Mar 31, 2014
A. Basis of Preparation of Financial Statements
The financial statements are prepared on historical cost convention in
accordance with the Generally Accepted Accounting Principles (GAAP) and
applicable accounting standards issued by the Institute of Chartered
Accountants of India and relevant provisions of Companies Act, 1956 and
on the basis of going concern .
B. Fixed Assets
I) Fixed assets are stated at cost of acquisition including taxes,
duties and other direct and indirect expenses incidental to acquisition
and installation / construction.
II) The carrying amount of assets is reviewed at each balance sheet date
to determine if there is any indications of impairment thereof, based on
external /internal factors. Impairment loss has been recognized and
charged to Statement of profit & loss .
C. Depreciation and Amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
D. Impairment of Assets
The company is making an assessment whether any indication exists that
an asset has been impaired at the end of the year. If any such
indication exists, an impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in the books of accounts.
E. Investments
Long term investments are valued at cost unless there is a decline in
value other than temporary. Current investments are stated at lower of
Cost or Fair Value.
F. Inventories
Inventories are valued at the lower of cost and the net realisable
value.
G. Revenue Recognition
The company follows the mercantile system of accounting and recognizes
profit or loss on that basis.
H. Employee Benefits
The Company has provided the provision for the gratuity and charges to
revenue. Provident /Pension Fund applicable.
I. Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction
of qualifying assets are capitalized as part of the cost of such assets.
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. Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.Deferred tax is recognised on timing differences, being the
differences between the taxable income and the accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and the
tax laws enacted or substantially enacted as at the reporting date.
Deferred tax liabilities are recognised for all timing differences.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognised only if there is virtual certainty that
there will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
K. Provisions and contingencies
Contingent liabilities, if material, are disclosed by way of notes,
contingent assets are not recognized or disclosed in the financial
statements, A provision is recognized when an enterprise has a present
obligation as a result of past event(s} and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation(s}, in respect of which a reliable estimate can be
made for the amount of obligation.
Mar 31, 2012
A Basis of Preparation of Financial Statements
The financial statements are prepared on historical cost convention in
accordance with the Generally Accepted Accounting Principles (GAAP) and
applicable accounting standards issued by the Institute of Chartered
Accountants of India and relevant provisions of Companies Act, 1956 and
on the basis of going concern .
B Fixed Assets
I) Fixed assets other than plant and machinery and building(which are
held for disposal) are stated at cost of acquisition including taxes,
duties and other direct and indirect expenses incidental to acquisition
and installation / construction.The plant and machinery and building
are held for disposable and are stated at realizable value.
II) The carrying amount of assets is reviewed at each balance sheet
date to determine if there is any indications of impairment thereof,
based on external /internal factors. Impairment loss has been
recognized and charged to Statement of profit & loss .
III) Depreciation on fixed assets other than Plant & Machinery and
Building held for disposal is provided on straight line method in the
manner and at the rates specified in schedule XIV/No.GSR/756(E) Dated
16 Dec. 1992. In respect of plant and machinery & building held for
disposal no depreciation is provided and only the impairment loss is
provided.
C Depreciation and Amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
D Impairment of Assets ''
The company is making an assessment whether any indication exists that
an asset has been impaired at the end of the year. If any such
indication exists, an impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in the books of accounts.
E Investments
Long term investments are valued at cost unless there is a decline in
value other than temporary. Current investments are stated at lower of
Cost or Fair Value.
F Inventories
Inventories are valued at the lower of cost and the net realisable
value.
G Revenue Recognition
The company follows the mercantile system of accounting and recognizes
profit or loss on that basis.
H Employee Benefits
The Company has provided the provision for the gratuity and charged to
revenue. Provident /Pension Fund are not applicable.
I Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. 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 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.Deferred tax is recognised on timing differences, being the
differences between the taxable income and the accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and
the tax laws enacted or substantially enacted as at the reporting date.
Deferred tax liabilities are recognised for all timing differences.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognised only if there is virtual certainty
that there will be sufficient future taxable income available to
realise such assets. Deferred tax assets are recognised for timing
differences of other items only to the extent that reasonable certainty
exists that sufficient future taxable income will be available against
which these can be realised. Deferred tax assets and liabilities are
offset if such items relate to taxes on income levied by the same
governing tax laws and the Company has a legally enforceable right for
such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
K Provisions and contingencies
Contingent liabilities, if material, are disclosed by way of notes,
contingent assets are not recognized or disclosed in the financial
statements, A provision is recognized when an enterprise has a present
obligation as a result of past event(s} and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation(s), in respect of which a reliable estimate can
be made for the amount of obligation.