Mar 31, 2014
A. Basis of preparation of Financial Statements
The accounts have been prepared on accrual basis and historical cost
convention in accordance with the Generally Accepted Accounting
Principles in India and the provisions of the Companies Act 1956. The
accompanying financial statements have been prepared to comply in all
material respects with the Accounting Standards notified by Companies
Accounting Standard Rules 2006 and the relevant provisions of the
Companies Act, 1956. The accounting policies have been consistently
applied by the Company and are consistent with those in the previous
year.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the required amounts of assets and
liabilities and disclosure of contingent liabilities 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.
c. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and revenue can be reliably
measured.
d. Fixed Assets and Depreciation
i. Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price, freight, duties, taxes and any
attributable cost of bringing the asset to its working condition for
its intended use.
ii. Depreciation is provided on Written Down Value method, based on
useful life of the assets as estimated by the Management which
coincides with rates prescribed under Schedule XIV to the Companies
Act, 1956.
e. Long Term investments are carried at cost less provision for
permanent diminution, if any, in value of such investments.
f. Borrowing costs:
Borrowing costs that are directly attributable to the acquisition or
the construction of a qualifying asset is capitalized for the period
until the asset is ready for its intended use. A qualifying asset is
one that necessarily takes substantial period of time i.e more than 12
months to get ready for intended use. All other borrowing costs are
charged to revenues
g. Inventories
i. Materials are valued at the lower of cost and estimated net
realizable value.
Net realizable value is the estimated selling price in the ordinary
course of business, reduced by the estimated costs of completion and
costs to effect the sale.
h. Income Tax
i. Current tax
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act, 1961.
ii. Deferred tax
Deferred income taxes is recognized, subject to the consideration of
prudence on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods. 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 are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Where the Company has carry forward of unabsorbed depreciation or tax
losses deferred tax assets are recognized only if it is virtually
certain backed by convincing evidence that such deferred tax assets can
be realized against future taxable profits.
i. Earnings per share
Basic earnings per share is calculated 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.
j. Provisions
A Provision is recognized when the Company has a present obligation as
a result of past event i.e 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 based 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.
Mar 31, 2012
During the yea 3nded 31 March 2012, the revised Schedule VI notified
under the Companies Ac 956, has become applicable to the company, for
preparation and presentation of s financial statements. The adoption of
revised Schedule VI does not impact recognition and measurement
principles allowed for preparation of financial stater 3nts. 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.
* Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amour of revenues, expenses, assets and
Iiabilities and the disclosure of contingent liablities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
abo these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
* Fixed Assets
Fixed Assets are stated at cost. Depreciation of fixed assets is
calculated at the rates prescribed under Schedule XIV to the Companies
Act, 1956.
* Depreciation
Depreciation on fixed assets in provided on straight-line method at the
rates prescribe in Schedule XIV to the Company Act, 1956.
* Investment
Investments, which are readily realizable and intended to be held for
not more than one year from he date on which such investments are made,
are classified as current investments. All other investments are
classified as long-term investments On initial recognition, all
investments are-measured at cost.
Current investments are earned in the financial statements at lower of
cost and fair value determii d on an individual investment basis.
Long-term investments are carried at cost On disposal of an investment,
the difference between its carrying amount and net disposal proceeds is
charged or credited to the statement of profit and loss.
* Inventories
Raw materials components, stores and spares are valued at lower of cost
and net realizable value Work in progress and finished goods are valued
at lower of cost and net realizable value.
* Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
* Income tax
* Tax expense comprises current and deferred tax. current income-tax is
measured at the amount expected to be paid to the tax author ties in
accordance with the Income-tax Ac 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date,
* Deferred income taxes reflect the impact of timing differences
between taxable income and accounting income originating during the
current year and reversal of timing differences for the earlier years.
Mar 31, 2011
1, Accounting convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1955.
2 Revenue Recognition
All Revenue income are recognised on accrual basis of accounting.
3. Expenditure
All expenses, nave been accounted lor on accrual basis
4. Fixed Assets
Fixed Asset have been stated in the books at histories cost inclusive
of all incidental expenses net of accumulated depreciation Depreciation
has been provided at the rates mentioned in Schedule XlV of the
Companies Act, 1955 on written down value method.
5. Investment
Investments are treated as long term investments and are stated at
cost. Any decline in the value of Investments, other than a temporary
decline, is recognised and charged to Profit & Loss Account.
6. Stock in trade
Stock in trade is valued at cost or net realizable value which is lower
- if any.
7. Impairement if Assets:
All assets other than inventories, investments and deferred tax assets
are reviewed for impairment wherever events or changes in circumstances
indicate that the carrying amount may not be coveraable.
8. Contingent Liabilities;
Contingent liabilities are not provided for. and if any are disclosed
separately by way of notes.