Mar 31, 2015
General:
(i) The financial statements have been prepared in accordance with
Indian Generally Accepted Accounting Principles under the historical
cost convention on accrual basis, exception for certain tangible assets
which are being carried at revalued amounts. Pursuant to Section 133 of
the Companies Act 2013 read with RuIe7of the Companies (Accounts) Rules
2014, till the standards of accounting or any addendum thereto are
prescribed by Central Government in consultation and recommendation of
the National Financial Reporting Authority, the existing Accounting
standards notified under the Companies Act 1956, shall continue to
apply. Consequently these financial statements have been prepared to
comply in all material aspects with the accounts)Rules, 2006, as
amended] and other relevant provisions of the Companies Act,2013.
All the assets and liabilities have been classified as current and non
current as per the Companies normal operating cycle and other criteria
set out in Schedule III to the Companies Act, 2013. Based on the nature
of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalent, the
company has ascertained its operating cycle to be 12 months for the
purpose of current -non current classification of assets and
liabilities.
ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
iii) Use of Estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) in India requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosures of contingent liabilities on
the date of financial statement and reported amounts of income and
expenses during the period.
Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three
months or less from the date of acquisition),highly liquid investments
that are readily convertible Into known amounts of cash and which are
subject to insignificant risk of changes In value.
Cash Flow Statement
Cash Flows are reported using the indirect method, whereby Profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
Tangible and Intangible Assets
Tangible fixed assets
Tangible fixed assets are carried at the cost of acquisition or
construction, less accumulated depreciation. The cost of fixed assets
includes taxes (other than those subsequently recoverable from tax
authorities), duties, freight and other directly attributable costs
related to the acquisition or construction of the respective assets,
Intangible Assets
Intangible assets acquired separately are measured on Initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment loss, if any. Profit or Loss on disposal of intangible
assets is recognized in the Statement of Profit and Loss.
Capital Work-in-Progress
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses and attributable Interest.
Depreciation and Amortization
Effective 1st April, 2014, Company depreciates the Fixed assets over
the useful life in the manner prescribed in Schedule II of the
Companies Act, 2013 as against the earlier practice of depreciating at
the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation for additions to fixed assets of the Company is provided
as per Schedule II of the Companies Act, 2103 on pro rata basis.
The carrying value of fixed assets whose life has completed as per
Schedule II of the Companies Act 2013 is transferred to Retained
earnings amounting to Rs 5,67,542/-.
Investments
Investments are classified into Current and long-term investments.
Investments that are readily realizable and intended to be held for not
more than a year from the date of acquisition is classified as Current
Investments. All other investments are classified as long-term
investments.
Long term investments are stated at cost and provision for diminution
is made if the decline in value is other than temporary in nature.
Current investments are stated at lower of cost and fair value
determined on the basis of each category of investments.
Inventories
Raw materials, work-in-progress and finished goods are valued at the
lower of the cost or net realizable value, Cost comprises of
expenditure incurred in the normal course of business in bringing such
inventories to their present location and condition.
Revenue recognition
The Company follows the mercantile system of Accounting and recognizes
income and expenditure on accrual basis. Revenue is not recognized on
the grounds of prudence, until realized in respect of liquidated
damages, delayed payments as recovery of the amounts are not certain.
Sales are shown at net of sa1 es tax / service tax. These taxes are
recognized consistently as a liability. Interest income is recognized
using the time proportion method, based on the transactional interest
rates. Commission income is due on rendering of services.
Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the respective dates of the relevant transactions.
Exchange differences arising on foreign currency transactions are being
recognized as inoome or expense in the year in which they arise. In the
case of current assets the current liabilities expressed in foreign
currency, the exchange rate prevalent at the end of the year is taken
for the purposes of transaction.
Retirement Benefits
The Company has not taken actuarial valuation reports towards Gratuity
& Leave encashment liability. In the books of accounts there was no
provision made.
