Mar 31, 2015
1. NATURE OF OPERATIONS:
Company is engaged in the business of Money lending, Commodity Trading
and investments in Equity Shares and Mutual Funds.
2. BASIS OF PREPARATION:
The financial statements have been prepared to comply in all material
respects with the Accounting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, and
the relevant provisions of the Companies Act,2013 and in accordance
with the generally accepted Accounting Principles in India under the
historical cost convention and on accrual basis, except in case of
assets for which provision for impairment is made and revaluation is
carried out. The accounting policies are consistent with those used in
the previous year.
3. SIGNIFICANT ACCOUNTING POLICIES:
a. 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 dining the
reporting period". Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from these estimates.
b. Tangible Fixed Assets:
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation, amortisation and impairment losses
if any. Cost comprises the purchase price and any attributable cost to
bring the asset to its working condition for its intended use.
Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
c. Depreciation on Tangible Fixed Assets:
Depreciation is provided considering the useful lives of respective
assets, as provided and prescribed under schedule II of the Companies
Act, 2013.
Fixed Assets costing rupees Five thousand or less are fully depreciated
in the year of acquisition.
d. Inventories:
Stock in Trade is stated at the lower of cost and net realizable value.
Cost is determined on FIFO basis.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs necessary to make the sale.
e. Prior period items:
All items of income/expenditure pertaining to prior period, which are
material, are accounted through "prior period adjustments" and the
others are shown under respective heads of account in the statement of
Profit and Loss.
f. Revenue Recognition :
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically the following basis is adopted:
Sale of Commodities:
Revenue is recognised when the significant risks and rewards of
ownership of the goods have passed to the buyer.
Interest:
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividends:
Dividend is recognised when the right to receive the same is
established.
g. Investments:
Investments that are readily realisable and intended to be held for not
more than a year from the date on which such investments are made, are
classified as current investments. All other investments are classified
as long-term investments. Current investments are carried 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 of each long term investment is made to recognize a
decline other than temporary in nature.
An investment in land or buildings, which is not interded to be
occupied substantially for use by, or in the operations of the company,
is treated as investment property. Investment properties are stated at
cost, net of accumulated depreciation and impairment losses, if any.
Depreciation on buildings is provided on written down value method, in
accordance with Schedule XIV to the Companies Act, 1956.
h. Retirement and Other Employee Benefits:
Gratuity liability is a defined benefit obligation and is provided for
or the basis of an actuarial valuation on projected unit credit method
made at the end of each financial year.
The Provident Fund is a defined contribution scheme and the
contributions are charged to the profit and loss account of the year
when the contributions to the respective funds are due There are no
other obligations other than the contribution payable to the respective
trusts.
Short term compensated absences are provided on an estimated basis.
Long term compensated absences are provided for based on actuaral
valuation on project unit credit method carried by an actuary as at the
end of the year.
Actuarial gains/losses are immedately taken to profit and loss account
and are not defened.
i. Borrowing Costs:
Borrowing costs that are directly attrbutable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalized.
Other Borrowing costs are recognized as an expense in the yea; in which
they are incurred.
j. Leases:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases.
Where the Company is the lessee
Operating lease payments are recognised as an expense in the profit and
loss account on straight-line basis over the lease term.
Where the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognized in the profit and loss account. Costs, including
depreciation are recognised as an expense in the profit and loss
account.
k. Earnings per Share (Basic and Diluted):
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
l. Taxes on Income:
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act 1961
enacted in India. 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 are recognised 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 realised. If the Company
has carry forward of unabsorbed depreciation and tax losses, deferred
tax assets are recognised only, if there is virtual certainty supported
by convincing evidence that such deferred tax assets can be realised
against future taxable profits.
m. Impairment:
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on intemal/extemal
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. After
impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
n. Provisions:
A provision is recognised when there is a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
o. Contingent Liabilities:
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.
p. Earnings per Share (Basic and Diluted):
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
q. Cash Flow Statement:
Cash flows are reported using indirect method. Cash and cash
equivalents in the cash flow statement comprise cash at bank,
cash/cheques in hand and Fixed Deposits with Banks.
r. Others:
Dividend as recommended by the Board of Directors is provided for in
the accounts pending shareholders approval.
