Mar 31, 2015
1 Background
KAYCEE INDUSTRIES LIMITED is a manufacturing and trading company in the
field of industrial switches, counters, water meters, electrical
components, etc.
2 BASIS OF PREPERATION OF FINANCIAL STATEMENT
a) The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principal (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standard as prescribed under Section 133 of the Companies
Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts)
Rules, 2014, and the provision of the Act.
b) Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported balances of assets
and liabilities and disclosures relating to contingent liabilities at
the date of the financial statements and reported amounts of income and
expenses during the year. Actual results could differ from those
estimates.
3 REVENUE RECOGNITION:
Revenue is recognised when the significant risks and rewards of
ownership of the goods have been passed to the buyer and are recorded
net of returns, trade discounts, rebates, sales tax & excise duty where
ever applicable.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable. Dividend income
is recognised when the Company's right to receive dividend is
established by the Balance Sheet date.
4 EMPLOYEE BENEFITS
I) Short Term Employees Benefits:
All short term employee benefits such as salaries, wages, bonus, short
term compensated absences, awards, ex gratia, performance pay, medical
benefits, which fall due within 12 months of the period in which the
employee renders the related service which entitles him to avail such
benefits and non accumulating compensated absences are recognized on an
undiscounted basis and charged to profit and loss account
II) Post Employment Benefit:
a) Defined Contribution Plan
Company's contribution to the provident fund based on a percentage of
salary is made to Provident Fund Trust, which are administered by the
trustees.
b) Defined Benefit Plan Gratuity:
The Company provides the gratuity benefit through annual contributions
to a fund managed by the Life Insurance Corporation of India (LIC).
Under this plan, the settlement obligation remains with the Company,
although the Life Insurance Corporation of India administers the plan
and determines the contribution premium on Projected Unit Credit Method,
which is required to be paid by the Company and is debited to the profit
and loss account on an accrual basis. Actuarial gains or losses arising
during the year are recognized in the profit and loss account.
c) Leave encashment is provided for on the basis of an actuarial
valuation carried out by an Actuary at the end of each financial year
and debited to the profit and loss account.
5 Inventories
Inventories of Raw Material, Components, Material in Process, Finished
goods, Stores & Packing materials and traded goods are stated 'At Cost
or Net Realizable value' whichever is lower.
Cost of inventories comprises of cost of purchase, cost of conversion
and other cost incurred in bringing the inventory to their present
location and condition.
Company uses FIFO method for valuation. Cost of finished goods includes
excise duty.
6 Fixed Assets
Tangible Assets
Fixed assets are stated at cost less accumulated depreciation,
amortization and impairment loss if any. The company capitalizes
direct costs including taxes, duty, freight and incidental expenses
attributable to the acquisition and installation of fixed assets.
Capital work-in-progress is stated at cost.
Depreciation
Depreciation is provided using the written down value method in
accordance with the schedule XIV of the Companies Act, 1956. Fixed
assets with estimated useful life of less than 1 year & onetime use are
fully depreciated in the year of acquisition. Depreciation on assets
acquired or disposed off during the year is provided on a pro-rata
basis from/up to the date of acquisition/disposal.
7 Depreciation
Depreciation on tangible asset is provided on the straight-line method
over the useful lives of assets estimated by the Management, which is
as per Schedule II of the Companies Act, 2013. Depreciation on assets
purchased / sold during a period is proportionally charged. The
Management estimates the useful lives of fixed assets as follows:-
Years
Buildings 30
Plant and Machinery 15
Office equipment 5
Electrical fittings 10
Computer - Servers 5
Computer - Others 3
Furniture and Fixtures 10
Vehicles 6
8 Impairment Policy
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. The
recoverable amount is the higher of an asset's net selling price or its
value in use. Where the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
9 Investments
Investments that are readily realizable and intend to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Long term
investments are stated at cost less any diminution in their value, which
is other than temporary. Current Investments are stated at lower of cost
and market value. Unquoted long term investments are valued at lower of
cost or latest available break up value.