Segment reporting
The Company's operating businesses are organized and managed separately
according to the nature of product and services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets. The analysis of geographical
business is based on the areas in which major operating divisions of
the Company operates. The disclosure of segment reporting has furnished
as per Accounting Standard-17.
Related Party Disclosures:
The Company furnishes the details of Related party Disclosures as
required by AS-18.
Earnings per Share
The basic and Diluted Earnings per share (EPS) is computed by dividing
the net profit after tax for the year by weighted average number of
equity shares outstanding during the year.
Taxes on Income
Tax expense for the year comprises of current tax and deferred tax.
Income taxes are computed using the tax effect accounting method, where
taxes are accrued In the same period in which the related revenue and
expenses arise. A provision is made for income tax annually based on
the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
Alternate Tax (MAT) paid in accordance with the tax laws, which gives
rise to future economic benefits in the form of adjustments of future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal tax after the tax holiday
period. Accordingly, it is recognized as an asset in the balance sheet
when it is probable that the future economic benefit associated with it
will flow to the Company and the asset can be measured reliably.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of the
accounting period based on prevailing enacted or substantially enacted
regulations. Deferred tax assets are recognized only if there is
virtual certainty that they will be realized and are reviewed for the
appropriations of their respective carrying values at each balance.
Provisions, Contingent Liabilities and Contingent Assets
The Company creates the provisions where there Is a present obligation
as a result of past event that probalby requires an outflow of
resources and a reliable estimate can be made for the amount of the
obligation. A disclosure for contingent liability will be made when
there is a possible obligation or present obligation that may but
probably, will not required the outflow of resources. Where, there is a
possible obligation or present obligalon in respect of which the
likelihood of outflow of resources is remote, no provisions or
disclosures will be made.
Mar 31, 2014
General:
(i) The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as specified in the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Indian Companies Act, 1956.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
iii) Use of Estimates
The preparation of financial statements in conformity with Generally
accepted Accounting Principles (GAAP) in India requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosures of contingent liabilities on
the date of financial statement and reported amounts of income and
expenses during the period.
Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
Cash Flow Statement
Cash Flows are reported using the indirect method, whereby Profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
Tangible and Intangible Assets Tangible fixed assets
Tangible fixed assets are carried at the cost of acquisition or
construction, less accumulated depreciation. The cost of fixed assets
includes taxes (other than those subsequently recoverable from tax
authorities), duties, freight and other directly attributable costs
related to the acquisition or construction of the respective assets,
Intangible Assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment loss, if any. Profit or Loss on disposal of intangible
assets is recognized in the Statement of Profit and Loss.
Capital Work-in-Progress
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses and attributable interest.
Depreciation and Amortization
Depreciation is provided on straight line method on pro-rata basis and
at the rates and manner specified in the Schedule XIV of the Companies
Act, 1956.
Investments
Investments are classified into Current and long-term investments, that
are readily realizable and intended to be held for not more than a year
from the date of acquisition is classified as Current Investments. All
other investments are classified as long-term investments.
Long term investments are stated at cost and provision for diminution
is made if the decline in value is other than temporary in nature.
Current investments are stated at lower of cost and fair value
determined on the basis of each category of investments.
Inventories
Raw materials, work-in-progress and finished goods are valued at the
lower of the cost or net realizable value, Cost comprises of
expenditure incurred in the normal course of business in bringing such
inventories to their present location and condition.
Revenue recognition
The Company follows the mercantile system of Accounting and recognizes
income and expenditure on accrual basis. Revenue is not recognized on
the grounds of prudence, until realized in respect of liquidated
damages, delayed payments as recovery of the amounts are not certain.
Sales are shown at net of sales tax / service tax. These taxes are
recognized consistently as a liability.
Interest income is recognized using the time proportion method, based
on the transactional interest rates.
Commission income is due on rendering of services.
Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the respective dates of the relevant transactions.
Exchange differences arising on foreign currency transactions are being
recognized as income or expense in the year in which they arise. In the
case of current assets the current liabilities expressed in foreign
currency, the exchange rate prevalent at the end of the year is taken
for the purposes of transaction.
