Mar 31, 2014
USE OF ESTIMATES: The preparation of the financial statements, in conformity with the generally accepted accounting principal, require estimates and assumptions to be made that affect the reported amount of assets and liabilities as of date of the financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which results materialize.
i) REVENUE RECOGNITION:
i) Sales: Sales comprise sale of services and goods.
Revenue from sale of services (freight & forwarding) is recognized on accrual basis on completion of job. Service tax received on services is separately recognized and deposited to central government.
Revenue from sale of goods is recognized:
i) When all the significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with the ownership; and
ii) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend income is recognized when the right to receive the payment is established.
iii) TANGIBLE FIXED ASSETS: Fixed Assets are stated in the Balance Sheet at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.
iv) INTANGIBLE FIXED ASSETS:
Intangible assets are stated at cost less accumulated amount of amortization.
v) DEPRECIATION: Depreciation on tangible fixed assets has been provided on straight- line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 Intangible fixed assets are amortized on straight-line method over their estimated useful life.
vi) INVESTMENTS: Long term investments are stated at cost. Provision is made to recognize a decline, other than temporary, in the value oflong term investments.
vii) INVENTORIES: Inventoriesarevaluedon the following basis:
Traded Goods: at lower of cost or net realizable value, whichever is lower.
viii) SEGMENT INFORMATION: Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the enterprise as a whole.
xi) OPERATING LEASES: Assets acquired on lease wherein significant portion of risks and rewards of ownership are retained by the Lessor are classified as operating leases. Lease rentals paid for such leases are recognized as an expense on systematic basis over the term oflease.
x) FOREIGN CURRENCY TRANSLATION:
a) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the currency and the foreign currency at the date of the transaction.
At the year-end, monetary items denominated in foreign currencies are converted into rupee equivalents at the year-end exchange rates.
c) Exchange Differences
All exchange differences arising on settlement / conversion of foreign currency transactions are included in the Statement of Profit & Loss.
xi) RETIREMENT BENEFITS:
a) Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus, etc., are recognized in the Statement of Profit & Loss in the period in which the employee renders the related services.
b) Post employment benefit
Defined contribution plan
The Company deposits the contributions for provident fund to the appropriate government authorities and these contributions are recognized in the Statement of Profit and Loss in the financial year to which they relate.
Defined benefit plan
The Company''s gratuity scheme is a defined benefit plan. The present value of the obligation under such defined plan is determined based on actuarial valuation carried out by an independent actuary, using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation in measured at the present value of the estimated future cash flow. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.
c) Other long-term employee benefits
Entitlements to annual leave are recognized when they accrue to employees. Leave entitlements can be availed while in service or en-cashed at the time of retirement/termination of employment, subject to a restriction on the maximum number of accumulation. The Company determines the liability for such accumulated leave entitlements on the basis of actuarial valuation carried out by an independent actuary at the year end.
Tax expense (tax saving) is the aggregate of current tax, deferred tax and fringe benefit tax.
i) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions oflncome Tax Act, 1961.
ii) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current income tax provision
xiii) EARNING PER SHARE: Basic earning per share is computed 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. Diluted earning per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.
xiv) IMPAIRMENT OF ASSETS: Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from is disposal at the end of its useful life.
xv) PROVISIONS: PROVISION AND CONTINGENT LIABILITIES:
i) Provision is recognized ( for liabilities that can be measured by using a substantial degree of estimation) when:
a) the company has a present obligation as a result of a past event;
b) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and
c) the amount of the obligation can be reliably estimated
ii) Contingent liability is disclosed in case there is:
a) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise; or
b) a present obligation arising past events but is not recognized
1. when it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or
2. a reliable estimate of the amount of the obligation cannot be made.