Mar 31, 2015
1.i Basis of Preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention on accrual basis of accounting in accordance
with the generally accepted accounting principles in India ("GAAP"),
applicable Accounting Standards issued by The Institute of Chartered
Accountants of India and under the historical cost convention, on
accrual basis.
1.ii Revenue Recognition :
Revenue is being recognized in accordance with the Guidance Note on
Accrual Basis of Accounting issued by The Institute of Chartered
Accountants of India. Accordingly, wherever there are uncertainties in
the realization of income same is not accounted for till such time the
uncertainty is resolved.
l.iii Treatment of Expenses :
All expenses are accounted for on accrual basis.
l.iv Fixed Assets:
Fixed Assets are stated at historical cost, less depreciation. Costs of
fixed assets include taxes, duties, freight and other expense
incidental and related there to the construction, acquisition, and
installation of respective assets.
l.v Inventories :
a. Stock of raw material and consumables are carried at cost (computed
on first-in-first-out
basis) or Net Realizable Value, whichever is lower.
b. Stock of work-in-progress is value at cost upto the level of
processed and includes cost of material consumed, labour and
manufacturing overhead. However, there was no stock- in-progress at end
the financial year.
c. Finished goods are value at cost of manufacturing (computed on
first-in-first-out basis) or net realizable value, whichever is lower.
l.vi Depreciation / Amortization :
Depreciation on fixed assets has been provided on WDV method on prorata
basis over the useful life prescribed in schedule II to the Companies
Act, 2013 after considering salvage value of five percent of original
cost. The Company has considered useful life of assets same as
prescribed under the Companies Act, 2013.
Depreciation upto 31.03.2014 was provided on SLM method on prorate
basis at the rates prescribed in schedule XIV to the Companies Act,
1956.
Due to transition from schedule XIV to schedule II, depreciation on
assets existing as on 31.03.2014, has been provided in such a way so
that assets should be depreciated after considering salvage value of
five percent of original cost of the assets over a useful life of
assets as prescribed under schedule II of the companies Act, 2013.
Assets of which useful life has already been expired but depreciation
charged till previous financial year was less than 95% of original cost
of the assets, difference of 95% of Original Cost and depreciation
charged till last year, has been charged to profit and loss account as
depreciation.
Assets on which depreciation has already been charged above of 95% of
Original Cost of the assets till previous financial year and written
down value of the assets is less than 5% of Original Cost, salvage
value has been considered remaining WDV as on first day of current
financial year.
1.vii Taxes on Income :
a. Since the company has incurred cash losses during the Financial
Year. No provision for Income tax has been made.
b. Deferred tax has been recognized, subject to the consideration of
prudence, on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period.
1.viii Earning Per Share :
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
1.ix Employees Benefits :
i. Provident Fund and Employee State Insurance
The Company's Contribution to the recognized Provident Fund and
Employees State Insurance (Defined Contribution Scheme), paid/payable
during the year, is debited to the Profit and Loss Account.
ii. Gratuity Fund
Accrued liabilities on account of Gratuity (Defined Benefit Scheme) is
provided for the employees', based on their last drawn salary,
completed years of services, instead of ascertaining actuarial impact.
1.x Transaction in Foreign Currency :
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction. Profit or loss resultant due
to fluctuation in currency rate are recognized as income or expense in
profit and loss account.
1.xi. Investments :
Long term investments are carried at cost. However, provision is made
for diminution in value (if any), other than temporary, on an
individual basis.
l.xii. Borrowing Cost :
Interest and other borrowing costs on specific borrowings, attributable
to qualifying assets, are capitalized. A qualifying asset in one that
necessarily takes substantial period of time to get ready for intended
use. Other borrowing costs are charged to revenue over the tenure of
the loan.
