Mar 31, 2014
1.1 Basis of preparation of financial statements
The financial statements are prepared under historical cost convention,
on a going concern basis and in accordance with the applicable
accounting standards prescribed in the Companies (Accounting Standards)
Rules, 2006 issued by the Central Government, in consultation with the
National Advisory Committee on Accounting Standards and relevant
provisions of the Companies Act, 1956. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use.
1.2. Use of Estimates
The preparation of financial statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balance of assets and liabilities, revenue and expenses and disclosures
relating to contingent liabilities. The Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these
estimates. Any revision of accounting estimates is recognized
prospectively in the current and future periods.
1.3. Fixed Assets and Depreciation
Fixed assets are stated at cost of acquisition inclusive of freight,
duties & taxes and incidental expenses related to acquisition up to the
date of installation. Cost of Fixed assets are further adjusted by the
amount of Modvat/Cenvat credit availed and VAT credit wherever
applicable. Interest and finance charges incurred are allocated to the
respective fixed assets of installation.
Depreciation on fixed assets is provided, on Written Down Value method,
at the rate prescribed in Schedule XIV to the Companies Act, 1956. The
depreciation on assets acquired/sold/discarded during the year is
provided from/up to the month in which the asset is
commissioned/sold/discarded except in case of fixed assets costing up
to Rs. 5,000/- where, depreciation is provided for the whole year.
1.4. Valuation of Inventories
Raw materials and packing materials are valued at lower of cost or net
realizable value after providing for obsolescence if any. However,
these items are considered to be realizable at cost if the finished
products, in which they will be used, are expected to be sold at or
above cost.
Work-in-process and finished goods are valued at lower of cost or net
realizable value. Finished goods and work-in-process include costs of
raw material, labor, conversion costs and other costs incurred in
bringing the inventories to their present location and condition.
Cost of finished goods excludes excise duty.
Cost of inventories is computed on weighted average basis.
1.5. Investments
Long term investments are stated at cost, less provision for diminution
(other than temporary) in value.
1.6. Provisions, Contingent Liabilities and ContingentAssets
A provision is recognized when the Company has a present obligation as
a result of a 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 based on best estimate required to
settle the obligation at the Balance Sheet date.
Contingent assets are neither recognized nor disclosed in the financial
statements.
1.7. Revenue Recognition
Revenue is recognized to the extent that is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured.
Revenue from sale of goods is recognized when significant risks and
rewards of ownership of the goods have been passed to the buyer, which
ordinarily coincides with dispatch of goods to customers. Revenues are
recorded at invoice value, net of sales tax, returns and trade
discounts.
Revenue from rendering of services are recognized on completion of
services. Interest income is recognized on time proportion basis.
Dividend income is recognized when the right to receive established.
1.8 Tax
Provision for Income Tax has been made at the current tax rates based
on assessable income or on the basis of Section 115 JB of the Income
Tax Act, 1961 (MinimumAlternate Tax) whichever is higher.
Deferred Tax 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.
1.9. Employee Benefits
Contribution to Gratuity and Super annulations funds, Leave, Salary,
Bonus and Pension are accounted on cash basis in our opinion this is
against the accounting standard (AS-15).
1.10 Borrowing Costs
Borrowing Costs attributable to acquisition and/or construction of
qualifying assets are capitalized as a part of the cost of such assets,
up to the date such assets are ready for their intended use. Other
financing/ borrowing costs are charged to the Statement of Profit and
Loss.
1.11 Impairment of Assets
At each Balance Sheet date, the company assesses whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and the amount of such impairment loss is charged to
the Statement of Profit and Loss. If, at the Balance Sheet date, there
is an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is assessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated
historical cost.
1.12 Earnings per Share
Basic earnings per share are 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.
For the purpose of calculating diluted earnings per share, the net
profit attributable to equity shareholders and the weighted average
number of shares outstanding are adjusted for the effect of all
delusive potential equity shares from the exercise of options on
unissued share capital. The number of equity shares is the aggregate of
the weighted average number of Equity Shares and the weighted average
number of equity shares which would be issued on the conversion of all
the dilutive potential equity shares into equity shares.
Mar 31, 2013
1. Significant Accounting Policies
1.1 Basis of preparation of financial statements
The financial statements are prepared under historical cost convention,
on a going concern basis and in accordance with the applicable
accounting standards prescribed in the Companies (Accounting Standards)
Rules, 2006 issued by the Central Government, in consultation with the
National Advisory Committee on Accounting Standards and relevant
provisions of the Companies Act, 1956. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use.
1.2. Use of Estimates
The preparation of financial statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balance of assets and liabilities, revenue and expenses and disclosures
relating to contingent liabilities. The Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these
estimates. Any revision of accounting estimates is recognised
prospectively in the current and future periods.
1.3. Fixed Assets and Depreciation
Fixed assets are stated at cost of acquisition inclusive of freight,
duties & taxes and incidental expenses related to acquisition up to the
date of installation. Cost of Fixed assets are further adjusted by the
amount of Modvat/Cenvat credit availed and VAT credit wherever
applicable. Interest and finance charges incurred are allocated to the
respective fixed assets of installation. Fixed assets under
construction, advance paid towards acquisition of fixed assets and cost
of assets not put to use before year end are shown as long term loans &
Advances.