10 Research and Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to Fixed Assets.
11 Foreign currency transaction
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are restated at
year-end rates. The exchange difference on restatement of monetary
assets and liabilities and realized gains and losses on foreign
exchange transactions other than those relating to fixed assets are
recognized in the profit and loss account. Exchange difference in
respect of liabilities incurred to acquire fixed assets is adjusted to
the carrying amount of such. Fixed assets
12 Segment Reporting Policies
Identification of segment is based on the major manufacturing products.
13 Earnings per share
Basic and diluted earnings per share are calculated by dividing the net
profit/ loss for the year by the weighted average number of equity
shares outstanding during the period.
14 Provisions and contingent liabilities
A provision is recognized when the company has a present obligation
resulting from past events and it is probable that an outflow of
resources will be required to settle the obligation for which a
reliable estimate can be made. Provisions are based on management's
best estimate of the amount required to settle the obligation at the
balance sheet date. Provisions are reviewed at each balance sheet date
and adjusted to reflect revision in estimates
The company has decided to provide for doubtful debts if debtors remain
outstanding above one year.
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
financial statements.
15 Provision for Taxation
a) Provision for Taxation comprises of current and deferred tax and
includes any adjustments related to past periods in current and / or
deferred tax adjustments that may become necessary due to certain
developments or reviews during the relevant period.
b) Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income-tax Act, 1961.
c) Deferred tax is recognized on timing differences between the
accounting income and the taxable income for the year. The tax effect
is calculated on the accumulated timing differences at the end of the
accounting period based on prevailing enacted or subsequently enacted
tax rates and the tax laws enacted or substantively enacted at the
Balance Sheet date.
d) Deferred tax liabilities are recognized for all timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. The carrying amount of deferred tax assets are
reviewed at each Balance Sheet date.
16 Estimated value of contracts (Net of Advances) to be executed on
capital account and not provided for Rs.Nil (Previous year Rs.Nil).
17 Company has not provided contingent liability of Rs. 3.96 Lacs
against Central Excise assessment for year 2007- 2008, and Liability
towards pending C forms have not been provided on account of
uncertainty.
18 Pakistan unit of the Company continues to be under the control of
Pakistan Government. It has not been possible to establish any
communication with the said unit so far. Therefore, statement of Assets
and Liabilities as at 30th June 1964 based on the last reports received
have been incorporated in the Balance sheet as pre devaluation rate of
rate of exchange.
Mar 31, 2014
1 Background
KAYCEE INDUSTRIES LIMITED is a manufacturing and trading company in the
field of industrial switches, counters, water meters, electrical
components, etc.
2 BASIS OF PREPARATION OF FINANCIAL STATEMENT
a) The financial statements are prepared under the historical cost
convention, on an accrual basis, in conformity with the accounting
principles generally accepted in India and in accordance with the
accounting standards referred to in section 211 (3C) of the Companies
Act, 1956 (''the Act'') The accounting policies applied by the company
are consistent with those used in previous year.
b) Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported balances of assets
and liabilities and disclosures relating to contingent liabilities at
the date of the financial statements and reported amounts of income and
expenses during the year. Actual results could differ from those
estimates.
3 REVENUE RECOGNITION:
Revenue is recognised when the significant risks and rewards of
ownership of the goods have been passed to the buyer and are recorded
net of returns, trade discounts, rebates, sales tax & excise duty where
ever applicable.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable. Dividend income
is recognised when the Company''s right to receive dividend is
established by the Balance Sheet date.
4 EMPLOYEE BENEFITS
I) Short Term Employees Benefits:
All short term employee benefits such as salaries, wages, bonus, short
term compensated absences, awards, ex gratia, performance pay, medical
benefits, which fall due within 12 months of the period in which the
employee renders the related service which entitles him to avail such
benefits and non accumulating compensated absences are recognized on an
undiscounted basis and charged to profit and loss account
II) Post Employment Benefit:
a) Defined Contribution Plan
Company''s contribution to the provident fund based on a percentage of
salary is made to Provident Fund Trust, which are administered by the
trustees.
b) Defined Benefit Plan
Gratuity:
The Company provides the gratuity benefit through annual contributions
to a fund managed by the Life Insurance Corporation of India (LIC).
