Mar 31, 2014
1. Basis of preparation of Financial Statements:
The Financial Statements have been prepared in accordance with the generally accepted accounting principles (''GAAP'') applicable in India under the historical cost convention on accrual basis These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211 (3C). Companies (Accounting Standard) Rules, 2006, as amended from time to time and the other relevant provisions of the Companies Act, 1956.
All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI of the Companies Act, 1956.
Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made are classified as current investments in accordance with the RBI guidelines and Accounting Standard 13 on ''Accounting for Investments'' as notified under the companies (Accounting Standards) Rules, 2006.Current investments also include current maturities of long- term investments. All other investments are classified as non- current investments. Current investments are carried at lower of cost and market price determined category- wise All non - current investments are carried at cost However, provision for diminution in value, other than temporary in nature, is made to recognize a decline, on an individual basis.
3. Use of Estimates:
The preparation of Financial Statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Actual results could differ from these estimates. Difference result and estimates are recognized in the period in which the results are known / materialized. Management believes that the estimates used in preparation of financial statements are prudent and reasonable
4. Revenue Recognition:
Income ana expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sales transaction is recognized as and when the significant risk and reward attached to ownership in goods is transferred to the buyer. However leave with wages and bonus is accounted on cash basis
Profit on sale of investments is recorded on transfer of title from the company and is determined as the difference between the sale price and the carrying value of the investment. Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.
5. Cash Flow Statement:
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 flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and lax 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.
6. Tangible Assets:
Tangible Assets are stated at cost (or revalued amount as the case may be) less accumulated depreciation and accumulated impairment losses if any, Cost Comprises purchase price and any other attributable cost of bringing the asset to its working condition for its intended use Subsequent expenditure related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.
Gain or loss arising from de-recognition of assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the asset is derecognized
Depreciation on fixed assets is provided on written down value method (WDV) at the rales and in the manner prescribed in Schedule XIV to the Companies Act. 1956 over there useful life of asset sold discarded during the period is proportionately charged. Individual low cost assets (acquired for less than Rs 5000/-) are depreciated within a year of acquisition. Intangible assets are amortized over their estimated useful life on a straight line basis.
7. Employee Benefits:
Short term benefits and post employment benefits are accounted in the period during which the services have been rendered.
8. Tax Expense:
Tax expenses for the year comprise of current tax and deferred tax Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income".
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.
Deferred Tax represents the tax effect of timing differences between taxable income and accounting income for ihe reporting period and is capable of reversal in one or more subsequent periods. Deferred tax are quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet Date.
Deferred Tax Assets are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax asset on unabsorbed depreciation and carry forward of losses are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred lax assets can be realized.
9. Contingent Liabilities and Provisions:
Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.
Contingent Liability is disclosed for
a. Possible obligation which will be confirmed only by future events not wholly within the control of the company or
b. Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
c. Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.
10. Earnings per Share:
In determining the Earnings Per share, the company considers the net profit after tax including any post tax effect of any extraordinary / exceptional item The number of shares used m computing basic earnings per share is the weighted average number of shares outstanding during the period.
11. Segment Reporting:
The generally accepted accounting principles used in the preparation of the financial statements are applied to record revenue and expenditure in individual segments
Segment levenue and segment results include transfers between business segments. Suet transfers are accounted for at the agreed transaction value and such transfers are eliminated in the consolidation of the segments
Expenses that are directly identifiable to segments are considered for determining the segment result Expenses, which relate to the company as a whole and are not allocable to segments, are included under unallocated corporate expenses.
Segment assets and liabilites include those directly identifiable with the respective segments Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the company as a whole and not allocable to any segment.