Mar 31, 2015
A) Basis of Accounting:
i) Financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
ii) The Company adopts the accrual concept in the preparation of
accounts unless otherwise stated.
b) Use of Estimates:
The presentation of financial statements requires 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. Difference
between the actual result and estimates are recognized in the period in
which the results are known/ materialized.
c) Fixed Assets
Fixed Assets are stated at cost of acquisition less depreciation and
impairment of asset. The Company Capitalizes all costs relating to
acquisitions and installations of fixed assets till the date of
Commissioning and starting of commercial production.
d) Depreciation:
Depreciation on fixed assets is being provided on straight Line Method
at the method prescribed under Schedule II of the Companies Act, 2013.
Till 31st March 2014, the Depreciation was provided on straight Line
Method at the rates and method prescribed under Schedule XIV of the
Companies Act, 1956.
e) Inventories:
Inventories of Commodity Arbitrage is valued at Cost.
Inventories of trading items of chemicals and API, is valued at cost
and market value whichever is lower.
f) Revenue Recognition:
I. The revenue is recognized as per contract note of sale of Arbitrage,
in case of sale of services on completion of Job and in case of sale of
trading, on raising of invoice and transfer of material to the party.
II. Other income is recognized on accrual basis.
III. In conformity with generally accepted accounting principles,
Income from Growth FMP Investments are recognized on redemption.
IV Dividend is recognized when the right to receive payment is
established by the Balance Sheet date.
g) Sales:
Sale comprises of the trading in Commodities Arbitrage and trading in
chemicals and API.
h) Investments:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of long term investments.
On disposal of an investment, the difference between the carrying
amount and the net disposal proceeds is charged to the statement of
profit and loss.
i) Foreign Currency Transaction:
The foreign currency transaction involving foreign exchange on revenue
accounts are accounted at the exchange rates prevailing on the date of
transaction. Foreign currency remained unsettled at the year-end are
translated at the year-end rate and the difference is charged to profit
& loss account.
j) Retirement Benefit Scheme:
Employer's Contribution to P.F. has been charged to P & L A/c. and
deposited with concerned authority.
Gratuity is accounted for on estimate basis and charged to P & L
account on accrual basis. However as per AS-15 issued by Institute of
Chartered Accountant of India, Retirement benefit to be provided on the
basis of actuarial valuation but the same is not implemented by the
company.
k) Borrowing Cost:
Borrowing cost incurred in relation to the acquisition, construction of
assets are capitalized as the part of the cost of such assets up to the
date when such assets are ready for intended use. Other borrowings cost
are charged as an expense in the year in which these are incurred.
l) Taxes on Income:
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India. The tax
rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date. Current income
tax relating to items recognized directly in equity is recognized in
equity and not in the statement of profit and loss.
Deferred income taxes 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. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
and deferred tax liabilities are offset, if a legally enforceable right
exists to set-off current tax assets against current tax liabilities
and the deferred tax assets and the deferred tax liabilities related to
the taxes on income levied by same governing taxation laws. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognized only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the Company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961.
m) Impairment of Assets:
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged for when
an assets is identified as impaired. The impairment loss recognized in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
n) PROVISIONS, CONTINGENT LIABILITIES and CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
o) Contingent Liability :
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 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
an 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. The Details are as under:
i) Sales Tax Liability of Rs. 1,01,13,369 for the year 2008-09 (P.Y.
Rs.1,01,13,369) against which appeal is pending
ii) Income Tax Liability for A.Y. 2009-10 Rs.78,60,520/- (P.Y.
78,60,520/-) Against which appeal is pending.
iii) Income Tax Liability for A.Y. 2008-09 Rs.7,69,746/- (P.Y.
7,69,746/-) Against which appeal is pending.
iv) Income Tax Liability for A.Y. 2009-10 Rs.1,65,808/- (P.Y.
1,65,808/-) Against which appeal is pending.
v) Income Tax Liability for A.Y 2012-13 Rs...9,11,22,060/- against
which Appeal is pending.
p) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. Nil (P.Y. Nil).
q) Auditors remuneration
Audit Fees 1,50,000 (1,00,000)
Tax Audit Fees 50,000 (65,000)
Other matters 2,00,000 (1,60,000)
Service Tax 49,440 ( 40,170)
4,49,440 (3,65,170)
r) VALUE OF IMPORTS ON CIF BASIS In Rs.
Trading Material 22,69,740.00 ( 19,89,220.00)
s) Expenditure in foreign Currency In Rs.
