Mar 31, 2014
A) Basis of Accounting :
The accounts have been prepared under the historical cost convention on
an accrual basis as a going concern and materially comply with the
mandatory Accounting Standards issued by the Institute of Chartered
Accountants of India.
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. Examples of such estimates include the useful
lives of fixed assets, provision for doubtful debts/ advances etc.
Actual results could differ from these estimates.
b) Revenue Recognition :
Revenue recognized and expenses incurred are accounted on accrual basis
and in accordance with the requirements of the Companies Act, 1956.
Sales are recognized on dispatch of goods to Customers.
c) Fixed Assets :
Fixed assets are stated at cost less depreciation. Cost comprises of
purchase price (net of rebates and discounts), import duties, levies
(net of cenvat and vat) and any directly attributable cost of bringing
the assets to its working condition for its intended use.
d) Depreciation :
Depreciation is provided on a pro-rata basis, from the date the assets
have been installed and put to use, on a Written down value method at
the rates and in the manner specified under Schedule XIV to the
Companies Act, 1956.
e) Investments :
Investments are valued at cost and are long term in nature. Provision
for permanent Diminution in value is made wherever necessary.
f) Employees Retirement Benefits :
1. Defined Contribution Plans
The Company contributes on a defined contribution basis to Employees''
Provident Fund towards post employment benefits, which is administered
by the respective Government authorities, and has no further
obligations beyond making its contribution, which is expected in the
year to which it pertains.
2. Defined Benefit Plans
The Company has introduced defined benefit plan namely gratuity for all
its employees. The liability for the defined benefit plan of gratuity
is determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
3. Employee Leave Entitlement
Employee leave entitlement is provided in the books on cash basis.
g) Inventories :
i) Inventories of Raw Materials are valued at cost.
ii) Stores & Spares are valued at cost.
iii) Cost of finished goods includes an appropriate proportion of
overheads. Finished Goods has been valued at cost or market value
whichever is lower.
h) Borrowing Costs :
Borrowing costs that are attributable to the acquisition, construction
or production of a qualified asset are capitalised. Other borrowing
costs are expensed out.
i) Excise Duty :
The Company is fully exempted from payment of excise duty on goods
manufactured by it vide Sr. No: 147 of Notification No: 12/2002 CE
Dated 17th March, 2012 covered by General Exemption No: 50 as amended.
j) Taxation :
Provision for DTA/DTL has been made in the books of accounts as
required under the Accounting Standard (AS)-22 on "Accounting for taxes
on Income" issued by the Institute of Chartered Accountants of India
(ICAI).
k) Foreign Currency Transactions :
Foreign Currency transactions are converted at the rates prevailing on
the dates of transactions. Foreign Currency assets and liabilities are
converted at contracted/ at the exchange rate prevailing at the balance
sheet date as applicable. Gain / (Loss) on closing rates of reporting
date of revenue transactions in the same year are charged to "Foreign
Exchange Fluctuation Gain/ (Loss) Account" in the Profit and Loss
Account.
l) Impairment of Assets :
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
m) Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present 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.
n) Leases :
The Company has taken on sub-lease basis land measuring 706.63 Hectors
situated at Village: Bhalu Kalla, Bastwa, Bastwa Mataji, Sagatnagar,
Belwa Ranaji, Ketu Kalla, Tehsil Shergarh, Dist. Jodhpur from Suzlon
Energy Limited for setting up 2.10 MW Wind Power Plant for generation
of Wind Power which is directly supplied to Jodhpur Vidyut Vitran Nigam
Limited under Power Purchase Agreement for a period of 20 years.
Mar 31, 2013
A) Basis of Accounting :
The accounts have been prepared under the historical cost convention on
an accrual basis as a going concern and materially comply with the
mandatory Accounting Standards issued by the Institute of Chartered
Accountants of India.
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. Examples of such estimates include the useful
lives of fixed assets, provision for doubtful debts/ advances etc.
Actual results could differ from these estimates.
b) Revenue recognition :
Revenue recognized and expenses incurred are accounted on accrual basis
and in accordance with the requirements ofthe Companies Act, 1956.
Sales are recognized on dispatch of goods to Customers.
c) Fixed Assets :
Fixed assets are stated at cost less depreciation. Cost comprises of
purchase price (net of rebates and discounts), import duties, levies
(net of cenvat and vat) and any directly attributable cost of bringing
the assets to its working condition for its intended use.
d) Depreciation :
Depreciation is provided on a pro-rata basis, from the date the assets
have been installed and put to use, on a Written down value method at
the rates and in the manner specified under Schedule XIV to the
Companies Act, 1956.
e) Investments :
Investments are valued at cost and are long term in nature. Provision
for permanent Diminution in value is made wherever necessary.
f) Employees retirement benefits :
1. Defined Contribution Plans
The Company contributes on a defined contribution basis to Employees''
Provident Fund towards post employment benefits, which is administered
by the respective Government authorities, and has no further
obligations beyond making its contribution, which is expected in the
year to which it pertains.
