Mar 31, 2014
A. ACCRUAL SYSTEM OF ACCOUNTING :
i) The company follows the accrual system of accounting in respect of
all items of expenditure except warranty claim and income.
ii) Warranty claims from customers are accounted in the year of claim /
settlement. Non-provision for the same on accrual basis is not expected
to have a material effect on. the account.
b. USE OF ESTIMATES:
The preparation of financial statements requires estimation and
assumptions to be made that affect reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. The management
believes that the estimates used in preparation of financial statements
are prudent and reasonable. Future results may vary from these
estimates.
c. FIXED ASSETS:
Fixed assets are stated at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses relating to acquisition,
installation, erection and commissioning less depreciation. Internally
manufactured assets are valued at cost or estimated market price
whichever is lower
d. INVENTORIES:
Raw materials, stores'', spare parts, and components are valued on the
basis of Weighted Average Method after providing for obsolescence.
Work-in-process is valued at cost. Finished goods are valued at cost or
net realisable value whichever is lower. Cost for the purpose of Work
in Process and finished goods include material cost valued as per
weighted average method and applicable conversion cost. As per
Accounting Standard 2 excise duty on finished goods lying at works is
also accounted and provided in the books of account. Materials in
transit are valued at cost inclusive of Customs duty and other
incidental expenses payable.
e. DEPRECIATION :
Depreciation oh all assets excepting vehicles and computers are charged
on the straight-line method as contemplated in Section 205 (2) (b) of
the Companies Act, 1956. Depreciation on vehicles has been charged on
the Written Down Value method as contemplated Under Section 205 (2) (a)
of the Companies Act, 1956. Depreciation rates are in accordance with
Schedule XIV of Companies Act, 1956 except in respect of computers.
Deprecation on computers is charged on straight line method at 33.33%
p.a.
f. RESEARCH AND DEVELOPMENT EXPENDITURE :
Revenue expenditure in carrying out Research and Development activities
is charged to profit & loss account of the year in which it is
incurred.
g. REVENUE RECOGNITION :
i) Sales are recognised on shipment to customers after pre-inspection
wherever applicable and include recovery towards excise duty.
ii) Interest income is recognized on time proportion basis.
iii) Dividend income is recognized, when the right to receive the
dividend is established.
h. BORROWING COST:
Interest and other costs in connection with borrowing of funds to the
extent related / attributed to the acquisition / construction of
qualifying assets are capitalized up to the date when such assets are
ready for their intended use and other borrowing costs are charged to
profit and loss account.
i) FOREIGN CURRENCY TRANSLATION :
Transactions in foreign currency are accounted for at the exchange rate
prevailing on the date of transactions. The exchange differences
arising on their settlement are dealt with in the Profit and Loss
Account. All monetary items denominated in foreign currency are
restated at the year-end exchange rate and the differences arising from
such restatement are recognised in the Profit and Loss Account.
j) EMPLOYEE BENEFITS :
(i) Short Term Employee Benefits:
Employee benefits payable wholly within twelve months of rendering the
service are classified as short term. Benefits such as salaries, bonus,
exgratia etc. are recognised in the period in which the employee
renders the related service.
(ii) Post Employment Benefits:
a) Defined Contribution Plans:
The Company has contributed to Provident, Pension, EDLI &
Superannuation Funds which are defined contribution plans. The
contributions paid/ payable under the scheme to the Regional Provident
Fund Commissioner/Life Insurance Corporation of India is recognised
during the year in which employee renders the related service.
b) Defined Benefit Plans :
Employees'' gratuity is defined benefit plan. The present value of the
obligation under such plan has been determined based on completed
service at the end of the year as per actuarial valuation under
projected unit credit method. Actuarial gain / losses are recognized in
profit and loss account immediately. Leave encashment is a defined
benefit plan and is provided on accrual basis as per actuarial
valuation,
k) TAXES ON INCOME :
Provision for current tax is made after considering any excess / short
in earlier years. Deferred tax liability on account of timing
differences are provided considering the tax rates and the tax laws
enacted by the Balance Sheet date. However, deferred tax assets are
recognised only if future profits are virtually certain.
i) CONTINGENT LIABILITIES AND PROVISIONS:
Financial effect of contingent liabilities is disclosed based on
information available upto the dates on which financial statements are
approved. However, where a reasonable estimate of financial effect
cannot be made, suitable disclosures are made with regard to this fact
and the existence and nature of the contingent liability.
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
m) IMPAIRMENT OF ASSETS :
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired; If any such indication
exists, the Company estimates the recoverable amount, if the carrying
amount of the asset exceeds its recoverable amount, an impairment loss
is recognized in the Profit & Loss account to the extent the carrying
amount exceeds the recoverable amount.
