Mar 31, 2015
Mar 31, 2014
A) Terms / Rights attached to equity shares.
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.
In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distributions will be proportion to the number of equity shares held by shareholder.
Mar 31, 2012
1.1 BASIS OF ACCOUNTING
The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP) in compliance with the provisions of Companies Act, 1956 and the Accounting Standards as specified in the Companies (Accounting Standard) Rules 2006 notified by the Central Government of India.
The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.
1.2 REVENUE RECOGNITION
Revenue is recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery.
(i) Revenue from sale of shares is recognised when the significant risks and rewards of ownership of shares have passed to the buyer. Sales are recorded net off Securities Transaction Tax.
(ii) Interest income is recognized on time proportion basis taking into account the amount outstanding and applicable interest rates.
(iii) Other items of income are accounted as and when the right to receive arises.
1.3 EMPLOYEE BENEFITS
Defined Contribution Plan:
Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the period when the contributions to the respective funds are due.
Defined Benefit Plan:
Gratuity Liability for eligible employees are defined benefit obligation and are provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial period. Obligation is measured at the present value of estimated future cash flows using discounted rate that is determined by reference to market yields at the Balance Sheet date on Government Securities where the currency and terms of the Government Securities are consistent with the currency and estimated terms of the defined benefit obligation.
The Company does not have a policy of encashment of unexpired leave.
Actuarial gains / losses are immediately taken to Profit and Loss account and are not deferred.
1.5 FIXED ASSETS
Fixed assets are stated at their cost net of tax/duty credits availed, if any, less accumulated depreciation and accumulated amortizations. Costs comprise the purchase price and any attributable costs of bringing the assets to its working condition, for its intended use.
1.6 DEPRECIATION AND AMORTISATION
Depreciation on tangible assets is provided on Straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.
1.7 IMPAIRMENT OF ASSETS
As of each balance sheet, the carrying amount of assets is tested for impairment so as to determine -
- the provision for impairment loss, if any, required or
- the reversal, if any, required of impairment loss recognized in previous periods.
Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.
Recoverable amount is determined:
- in the case of individual asset, at the higher of the net selling price and the value in use ;
- in the case of a cash generating unit, (a group of assets that generates identified independent cash flows), at the higher of the cash generating units net selling price and the value in use.
- Value in use is determined as the present values of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life.
Long term investments are carried at cost, after providing for any diminution in value, if such diminution is of permanent nature. Current investments are carried at lower of cost or market value. Determination of carrying amount of such investments is done on the basis of specific identification.
1.8 BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of such asset till such time as the asset is ready for its intended use or sale.
All other borrowing costs are recognized as an expense in the period in which they are ihcurred.
1.9 TAXES ON INCOME
Taxes on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the income accounted in financial statements and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
* Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head ''Capital gains'' are recognized '' and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Other deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient
* future taxable income will be available against such deferred tax assets can be realized.
Traded goods are valued at cost or market value whichever is less.
1.11 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation if
(i) the company has a present obligation as a result of past event
(ii) a probable flow of resources is expected to settle the obligation and
(iii) the amount of obligation can be reliably estimated Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.
* Contingent liability is disclosed in case of
(i) a present obligation arising from past events , when it is not probable that an outflow of resources will be required to Â settle the obligation.
(ii) a present obligation arising from past events, when no reliable estimate is possible.
(iii) a possible obligation arising from past events, when the probability of outflow of resources is not remote.
Contingent assets are neither recognized nor disclosed.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance sheet date.
Mar 31, 2009
(a) Basis of preparation
The financial statements have been prepared to comply in all material respects in respects with the Accounting Standard notified by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual. The accounting policies have been consistently applied by the company with those used in the previous accouting year.
(b) Change in Accounting Policy
Upto last year, Company was valuing stock at cost or net realisable value whichever is lower. Company has changed method of valuation from 1 st April 2008 from Cost or market value whichever is lower to at cost. As on balance sheet date, value of stock, had it been, computed as per earlier method of cost or net realisable value whichever is lower, works out to Rs. 37.72 Lacs as compared to Rs. 80.73 Lacs computed at cost.
(c) 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.
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Revenue is recognised when the shareholders right to receive payment is established by the balance sheet date. Dividend from subsidiaries is recognised even if same are declared after balance sheet date but pertains to period on or before the date of balance sheet as per the requirement of schedule VI of the Companies Act, 1956.
(d) income taxes
Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current yeartiming 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 across various countries of operation are not set off against each other as the company does not have a legal right to do so. Deferred tax assets are recoginised 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. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certaintly supported by convincing evidence that they can be realised against future taxable profits.
Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.
At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised.
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 tower 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 recognise a decline other than temporary in the value of the investments.
(f) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholder share split; and reverse share split (consolidation of shares)
Stock in trade of Company consists Shares only.Share are Valued at Cost.
(h) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may be), less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which takes 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.
Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the management, or at the rates prescribed under schedule XIV of the Companies Act, 1956 whichever is higher.
(j) Employee Benefit
Retirement benefits and leave encashment is accounted for on accrual basis.
A provision is recognised when an enterprise has a present obligation as a result of past event; 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. Provisions for expenditure relating to voluntary retirement is made when the employee accepts the offer of early retirement.