2. Defined benefit plans
The Company has introduced defined benefit plan namely gratuity for all
its employees. The liability for the defined benefit plan of gratuity
is determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
3. Employee Leave Entitlement
Employee leave entitlement is provided in the books on cash basis.
g) Inventories :
i) Inventories of Raw Materials are valued at cost.
ii) Stores & Spares are valued at cost.
iii) Cost of finished goods includes an appropriate proportion of
overheads. Finished Goods has been valued at cost or market value
whichever is lower.
h) Borrowing costs
Borrowing costs that are attributable to the acquisition, construction
or production of a qualified asset are capitalised. Other borrowing
costs are expensed out.
i) Excise Duty
The Company is fully exempted from payment of excise duty on goods
manufactured by it vide Notification No: 6/2002 CE Dated 1st March,
2002 covered by General Exemption No: 52.
j) Taxation
Provision for DTA/DTL has been made in the books of accounts as
required under the Accounting Standard (AS)-22 on "Accounting for taxes
on Income" issued by the Institute of Chartered Accountants of India
(ICAI).
k) Foreign Currency Transactions
Foreign Currency transactions are converted at the rates prevailing on
the dates of transactions. Foreign Currency assets and liabilities are
converted at contracted/ at the exchange rate prevailing at the balance
sheet date as applicable. Gain / (Loss) on closing rates of reporting
date of revenue transactions in the same year are charged to "Foreign
Exchange Fluctuation Gain/ (Loss) Account" in the Profit and Loss
Account.
l) Impairment of assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
m) Provisions, Contingent Liabilities and Contingent assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present 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.
n) Leases :
The Company has taken on sub-lease basis land measuring 706.63 Hectors
situated at Village: Bhalu Kalla, Bastwa, Bastwa Mataji, Sagatnagar,
Belwa Ranaji, Ketu Kalla, Tehsil Shergarh, Dist. Jodhpur from Suzlon
Energy Limited for setting up 2.10 MW Wind Power Plant for generation
of Wind Power which is directly supplied to Jodhpur Vidyut Vitran Nigam
Limited under Power Purchase Agreement for a period of 20 years.
Mar 31, 2012
A) Basis of Accounting :
The accounts have been prepared under the historical cost convention on
an accrual basis as a going concern and materially comply with the
mandator Accounting Standards issued by the Institute of Chartered
Accountants of India.
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. Examples of such estimates include the useful
lives of fixed assets, provision for doubtful debts/advances etc.
Actual results could differ from these estimates.
b) Revenue recognition
Revenue recognized and expenses incurred are accounted on accrual basis
and in accordance with the requirements of the Companies Act, 1956.
Sales are recognized on dispatch of goods to Customers.
c) Fixed Assets:
Fixed assets are stated at cost less depreciation. Cost comprises of
purchase price (net of rebates and discounts), import duties, levies
(net of cenvat and vat) and any directly attributable cost of bringing
the assets to its working condition for its intended use.
d) Depreciation:
Depreciation is provided on a pro-rata basis, from the date the assets
have been installed and put to use, on a Written down value method at
the rates and in the manner specified under Schedule XIV to the
Companies Act, 1956.
e) Investments
Investments are valued at cost and are long term in nature. Provision
for permanent Diminution in value is made wherever necessary.
f) Employees retirement benefits:
1. Defined Contribution Plans
The Company contributes on a defined contribution basis to Employees'
Provident Fund towards post employment benefits, which is administered
by the respective Government authorities, and has no further
obligations beyond making its contribution, which is expected in the
year to which it pertains.
2. Defined benefit plans
The Company has introduced defined benefit plan namely gratuity for all
its employees. The liability for the defined benefit plan of gratuity
is determined on the basis of an actuarial valuation by an independent
actuary at the year end. which is calculated using projected unit
credit method.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
3. Employee Leave Entitlement
Employee leave entitlement is provided in the books on cash basis
g) Inventories:-
i) Inventories of Raw Materials are valued at cost.
ii) Stores &. Spares are valued at cost,
iii) Cost of finished goods includes an appropriate proportion of
overheads. Finished Goods has been valued at cost or market value
whichever is less.
h) Borrowing costs
Borrowing costs that are attributable to the acquisition, construction
or production of a qualified asset are capitalised. Other borrowing
costs arc expensed out.
i) Excise Duty
The Company is fully exempted from payment of excise duty on goods
manufactured by it vide Notification No: 6/2002 CH Dated 1st March,
2002 covered by General Exemption No: 52.
j) Taxation
VHCL Industries Limited has been amalgamated with Jhaveri Weldflux
Limited in accordance with the Scheme of Amalgamation approved by the
Hon'ble High Court of Bombay in terms of the provisions of Section
391/392 of the Companies Act. 1956. The effective date of amalgamation
as per the Scheme is 01/04/2011. Accordingly, provision for DTA/DTL has
been made in the books of accounts as required under the Accounting
Standard (AS)-22 on "Accounting for taxes on Income" issued by the
Institute of Chartered Accountants of India (ICAI).