Mar 31, 2012
1. ACCRUAL SYSTEM OF ACCOUNTING:
a) The company follows the accrual system of accounting in respect of
all items of expenditure except warranty claim and income.
b) Warranty claims from customers are accounted in the year of
claim/settlement. Non provision for the same on accrual basis is not
expected to have a material effect on the account.
2. USE OF ESTIMATES:
The preparation of financial statements requires estimation and
assumptions to be made that affect reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. The management
believes that the estimates used in preparation of financial statements
are prudent and reasonable. Future results may vary from these
estimates.
3. FIXED ASSETS:
Fixed assets are stated at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses relating to acquisition,
installation, erection and commissioning less depreciation. Internally
manufactured assets are valued at cost or estimated market price
whichever is lower.
4. INVENTORIES:
Raw materials, stores, spare parts and components are valued on the
basis of Weighted average Method after providing for obsolescence.
Work-in-process is valued at cost. Finished goods are valued at cost or
net realisable value whichever is lower. Cost for the purpose of Work
in Process and finished goods include material cost valued as per
weighted average method and applicable conversion cost. As per
Accounting Standard 2 excise duty on finished goods lying at works is
also accounted and provided in the books of account. Materials in
transit are valued at cost inclusive of Customs duty and other
incidental expenses payable.
5. DEPRECIATION:
Depreciation on all assets excepting vehicles is charged on the
straight-line method as contemplated in Section 205 (2)(b) of the
Companies Act, 1956. Depreciation on vehicles has been charged on the
Written Down Value method as contemplated Under Section 205 (2)(a) of
the Companies Act, 1956. Depreciation rates are in accordance with
Schedule XIV of Companies Act, 1956 except in respect of computers.
Deprecation on computers is charged on straight line method at 33.33%
p.a.
6. RESEARCH AND DEVELOPMENT EXPENDITURE:
Revenue expenditure in carrying out Research and Development
activities is charged to profit and loss account of the year in which
it is incurred.
7. REVENUE RECOGNITION:
Sale of Machine is recognised on shipment to customers after
pre-inspection wherever applicable and includes recovery towards excise
duty.
8. BORROWING COST:
Interest and other costs in connection with borrowing of funds to the
extent related/attributed to the acquisition/construction of qualifying
assets are capitalised upto the date when such assets are ready for
their intended use and other borrowing costs are charged to profit and
loss account.
9. FOREIGN CURRENCY TRANSLATION :
Transactions in foreign currency are accounted for at the exchange rate
prevailing on the date of transactions. The exchange differences
arising on their settlement are dealt with in the Profit and Loss
Account. All monetary items denominated in foreign currency are
restated at the year end exchange rate and the differences arising from
such restatement are recognised in the Profit and Loss Account.
10. EMPLOYEE BENEFITS:
i) Short Term Employee Benefits: Employee benefits payable wholly
within twelve months of rendering the service are classified as short
term. Benefits such as salaries, bonus, exgratia, etc., are recognised
in the period in which the employee renders the related service.
ii) Post Employment Benefits :
a) DEFINED CONTRIBUTION PLANS: The Company has contributed to
Provident, Pension, EDLI & Superannuation Funds which are defined
contribution plans. The contributions paid/payable under the scheme to
the Regional Provident Fund Commissioner/Life Insurance Corporation of
India is recognised during the year in which employee renders the
related service.
b) DEFINED BENEFIT PLANS: Employees' gratuity is defined benefit plan.
The present value of the obligation under such plan has been determined
based on completed service at the end of the year as per actuarial
valuation under projected unit credit method. Actuarial gain/losses are
recognized in profit and loss account immediately. Leave encashment, a
defined benefit plan is provided on accrual basis as per actuarial
valuation.
11. TAXES ON INCOME:
Provision for current tax is made after considering any excess/short in
earlier years. Deferred tax liability on account of timing differences
are provided considering the tax rates and the tax laws enacted by the
Balance Sheet date. However, deffered tax assets are recognised only
if future profits are virtually certain.
12. CONTINGENT LIABILITIES AND PROVISIONS :
Financial effect of contingent liabilities is disclosed based on
information available upto the dates on which financial statements are
approved. However, where a reasonable estimate of financial effect
cannot be made, suitable disclosures are made with regard to this fact
and the existence and nature of the contingent liability.
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
13. IMPAIRMENT OF ASSETS :
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the asset exceeds its recoverable amount, an impairment loss
is recognized in the Profit and Loss account to the extent the carrying
amount exceeds the recoverable amount.
