Mar 31, 2014
A) Basis of Accounting and Preparation of Financial Statements
The financial statements of the Company have been prepared under
historical cost convention to comply in all material aspects in
accordance with the generally accepted accounting principles in India,
and the relevant provisions of the Companies Act 1956. The Company
follows mercantile system of accounting and recognizes income and
expenditure on accrual basis and prepares its accounts on a going
concern basis. Accounting policies not specifically referred to herein
above is in consistent with generally accepted accounting practices.
b) Use of Estimates
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon managements'' best
knowledge of current events and actions.
c) Inventories
Inventories of raw material and finished goods are valued at cost or
net realizable value whichever is lower. The Weighted Average cost
method has been followed for the valuation of Inventories. Finished
goods and work in progress inventories include cost of conversion and
other costs incurred in bringing the inventories at their present
location or condition. The physical verification of inventories has
been followed by the management are generally reasonable and adequate
commensurate with the size of company and nature of its business. The
company has followed the exclusive method as specified in Accounting
Standard 2 "Valuation of Inventories", hence the purchase and sale has
been accounted at exclusive of vat.
d) Depreciation
Depreciation on depreciable fixed assets has been provided at the rates
and in the manner prescribed in schedule XIV to The Companies Act, 1956
under straight line method basis considering single shift working,
wherever applicable. Depreciation has been provided on the assets which
were put to use during the previous year. Depreciation on addition, if
any, to fixed assets made during the year has been provided on pro rata
basis.
e) Revenue Recognition
(a) Revenue is recognized when it can be reliably measured and it is
reasonable to expect ultimate collection. Sales of machineries and
diamonds have been accounted when significant risk & reward of
ownership has been transferred to buyer and net of value added tax.
(b) Revenue on transaction of rendering services is recognized under
the completion contract method Contract is regarded as completed when
no significant uncertainty exist regarding the amount of consideration
that will derived from rendering services.
f) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
comprises of capital costs and incidental / installation expenses
attributable to bringing the assets to working condition for it''s
intended use. The cost of fixed assets acquired during the year under
consideration have been excluded the recoverable duties / taxes.
g) Accounting for Employees Benefits
There is no provision has been made for employee benefit like leave
salary, gratuity, bonus, provident fund, state insurance etc nor the
firm has devised any defined scheme for the benefits of its employees.
The liability in respect of above will be provided for as and when the
liabilities are determined or legally arouse or finally settled.
h) The Company has followed the Accounting Standards 11 in respect of
Effect of Changes in Foreign Exchange Rates. According to AS-11, the
Company has translated all the transaction denominated in foreign
currency at the rate of exchange prevailing on the day of the
transaction occurred and the balance outstanding of creditors and
debtors denominated in foreign currency are translated at the exchange
rate ruling on the balance sheet date. Exchange difference arising on
account of foreign currency transactions are debited or/and credited to
Profit & Loss account
i) Accounting for Taxes on Income
(i) Deferred Tax: In accordance with the Accounting Standard 22 -
Accounting for Taxes
on Income, as specified in the Companies (Accounting Standard) Rules,
2006, the deferred tax for timing differences between the book and tax
profits for the year is accounted for by using the tax rates and laws
that have been enacted or substantively enacted as of the Balance Sheet
Date. Deferred tax assets arising from timing differences are
recognized to the extent there is virtual certainty that the assets can
be realized in future. Net outstanding balance in Deferred Tax account
is recognized as deferred tax liability/asset. The deferred tax account
is used solely for reversing timing difference as and when crystallized.
(ii). Current Taxation Provision for taxation has been made in
accordance with the income tax laws prevailing for the relevant
assessment years
j) Accounting for intangible assets The Company does not have any
intangible assets. Deferred revenue expenditure on account of fee for
increase in the Authorized capital and on account of installation of
gas connection are amortized over a period of 5 years.
