Mar 31, 2014
I) BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) under
the historical cost convention on accrual basis. The financial
statements of the company has been prepared to comply with the
Accounting Standards notified under the Companies (Accounting Standard)
Rules, 2006 (as amended) and the relevant provisions of the Companies
Act, 1956. The accounting policies adopted in the preparation of the
financial statements are consistent with those followed in the previous
year.
II) REVENUE RECOGNITION:
Revenue from sale of goods is recognized, when all the significant
risks and rewards of ownership are transferred to the buyer, as per the
terms of contract and no significant uncertainty exists regarding the
amount of consideration that will be derived from sale of the goods. It
also includes price variation and excludes value added tax.
III) FIXED ASSETS
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation.
The costs of assets include direct/indirect and incidental costs
incurred to bring them in to their present location and working
condition for the intended use.
IV) DEPRECIATION
Depreciation is provided on straight line basis as per the rates and
method prescribed under Schedule XIV to the Companies Act, 1956.
V) INVESTMENTS
Long Term Investments are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Cost of investments includes acquisition charges such as
brokerage, fees and duties.
VI) INVENTORIES
Engineering Division
Inventories are stated at the lower of cost or net realizable value.
Cost is determined at the FIFO Method. The cost of work in progress and
finished goods comprises direct material, direct labour, other direct
cost and related production overhead.
Stores are written off in the year of purchase.
Jewellery Division
Inventories are stated at the lower of cost or net realizable value.
VII) RETIREMENT BENEFITS
a) Gratuity Liability is accounted as and when paid.
b) Leave Encashment Liability is accounted as and when paid.
VIII) FOREIGN CURRENCY TRANSACTIONS
In respect of export of goods and services, the transactions in foreign
currency are recorded in rupees by applying to the foreign currency
amount, the exchange rate prevailing on the date of the transaction.
Any excess or shortfall at the time of actual realization is charged to
the profit and loss account.
In respect of import of goods and services, the transactions in foreign
currency are recorded in rupees by applying to the foreign currency
amount, the exchange rate prevailing on the date of the transaction.
Any excess or shortfall at the time of actual payment is charged to the
profit and loss account.
In respect of import of capital goods, the transaction in foreign
currency is recorded in rupees by applying to the foreign currency
amount the exchange rate prevailing on the date of transaction.
Exchange differences in respect of liabilities incurred and settled
within the financial year to acquire fixed assets are charged to the
profit and loss account.
Assets and liabilities related to foreign currency transactions other
than fixed assets remaining unsettled at the year end are translated at
the contract rate, when covered by a foreign exchange contract and at
year end rates in other cases. The gains and losses arising on foreign
exchange transactions other than those relating to fixed assets are
recognized in profit and loss account. Gains and losses arising on
foreign exchange transactions relating to fixed assets are charged to
the profit and loss account.
IX) BORROWING COSTS
Borrowing Costs directly attributed to the acquisition of Fixed Assets
are capitalised as a part of the cost of asset till such time the asset
is ready for its intended use or sale. A qualifying asset is an asset
that necessarily requires a substantial period of time (generally over
twelve months) to get ready for its intended use or sale.
All other borrowing costs are charged to the Profit and Loss Account in
the year in which they are incurred.
X) EARNING PER SHARE
Basic earnings per share is computed by dividing the profit / (loss)
after tax by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the
profit / (loss) after tax as adjusted for dividend , interest and other
charges to expenses or income relating to the dilutive potential equity
shares, by the weighted average number of equity shares considered for
deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all
dilutive potential equity shares.
XI) TAXES ON INCOME
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognized on timing differences between taxable and
accounting income / expenditure that originates in one period and are
capable of reversal in one or more subsequent periods. Deferred Tax
Asset is recognized for unabsorbed depreciation and carry forward
losses to the extent there is virtual / reasonable certainty that the
sufficient future taxable income will be available against which
deferred tax assets can be realized.
XII) IMPAIRMENT OF FIXED ASSETS:
Management assess at each balance sheet whether there is any indication
that an asset may be impaired. If any such indication exists, it
estimates the recoverable amount of the asset. If such recoverable
amount of the asset is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction, if any, is
treated as an impairment loss and is recognized in the Statement of
Profit and Loss. If at the balance sheet date there is any indication
that a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected at the
recoverable amount.
