Mar 31, 2014
A. Basis of Accounting
1. The accounts of the Company are prepared under the historical cost
convention and in accordance with applicable accounting principle in
India the accounting standard issued by the Institute of Chartered
Accountants of India and the relevant provision of the Companies Act
1956. Accounting policies not specifically referred to are consistent
with generally accepted accounting principles.
2. The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
3. Sales and Other Operational Activities
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Interest income is recognized
on time proportion basis taking into account the amount outstanding and
rate applicable. Thus revenue from sales is recognized at the time of
dispatch of goods to customers. Sales other than manufacturing sales
are recorded at the time of dispatch and raising the invoice. Sales are
shown net of sales return.
b. Inventory
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any. Cost of inventories
comprise of cost of purchase, cost of conversion and other costs
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of raw materials,
stores and spares, packing materials, trading and other products are
determined on lower of cost or net realizable value.
c. Cash Flow Statements
Cash flow statement has been prepared by using Indirect Method at per
AS-3 issued by the ICAI.
d. Contingencies and Events occurring after the Balance Sheet date.
Accounting for contingencies (gains and losses) arising out of
contractual obligations are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board
where material.
e. Prior Period Items & Extra Ordinary Item
Income & Expenses which arises in the Current Year as a result of error
or omission in the preparation of Financial Statement of one or more
prior period were shown as prior period adjustment during the year in
Note No 26 (7) of Notes on financial Statement.
f. Depreciation
Depreciation is provided on the basis of Straight Line method at the
rates and in the manner prescribed under Schedule XIV to the Companies
Act 1956. Assets of Rs. 28,39,43,178/- are still in work in progress
thus depreciation is not required to be provided on the same.
g. Revenue Recognition
Revenue from sales/ weighment service is accounted for as net of taxes
and the principle of revenue recognition are given below:
1) Revenue from sales is recognised upon passing of title of the goods
and on transit of significant risk and rewards of ownership.
2) Dividend income is recognised on receipt basis.
3) Government Benefit Licence income is also recognized on receipt
basis.
h. Fixed Assets
Fixed assets are stated at cost of acquisition, less accumulated
depreciation and impairment loss, if any. All costs, including
financing costs till commencement of commercial production are
capitalized on appropriate basis to the Assets.
i. Foreign Currency Transactions
Company has entered into export sale during the period and thereby
earning foreign exchange. Foreign currency transactions are recorded by
applying an exchange rate at the time of date of transactions.
j. Investment
Current investments are carried at lower of cost and quoted, faire
value, computed category wise. Long term investments are stated at
cost. Provision for diminution in the value of long term investments is
made only if such a decline is other than temporary.
k. Retirement Benefit
Retirement Benefits to employees for payment of Gratuity is provided
for in this year for the employees liable as per Gratuity act thus the
profit of current year is reduced by Rs 146971/-. Further contribution
in respect of Provident Fund and ESI is made monthly and is charged to
the Profit & Loss Account.
1. Borrowing Cost
Borrowing cost which are directly attributable to the
acquisition/construction of fixed assets till the time such assets are
ready for use are capitalization as part of the assets. Other borrowing
cost are treated as revenue expenditure and charged to profit and loss
account for the year.
m. Segment Reporting.
The company has identified its primary reportable segments under AS-17
and necessary disclosure is separately made in notes of accounts. The
accounting policies adopted for segment report are in line with the
accounting policies of the company with the following additional
policies for segment reporting:
Revenue and expenses have been identified to a segment on the basis of
relationship to operating activities of the segment .Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Un allocable".
Segment assets and segment liabilities represent assets and liabilities
in respective segments. Investments tax related assets and other assets
and liabilities that can not be allocated to a segment on a reasonable
basis have been disclosed as "Un allocable".
n. Related party disclosure.
Related party disclosure as per AS-18 issued by the ICAI is made and
disclosed separately in notes to accounts.
o. Earning per Share.
E.P.S. has been calculated on weighted average of total number of share
as per AS-20 issued by the ICAI.
p. Provision for Current & Deferred Tax
Tax expenses for the year comprises of current tax and deferred tax.
Provision for current tax is made on the basis of provision of Income
Tax Act. Deferred tax Liability of Rs. 14511677/- created during the
year and total closing balance of deferred tax liability is Rs.
43114141/-
q. Impairment of Assets
The company has a policy of assessing the impairment of intangible
assets every year in accordance with AS-28 impairment of assets
prescribed by the ICAI. This is done through comparing its carrying
amount as per books of accounts with its recoverable value. During the
year there was no impairment in the value of the assets; hence no
provision is required as per AS-28.
r. Provision of Contingent Liabilities and Contingent Assets
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.
s. Other Income
Other Income for the year ended 31st March 2014 includes dividend on
investments, Interest on Bank Fixed deposits. Interest on advances,
Commodity Profit & Other Income.
Mar 31, 2012
A. Basis of Accounting
1. The accounts of the Company are prepared under the historical cost
convention and in accordance with applicable accounting principle in
India the accounting standard issued by the Institute of Chartered
Accountants of India and the relevant provision of the Companies Act
1956. Accounting policies not specifically referred to are consistent
with generally accepted accounting principles.