Mar 31, 2013
A) Basis of Accounting and Preparation of Financial Statements
The financial statements are prepared to comply in all material aspects
with all the applicable accounting principles in India, the applicable
accounting standards notified U/s 211(3)(C) of the Companies Act 1956
and the relevant provisions of the Companies Act 1956. The Company
follows mercantile system of accounting and recognizes income and
expenditure on accrual basis and prepares its accounts on a going
concern basis. Accounting policies not specifically referred to herein
above is in consistent with generally accepted accounting practices.
b) Use of Estimates
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon managements'' best
knowledge of current events and actions.
c) Inventories
Inventories of raw material and finished goods are valued at cost or
net realizable value whichever is lower. The Weighted Average cost
method has been followed for the valuation of Inventories. Finished
goods and work in progress inventories include cost of conversion and
other costs incurred in bringing the inventories at their present
location or condition. The physical verification of inventories has
been followed by the management are generally reasonable and adequate
commensurate with the size of company and nature of its business. The
company has followed the exclusive method as specified in Accounting
Standard 2 "Valuation of Inventories", hence the purchase and sale
has been accounted at exclusive of vat.
d) Depreciation
Depreciation on depreciable fixed assets has been provided at the rates
and in the manner prescribed in schedule XIV to The Companies Act, 1956
under straight line method basis considering single shift working,
wherever applicable. Depreciation has been provided on the assets which
were put to use during the previous year. Depreciation on addition to
fixed assets made during the year has been provided on pro rata basis.
e) Revenue Recognition
(a) Revenue is recognized when it can be reliably measured and it is
reasonable to expect ultimate collection. Sales of machineries and
diamonds have been accounted when significant risk & reward of
ownership has been transferred to buyer and net of value added tax.
(b) Revenue on transaction of rendering services is recognized under
the completion contract method Contract is regarded as completed when
no significant uncertainty exist regarding the amount of consideration
that will derived from rendering services.
f) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
comprises of capital costs and incidental / installation expenses
attributable to bringing the assets to working condition for it''s
intended use. The cost of fixed assets acquired during the year under
consideration have been excluded the recoverable duties / taxes.
g) Accounting for Employees Benefits
There is no provision has been made for employee benefit like leave
salary, gratuity, bonus, provident fund, state insurance etc nor the
firm has devised any defined scheme for the benefits of its employees.
The liability in respect of above will be provided for as and when the
liabilities are determined or legally arouse or finally settled.
h) The Company has followed the Accounting Standards 11 in respect of
Effect of Changes in Foreign Exchange Rates. According to AS-11, the
Company has translated all the transaction denominated in foreign
currency at the rate of exchange prevailing on the day of the
transaction occurred and the balance outstanding of creditors and
debtors denominated in foreign currency are translated at the exchange
rate ruling on the balance sheet date. Exchange difference arising on
account of foreign currency transactions are debited or/and credited to
Profit & Loss account
i) Accounting for Taxes on Income
(i) Deferred Tax: In accordance with the Accounting Standard 22 -
Accounting for Taxes on Income, as specified in the Companies
(Accounting Standard) Rules, 2006, the deferred tax for timing
differences between the book and tax profits for the year is accounted
for by using the tax rates and laws that have been enacted or
substantively enacted as of the Balance Sheet Date. Deferred tax assets
arising from timing differences are recognized to the extent there is
virtual certainty that the assets can be realized in future. Net
outstanding balance in Deferred Tax account is recognized as deferred
tax liability/asset. The deferred tax account is used solely for
reversing timing difference as and when crystallized.
(ii). Current Taxation Provision for taxation has been made in
accordance with the income tax laws prevailing for the relevant
assessment years
j) Accounting for intangible assets The Company does not have any
intangible assets. Deferred revenue expenditure on account of fee for
increase in the Authorized capital and on account of installation of
gas connection are amortized over a period of 5 years.
Mar 31, 2012
A) Basis of Accounting and Preparation of Financial Statements
The financial statements are prepared to comply in all material aspects
with all the applicable accounting principles in India' the applicable
accounting standards notified U/s 211 (3)(C) of the Companies Act 1956
and the relevant provisions of the Companies Act 1956. The Company
follows mercantile system of accounting and recognizes income and
expenditure on accrual basis and prepares its accounts on a going
concern basis. Accounting policies not specifically referred to herein
above is in consistent with generally accepted accounting practices.
b) Use of Estimates
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon managementsà best
knowledge of current events and actions.