In the opinion of the management, there are no indications, internal or
external which could have the effect of impairment of the assets of the
Company to any material extent as at the Balance Sheet date, which
requires recognition in terms of Accounting Standard (AS Â 28) on '
Impairment of Assets'
XIII) PROVISIONS CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if :
a) The Company has a present obligation as a result of past events;
b) a probable outflow of resources is expected to settle the
obligation; and
c) the amount of obligation can be reliably estimated.
Reimbursement by another party, expected in respect of expenditure
required to settle a provision, is recognized when it is virtually
certain that reimbursement will be received if the obligation is
settled.
Contingent liability is disclosed in the case of :
a) a present obligation arising from past events, when it is not
probable that an outflow of recourses will be required to settle the
obligation;
b) a present obligation arising from past events, when no reliable
estimate is possible;
c) a possible obligation arising from past events, unless the
probability of outflow of resources is remote.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
(d) Rights, preferences and restrictions attached to shares
The Company has one class of equity shares having a par value of Rs. 2
per share. Each shareholder is eligible for one vote per share held. In
the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
Mar 31, 2013
I) BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) under
the historical cost convention on accrual basis. The financial
statements of the company has been prepared to comply with the
Accounting Standards notified under the Companies (Accounting Standard)
Rules, 2006 (as amended) and the relevant provisions of the Companies
Act, 1956. The accounting policies adopted in the preparation of the
financial statements are consistent with those followed in the previous
year,
II) REVENUE RECOGNITION:
Revenue from sale of goods is recognized, when all the significant
risks and rewards of ownership are transferred to the buyer, as per the
terms of contract and no significant uncertainty exists regarding the
amount of consideration that will be derived from sale of the goods. It
also includes price variation and excludes value added tax.
III) FIXED ASSETS
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation.
The costs of assets include direct/indirect and incidental costs
incurred to bring them in to their present location and working
condition for the intended use.
IV) DEPRECIATION
Depreciation is provided on straight line basis as per the rates and
method prescribed under Schedule XIV to the Companies Act, 1956.
V) INVESTMENTS
Long Term Investments are carried individually at cost less provision
for diminution. other than temporary, in the value of such
investments. Current investments are carried individually, at the lower
of cost and fair value. Cost of investments includes acquisition
charges such as brokerage, fees and duties.
VI) INVENTORIES
Engineering Division
Inventories are stated at the lower of cost or net realizable value.
Cost is determined at the FIFO Method. The cost of work in progress and
finished goods comprises direct material, direct labour, other direct
cost and related production overhead.
Stores are written off in the year of purchase.
Jewellery Division _ Inventories are stated at the lower of cost or net
realizable value,
VII) RETIREMENT BENEFITS
a) Gratuity Liability is accounted as and when paid.
b) Leave Encashment Liability is accounted as and when paid.
VIII) FOREIGN CURRENCY TRANSACTIONS
In respect of export of goods and services, the transactions in foreign
currency are recorded in rupees by applying to the foreign currency
amount, the exchange rate prevailing on the date of the transaction.
Any excess or shortfall at the lime of actual realization is charged to
the profit and loss account.
In respect of import of goods and services, the transactions in foreign
currency are recorded in rupees by applying to the foreign currency
amount, the exchange rate prevailing on the date of the transaction.
Any excess or shortfall at the time of actual payment is charged to the
profit and loss account.
In respect of import of capital goods, the transaction in foreign
currency is recorded in rupees by applying to the foreign currency
amount the exchange rate prevailing on the date of transaction.
Exchange differences in respect of liabilities incurred and settled
within the financial year to acquire fixed assets are charged to the
profit and loss account.
Assets and liabilities related to foreign currency transactions other
than fixed assets remaining unsettled at the yearend are translated at
the contract rate, when covered by a foreign exchange contract and at
year end rates in other cases. The gains and losses arising on foreign
exchange transactions other than those relating to fixed assets are
recognized in profit and loss account. Gains and losses arising on
foreign exchange transactions relating to fixed assets are charged to
the profit and loss account.
