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Accounting Policies of Ravindra Energy Ltd. Company

Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements have been presented for the year ended March 31, 2014 along with comparative information for the year ended March 31, 2013. The accompanying financial statements have been prepared on a going concern basis under the historical cost convention on the accrual basis of accounting in conformity with accounting principles generally accepted in India (Indian GAAP). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year, except as stated here under.

2. USE OF ESTIMATES

In preparing the company''s financial statement in conformity with accounting principles generally accepted in India, the company''s management is required to make estimates and assumption that effect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reporting period; actualresult could differ from those estimates.

3. INVENTORY

Inventories are stated at the lower of cost and net realizable value. Costs of inventories are determined on a weighted average basis. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

4. MISCELLANEOUS EXPENDITURE

Preliminary expenses as on the date of commencement of commercial operations will be written off over a period of five years. The Pre- operative expenses relating to the projects shelved will be written off in the year the project is shelved.

5. PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured only by using substantial degree of estimation, if

i. The company has a present obligation as result of past event.

ii. A probable outflow of resources is expected to settle the obligation and.

iii. The amount of obligation can be easily estimated. Contingent liability is disclosed in the case of.

i. A present obligation arising from past event, when it is not probable that an outflow of resources will be required to settle the obligation.

ii. A possible obligation, unless the probability of outflow of resources is remote.

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the company not acknowledged as debts are disclosed as contingent liabilities. In respect of statutory matters, contingent liabilities are disclosed only for those demand(s) that are contested by the company.

Contingent Assets are neither recognized, nor disclosed.

6. EARNINGS PER SHARE

Basic earnings per share are 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. The weighted average numbers of equity shares outstanding during the period are adjusted for events of bonus issue.

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.

7. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any cost attributable to bringing the asset to its working condition for its intended use.

8. DEPRECIATION

Depreciation is provided at the rates in the manner prescribed in Schedule XIV of the Indian Companies Act, 1956. The Companies Assets is depreciated under straight line method.

9. 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 or fair value/ market value, determined on an individual investment basis. Long-term investments are carried at cost. However, provision for dimunition other than temporary in value is made to recognize the decline.

10. FOREIGN CURRENCY TRANSACTION

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between reporting currency and the foreign currency at the date of transaction.

Conversion

Foreign currency monetary items are reported using the closing rate at the date of the Balance Sheet. Non- monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction and investments in foreign companies are recorded at the exchange rates prevailing on the date of making the investments.

Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the period or reported in previous financial statements, are recognized as income or as expenses in the period in which they arise, except for loans denominated in foreign currencies utilized for acquisition of fixed assets until the date of capitalization where they exchange gains/losses are adjusted to the cost of such assets.

11. RETIREMENT BENEFITS

Contribution in respect of provident fund are made to the appropriate authorizes/trust set up by the Company for the purpose and charged to profit and loss account. Provisions for liabilities in respect of leave encashment benefits and gratuity are made based on actuarial valuation made by an independent actuary as on the balance sheet date.

12. INCOME TAX

Tax expenses comprise both current and deferred taxes.

Deferred income tax reflects the impact of current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized 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.


Mar 31, 2013

A. Basis of Presentation:

The accompanying financial statements have been presented for the year ended March 31,2013 along with comparative information for the year ended March 31,2012. The accompanying financial statements have been prepared on a going concern basis under the historical cost convention, on the accrual basis of accounting in conformity with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

b. Use of estimates:

In preparing the Company''s financial statements in conformity with accounting principles generally accepted in India, the Company''s management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, if any and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenue and expenses during the reporting period. The actual results could differ from such estimates.

c. Inventories:

Traded goods are valued at lower of cost and net realizable value.

d. Revenue Recognition:

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer.

e. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any cost attributable to bringing the asset to its working condition for its intended use.

f. Depreciation:

Depreciation is provided at the rates and in the manner prescribed in Schedule XIV of the Indian Companies Act, 1956. The Companies Assets is depreciated under straight line method. No depreciation is provided on assets held for sale.

g. Retirement Benefits:

Contributions in respect of provident fund and gratuity are made to the appropriate authorities/trust set up by the Company for the purpose and charged to profit and loss account. Provisions for liabilities in respect of leave encashment benefits are made based on actuarial valuation made by an independent actuary as at the balance sheet date.

h. Foreign Currency Transactions:

Initial Recognition:

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion:

Foreign currency monetary items are reported using the closing rate at the date of the Balance Sheet.

Exchange Differences:

Exchange differences arising on the settlement of monetary items or on reporting Company''s monetary items at rates different from those at which they were initially recorded during the period or reported in previous financial statements, are recognized as income or as expenses in the period in which they arise.

I. Income Tax:

Tax expense comprises both current and deferred taxes.

Deferred income tax reflects the impact of current period timing differences between income/(loss) as per Indian Income Tax Laws and income/(loss) as per the books of accounts, for the period and reversal of timing differences of earlier periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized 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.

The carrying amount of Deferred tax assets is reviewed at each balance sheet date and reduced by the extent that it is no longer probable that sufficient taxable profit will be available to allow all or a part of the aggregate deferred tax asset to be utilized.

j. Segment Reporting:

The Company has identified only one business segment and geographical segment during the reporting period. Accordingly, segment information as per AS-17 is not required to be disclosed, considering the fact that there is only one identifiable business segment and geographical segment, which is also in consistency with Accounting Standard Interpretation (ASI) 20 (Revised) namely ''Disclosure of Segment Information'' issued by the Institute of Chartered Accountants of India.

k. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if:

- The Company has a present obligation as a result of a past event:

- A probable outflow of resources is expected to settle the obligation: and

- The amount of the obligation can be easily estimated.