c) Inventories
Inventories of raw material and finished goods are valued at cost or
net realizable value whichever is lower. The Weighted Average cost
method has been followed for the valuation of Inventories. Finished
goods and work in progress inventories include cost of conversion and
other costs incurred in bringing the inventories at their present
location or condition. The physical verification of inventories has
been followed by the management are generally reasonable and adequate
commensurate with the size of company and nature of its business. The
company has followed the exclusive method as specified in Accounting
Standard 2 ÃValuation of InventoriesÃ' hence the purchase and sale has
been accounted at exclusive of vat.
d) Depreciation
Depreciation on depreciable fixed assets has been provided at the rates
and in the manner prescribed in schedule XIV to The Companies Act' 1956
under straight line method basis considering single shift working'
wherever applicable. Depreciation has been provided on the assets which
were put to use during the previous year. Depreciation on addition to
fixed assets made during the year has been provided on pro rata basis.
e) Revenue Recognition
(a) Revenue is recognized when it can be reliably measured and it is
reasonable to expect ultimate collection. Sales of machineries and
diamonds have been accounted when significant risk & reward of
ownership has been transferred to buyer and net of value added tax.
(b) Revenue on transaction of rendering services is recognized under
the completion contract method Contract is regarded as completed when
no significant uncertainty exist regarding the amount of consideration
that will derived from rendering services.
f) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
comprises of capital costs and incidental / installation expenses
attributable to bringing the assets to working condition for itÃs
intended use. The cost of fixed assets acquired during the year under
consideration have been excluded the recoverable duties / taxes.
g) Accounting for Employees Benefits
There is no provision has been made for employee benefit like leave
salary' gratuity' bonus' provident fund' state neither insurance etc
nor the firm has devised any defined scheme for the benefits of its
employees. The liability in respect of above will be provided for as
and when the liabilities are determined or legally arouse or finally
settled.
h) Accounting for Taxes on Income
(i) Deferred Tax: In accordance with the Accounting Standard 22 -
Accounting for Taxes on Income' as specified in the Companies
(Accounting Standard) Rules' 2006' the deferred tax for timing
differences between the book and tax profits for the year is accounted
for by using the tax rates and laws that have been enacted or
substantively enacted as of the Balance Sheet Date. Deferred tax assets
arising from timing differences are recognized to the extent there is
virtual certainty that the assets can be realized in future. Net
outstanding balance in Deferred Tax account is recognized as deferred
tax liability/asset. The deferred tax account is used solely for
reversing timing difference as and when crystallized.
(ii). Current Taxation Provision for taxation has been made in
accordance with the income tax laws prevailing for the relevant
assessment years
i) Accounting for intangible assets The Company does not have any
intangible assets. Deferred revenue expenditure on account of fee for
increase in the Authorized capital and on account of installation of
gas connection are amortized over a period of 5 years.
Mar 31, 2011
A) Basis of Preparation
The financial statements are prepared to comply in all material aspects
with all the applicable accounting principles in India, the applicable
accounting standards notified U/s 211 (3)(C) of the Companies Act 1956
and the relevant provisions of the Companies Act 1956. The Company
follows mercantile system of accounting and recognizes income and
expenditure on accrual basis and prepares its accounts on a going
concern basis.
b) Use of Estimates
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon managementsà best
knowledge of current events and actions.
c) Deferred revenue expenditure on account of fee for increase in the
Authorized capital and on account of installation of gas connection are
amortized over a period of 5 years.
d) Accounting policies not specifically referred to herein above is in
consistent with generally accepted accounting practices.
B. STATEMENT OF SIGNIFICANT ACCOUNTING STANDARDS: -
(i) Accounting Convention (AS-1): -
a) The financial statements have been prepared under Historical Cost
Convention on going Concern basis.
b) The Company generally follows mercantile system of accounting and
recognizes income and expenditure on accrual basis except specifically
stated.
(ii) Inventories (AS-2): -
Inventories of raw material and finished goods are valued at cost or
net realizable value whichever is lower. The Inventory of Finished
goods also includes the work in progress inventory of machineries. The
Weighted Average cost method has been followed for the valuation of
Inventories. Finished goods include cost of conversion and other costs
incurred in bringing the inventories at their present location or
condition. The physical verification of inventories has been followed
by the management are generally reasonable and adequate commensurate
with the size of company and nature of its business. The company has
followed the exclusive method as specified in Accounting Standard 2
ÃValuation of InventoriesÃ, hence the purchase and sale has been
accounted at exclusive of vat.