Commission 0.00 (0.00)
Foreign Traveling 0.00 (14,75,850.00)
t) Earning in foreign currency
(Rs in lacs)
F.O.B Value of exports 0.00 (0.00)
u) Sundry Debtors, Sundry Creditors & advances are subject to
confirmation by the respective parties. Necessary Adjustments in
account will be made in the year in which discrepancy, if any, may be
noticed. In case of payment receivable from NSEL, an amount of
Rs.,1,12,69,300/- (P.Y. Rs.4,50,77,202/-) has been written off during
the year. The Balance amount shown as receivable in the Balance Sheet,
from NSEL, in the opinion of management is recoverable.
v) Sundry Loan & Advances and other assets are, in the opinion of
management stated at the amount realizable in the ordinary course of
business and provision for all known and determined liabilities are
adequate and not in excess of the amounts reasonably required.
w) Earnings per Share.
Net Profit available for equity share holders Rs. (-)3,59,327
Weighted Average No. equity Shares 80,00,000
Basic & Diluted Earning per Share (Rs.) (-)0.04
( Equity Share of face value of Rs. 10 each)
x) Related Parties Disclosures:
List of related parties with whom transaction have been taken place and
Relationships:
Name of the related party Relationship
Sandeep Seth ) Key Management Personnel
Jaideep Seth ) Director
Anisha Seth ) Director
Transactions during the year with related parties:
Expenditure
Payment to and provisions
Key Management Personnel
Directors Remuneration Rs. 20,33,133 (20,73,436)
Rent Rs. 24,00,000 (24,00,000)
Director Directors Remuneration Rs.12,00,000 (4,83,500)
y) Previous year figures have been regrouped/ reclassified wherever
necessary.
z) Figures in to bracket pertains to previous year.
Mar 31, 2014
A) Basis of Accounting:
i) Financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
ii) The Company adopts the accrual concept in the preparation of
accounts unless otherwise stated.
b) Use of Estimates:
The presentation of financial statements requires 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. Difference
between the actual result and estimates are recognized in the period in
which the results are known/ materialized.
c) Fixed Assets
Fixed Assets are stated at cost of acquisition less depreciation and
impairment of asset. The Company Capitalizes all costs relating to
acquisitions and installations of fixed assets till the date of
Commissioning and starting of commercial production.
d) Depreciation:
Depreciation on fixed assets is being provided on straight Line Method
at the rates prescribed under Schedule XIV of the Companies Act, 1956.
e) Inventories:
Inventories of Commodity Arbitrage is valued at Cost.
Inventories of trading items of chemicals and API, is valued at cost
and market value whichever is lower.
f) Revenue Recognition:
I. The revenue is recognized as per contract note of sale of Arbitrage,
in case of sale of services on completion of Job and in case of sale of
trading, on raising of invoice and transfer of material to the party.
II. Other income is recognized on accrual basis.
III. In conformity with generally accepted accounting principles,
Income from Growth FMP Investments are recognized on redemption.
IV. Dividend is recognized when the right to receive payment is
established by the Balance Sheet date.
g) Sales:
Sale comprises of the trading in Commodities Arbitrage and trading in
chemicals and API.
h) Investments:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of long term investments.
On disposal of an investment, the difference between the carrying
amount and the net disposal proceeds is charged to the statement of
profit and loss.
i) Foreign Currency Transaction:
The foreign currency transaction involving foreign exchange on revenue
accounts are accounted at the exchange rates prevailing on the date of
transaction. Foreign currency remained unsettled at the year-end are
translated at the year-end rate and the difference is charged to profit
& loss account. However there is no such transaction during the year.
j) Retirement Benefit Scheme:
Employer''s Contribution to P.F. has been charged to P & L A/c. and
deposited with concerned authority.
Gratuity is accounted for on estimate basis and charged to P & L
account on accrual basis. However as per AS-15 issued by Institute of
Chartered Accountant of India, Retirement benefit to be provided on the
basis of actuarial valuation but the same is not implemented by the
company.
k) Borrowing Cost:
Borrowing cost incurred in relation to the acquisition, construction of
assets are capitalized as the part of the cost of such assets up to the
date when such assets are ready for intended use. Other borrowings cost
are charged as an expense in the year in which these are incurred.
l) Taxes on Income:
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India. The tax
rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date. Current income
tax relating to items recognized directly in equity is recognized in
equity and not in the statement of profit and loss.
Deferred income taxes 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. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
and deferred tax liabilities are offset, if a legally enforceable right
exists to set-off current tax assets against current tax liabilities
and the deferred tax assets and the deferred tax liabilities related to
the taxes on income levied by same governing taxation laws. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognized only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the Company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961.
m) Impairment of Assets:
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged for when
an assets is identified as impaired. The impairment loss recognized in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
n) PROVISIONS, CONTINGENT LIABILITIES and CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
o) Contingent Liability :
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 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
an 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. The Details are as under:
i) Sales Tax Liability of Rs. 1,01,13,369 for the year 2008-09 (P.Y.
