Mar 31, 2015
A. Basis of Preparation:-
The financial statement have been prepared under the historical cost
conventional accrual basis of accounting, in conformity with accounting
principles generally accepted in India requires management to make
estimates and assumptions that affect the reported amounts of asset and
liabilities and disclosures relating to contingent liabilities as at
the date of financial statements and reported amounts of revenues and
expenses during the reporting period actual results could differ from
these estimates. Differences between actual result and estimates are
recognized in periods in which the results are known /materialized. Or
comply with the accounting standard referred to in the Companies Act,
2013.
Some of the more important Accounting policies which have been applied
are summarized below:-
1. FIXED ASSETS:-
A. Fixed Assets are stated at cost of acquisition and valued at
Historical cost. Related pre operational expenses form part of the
value of assets capitalized less Depreciation.
B. Directly identified expenses are being capitalized. All other
allocable expenses during the period of construction for the project
are being capitalized proportionately on the basis of the value of
assets on date of production.
2. DEPRECIATION:-
i. Depreciation on depreciable assets has been provided in the books
of accounts, as per the rates prescribed in schedule II of the
companies Act, 2013 as per Straight Line Method.
ii Depreciation on additions to and deductions from fixed assets is
being provided on pro-rata basis from /to the date of
acquisition/disposal.
3. RECOGNITION OF INCOME AND EXPENDITURE:-
i. Mercantile method of accounting is employed. However where the
amount is immaterial / negligible and / or establishment of accrual /
Determination of amount is not possible, no entries are made for the
accruals.
ii. Interest on allotment/call/refund money is accounted for on cash
basis.
4. CONTIGENT LIABILITIES: -
Contingent liability is generally not accounted for in the accounts.
Liabilities in respect of show cause notices received are considered as
contingent liabilities only when they are converted into demand and
contested by the company.
5. INVENTORIES:
Stock of raw material, stores, finished goods, spares are valued at
cost or net realizable value, and whichever is less. Net realizable
value is calculated on the basis of average price of April i.e. to the
year-end. The cost of inventories of Raw Material is computed ton
average cost basis. Finished goods stocks are valued at the cost of raw
material consumed and direct cost related to production excluding
depreciation.
6. RESEARCH AND DEVELOPMENT EXPENDITURE:
Revenue expenditure is charged to the Profit & Loss A/c and capital
expenditure is added to the costs of Fixed Assets in the year in which
it is incurred and depreciation thereon is provided as per the rates
prescribed in Schedule II of the Companies Act, 2013.
7. BORROWING COST:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
8. IMPAIRMENT OF ASSETS:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is normally charged
to Profit & Loss account 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.
9. TAXES ON INCOME: -
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Differed tax is recognized subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and capable of reversal
in one or more subsequent period.
10. INVESTMENT:-
Long term investments are carried out at cost less any other temporary
diminution in value, determined on the specific identification basis.
Current investments are carried at the lower of cost and fair value.
Profit & Loss on sale of investment is determined on specific
identification basis.
11. FOREIGN CURRENCY TRANSACTION:-
Transactions in foreign currency are recorded in Rupees by applying the
exchange rate prevailing on the date of transaction. Transactions
remaining unsettled are translated at the rate of exchange ruling at
the end of the year. Exchange gain or loss arising on settlement,
translation is recognized in the profit & loss a/c.
12. EMPLOYEE BENEFITS:-
a. Provident Fund is a defined contribution scheme and the contribution
is charged to the Profit & Loss A/c of the year when the contributions
to the Government Funds is due.
b. Gratuity Liability is defined benefit obligations and are provided
for on the basis of following formula:- Last drawn Salary * 15/26 * No.
of Completed year of Services
The above calculation is done only for those employees who have
completed continuous five year of services. However, the above
calculation of Gratuity is not as per Actuary Valuation
c. Short Term Compensated absences are provided for based on estimates.