(iii) Cash Flow Statement (AS-3): -
Cash flow statement is prepared under Ãindirect methodà and the same is
annexed herewith. The Cash flow Statement is being prepared in
accordance with the format prescribed by Securities and Exchange Board
of India and as per accounting stanadard-3 as specified in the
Companies (Accounting Standard) Rules, 2006
(iv) Events occurring after the Balance Sheet date (AS-4): -
There were no significant events occurred after the Balance Sheet date,
which require adjustment in the figures as on the Balance Sheet date.
(v) Net profit or loss for the period, prior period items and changes
in accounting policies (AS-5): -
There was no Item relating to prior period which has been debits to
Profit and loss Account. Further there is no change in accounting
policies during the year.
(vi) Depreciation (AS-6): -
Depreciation on depreciable fixed assets has been provided at the rates
and in the manner prescribed in schedule XIV to The Companies Act, 1956
under straight line method basis considering single shift working,
wherever applicable. Depreciation has been provided on the assets which
were put to use during the previous year. Depreciation on addition to
fixed assets made during the year has been provided on pro rata basis.
(vii) Construction contracts (AS-7): -
This Accounting Standard is not applicable.
(viii) Research & Development (AS-8): -
This Accounting Standard is withdrawn.
(ix) Revenue Recognition (AS-9): -
(a) Revenue is recognized when it can be reliably measured and it is
reasonable to expect ultimate collection. Sales of machineries and
diamonds have been accounted when significant risk & reward of
ownership has been transferred to buyer and net of value added tax.
(b) Revenue on transaction of rendering services is recognized under
the completion contract method Contract is regarded as completed when
no significant uncertainty exist regarding the amount of consideration
that will derived from rendering services.
(x) Fixed Assets (AS-10): -
Fixed assets are stated at cost less accumulated depreciation. Cost
comprises of capital costs and incidental / installation expenses
attributable to bringing the assets to working condition for itÃs
intended use. The cost of fixed assets acquired during the year under
consideration have been excluded the recoverable duties / taxes.
(xi) Accounting for effects of changes in foreign exchange rates
(AS-11):- The Company has not entered into foreign currency
transactions during the year, hence the AS -11 is not applicable to the
Company.
(xii) Accounting for Government Grants (AS-12): -
The Company has not received any grants during the year, hence the AS
-12 is not applicable.
(xiii) Accounting for Investments (AS-13): -
The Company has not made any investment hence the AS -13 is not
applicable
(xiv) Accounting for amalgamations (AS-14): -
During the year there was no amalgamation.
(xv) Accounting for Employees Benefits (AS-15): -
There is no provision has been made for employee benefit like leave
salary, gratuity, bonus, provident fund, state insurance etc nor the
firm has devised any defined scheme for the benefits of its employees.
The liability in respect of above will be provided for as and when the
liabilities are determined or legally arouse or finally settled.
(xvi) Borrowing cost (AS-16): -
The Company does not hold any borrowed funds.
(xvii) Segment Reporting (AS-17): -
The Company operates in two business segments i.e. Manufacturing of
machineries & related services and Trading of diamonds. The Company is
operating only from a single geographical location. Reportable segment
as required by AS-17 has been annexed in the notes forming part of
schedule 15.
(xviii) Related party disclosure (AS-18): -
Disclosure of transactions with Related Parties, as required by
Accounting Standard 18 ÃRelated Party Disclosuresà has been set out in
a separate note forming part of this Schedule. Related parties as
defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representations made by key managerial
personnel and information available with the Company
(xix) Accounting for Leases (AS-19): -
The Company does not hold any Lease Rights.
(xx) Earnings per share (AS-20): -
Disclosure is made in the Profit & Loss Account as per the requirements
of the standard. For the purpose of calculation of EPS the net profit
as per profit and loss account is taken. The weighted number of shares
are considered for the purposed of calculation of EPS. The details have
been given by way of Notes.
(xxi) Consolidated financial statements (AS-21): -
The Company neither have ownership directly or indirectly of more than
ý of voting powers of an Enterprise nor control of the composition of
board of directors as specified in AS -21, hence the AS -21 is not
applicable to the company.
