Mar 31, 2015
ACCOUNTING CONCEPTS:
The Company follows mercantile system of accounting, and recognises
income and expenses on accrual basis that are of significant nature.
The financial statement have been prepared to comply in all material
respect with the mandatory Accounting standards issued by the Institute
of Chartered Accountants of India, in accordance with Indian Generally
Accepted Accounting Policies and as per the provision of the Companies
A 2013.
FIXED ASSETS:
Fixed Assets are stated at cost (net of Cenvat & VAT Credit) of
acquisition/construction less accumulated depreciation and impairment
loss. Cost includes direct expenses as well as clearly identifiable
indirect expenses incurred to bring the assets to their working
condition for its intended use, net of CENVAT and vAt recoverable.
DEPRECIATION:
* Depreciation on the Fixed assets has been provided on Straight Line
basis as per the provision of Section 123 of the Companies Act 2013, at
the rates and in the manner specified in Schedule II to the Companies
Act 2013.
* Individual assets of value less than Rs.5000 are depreciated in the
year of purchase.
INVESTMENTS:
A current investment is an investment that is by its nature readily
realizable and is intended to be held for not more than one year from
the date on which such investment is made. A long term investment is an
investment other than a current investment. An investment property is
an investment in land or buildings that are not intended to be occupied
substantially for use by, or in the operations of, the investing
enterprise. Long term investments and are stated at cost. The carrying
amount for current investments is the lower of cost and fair value.
BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets, the assets that take substantial
period of time to get ready for intended use, are capitalised as part
of the cost of such assets.
INTANGIBLE ASSET:
An intangible asset is an identifiable non-monetary asset, without
physical substance, held for use in the production or supply of goods
or services, for rental to others, or for administrative purposes.
Intangible Assets are stated at cost of acquisition less accumulated
depreciation. All costs, including financing costs till commencement of
commercial operations are capitalised.
INVENTORIES
Inventories of finished goods, raw materials, and work in progress are
carried at lower of cost or net realisable value. The cost of
inventories of items that are not ordinarily interchangeable are
assigned by specific identification of their individual costs. Other
inventory items are recorded using first-in-first-out cost formula. The
inventories include the relevant duties, taxes, and cess other than
those subsequently recoverable by the enterprise from the taxing
authorities that were incurred to bring the inventory to their present
location and conditions.
FO REIGN EXCHAN GE TRANSACTIONS
* Initial Recognition: Transactions denominated in foreign currencies
are recorded at daily bank rate for Sales and Custom rates for
Purchases as on date of the transaction.
* Conversion: At the year-end, monetary items denominated in foreign
currencies are converted into rupee equivalents at the year-end
exchange rates.
* Exchange Differences: Any exchange gain or losses arising out of
fluctuations are accounted for in the books of the account as per
Accounting Standard -11 "The Effects of Changes in Foreign Exchange
Rates".
CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby the net
profit before tax is adjusted for the effects of transactions of a
non-cash nature and any deferrals or accruals of the past or future
cash receipts or payments. The cash flows from regular revenue
generating, investing & financing activities of the company are
segregated.
REVENUE RECONGNITION:
Sales turnover for the year includes sales value of goods and other
recoveries such as Octroi, Transportation Charges etc, but excludes
excise duty and VAT. 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. Revenue from sale of goods is
recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer.
RETIREMENT BENEFITS:
The Company's contribution to Provident Fund and ESIC is accounted on
accrual basis and charged to Profit and Loss Account. The Company
accounts for liability for Gratuity of employees on the basis of
Actuarial Valuation. Gratuity is payable to Employees after Retirement
or Resignation of Employees; whereas there is no defined policy
enabling the employees to avail encashment of leave.
IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of the Asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss account in the year in which an asset is identified as
impaired. The Impairment loss recognized in prior accounting periods is
increased / reversed where there has been change in the estimate of
recoverable amount. The recoverable value is the higher of the net
selling price and value in use.
USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumption that affect the reported amounts of assets and
liabilities on the date of financial statements, the reported amount of
revenues and expenses and the disclosures relating to contingent
liabilities as on the date of financial statements. Actual results
could differ from those of estimates. Any revision in accounting
estimates is recognized in accordance with the respective accounting
standard.
EARNINGS PER SHARE
The Company reports basic and diluted earnings per share in accordance
with AS-20 "Earnings Per Share". Basic earnings per share are computed
by dividing the net profit or loss for the period by the weighted
average number of Equity Shares outstanding during the period. Diluted
earnings per share is computed by dividing the net profit or loss for
the period by the weighted average number of Equity Shares outstanding
during the period as adjusted for the effects of all dilutive potential
equity shares.
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent liabilities as defined in AS-29 "Provisions, Contingent
Liabilities and Contingent Assets" are disclosed by way of notes to
accounts. Provision is made if it becomes probable that an outflow of
future economic benefits will be required for an item previously dealt
with as a contingent liability.
TAXES ON INCOME:
Tax expenses comprise both current & deferred taxes.
Current tax is determined as the tax payable in respect of taxable
income for the year.
Deferred tax for the year is recognised on timing difference; being
difference between taxable incomes and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
Deferred tax assets and liabilities are measured assuming the tax rates
and tax laws that have been enacted or substantially enacted by the
Balance Sheet date. Deferred tax assets are recognised and carried
forward only if there is a reasonable / virtual certainty of
realisation.
LEASES
Assets leased by the Company in its capacity as lessee, where the
Company has substantially all the risks and rewards of ownership are
classified as finance lease. Such a lease is capitalized at the
inception of the lease at lower of the fair value or the present value
of the minimum lease payments and a liability is recognized for an
equivalent amount. Each lease rental paid is allocated between the
liability and the interest cost so as to obtain a constant periodic
rate of interest on the outstanding liability for each year.
1. Lease arrangements where the risks and rewards incidental to
ownership of an asset substantially vest with the lessor, are
recognized as operating leases. Lease rentals under operating leases
are recognized in the statement of profit and loss on a straight-line
basis.
2. The value on realization of current assets in the ordinary course
of business would not be less than the amount at which they are stated
in the Balance Sheet. According to the management, provision for all
the known liabilities is adequate.
3. Balances in Debtors, Creditors, loans, advances, and other current
assets are subject to confirmation and reconciliation.
4. Auditors' remuneration in accordance with paragraph 4B of part II
of Schedule III to the Companies Act 2013 is as under:
Particulars 31 March 2015 31 March 2014
As Statutory Auditors 75,000 75,000
As Tax Auditors 25,000 25,000
As VAT Auditors 25,000 25,000
As Cost Auditors 25,000 25,000
As Secretarial Auditors 40,000 40,000
Company Law Matters - -
Management Services - -
Other Services 20,000 82,000
Reimbursement of expenses
210,000 272,000
7. "The Micro, Small and Medium Enterprise Development Act, 2006" has
repealed the provision of interest on delayed payment to small scale
and ancillary industrial undertaking Act, 1993. The management does not
find it necessary to provide for interest on delayed payments to the
suppliers covered by the said Act in view of insignificant amount and
probability of its outgo.
8. Disclosure of Provisions as required by AS-29 is as under:
9. Related Party Disclosures, as required by AS-18 are given below:
A. Relationships:
Category I: Holding Company NIL
Category II: Key management Personnel Managing Director Remuneration
Rs. 1500000 Executive Director Remuneration Rs. 1440000
Category III: Others (Relatives of Key Management Personnel and
Entities in which the Key Management Personnel have control or
significant influence)
Mar 31, 2014
ACCOUNTING CONCEPTS:
The Company follows mercantile system of accounting, and recognises
income and expenses on accrual basis that are of significant nature.
