Mar 31, 2015
A. Basis of preparation of financial statements
These financial statements have been prepared to comply with the
generally accepted accounting principles in India (Indian GAAP), the
Accounting Standards notified under the relevant provisions of the
Companies Act, 2013.
The financial statements are prepared on accrual basis under the
historical cost convention. The financial statements are presented in
Indian rupees rounded off to the nearest rupee.
B. Use of Estimates
The preparation of financial statements in conformity with Indian
(GAAP) requires judgements, estimates and assumptions to be made that
affect the reported amount of assets and liabilities, disclosure of
contingent liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
C. Fixed Assets Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade
discounts and rebates, less accumulated depreciation and impairment
loss, if any. The cost of tangible assets comprises its purchase price,
borrowing cost and any cost directly attributable to bringing the asset
to its working condition for its intended use.
Subsequent expenditures related to an item of tangible assets are added
to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
D. Depreciation, Amortization and Depletion Tangible Assets
Depreciation on fixed assets is provided to the extent of depreciable
amount on the Straight Line Method (SLM). Depreciation is provided
based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.
E. Impairment
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Statement 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 change in the estimate of recoverable
amount.
F. Foreign Currency Transactions
a) Transactions denominated in foreign currencies; if any, are recorded
at the exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction
b) Monetary items denominated in foreign currencies at the year end; if
any, are restated at year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts; if any, is
recognized over the life of the contract.
c) Non monetary foreign currency items; if any, are carried at cost.
d) Any income or expense on account of exchange difference either on
settlement or on translation; if any, is recognized in the Profit and
Loss Statement.
G. Investments
Current investments are carried at lower of cost and quoted / fair
value, computed category wise. Non Current Investments are stated at
cost. Provision for diminution in the value of non current investments
is made only if such a decline is other than temporary.
H. Inventories
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence and damage, if any. Cost of
inventories comprises of cost of purchase, cost of conversion and other
costs incidental to purchase in bringing them to their respective
present location and condition.
Cost of trading and other products are determined on specific
identification basis.
I. Revenue Recognition
Revenue is recognized only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measures
and it is reasonable to expect ultimate collection. Revenue from
operations includes sale of goods less excise duty, Value Added Tax
(VAT) and adjusted for discounts (net).
Dividend income is recognized when right to receive payment is
established.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and interest rate applicable.
Rent income is recognized based on the mutual agreement between the
parties on time proportion basis.
J. Employee Benefits Short-term employee benefits
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees are recognized
as an expense during the period when the employees render the services.
These benefits include performance incentive and compensated absences.
Post employment benefits Defined Contribution Plans
Defined Contribution Plan is a post employment benefit plan under which
a Company pays specified contributions to a separate entity. The
company does not make any contribution towards Defined Contribution
Plan or towards Provident Fund, Superannuation Fund and Pension Scheme
as it is not covered under the relevant Act.
Defined Benefit Plans
The liability in respect of defined benefits plan and other post
employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected
to be derived from the employees' services.
Actuarial gains and losses in respect of post employment and other long
term benefits are charged to the Profit and Loss Statement.
K) Borrowing Costs
Borrowing costs; if any, include exchange differences arising from
foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost. Borrowing costs that are attributable
to the acquisition or construction of qualifying assets are capitalized
as a part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the profit loss
statement in the period in which they are incurred.
L) Income Taxes
Tax expenses comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rate. Deferred Income tax reflect the current
period timing difference between taxable and accounting income for the
period and reversal of timing differences of earlier years/period.
Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future income will be available
except that deferred tax assets, incase there are unabsorbed
depreciation or losses, are recognized if there is virtual certainty
that sufficient future taxable income will be available to realize the
same.
Deferred tax assets and liabilities are measured using the tax rates
and tax law that have been enacted or substantively enacted by the
Balance Sheet date.
M) Provisions, Contingent Liabilities and Contingent Assets
Provision 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.
Mar 31, 2014
A. Basis of preparation of financial statements
These financial have been prepared to comply with accounting principles
generally accepted in India (Indian GAAP), the Accounting Standards
notified under The Companies (Accounting Standards) Rules, 2006 and the
relevant provisions of the Companies Act, 1956.
The financial statements are prepared on accrual basis under the
historical cost convention. The financial statements are presented in
Indian rupees rounded off to the nearest rupee.
