Mar 31, 2014
1.03 The Company has only one class of shares namely equity shares
comprising of nominal value of Rs 10 per equity shares. Each holder of
equity shares is entitled to one vote per share. The shareholders have
the right to receive interim dividends, if any, declared by the Board
of Directors and final dividends proposed by the Board of Directors and
approved by the shareholders. In the event of liquidation of the
Company, the holders of equity shares will be entitled to receive any
of the remaining assets of the Company after distribution of
preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders. The equity
shareholders have all other rights as available to the equity
shareholders as per the provisions of the Companies Act, 1956, read
together with the Memorandum of Association and Articles of Association
of the Company as applicable.
1.04 Out of 49,70,000 Equity shares issued subscribed and paid up,
13,60,000 Equity shares of Rs 10/- each have been issued and allotted
as fully paid bonus shares on 29th December 2007 by capitalisation of
General Reserves.
4.01 Short term borrowings from Banks represents working capital
borrowings by way of cash credit repayable on demand. They are secured
by hypothecation of raw-materials, work in progress, finished goods,
book debts and a part of plant and machineries, and additionally
secured by equitable mortgage by deposit of title deeds of land and
personal guarantees of promoter directors.
4.02 The Company has not accepted any deposits from public. The
deposits represents unsecured security deposits from dealers which will
be retained with the Company till such time the dealership arrangement
continues.
4.03 The Company has not borrowed any funds from related parties.
5.01 Out of the total amount shown under sundry creditors, an amount of
Rs 725482 is due to two small scale industrial unit which exceeds Rs
100,000 and which are due for more than 30 days. Names of the small
scale industrial undertakings (as compiled by the Company based on the
information available and relied upon by the Auditors) to whom the
Company owe a sum which is outstanding for more than 30 days are as
follows:
21.1. BASIS OF PREPARATION
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - non current classification of
assets and liabilities.
21.2. SYSTEM OF ACCOUNTING :
i) The Company generally follows the mercantile system of accounting
and recognizes income and expenditure on an accrual basis except those
with significant uncertainties.
ii) Financial statements are based on historical cost. These costs are
not adjusted to reflect the impact of the changing value in the
purchasing power of money.
iii) The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumption that affect the reported amounts of assets,
liabilities, revenue and expenses and disclosure of contingent assets
and liabilities. The estimates and assumptions used in the accompanying
financial statements are based upon management''s evaluation of the
relevant facts and circumstances as of the date of the financial
statements. Actual results may differ from the estimates and
assumptions used in preparing the accompanying financial statements.
Any variation to accounting estimates are recognised prospectively in
current and future periods.
21.3. FIXED ASSETS AND DEPRECIATION:
a. FixedAssets are stated at cost less depreciation, Costs comprise of
cost of acquisition, borrowing cost, cost of improvement and any
attributable cost of bringing the asset to condition for its intended
use.
b. Depreciation on tangible assets is provided in accordance with the
provisions of Schedule XIV to the Companies Act, 1956, on "Written
Down Value" method.
c. Intangible Assets are amortized over their useful life not exceeding
ten years.
21.4. FOREIGN CURRENCY TRANSACTIONS :
Foreign Currency transactions are initially recorded at exchange rates
prevailing on transaction dates. All foreign currency loans, current
assets and current liabilities outstanding on the date of Balance Sheet
are converted at the appropriate rates of exchange prevailing on the
date of the Balance Sheet except those covered by forward contracts if
any, which are accounted for at the contracted rate representing the
amount required to meet the liability. Exchange difference arising
from foreign currency fluctuations are dealt with in the Statement of
Profit and Loss.
Derivative instrument to hedge foreign exchange exposures are simulated
for maturity / closure at the close of the year. Losses arising on such
simulation on account of fluctuations in exchange rates during the
reporting period are recognised in the Statement of Profit and Loss.
Gains, if any, are postponed for a recognition on final determination.
21.5. INVESTMENTS :
Long term investments are stated at cost. A provision for diminution is
made to recognize a decline, other than temporary, in the value of Long
Term Investments. Short term investment are stated at lower of cost or
fair value.
21.6. INVENTORY VALUATION :
Inventories are val ued as under:
Raw Materials, packing materials and stores and spares at cost.
Finished Products at lower of cost or net realizable value.
21.7. SALES :
i) Domestic sales are accounted for when dispatched from the point of
sale, consequent to property in goods being transferred.
ii) Export sales for exports are accounted on the basis of date of Bill
of Lading.
21.8. EXPORT INCENTIVES :
Export incentives are accounted for on export of goods if the
entitlements can be estimated with reasonable accuracy and conditions
precedent to claim are fulfilled.
21.9. OTHER INCOME:
i) Other operating revenues are accounted on accrual basis.
ii) Interest income is accounted on accrual basis.
iii) Dividend income is accounted when right to receive payment is
established.