Contingent Liability is disclosed in the case of:

- A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

- A possible obligation, unless the probability of outflow of resources is remote.

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the Company not acknowledged as debts, if any, are disclosed as contingent liabilities. In respect of statutory matters, contingent liabilities are disclosed only for those demand(s) that are contested by the Company.

Contingent assets are neither recognized nor disclosed:

I. Impairment of Assets:

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine:

a. The provision for impairment loss, if any, required or

b. The reversal, if any, required of impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

m. Cash Flow Statement:

Cash Flow Statements are prepared in accordance with ''Indirect Method'' as explained in the Accounting Standard on Cash Flow Statements (AS-3) notified under the Companies (Accounting Standards) Rules, 2006.

Cash and Bank Balances and current investments, if any that have insignificant risk of change in value, which have durations up to three months, are included in the Company''s Cash and Cash Equivalents in the Cash Flow Statement.

n. Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit/(loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.


Mar 31, 2012

A. BASIS OF PRESENTATION

The accompanying financial statements have been presented for the year ended March 31, 2012 along with comparative information for the year ended March 31, 2011. The accompanying financial statements have been prepared on a going concern basis under the historical cost convention, on the accrual basis of accounting in conformity with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

b. USE OF ESTIMATES

In preparing the Company's financial statements in conformity with accounting principles generally accepted in India, the Company's management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, if any, and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenue and expenses during the reporting period. The actual results could differ from such estimates.

c. INVENTORIES

Traded goods are valued at lower of cost or net realizable value.

d. REVENUE RECOGNITION

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer.

e. FOREIGN CURRENCY TRANSACTIONS

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate at the date of the Balance Sheet.

Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting Company's monetary items at rates different from those at which they were initially recorded during the period or reported in previous financial statements, are recognized as income or as expenses in the period in which they arise.

f. INCOME TAX

Tax expense comprises both current and deferred taxes.

Deferred income tax reflects the impact of current period timing differences between income/(loss) as per Indian Income Tax Laws and income/(loss) as per the books of accounts, for the period and reversal of timing differences of earlier periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized 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.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced by the extent that it is no longer probable that sufficient taxable profit will be available to allow all or a part of the aggregate deferred tax asset to be utilized.

g. SEGMENT REPORTING

The Company has identified only one business segment and geographical segment during the reporting period. Accordingly, segment information as per AS-17 is not required to be disclosed, considering the fact that there is only one identifiable business segment and geographical segment, which is also in consistency with Accounting Standard Interpretation (ASI) 20 (Revised) namely 'Disclosure of Segment Information' issued by the Institute of Chartered Accountants of India.

h. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if;

- The Company has a present obligation as a result of a past event ;

- A probable outflow of resources is expected to settle the obligation ; and

- The amount of the obligation can be easily estimated.

Contingent Liability is disclosed in the case of :

- A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

- A possible obligation, unless the probability of outflow of resources is remote.

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the Company not acknowledged as debts, if any, are disclosed as contingent liabilities. In respect of statutory matters, continent liabilities are disclosed only for those demand(s) that are contested by the Company.

Contingent assets are neither recognized nor disclosed.

i. CASH FLOW STATEMENT

Cash Flow Statements are prepared in accordance with 'Indirect Method' as explained in the Accounting Standards on Cash Flow Statements (AS-3) notified under the Companies (Accounting Standards) Rules, 2006. Cash and bank balances and current investments, if any, that have insignificant risk of change in value, which have durations up to three months, are included in the Company's cash and cash equivalents in the Cash Flow Statement.

J. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit/ (loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.


Mar 31, 2010

A. Basis of Presentation:

The accompanying financial statements have been prepared on a going concern basis under the historical cost convention, on the accrual basis of accounting in conformity with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

b. Use of estimates:

In preparing the Companys financial statements in conformity with accounting principles generally accepted in India, the Companys management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, if any and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenue and expenses during the reported period. The actual results could differ from such estimates.

c. Income Tax:

Tax Expense comprises both current and deferred taxes.

Deferred income tax reflects the impact of current period timing differences between income/(loss) as per Indian Income Tax Laws and income/(loss) as per the books of accounts, for the period and reversal of timing differences of earlier periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized 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.

d. Miscellaneous Expenditure:

Pre-Operative Expenses would be written over a period of five years from the year of commencement of commercial production.

e. Provisions, contingent liabilities and contingent assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if -

* The Company has a present obligation as a result of a past event

* A probable outflow of resources is expected to settle the obligation and

* The amount of the obligation can be easily estimated

Contingent Liability is disclosed in the case of -

* A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

* A possible obligation, unless the probability of outflow of resources is remote.

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the Company not acknowledged as debts are disclosed as contingent liabilities. In respect of statutory matters, contingent liabilities are disclosed only for those demand(s) that are contested by the Company.

Contingent assets are neither recognized nor disclosed.

f. Earnings per share:

Basic earnings per share are calculated by dividing the net profit/(loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.




Mar 31, 2009

I) Method of Accounting:

The Books of Accounts are maintained on accrual basis.

ii) Treatment of Contingent Liabilities:

Contingent liabilities are disclosed by way of note to the accounts.

iii) Inventory:

The Inventory is valued at cost or market value whichever is lower.

iv) Investments:

Long-term investments are at cost. Cost is inclusive of brokerage but net of pre-acquisition income Provision for Diminution in value of Investment is made, if in the opinion of the Management.

v) Taxation

a) Income Tax expense comprises of the current tax and deferred tax charge or credit.

b) Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing difference are recognised only to the extent there is a reasonable certainty of its realisation.

c) At each balance sheet date, the carrying amount of deferred tax asset is reviewed to reassure realisation.

 
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