B. Use of Estimates
The preparation of financial statements in conformity with Indian
(GAAP) requires judgements, estimates and assumptions to be made that
affect the reported amount of assets and liabilities, disclosure of
contingent liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
C. Fixed Assets
Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade
discounts and rebates, less accumulated depreciation and impairment
loss, if any. The cost of tangible assets comprises its purchase price,
borrowing cost and any cost directly attributable to bringing the asset
to its working condition for its intended use.
Subsequent expenditures related to an item of tangible assets are added
to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
D. Depreciation, Amortization and Depletion
Tangible Assets
Depreciation on fixed assets is provided to the extent of depreciable
amount on the Written Down Value (WDV) Method. Depreciation is provided
at the rates and in the manner described in Schedule XIV to the
Companies Act, 1956.
E. Impairment
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is 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 change in the
estimate of recoverable amount.
F. Foreign Currency Transactions
a) Transactions denominated in foreign currencies; if any, are recorded
at the exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction
b) Monetary items denominated in foreign currencies at the year end; if
any, are restated at year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts; if any, is
recognized over the life of the contract.
c) Non monetary foreign currency items; if any, are carried at cost.
d) Any income or expense on account of exchange difference either on
settlement or on translation; if any, is recognized in the Statement of
Profit and Loss.
G. Investments
Current investments are carried at lower of cost and quoted / fair
value, computed category wise. Long term 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.
H. Inventories
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence and damage, if any. Cost of
inventories comprises of cost of purchase and other costs incidental to
purchase in bringing them to their respective present location and
condition.
Cost of trading and other products are determined on specific
identification basis.
I. Revenue Recognition
Revenue is recognized only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measures
and it is reasonable to expect ultimate collection. Revenue from
operations includes sale of goods, Value Added Tax (VAT) and adjusted
for discounts (net).
Dividend income is recognized when right to receive payment is
established.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and rate applicable.
Rent income is recognized based on the mutual agreement between the
parties on time proportion basis.
J. Employee Benefits
Short-term employee benefits
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees are recognized
as an expense during the period when the employees render the services.
Post employment benefits
Defined Contribution Plans
Defined Contribution Plan is a post employment benefit plan under which
a Company pays specified contributions to a separate entity. The
company does not make any contribution towards Provident Fund,
Superannuation Fund and Pension Scheme as it is not covered under the
relevant Act.
Defined Benefit Plans
The liability in respect of defined benefits plan is benefit plans and
other post employment benefits is calculated using the Projected Unit
Credit Method and spread over the period during which the benefit is
expected to be derived from the employees'' services.
Actuarial gains and losses in respect of post employment and other long
term benefits are charged to the Statement of Profit and Loss.
K) Borrowing Costs
Borrowing costs; if any, include exchange differences arising from
foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost. Borrowing costs that are attributable
to the acquisition or construction of qualifying assets are capitalized
as a part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the statement of
profit loss in the period in which they are incurred.
L) Income Taxes
Tax expenses comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rate. Deferred Income tax reflect the current
period timing difference between taxable and accounting income for the
period and reversal of timing differences of earlier years/period.
Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future income will be available
except that deferred tax assets, incase there are unabsorbed
depreciation or losses, are recognized if there is virtual certainty
that sufficient future taxable income will be available to realize the
same.
Deferred tax assets and liabilities are measured using the tax rates
and tax law that have been enacted or substantively enacted by the
Balance Sheet date.
M) Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized in the accounts when there is a present
obligation as a result of past event(s) and it is probable that there
will be an outflow of resources will be required to settle the
obligation and a reliable estimate can be made. Provisions are not
discounted to their present value and are determined based on the best
estimate required to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect
the current best estimate.
Contingent Liabilities are disclosed unless the possibility of outflow
of resources is remote. Contingent Assets are neither recognized nor
disclosed in the financial statements.
18.1 As per Accounting standard 15 "Employees benefit" the disclosures
as defined in the Accounting standard are given below.
Defined Contribution Plan
No contribution has been made to defined contribution plans. The
company does not made contribution to provident fund as they are not
covered by Employees provident fund and Miscellaneous provision Act
1952.
Defined benefit plan
The company provision for gratuity is the defined benefit plan. The
present value of the obligation is determined based on actuarial
valuation using the Projected unit Credit Method, which recognises 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 company does not recognise leave encashment.