The financial statement have been prepared to comply in all material
respect with the mandatory Accounting standards issued by the
Institute of Chartered Accountants of India, in accordance with Indian
Generally Accepted Accounting Policies and as per the provision of the
Companies Act, 1956.
FIXED ASSETS:
Fixed Assets are stated at cost (net of Cenvat & VAT Credit) of
acquisition/construction less accumulated depreciation and impairment
loss. Cost includes direct expenses as well as clearly identifiable
indirect expenses incurred to bring the assets to their working
condition for its intended use, net of CENVAT and VAT recoverable.
DEPRECIATION:
? Depreciation on the Fixed assets has been provided on Straight
Line basis as per the provision of Section 205 of the Companies Act,
1956, at the rates and in the manner specified in Schedule XIV to the
Companies Act 1956.
? Individual assets of value less than Rs. 5000 are depreciated in
the year of purchase.
INVESTMENTS:
A current investment is an investment that is by its nature readily
realizable and is intended to be held for not more than one year from
the date on which such investment is made. A long term investment is
an investment other than a current investment. An investment property
is an investment in land or buildings that are not intended to be
occupied substantially for use by, or in the operations of, the
investing enterprise. Long term investments and are stated at cost.
The carrying amount for current investments is the lower of cost and
fair value.
BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets, the assets that take substantial
period of time to get ready for intended use, are capitalised as part
of the cost of such assets.
INTANGIBLE ASSET:
An intangible asset is an identifiable non-monetary asset, without
physical substance, held for use in the production or supply of goods
or services, for rental to others, or for administrative purposes.
Intangible Assets are stated at cost of acquisition less accumulated
depreciation. All costs, including financing costs till commencement
of commercial operations are capitalised.
INVENTORIES :
Inventories of finished goods, raw materials, and work in progress are
carried at lower of cost or net realisable value. The cost of
inventories of items that are not ordinarily interchangeable are
assigned by specific identification of their individual costs. Other
inventory items are recorded using first-in-first-out cost formula.
The inventories include the relevant duties, taxes, and cess other
than those subsequently recoverable by the enterprise from the taxing
authorities that were incurred to bring the inventory to their present
location and conditions.
FOREIGN EXCHANGE TRANSACTIONS :
? Initial Recognition: Transactions denominated in foreign
currencies are recorded at daily bank rate for Sales and Custom rates
for Purchases as on date of the transaction.
? Conversion: At the year-end, monetary items denominated in foreign
currencies are converted into rupee equivalents at the year-end
exchange rates.
? Exchange Differences: Any exchange gain or losses arising out of
fluctuations are accounted for in the books of the account as per
Accounting Standard -11 "The Effects of Changes in Foreign Exchange
Rates ".
CASH FLOW STATEMENT :
Cash flows are reported using the indirect method, whereby the net
profit before tax is adjusted for the effects of transactions of a
non-cash nature and any deferrals or accruals of the past or future
cash receipts or payments. The cash flows from regular revenue
generating, investing & financing activities of the company are
segregated.
REVENUE RECOGNITION :
Sales turnover for the year includes sales value of goods and other
recoveries such as Octroi, Transportation Charges etc, but excludes
excise duty and VAT. 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. Revenue from sale of goods is
recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer.
RETIREMENT BENEFITS :
The Company''s contribution to Provident Fund and ESIC is accounted
on accrual basis and charged to Profit and Loss Account. The Company
accounts for liability for Gratuity of employees on the basis of
Actuarial Valuation. Gratuity is payable to Employees after Retirement
or Resignation of Employees; whereas there is no defined policy
enabling the employees to avail encashment of leave.
IMPAIRMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of the Asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss account in the year in which an asset is identified as
impaired. The Impairment loss recognized in prior accounting periods
is increased / reversed where there has been change in the estimate of
recoverable amount. The recoverable value is the higher of the net
selling price and value in use.