IX) BORROWING COSTS
Borrowing Costs directly attributed to the acquisition of Fixed Assets
are capitalised as a part of the cost of asset till such time the asset
is ready for its intended use or sale. A qualifying asset is an asset
that necessarily requires a substantial period of time (generally over
twelve months) to get ready for its intended use or sale,
All other borrowing costs are charged to the Profit and Loss Account in
the year in which they are incurred.
X) EARNING PER SHARE
Basic earnings per share is computed by dividing the profit / (loss)
after tax by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the
profit / (loss) after tax as adjusted for dividend . interest and
other charges to expenses or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares
considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares.
XI) TAXES ON INCOME
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognized on timing differences between taxable and
accounting income t expenditure that originates in one period and are
capable of reversal in one or more subsequent periods. Deferred Tax
Asset is recognized for unabsorbed depreciation and carry forward
losses to the extent there is virtual / reasonable certainty that the
sufficient future taxable income will be available against which
deferred tax assets can be realized.
XII) IMPAIRMENT OF FIXED ASSETS:
Management assess at each balance sheet whether there is any indication
that an asset may be impaired. If any such indication exists, it
estimates the recoverable amount of the asset If such recoverable
amount of the asset is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction, if any, is
treated as an impairment loss and is recognized in the Statement of
Profit and Loss. If at the balance sheet date there is any indication
that a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected at the
recoverable amount.
In the opinion of the management, there are no indications, internal or
external which could have the effect of impairment of the assets of the
Company to any material extent as at the Balance Sheet date, which
requires recognition in terms of Accounting Standard (AS Â 28) on *
Impairment of Assets''
XII) PROVISIONS CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if:
a) The Company has a present obligation as a result of past events;
b) a probable outflow of resources is expected to settle the
obligation; and
c) the amount of obligation can be reliably estimated.
Reimbursement by another party, expected in respect of expenditure
required to settle a provision, is recognized when it is virtually
certain that reimbursement will be received if the obligation is
settled.
Contingent liability is disclosed in the case of:
a) a present obligation arising from past events, when it is not
probable that an outflow of recourses will be required to settle the
obligation;
b) a present obligation arising from past events, when no reliable
estimate is possible;
c) a possible obligation arising from past events, unless the
probability of outflow of resources is remote.
Mar 31, 2011
I) The Accounts have been prepared on historical cost basis, ignoring
changes, if any, in the purchasing power of money and on the accounting
principles of 'going concern' concept except otherwise stated.
II) REVENUE RECOGNITION:
All revenues and expenses are accounted on accrual basis, except to the
extent stated otherwise.
III) FIXED ASSETS
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation.
The costs of assets include direct/indirect and incidental costs
incurred to bring them in to their present Location and working
condition for the intended use,
IV) DEPRECIATION
Depreciation Is provided on straight line basis as per the rates and
method prescribed under Schedule XIV to the Companies Art.
V) INVESTMENTS
Long Term Investments are valued at cost, provisions for diminution in
value of investment is made if in the opinion of the management, the
decline is permanent in nature.
VI) INVENTORIES Engineering division
Inventories are stated at the lower of cost or net realizable value.
Cost is determined at the FIFO Method. The cost of work in progress and
finished goods comprises direct material direct labour, other direct
cost and related production overhead
Stores are mitten off in the year of purchase.
Jewellery Division
Inventories are stated at the lower of cost or net realizable value.
VII) RETIREMENT BENEFITS
a) Gratuity Liability is accounted as and when paid.
b) Leave Encashment Liability is accounted as and when paid.
VIII) FOREIGN CURRENCY TRANSACTIONS
In respect of export of goods and services, the transactions in foreign
currency are recorded in rupees by applying to the Foreign currency
amount, the exchange rate prevailing on the date of the transaction.
Any excess or shortfall at the time of actual realization is charged to
the profit and loss account.
In respect of import of goods and services, the transactions in foreign
currency are recorded in rupees by applying to the foreign currency
amount, the exchange rate prevailing on the date of the transaction.
Any excess or shortfall at the time of actual payment is charged to the
profit and loss account.