k) Foreign Currency Transactions
Foreign Currency transactions are converted at the rates prevailing on
the dates of transactions. Foreign Currency assets and liabilities are
converted at contracted/at the exchange rate prevailing at the balance
sheet date as applicable. Gain/(Loss) on closing rates of reporting
date of revenue transactions in the same year are charged to "Exchange
Gain/(Loss) Account" in the Profit and Loss Account.
l) Impairment of assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's fixed assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount Of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor,
m) Provisions, Contingent Liabilities and Contingent assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present 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.
n) Leases : The Company has taken on sub-lease basis land measuring
706.63 Hectors situated at Village: Bhalu Kalla, Bastwa, Bastwa Mataji.
Sagatnagar, Belwa Ranaji, Ketu Kalla, Tehsil Shergarh. Dist. Jodhpur
from SuzlonGujrat Wind Park Limited for setting up 2.10 MW Wind Power
Plant for generation of Wind Power which is directly supplied to
Jodhpur Vidyut Vitran Nigam Limited under Power Purchase Agreement.
o) Adoption of Revised Schedule VI : The Financial Statements for the
current year have been prepared as per the Revised Schedule VI format
as notified by the Ministry of Corporate Affairs, Previous Year figure
have been regrouped or reclassified to confirm to the presentation and
classification of the corresponding figures of the current year.
Adoption of revised Schedule VI format has no material impact on the
measurement and recognition principles followed in preparation of the
financial statements.
Mar 31, 2011
A) System Of Accounting
1. The Financial Statement have been prepared under the historical cost
convention in accordance with the Accounting Standard issued by the
Institute of Chartered Accountants of India and provisions contain in
Section 211 (3C) the Companies Act, 1956 as adopted consistently by the
Company.
2. The Company Generally follows mercantile system of accounting and
recognizes Significant items of income & expenditure on accrual basis.
3. The company's unit as been established in a backward area of
Khalapur. According to the "Exemption/Deferral-1988" Scheme of the
Government of Maharashtra such units are Untitled to differ sales tax
payments to future years. The Companies has accordingly not paid a sum
of Rupees 11,89,707/- which are sales tax payable.
4. Taxes on Income : Company is making huge losses from previous three
years and there is no virtual certainty of sufficient future taxable
income, which will be available against which such losses can be
set-off there fore calculation of differed tax assets as per accounting
Standards-22 not shown in the final accounts.
5. Previous year figures are regrouped wherever necessary for the
purpose of proper comparison with that of the current year and paise
are rounded Off upto nearest rupee.
B) Fixed Assets and Depreciation :- There are no. Fixed Assets of the
Company.
C) Investments :- Investments are valued at cost.
D) Inventories :- The stock as been valued at cost or market value,
whichever is less.
E) Amortisation of Issue Expenses :-
Public Issue Expenses are amortised over a period of ten years subject
to a maximum limit of 2.5% of Capital Employed
F) The concept of materiality is followed in the process of
recognition, aggregation, classification & presentation of financial
information.
G) Conversation/transaction of Foreign Currency Transaction There is no
Foreign Currency Transactions.
H) Recognition of amounts under 'Contingent Liabilities' and 'Capital
Commitment' is considered only in case of items exceeding Rs. 50,000/-
subject to this limit, contingent liabilities in respect of show cause
notices are considered only when they are converted into demands.
Mar 31, 2010
A) System of Accounting
1. The Financial statements have been prepared under the historical
cost convention in accordance with the Accounting Standards issued by
the Institute of Chartered Accountants of India and provisions
contained in Section 211(3C) the Companies Act, 1956 as adopted
consistently by the Company
2. The Company generally follows mercantile system of accounting and
recognises significant items of income & expenditure on accrual basis.
3. The company's unit has been established in a backward area of
Khalapur. According to the "Exemption /deferral -1988" scheme of the
Government of Maharashtra such units are entitled to differ sales tax
payments to future years. The company has accordingly not paid a sum of
Rs.ll,89,707/-which was the sales tax payable upto March, 2010
4. Taxes on Income:
Company is making huge losses from previous four years and there is no
virtual certainty of sufficient future taxable income, which will be
available against which such losses can be set-off therefore calculation
of deferred tax assets as per Accounting standard-22 not shown in the
final accounts.
5. Previous year figures are regrouped wherever necessary for the
purpose of proper comparison with that of the current year and paises
are rounded off upto nearest rupee.
B. Fixed Assets and Depreciation: -
1 The Company does not have any Fixed Assets as on 1st April 2009 and
also as on 31st March 2010.
2 Since the Company does not have any Fixed Assets, No Depreciation has
been provided for the year.
C. Investments:- Investments are valued at cost.
D Inventories:- The stock has been valued at cost or market value,
whichever is less.
E. Amortisation of Issue Expenses:-
Public Issue expenses are amortised over a period of ten years subject
to a maximum limit of 2.5% of Capital Employed.
F. The concept of materiality is followed in the process of
recognition, aggregation, classification & presentation of financial
information.
G. Conversion/transaction of Foreign Currency Transaction There are no
Foreign Currency Transactions.
H. Quantitative information pursuant to the provision of Para 3 and 4
of part - II of Schedule VI, as prepared by the management and relied
upon by the auditors is as under: