Dividend Income is accounted for when the right to receive it is
established.
h. Tangible fixed assets : Fixed Assets are stated at cost of
acquisition less accumulated depreciation upto year 1997-99. The
installation and direct attributable major expenses incurred on the
addition of the assets are capitalized to respective assets. (Refer
Note 11)
i. Investments : Investments classified as long term investments are
stated at cost of acquisition, except where there is permanent
diminution in value of investments, appropriate provision for
diminishing value has been made in the accounts.
j. Earnings per share : Basic Earning per share is computed by
dividing the profit/(loss) after tax (including the post tax effect of
extraordinary items, if any) by the weighted average number of equity
shares outstanding during the year.
k. Tax on Income : Current Tax is determined on the basis of the
amount of tax payable in respect of taxable income for the year.
Deferred tax asset/liability arising due to timing differences and
unabsorbed losses under tax laws is not recognized during the year
based on the concept of prudence and uncertainty for the realistic
estimates for the future profits.
l. Provisions and contingencies : Provisions involving substantial
degree of estimation in measurement are recognized when there is
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 of the obligation.
Contingent Assets are neither recognized nor disclosed in the financial
statements. Contingent Liabilities are not recognized but are disclosed
by way of notes.
Mar 31, 2013
A. Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with the
generally accepted accounting principles and on accrual basis of
accounting under historical cost.
b. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Difference between the
actual results and estimates are recognized in the period in which the
results materialize or are known.
c. Inventories
Items of Inventories are valued at cost.
d. Cash Flow Statement
Cash Flows are reported using the indirect method, whereby profit/loss
before extraordinary items and tax is adjusted for 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 and financing activities of the Company are segregated based
on the available information.
e. Depreciation and amortization
Depreciation has been provided on straight line method as per the
provision of section 205(2)(a) of The Companies Act, 1956 and as per
the SCHEDULE XIV of The Companies Act, 1956. However, as per the
consistency followed by the Management, the Company has not provided
depreciation on its fixed assts from 1998-1999 to 2011-2012 (Refer Note
11) However Company has provided depreciation on SLM on the Assets
purchased during the year.
f. Revenue Recognition
Sales of goods and other operational Revenue are net of tax.
g. Other Income
Interest Income is accounted on accrual basis. Dividend Income is
accounted for when the right to receive it is established.
h. Tangible fixed assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation upto year 1997-99. The installation and direct
attributable major expenses incurred on the addition of the assets are
capitalized to respective assets. (Refer Note 11)
i. Investments
Investments classified as long term investments are stated at cost of
acquisition, except where there is permanent diminution in value of
investments, appropriate provision for diminishing value has been made
in the accounts..
j. Earnings per share
Basic Earning per share is computed by dividing the profit/(loss) after
tax (including the post tax effect of extraordinary items, if any) by
the weighted average number of equity shares outstanding during the
year.
k. Tax on Income
Current Tax is determined on the basis of the amount of tax payable in
respect of taxable income for the year.
Deferred tax asset/liability arising due to timing differences and
unabsorbed losses under tax laws is not recognized during the year
based on the concept of prudence and uncertainty for the realistic
estimates for the future profits.
l. Provisions and contingencies
Provisions involving substantial degree of estimation in measurement
are recognized when there is 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 of the obligation... Contingent Assets are neither recognized nor
disclosed in the financial statements. Contingent Liabilities are not
recognized but are disclosed by way of notes.
Mar 31, 2012
A. Basis of Accounting and Preparation of financial statements :
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles and on accrual basis ol
accounting under historical cost.
b. Use of Estimates :
. The preparation of the financial statements requires the Management
to make estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial
statements and the reported amount of revenues and expenses during the
reporting period. The Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Difference between the actual results and estimates are recognized in
the period in which the results materialize or are known.