In respect of import of capital goods, the transaction in Foreign
currency is recorded in rupees by applying to the foreign currency
amount the exchange rate prevailing on the date of transaction.
Exchange differences in respect of liabilities incurred and settled
within the financial year to acquire fixed assets are charged to the
profit and loss account.
Assets and liabilities related to foreign currency transactions other
than fixed assets remaining unsettled at the year end are translated at
the contract rater when covered by a foreign exchange contract and at
year end rates in other cases. The gains and losses arising on foreign
exchange transactions other than those relating to fixed assets are
recognized in profit, and loss account. Gains and losses arising on
foreign exchange transactions relating to fixed assets are charged to
the profit and loss account.
IX) MISCELLANEOUS EXPENDITURE
Preliminary expenses are written off in the year of expenses incurred.
X) BORROWING COSTS
Borrowing Costs directly attributed to the acquisition of Fixed Assets
are capitalised as a part of the cost of Asset upto the date the Assets
is put to use. Other Borrowing Costs are changed to the Profit and Loss
Account in the year subsequent periods.
XI) TAXES OH INCOME
Current tax is determined as the amount or tax payable in respect cf
taxable income for the period.
Deferred Tax is recognised subject to the consideration of prudence on timing
differences, bring the difference between Taxable Income and
Account no. Income that origins in one period and are capable cf
reversal in one or more subsequent periods.
XIII) 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 event and it is probable that there will be an outflow of
resources. Contingent Liabilities are not recognized but are
disclosed in the notes after careful evaluation by the management
of the facts and legal aspects of the matters involved.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2010
I) The Accounts have been prepared on historical cost basis, ignoring
changes, if any, in the purchasing power of money and on the accounting
principles of going concern" concept except otherwise stated.
II) REVENUE RECOGNITION:
AH revenues and expenses are accounted on accrual basis, except to the
extent stated otherwise.
III) FIXED ASSETS
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation.
The costs of assets include direct/indirect and incidental costs
incurred to bring them in to their present location and working
condition for the intended use.
IV) DEPRECIATION
Depreciation is provided on straight line basis as per the rates and
method prescribed under Schedule XIV to the Companies Act, 1956.
V) INVESTMENTS
Long Term Investments are valued at cost, provisions for diminution in
value of investment is made if in the opinion of the management, the
decline is permanent in nature.
VI) INVENTORIES
Engineering Division
Inventories are stated at the lower of cost or net realizable value.
Cost is determined at the FIFO Method. The cost of work in progress and
finished goods comprises direct material, direct labour, other direct
cost and related production overhead.
Stores are written off in the year of purchase.
Jewellery Division
Inventories are stated at the lower of cost or net realizable value.
VII) RETIREMENT BENEFITS
a) Gratuity Liability is accounted as and when paid.
b) Leave Encashment Liability is accounted as and when paid.
VIII) FOREIGN CURRENCY TRANSACTIONS
All transactions in foreign currency are recorded by applying the
exchange rate prevailing at the time of the transaction.
Gains or losses upon settlement of the transaction during the year is
recognised in the Profit and Loss Account except those related to
acquisition of fixed assets which are adjusted to the cost of fixed
assets.
Foreign Currency Transactions remaining unsettled at the end of the
year are translated at the year-end rate.
Gains or Losses arising as a result of above are adjusted in the Profit
and Loss Account except relating to the loan liability for acquisition
of Fixed Assets which is adjusted to the cost of the Fixed Assets.
IX) BORROWING COSTS
Borrowing Costs directly attributed to the acquisition of Fixed Assets
are capitalised as a part of the cost of Asset upto the date the Asset
is put to use. Other Borrowing Costs are charged to the Profit and Loss
Account in the year in which they are incurred.
X) DEFERRED TAX
Deferred Tax is recognised subject to the consideration of prudence on
timing differences, being the difference between Taxable Income and
Accounting Income that originate in one period and are capable of
reversal in one or more subsequent periods.
XXI) IMPAIRMENT OF FIXED ASSETS:
At balance sheet date, an assessment is done to determine whether there
is any indication of impairment in the carrying amount of companys
fixed assets. If any, such indication exists. The assets recoverable
amount estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount.
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