2. The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
3. Sales and Other Operational Activities
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Interest income is recognized
on time proportion basis taking into account the amount outstanding and
rate applicable. Thus revenue from sales is recognized at the time of
dispatch of goods to customers. Sales other than manufacturing sales
are recorded at the time of dispatch and raising the invoice. Sales are
shown net of sales return.
b. Inventory
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any. Cost of inventories
comprise of cost of purchase, cost of conversion and other costs
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of raw materials,
stores and spares, packing materials, trading and other products are
determined on lower of cost or net realizable value.
c. Cash Flow Statements
Cash flow statement has been prepared by using Indirect Method at per
AS-3 issued by the ICAI.
d. Contingencies and Events occurring after the Balance Sheet date.
Accounting for contingencies (gains and losses) arising out of
contractual obligations are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board
where material.
e. Prior Period Items & Extra Ordinary Item
Income & Expenses which arises in the Current Year as a result of error
or omission in the preparation of Financial Statement of one or more
prior period were shown as prior period adjustment during the year in
Note No. 25(d) of Notes on financial Statement.
f. Depreciation
Depreciation is provided on the basis of Straight Line method at the
rates and in the manner prescribed under Schedule XIV to the Companies
Act 1956. Assets of Rs.155713821/- are still in work in progress thus
depreciation is not required to be provided on the same.
g. Revenue Recognition
Revenue from sales/ weighment service is accounted for as net of taxes
and the principle of revenue recognition are given below:
1) Revenue from sales is recognised upon passing of title of the goods
and on transit of significant risk and rewards of ownership.
2) Dividend income is recognised on receipt basis.
3) Government Benefit Licence income is also recognized on receipt
basis.
h. Fixed Assets
Fixed assets are stated at cost of acquisition, less accumulated
depreciation and impairment loss, if any. All costs, including
financing costs till commencement of commercial
i. Foreign Currency Transactions
Company has entered into export sale during the period and thereby
earning foreign exchange. Foreign currency transactions are recorded by
applying an exchange rate at the time of date of transactions.
j. Investment
Current investments are carried at lower of cost and quoted, faire
value, computed category wise. Long term investments are stated at
cost. Provision for diminution in the value of long term investments is
made only if such a decline is other than temporary.
k. Retirement Benefit
Retirement Benefits to employees for payment of Gratuity is provided
for in this year for the employees liable as per Gratuity act thus the
profit of current year is reduced by Rs 65481/- . Further contribution
in respect of Provident Fund and ESI is made monthly and is charged to
the Profit & Loss Account.
l. Borrowing Cost
Borrowing cost which are directly attributable to the
acquisition/construction of fixed assets till the time such assets are
ready for use are capitalization as part of the assets. Other borrowing
cost are treated as revenue expenditure and charged to profit and loss
account for the year.
m. Segment Reporting.
The company has identified its primary reportable segments under AS-17
and necessary disclosure is separately made in notes of accounts. The
accounting policies adopted for segment report are in line with the
accounting policies of the company with the following additional
policies for segment reporting:
Revenue and expenses have been identified to a segment on the basis of
relationship to operating activities of the segment .Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Un allocable".
Segment assets and segment liabilities represent assets and liabilities
in respective segments. Investments tax related assets and other assets
and liabilities that can not be allocated to a segment on a reasonable
basis have been disclosed as "Un allocable".
n. Related party disclosure.
Related party disclosure as per AS-18 issued by the ICAI is made and
disclosed separately in notes to accounts.
o. Earning per Share.
E.P.S. has been calculated on weighted average of total number of share
(which is same in whole year) as per AS-20 issued by the ICAI. There
are no securities which will be converted in Equity share so diluted
and basic EPS are the same.
p. Provision for Current & Deferred Tax
Tax expenses for the year comprises of current tax and deferred tax.
Provision for current tax is made on the basis of provision of Income
Tax Act. Deferred tax asset is not recognized for future tax
consequences of timing differences because there is virtual convincing
evidence for future taxable income. It is measured using enacted tax
rates and tax laws applicable to taxable income of the current year.
Deferred tax asset is recognized and carried forward only to the extent
that there is a virtual certainty that the asset will be realized in
future.
q. Impairment of Assets
The company has a policy of assessing the impairment of intangible
assets every year in accordance with AS-28 impairment of assets
prescribed by the ICAI. This is done through comparing its carrying
amount as per books of accounts with its recoverable value. During the
year there was no impairment in the value of the assets; hence no
provision is required as per AS-28.
r. Provision Contingent Liabilities and Contingent Assets
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.
s. Other Income
Other Income for the year ended 31st March 2012 includes dividend on
investments Interest on Bank Fixed deposits and interest on advances
etc.
Mar 31, 2010
A. Basis of Accounting
1. The accounts of the Company are prepared under the historical cost
convention and in accordance with applicable accounting principle in
India the accounting standard issued by the Institute of Chartered
Accountants of India and the relevant provision of the Companies Act
1956. Accounting policies not specifically referred to are consistent
with generally accepted accounting principles.
