Mar 31, 2015
A) Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles. 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 and 2013, The accounting policies
adopted in the preparation of financial statements are consistent with
those of previous year, except for the change in accounting policy as
explained below;
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) Sales (Revenue Recognition);
Sales include sales of products and services.
d) Fixed Assets and Depreciation:
Fixed Assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working condition for
the intended use, less accumulated depreciation. Interest on borrowings
attributable to new projects is capitalized and included in the cost of
fixed assets as appropriate.
Depreciation is provided on the useful life of the Assets in accordance
with the provisions of Section 205(2) of the companies act, 2013 at the
rates applicable in Schedule II of the said act.
As regards determining life of all assets, same has been taken based on
certificate issued by Apte and Associates, Chartered Engineers as per
his certificate dated 13.07.2015 Original purchase cost and
depreciation upto 31.03.2014 are taken from fixed assets register
maintained by the company in XLS form and current year depreciation is
determined on SLM basis on WDV as on 01.04.14 and based on remaining
useful life of an assets determined and certified by Apte &' Associates
In case of Plant And Machinery, life of each component is determined
from the year of addition irrespective of the life of main Machinery to
which they were fixed or attached to in the absence of information and
linkage thereof with the specific machinery. This work of linkage is
under working and same will be incorporated in the next Balance sheet.
e. Inventories:
Raw materials at cost (FIFO basis) are on exclusive method, WIP &
Finished Goods at cost.
f. Investments:
Investments that are readily realizable and intended to be held for not
more than a year from the date on which such investment are made 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.
However, provision for diminution in value is made to recognize a
decline other than temporary in the value of such investments.
Long-term investments are carried at cost.
g. Research and Development;
Recurring expenditure on Research and Development is charged to
revenue.
h. Retirement benefits:
a) For provision for gratuity & Leave Encashment, there are no changes
in Policy during the year.
b) Company's contribution to provident fund is charged to Profit & Loss
Account.
i. Interest on Borrowings;
The interest on working capital is charged against the profits for the
year in which it is incurred. -
j. Foreign Currency Transactions:
Foreign currency transactions are accounted at the exchange rates
prevailing at the date of the transaction. Gains and losses resulting
from the settlement of such transaction of monetary assets and
liabilities denominated in foreign currencies are recognized in the
Profit and Loss Account. Further monetary asset are not restated by
applying the exchange rate as on 31s1 March, 2015
k. Taxes on income:
Current tax is determined as the amount of tax payable in aspect of
taxable income for the period. Deferred Tax is recognized, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
l. 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 ['lability but discloses its existence in the
financial statements.
Mar 31, 2014
A) Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles. 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 and 2013. The accounting policies
adopted in the preparation of financial statements are consistent with
those of previous year, except for the change in accounting policy as
explained below:
Change in accounting policy
Inventory Valuation:
There is a change in method of valuation of inventory. The previous
practice followed by the Company for the valuation of inventory i.e.
valuation of Raw Materials on the basis of inclusive method. In the
current financial year the company has followed the exclusive method
i.e. excluding all taxes.
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) Sales (Revenue Recognition): Sales include sales tax, premium on
sale of import licence
d) Fixed Assets and Depreciation: Fixed Assets are stated at cost of
acquisition, including any attributable cost for bringing the asset to
its working condition for the intended use, less accumulated
depreciation. Interest on borrowings attributable to new projects is
capitalized and included in the cost of fixed assets as appropriate.
Depreciation is provided (except on the assets acquired up to 31.3.1983
where it is on written down value method) on straight line method in
accordance with the provisions of Section 205(2) (b) of the Companies
Act, 1956 at the rates specified in Schedule XIV of the said Act.
e) Inventories: Raw materials at cost (FIFO basis) are on exclusive
method, WIP & Finished Goods at cost.
f) Investments investments that are readily realizable and intended to
be held for not more than a year from the date on which such investment
are made 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. However, provision for diminution in value is made
to recognize a decline other than temporary in the value of such
investments. Long-term investments are carried at cost.
g) Research and Development: Recurring expenditure on Research and
Development is charged to revenue. h) Retirement benefits:
a) For provision for gratuity & Leave Encashment there are no changes
in Policy during the year as mentioned earlier.
b) Company''s contribution to provident fund is. charged to Profit &
Loss Account.
i) Interest on Borrowings: The interest on working capital is charged
against the profits for the year in which it is incurred.
j) Foreign Currency Transactions: Foreign currency transactions are
accounted at the exchange rates prevailing at the date of the
transaction. Gains and losses resulting from the settlement of such
transaction of monetary assets and liabilities denominated in foreign
currencies are recognized in the Profit and Loss Account. Further
monetary asset are not restated by applying the exchange rate as on
31st March, 2014.
k) Taxes on Income: Current tax is determined as the amount of tax
payable in respect of taxable income for the period. Deferred Tax is
recognized, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
I) 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.
