Mar 31, 2015
(i) Basis of preparation of accounts
The company maintains its accounts on accrual basis following the
historical cost conventions in compliance with the generally accepted
accounting principles and accounting standards, specified to be
mandatory under Section 133 of the Companies Act, 2013 read with the
Rule 7 of the Companies (Accounts) Rules 2014 and relevant provisions
of the Companies Act, 2013.
The company has also reclassified the prior figures in accordance with
the requirements applicable for the current period, wherever necessary.
(ii) Use of estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
judgments, estimates and assumptions that affect the application of
accounting policies and reported amounts on the date of the financial
statements. Actual results could differ from those estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis. Any
revision to accounting estimates is recognised prospectively in current
and future periods.
(iii) Revenue Recognition
Revenue from sale of goods is recognized when the substantial risks and
rewards of ownership are transferred to the buyer which generally
coincides when the goods are dispatched from the factory or delivered
to the customers as per the terms of the contract.
Service income is included in sales.
(iv) Tangible and Intangible Fixed Assets and Depreciation
Fixed assets are normally stated at original cost and written down
value method has been followed for providing depreciation on Fixed
Assets at the rates prescribed under the Schedule II of the Companies
Act, 2013.
Intangible assets, that are not yet ready for their intended use, are
carried at costs. Cost incurred on intangible assets are capitalized as
intangible assets and amortized on a straight-line method
(v) Inventories
Inventories are valued at cost or net realizable value whichever is
lower.
(vi) Investments
Long term investments are stated at cost. Current investments are
carried at the lower of cost and fair value.
(vii) Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Statement
of Profit & Loss.
(viii) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such assets.
A qualifying asset is one that takes necessarily substantial period of
time to get ready for its intended use. All other borrowing costs are
recognised as an expense in the period in which they are incurred.
(ix) Provisions
A provision is recognized when the company has a present obligation as
a result of past events, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
(x) Contingent liabilities and contingent assets
A contingent liability exists when there is a possible but not probable
obligation, or a present obligation that may, but probably will not,
require an outflow of resources, or a present obligation whose amount
cannot be estimated reliably. Contingent liabilities do not warrant
provisions, but are disclosed unless the possibility of outflow of
resources is remote. Contingent assets are neither recognised nor
disclosed in the financial statements.
(xi) Miscellaneous Expenditure
Equity share issue expenses to the extent not written off have been
disclosed under other current assets.
(xii) Employee benefits
Provident fund:
The Company makes specified monthly contributions towards employee
provident fund to Government administered provident fund scheme which
is a defined contribution plan.
Gratuity and Pension:
The Company's gratuity benefit scheme and pension plans are defined
benefit plans._The Company's net obligation in respect of a defined
benefit plan is calculated by estimating the amount of future benefit
that employees have earned in return for their service in the current
and prior periods.
(xiii) Research and Development:
Research and development costs are charged to operations as incurred.
(xiv) Taxes on Income
Tax expenses comprises of current tax and deferred tax. Current taxes
are measured at the amounts expected to be paid using the applicable
tax rates and tax laws. Deferred tax Assets and Liabilities are
measured using tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in
the profit and loss account in the year of change. Deferred tax assets
and deferred tax liabilities are recognized for the future tax
consequences attributable to differences between the financial
statements carrying amounts of exiting assets and liabilities and their
respective tax bases and operating loss carry forward.
(xv) Earnings per share
Basic earnings per share have been computed by dividing net income by
the weighted average number of Equity shares outstanding for the
period.
Diluted earnings per share have been computed by adjusting the net
profit for the period and the weighted average number of shares
outstanding during the period.
(xvi) Foreign currency transactions
Foreign currency transactions are recorded at the exchange rates
prevailing on the dates of the transaction. Resultant gains and losses
are included in the Statement of Profit and Loss.
As per the notification issued by the Ministry of Corporate Affairs,
the Exchange Fluctuation arising on reporting of Long Term Foreign
Currency Monetary items relating to Depreciable Assets is charged off
to Profit & Loss account.
Mar 31, 2014
Method of Accounting
The company maintains its accounts on accrual basis following the
historical cost conventions in compliance with the accounting
standards, specified to be mandatory by the Institute of Chartered
Accountants of India and the relevant provisions of the Companies Act.
The company has also reclassified the prior figures in accordance with
the requirements applicable for the current period.
Fixed Assets and Depreciation
Fixed assets are normally stated at original cost and WDV method has
been followed for providing depreciation on Fixed Assets at the rates
prescribed under the Schedule XIV of the Companies Act.
Inventories
Inventories are valued at cost or market value whichever is lower.
Taxes on Income
Tax expenses comprises of current tax and deferred tax. Current taxes
are measured at the amounts expected to be paid using the applicable
tax rates and tax laws. Deferred tax assets and liabilities are
measured using tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in
the profit and loss account in the year of change. Deferred tax assets
and deferred tax liabilities are recognized for the future tax
consequences attributable to differences between the financial
statements carrying amounts of exiting assets and liabilities and their
respective tax bases and operating loss carry forward.
Revenue Recongnition
Revenue from sale of goods is recognized when the substantial risks and
rewards of ownership are transferred to the buyer which generally
coincides when the goods are dispatched from the factory/stock
points/or delivered to customers as per the terms of the contract. The
revenue for the construction contract has been based on the basis of
percentage of completion method.
Provisions
A provision is recognized when the company has a present obligation as
a result of past events, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
Miscellaneous Expenditure
Equity share issue expenses have been disclosed under miscellaneous
expenditure to the extent not written off under other current assets.
The expenditure has been amortized and would be written off over a
period of three years.
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