Long Term compensated absences are provided for based on actuarial
valuation.
Actuarial gains / losses are immediate taken to the profit & loss
account and are not deferred.
13. ACCOUNTING FOR TAXES ON INCOME:-
(a) Current tax is determined as the tax payable in respect of taxable
income for the year and is computed in accordance with relevant tax
regulations.
(b) Deferred tax assets and liabilities are recognized for future tax
consequences attributable to the timing differences that result between
taxable profit and the profit as per the financial statement. Deferred
tax assets & liabilities are measured using the tax rates and the tax
laws enacted or substantially enacted as on the Balance Sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty for its realization.
(c) The taxable income of the company being lower than the book profits
under the provision of the income tax act 1961. The company is liable
to pay Minimum Alternate tax (MAT) on its income.
(d) Considering the future profitability & taxable position in the
subsequent years the company has recognized MAT Credit as an asset by
crediting the provision for income tax.
14. CASH FLOW STATEMENT:-
The cash flow statement is prepared as per the Indirect method
prescribed under "Accounting Standard - 3" Cash Flow Statement issued
by the Institute of Chartered Accountants of India.
15. INTANGIBLE ASSETS:-
Cost incurred on intangible assets, resulting in future economic
benefits are capitalized as intangible assets and amortized on equated
basis over the estimated useful life of such assets.
Mar 31, 2014
A. Basis of Preparation :-
The financial statement have bee Prepared under the historical cost
conventional accrual basis of accounting, in conformity with accounting
principles generally accepted m India requires management to make
estimates and assumptions that affect the reported amounts of asset and
liabilities and disclosures relating to contingentliabliities as at the
date of financial statements and reported amounts of revenues and
expenses during the reporting period actual results could differ from
these estimates Differences between actual result and estimates are
recognized in periods in which the with the accounting standard
referred to in sec. 211(3c0 of the companies Act, 1956.
some of the more important accounting policies which have been applied
are summarized below:-
1. FIXED ASSETS:-
A. Fixed Assets are stated at cost of acquisition and valued at
Historical cost Related pre operational expenses form part of the value
of assets capitalized less Depreciation.
B. directly indentified expenses are being capitalized. All other
allocable expenses during the period of construction for the project
are being capitalized proportionately on the basis of the value of
assets on date of production.
2. DEPRECIATION:-
i. Depreciation on depreciable assets has been provided
in the books of accounts, as per the rates prescribed in schedule
XIV of the companies Act,1956 as per straight line Method.
ii Depreciation on additions to and deductions from fixed assets is
being provided on pro-rata basis from /to the date of
acquisition/disposal.
3. RECOGNITION OF INCOME AND EXPENDITURE:-
i. Mercantile method of accounting is employed. However where the
amount is immaterial / negligible and / or establishment of accrual /
Determination of amount is not possible, no entries are made for the
accruals.
ii. Interest on allotment/call/refund money is accounted for on cash
basis
4. CONTIGENT LIABILITIES
Contingent liability is generally not accounted for in the accounts.
Liabilities in respect of show cause notices received are considered as
contingent liabilities only when they are converted into demand and
contested by the company.
5. INVENTORIES:
Stock of raw material, stores, finished goods, spares are valued at
cost or net realizable value, and whichever is less. Net realizable
value is calculated on the basis of average price of April i.e. to the
year-end. The cost of inventories of Raw Material is computed ton
average cost basis. Finished goods stocks are valued at the cost of raw
material consumed and direct cost related to production excluding
depreciation.
6. RESEARCH AND DEVELOPMENT EXPENDITURE:
Revenue expenditure is charged to the Profit & Loss A/c and capital
expenditure is added to the costs of Fixed Assets in the year in which
it is incurred and depreciation thereon is provided as per the rates
prescribed in Schedule XIV of the Companies Act, 1956.
7. BORROWING COST:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
8. IMPAIRMENT OF ASSETS:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is normally charged
to Profit & Loss account 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.
