Mar 31, 2015
A) Basis of Preparation of Financial Statements:
The financial statements are prepared on going concern assumption and
under the historic cost convention, except for certain fixed assets
which are revalued in accordance with Generally Accepted Accounting
Principles in India and the provisions of the CompaniesAct,2013.
b) Fixed Assets:
Fixed assets are stated at cost less depreciation All costs (excluding
CENVAT,VAT and Subsidy), including financing costs till commencement of
commercial production and adjustments arising from exchange rate
variations relating to borrowings attributable to the fixed assets are
capitalized.
c) Depreciation:
As the Financial Statements has been prepared for the period from 01
/07/2013 to 31 /03/2015, depreciation on Fixed Assets have been charged
on straight-line method at the rates and in the manner specified in
Schedule XIV to the Companies act, 1956 for the period from 01 /07/2013
to 31 /03/2014 and as per Schedule II of the Companies Act, 2013 for
the period from 01 /04/2014 to 31 /03/2015.
d) Inventories:
Inventories have been taken as valued and certified by the Management
The basis of valuation is as under:
Raw materials, Stores & Spares - at cost or net realizable value
whichever is lower.
Finished goods - at cost or net realizable value on FIFO basis
whichever is lower.
e) Retirement benefits:
(i) Company''s contribution to provident fund if any is charged to
Profit & Loss Account.
(ii) Provision has been made in accounts for the future payment of
gratuity to the employees of the Company. But the Company has not
complied the actuarial valuation requirements of Gratuity as per the
Accounting Standard.
f) Revenue recognition:
The company follows mercantile system of accounting and recognizes
significant items of income and expenditure as and when they are
incurred and accrued.
g) Investments:
Current Investments are valued at cost or market price whichever is
lower and in the absence of market quotation, cost price is adopted.
LongTerm Investments are valued at cost.
h) R&D Expenditure:
Capital expenditure is included in the fixed assets and depreciation as
per Company''s policy.
Revenue expenditure is charged to profit & loss account of the year in
which they are incurred is included in the respective heads of
expenditure.
i) Borrowing Costs:
Borrowings costs that are directly attributable to the acquisition of
qualifying assets are capitalized as part of cost of such asset. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are
charged to revenue.
j) Cash Flow Statement:
The Cash Flow Statement has been compiled from and is based on the
Balance Sheet as at 31 st March, 2015 and the related Profit and Loss
Account for the year ended on that date. The Cash Flow Statement has
been prepared under the indirect method as set out in the Accounting
Standard - 3 on Cash Flow statement issued by ICAI.
k) Accounting for Taxes on Income:
Current Tax: Provision for Current Income Tax is made on the basis of
the taxable income for the year as determined in accordance with the
provisions of Income Tax Act, 1961.
Deferred Tax: Deferred income tax is recognized, 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. The tax effect is calculated on the accumulated
timing differences at the year end based on tax rates and laws. Enacted
or substantially enacted as of the Balance Sheet date.
l) Employee Stock Option Scheme:
The company accounts for equity settled stock options as per the
accounting treatment prescribed by Securities and Exchange Board of
India (share based employee benefits) Regulations,2014 and the Guidance
Note on Employee Share- based Payments issued by the Institute of
Chartered Accountants of India.
m) Impairment of Assets:
The management assesses using external and internal sources whether
there is any indication that an asset may be impaired. Impairment of an
asset occurs where the carrying value exceeds the present value of cash
flow expected to arise from the continuing use of the asset and its
eventual disposal. The provision for impairment loss is made when
recoverable amount of the asset is lower than the carrying amount.
n) Government Grants & Other Claims:
Revenue grants including subsidy/rebates, refunds, claims etc.,are
credited to profit & loss account under other income or deducted from
the related expenses. Grants related to fixed assets are credited to
capital reserves account or adjusted in the cost of such assets as the
case may be, as and when the ultimate realisability of such grants
etc., are established/realized.
o) Provisions and Contingent Liabilities and Contingent Assets:
Provisions in respect of present obligations arising out of past events
are made in the accounts when reliable estimate can be made of the
amount of obligations and it is probable that there will be an outflow
of resources. Contingent Liabilities are not recognized but if
material, are disclosed in the notes to accounts. Contingent assets are
not recognized or disclosed in the financial statements.
p) Cash and Cash Equivalents:
Cash and cash equivalents comprise of cash at bank and cash in hand.
The Company considers all highly liquid investments with an original
maturity of three months or less from date of purchase, to be cash
equivalents.
q) Leases:
Lease rentals in respect of assets acquired under operating lease are
charged to Statement of Profit and Loss.
r) Intangible Assets:
Intangible assets are stated at acquisition cost, net of accumulated
amortisation and accumulated impairment losses, if any. Intangible
assets are amortised on a as per rates mentioned in the Act.
s) Segment reporting:
The accounting policies adopted for segment reporting are in conformity
with the accounting policies adopted for the company. Further,
(i) Inter segment revenue has been accounted for based on the
transaction price agreed to between segments which is primarily market
based.
(ii) Revenue and expenses have been identified to segments on the basis
of their relationship to the operating activities of the segment.
Revenue and expenses, which relate to the company as a whole and are
not allocable to segments on a reasonable basis, have been included
under"Un-allocated corporate expenses net of un-allocated income".
t) Earnings per share:
Basic earnings per share is calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. The number of
shares used in computing diluted earnings per share comprises the
weighted average number of shares considered for deriving basis earning
per share and also the weighted average number of equity shares, which
may be issued on the conversion of all dilutive potential shares,
unless the results would be anti dilutive.
u) Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Net exchange gain or loss
resulting in respect of foreign exchange translations settled during
period is recognized in the profit & loss account except for the net
exchange gain or loss on account of imported fixed assets, which is
adjusted in the carrying amount of the related fixed assets. Foreign
currency denominated current assets and current liabilities at the
period end are translated at the period end exchange rates and the
resulting net gain or loss is recognized in the profit & loss account,
except for exchange difference related to fixed assets purchased from
foreign countries is adjusted in the carrying amount of related fixed
assets.
Jun 30, 2013
1. The accounts are prepared on the historical cost convention and on
the accounting principle of a going concern.The accounts are prepared
to comply in all material aspects with the applicable accounting
principles in India, the Accounting Standards issued by the Institute
of Chartered Accountants of India and the relevant provisions of the
Companies act,1956 of India.
2. All Income and expenses to the extent considered receivable and
payable unless specifically stated to be otherwise are accounted for on
accrual basis.
3. Fixed assets are stated at cost less accumulated depreciation. The
expenses related to, and incurred during implementation period have
been capitalized under the appropriate heads.The original cost of fixed
assets is inclusive of Freight,duties,taxes,incidental expenses
relating to the acquisition,cost of installation/erection etc.
4. Depreciation on Fixed assets have been charged on straight-line
method at the rates and in the manner specified in Schedule XIVto the
Companies act,1956.
5. Miscellaneous expenditure: Expenses incurred for the acquisition of
subsidiaries has been capitalized and will be written off in equal
installments over a period of five years.
6. Inventories:Raw materials and consumable stores are valued at cost
on FIFO basis.Finished goods are valued on the lower of cost or net
realizable value.
7. IntangibleAssets:The expense incurredon the developmentof overseas
markets has been recognized as Intangible Assets and will be amortized
over a period of five years.The company is following the practice of
writing off the Deferred Revenue charges over a period of five years
and the same accounting treatment is consistently followed for the
current year also. Any new deferred revenue expenditure incurred will
be written off in the year of such expenditureas perAccounting Standard
28.
8. Gratuity: Provision for Gratuity liability has been made for
eligible employees basing on actuarial valuation carried out by M/s.
K.A. Pandit Consultants & Actuaries as per the Accounting Standard AS
15 issued by the Institute of CharteredAccountants of India.
9. LeaveEncashment:Leave encashment willbeaccounted forasand when
payments are made.
10. Provident Fund: Contributions to appropriateAuthorities is charged
to Profit and LossAccount.
11. Lease Rentals: Lease rentals in respect of operating lease accrue
as per the Lease agreement and are charged to Profit and Loss account.
12. Deferred Tax: Deferred tax charge reflects the tax effects of
timing difference between accounting income and taxable income for the
period.The deferred tax charge or credit and the corresponding deferred
tax liabilities or assets are recognized using tax rates that have been
enacted or substantially enacted by the balance sheet date. Deferred
tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future;however,where there
is unabsorbed depreciation or carry forward losses,deferred tax assets
are recognized only if there is a virtual certainty of realization of
such assets. Deferred tax assets are reviewed at each balance sheet
date and are written-down or written-up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realized.
13. Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Net exchange gain or loss
resulting in respect of foreign exchange transactions settled during
the period is recognized in the profit and loss account except for the
net exchange gain or loss on account of imported Fixed assets, which is
adjusted in the carrying amount of the related fixed assets. Foreign
Currency Denominated current assets and current liabilities at period
end are translated at the period end exchange Rates and the resulting
net gain or loss is recognized in the profit and loss account, except
for exchange Differences related to acquisition of fixed assets
purchased from foreign countries is adjusted in the Carrying amount of
the related fixed assets.
Jun 30, 2011
1. The accounts are prepared on the historical cost convention and on
the accounting principle of a going concern. The accounts are prepared
to comply in all material aspects with the applicable accounting
principles in India, the Accounting Standards issued by the Institute
of Chartered Accountants of India and the relevant provisions of the
Companies act,1956 of India.
2. All Income and expenses to the extent considered receivable and
payable unless specifically stated to be otherwise are accounted for on
accrual basis.
3. Fixed assets are stated at cost less accumulated depreciation. The
expenses related to, and incurred during implementation period have
been capitalized under the appropriate heads. The original cost of
fixed assets is inclusive of Freight, duties, taxes, incidental
expenses relating to the acquisition, cost of installation/erection
etc.
4. Depreciation on Fixed assets have been charged on straight-line
method at the rates and in the manner specified in Schedule XIV to the
Companies act,1956.