Retirement Benefits
The Company has not taken actuarial valuation reports towards Gratuity
& Leave encashment liability. In the books of accounts there was no
provision made. However the Company is making payment on accrual basis
from time to time.
Earnings per Share
The basic and Diluted Earnings per share (EPS) is computed by dividing
the net profit after tax for the year by weighted average number of
equity shares outstanding during the year.
Taxes on Income
Tax expense for the year comprises of current tax and deferred tax.
Income taxes are computed using the tax effect accounting method, where
taxes are accrued in the same period in which the related revenue and
expenses arise. A provision is made for income tax annually based on
the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
Alternate Tax (MAT) paid in accordance with the tax laws, which gives
rise to future economic benefits in the form of adjustments of future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal tax after the tax holiday
period. Accordingly, it is recognized as an asset in the balance sheet
when it is probable that the future economic benefit associated with it
will flow to the Company and the asset can be measured reliably.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of the
accounting period based on prevailing enacted or substantially enacted
regulations. Deferred tax assets are recognized only if there is
virtual certainty that they will be realized and are reviewed for the
appropriation of their respective carrying values at each balance.
Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss if any charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there has been a charge in the
estimate of recoverable amount.
Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a Contingent obligation as a result of
past events and it is probable that there will be an outflow of
resources.
Contingent Liabilities are not recognized but are disclosed in the
notes.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2012
Preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with generally accepted accounting principles
in India.
Method of Accounting
The Company follows the accrual system of accounting and recognizes
income and expenditure on accrual basis.
Fixed assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost includes freight, duties and taxes and other
expenses related to acquisition and installation. Pre-operative expense
incurred during the construction period capitalized.
Investments
Investments are either classified as current or long-term based on the
managementÃs intention at the time of purchase. Long-term investments
in subsidiary is carried at cost. Provisions are made to recognize any
permanent decline in the carrying value of each investment.
Inventories
Raw materials, work in progress and finished goods are valued at the
lower of the cost or net realizable value. Cost comprises of
expenditure incurred in the normal course of business in bringing such
inventories to their present location and condition.
Capital work in Progress
Capital Work in Progress includes additional equipment for enhancement
& modification of Estrification unit / Distillation unit and LLE.
Revenue Recognition
The Company follows the mercantile system of Accounting and recognizes
income and expenditure on accrual basis.
Revenue is not recognized on the grounds of prudence, until realized in
respect of liquidated damages, delayed payments as recovery of the
amounts are not certain.
Sales are shown at net of sales tax / services tax. These taxes are
recognized consistently as a liability.
Interest income is recognized using the time proportion method, based
on the transactional interest rates.
Commission income is due on rendering of services.
Depreciation and Amortization
Depreciation has been provided in the current year as per Straight Line
Method on fixed assets at the specific rates prescribed in Schedule XIV
of the Companies Act, 1956.
Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the respective dates of the relevant transactions.
Exchange differences arising on foreign currency transactions are being
recognized as income or expense in the year in which they arise. In the
case of current assets and current liabilities expressed in foreign
currency, the exchange rate prevalent at the end of the year is taken
for the purposes of translation.
Retirement Benefits
Provisions for Gratuity, Provident Fund and Leave encashment are made
in the accounts in respect of employees on the basis of actuarial
valuation as per the Accounting Standard 15 (Revised 2005).
Taxes on Income
To provide Current tax as the amount of tax payable in respect of
taxable income for the year.
To provide deferred tax on timing differences between taxable income
and accounting income subject to consideration of prudence as specified
in AS 22 Tax on Income
Mar 31, 2011
1.1 Preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with generally accepted accounting principles
in India.
1.2 Method of Accounting
The Company follows the accrual system of accounting and recognises
income and expenditure on accrual basis.
1.3 Fixed assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost includes freight duties and taxes and other expenses
related to acquisition and installation. Pre- operative expense
incurred during the construction period capitalized.