1.xiii. Accounting for Provisions, Contingent Liabilities and
Contingent Assets :
Provisions are recognized in terms of Accounting Standard 29 -
Provisions, Contingent Liabilities and Contingent Assets (AS-29),
notified by the Companies (Accounting Standards) Rules, 2006, when
there is a present legal or statutory obligation as a result of past
events, where it is probable that there will be outflow of resources to
settle the obligation and when a reliable estimate of the amount of the
obligation can be made. Contingent Liabilities are recognized only when
there is a possible obligation arising from past events due to
occurrence or non-occurrence of one or more uncertain future events,
not wholly within the control of the Company, or where any present
obligation cannot be measured in terms of future outflow of resources
or where a reliable estimate of the obligation cannot be made.
Obligations are assessed on an ongoing basis and only those having a
largely probable outflow of resources are provided for. Contingent
Assets are not recognized in the financial statements.
1.xiv Research and Development
No Expenses have been incurred on Research and Development
1.xv Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment of company's assets. If any indication
exists, the recoverable amount of such assets is estimated. An
impairment loss is recognized wherever the carrying amount of the
assets exceeds its recoverable amount.
1.xvi Use of Estimates
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumption in respect of certain items that affect the
reported amount of assets and liabilities as at the date of the
financial statements and the reported amount of income and expenses
during the reporting period. Actual result/outcome could differ from
estimates. Any revision in accounting estimates is recognised
prospectively in the period in which such results are materialised.
Mar 31, 2014
1. Basis of preparation
The financial statements of the company are prepared under the
historical cost convention on accrual basis of accounting and in
accordance with generally accepted principles in India, Provision of
the Companies Act 1956(the Act) and comply in material aspects with the
Accounting Standards notified under Section 211(3C) of the Act, read
with Companies (Accounting Standards) Rules,2006.
2. Revenue Recognition
a) sale of Goods is Recognized on dispatches'' to customers which
generally coincides with transfer of title, significant risk and
rewards of ownership to customers and includes excise duty.
b) dividend Income is accounted for when right to receive is
established.
c) interest is recognized on time proportionate basis taking into
account the amount outstanding and the rate applicable.
3. Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation, less impairment losses, if any. Cost is inclusive of all
identifiable expenditure incurred to bring the assets to their working
condition for intended use. Where an asset is scrapped or otherwise
disposed off, the cost and related depreciation is written back and the
resultant profit or loss, if any, is reflected in the Profit and Loss
Account.
4. Depreciation
Depreciation on Fixed Assets is provided on Straight Line Method as per
the classification and in the manner specified in Schedule-XIV to the
Companies Act, 1956 except depreciation on Plant & Machinery is
provided on basis of plant in a continuous process in Aluminum and
Irrigation Division.
5. Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment of company''s assets. If any indication
exists, the recoverable amount of such assets is estimated. An
impairment loss is recognized wherever the carrying amount of the
assets exceeds its recoverable amount.
6. Investments
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 in the opinion of the management.
7. Inventories
Inventories are valued as follows:
a) Finished Products produced and purchased by the company are carried
at lower of cost or realizable Price.
b) Raw Material produced and purchases by the company are carried at
lower of cost or Net realizable Price.
c) Work in Progress is carried at cost plus propionate expenses.
d) Scrap is carried at lower of cost and net realizable value.
e) Stores and spare parts are carried at cost or Net realizable Price
whichever is less.
8. Use of Estimates
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumption in respect of certain items that affect the
reported amount of assets and liabilities as at the date of the
financial statements and the reported amount of income and expenses
during the reporting period. Actual result/outcome could differ from
estimates. Any revision in accounting estimates is recognised
prospectively in the period in which such results are materialised.
9. Provision for Taxes
Since the company has incurred cash losses during the Financial Year.
No provision for Income tax has been made.
10. Provision, Contingent Liabilities & Contingent Assets.
Provision involving substantial degree of estimation in measurement is
recognised when there is present obligation as a result of past events
and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
11. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchanges rate prevailing on the date of transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at year ends rates. In case of items which are covered by
forward exchanges contracts, the difference between the year end rate
and rate on the date of the contracts is recognized as exchange
difference and the premium paid on forward contracts is recognized over
the life of the contract.