2. The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
3. Sales and Other Operational Activities
Revenue from sales is recognized at the time of dispatch of goods to
customers. Sales other than manufacturing sales are shown as trading
sales separately. Sales are shown net of sales return.
b. Valuation of Inventory
1. Closing stock of semi finished goods is valued at cost of material
plus conversion cost to the stage of completion. Finished goods are
valued at cost or net realizable value which ever is lower.
2. Closing stock of packing material stores and raw material are
valued at cost or net realizable value which ever is less.
c. Cash Flow Statements
Cash flow statement has been prepared by using Indirect Method at per
AS-3 issued by the ICAI.
d. Contingencies and Events occurring after the Balance Sheet date.
Accounting for contingencies (gains and losses) arising out of
contractual obligations are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board
where material.
e. Prior Period Items & Extra Ordinary Item
Income & Expenses which arises in the Current Year as a result of error
or omission in the preparation of Financial Statement of one or more
prior period were shown as prior period adjustment during the year.
Delay payment of Statutory Liabilities Rs.65520/- and other expenses of
Rs.375263/- related to prior period are shown under the prior period
items.
f. Depreciation
Depreciation is provided on the basis of Straight Line method at the
rates and in the manner prescribed under Schedule XIV to the Companies
Act 1956. Assets of Rs.33128518/- are still in work in progress thus
depreciation is not required to be provided on the same.
g. Revenue Recognition
Revenue from sales/ weighment service is accounted for as net of taxes
and the principle of revenue recognition are given below:
1) Revenue from sales is recognised upon passing of title of the goods
and on transit of significant risk and rewards of ownership.
2) Dividend income is recognised on receipt basis.
3) Government Benefit Licence income is also recognized on receipt
basis.
h. Fixed Assets s
Fixed assets are stated at cost of acquisition or construction. They
are stated at historical cost less accumulated depreciation.
i. Foreign Currency Transactions
Company has entered into export sale during the period and thereby
earning foreign exchange. Foreign currency transactions are recorded by
applying an exchange rate at the time of date of transactions.
j. Investment
Investments are long term investment and same are stated at their
acquisition cost.
k. Retirement Benefit
Retirement Benefits to employees for payment of Gratuity is provided
for in this year for the employees liable as per Gratuity act thus the
profit of current year is reduced by Rs 57116/-. Further contribution
in respect of Provident Fund and ESI is made monthly and is charged to
the Profit & Loss Account.
l. Borrowing Cost
Borrowing cost which are directly attributable to the
acquisition/construction of fixed assets till the time such assets are
ready for use are capitalization as part of the assets. Other borrowing
cost are treated as revenue expenditure and charged to profit and loss
account for the year.
m. Segment Reporting.
The company has identified its primary reportable segments under AS-17
and necessary disclosure is separately made in notes of accounts. The
accounting policies adopted for segment report are in line with the
accounting policies of the company with the following additional
policies for segment reporting: Revenue and expenses have been
identified to a segment on the basis of relationship to operating
activities of the segment .Revenue and expenses which relate to
enterprise as a whole and are not allocable to a segment on reasonable
basis have been disclosed as "Un allocable". Segment assets and segment
liabilities represents assets and liabilities in respective segments.
Investments tax related assets and other assets and liabilities that
cannot be allocated to a segment on a reasonable basis have been
disclosed as "Un allocable".
n. Related party disclosure.
Related party disclosure as per AS-18 issued by the ICAI is made and
disclosed separately in notes to accounts.
o. Earning per Share.
E.P.S. has been calculated on weighted average of total number of share
(which is same in whole year) as per AS-20 issued by the ICAI. There
are no securities which will be converted in Equity share so diluted
and basic EPS are the same.
p. Income Tax
Tax expenses for the year comprises of current tax and deferred tax.
Provision for current tax is made on the basis of provision of Income
Tax Act. Deferred tax asset is not recognized for future tax
consequences of timing differences because there is virtual convincing
evidence for future taxable income. It is measured using enacted tax
rates and tax laws applicable to taxable income of the current year.
q. Miscellaneous Expenditure
Miscellaneous Expenditure to the extent not written off pertaining to
public issue expenses is of Rs 244867121- which shall be amortized over
a period of 5 years after the commencement of new project. A sum of Rs.
1575000/- in the current year has been transferred to Deposit a/c from
miscellaneous expenditure, which is originally the part of deposit with
BSE and had been transferred to miscellaneous expenditure in previous
year.
r. Impairment of Assets
The company has a policy of assessing the impairment of intangible
assets every year in accordance with AS-28 impairment of assets
prescribed by the ICAI. This is done through comparing its carrying
amount as per books of accounts with its recoverable value. During the
year there was no impairment in the value ofthe
assets;hencenoprovisionisrequiredasperAS-28.
s. Provision Contingent Liabilities and Contingent Assets
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.
t. Other Income
Other Income for the year ended 31st March 2010 includes dividend on
investments Interest on Bank Fixed deposits and interest on advances
etc.