(xxii) Accounting for Taxes on Income (AS-22): -
(i) Deferred Tax: In accordance with the Accounting Standard 22 Ã
Accounting for Taxes on Income, as specified in the Companies
(Accounting Standard) Rules, 2006, the deferred tax for timing
differences between the book and tax profits for the year is accounted
for by using the tax rates and laws that have been enacted or
substantively enacted as of the Balance Sheet Date. Deferred tax assets
arising from timing differences are recognized to the extent there is
virtual certainty that the assets can be realized in future. Net
outstanding balance in Deferred Tax account is recognized as deferred
tax liability/asset. The deferred tax account is used solely for
reversing timing difference as and when crystallized.
ii). Current Taxation Provision for taxation has been made in
accordance with the income tax laws prevailing for the relevant
assessment years
(xxiii) Accounting for investment in associates in consolidated
financial statements (AS-23): -
The Company does not have any investment in Associate concern.
(xxiv) Discontinuing operations (AS-24): -
During the year the Company has not discontinued any of its operations
nor has planned any discontinuation.
(xxv) Interim financial reporting (AS-25): -
The Company is publishing the quarterly financial results as per clause
41 of the Listing Agreement with Bombay Stock Exchange.
(xxvi) Accounting for intangible assets (AS-26): -
The Company does not have any intangible assets. Deferred revenue
expenditure on account of fee for increase in the Authorized capital
and on account of installation of gas connection are amortized over a
period of 5 years.
(xxvii) Financial reporting of interest in joint venture (AS-27): -
The Company does not have any interest in Joint Venture.
(xxviii) Impairment of assets (AS-28): -
The carrying amounts of the Company's assets, other than inventories,
are reviewed at each balance sheet date to determine whether there is
any indication of impairment. If any such indication exists, the
assetÃs recoverable amount is estimated. An impairment loss is
recognized whenever the carrying amount of an asset exceeds it
recoverable amount. Impairment loss is charged to the profit and loss
account unless it reverses a previous revaluation, credited to
reserves, in which case it is charged to reserves.
(xxix) Provisions, contingent liabilities and contingent assets
(AS-29): -
Provision involving substantial degree of estimation in measurements is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
On the basis of the representation made by the management of the
Company, neither contingent liabilities are recognized nor disclosed in
the notes. Contingent assets are neither recognized nor disclosed in
the financial statements.
(xxx) Financial Instruments : Recognition, Measurement and presentation
(AS -30 and 31)
The Company does not have any contract that gives rise to a financial
asset and/or a financial liability. The Company has not entered into
derivative transaction during the year.
Mar 31, 2010
Following significant accounting policies has been followed in
preparation & presentation of financial statement.
a. Basis of Accounting:
Accrual basis of accounting has been followed in preparation &
presentation of financial statement.
b. Fixed Assets :
Fixed Assets are stated at cost of acquisition including
installation/incidental cost, wherever applicable. The fixed assets
acquired during the year under consideration have been accounted net of
vat in the books and depreciation has not been claimed on vat amount of
assets acquired during the year.
c. Depreciation:
Depreciation on depreciable fixed assets has been provided at the rates
and in the manner prescribed in schedule XIV to The Companies Act, 1956
under straight line method basis considering single shift working,
wherever applicable. Depreciation has been provided on the assets which
were put to use during the previous year. Depreciation on addition has
been provided on prorate basis.
d. Revenue Recognition:
Software development charges and service income has been recognised
based on the proportionate completion method of rending services.
Sales of machineries and diamonds has been accounted when significant
risk & reward of ownership has been transferred to buyer.
e. Investments:
Investments are stated at cost of acquisition including incidental cost
if any.
f. Inventory
Inventories has been are valued at cost or market value whichever is
lower. The Weighted Average cost method has been followed for the
valuation of raw material. The physical verification of inventories has
been followed by the management are generally reasonable and adequate
commensurate with the size of company and nature of its business. The
company has followed the exclusive method as specified in Accounting
Standard 2 "Valuation of Inventories" hence the purchase and sale has
been accounted at exclusive of vat.
g. As explained to us, there is no provision has been made for employee
benefit like leave salary, gratuity, bonus etc nor the firm has devised
any defined scheme for the benefits of its employees. The liability in
respect of above will be provide for as and when the liability is
determined or legally arouse or finally settled.