Mar 31, 2015
I. BASIS OF PREPARATION
The financial statements of Wellesley Corporation Limited have been
prepared and presented in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention
unless otherwise stated and on the basis of the principle of accrual.
GAAP comprises accounting standards as prescribed under section 133 of
Companies Act 2013(ÂAct') read with rule 7 of the Companies
(Accounts) Rules, 2014. The company, generally, follows mercantile
system of accounting and recognizes significant items of income and
expenditure on accrual basis except those with significant
uncertainties.
II. USE OF ESTIMATES
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of assets, liabilities,
revenue and expenses during the reporting period. Although such
estimates and assumptions are made on a reasonable and prudent basis
taking into account all available information, actual results could
differ from these estimates and assumptions and such differences, if
arise, are recognized in the period in which the results are
crystallized.
III CURRENT AND NON CURRENT CLASSIFICATION
All the 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 the Revised Schedule III to the Companies Act, 2013
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a) it is expected to be realised in, or is intended for sale or
consumption in, the Company's normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is expected to be realised within 12 months after the reporting
date; or
d) it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria:
a) it is expected to be settled in the Company's normal operating
cycle;
b) it is held primarily for the purpose of being traded;
c) it is due to be settled within 12 months after the reporting date;
or
d) the Company does not have an unconditional right to defer settlement
of the liability for at least 12 months after the reporting date.Terms
of a liability that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do not affect its
classification.
Current assets / liabilities include the current portion of non current
financial assets / liabilities respectively. All other assets /
liabilities are classified as noncurrent.
Normal operating cycle (Six months) is based on the time between the
acquisition of assets for processing and their realisation into cash
and cash equivalents
IV. CASH FLOW STATEMENT
The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information. Cash
flows from operating activities are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.
V. TANGIBLE FIXED ASSETS & DEPRECIATION Tangible Assets.
Fixed assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. Borrowing costs
relating to acquisition to fixed assets which takes a substantial
period of time to get ready for its intended use are also included to
the extent they relates to the period till such assets are ready to be
put to use.
Depreciation
Depreciation on assets is provided using the Straight Line Method at
the rates computed based on the estimated useful life of the assets,
which are equal to corresponding rates prescribed under the Schedule II
to the Companies Act, 2013.
VI RETIREMENT AND OTHER EMPLOYEE BENEFITS.
Defined Contribution Plan
Contributions to the provident and pension funds are made monthly at a
predetermined rate to the Regional Provident Fund Commissioner and
debited to the profit and loss account on an accrual basis. There are
no other obligations other than the contribution payable to the
respectable funds.
Defined Benefit Plan
The liability in respect of defined 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 employees' services, consistent with the advice of
qualified actuaries.
The long term obligations are measured at present value of estimated
future cash flows discounted at rates reflecting the yields on risk
free government bonds that have maturity dates approximating the terms
of the Company's obligations. Short- term employee benefit
obligations are measured on an undiscounted basis and are expensed as
the related service is provided.
All actuarial gains and losses arising during the year are recognized
in the statement of profit and loss.
VIII. INVENTORIES
Inventories are stated at cost or net realizable value, whichever is
lower. Net realisable value (NRV) is the estimated selling price in the
ordinary course of the business, less the estimated costs of completion
and the estimated costs necessary to make the sale. Cost of inventories
comprises all cost of purchase, cost of conversion and other costs
incurred in bringing the inventories to their present location and
condition. The cost of all categories of inventory is determined using
weighted average cost method. The cost is arrived at first in first out
basis(FIFO).
IX. REVENUE RECOGNITION Sale of Goods
Revenue from sale of goods is recognised when significant risks and
rewards in respect of ownership of products are transferred to
customers. Sale of goods is recognised on dispatch of goods. Sales
excludes sales tax / VAT, discounts and returns as applicable.
Sale of Services
Revenue from rendering of services priced on a time and material basis
is recognised on rendering of services as per the terms of contracts
with customers
X. INCOME TAX EXPENSE
Income tax expense comprises current tax and deferred tax charge or
credit.
Current tax.-The current charge for income taxes is calculated in
accordance with the relevant tax Regulations applicable to the Company.