C. Inventories :
Items of Inventories are valued at cost.
d. Cash Flow Statements :
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 flows from operating,
investing and financing activities of the Company are segregated based
on the available information.
e. Depreciation and amortization :
Depreciation has been provided on straight line method as per the
provision of section 205(2)(a) of The Companies Act, 1956 and as per
the SCHEDULE XIV of The Companies Ad, 1956. However, as per the
consistency followed by the Management, the Company has not provided
depreciation on its fixed assets since 1996-99. (Refer Note 9)
f. Revenue Recognition :
Sale of goods are net of tax.
g. Other Income :
Interest Income is accounted on accrual basis. Dividend Income is
accounted for when the right to receive it is established.
h. Tangible fixed assets:
Fixed Assets are stated at cost of acquisition less accumulated
depreciation upto year 1997-99. The installation and dired attributable
major expenses incurred on the addition of the assets are capitalized
to respedive assets. (Refer Note 9)
i. Investments :
Investments classified as long term investments are stated at cost of
acquisition, except where there Is permanent diminution in value of
investments, such are stated at net of provisions made.
j. Earnings per share :
Basic Earning per share is computed by dividing the profrt/(loss) after
tax (including the post tax effect of extraordinary items, if any) by
the weighted average number of equity shares outstanding during the
year.
k. Taxes on Income :
Current Tax is determined on the basis of the amount of tax payable in
respect of taxable income for the year.
Deferred tax asset arising due to timing differences and unabsorbed
losses under tax laws is not recognized during the year based on the
concept of prudence and uncertainty for the realistic estimates of the
future profits.
l. Provisions and contingencies :
Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events, it is probable that there will be an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
Contingent Assets are neither recognized nor disclosed in the financial
statements. Contingent Liabilities are not provided for and are
disclosed by way of notes.
Mar 31, 2011
(1) SYSTEM OF ACCOUNTING
Accounts have been maintained on accrual concept, unless otherwise
stated.
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
balances of assets and liabilites and disclosures relating to the
contingent liabilites as at the date of the financial statements and
reported amounts of income and expenses during the year. Differences
between actual results and estimates are recognised in the period in
which the results are known/ materialised.
(2) FIXED ASSETS:
Fixed Assets are valued at cost including allocated Pre-operative
expenses less Depreciation.
(3) DEPRECIATION:
Depreciation on Fixed Assets have been provided on Straight Line Method
at the rates given in the Schedule XIV to the Companies Act, 1956 as
ammended by notification daled 16-12-93. Depreciation on Plant &
Machinery is provided at the rates given for Continuous process Plant.
(See Note-6)
(4) INVESTMENTS : Investment are stated at cost.
(5) VALUATION OF INVENTORIES :
Inventory is valued at lower of cost or net realisable value.
(6) RETIRMENT BENEFITS :
Gratuity is accounted on accrual basis.
(7) SALES & OTHER INCOME :
Sales is net of tax.
Dividend & Other income are accounted on cash basis.
(8) PROVISIONS, CONTINGENT LlABILITIES AND CONTINGENT ASSETS :
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events, it is probable that there will be an out flow of resources and
a reliable estimate can be made of the amount of the obligation.
Contingent Assets are neither recognised nor disclosed in the financial
statements. Contingent liabilities are not provided for and are
disclosed by way of notes.
(9) CONTINGENT LIABILITIES NOT PROVIDED FOR:
(a) Claims against company not acknowledged Rs. 3900000/-
as debt. Rs.(3900000/-)
(10) Balances of Unsecured Loans, Sundry Debtors, Sundry Creditors,
Loans and Advances and other liabilities are subject to confirmation
and reconciliation Any adjustment that may be necessary will be made in
the subsequent year on receipt of confirmation.
(11) In accordance with the "Accounting Standard 22" issued by the
Institute of Chartered Accountants of India, "Deferred tax assets"
arising due to timing differences and unabsorbed losses under tax laws
is not recognised during the year based on the concept of prudence and
uncertainty for the realistic estimates of the future profits,
(12) The Company has not provided depreciation on its fixed assets
since 1998-99. Due to this, profit for the current year is higher
stated by Rs. 372724/- (1101350/-) to the extent of depreciation
charge. Consequently, the Net Block of Fixed Assets and Net Worth is
shown higher by Rs.16154421/- (15781697/-) to the extent of unprovided
accumulated depreciation.