21.10 RETIREMENT BENEFITS :
a. Provident Fund:
Company''s contributions during the year towards Government administered
Provident Fund, Family Pension Fund and Labour Welfare Fund are charged
to the Profit & Loss Account as incurred.
b. Gratuity :
The Gratuity is evaluated as on the date of Balance Sheet as provided
under the Payment of Gratuity Act and the amount is shown as liability
payable.
c. Others: Any other employee benefit payments are accounted for on
cash or accrual basis in the year of occurrence of the event giving
rise to such liability.
21.11. LEASES:
Lease arrangements where the risks and rewards incident to ownership of
an asset substantially vest with the lessor are recognized as operating
leases. Lease rents under operating leases are recognized in the
Profit & Loss Account on accrual basis.
21.12. BORROWING COST :
Borrowing cost include interest, fees and other charges incurred in
connection with the borrowing of funds and is considered as revenue
expenditure for the year in which it is incurred. Borrowing cost
attributed to the acquisition/improvement of qualifying capital assets
and incurred till the commencement of commercial use of the assets is
capitalized as cost of the assets.
21.13. TAXATION :
Provision for Taxation is made on the basis of the taxable profits
computed for the current accounting period in accordance with the
Income TaxAct, 1961. Deferred tax resulting from timing difference
between book profits and tax profits is accounted for at the applicable
rate of tax to the extent the timing differences are expected to
crystallise, in case of deferred tax liabilities with reasonable
certainty and in case of deferred tax assets with virtual certainty
that there would be adequate future taxable income against which
deferred tax assets can be realised.
21.14. IMPAIRMENT OF ASSETS :
The Company tests for impairments at the close of the accounting period
if and only if there are indicators that suggest a possible reduction
in the recoverable value of an asset. If the recoverable value of
asset, i.e. the net realizable value or the economic value in use of a
cash generating unit is lower than the carrying amount of the asset,
the difference is provided for as impairment. However, if subsequently
the position reverses and the recoverable amount becomes higher than
the then carrying value, the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.
21.15. PROVISIONS :
Necessary provisions are made for present obligations that arise out of
past events prior to the Balance Sheet date entailing future outflow of
economic resources. Such provisions reflect best estimates based on
available information.
Mar 31, 2012
1.1.BASIS OF PREPARATION
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - noncurrent classification of
assets and liabilities.
1.2.SYSTEM OF ACCOUNTING :
i) The Company generally follows the mercantile system of accounting
and recognizes income and expenditure on an accrual basis except those
with significant uncertainties.
ii) Financial statements are based on historical cost. These costs are
not adjusted to reflect the impact of the changing value in the
purchasing power of money.
iii) The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumption that affect the reported amounts of assets,
liabilities, revenue and expenses and disclosure of contingent assets
and liabilities.
The estimates and assumptions used in the accompanying financial
statements are based upon management's evaluation of the relevant
facts and circumstances as of the date of the financial statements.
Actual results may differ from the estimates and assumptions used in
preparing the accompanying financial statements. Any variation to
accounting estimates are recognized prospectively in current and future
periods.
1.3. FIXED ASSETS AND DEPRECIATION :
a. Fixed Assets are stated at cost less depreciation, Costs comprise
of cost of acquisition, borrowing cost, cost of improvement and any
attributable cost of bringing the asset to condition for its intended
use.
b. Depreciation on tangible assets is provided in accordance with the
provisions of Schedule XIV to the Companies Act, 1956, on "Written
Down Value" method.
c. Intangible Assets are amortized over their useful life not
exceeding ten years.
1.4.FOREIGN CURRENCY TRANSACTIONS :
Foreign Currency transactions are initially recorded at exchange rates
prevailing on transaction dates. All foreign currency loans, current
assets and current liabilities outstanding on the date of Balance Sheet
are converted at the appropriate rates of exchange prevailing on the
date of the Balance Sheet except those covered by forward contracts if
any, which are accounted for at the contracted rate representing the
amount required to meet the liability. Exchange difference arising from
foreign currency fluctuations are dealt with in the Statement of Profit
and Loss.
Derivative instrument to hedge foreign exchange exposures are simulated
for maturity / closure at the close of the year. Losses arising on such
simulation on account of fluctuations in exchange rates during the
reporting period are recognized in the Statement of Profit and Loss.
Gains, if any, are postponed for a recognition on final determination.
1.5. INVESTMENTS :
Long term investments are stated at cost. A provision for diminution is
made to recognize a decline, other than temporary, in the value of Long
Term Investments. Short term investment are stated at lower of cost or
fair value.
1.6.INVENTORY VALUATION :
Inventories are valued as under:
Raw Materials, packing materials and stores and spares at cost.
Finished Products at lower of cost or net realizable value.