USE OF ESTIMATES :
The preparation of financial statements requires management to make
estimates and assumption that affect the reported amounts of assets
and liabilities on the date of financial statements, the reported
amount of revenues and expenses and the disclosures relating to
contingent liabilities as on the date of financial statements. Actual
results could differ from those of estimates. Any revision in
accounting estimates is recognized in accordance with the respective
accounting standard.
EARNINGS PER SHARE :
The Company reports basic and diluted earnings per share in accordance
with AS-20 "Earnings Per Share". Basic earnings per share are
computed by dividing the net profit or loss for the period by the
weighted average number of Equity Shares outstanding during the
period. Diluted earnings per share is computed by dividing the net
profit or loss for the period by the weighted average number of Equity
Shares outstanding during the period as adjusted for the effects of
all dilutive potential equity shares.
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Contingent liabilities as defined in AS-29 "Provisions, Contingent
Liabilities and Contingent Assets" are disclosed by way of notes to
accounts. Provision is made if it becomes probable that an outflow of
future economic benefits will be required for an item previously dealt
with as a contingent liability.
TAXES ON INCOME :
Tax expenses comprise both current & deferred taxes.
Current tax is determined as the tax payable in respect of taxable
income for the year.
Deferred tax for the year is recognised on timing difference; being
difference between taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
Deferred tax assets and liabilities are measured assuming the tax
rates and tax laws that have been enacted or substantially enacted by
the Balance Sheet date. Deferred tax assets are recognised and carried
forward only if there is a reasonable / virtual certainty of
realisation.
LEASES :
1. Assets leased by the Company in its capacity as lessee, where the
Company has substantially all the risks and rewards of ownership are
classified as finance lease. Such a lease is capitalized at the
inception of the lease at lower of the fair value or the present value
of the minimum lease payments and a liability is recognized for an
equivalent amount. Each lease rental paid is allocated between the
liability and the interest cost so as to obtain a constant periodic
rate of interest on the outstanding liability for each year. Lease
arrangements where the risks and rewards incidental to ownership of an
asset substantially vest with the lessor, are recognized as operating
leases. Lease rentals under operating leases are recognized in the
statement of profit and loss on a straight-line basis.
2. The value on realization of current assets in the ordinary course
of business would not be less than the amount at which they are stated
in the Balance Sheet. According to the management, provision for all
the known liabilities is adequate.
3. Balances in Debtors, Creditors, loans, advances, and other current
assets are subject to confirmation and reconciliation.
4. Auditors'' remuneration in accordance with paragraph 4B of part II
of Schedule VI to the Companies Act, 1956 is as under:
5. Earning per share is calculated as under:
7. "The Micro, Small and Medium Enterprise Development Act, 2006"
has repealed the provision of interest on delayed payment to small
scale and ancillary industrial undertaking Act, 1993. The management
does not find it necessary to provide for interest on delayed payments
to the suppliers covered by the said Act in view of insignificant
amount and probability of its outgo.
8. Disclosure of Provisions as required by AS-29 is as under:
9. Related Party Disclosures, as required by AS-18 are given below:
A. Relationships:
Category I : Holding Company NIL Category II : Key management
Personnel Managing Director Remuneration Rs. 480000 Executive Director
Remuneration Rs. 420000
Category III : Others (Relatives of Key Management Personnel and
Entities in which the Key Management Personnel have control or
significant influence)
10. Value of imports calculated on C.I.F basis by the company during
the financial year in respect of -
11. Other Expenses in Foreign Currency:
12. Information of major Raw Material Consumption
13. The excise duty and sales tax, shown as deduction from turnover,
are total tax on sale of goods for the year.
14. The disclosure of "Employee Benefits" as per Accounting
Standard 15 are as follows;
(A) Defined contribution plans:
Provident fund:
The Company has recognized the following amounts in the Profit and
Loss Account for the year:
(i) Contribution to Provident Fund (Employer''s Contribution) Rs.
444709
(B) Defined Benefit Plans
(i) Disclosure of Gratuity Liabilities
The Company has accounted for provision of gratuity based on actuarial
valuation done by Life Insurance Corporation of India amounting to
total liability till date of Rs. NIL.