3. (a) Consistent with the past practice, no provision has been made
for excise duty estimated at Rs. 6.24.468/- (Previous Year Rs.
7,40,235/-) on stock lying at the year end. Accordingly the said
amounts are not included in the inventory valuation. This has no effect
on the profit for the year. Though the said accounting treatment
differs from the revised "Guidance Note on Accounting treatment for
Excise Duty " issued by the ICAI.
(b) As compared to the previous practice followed by the company for
the valuation of raw material on the basis of inclusive method, the
management now decided to follow the exclusive method of valuation of
raw material i.e. without taking into all taxes, Consequently it impact
on closing stock is determined by company which comes to Rs. 7.00 Lacs
(Write in Bold figures). However on opening stock it''s impact is not
determined by a company.
Mar 31, 2012
A) Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles. 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 accounting policies adopted
in the preparation of financial statements are consistent with those of
previous year' except for the change in accounting policy explained
below:
Change in accounting policy
Presentation and disclosure of financial statements
During the year ended March 31' 2012' the revised Schedule VI notifi ed
under the Companies Act 1956' has become applicable to the Company' for
preparation and presentation of its consolidated 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 consolidated financial statements. The company
has also reclassified the previous year figures in accordance with the
requirements applicable in the current year.
Provisions for Leave Encashment: Company has changed policy relating to
Leave encashment with regard to staff/managers. As per which an
employee is eligible for max. of 15 days leave only if he has more than
60 days of accumulated leave. Accordingly company has made provision
for only 15 days. This was done based on assumption that an employee
will be availing of at least 30 days of leave during the year. This is
applicable to both staff as well as workers.
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 managementÃs 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. Sales (Revenue Recognition): Sales include excise duty' sales tax'
premium on sale of import licence' sale of scrap and exchange
difference arising on sale transactions.
d. Fixed Assets and Depreciation: Fixed Assets are stated at cost of
acquisition' including any attributable cost for brining the asset to
its working condition for the intended use' less accumulated
depreciation. Interest on borrowings attributable to new projects is
capitalized and included in the cost of fixed assets as appropriate.
Depreciation is provided (except on the assets acquired up to 31.3.1983
where it is on written down value method) on straight line method in
accordance with the provisions of Section 205(2) (b) of the Companies
Act' 1956 at the rates specified in Schedule XIV of the said Act.
e. Inventories: Raw materials at cost (FIFO basis) on inclusive
method' WIP & Finished Goods at cost.
f. Investments :Investments that are readily realizable and intended
to be held for not more than a year from the date on which such
investment are made 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. However' provision for diminution in
value is made to recognize a decline other than temporary in the value
of such investments Long-term investments are carried at cost.
g. Research and Development: Recurring expenditure on Research and
Development is charged to revenue. h. Retirement benefits:
a) Liability for gratuity is funded by annual payment to Life Insurance
Corporation of India on the basis of valuation as advised by actuarial
valuer. Provision is made for the difference in net present value of
liability as ascertained by actuarial valuer and value of fund as at
year end given by LIC.
b) Provision is made for liability towards Leave Encashment estimated
on the basis of accumulated leave' employeesà salary and Company
Policy. No provision is made for first 60days'provision is made only
for those employees who have leave encashment accumulated for more than
or equal to 75 days and above.
c) CompanyÃs contribution to provident fund is charged to Profit & Loss
Account.
i. Interest on Borrowings: The interest on working capital is charged
against the profits for the year in which it is incurred. Interest on
borrowings for capital assets is capitalized till the date of
commencement of commercial use of the asset.
j. Foreign Currency Transactions: Foreign currency transactions are
accounted at the exchange rates prevailing at the date of the
transaction. Gains and losses resulting from the settlement of such
transaction of monetary assets and liabilities denominated in foreign
currencies are recognized in the Profit and Loss Account. k. Taxes on
Income: Current tax is determined as the amount of tax payable in
respect of taxable income for the period. Deferred Tax is recognized'
on timing differences' being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
l. 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
Mar 31, 2011
(a) Basis of Accounting:
The Financial statements are prepared under the historical cost
convention and comply in all materials aspects with the applicable
accounting principles in India. Accounting standards notified under
sub-section 3C of section 211 of the Companies Act, 1956 and the other
relevant provisions of the Companies Act, 1956
(b) Sales (Revenue Recognition):
Sales include Excise Duty, Sales Tax, Premium on Sale of import
licence, Sale of scrap and exchange difference arising on Sale
transactions.