9. TAXES ON INCOME: -
Current Tax is determined as the amount of tax payable in ,respect of
taxable income for the period. Differed tax is recognized subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and capable of reversal
in one or more subsequent period.
10. INVESTMENT:-
Long term investments are carried out at cost less any other temporary
diminution in value, determined on the specific identification basis.
Current investments are carried at the lower of cost and fair value.
Profit & Loss on sale of investment is determined on specific
identification basis.
11. FOREIGN CURRENCY TRANSACTION:-
Transactions in foreign currency are recorded in Rupees by applying the
exchange rate prevailing on the date of transaction. Transactions
remaining unsettled are translated at the rate of exchange ruling at
the end of the year. Exchange gain or loss arising on settlement,
translation is recognized in the profit & loss a/c.
12. EMPLOYEE BENEFITS
a. Provident Fund is a defined contribution scheme and the contribution
is carged to the Profit & Loss A/c of the year when the contributions
to the Government Funds is due.
b.Gratuity Liability is defined benefit obligations and are provided
for on the basis or following formula:-
Last drawn Salary * 15/26 * No. of Completed year of Services
The above calculation is done only for those employees who have
completed continuous five year of services. However, the above
calculation of Gratuity is not as per Actuary Valuation
c. Short Term Compensated absences are provided for based on estimates.
Long lerm compensated absences are provided for based on actuarial
valuation.
a. Actuarial gains / losses are immediate taken to the profit & loss
account and are not deferred.
13. ACCOUNTING FOR TAXES ON INCOME:-
(a) Current tax is determined as the tax payable in respect of taxable
income for the year ana is computed in accordance with relevant tax
regulations.
(b) Deferred tax assets and liabilities are recognized for future tax
consequences attributable to the timing differences that resuit between
taxable profit and the profit as per the financial statement. Deferred
tax assets & liabilities are measured using the tax rates and the tax
laws enacted or substantially enacted as on the Balance Sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty tor its realization.
(c) The taxable income of the company being lower than the book profits
under the provision of the income tax act 1961. The company is liable
to pay Minimum Alternate tax (MAT) on its income.
(d) Considering the future profitability & taxable position in the
subsequent years the company has recognized MAT Credit as an asset by
crediting the provision for income tax.
14. CASH FLOW STATEMENT:-
The cash flow statement is prepared as per the Indirect method
prescribed under Accounting Standard - 3" Cash Flow Statement issued by
the Institute of Chartered Accountants of India.
15. INTANGIBLE ASSETS:-
Cost incurred on intangible assets, resulting in future economic
benefits are capitalized as intangible assets and amortized on equated
basis over the estimated useful life of such assets.
Mar 31, 2013
1. ACCOUNTING CONVENTION
(a) The financial Statement is prepared under the historical cost
convention in accordance with the generally accepted accounting
principles In India.
(b) Accrual method of accounting is followed with regard to income &
expenses
2 RECOGNITION OF INCOME AND EXPENDITURE
Mercantile method of accounting is employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is Immaterial / Negligible and / or establishment of accrual /
determination of amount is not possible no enrrtes arc made for the
accruals.
3. CONTINGENT LIABtUTTFS
Contingent Liabilities are generally not accounted for in the accounts
Liabilities in respect ol show cause nutices received arc cunsldered as
ccntingent liabilities only when they are converted into demand and
contested by the company.
4. EMPLOYEE BENEFIT
a. Provident Fund is a defined contribution scheme and the
contributions are charged to the Profit & Loss A/c of the year when the
contributions to the Government Funds is due.
b. Gratuity Liability and pension liability are defined benefit
obligations and are provided for on the basis of an actuarial valuation
made at the end of each financial year,
c. Short Term Compensated absences are provided for based on
estimates. Long Term compensated absences are provided for based on
actuarial valuation
d. Actuarial gains/losses art immediate taken to the profit & loss
account and are not deferred.
e. Payments made under the Voluntary Retirement Scheme are charged to
the profit & loss account over a five year period.