12. Prior Period Items etc.
Material Items if any, relating to the prior period, non-recurring and
extraordinary items etc., are disclosed separately.
13. Employee Benefits
The company''s contribution in respect of Provident Fund are charged
against revenue every year. Present Liability for future payment of
gratuity and unavailed leave benefits to the employees at the end of
the year will provided on the basis of actuarial valuation and will be
charged to revenue as and when it becomes applicable .
14. Research and Development
No Expenses have been incurred on Research and Development .
15. Other Accounting Policies
These are consistent with the generally accepted accounting standards
as issued from time to time.
Mar 31, 2013
1. Basis of preparation
The financial statements of the company are prepared under the
historical cost convention on accrual basis of accounting and in
accordance with generally accepted principles in India, Provision of
the Companies Act 1956(the Act) and comply in material aspects with the
Accounting Standards notified under Section 211(3C) of the Act, read
with Companies (Accounting Standards) Rules,2006.
2. Revenue Recognition
a) sale of Goods is Recognized on dispatches'' to customers which
generally coincides with transfer of title, significant risk and
rewards of ownership to customers and includes excise duty.
b) dividend Income is accounted for when right to receive is
established.
c) interest is recognized on time proportionate basis taking into
account the amount outstanding and the rate applicable.
3. Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation, less impairment losses, if any. Cost is inclusive of all
identifiable expenditure incurred to bring the assets to their working
condition for intended use. Where an asset is scrapped or otherwise
disposed off, the cost and related depreciation is written back and the
resultant profit or loss, if any, is reflected in the Profit and Loss
Account.
4. Depreciation
Depreciation on Fixed Assets is provided on Straight Line Method as per
the classification and in the manner specified in Schedule-XIV to the
Companies Act, 1956 except depreciation on Plant & Machinery is
provided on basis of plant in a continuous process in Aluminum and
Irrigation Division.
5. Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment of company''s assets. If any indication
exists, the recoverable amount of such assets is estimated. An
impairment loss is recognized wherever the carrying amount of the
assets exceeds its recoverable amount.
6. Investments
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 in the opinion of the management.
7. Inventories
Inventories are valued as follows:
a) Finished Products produced and purchased by the company are carried
at lower of cost or realizable Price.
b) Raw Material produced and purchases by the company are carried at
lower of cost or Net realizable Price.
c) Work in Progress is carried at cost plus propionate expenses.
d) Scrap is carried at lower of cost and net realizable value.
e) Stores and spare parts are carried at cost or Net realizable Price
whichever is less.
8. Us e of Estimates
The preparation of Financial Statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumption in respect of certain items that affect the
reported amount of assets and liabilities as at the date of the
financial statements and the reported amount of income and expenses
during the reporting period. Actual result/outcome could differ from
estimates. Any revision in accounting estimates is recognised
prospectively in the period in which such results are materialised.
9. Provision for Taxes
A) Current Tax:
Provision for Income Tax is determined in accordance with the
provisions of Income tax Act, 1961.
10. Provision, Contingent Liabilities & Contingent Assets.
Provision involving substantial degree of estimation in measurement is
recognised when there is present obligation as a result of past events
and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
11. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchanges rate prevailing on the date of transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at year ends rates. In case of items which are covered by
forward exchanges contracts, the difference between the year end rate
and rate on the date of the contracts is recognized as exchange
difference and the premium paid on forward contracts is recognized over
the life of the contract.
12, Prior Period Items etc.
Material Items if any, relating to the prior period, non-recurring and
extraordinary items etc., are disclosed separately.
13. Employee Benefits
The company''s contribution in respect of Provident Fund are charged
against revenue every year. Present Liability for future payment of
gratuity and unavailed leave benefits to the employees at the end of
the year will provided on the basis of actuarial valuation and will be
charged to revenue as and when it becomes applicable.
14, Research and Development
No Expenses have been incurred on Research and Development.
15. Other Accounting Policies
These are consistent with the generally accepted accounting standards
as issued from time to time,