Mar 31, 2013
A. Basis of preparation of financial statements
The financial statements are prepared under the historical cost
conventions on an accrual basis of accounting, in conformity with
accounting principles generally accepted in India and complying in all
material respects with the Accounting standards notified by companies
(Accounting Standards) Rules, 2006 (As amended) and the relevant
provisions of the companies Act, 1956 (''the Act''). The accounting
policies have been consistently applied by the company and are
consistent with those used in the previous years.
b. Use of Estimates
The preparation of the financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known / materialised.
C. Fixed Assets and Depreciation
Fixed Assets are stated at the cost of acquisition or construction less
accumulated depreciation. The Company capitalizes all direct costs
relating to the acquisition of respective fixed asset.
Depreciation on assets is provided using the written down value method
at the rates prescribed under Schedule XIV of the Companies Act, 1956.
Depreciation is calculated on pro-rata basis from / till the date of
installation / disposal (sale).
D. Impairment of Assets
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting is
reversed if there has been a change in estimate of recoverable amount.
E. Foreign Currency Transactions
a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward exchange contracts if applicable, the difference between the
year end rate and rate on the date of the contract is recognised as
exchange difference and the premium paid / received on forward
contracts is recognised over the life of the contract.
c) Non monetary foreign currency items are carried at cost.
d) any income or expense on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account.
F. Investments
Current investments are carried at lower of cost and quoted / fair
value, computed category wise. Long term 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
G. Inventories
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence and damage, if any. Cost of
inventories comprises of cost of purchase and other costs incidental to
purchase.
H. Revenue Recognition
Revenue is recognized only when it can be reliably measures and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, sales tax, Value Added Tax (VAT) and gain /
loss on corresponding hedge contracts. Dividend income is recognized
when right to receive is established. Interest income is recognized on
time proportion basis taking into account the amount outstanding and
rate applicable.
I. Sales Tax / Value Added Tax
Sales tax / value added tax paid is charged to profit and loss account.
J. EMPLOYEE BENEFITS
a) short term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
b) post employment and other long term employee benefits are recognised
as an expense in the Profit and Loss account for the year in which the
employee has rendered services. The expense is recognised at the
present value of the amounts payable determined using actuarial
valuation techniques, actuarial gains and losses in respect of post
employment and other long term benefits are changed to the Profit and
Loss account.
K. Borrowing Costs
All other borrowing costs are charged to the Profit and Loss account.
L. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provision of the income tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the assets will be realized in
future.
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.
Mar 31, 2012
A. Basis of preparation of financial statements
The financial statements are prepared under the historical cost
conventions on an accrual basis of accounting. in conformity With
accounting principles generally accepted in India and complying in all
material respects with the Accounting standards notified by companies
(Accounting Standards) Rules. 2006 (As amended) and the relevant
provisions of the companies Act, 1956. (the Act) The accounting
policies have been consistently applied by the company and are
consistent with those used in the previous years except for changes in
accounting policies described in note 11 (c) below
b. Use of estimates
The preparation of the financial statements in conformity with the GAAP
requires that the management to make estimates and assumption that
affect the reported amount of assets and liabilities and the disclosure
of contingent liabilities on the date of the financial statements and
the results of operations during the reporting year end. Although these
estimates are based upon management's best knowledge of current events
and actions, actual results could differ from those estimates, actual
result could differs from those estimates.
c. Changes In accounting policy
Presentation and disclosure of financial statements.
During the year ended March 31.2012 the revised schedule VI notified
under the act has become applicable to the company for the preparation
and presentation of Its financial statement. The adoption of revised
schedule VI does not impact recognition and measurement principles
followed for preparations of financial statement However, it has
significant impact on presentation and disclosures made in the
financial statements. The company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
All assets and liabilities have been classified as current or
non-current as per the company's normal operating cycle and of her
criteria set out in Revised Schedule VI of the Act
Based on the nature of the services and their realization in cash and
cash equivalents, the company has ascertained its operating cycle as 12
months for the purpose of current / non current classification of
assets and liabilities.
D. Fixed Assets and Depreciation
Fixed Assets are stated at the cost of acquisition or construction less
accumulated depreciation. The Company capitalizes all direct costs
relating to the acquisition of respective fixed asset.
Depreciation on assets is provided using the written down value method
al the rates prescribed under Schedule XIV of the Companies Act, 1956.
Depreciation is calculated on pro-rata basis from / till the date of
installation / disposal (sale).
E. Impairment of Assets
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting is
reversed if there has been a change in estimate of recoverable amount.