(c) Fixed Assets & Depreciation:
Fixed Assets are stated at cost of acquisition, including any
attributable cost or bringing the asset to its working condition for
the intended use, less accumulated depreciation, interest on borrowings
attributable to new projects is capitalized and included in the cost of
fixed assets as appropriate. Depreciation is provided (Except on the
Assets acquired upto 31.3.1983 where it is on written down value
method) on straight line method in accordance with the provisions of
Section 205(2)(b) of the Companies Act, 1956 at the rates specified in
Schedule XIV of the said Act.
(d) Inventories:
Raw materials at Cost (FIFO basis) on inclusive method, WIP & Finished
Goods at cost.
(e) Investments:
Long term Quoted investments are stated at cost. Unquoted long term
investments are valued at cost
(f) Research and Development:
Recurring expenditure on Research and Development is charged to
revenue.
(g) Retirements benefits:
a) Liability for Gratuity is funded by annual payment to Life Insurance
Corporation of India on the basis of valuation as advised by LIC.
Provision is also made for the difference in net present value of
Liability and value of fund as at year end.
b) Provision is made for Liability towards Leave Encashment estimated
on the basis of accumulated leave, employee's salary and other relevant
factors.
c) Company's contribution to provident fund is charged to Profit & Loss
Account.
(h) Interest on Borrowings:
The interest on working capital is charged against the profits for the
year in which it is incurred. Interest on borrowings for capital assets
is capitalized till the date of commencement of commercial use of the
asset.
(i) Foreign Currency Transaction:
Foreign currency transactions are accounted at the exchange rates
prevailing at the date of the transaction, Gains and losses resulting
from the settlement of such transaction of monetary assets and
liabilities denominated in foreign currencies, are recognized in the
Profit and Loss account.
(j) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred Tax is recognized, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
Mar 31, 2010
(a) Basis of Accounting: The Financial statements are prepared under
the historical cost convention and comply in all materials aspects with
the applicable accounting principles in India, accounting standards
notified under sub-section (3C) of Section 211 of the Companies Act,
1956 and the other relevant provisions of the Companies Act, 1956.
(b) Sales (Revenue Recognition): Sales include excise duty, sales tax,
premium on sale of import licence, sale of scrap and exchange
difference arising on sale transactions.
(c) Fixed Assets and Depreciation: Fixed Assets are stated at cost of
acquisition, including any attributable cost for bringing the asset to
its working condition for the intended use, less accumulated
depreciation. Interest on borrowings attributable to new projects is
capitalized and included in the cost of fixed assets as appropriate.
Depreciation is provided (except on the assets acquired up to 31.3.1983
where it is on written down value method) on straight line method in
accordance with the provisions of Section 205(2)(b) of the Companies
Act, 1956 at the rates specified in Schedule XIV of the said Act.
(d) Inventories: Raw materials at cost (FIFO basis) on inclusive
method, WIP & Finished Goods at cost.
(e) Investments: Long term quoted investments are stated at cost.
Unquoted long term investments are valued at cost. However, provision
for diminution in value is made to recognize a decline other than
temporary in the value of the quoted investments.
(f) Research and Development: Recurring expenditure on Research and
Development is charged to revenue.
(g) Retirement benefits:
a) Liability for gratuity is funded by annual payment to Life Insurance
Corporation of India on the basis of valuation as advised by LIC.
Provision is also made for the difference in net present value of
liability and value of fund as at year end.
b) Provision is made for liability towards Leave Encashment estimated
on the basis of accumulated leave, employees salary and other relevant
factors.
c) Companys contribution to provident fund is charged to Profit & Loss
Account.
(h) Interest on Borrowings: The interest on working capital is charged
against the profits for the year in which it is incurred. Interest on
borrowings for capital assets is capitalised till the date of
commencement of commercial use of the asset.
(i) Foreign Currency Transactions: Foreign currency transactions are
accounted at the exchange rates prevailing at the date of the
transaction. Gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies, are recognized in the
Profit and Loss Account.
(j) Taxes on Income: Current tax is determined as the amount of tax
payable in respect of taxable income for the period. Deferred Tax is
recognized, subject to the consideration of prudence in respect of
deferred tax assets, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.