Mar 31, 2014
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These financial statements have been prepared on the accrual basis of
accounting, under the historical cost convention, in accordance with
the Generally Accepted Accounting Principles in India (Indian GAAP) to
comply with the Accounting Standards notified under the Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956.
2.2 USE OF ESTIMATES:
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the Financial Statements are prudent and reasonable. Future results
could differ due to these estimates. Difference between the actual
results and estimates are recognized in the period in which the results
are known and materialized.
2.3 FIXED ASSETS:
Fixed assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price less creditable duties, taxes and levies,
and any directly attributable cost of bringing the asset to its working
condition for the intended use. However there are no fixed assets.
2.4 PROVISION FOR RETIREMENT BENEFITS:
Provision for Retirement benefits/leave Encashment is accounted for as
per rules of the Company.
2.5 EARNING PER SHARE:
The earning considered in ascertaining the Company"s Earning per Share
comprise Net Profit after tax. The number of shares (nominal value of
Rs.10/-) used in computing Basic Earnings per share is weighted average
number of shares outstanding during the year.
2.6 ACCOUNTING FOR TAXES ON INCOME:
a. Current Tax is determined as amount of tax payable in respect of
taxable income for the year based on applicable tax rates and law.
b. Deferred Tax is recognized, subject to the consideration of
prudence, on timing differences, being difference between taxable and
accounting income/expenditure that originate in one period and are
capable of reversal in one or more subsequent period(s).Deferred tax
assets are not recognized unless there is virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets will be realized.
2.7 PROVISIONS AND CONTIGENT LIABLITIES:
a. Provisions are recognized when the Company has a legal and a
constructive obligation as a result of a past event, for which it is
probable that a future outflow will be required and a reliable estimate
can be made on the amount of the obligation.
b. Contingent Liabilities are disclosed when the Company has a
possible obligation or a present obligation and it is probable that a
cash outflow will not be required to settle the obligation.
Mar 31, 2010
1.1. Method of Accounting :
The financial statements have been prepared on the historical cost
convention and in accordance with mandatory accounting standards.
1.2. Revenue Recognition :
Sales are recognized on the basis of dispatches to the customers. Sales
dose not includes State or Central Sales Tax.
1.3. Fixed Assets :
Fixed assets have been stated at the cost less accumulated depreciation
Cost comprises the purchase price and other attributable expenses.
Depreciation is provided on straight line method in accordance with the
rate prescribed under schedule XIV of the companies Act 1956, on pro-
rata basis.
1.4. Inventories :
Finished goods are valued at cost or net realizable value whichever is
lower.
1.5. Miscellaneous Expenditure :
Preliminary expenses are being written off @10% from the year of
commercial production.
1.6. Retirement Benefit :
Employees Provident Fund Act and Employees State Insurance Act are not
applicable to the company. No provision has been made for leave
encashment and Gratuity payable on retirement.
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