F. Foreign Currency Transactions
a) Transaction denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward exchange contracts if applicable, the difference between the
year end rate and rate on the date of the contract is recognized as
exchange difference and the premium paid/received on forward contracts
is recognized over the life of the contract.
c) Non monetary foreign currency items are carried at cost
d) any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
account
G. Investments
Current investments are carried at lower of cost and quoted / fair
value. computed category wise. Long term 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
H. Inventories
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence and damage, it any. Cost of
inventories comprises of cost of purchase and of her costs incidental
to purchase.
I. Revenue Recognition
Revenue is recognized only when it can be reliably measures and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, sales tax, excise duty adjusted for discounts
(net). Value Added Tax (VAT) and gain/loss on corresponding hedge
contracts. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking into account the amount outstanding and rate applicable.
J. Sales Tax / Value Added Tax
Sales tax / value added tax paid is charged to profit and loss account
K. EMPLOYEE BENEFITS
a) short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
b) post employment and of her long term employee benefits are
recognized as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amounts payable determined using actual
valuation techniques, actuarial gains and losses in respect of post
employment and of her long term benefits are changed to the profit and
loss account.
L. Borrowing Costs
All of her borrowing costs are charged to the Profit and Loss account.
M. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provision of the income tax Act. 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognized and carried forward only to the extent
that there is a virtual certainty that the assets will be realized in
future.
N. 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 but are disclosed in
the financial statements.
Mar 31, 2010
A. Basis of preparation of financial statements
The financial statements have been prepared under the historical cost
conventions on an acrrual basis of accounting and in accordance with
the generally accepted accounting principles & accounting standards to
the extent applicable and the Provisions of the Companies Act, 1956.
b. Use of estimates
The preparation of the financial statements in conformity with the GAAP
requires that the management make estimates and assumption that affect
the reported amount of assets and liabilities and the disclosure of
contigent liabilities on the date of the financial statements. Actual
result could differs from those estimates.
c. Fixed Assets and Depreciation
Fixed Assets are carried at the cost of acquisition or construction
less accumulated depreciation. The cost of fixed assets includes taxes,
duties, freight, and other incidental expenses related to the
acquisition and installation of the respective assets.
Depreciation on assets is provided using the written down value method
at the rates prescribed under Schedule XIV of the Companies Act, 1956.
Depreciation is calculated on pro-rata basis from / till the date of
installation / disposal (sale).
d. Foreign Currency Transactions and Balances
Foreign currency transactions are recorded using the exchange rates on
the date of the respective transactions.
Exchange differences arising on foreign currency transactions settled
during the year are recognized in the profit and loss account.
Monetary assets and liabilities denominated in foreign currency at the
balance sheet date are translated at year end rates. The resultant
exchange differences are recognized in the profit and loss account, if
any.
e. Investments
Investments are carried at cost. No provision for demunition in value
is provided as they are long term investment.
f. Inventory of Finished Goods
Inventories are valued at lower of cost and net realizable value. Cost
of inventory comprise of accuisition cost, custom duty, license and
labour charges. The cost of inventory is determined at the specific
cost of purchase.
g. Revenue Recognition
Revenue from sale of good is recognized when significant risk and
rewards in respect of ownership of the products are transferred to the
customers.
Revenue from gross sales of goods is stated exclusive of excise duty
and sales tax duty and exclusive of returns and trade discounts.
Dividend income is recognized when the unconditional right to receive
the income is established. Income from interest on deposits is
recognised on time proportionate basis.
h. Retirement benefits
Provident Fund : The Company is not covered within purview of the
Employees
Provident Fund and Miscellaneous Provisions Act, 1952 as the number of
employees is within the limit prescribed under the statue.
Gratuity : Provisions for gratuity is made, however no deposit for the
same has been made with appropriate authority.
Leave Encashment : No provision for leave encashment is made as the
employees are not entitled to encash the accumulated leave balance
lying to their credit.
i. Income Tax Expenses
Income tax comprises tax and deferred tax charge or credit.
Current Tax : The current charge for income taxes is calculated in
accordance with the relevant tax regulations.
Deferred Tax : Deferred tax charge or credit reflects the tax effects
of timing differences between accounting income and total income for
the period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward
losses, deferred tax assets are recognized only if there is virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and written down or written up to
reflect the amount that is reasonably / virtually certain ( as the case
may be) to be realized.
j. Proposed Dividend
No Dividend has been proposed by the board of directors.
k. Earning per share
Basic and diluted Earning per share is computed by dividing the net
profit attributable to Equity Shareholders for the year with the
weighted number of Equity Shares outstanding during the year.
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