Under this plan, the settlement obligation remains with the Company,
although the Life Insurance Corporation of India administers the plan
and determines the contribution premium on Projected Unit Credit
Method, which is required to be paid by the Company and is debited to
the profit and loss account on an accrual basis. Actuarial gains or
losses arising during the year are recognized in the profit and loss
account.
c) Leave encashment is provided for on the basis of an actuarial
valuation carried out by an Actuary at the end of each financial year
and debited to the profit and loss account.
5 Inventories
Inventories of Raw Material, Components, Material in Process, Finished
goods, Stores & Packing materials and traded goods are stated ''At Cost
or Net Realizable value'' whichever is lower.
Cost of inventories comprises of cost of purchase, cost of conversion
and other cost incurred in bringing the inventory to their present
location and condition.
Company uses FIFO method for valuation. Cost of finished goods includes
excise duty.
6 Fixed Assets Tangible Assets
Fixed assets are stated at cost less accumulated depreciation,
amortization and impairment loss if any. The company capitalizes direct
costs including taxes, duty, freight and incidental expenses
attributable to the acquisition and installation of fixed assets.
Capital work-in-progress is stated at cost.
Depreciation
Depreciation is provided using the written down value method in
accordance with the schedule XIV of the Companies Act, 1956. Fixed
assets with estimated useful life of less than 1 year & onetime use are
fully depreciated in the year of acquisition. Depreciation on assets
acquired or disposed off during the year is provided on a pro-rata
basis from/up to the date of acquisition/disposal.
7 Impairment Policy
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. The
recoverable amount is the higher of an asset''s net selling price or its
value in use. Where the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
8 Investments
Investments that are readily realizable and intend to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Long term
investments are stated at cost less any diminution in their value,
which is other than temporary. Current Investments are stated at lower
of cost and market value. Unquoted long term investments are valued at
lower of cost or latest available break up value.
9 Research and Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to Fixed Assets.
10 Foreign currency transaction
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are restated at
year-end rates. The exchange difference on restatement of monetary
assets and liabilities and realized gains and losses on foreign
exchange transactions other than those relating to fixed assets are
recognized in the profit and loss account. Exchange difference in
respect of liabilities incurred to acquire fixed assets is adjusted to
the carrying amount of such. Fixed assets
11 Segment Reporting Policies
Identification of segment is based on the major manufacturing products.
12 Earnings per share
Basic and diluted earnings per share are calculated by dividing the net
profit/ loss for the year by the weighted average number of equity
shares outstanding during the period.
13 Provisions and contingent liabilities
A provision is recognized when the company has a present obligation
resulting from past events and it is probable that an outflow of
resources will be required to settle the obligation for which a
reliable estimate can be made. Provisions are based on management''s
best estimate of the amount required to settle the obligation at the
balance sheet date. Provisions are reviewed at each balance sheet date
and adjusted to reflect revision in estimates
The company has decided to provide for doubtful debts if debtors remain
outstanding above one year.
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
financial statements.
14 Provision for Taxation
a) Provision for Taxation comprises of current and deferred tax and
includes any adjustments related to past periods in current and / or
deferred tax adjustments that may become necessary due to certain
developments or reviews during the relevant period.
b) Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income-tax Act, 1961.
c) Deferred tax is recognized on timing differences between the
accounting income and the taxable income for the year. The tax effect
is calculated on the accumulated timing differences at the end of the
accounting period based on prevailing enacted or subsequently enacted
tax rates and the tax laws enacted or substantively enacted at the
Balance Sheet date.
d) Deferred tax liabilities are recognized for all timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. The carrying amount of deferred tax assets are
reviewed at each Balance Sheet date.
Mar 31, 2012
1 BACKGROUND
KAYCEE INDUSTRIES LIMITED is a manufacturing and trading company in the
field of industrial switches, counters, water meters, electrical
components, etc.