Deferred tax.-Deferred tax charge or credit reflects the tax effects of
timing differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognised using the tax rates
that have been enacted or substantially enacted by the balance sheet
date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognised only if there is a virtual
certainty of realisation of such assets. Deferred tax consequences of
timing differences that originate in the tax holiday period and reverse
after the tax holiday period are recognised in the period in which the
timing differences originate. Timing differences that originate and
reverse within the tax holiday period are not considered for deferred
tax purposes. Deferred tax assets are reviewed at each balance sheet
date and are written-down or written-up to reflect the amount that is
reasonably/virtually certain (as the case maybe) to be realised.
Deferred tax assets and liabilities are offset where the Company has a
legally enforceable right to set-off assets against liabilities
representing current tax.
XI. RESEARCH & DEVELOPMENT
Development activities involve a plan or design for the production of
new or substantially improved products and processes. Development
expenditure is capitalized only if:
- Development costs can be measured reliably;
- The product or process is technically and commercially feasible;
- Future economic benefits are probable; and
- The Company intends to and has sufficient resources to complete
development and has the ability to use or sell the asset.
XII. EARNING PER SHARE
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. Since there is no potential
dilutive equity shares hence there is no impact on basic EPS while
calculating dilutive EPS.
XIII. SEGMENT REPORTING
In accordance with AS-17 "Segment Reporting", segment information
has been given in the consolidated financial statements of Usha General
Food Limited (holding company) and therefore, no separate disclosure on
segment information is given in these financial statements.
XIII PROVISIONS
A provision is recognized when an company has a present obligation as a
result of past event; it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted to its present
value and are determined on best estimate basis required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized not disclosed in the
financial statement.
XIV IMPAIRMENT
The carrying amounts are reviewed at each balance sheet date if there
is any indication of impairment based on internal/external factors. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is greater of
the asset's net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
Mar 31, 2014
I. BASIS OF PREPARATION
The financial statements of Wellesley Corporation Limited have been
prepared and presented in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention
unless otherwise stated and on the basis of the principle of accrual.
GAAP comprises accounting standards notified by the Central Government
of India under Section 211 (3C) of the Companies Act, 1956, as amended,
to the extent applicable, other pronouncements of Institute of
Chartered Accountants of India, the provisions of Companies Act, 1956.
The company, generally, follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual basis
except those with significant uncertainties.
II. USE OF ESTIMATES
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of assets, liabilities,
revenue and expenses during the reporting period. Although such
estimates and assumptions are made on a reasonable and prudent basis
taking into account all available information, actual results could
differ from these estimates and assumptions and such differences, if
arise, are recognized in the period in which the results are
crystallized.
Ill CURRENT AND NON CURRENT CLASSIFICATION
All the 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 the Revised Schedule VI to the Companies Act, 1956.
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a) it is expected to be realised in, or is intended for sale or
consumption in, the Company''s normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is expected to be realised within 12 months afterthe reporting
date; or
d) it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months afterthe
reporting date.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria:
a) it is expected to be settled in the Company''s normal operating
cycle;
b) it is held primarily for the purpose of being traded;
c) it is due to be settled within 12 months afterthe reporting date; or
d) the Company does not have an unconditional right to defer settlement
of the liability for at least 12 months after the reporting date.Terms
of a liability that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do not affect its
classification.
Current assets / liabilities include the current portion of non current
financial assets / liabilities respectively. All other assets /
liabilities are classified as noncurrent.
Normal operating cycle (Six months) is based on the time between the
acquisition of assets for processing and their realisation into cash
and cash equivalents
IV. CASH FLOW STATEMENT
The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information. Cash
flows from operating activities are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.
V TANGIBLE FIXED ASSETS & DEPRECIATION
Tangible Assets.
Fixed assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price and any attributable cost cf bringing the
asset to its working condition for its intended use. Borrowing costs
relating to acquisition to fixed assets which takes a substantial
period of time to get ready for its intended use are also included to
the extent they relates to the period till such assets are ready to be
put to use.
Depreciation
Depreciation on assets is provided using the Straight Line Method at
the rates computed based on the estimated useful life of the assets,
which are equal to corresponding rates prescribed under the Schedule
XIV to the Companies Act, 1956.
VI RETIREMENT AND OTHER EMPLOYEE BENEFITS.
Defined Contribution Plan
Contributions to the provident and pension funds are made monthly at a
predetermined rate to the Regional Provident Fund Commissioner and
debited to the profit and loss account on an accrual basis. There are
no other obligations other than the contribution payable to the
respectable funds.
Defined Benefit Plan
The liability in respect of defined 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 employees'' services, consistent with the advice of
qualified actuaries.