Rs.1,01,13,369) against which appeal is pending
ii) Income Tax Liability for A.Y. 2009-10 Rs.78,60,520/- (P.Y.
78,60,520/-) Against which appeal is pending.
iii) Income Tax Liability for A.Y. 2008-09 Rs.7,69,746/- (P.Y.
7,69,746/-) Against which appeal is pending.
iv) Income Tax Liability for A.Y. 2009-10 Rs.1,65,808/- (P.Y.
1,65,808/-) Against which appeal is pending.
Mar 31, 2013
A) Basis of Accounting:
i) Financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
ii) The Company adopts the accrual concept in the preparation of
accounts unless otherwise stated.
b) Use of Estimates:
The presentation of financial statements requires 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. Difference
between the actual result and estimates are recognized in the period in
which the results are known/ materialized.
c) Fixed Assets
Fixed Assets are stated at cost of acquisition less depreciation and
impairment of asset. The Company Capitalizes all costs relating to
acquisitions and installations of fixed assets till the date of
Commissioning and starting of commercial production.
d) Depreciation: ''
Depreciation on fixed assets is being provided on straight Line Method
at the rates prescribed under Schedule XIV of the Companies Act, 1956.
e) Inventories:
Inventories of Commodity Arbitrage is valued at Cost.
f) Revenue Recognition:
I. The revenue is recognized as per contract note of sale of Arbitrage
and in case of sale of services on completion of Job.
II. Other income is recognized on accrual basis.
III. In conformity with generally accepted accounting principles,
Income from Growth FMP Investments are recggnized on redemption.
g) Sales: »
Sale comprises of the trading in Commodities Arbitrage.
h) Investments:
Current Investments are valued at cost or market value whichever is
lower.
Long-term investments are valued at cost. However provision for
diminution is made, if the same is permanent in nature.
i) Foreign Currency Transaction:
The foreign currency transaction involving foreign exchange on revenue
accounts are accounted at the exchange rates prevailing on the date of
transaction. Foreign currency remained unsettled at the year-end are
translated at the year-end rate and the difference is charged to profit
& loss account. However there is no such transaction during the year.
j) Retirement Benefit Scheme:
Employer''s Contribution to P.F has been charged to P & L A/c. and
deposited with concerned authority. Gratuity is accounted for on
estimate basis and charged to P & L account on accrual basis. However
as per
AS-15 issued by Institute of Chartered Accountant of India, Retirement
benefit to be provided on the basis of actuarial valuation but the same
is not implemented by the company.
k) Borrowing Cost:
Borrowing cost incurred in relation to the acquisition, construction of
assets are capitalized as the part of the cost of such assets up to the
date when such assets are ready for intended use. Other borrowings cost
are charged as an expense in the year in which these are incurred.
1) Taxes on Income:
Current tax is determined* as the amount of tax payable in respect of
taxable income for the financial year ending 31st March, Deferred tax
is recognized, subject to consideration of prudence in respect of
deferred tax assets, on timing difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more periods.
m) Impairment of Assets:
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged for when
an assets is identified as impaired. The impairment loss recognized in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
n) PROVISIONS, CONTINGENT LIABILITIES and CONTINGENT ASSETS /
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2012
A) Basis of Accounting:
i) Financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956. ii) The
Company adopts the accrual concept in the preparation of accounts
unless otherwise stated.
b) Use of Estimates:
The presentation of financial statements requires estimates and
assumptions to be made that affect the re- ported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual result and estimates are recognized in the period in
which the results are known/ materialized.
c) Fixed Assets
Fixed Assets are stated at cost of acquisition less depreciation and
impairment of asset. The Company Capi- talizes all costs relating to
acquisitions and installations of fixed assets till the date of
Commissioning and starting of commercial production.
d) Depreciation:
Depreciation on fixed assets is being provided on straight Line Method
at the rates prescribed under Sched- ule XIV of the Companies Act,
1956.
e) Inventories:
Components are valued at cost. Raw Materials, Consumable and Packing
materials are valued at lower of cost and net realizable value at first
in first out basis. Semi Finished goods are valued at cost of materials
and labour together with relevant factory overhead. Finished goods are
valued at the lower of cost and net realiz- able value; cost includes
material cost, direct labour and allocable overheads.
f) Revenue Recognition:
I. The revenue is recognized on dispatch of material to customers or
on completion of Job.
II. Other income is recognized on accrual basis.
g) Sales:
Sale comprises amounts invoiced for goods sold net of excise duty,
sales tax, returns and rebates.
h) Excise Duty:
Liability of Excise duty on finished goods accounted as and when they
are cleared from the factory premises.
i) Modvat Benefit:
Modvat benefit is accounted on accrual basis on purchase of materials
and appropriated against pay- ments of excise duty on clearance of the
finished goods.
j) Investments:
Current Investments are valued at cost or market value whichever is
lower.
