Mar 31, 2015
Basis of preparation:
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rule, 2006, (as amended) and
the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention. The accounting policies adopted in the
preparation of financial statements are consistent with those of
previous year.
Use of Estimates:
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenue, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
Revenue Recognition:
Revenue is recognized on a proportionate basis as the acts are
performed(i.e. on the Percentage of Completion Method) in accordance
with the Guidance note for real Estate Developers Issued by Institute
of Chartered Accountant of India. Revenue is recognized only when
satisfactory level of construction is completed & Agreement to sale has
been executed. The Percentage Completion is determined based on
certification from architect. Determination of revenue under Percentage
of Completion method necessarily involves making estimates by company,
some of which are technical in nature. These estimates are relied upon
by auditor for determination of Stage of Completion, Projection of Cost
& Revenues for the project, Realization of Construction WIP/ Advances.
Taxation:
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act,
1961.Deferred Tax for timing difference between profits and book
profits is accounted for, using tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet Date. Deferred
Tax Assets/ Liabilities are recognized to the extent there is
reasonable certainty that these assets/liabilities can be realized/
accrued in future.
Preliminary Expenditure
Preliminary Expenses will be written off over a period of 5 years from
the year of commencement of business.
Fixed Asset / Work in Progress/ Intangibles:- Not Applicable, Since no
fixed assets are held.
Inventories:-
Inventories are valued at cost or net realizable value, Whichever is
lower. Moreover, inventories are certified by the management/ technical
person and same is incorporated in financial statement of accounts.
Provisions
A provision is recognized when the company has a present obligation as
a result of past event, 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.
Where the company expects some or all of a provision to be reimbursed,
for example under an insurance contract, the reimbursement is
recognized as a separate asset but only when the reimbursement is
virtually retain. The expense relating to any provision is presented in
the statement of profit and loss net of any reimbursement.
Contingent Liabilities
A contingent liabilities is a possible obligation that arise from past
events whose existence will be confirmed by the concurrency or non
occurrence of one or more uncertain future events beyond the control of
the company or a present obligation that is not recognized because it
is not probable that an outflow of resources will be required to settle
the obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized because it
cannot be measured reliably. The company does not recognize a
contingent liability.
Cash and Cash Equivalents
Cash and Cash Equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less.
Mar 31, 2013
Corporate Information
Rammaica India Limited (RMIL) was originally incorporated on 31st
March, 1981 as "Ram Decorative & Industrial Laminates Limited" and
obtained certificate of commencement of business on 1st May, 1981. The
name of the company was changed to Rammaica (India) Limited and fresh
Certificate was obtained on 13th July, 1992.The company has set up a
plant at Plot No.F-9, MIDC Industrial Ares, Tarapur, Maharashtra with a
capacity to manufacture 1500 tonnes per annum of Decorative Laminates
of various designs and thickness. The plant was commissioned during
1984 and the products are marketed under the brand name "RAMMAICA" and
"RAMOPAL". The in-house technology has been upgraded from time to time
and the Company''s products are well accepted and its brand names well
known in the market. RMIL, w.e.f. April 1, 1993 has taken over the
activities of its group company, Ramglas (India) Limited, engaged in
the manufacturing and marketing of Decorative Fibre glass reinforced
sheets under the brand name RAMGLAS.
Basis of Preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006 (as amended) and
the relevant provisions of the companies Act 1956. The Financial
statements have been prepared on an accrual basis. The accounting
policies adopted in the preparation of financial statements are
considered with those of previous year.