5. Miscellaneous Expenditure: Expenses incurred for the acquisition of
subsidiaries has been capitalized and will be written off in equal
installments over a period of five years.
6. Inventories :Raw materials and consumable stores are valued at cost
on FIFO basis. Finished goods are valued on the lower of cost or net
realizable value.
7. Intangible Assets: The expense incurred on the development of
overseas markets has been recognized as Intangible Assets and will be
amortized over a period of five years. The company s following the
practice of writing off the Deferred Revenue charges over a period of
five years and the same accounting treatment is consistently followed
for the current year also. Any new deferred revenue expenditure
incurred will be written off in the year of such expenditure as per
Accounting Standard 28.
8. Gratuity: Provision for Gratuity has been provided for employees
who have completed requisite period of service.
9. Leave Encashment: Leave encashment will be accounted for as and
when payments are made.
10. Provident Fund: Contributions to appropriate Authorities is
charged to Profit and Loss Account.
11. Lease Rentals: Lease rentals in respect of operating lease accrue
as per the Lease agreement and are charged to Profit and Loss account.
12. Deferred Tax: Deferred tax charge reflects the tax effects of
timing difference between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using tax rates that
have been enacted or substantially enacted by the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and are written-down or written-up
to reflect the amount that is reasonably/virtually certain (as the case
may be) to be realized.
13. Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Net exchange gain or loss
resulting in respect of foreign exchange transactions settled during
the period is recognized in the profit and loss account except for the
net exchange gain or loss on account of imported Fixed assets, which is
adjusted in the carrying amount of the related fixed assets. Foreign
Currency Denominated current assets and current liabilities at period
end are translated at the period end exchange Rates and the resulting
net gain or loss is recognized in the profit and loss account, except
for exchange Differences related to acquisition of fixed assets
purchased from foreign countries is adjusted in the Carrying amount of
the related fixed assets.
14 Contingent Liability: There are no contingent liabilities for the
period.
Jun 30, 2010
1. The accounts are prepared on the historical cost convention and on
the accounting principle of a going concern.The accounts are prepared
to comply in all material aspects with the applicable accounting
principles in India, the Accounting Standards issued by the Institute
of Chartered Accountants of India and the relevant provisions of the
Companies act,1956 of India.
2. All Income and expenses to the extent considered receivable and
payable unless specifically stated to be otherwise are accounted for on
accrual basis.
3. Fixed assets are stated at cost less accumulated depreciation. The
expenses related to, and incurred during implementation period have
been capitalized under the appropriate heads.The original cost of fixed
assets is inclusive of Freight,duties,taxes,incidental expenses
relating to the acquisition,cost of installation/erection etc.
4. Depreciation on Fixed assets have been charged on straight-line
method at the rates and in the manner specified in Schedule XIV to the
Companies act, 1956. The cost of the plant materials including re
plantation expenses are capitalized and are being written off over a
period of five years.
5. Miscellaneous expenditure: Expenses incurred for the acquisition of
subsidiaries has been capitalized and will be written off in equal
installments over a period of five years.
6. Inventories:Raw materials and consumable stores are valued at cost
on FIFO basis. Finished goods are valued on the lower of cost or net
realizable value.
7. Intangible Assets:The expense incurred on the development of
overseas markets has been recognized as Intangible Assets and will be
amortized over a period of five years.The company is following the
practice of writing off Deferred Revenue Expenses over a period of five
years and the same accounting treatment is consistently followed for
the current year also. Any new deferred revenue expenditure incurred
will be written off in the year of such expenditure as perAccounting
Standard 28
8. Gratuity:Provision for Gratuity has been provided for employees who
have completed requisite period of service.
9. Leave Encashment:Leave encashment is being accounted forasand when
payments are made.
10. Provident Fund:Contributions to appropriate Authorities is charged
to Profit and Loss Account.
11. Lease Rentals: Lease rentals in respect of operating lease
accruing as per the Lease agreement and are charged to Profit and Loss
account.
12. DeferredTax:Deferred tax charge reflects the tax effects of timing
difference between accounting income and taxable income for the
period.The deferred tax charge or credit and the corresponding deferred
tax liabilities or assets are recognized using tax rates that have been
enacted or substantially enacted by the balance sheet date. Deferred
tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future;however, where
there is unabsorbed depreciation or carry forward losses, deferred tax
assets are recognized only if there is a virtual certainty of
realization of such assets. Deferred tax assets are reviewed at each
balance sheet date and are written-down or written-up to reflect the
amount that is reasonably/virtually certain (as the case may be) to be
realized.
13. Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Net exchange gain or loss
resulting in respect of foreign exchange transactions settled during
the period is recognized in the profit and loss account except for the
net exchange gain or loss on account of imported Fixed assets, which is
adjusted in the carrying amount of the related fixed assets. Foreign
Currency Denominated current assets and current liabilities at period
end are translated at the period end exchange Rates and the resulting
net gain or loss is recognized in the profit and loss account, except
for exchange Differences related to acquisition of fixed assets
purchased from foreign countries is adjusted in the Carrying amount of
the related fixed assets. 14. Contingent Liability:There are no
contingent liabilities for the period.
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