Mar 31, 2013
A. Presentation and disclosure of financial statements:
During the year ended 31st March 2013, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles 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.
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.
Sales:
Sales are exclusive sales tax.
I. Tangible fixed assets:
Fixed assets, 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.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future enefits from the
existing asset beyond its previouly assessed standard of performance.
All other expenses 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 during which
such expenses are incurred.
Gains or losses arising from derecognition of fixed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and
loss when the asset is
Depreciation on tangible fixed assets:
Depreciation on fixed assets is provided on written down value method
at the rates and in Schedule XIV to the Companies Act, 1956.
f. Impairment of tangible assets:
The company assesses at each reporting date whether there is an
indication that an asset may be impaired. If any indication exists, the
company, estimates the asset''s recoverable amount, An asset''s
recoverable amount is the higher of an asset''s net selling price and
its value in use. Where the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired and is written
down to its recoverable amount In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. In determining net
selling price, recent market transactions are taken into account, if
available. If no such transactions can be identified, an appropriate I
valuation model is used.
Impairment losses of continuing operations, including impairment on
inventories, are recognized in the statement of profit and loss.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
An assessment is made at each reporting date as to whether there is any
indication that previously recognized impairment losses, may no longer
exist or may have decreased. If such indication exists, the company
estimates the asset''s recoverable amount. A previously recognized
impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset''s recoverable amount since the
last impairment loss was recognized. The reversal is limited so that
the carrying amount of the asset does not exceed its recoverable
amount, nor exceed the carrying amount that would have been determined,
net of depreciation, had no impairment loss been recognized for the
asset in prior years. Such reversal is recognized in the statement of
profit and loss.
g. Investments:
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term Investments.
On initial recognition,-all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of
cost and far value determined on an individual investment basis
Long-term investments are carried at cost However, provision for
diminution in value is made to recognizes a decline other than
temporary in the value of the investments.
On disposal of investment, the difference between its carrying amount
and net disposal proceeds is charged or credited to the statement of
profit and loss.
Inventories:
Raw materials and packing materials are valued at cost on FIFO basis
after providing for cost of obsolescence or depletion in value wherever
applicable. Work in progress is valued at raw material cost plus
pja^ojtjflA^f overhead. Finished goods are valued at lower of cost and
net realizable value. Cost for this purpose i^a^^*lfel«fA@faase and >
other costs incurred for bringing the inventories to their present
location and condition
i. Income taxes:
Tax expense comprises current tax & deferred tax. Deferred tax
resulting from timing difference between book and tax profits is
accounted for using the tax rates and laws that have been enacted as on
the Balance Sheet date. Deferred tax assets arising on the temporary
timing differences are recognised only if there is reasonable certainty
of realisation.
j. Earning per share:
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
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 effect of all dilutive potential equity shares.
k. Revenue Recongnition
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.
Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer, usually on delivery of
the goods. The company collects sales taxes and value added taxes (VAT)
on behalf of the pnvprnmpnl- anrl thprpfnrp thpsp arp nnt prnnnmir
hpnpfitt; flnwina tn thp mmnanv
Income from services
Revenue from maintenance contracts are recognized pro-rata over the
period of the contract or as and when services are rendered. The
company collects service tax on behalf of the government and,
therefore, it is not an economic
R. benefit flowing to the company. Hence, it is excluded from revenue.
Interest income
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
I. Transactions in Foreign Currencies:
Transactions are recorded at the exchange rates prevailing on the date
of transaction. Monetary assets and liablities related to foreign
currency transactions remaining unsettled at the end of the year are
translated at year end rates.The differances in translation of of
monetary assets and liablities and relised gains and losses on foreign
exchange transactions are recognised in the profit & loss account.
m. Retirement Benefits:
Contributions to the recognised Provident Fund are made at the
statutory rates and charged to the profit and loss account during the
year. Since none of the employees have completed five years of
continous service, no provision for gratuity has been made during the
year under referance in view of significant uncertainty of liablity
towards gratuity payment.
n. Borrowing Cost:
Interest and other costs in connection with the borrowing of the funds
to the extent related / attributed to the acquisition / construction of
qualifying fixed assets are capitalised up to the date when such assets
are ready for its intended use and other, borrowing costs are charged
to the Profit and Loss account.