The long term obligations are measured at present value of estimated
future cash flows discounted at rates reflecting the yields on risk
free government bonds that have maturity dates approximating the terms
of the Company''s obligations. Short- term employee benefit obligations
are measured on an undiscounted basis and are expensed as the related
service is provided.
All actuarial gains and losses arising during the year are recognized
in the statement of profit and loss.
VIII. INVENTORIES
Inventories are stated at cost or net realizable value, whichever is
lower. Net realisable value (NRV) is the estimated selling price in the
ordinary course of the business, less the estimated costs of completion
and the estimated costs necessary to make the sale. Cost of inventories
comprises all cost of purchase, cost of conversion and other costs
incurred in bringing the inventories to their present location and
condition. The cost of all categories of inventory is determined using
weighted average cost method. The cost is arrived at first in first out
basis(FIFO).
IX. REVENUE RECOGNITION
Sale of Goods
Revenue from sale of goods is recognised when significant risks and
rewards in respect of ownership of products are transferred to
customers. Sale of goods is recognised on dispatch of goods. Sales
excludes sales tax / VAT, discounts and returns as applicable.
Sale of Services
Revenue from rendering of services priced on a time and material basis
is recognised on rendering of services as per the terms of contracts
with customers
X. INCOME TAX EXPENSE
Income tax expense comprises current tax and deferred tax charge or
credit.
Current tax.-The current charge for income taxes is calculated in
accordance with the relevant tax Regulations applicable to the Company.
Deferred tax.-Deferred tax charge or credit reflects the tax effects of
timing differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognised using the tax rates
that have been enacted or substantially enacted by the balance sheet
date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognised only if there is a virtual
certainty of realisation of such assets. Deferred tax consequences of
timing differences that originate in the tax holiday period and reverse
after the tax holiday period are recognised in the period in which the
timing differences originate. Timing differences that originate and
reverse within the tax holiday period are not considered for deferred
tax purposes. Deferred tax assets are reviewed at each balance sheet
date and are written-down or written-up to reflect the amount that is
reasonably/virtually certain (as the case maybe) to be realised.
Deferred tax assets and liabilities are offset where the Company has a
legally enforceable right to set-off assets against liabilities
representing current tax.
XI. RESEARCH & DEVELOPMENT
Development activities involve a plan or design for the production of
new or substantially improved products and processes. Development
expenditure is capitalized only if:
Development costs can be measured reliably;
The product or process is technically and commercially feasible;
Future economic benefits are probable; and
The Company intends to and has sufficient resources to complete
development and has the ability to use or sell the asset.
XII. EARNING PER SHARE
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. Since there is no potential;
dilutive equity shares hence there is no impact on basic EPS while
calculating dilutive EPS.
XIII. SEGMENT REPORTING
In accordance with AS-17 "Segment Reporting", segment information has
been given in the consolidated financial statements of Usha General
Food Limited (holding company) and therefore no separate disclosure on
segment information is given in these financial statements.
XIII. PROVISIONS
A provision is recognized when an company has a present obligation as a
result of past event; it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted to its present
value and are determined on best estimate basis required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized not disclosed in the
financial statement.
XIV. IMPAIRMENT
The carrying amounts are reviewed at each balance sheet date if there
is any indication of impairment based on internal/external factors. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is greater of
the asset''s net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
Mar 31, 2013
I. BASIS OF PREPARATION
The financial statements have been prepared to comply 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 financial statements have
been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the Company
II. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liability at the date of the financial
statements and the results of operations during the reporting period.
Although these estimates are based upon management''s best knowledge of
current events and actions, actual results could differ from these
estimates.
III. FIXEDASSETS
Tangible Assets.
Fixed assets are stated at cost, less accumulated depreciation and
impairment loses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition to fixed
assets which takes a substantial period of time to get ready for its
intended use are also included to the extent they relates to the period
till such assets are ready to be put to use.
Intangible Assets
Intangible assets are carried at cost less accumulated amortization and
impairment losses.if any The cost of an intangible asset comprises its
purchase price,including any import duties and and other taxes (other
than those subsequently recoverable from the taxing authorities )and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates.subsequently
expenditure on an intangible asset after its purchase /completion is
recognized as an expenses when incurred unless its is probable that
such expenditure will enable the asset to generate future economic
benefits in excess of its originally assessed standards of performance
and such expenditure can be measured and attributed to the asset
reliably ,in which cases such expenditure is added to the cost of the
asset.