Summary of significant accounting policies
a. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
b. Tangible fixed assets
Fixed assets, except land and buildings are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
In case of revaluation of fixed assets, any revaluation surplus is
credited to the revaluation reserve, except to the extent that it
reverses a revaluation decrease of the same asset previously recognized
in the statement of profit and loss in which case the increase is
recognized in the statement of profit and loss. A revaluation deficit
is recognized in the statement of profit and loss, except to the extent
that it offsets an existing surplus on the same asset recognized in the
asset revaluation reserve.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
Other expense on existing fixed assets including day-to-day repair and
maintenance expenditure and cost of replacing parts are charged to the
statement of profit and loss for the period.
c. Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a Substantial period
of time to get ready for its Intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
d. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in value is made to recognize
a decline other than temporary in the value of the investments.
e. Inventories
The inventory of Raw Materials and Consumable Stores are valued at
cost, wherein cost is purchase price less Convert & Sales Tax Set Off.
The work-in-progress & Scrap is valued at cost or net realizable value
whichever is lower which comply with AS -2 issued by ICAI.
f. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized
Sale of goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on delivery of the goods. The company collects sales taxes and
value added taxes (VAT) on behalf of the government and, therefore
these are not economic benefits flowing to the company. Hence, they
excluded from revenue. Excise duty deducted from revenue (gross) is the
amount that is included in the revenue (gross) and not the entire
amount of liability arising during the year.
Income from services
Revenues from maintenance contracts are recognized pro-rata over the
period of the contract as and when services are rendered. The company
collects service tax on behalf of the government and, therefore it is
not an economic benefit flowing to the company. Hence it is excluded
from revenue.
Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" In the
statement of profit and loss.
Dividends
Dividend income is recognized when the company''s right to receive
dividend is established by the reporting date.
g. Retirement Benefit
a) Gratuity:-
Gratuity is accounted as per the amount paid to group Gratuity
insurance scheme to LIC of India.
b) Leave Encashment:-
Leave Salary is accounted as per actual leave earned as at the year
end.
h. Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income- tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred Income taxes reflect the impact of timing differences between
taxable income and accounting Income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred income tax
relating to items recognized directly in equity is recognized in equity
and not in the statement of profit and loss.
Deferred tax liabilities are recognized for taxable timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset to the extent
that it has become reasonably certain or virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain as the case may be that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain as the case may be that
sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period, i.e the period for which MAT credit is allowed to be
carried forward. In the year in which the company recognizes MAT credit
as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement." The
company reviews the "MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the specified
period.
i. Segment Reporting
The company is operating in single segment and hence segment wise
separate reporting as per AS 17 issued by ICAI is not required.
j. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders after deducting
preference dividends and attributable taxes by the weighted average
number of equity shares outstanding during the period. Partly paid
equity shares are treated as a fraction of equity share to the extent
that they are entitled to participate in dividends relative to a fully
paid equity share during the reporting period. The weighted average
number of equity shares outstanding during the period is adjusted for
events such as bonus issue bonus element in a rights issue, share
spilt, and reverse share split consolidation of shares that have
changed the number of equity shares outstanding without a corresponding
change in resources. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive
potential equity shares.
q. Provisions
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and are 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. Where the company
expects some or all of a provision to be reimbursed, for example under
an insurance contract, the reimbursement is recognized as a separate
asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of profit and
loss net of any reimbursement.
r. Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2012
A. Change in accounting policy.
Presentation and disclosure of financial statements
During the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. Except
accounting for dividend on investments in subsidiary companies, the
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation followed for
preparation of financial statements. However it has significant impact
on presentation and disclosures made in the financial statements. The
company has also reclassified the previous year figures in accordance
with the requirements applicable in the current year.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
c. Tangible fixed assets
Fixed assets, except land and buildings are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
In case of revaluation of fixed assets, any revaluation surplus is
credited to the revaluation reserve, except to the extent that it
reverses a revaluation decrease of the same asset previously recognized
in the statement of profit and loss in which case the increase is
recognized in the statement of profit and loss. A revaluation deficit
is recognized in the statement of profit and loss, except to the extent
that it offsets an existing surplus on the same asset recognized in the
asset revaluation reserve.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
Other expense on existing fixed assets including day-to-day repair and
maintenance expenditure and cost of replacing parts are charged to the
statement of profit and loss for the period.
d. Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a Substantial period
of time to get ready for its Intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
e. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in value is made to recognize a
decline other than temporary in the value of the investments.
f. Inventories
The inventory of Raw Materials and Consumable Stores are valued at
cost, wherein cost is purchase price less Cenvat & Sales Tax Set Off.