1.4 Investments
Investments are either classified as current or long-term based on the
management's intention at the time of purchase. Long-term investments
in subsidiary is carried at cost. Provisions are made to recognise any
permanent decline in the carrying value of each investment
1.5 Inventories
Raw materials, work in progress and finished goods are valued at the
lower of the cost or net realizable value. Cost comprises of
expenditure incurred in the nonnal course of business in bringing such
inventories to their present location and condition.
1.6 Revenue Recognition
The Company follows the mercantile system of Accounting and recognizes
income and expenditure on accrual basis.
Revenue is not recognized on the grounds of prudence, until realized in
respect of liquidated damages, delayed payments as recovery of the
amounts are not certain.
Sales are shown at net of sales tax /services tax. These taxes are
recognized consistently as a liability.
1.6.1 Interest income is recognized using the time proportion method,
based on the transactional interest rates.
1.6.2 Commission income is due on rendering of services.
1.7 Depreciation and Amortization
Depreciation has been provided in the current year as per Straight Line
Method on fixed assets at the specific rates prescribed in Schedule XIV
the Companies Act, 1956. l.S Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the respective dates of the relevant transactions.
Exchange differences arising on foreign currency transactions are being
recognized as income or expense in the year in which they arise. In
the case of current assets and current liabilities expressed in foreign
currency, the exchange rate prevalent at the end of the year is taken
for the purposes of translation.
1.9 Retirement Benefits
Provisions for Gratuity, Provident Fund and Leave encashment are made
in the accounts in respect of employees on the basis of actuarial
valuation as per the Accounting Standard 15 (Revised 2005).
1.10 Taxes on Income
To provide Current tax as the amount of tax payable in respect of
taxable income for the year.
To provide deferred tax on timing differences between taxable income
and accounting income subject to consideration of prudence as specified
in AS 22 Tax on Income
Mar 31, 2010
1.1 Preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with generally accepted accounting principles
in India.
1.2 Method of Accounting
The Company follows the accrual system of accounting and recognizes
income and expenditure on accrual basis.
1.3 Fixed assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost includes freight, duties and taxes and other
expenses related to acquisition and installation. Pre- operative
expense incurred during the construction period capitalized.
1.4 Investments
Investments are either classified as current or long-term based on the
managements intention at the time of purchase. Long-term investments
in subsidiary is carried at cost. Provisions are made to recognize any
permanent decline in the carrying value of each investment.
1.5 Inventories
Raw materials, work in progress and finished goods are valued at the
lower of the cost or net realizable value. Cost comprises of
expenditure incurred in the normal course of business in bringing such
inventories to their present location and condition.
1.6 Revenue Recognition
The Company follows the mercantile system of Accounting and recognizes
income and expenditure on accrual basis.
Revenue is not recognized on the grounds of prudence, until realized in
respect of liquidated damages, delayed payments as recovery of the
amounts are not certain.
Sales are shown at net of sales tax / services tax. These taxes are
recognized consistently as a liability.
1.6.1 Interest income is recognized using the time proportion method,
based on the transactional interest rates.
1.6.2 Commission income is due on rendering of services.
1.7 Depreciation and Amortization
Depreciation has been provided in the current year as per Straight Line
Method on fixed assets at the specific rates prescribed in Schedule XIV
the Companies Act, 1956.
1.8 Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the respective dates of the relevant transactions.
Exchange differences arising on foreign currency transactions are being
recognized as income or expense in the year in which they arise. In
the case of current assets and current liabilities expressed in foreign
currency, the exchange rate prevalent at the end of the year is taken
for the purposes of translation.
1.9 Retirement Benefits
Provisions for Gratuity, Provident Fund and Leave encashment are made
in the accounts in respect of employees on the basis of actuarial
valuation as per the Accounting Standard 15 (Revised 2005).
1.10 Taxes on Income
To provide Current tax as the amount of tax payable in respect of
taxable income for the year.
To provide deferred tax on timing differences between taxable income
and accounting income subject to consideration of prudence as specified
in AS 22 Tax on Income.