2 BASIS OF PREPERATION OF FINANCIAL STATEMENT
a) The financial statements are prepared under the historical cost
convention, on an accrual basis, in conformity with the accounting
principles generally accepted in India and in accordance with the
accounting standards referred to in section 211 (3C) of the Companies
Act, 1956 ('the Act') The accounting policies applied by the company
are consistent with those used in previous year except for the change
in policy explained below
During the year ended March 31, 2012 the revised schedule VI notified
under the Companies Act, 1956 has become applicable to the company for
preparation of its financial statements. Except accounting for dividend
on investment in subsidiary companies the adoption of revised schedule
VI does not impact recognition and measurement principles followed for
preparation of financial statements. The company has also reclassified
the previous year figures in accordance with requirements applicable in
current year.
b) Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported balances of assets
and liabilities and disclosures relating to contingent liabilities at
the date of the financial statements and reported amounts of income and
expenses during the year. Actual results could differ from those
estimates.
3 REVENUE RECOGNITION:
Sales are recognized when goods leave from factory premises and are
recorded net of returns, trade discounts, rebates, sales tax & excise
duty where ever applicable. And interest accrues on the time basis
determined by the amount outstanding and the reate applicable.
4 EMPLOYEE BENEFITS
I) Short Term Employees Benefits:
All short term employee benefits such as salaries, wages, bonus, short
term compensated absences, awards, ex gratia, performance pay, medical
benefits, which fall due within 12 months of the period in which the
employee renders the related service which entitles him to avail such
benefits and non accumulating compensated absences are recognized on an
undiscounted basis and charged to profit and loss account
II) Post Employment Benefit:
a) Defined Contribution Plan
Company's contribution to the provident fund based on a percentage of
salary is made to Provident Fund Trust, which are administered by the
trustees.
b) Defined Benefit Plan Gratuity:
The Company provides the gratuity benefit through annual contributions
to a fund managed by the Life Insurance Corporation of India (LIC).
Under this plan, the settlement obligation remains with the Company,
although the Life Insurance Corporation of India administers the plan
and determines the contribution premium on Projected Unit Credit
Method, which is required to be paid by the Company and is debited to
the profit and loss account on an accrual basis. Actuarial gains or
losses arising during the year are recognized in the profit and loss
account.
Leave encashment is provided for on the basis of an actuarial valuation
carried out by an Actuary at the end of each financial year and debited
to the profit and loss account.
5 Inventories
Inventories of Raw Material, Components, Material in Process, Finished
goods and traded goods are stated 'At Cost or Net Realizable value'
whichever is lower. Stores & Packing materials are stated 'At or
below cost'. Cost of inventories comprises of cost of purchase, cost
of conversion and other cost incurred in bringing the inventory to
their present location and condition. Company has used FIFO method for
valuation. Finished goods are inclusive of excise duty.
6 Fixed Assets Tangible Assets
Fixed assets are stated at cost less accumulated depreciation,
amortization and impairment loss if any. The company capitalizes direct
costs including taxes, duty, freight and incidental expenses
attributable to the acquisition and installation of fixed assets.
Capital work-in-progress is stated at cost.
Depreciation
Depreciation is provided using the written down value method in
accordance with the schedule XIV of the Companies Act, 1956. Fixed
assets with estimated useful life of less than 1 year & one time use
are fully depreciated in the year of acquisition. Depreciation on
assets acquired or disposed off during the year is provided on a
pro-rata basis from/up to the date of acquisition / disposal.
7 Impairment Policy
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. The
recoverable amount is the higher of an asset's net selling price or
its value in use. Where the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
8 INVESTMENTS
Investments that are readily realizable and intend to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Long term
investments are stated at cost less any diminution in their value,
which is other than temporary. Current assets are stated at lower of
cost and market value. Unquoted long term investments are valued at
lower of cost or latest available break up value.