IV. DEPRECIATION
Depreciation on assets is provided using the Straight Line Method at
the rates computed based on the estimated useful life of the assets,
which are equal to corresponding rates prescribed underthe Schedule XIV
to the Companies Act, 1956.
V IMPAIRMENT
The carrying amounts are reviewed at each balance sheet date if there
is any indication of impairment based on internal/external factors. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is greater of
the asset''s net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the assets over its remaining useful life.
VI INVESTMENTS
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investment is classified as long-term investment. Current investments
are carried at the lower of cost and fair value determined on an
individual investment basis. Long Term Investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporarily in the value of the investments.
VII. RETIREMENT AND OTHER EMPLOYEE BENEFITS.
Defined Contribution Plan
Contributions to the provident and pension funds are made monthly at a
predetermined rate to the Regional Provident Fund Commissioner and
debited to the profit and loss account on an accrual basis. There are
no other obligations other than the contribution payable to the
respectable funds.
Defined Benefit Plan
Gratuity liability is defined benefit obligations and liability toward
gratuity is provided on the basis of an actuarial valuation as at
balance sheet date using the Projected Unit Credit method and debited
to the profit and loss account on an accrual basis. Actuarial gains
and losses arising during the year are recognized in the profit and
loss account.
Long term compensated absence is similarity valued on an actuarial
basis. Short term compensated absence are provided for on estimates
basis.
VIII. INVENTORIES
Inventories are stated at cost or net realizable value, whichever is
lower. The cost is arrived at on first in first out method (FIFO).
IX. REVENUE RECOGNITION
Sales have been recognized on the basis of works completed, completion
of services & dispatch of goods and billed to the customers.
X. PRIOR PERIOD ITEMS
Income and Expenses pertaining to the earlier year, if any, which have
a material impact on the financial statements are disclosed
separately,.
XI. TAXATION
Tax expense is comprised of current and deferred tax. Current income
tax is measured at the amount expected to be paid to the authority in
accordance with the Income - tax Act, 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax and deferred tax liabilities
relate to the taxes on income levied by some governing taxation laws.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against such deferred tax assets can be realized. In
situations where the company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognized only if
there is virtual certainty supported by convincing evidence that they
can be realized against future taxable profits.
At each balance sheet date the Company re-assesses unrecognized
deferred tax assets. It recognized unrecognized deferred tax assets to
the extent that it has become reasonable certain or virtually certain,
as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
XII. EARNING PER SHARE
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. Partly paid equity shares are
treated as fraction of an equity share to the extent that they were
entitled to participate in dividends relative to a fully paid equity
share during the reporting period.
XIII PROVISIONS
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined bases on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates. Contingent liabilities are not recognized but are disclosed
in the notes. Contingent assets are neither recognized not disclosed in
the financial statement.
Mar 31, 2012
I. BASIS OF PREPARATION
The financial statements have been prepared to comply 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 financial statements have
been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the Company
II. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liability at the date of the financial
statements and the results of operations during the reporting period.
Although these estimates are based upon management's best knowledge
of current events and actions, actual results could differ from these
estimates.
III. FIXEDASSETS
Fixed assets are stated at cost, less accumulated depreciation and
impairment loses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition to fixed
assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relates to the period
till such assets are ready to be put to use.
IV. DEPRECIATION
Depreciation on assets is provided using the Straight Line Method at
the rates computed based on estimated useful life of the assets, which
are equal to corresponding rates prescribed under Schedule XIV to the
Companies Act, 1956.
V. IMPAIRMENT
The carrying amounts are reviewed at each balance sheet date if there
is any indication of impairment based on internal/external factors. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is greater of
the asset's net selling price and value in use. In assessing valuein
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the assets over its remaining useful life.
VI. INVESTMENTS
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investment are classified as long-term investment. Current investments
are carried at lower of cost and fair value determined on an individual
investment basis. Long Term Investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments.
VII. RETIREMENT AND OTHER EMPLOYEE BENEFITS.
Defined Contribution Plan
Contributions to the provident and pension funds are made monthly at a
predetermined rate to the Regional Provident Fund Commissioner and
debited to the profit and loss account on an accrual basis. There are
no other obligations other than the contribution payable to the
respectable funds.
Defined Benefit Plan
Gratuity liability is defined benefit obligations and liability toward
gratuity is provided on the basis of an actuarial valuation as at
balance sheet date using the Projected Unit Credit method and debited
to the profit and loss account on an accrual basis. Actuarial gains
and losses arising during the year are recognized in the profit and
loss account.