The work-in-progress & Scrap is valued at cost or net realizable value
whichever is lower which comply with AS -2 issued by ICAI.
g. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized
Sale of goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on delivery of the goods. The company collects sales taxes and
value added taxes (VAT) on behalf of the government and, therefore
these are not economic benefits flowing to the company. Hence. they
excluded from revenue. Excise duty deducted from revenue (gross) is the
amount that is included in the revenue (gross) and not the entire
amount of liability arising during the year.
Income from services
Revenues from maintenance contracts are recognized pro-rata over the
period of the contract as and when services are rendered. The company
collects service tax on behalf of the government and, therefore it is
not an economic benefit flowing to the company. Hence it is excluded
from revenue.
Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" In the
statement of profit and loss.
Dividends
Dividend income is recognized when the company's right to receive
dividend is established by the reporting date.
h. Retirement Benefit
a) Gratuity:-
Gratuity is accounted as per the amount paid to group Gratuity
insurance scheme to LIC of India.
b) Leave Encashment:-
Leave Salary is accounted as per actual leave earned as at the year
end.
i. Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred Income taxes reflect the impact of timing differences between
taxable income and accounting Income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred income tax
relating to items recognized directly in equity is recognized in equity
and not in the statement of profit and loss.
Deferred tax liabilities are recognized for taxable timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset to the extent
that it has become reasonably certain or virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes- down the carrying amount of
deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain as the case may be that sufficient future
taxable income will be available against which deferred tax asset can
be realized. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain as the case may be that
sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period. i.e the period for which MAT credit is allowed to be
carried forward. In the year in which the company recognizes MAT credit
as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement." The
company reviews the "MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the specified
period.
j. Segment Reporting
The company is operating in single segment and hence segment wise
separate reporting as per AS 17 issued by ICAI is not required.
k. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders after deducting
preference dividends and attributable taxes by the weighted average
number of equity shares outstanding during the period. Partly paid
equity shares are treated as a fraction of equity share to the extent
that they are entitled to participate in dividends relative to a fully
paid equity share during the reporting period. The weighted average
number of equity shares outstanding during the period is adjusted for
events such as bonus issue bonus element in a rights issue, share
spilt, and reverse share split consolidation of shares that have
changed the number of equity shares outstanding without a corresponding
change in resources. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive
potential equity shares.
q. Provisions
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and are 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. Where the company
expects some or all of a provision to be reimbursed, for example under
an insurance contract, the reimbursement is recognized as a separate
asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of profit and
loss net of any reimbursement.
r. Contingent liabilities
A contingent Iiability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
s. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2010
GENERAL
1) The Financial statements are prepared on the basis of historical
cost convention (except Fixed Assets which have been revalued (as per
note B.7).
2) The accounts have been prepared on principles applicable to a "Going
Concern" despite viability of restarting and continuing operations
remaining in question / doubt.
3) The company is accounting on accrual basis.
VALUATION OF INVENTORIES
1) The inventories of raw materials, stores, spares, and stock in
process have been valued at cost.
2) Finished goods - Not applicable.
INVESTMENTS
Investments are stated at cost.
FIXED ASSETS
Fixed assets were revalued on 31.03,1992 at fair market value by
creating Revaluation Reserve,
DEPRECIATION
No provision has been made for depreciation as the company has not
carried out any business activity during the year.
FOREIGN CURRENCY TRANSACTIONS There are no foreign currency
transactions,
CONTINGENT LIABILITIES & PROVISIONS
Contingent liabilities, if any are disclosed in notes on accounts,
below,
TAXES ON INCOME
No Provision is made for deferred tax asstes though the company has
accumlated losses of prior years, as in the opinion of management there
is no virtual certainity of taxable income in near future.