9 RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to Fixed Assets.
10 FOREIGN CURRENCY TRANSACTION
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are restated at
year-end rates. The exchange difference on restatement of monetary
assets and liabilities and realized gains and losses on foreign
exchange transactions other than those relating to fixed assets are
recognized in the profit and loss account. Exchange difference in
respect of liabilities incurred to acquire fixed assets is adjusted to
the carrying amount of such. Fixed assets
11 SEGMENT REPORTING POLICIES
Identification of segment is based on the major manufacturing products.
12 EARNING PER SHARE
Basic and diluted earnings per share are calculated by dividing the net
profit/ loss for the year by the weighted average number of equity
shares outstanding during the period.
13 PROVISIONS
A provision is recognized when the company has a present obligation
resulting from past events and it is probable that an outflow of
resources will be required to settle the obligation for which a
reliable estimate can be made. Provisions are based on management's
best estimate of the amount required to settle the obligation at the
balance sheet date. Provisions are revjewed at each balance sheet date
and adjusted to reflect revision in estimates. The company has decided
to provide Bad and doubtful debts if debtors remain outstanding over
and above one year.
14 INCOME TAX
a) Tax on income for the current period is determined on the basis of
taxable income after considering the various deductions available under
The Income Tax Act, 1961.
b) Deferred tax is recognized on timing differences between the
accounting income and the taxable income for the year. The tax effect
is calculated on the accumulated timing differences at the end of the
accounting period based on prevailing enacted or subsequently enacted
regulations.
c) Deferred tax liabilities are recognized for all timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax
assets can be realized. At each reporting date the company reassesses
the unrecognized deferred tax assets and reviews the deferred tax
assets recognized.
15 Estimated value of contracts (Net of Advances) to be executed on
capital account and not provided for Rs.50.35 Lacs (Previous year
Rs.4.29 Lacs).
16 Company has not provided contingent liability of Rs. 3.96 Lacs
against Central Excise assessment for year 2007- 2008, and Liability
towards pending c forms have not been provided on account of
uncertainty.
17 Pakistan unit of the Company continues to be under the control of
Pakistan Government. It has not been possible to establish any
communication with the said unit so far. Therefore, statement of Assets
and Liabilities as at 30th June 1964 based on the last reports received
have been incorporated in the Balance sheet as pre devaluation rate of
rate of exchange.
Mar 31, 2011
A) The financial statements are prepared under the historical cost
convention, on an accrual basis, in conformity with the accounting
principles generally accepted in India and in accordance with the
accounting standards referred to in section 211 (3C) of the Companies
Act, 1956 ('the Act'). The Company follows mercantile system of
accounting and recognizes Income and Expenditure on an accrual basis
except those with significant uncertainties.
b) Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported balances of assets
and liabilities and disclosures relating to contingent liabilities at
the date of the financial statements and reported amounts of income and
expenses during the year. Actual results could differ from those
estimates.
c) The Accounting policies applied by the company are consistent with
those used in the previous year
3. REVENUE RECOGNITION:
Sales are recognized when goods leave from factory premises and are
recorded net of returns, trade discounts, rebates, sales tax & excise
duty where ever applicable.
4. EMPLOYEE BENEFITS
a) Short Term Employees Benefits:
All short term employee benefits such as salaries, wages, bonus, short
term compensated absences, awards, exgratia, performance pay, medical
benefits, which fall due within 12 months of the period in which the
employee renders the related service which entitles him to avail such
benefits and non accumulating compensated absences are recognized on an
undiscounted basis and charged to profit and loss account
b) Defined Benefit Plan
Gratuity:
The Company provides the gratuity benefit through annual contributions
to a fund managed by the Life Insurance Corporation of India (LIC).
Under this plan, the settlement obligation remains with the Company,
although the Life Insurance Corporation of India administers the plan
and determines the contribution premium on Projected Unit Credit
Method, which is required to be paid by the Company and is debited to
the profit and loss account on an accrual basis. Actuarial gains or
losses arising during the year are recognized in the profit and loss
account.