1.7. SALES :
i) Domestic sales are accounted for when dispatched from the point of
sale, consequent to property in goods being transferred.
ii) Export sales for exports are accounted on the basis of date of Bill
of Lading.
1.8. EXPORT INCENTIVES :
Export incentives are accounted for on export of goods if the
entitlements can be estimated with reasonable accuracy and conditions
precedent to claim are fulfilled.
1.9.OTHER INCOME:
I Other operating revenues are accounted on accrual basis.
Ii Interest income is accounted on accrual basis.
Iii Dividend income is accounted when right to receive payment is
established.
1.10 RETIREMENT BENEFITS :
a. Provident Fund:
Company's contributions during the year towards Government
administered Provident Fund, Family Pension Fund and Lab our Welfare
Fund are charged to the Profit & Loss Account as incurred.
b. Gratuity :
The Gratuity is evaluated as on the date of Balance Sheet as provided
under the Payment of Gratuity Act and the amount is shown as liability
payable.
c. Others:
Any other employee benefit payments are accounted for on cash or
accrual basis in the year of occurrence of the event giving rise to
such liability.
1.11.LEASES:
Lease arrangements where the risks and rewards incident to ownership of
an asset substantially vest with the less or are recognized as operating
leases. Lease rents under operating leases are recognized in the Profit
& Loss Account on accrual basis.
1.12. BORROWING COST :
Borrowing cost include interest, fees and other charges incurred in
connection with the borrowing of funds and is considered as revenue
expenditure for the year in which it is incurred. Borrowing cost
attributed to the acquisition/ improvement of qualifying capital assets
and incurred till the commencement of commercial use of the assets is
capitalized as cost of the assets.
1.13.TAXATION :
Provision for Taxation is made on the basis of the taxable profits
computed for the current accounting period in accordance with the
Income Tax Act, 1961. Deferred tax resulting from timing difference
between book profits and tax profits is accounted for at the applicable
rate of tax to the extent the timing differences are expected to
crystallize, in case of deferred tax liabilities with reasonable
certainty and in case of deferred tax assets with virtual certainty
that there would be adequate future taxable income against which
deferred tax assets can be realized.
1.14. IMPAIRMENT OF ASSETS :
The Company tests for impairments at the close of the accounting period
if and only if there are indicators that suggest a possible reduction
in the recoverable value of an asset. If the recoverable value of
asset, i.e. the net realizable value or the economic value in use of a
cash generating unit is lower than the carrying amount of the asset,
the difference is provided for as impairment. However, if subsequently
the position reverses and the recoverable amount becomes higher than
the then carrying value, the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.
1.15. PROVISIONS :
Necessary provisions are made for present obligations that arise out of
past events prior to the Balance Sheet date entailing future outflow of
economic resources. Such provisions reflect best estimates based on
available information.
1.16.CONTINGENT LIABILITIES
A disclosure for contingent liability is made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
present obligation that the likelihood of outflow of resources is
remote, no provision or disclosure is made.
Mar 31, 2010
1. We have audited the attached Balance Sheet of Rasi Electrodes
Limited as at 31st March 2010, the annexed Profit and Loss Account for
the year ended on 1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The Company prepares its financial statements under the historical cost
convention in accordance with generally accepted accounting principles
(GAAP) and provisions of the Companies Act, 1956 as adopted
consistently by the Company.
1.2 INCOME & EXPENDITURE
All Income and Expenditure having a material bearing on the Financial
Statement are accounted for on accrual basis.
1.3 SALES
Sales comprises of Sale of Goods net of sales tax.
1.4 RETIREMENT BENEFITS
Contribution to Provident fund is made monthly, at a predetermined
rate, to the provident fund organisation and accounted on an accrual
basis. The gratuity is evaluated at the year end as provided under the
payment of the Gratuity Act.
1.5 FIXED ASSETS & DEPRECIATION
Fixed Assets are stated at cost of acquisition minus the accumulated
depreciation. Direct costs are capitalised till the assets are ready to
be put to use. These costs include financing costs relating to specific
borrowing attributable to fixed assets and Depreciation has been
provided as per rates specified in the Companies Act on written down
value.
1.6 INVESTMENT
Investments being long term investments are valued at cost.
1.7 CURRENT ASSETS
Inventories are certified by. a Director and are valued at Cost or
Market price whichever is lower. All accounts receivable are unsecured
and are considered good.
1.8 CONTINGENT LIABILITIES
Contingent Liabilities are generally not provided for in the accounts
and shown separately in Notes on accounts.
1.9 DERIVATIVE INSTRUMENTS
Derivative transactions of commodities and foreign exchange contracts
are accounted for on their settlement and accordingly the gains /
losses arising there from are recognized in the Profit & Loss Account
as and when the settlement takes place in accordance with the terms of
the respective contracts. The open positions outstanding as on the end
of the year is shown as contingent liability not provided for in the
books of accounts.
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