Mar 31, 2010
1. ACCRUAL SYSTEM OF ACCOUNTING
a) The company follows the accrual system of accounting in respect of
all items of expenditure except warranty claim and income.
b) Warranty claims from customers are accounted in the year of claim 7
settlement. Non-provision for the same on accrual basis is not
expected to have a material effect on the account.
2. USE OF ESTIMATES
The preparation of financial statements requires estimation and
assumptions to be made that affect reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. The management
believes that the estimates used in preparation of financial statements
are prudent and reasonable. Future results may vary from these
estimates.
3. fixed Assets
Fixed assets are stated at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses relating to acquisition,
installation, erection and commissioning less depreciation.
Internally manufactured assets are valued at cost or estimated market
price whichever is lower.
4. INVENTORIES
Raw materials, stores, spare parts and components are valued on the
basis of Weighted Average Method after providing for obsolescence.
Work-in-process is valued at cost. Finished goods are valued at cost or
net realisable value whichever is lower. Cost for the purpose of Work
in Process and finished goods include material cost valued as per
weighted average method and applicable conversion cost. As per
Accounting Standard 2 excise duty on-finished goods lying at works is
also accounted and provided in the books of account. Materials in
transit are valued at cost inclusive of Customs duty and other
incidental expenses payable.
5. DEPRECIATION
Depreciation on all assets excepting vehicles is charged on the
straight-line method as contemplated in Section 205 (2) (b) of the
Companies Act, T956. Depreciation on vehicles has been charged on the
Written Down Value method as contemplated Under Section 205 (2) (a) of
the Companies Act, 1956. Depreciation rates are in accordance with
Schedule XIV of the Companies Act, 1956 except in respect of computers.
Depreciation on computers is charged on straight line method at 33.33%
p.a.
6. RESEARCH AND DEVELOPMENT EXPENDITURE
Revenue expenditure in carrying out Research and Development activities
is charged to profit & loss account of the year in which it is
incurred.
7. REVENUE RECOGNITION
Sale of Machine is recognised on shipment to customers after
pre-inspection wherever applicable and includes recovery towards excise
duty..
8. BORROWING COST
Interest and other costs in connection with borrowing of funds to the
extent related / attributed to the acquisition / construction of
qualifying assets are capitalised up to the date when such assets are
ready for their intended use and other borrowing costs are charged to
profit and loss account.
9. FOREIGN CURRENCY TRANSLATION
Transactions in foreign currency are accounted for at the exchange rate
prevailing on the date of transactions. The exchange differences
arising on their settlement are dealt with in the. Profit and Loss
Account. All monetary items denominated in foreign currency are
restated at the year-end exchange rate and the differences arising from
such. restatement are recognised in the Profit and Loss Account.
10. EMPLOYEE BENEFITS
(i) Short Term Employee Benefits :
Employee benefits payable wholly within twelve months of rendering the
service are classified as short term. Benefits such as salaries, bonus,
exgratia etc. are recognised in the period in which the employee
renders the related service.
(ii) Post Employment Benefits :
a) Defined Contribution Plans :
The Company has contributed to Provident, Pension, EDLI and
Superannuation Funds which are defined contribution plans. The
contribution paid/payable under the scheme to the Regional Provident
Fund Commissioner / Life Insurance Corporation of India is recognised
during the year in which employee renders the related service. The
Company also contributes to the Officers Provident Fund Trust for a few
senior employees in respect of which interest shortfall, if any, is
accounted on a year to year basis.
b) Defined Benefit Plans :
Employees gratuity is defined benefit plan. The present value of the
obligation under such plan has been determined based on completed
service at the end of the year as per acturial valuation under
projected unit credit method. Acturial gain / losses are recognized in
profit and loss account immediately. Leave encashment a defined benefit
plan is provided on accrual basis as per actuarial valuation.
11. TAXES ON INCOME
Provision for current tax is made after considering any excess / short
in earlier years. Deferred tax liability on account of timing
differences are provided considering the tax rates and the tax laws
enacted by the Balance Sheet date. However, deferred tax assets are
recognised only if future profits are virtually certain.
12. CONTINGENT LIABILITIES AND PROVISIONS
Financial effect of contingent liabilities is disclosed based on
information available upto the dates on which financial statements are
approved. However, where a reasonable estimate of financial effect
cannot be made, suitable disclosures are made with regard, to this fact
and the existence and nature of the contingent liability.
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
13. IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds its recoverable amount, an impairment loss
is, recognized in the profit & Loss account to the extent the carrying
amount exceeds the recoverable amount.