Leave encashment is provided for on the basis of an actuarial valuation
carried out by an Actuary at the end of each financial year and debited
to the profit and loss account.
Defined Contribution Plan
Company's contribution to the provident fund based on a percentage of
salary is made to Provident Fund Trust, which are administered by the
trustees.
5. Inventories
Inventories of Raw Material, Components, Material in Process, Finished
goods and traded goods are stated 'At Cost or Net Realizable value'
whichever is lower. Stores & Packing materials are stated 'At or below
cost'.
Cost of inventories comprises of cost of purchase, cost of conversion
and other cost incurred in bringing the inventory to their present
location and condition.
Company has used FIFO method for valuation. Finished goods are
inclusive of excise duty.
6. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation,
amortization and impairment loss if any. The company capitalizes direct
costs including taxes, duty, freight and incidental expenses
attributable to the acquisition and installation of fixed assets.
Capital work-in-progress is stated at cost.
Depreciation is provided using the written down value method in
accordance with the schedule XIV of the Companies Act, 1956. Fixed
assets individually costing upto Rs.5,000 are fully depreciated in the
year of acquisition. Depreciation on assets acquired or disposed off
during the year is provided on a pro-rata basis from/up to the date of
acquisition/disposal.
7. Impairment of Assets
The carrying value of assets is reviewed for impairment, when events or
changes in circumstances indicate that the carrying values may not be
recoverable. In addition, at each balance sheet date, the company
assesses whether there is any indication that an asset may be impaired.
If any such indication exists, the asset recoverable is estimated. An
impairment loss is recognized whenever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value
on an appropriate discount factor.
8. Investments
Investments that are readily realizable and intend to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Long term
investments are stated at cost less any diminution in their value,
which is other than temporary. Current assets are stated at lower of
cost and market value. Unquoted long term investments are valued at
lower of cost or latest available break up value.
9. Research and Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to Fixed Assets.
10. Foreign currency transaction
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are restated at
year-end rates. The exchange difference on restatement of monetary
assets and liabilities and realized gains and losses on foreign
exchange transactions other than those relating to fixed assets are
recognized in the profit and loss account. Exchange difference in
respect of liabilities incurred to acquire fixed assets is adjusted to
the carrying amount of such. Fixed assets
11. RIGHT ISSUE
The Company has utilized remaining balance amount of Rs. Nil (RY. Rs
10.82 lacs) out of the right issue proceeds.
12. Segment Reporting Policies
Identification of segment is based on the major manufacturing products.
13. Earning per share
Basic and diluted earnings per share are calculated by dividing the net
profit/ loss for the year by the weighted average number of equity
shares outstanding during the period.
14. Provisions
A provision is recognized when the company has a present obligation
resulting from past events and it is probable that an outflow of
resources will be required to settle the obligation for which a
reliable estimate can be made. Provisions are based on management's
best estimate of the amount required to settle the obligation at the
balance sheet date. Provisions are reviewed at each balance sheet date
and adjusted to reflect revision in estimates. The company has decided
to provide Bad and doubtful debts if debtors remain outstanding over
and above one years
15. Income Tax
A tax expense comprises current and deferred taxes. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with The Income Tax Act, 1961. Deferred Income Tax Reflects
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
The differed tax asset and deferred tax liability is calculated by
applying tax rate and tax laws that have been enacted or substantially
enacted at the balance sheet date.
Deferred taxes assets are recognized and carried forward for all
deductible timing differences only if there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
The deferred tax liability is arising due to timing difference on
depreciation charged where as deferred tax assets arising mainly on
account of Leave encashment & Gratuity.
16. Estimated value of contracts (Net of Advances) to be executed on
capital account and not provided for Rs. 4.29Lacs (Previous year
Rs.0.66 Lacs).
17. Company has not provided contingent liability of Rs 12.88 Lacs
against Sales Tax Assessment for year 2000-2001 and Rs. 3.96 Lacs
against Central Excise assessment for year 2007- 2008.