Mar 31, 2011
A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the Notified accounting standards by Companies (Accounting
Standards) Rules, 2006 (as amended) and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared in
accordance with the generally accepted Accounting Principles in India
under the historical cost convention and on accrual basis, except in
case of assets for which provision for impairment is made and
revaluation is carried out. The accounting policies are consistent with
those used in the previous year.
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. Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from these estimates.
c) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation, amortisation and impairment losses
if any. Cost comprises the purchase price and any attributable cost to
bring the asset to its working condition for its intended use.
Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
d) Depreciation
i. Depreciation on Fixed Assets not related to leases is provided on
straight - line method, in accordance with Schedule XIV to the
Companies Act, 1956.
ii. The Assets given on lease are written of during the primary lease
period taking the month as a unit.
iii. Fixed Assets costing rupees Five thousand or less are fully
depreciated in the year of acquisition.
e) Prior period items
All items of income/expenditure pertaining to prior period, which are
material, are accounted through "prior period adjustments" and the
others are shown under respective heads of account in the Profit and
Loss Account.
f) Contingent Liabilities
The contingent liabilities are indicated by way of a note and will be
provided/paid on crystalisation.
g) Impairment
i. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value at the weighted average cost of
capital. After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.
ii. Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
h) Investments
Investments that are readily realisable 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. Current
investments are carried 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 of each long term
investment is made to recognize a decline other than temporary in
nature.
i) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically the following basis is adopted:
i. Interest:
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
ii. Dividends:
Dividend is recognised as and when the payment is received.
j) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalized.
Other Borrowing costs are recognized as an expense in the year in which
they are incurred.
k) Retirement and Other Employee Benefits
i. Gratuity liability is a defined benefit obligation and is provided for
on the basis of an actuarial valuation on projected unit credit method
made at the end of each financial year.
ii. The Provident Fund is a defined contribution scheme and the
contributions are charged to the profit and loss account of the year
when the contributions to the respective funds are due. There are no
other obligations other than the contribution payable to the respective
trusts.
iii. Short term compensated absences are provided on an estimated
basis. Long term compensated absences are provided for based on
actuarial valuation on project unit credit method carried by an actuary
as at the end of the year.
iv. Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
l) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases.
Where the Company is the lessee
Operating lease payments are recognised as an expense in the proft and
loss account on straight-line basis over the lease term.
Where the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognized in the profit and loss account. Costs, including
depreciation are recognised as an expense in the profit and loss
account.
m) Taxes on Income
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act 1961
enacted in India. 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 are recognised 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 realised. If the Company
has carry forward of unabsorbed depreciation and tax losses, deferred
tax assets are recognised only, if there is virtual certainty supported
by convincing evidence that such deferred tax assets can be realised
against future taxable profits.
n) Provisions
A provision is recognised when there is a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
o) Earnings per Share (Basic and Diluted)
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
p) Cash Flow Statement
Cash flows are reported using indirect method. Cash and cash equivalents
in the cash flow statement comprise cash at bank, cash/cheques in hand
and Fixed Deposits with Banks.
q) Others
Dividend as recommended by the board of directors is provided for in
the accounts pending shareholders approval.
Mar 31, 2008
A) Financial Statements are based on historical costs.
b) The preparation of financial statements requires the management of
the Company to make certain estimates and assumptions that effect the
reported balances of assets and liabilities and disclosures relating to
the contingent liabilities as at the date of the financial statements
and reported amounts of income and expenditure during the year. Example
of such estimates includes provision for doubtful debts, employee
retirement benefits and provision for taxes etc,. Any revision to such
estimate is recognised prospectively in the year in. which they are
revised.
c) Fixed Assets are stated at cost net of depreciation provided.
d) Long Term Investments are carried at cost. Provision for diminution,
if any, in the opinion of the Board, in the value of each long-term
investment is made to recognise a decline, other than of a temporary
nature.
e) Stock in trade is valued at lower of cost or realisable value.
f) The following are accounted for on receipt basis:
i) Additional Finance Charges on over dues.
ii) Dividend Income.
g) Employee benefits:
i) Short term benefits are recognised as an expense at the undiscounted
amount in the Profit and Loss of the year in which the related service
is rendered.
ii) Post employment and other long term employee benefits are
recognised as an expense in the Pofit and Loss Account for the year in
which the employee has rendered service. The expense is recognised at
the present value of the amount payable determined on the basis of
actuarial valuation. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to Profit and Loss
Account.
h) Depreciation on Fixed Assets is provided as follows:
i) Depreciation on Plant & Machinery not related to leases is provided
on straight-line method, in accordance with schedule xiv to the
Companies Act, 1956.
ii) The Assets given on lease are written of during the primary lease
period taking the month as a unit.
i) Dividend as recommended by the Board of Directors is provided for in
the accounts pending shareholders. approval.
j) Deferred tax asset and liability is calculated by applying the tax
rate and tax laws that have been enacted or substantially enacted by
the balance sheet date. Deferred tax assets are recognised and carried
forward only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax asset can be realised.