15. The Company has only one reportable business segment hence no
further disclosure is required under Accounting Standard-17 on
"Segment reporting".
16. Disclosure of Deferred Taxes
17. The management has made full inquiries and is of the view that
assets of the Company in form of fixed assets and Inventories are good
in nature, and are stated at appropriate value of the respective
assets; and there is no necessity as to impairment / write down
provision in the accounts.
18. Disclosures required under Accounting Standard-19 on "Leases".
Finance Lease - Assets Given on Lease
The Company has not given any of its assets on lease.
19. The previous year''s figures have been regrouped / rearranged /
reclassified wherever considered necessary to correspond with the
figures of current year.
Mar 31, 2013
ACCOUNTING CONCEPTS:
The Company follows mercantile system of accounting, and recognises
income and expenses on accrual basis that are of significant nature.
The financial statement have been prepared to comply in all material
respect with the mandatory Accounting standards issued by the Institute
of Chartered Accountants of India, in accordance with Indian Generally
Accepted Accounting Policies and as per the provision of the Companies
Act, 1956.
FIXED ASSETS:
Fixed Assets are stated at cost (net of Cenvat & VAT Credit) of
acquisition/construction less accumulated depreciation and impairment
loss. Cost includes direct expenses as well as clearly identifiable
indirect expenses incurred to bring the assets to their working
condition for its intended use, net of CENVAT and VAT recoverable.
DEPRECIATION:
- Depreciation on the Fixed assets has been provided on Straight Line
basis as per the provision of Section 205 of the Companies Act, 1956,
at the rates and in the manner specified in Schedule XIV to the
Companies Act 1956.
- Individual assets of value less than Rs. 5000 are depreciated in the
year of purchase.
INVESTMENTS:
A current investment is an investment that is by its nature readily
realizable and is intended to be held for not more than one year from
the date on which such investment is made. A long term investment is an
investment other than a current investment. An investment property is
an investment in land or buildings that are not intended to be occupied
substantially for use by, or in the operations of, the investing
enterprise. Long term investments and are stated at cost. The carrying
amount for current investments is the lower of cost and fair value.
BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets, the assets that take substantial
period of time to get ready for intended use, are capitalised as part
of the cost of such assets.
INTANGIBLE ASSET:
An intangible asset is an identifiable non-monetary asset, without
physical substance, held for use in the production or supply of goods
or services, for rental to others, or for administrative purposes.
Intangible Assets are stated at cost of acquisition less accumulated
depreciation. All costs, including financing costs till commencement of
commercial operations are capitalised.
INVENTORIES :
Inventories of finished goods, raw materials, and work in progress are
carried at lower of cost or net realisable value. The cost of
inventories of items that are not ordinarily interchangeable are
assigned by specific identification of their individual costs. Other
inventory items are recorded using first-in-first-out cost formula. The
inventories include the relevant duties, taxes, and cess other than
those subsequently recoverable by the enterprise from the taxing
authorities that were incurred to bring the inventory to their present
location and conditions.
FOREIGN EXCHANGE TRANSACTIONS :
- Initial Recognition: Transactions denominated in foreign currencies
are recorded at daily bank rate for Sales and Custom rates for
Purchases as on date of the transaction.
- Conversion: At the year-end, monetary items denominated in foreign
currencies are converted into rupee equivalents at the year-end
exchange rates.
- Exchange Differences: Any exchange gain or losses arising out of
fluctuations are accounted for in the books of the account as per
Accounting Standard -11 "The Effects of Changes in Foreign Exchange
Rates ".
CASH FLOW STATEMENT :
Cash flows are reported using the indirect method, whereby the net
profit before tax is adjusted for the effects of transactions of a
non-cash nature and any deferrals or accruals of the past or future
cash receipts or payments. The cash flows from regular revenue
generating, investing & financing activities of the company are
segregated.