18. Pakistan unit of the Company continues to be under the control of
Pakistan Government. It has not been possible to establish any
communication with the said unit so far. Therefore, statement of Assets
and Liabilities as at 30th June 1964 based on the last reports received
have been incorporated in the Balance sheet as pre devaluation rate of
rate of exchange as per Schedule7.
21. Details of Licensed and Installed Capacity, Production, Stock and
Turnover.
25. The Company has not received information from vendors regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure relating to amounts unpaid as at the
year end together with interest paid/Payable under this act have not
been given.
26. Employee Benefits
With effect from 1st April 2007, the company has adopted revised
Accounting Standard 15 "Employee Benefits". Pursuant to the adoption,
no adjustment was required to be made to general reserve of revised As
-15 as the impact was insignificant.
Mar 31, 2010
A) The financial statements are prepared under the historical cost
convention, on an accrual basis, in conformity with the accounting
principles generally accepted in India and in accordance with the
accounting standards referred to in section 211 (3C) of the Companies
Act, 1956 (the Act). The Company follows mercantile system of
accounting and recognizes Income and Expenditure on an accrual basis
except those with significant uncertainties.
b) Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported balances of assets
and liabilities and disclosures relating to contingent liabilities at
the date of the financial statements and reported amounts of income and
expenses during the year. Actual results could differ from those
estimates.
c) The Accounting policies applied by the company are consistent with
those used in the previous year
3 REVENUE RECOGNITION:
Sales are recognized when goods leave from factory premises and are
recorded net of returns, trade discounts, rebates, sales tax & excise
duty where ever applicable.
4 EMPLOYEE BENEFITS
a) Short Term Employees Benefits:
All short term employee benefits such as salaries, wages, bonus, short
term compensated absences, awards, exgratia, performance pay, medical
benefits, which fall due within 12 months of the period in which the
employee renders the related service which entitles him to avail such
benefits and non accumulating compensated absences are recognized on an
undiscounted basis and charged to profit and loss account
b) Defined Benefit Plan Gratuity:
The Company provides the gratuity benefit through annual contributions
to a fund managed by the Life Insurance Corporation of India (LIC).
Under this plan, the settlement obligation remains with the Company,
although the Life Insurance Corporation of India administers the plan
and determines the contribution premium on Projected Unit Credit
Method, which is required to be paid by the Company and is debited to
the profit and loss account on an accrual basis. Actuarial gains or
losses arising during the year are recognized in the profit and loss
account.
Leave encashment is provided for on the basis of an actuarial valuation
carried out by an Actuary at the end of each financial year and debited
to the profit and loss account.
Defined Contribution Plan
Companys contribution to the provident fund based on a percentage of
salary is made to Provident Fund Trust, which are administered by the
trustees.
5 Inventories
Inventories of Raw Material, Components, Material in Process, Finished
goods and traded goods are stated At Cost or Net Realizable value
whichever is lower. Stores & Packing materials are stated At or below
cost.
Cost of inventories comprises of cost of purchase, cost of conversion
and other cost incurred in bringing the inventory to their present
location and condition.
Company has used FIFO method for valuation. Finished goods are
inclusive of excise duty.
6 Fixed Assets
Fixed assets are stated at cost less accumulated depreciation,
amortization and impairment loss if any. The company capitalizes direct
costs including taxes, duty, freight and incidental expenses
attributable to the acquisition and installation of fixed assets.
Capital work-in- progress is stated at cost.
Depreciation is provided using the written down value method in
accordance with the schedule XIV of the Companies Act, 1956. Fixed
assets individually costing upto Rs.5,000 are fully depreciated in the
year of acquisition. Depreciation on assets acquired or disposed off
during the year is provided on a pro-rata basis from/up to the date of
acquisition/disposal.
7 Impairment of Assets
The carrying value of assets is reviewed for impairment, when events or
changes in circumstances indicate that the carrying values may not be
recoverable. In addition, at each balance sheet date, the company
assesses whether there is any indication that an asset may be impaired.