Mar 31, 2005
A) Financial Statements are based on historical costs.
b) Fixed Assets are stated at cost net of depreciation provided.
c) Long Term Investments are carried at cost. Provision for diminution,
if any, in the opinion of the Board, in the value of each long term
investment is made to recognise a decline, other than of a temporary
nature.
d) Stock in trade is valued at lower of cost or realisable value.
e) The following are accounted for on receipt basis:
i) Additional Finance Charges on Overdues.
ii) Dividend Income.
0 Provision for Earned Leave is made for value of unutilised leave due
to employees at the end of the year.
g) Provident Fund is administered through Regional Provident Fund
Commissioner. Superannuation and group gratuity schemes are
administered through policies taken from Life Insurance Corporation of
India. Other retirement benefits are provided for on an estimated
basis. All outgoings are charged to revenue.
h) Depreciation on Fixed Assets is provided as follows:
i) Depreciation on Plant & Machinery not related to leases is provided
on straight line method, in accordance with schedule XIV to the
Companies Act, 1956.
ii) On written down value method on the other assets (excluding the
assets given on lease on or after 1.4.1991),in accordance with Schedule
XIV to the Companies Act, 1956 read with circular No. 1/86 dated
21.5.1986 issued by the Department of Company Affairs, Government of
India.
iii) The Assets given on lease on or after 1.4.1991 are written off
during the primary lease period taking the month as a unit.
i) The Current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax
assets and liabilities are recognised for future result between profit
offered for income tax and the profit as per the financial statements.
Deferred tax assets and liabilities are measured as per the tax rates
and laws that have been enacted or substantially enacted by the balance
sheet date. However, deferred tax assets are recognised and carried
forward only to the extent that there is a reasonable certainity that
sufficient future taxable income will be available against which such
deferred tax asset can be realised.
Mar 31, 2000
A) Financial Statements are based on historical costs.
b) Fixed Assets are stated at cost net of depreciation provided.
c) The Investments are stated at cost.
d) Hire Purchase income is accounted taking month as a unit.
e) Lease Rentals credited to Profit & Loss Account are net of/including
Lease Equalisation Charge as recommended by the Institute of Chartered
Accountants of India in its Guidance Note on "Accounting for Leases".
f) The following are accounted for on receipt basis:
i) Service Charges on Hire Purchase and Lease transactions.
ii) Additional Finance Charges on Overdues.
iii) Dividend Income.
g) Provision for Earned Leave is made for value of unutilised leave due
to employees at the end of the year.
h) Provident Fund is administered through Regional Provident Fund
Commissioner. Superannuation and group gratuity schemes are
administered through policies taken from Life Insurance Corporation of
India. Other retirement benefits are provided for on an estimated
basis. All outgoings are charged to revenue.
i) Stock on Hire is stated at agreement prices reduced by the
Instalments which are fallen due.
j) Moulds developed/Purchased are treated as inventory and the Company
charges them off over a period of three years in the case of imported
moulds and two years in the case of indigenous moulds. Moulds
capitalised upto March 31, 1989 are depreciated as per the Provisions
of the Companies Act, 1956.
k) Depreciation on Fixed Assets is provided as follows:
i) Depreciation on Plant & Machinery not related to leases is provided
on straight line method, in accordance with schedule XIV to the
Companies Act, 1956.
ii) On written down value method on the other assets (excluding the
assets given on lease on or after 1.4.1991),in accordance with Schedule
XIV to the Companies Act, 1956 read with circular No. 1/86 dated
21.5.1986 issued by the Department of Company Affairs, Government of
India.
iii) The Assets given on lease on or after 1.4.1991 are written off
during the primary lease period taking the month as a unit.
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