Mar 31, 2012
1) BASIS OF ACCOUNTING
The accompanying financial statements have been prepared in accordance
with the historical cost convention and on accrual basis. These have
been prepared in accordance with the applicable accounting standards
issued by the institute of Chartered Account
2) REVENUE RECOGNITION
Sales are recognized on despatch of goods to customers and are recorded
net of trade discounts, rebates, etc. Revenue from service rendered is
recognized as the service is performed
3) FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The
company capitalises all direct cost relating to the acquisition and
installation of fixed assets.
Interest on borrowed funds ,if any , used to finance the acquisition of
fixed assets, is capitalised upto the date the assets are ready for
comercial use.
4) DEPRECIATION
Depreciation on Fixed Assets has been provided by written down value
method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
Depreciation on fixed assets added/ disposed off during the year ,is
provided on prorata basis for the period these have been put to use.
5) INVENTORIES
Stock of goods for trading, Raw Materials and Packing Materials are
Valued at Cost determined on FIFO basis.
6) BORROWING COST
Borrowing Cost, which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalized as part of the cost of the assets. Other
borrowing costs are recognised as an expense in the year in which these
are incurred.
7) INVESTMENTS
Long Term Investments are stated at Cost. Earning from Investments is
accounted for on receipt basis
8) FOREIGN CURRENCY TRANSACTIONS
Foreign currency transaction are being accounted for at the rates of
exchange prevailing at the date of transaction and subsequent gains or
losses are being accounted for in the Profit & Loss Account at the year
end except in cases where they relate to the acquisition of fixed
assets acquired from outside India, in which case they are adjusted in
the cost of the corresponding assets.
9) PROVISION FOR CURRENT & DEFERRED TAX
Provision for current Income Tax is made on taxable income under Income
Tax Act, 1961. Deferred Tax arising on account of "timing difference"
and which are capable of reversal in one or more subsequent period is
recognized using the tax rates and tax laws that are enacted or
substantially enacted. Deferred Tax asset is recognized only to the
extent there is reasonable certainty with respect to reversal of the
same in future years as a matter of prudence
Mar 31, 2010
1) BASIS OF ACCOUNTING
The accompanying financial statements have been prepared in accordance
with the historical cost convention and on accrual basis. These have
been prepared in accordance with the applicable accounting standards
issued by the institute of Chartered Account
2) REVENUE RECOGNITION
Sales are recognized on despatch of goods to customers and are recorded
net of trade discounts, rebates, etc. Revenue from service rendered is
recognized as the service is performed
3) FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The
company capitalises all direct cost relating to the acquisition and
installation of fixed assets.
Interest on borrowed funds ,if any , used to finance the acquisition of
fixed assets, is capitalised upto the date the assets are ready for
comercial use.
4) DEPRECIATION
Depreciation on Fixed Assets has been provided by written down value
method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
Depreciation on fixed assets added/ disposed off during the year ,is
provided on prorata basis for the period these have been put to use.
51 INVENTORIES
Stock of goods for trading, Raw Materials and Packing Materials are
Valued at Cost determined on FIFO basis.
6) BORROWING COST
Borrowing Cost, which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalized as part of the cost of the assets. Other
borrowing costs are recognised as an expense in the year in which these
are incurred.
7) INVESTMENTS
Long Term Investments are stated at Cost. Earning from Investments is
accounted for on receipt basis
8)FOREIGN CURRENCY TRANSACTIONS
Foreign currency transaction are being accounted for at the rates of
exchange prevailing at the date of transaction and subsequent gains or
losses are being accounted for in the Profit & Loss Account at the year
end except in cases where they relate to the acquisition of fixed
assets acquired from outside India, in which case they are adjusted in
the cost of the corresponding assets.
9) PROVISION FOR CURRENT & DEFERRED TAX
Provision for current Income Tax is made on taxable income under Income
Tax Act, 1961. Deferred Tax arising on account of "timing difference"
and which are capable of reversal in one or more subsequent period is
recognized using the tax rates and tax laws that are enacted or
substantially enacted. Deferred Tax asset is recognized only to the
extent there is reasonable certainty with respect to reversal of the
same in future years as a matter of prudence