Long-term investments are valued at cost. However provision for
diminution is made, if the same is permanent in nature.
k) Foreign Currency Transaction:
The foreign currency transaction involving foreign exchange on revenue
accounts are accounted at the ex- change rates prevailing on the date
of transaction. Foreign currency remained unsettled at the year-end are
translated at die year-end rate and the difference is charged to profit
& loss account.
I) Retirement Benefit Scheme:
Employer s Contribution to P.F. has been changed to P & L A/c. and
deposited with concerned authority.
Gratuity is accounted for on estimate basis and charged to P & L
account on accrual basis. However as per AS-15 issued by Institute of
Chartered Accountant of India, Retirement benefit to be provided on the
basis of actuarial valuation but the same is not implemented by the
company.
m) Borrowing Cost:
Borrowing cost incurred in relation to the acquisition, construction of
assets are capitalized as the part of the cost of such assets up to the
date when such assets are ready for intended use. Other borrowings cost
are charged as an expense in the year in which these are incurred.
n) Taxes on income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the financial year ending 31st March, Deferred tax
is recognized, subject to consideration of prudence in respect of
deferred tax assets, on timing difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more periods.
o) Impairment of Assets:
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impair- ment loss is charged for when
an assets is identified as impaired. The impairment loss recognized in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
p) PROVISIONS, CONTINGENT LIABILITIES and CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2010
A) Basis of Accounting:
i) Financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956. ii) The
Company adopts the accrual concept in the preparation of accounts
unless otherwise stated.
b) Use of Estimates:
The presentation of financial statements requires 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. Difference
between the actual result and estimates are recognized in the period in
which the results are known/ materialized.
c) Fixed Assets
Fixed Assets are stated at cost of acquisition less depreciation and
impairment of asset. The Company Capitalizes all costs relating to
acquisitions and installations of fixed assets till the date of
Commissioning and starting of commercial production.
d) Depreciation:
Depreciation on fixed assets is being provided on straight Line Method
at the rates prescribed under Schedule XIV of the Companies Act, 1956.
e) Inventories:
Components are valued at cost. Raw Materials, Consumable and Packing
materials are valued at lower of cost and net realizable value at first
in first out basis. Semi Finished goods are valued at cost of materials
and labour together with relevant factory overhead. Finished goods are
valued at the lower of cost and net realizable value; cost includes
material cost, direct labour and allocable overheads.
f) Revenue Recognition:
I, The revenue is recognized on dispatch of material to customers or on
completion of Job.
II. Other income is recognized on accrual basis.
g) Sales:
Sale comprises amounts invoiced for goods sold net of excise duty,
sales tax, returns and rebates.
h) Excise Duty:
Liability of Excise duty on finished goods accounted as and when they
are cleared from the factory premises. No provision is made in the
accounts for goods manufactured and lying in factory premises. However
the effect of the same in Profit & Loss account is Nil.
i) Modvat Benefit:
Modvat benefit is accounted on accrual basis on purchase of materials
and appropriated against payments of excise duty on clearance of the
finished goods.
j) Investments:
Current Investments are valued at cost or market value whichever is
lower. Long-term investments are valued at cost. However provision for
diminution is made, if the same is permanent in nature.
k) Foreign Currency Transaction:
The foreign currency transaction involving foreign exchange on revenue
accounts are accounted at the exchange rates prevailing on the date of
transaction. Foreign currency remained unsettled at the year-end are
translated at the year-end rate and the difference is charged to profit
& loss account.
I) Retirement Benefit Scheme:
Employers Contribution to P.F. has been charged to P & L A/c. and
deposited with concerned authority.
Gratuity is accounted for on estimate basis and charged to P & L
account on accrual basis. However as per AS- 15 issued by Institute of
Chartered Accountant of India, Retirement benefit to be provided on the
basis of actuarial valuation but the same is not implemented by the
company. m) Borrowing Cost:
Borrowing cost incurred in relation to the acquisition, construction of
assets are capitalized as the part of the cost of such assets up to the
date when such assets are ready for intended use. Other borrowings
cost,are charged as an expense in the year in which these are incurred.
n) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the financial year ending 31st March, Deferred tax
is recognized, subject to consideration of prudence in respect of
deferred tax assets, on timing difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more periods.
o) Export benefits :-
Duty free imports of raw materials under advance license for import and
export policy are matched with the exports made against the said
licenses and the net benefit / obligation has been accounted by making
suitable adjustments in raw material consumption. .
p) Impairment of Assets:
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged for when
an assets is identified as impaired. The impairment loss recognized in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
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