Long term compensated absence is similarity valued on an actuarial
basis. Short term compensated absence are provided for on estimates
basis.
VIII. INVENTORIES
Inventories are stated at cost or net realizable value, whichever is
lower. The cost is arrived at on first in first out method (FIFO).
IX. REVENUE RECOGNITION
Sales have been recognized on the basis of works completed and billed
to the customers.
X. PRIOR PERIOD ITEMS
Income and Expenses pertaining to the earlier year, if any, which have
a material impact on the financial statements are disclosed
separately,.
XI. TAXATION
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the authority in
accordance with Income-tax Act, 1961. Deferred income taxes reflects
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax and deferred tax liabilities
relate to the taxes on income levied by some governing taxation laws.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against such deferred tax assets can be realized. In
situation where the company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognized only if
there is virtual certainty supported by convincing evidence that they
can be realized against future taxable profits.
At each balance sheet date the Company re-assesses unrecognized
deferred tax assets. It recognized unrecognized deferred tax assets to
the extent that it has become reasonable certain or virtually certain,
as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
XII. EARNING PER SHARE
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. Partly paid equity shares are
treated as fraction of an equity share to the extent that they were
entitled to participate in dividends relative to a fully paid equity
share during the reporting period.
XIII PROVISIONS
A provision is recognized when an enterprise has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined bases on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates. Contingent liabilities are not recognized but are disclosed
in the notes. Contingent assets are neither recognized not disclosed in
the financial statement.
Mar 31, 2010
A) The accounts have been prepared on accrual basis & at historical
cost except where stated otherwise and also on the basis of applicable
mandatory accounting standards.
b) FIXED ASSETS
Fixed assets are stated at historical cost less depreciation and at
revalued amount, if any.
DEPRECIATION
Depreciation has been provided on straight-line method as perthe rates
and manner prescribed in schedule XIV to the companies Act, 1956.
c) INVESTMENTS
Long-term investments are stated at cost and provision for permanent
diminution is made, if there is a decline in the value otherthan
temporary in nature.
d) INVENTORIES
Inventories are valued at lower of cost and Net realizable value in
case of finished goods and at cost in case of work in progress.
e) PRIOR PERIOD ITEMS
Income and Expenses pertaining to the earlier year, if any, which have
a material impact on the financial statements are disclosed
separately,.
f) RETIREMENT BENEFITS
i) Contribution to Provident fund is made monthly, at a predetermined
rate to the P. F. Department and debited to the Profit and Loss Account
on accrual basis.
ii) The provision for gratuity and leave encashment has been made as
per the actuarial valuation.
g) REVENUE RECOGNITION
Sales have been recognized on the basis of agreement to sales with the
buyer.
h) CONTINGENT LIABILITIES
Contingent Liabilities are provided on the basis of prudence.
i) INCOME TAX
Provision for Income Tax is determined on the basis of Taxable Income
forthe Year as per Income Tax Act, 1961.
j) DEFERRED TAX
Deferred taxis recognised, subject to the consideration of prudence, on
timing difference, being the difference between taxable income and
accounting income that originate in one period and capable of reversal
in one or more subsequent periods.
Mar 31, 2009
A) The accounts have been prepared on accrual basis & at historical
cost except where stated otherwise and also on the basis of applicable
mandatory accounting standards.
b) FIXED ASSETS
Fixed assets are stated at historical cost less depreciation and at
revalued amount, if any.
DEPRECIATION
Depreciation has been provided on straight-line method as per the rates
and manner prescribed in schedule XIV to the companies Act, 1956.
c) INVESTMENTS
Long-term investments are stated at cost and provision for permanent
diminution is made, if there is a decline in the value other than
temporary in nature.
d) INVENTORIES
Inventories are valued at lower of cost and Net realizable value in
case of finished goods and at cost in case of work in progress.
e) PRIOR PERIOD ITEMS
Income and Expenses pertaining to the earlier year, if any, which have
a material impact on the financial statements are disclosed
separately,.
f) RETIREMENT BENEFITS
i) Contribution to Provident fund is made monthly, at a predetermined
rate to the P. F. Department and debited to the Profit and Loss Account
on accrual basis.
ii) The provision for gratuity and leave encashment has been made as
per the actuarial valuation.
g) REVENUE RECOGNITION
Sales have been recognized on the basis of agreement to sales with the
buyer.
h) CONTINGENT LIABILITIES
Contingent Liabilities are provided on the basis of prudence.