Depreciation on fixed assets is provided, on Written Down Value method,
at the rate prescribed in Schedule XIV to the Companies Act, 1956. The
depreciation on assets acquired/sold/discarded during the year is
provided from/up to the month in which the asset is
commissioned/sold/discared except in case of fixed assets costing up to
Rs. 5,000/-where, depreciation is provided forthe whole year.
1.4 Valuation of Inventories
Raw materials and packing materials are valued at lower of cost or net
realisable value after providing for obsolescence if any. However,
these items are considered to be realisable at cost if the finished
products, in which they will be used, are expected to be sold at or
above cost.
Work-in-process and finished goods are valued at lower of cost or net
realisable value. Finished goods and work-in-process include costs of
raw material, labour, conversion costs and other costs incurred in
bringing the inventories to their present location and condition.
Cost of finished goods excludes excise duty.
Cost of inventories is computed on weighted average basis.
1.5 Investments
Long term investments are stated at cost, less provision for diminution
(other than temporary) in value.
1.6 Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has a present obligation as
a result of a 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 based on best estimate required to
settle the obligation at the Balance Sheet date.
A disclosure of contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision ordisclosure is made.
Contingent assets are neither recognised nor disclosed in the financial
statements.
1.7 Revenue Recognition
Revenue is recognised to the extent that is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured.
Revenue from sale of goods is recognised when significant risks and
rewards of ownership of the goods have been passed to the buyer, which
ordinarily coincides with despatch of goods to customers. Revenues are
recorded at invoice value, net of sales tax, returns and trade
discounts.
Revenue from rendering of services are recognised on completion of
services, Interest income is recognised on time proportion basis.
Dividend income is recognised when the right to receive I established.
1.8 Tax
Provision for Income Tax has been made at the current tax rates based
on assessable income or on the basis of Section 115 JB of the Income
Tax Act, 1961 (Minimum Alternate Tax) whicheveris higher.
Deferred Tax is recognised, 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.
1.9 Employee Benefits
Contribution to Gratuity and Superannuations funds, Leave, Salary,
Bonus and Pension are accounted on cash basis in our opinion this is
against the accounting standard (AS-15).
1.10 Borrowing Costs
Borrowing Costs attributable to acquisition and/or construction of
qualifying assets are capitalised as a part of the cost of such assets,
up to the date such assets are ready for their intended use. Other
financing/ borrowing costs are charged to the Statement of Profit and
Loss.
1.11 Impairment of Assets
At each Balance Sheet date, the company assesses whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and the amount of such impairment loss is charged to
the Statement of Profit and Loss. If, at the Balance Sheet date, there
is an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is assessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated
historical cost.
1.12 Earning 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.
For the purpose of calculating diluted earnings per share, the net
profit attributable to equity shareholders and the weighted average
number of shares outstanding are adjusted for the effect of all
delusive potential equity shares from the exercise of options on
unissued share capital. The number of equity shares is the aggregate of
the weighted average number of Equity Shares and the weighted average
number of equity shares which would be issued on the conversion of all
the dellutive potential equity shares into equity shares.
Mar 31, 2010
(i) Basis of Accounting
These Financial statements have been drawn up using the historical cost
conven- tion adopting the accrual basis.
(ii) Use of Estimates
The preparation of financial statement in accordance with the generally
accepted accounting principals requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities as of the date of financial statements and the reported
amount of expenses of the year. Actual results could differ from these
estimates, any revision to such accounting estimates is recognized in
the accounting period in which such revision takes place.
(iii) Fixed Assets & Depreciation
(a) Fixed Assets are stated at their original cost Jess depreciation.
Cost includes inward freight, duties, taxes and expenses incidental to
acquisition and Instal- lation.
(b) Depreciation on Fixed Assets is provided on W.D.V. method at the
rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956.
(c) Depreciation on additions to and disposals of Fixed Assets during
the period has been provided on pro-rata basis according to the period
such asset was used during the year.
(iv) Inventories
Inventories have been valued at lower of cost or market value except
scrap, which is valued at realizable value.
(v) Sales
Sales comprises of sale of Goods and Services, net of trade discount
and returns, if any. Revenue is recognized on dispatch of the product
to the customers. Sales and Job Work receipts/credits are exclusive of
excise duty and Sales Tax.
(vi) Taxation
(a) Provision for Income Tax has been made at the current tax rates
based on as- sessable income or on the basis of Section 115 JB of
Income Tax Act, 1961 (Minimum Alternate Tax) Which ever is higher.
(b) Deferred Tax is recognised, subject to the consideration of
prudence, on tim- ing 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 years.
(vii) Excise Duty
The Company has been acknowledging liabilities for excise duty in
respect of mate- rials lying in factory/bounded premises, as and when
these are cleared/ debonded.
(viii) Retirement Benefits
The company has made no Provision in respect of liabilities towards
leave encashment and Gratuity. It is accounted for as and when paid as
it is not ascertainable for the time being.