If any such indication exists, the asset recoverable is estimated. An
impairment loss is recognized whenever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value
on an appropriate discount factor.
8 Investments
Investments that are readily realizable and intend to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Long term
investments are stated at cost less any diminution in their value,
which is other than temporary. Current assets are stated at lower of
cost and market value. Unquoted long term investments are valued at
lower of cost or latest available break up value.
9 Research and Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to Fixed Assets.
10 Foreign currency transaction
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are restated at
year-end rates. The exchange difference on restatement of monetary
assets and liabilities and realized gains and losses on foreign
exchange transactions other than those relating to fixed assets are
recognized in the profit and loss account. Exchange difference in
respect of liabilities incurred to acquire fixed assets is adjusted to
the carrying amount of such. Fixed assets
11 RIGHT ISSUE
The Company has utilized remaining balance amount of Rs. 10.82 lacs
(P.Y. Rs 97.81 lacs) out of the right issue proceeds.
12 Segment Reporting Policies
Identification of segment is based on the major manufacturing products.
Mar 31, 2003
1. ACCOUNTING CONVENTION:
The Company prepares its accounts under the historical cost convention
using the accrual method of accounting except for the items stated
below :
(a) Dividends are accounted on cash basis.
(b) Insurance claims are booked on the basis of liability as admitted
by the Insurance Company.
(c) Encashment of earned leave of the employees will be accounted for
as an when paid.
(d) Overdue interest from customers is accounted for on receipt basis.
2. REVENUE RECOGNITION:
Sales are recognised when goods are left from factory premises and are
recorded net of returns, trade discounts, rebates and sales tax but
includes excise duty where applicable.
3. STAFF BENEFITS :
Superannuation scheme and Deposit linked insurance scheme are managed
through L.I.C. The Company has created a Trust and has taken a Group
Gratuity Policy with the Life Insurance Corporation of India for future
payment of gratuity of retiring employees. The premium thereon has been
so adjusted as to cover the liability in respect of all employees at
the end of their anticipated service with the Company.
4. CURRENT ASSETS:
(a) Inventories :
Inventories of Raw Material, Components, Material in Process, Finished
goods and Traded goods are stated At Cost or Net Realiasable value
whichever is lower. Stores & Packing material are stated At or below
cost.
Cost of inventories comprise of all cost of purchase, cost of
conversion and other cost incurred in bringing the inventory to their
present location and condition.
Company has used FIFO cost formula for valuation. Finished goods are
inclusive of excise duty.
(b) Sale and Purchase bills discounted with banks remaining outstanding
at the Year-end have been included in Sundry Debtors and Sundry
Creditors respectively.
5. FIXED ASSETS :
Tangible assets are stated at cost less depreciation. Depreciation is
provided on written down value method in accordance with the Companies
Act, 1956.
6. INVESTMENTS :
Investments are stated as under :
Unquoted long term investment: Lower of cost or latest available break
up value.
7. RESEARCH & DEVELOPMENT :
Revenue expenditure on research and development is charged against the
profit of the year which it is incurred. Capital expenditure on
research and development is shown as an addition to Fixed Assets.
8. FOREIGN CURRENCY TRANSACTION :
(a) Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of the transaction.
(b) Foreign Exchange gains or losses arising out of transactions
settled during the year are charged to Profit & Loss Account.
(c) Monetary items denominated in a foreign currency and outstanding at
the Balance Sheet date are translated at year end rates and
gains/losses arising out of such transactions are charged to Profit and
Loss Account.
9. DEFFERED TAXES :
The deffered tax asset and deffered tax liability is calculated by
applying tax rate and tax laws that have been enacted or substantially
enacted by the balance sheet date.
The deffered tax liability is arrising due to timing difference on
depreciation charged whereas deffered tax assets arising mainly on
account of brought forward unabsorbed business loss, unabsorbed
depreciation and disallowance u/s 43B of Income tax act.
10. Estimated value of contracts (Net of Advances) to be executed on
capital account and not provided for Rs. 3.18 Lacs (Previous year Rs.
3.26 Lacs).