REVENUE RECONGNITION :
Sales turnover for the year includes sales value of goods and other
recoveries such as Octroi, Transportation Charges etc, but excludes
excise duty and VAT. 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. Revenue from sale of goods is
recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer.
RETIREMENT BENEFITS :
The Company''s contribution to Provident Fund and ESIC is accounted on
accrual basis and charged to Profit and Loss Account. The Company
accounts for liability for Gratuity of employees on the basis of
Actuarial Valuation. Gratuity is payable to Employees after Retirement
or Resignation of Employees; whereas there is no defined policy
enabling the employees to avail encashment of leave.
IMPAIRMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of the Asset
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss account in the year in which an asset is identified as
impaired. The Impairment loss recognized in prior accounting periods is
increased / reversed where there has been change in the estimate of
recoverable amount. The recoverable value is the higher of the net
selling price and value in use.
USE OF ESTIMATES :
The preparation of financial statements requires management to make
estimates and assumption that affect the reported amounts of assets and
liabilities on the date of financial statements, the reported amount of
revenues and expenses and the disclosures relating to contingent
liabilities as on the date of financial statements. Actual results
could differ from those of estimates. Any revision in accounting
estimates is recognized in accordance with the respective accounting
standard.
EARNINGS PER SHARE :
The Company reports basic and diluted earnings per share in accordance
with ASÂ20 "Earnings Per Share". Basic earnings per share are computed
by dividing the net profit or loss for the period by the weighted
average number of Equity Shares outstanding during the period. Diluted
earnings per share is computed by dividing the net profit or loss for
the period by the weighted average number of Equity Shares outstanding
during the period as adjusted for the effects of all dilutive potential
equity shares.
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Contingent liabilities as defined in AS-29 "Provisions, Contingent
Liabilities and Contingent Assets" are disclosed by way of notes to
accounts. Provision is made if it becomes probable that an outflow of
future economic benefits will be required for an item previously dealt
with as a contingent liability.
TAXES ON INCOME :
Tax expenses comprise both current & deferred taxes.
Current tax is determined as the tax payable in respect of taxable
income for the year.
Deferred tax for the year is recognised on timing difference; being
difference between taxable incomes and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
Deferred tax assets and liabilities are measured assuming the tax rates
and tax laws that have been enacted or substantially enacted by the
Balance Sheet date. Deferred tax assets are recognised and carried
forward only if there is a reasonable / virtual certainty of
realisation.
Mar 31, 2010
(a) System of Accounting
The accounts have been prepared under the historical cost convention
and on accrual basis.
(b) Fixed Assets
Fixed assets are stated at cost along with costs directly attributable
to bring the assets to their working condition.
(c) Depreciation
Depreciation on Fixed Assets is provided on Straight Line Method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956 read with the relevant circulars issued by the Department of
Company Affairs from time to time.
Depreciation on assets added during the year has been provided on
pro-rata basis.
(d) Investments
Long-term investments are being valued at cost of acquisition.
Short-term investments are being valued at cost or market value
whichever is lower.
(e) Inventories
Raw materials, Stores and spares and Work-in-Progress are valued at
cost. Finished goods are valued at lower of cost or realisable value.
The inventories values are determined on FIFO basis.
(f) Sales
Sales are recognised when goods are supplied in accordance with the
terms of sale and are recorded net of trade discounts and rebates but
include excise duty and sales tax.
(g) Foreign currency transaction
Transactions in foreign exchange are accounted at a standard exchange
rate. The difference between the amount originally recorded and the
settlement amount is recognised as exchange rate fluctuation.
Fluctuation amount is added/reduced from purchase or sale, as the case
may be, in the drawing the Profit & Loss statement.
(h) Deferred Tax is accounted for by computing the tax effect of timing
differences, which arise during the year and reverse in the subsequent
periods.
(i) Preliminary & Public Issue expenses are being amortised over a
period of 10 years.