5. INVESTMENTS:-
Loog term investments are carried al cusL less provision, if any tor
permanent diminution in valu of such investments. Current investments
are carried at lower of cost and fair value.
6. RESEARCH AND DEVELOPMENT EXPENDITURE
Revenue expenditure is charged to the Profit and Loss AC and capital
expenditure is added to the cost of Fixed Assets in the year in which
it is incurred and depreciation thereon is provided as per the rates
prescribed in Schedule XIV of the Companies Act, 1956.
7. BORROWING COST
Borrowing costs that are attributable to the acquisition or instruction
of qualifying or coition of qualifying asset, are capitalized as part
of the cost of such assets. A Qualifying asset is one that necessarily
takes a substantial period of time to get ready for its intended use or
sale. All other borrowings costs are charged to revenue,
8. GOVERNMENT GRANTS
The grants are treated as Capital Reserve (and treated as a part of
Shareholders funds), which can be neither distributed as dividend nor
as deferred income.
9. USE OF ESTIMATES
The presentation of financial statement requires estimated and
assumption to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimate are recognized in the period in
the period in which the results are known/materialized.
10 SEGMENT REPORTING
a) Business Segment: - The Company has considered Business Segment as
the primary segment to disclose. However during the Year, Company has
no specific Business Activities, hence no Segment is reported.
b) Geographical Segment: - The Company sells its products wiUun India.
The condition prevailing in India being uniform No. separate
geographical segment disclosure is considered necessary.
11. IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is normally charged
to Profit & Loss account in the vear 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.
12 ACCOUNTING FOR TAXES ON INCOME
a Current tax is determined as the tax payable in respect of taxable
income for the year and is computed in accordance with relevant tax
regulations.
b. Deferred tax assets and liabilities are recognized for future tax
consequence attributable to the timing differences That result between
taxable profit and die profit as per the financial statement. Deferred
tax assets & liabilities are measured using the tax rates and the tax
laws enacted or substantial enacted as on the Balance Sheet date.
Deterred tax assets are recognized only to the extent there is
reasonable certainty for its realization.
c. Considering the future profitability & taxable position in the
subsequent years the comply has recognized MAT Credit as an assets by
crediting the provision for income tax & including the same under Loans
& advances in accordance with the Guidance note on "Accounting for
Credit available in respect of MAT under Income Tax Att 1961" issued by
the institute of Chartered Accountant of India.
13 CASH FLOW STATEMENT
The cash Sow statement is prepared as per the Indirect method
prescribed under "Accounting Standard - 3" Cash Flow Statement issued
by the Institute of Chartered Accounts of India.
14 FOREIGN CURRENCY TRANSCACTION
Transactions in foreign currency are recorded in Rupees by applying the
exchange rate prevailing on the date of transaction. Transactions
remaining fettled are translated at the rate of exchange ruling at the
end of the year. Exchange gain or Joss arising on settlement,
transcation is recognized in the profit & loss a/c.
Mar 31, 2012
1. ACCOUNTING CONVENTION
(a) The Financial Statement is prepared under the historical cost
convention in accordance with the generally accepted accounting
principles In India.
(b) Accrual method of accounting is followed with regard to income &
expenses.
2. RECOGNITION OF INCOME AND EXPENDITURE
Mercantile method of accounting is employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is Immaterial/Negligible and/or establishment of
accrual/determination of amount is not possible, no entries are made
for the accruals.
3. CONTINGENT LIABILITIES
Contingent Liabilities are generally not accounted for in the accounts.
Liabilities in respect of show cause notices received are considered as
contingent liabilities only when they are converted into demand and
contested by the company.
4. EMPLOYEE BENEFITS:
a. Provident Fund is a defined contribution scheme and the
contributions are charged to the Profit & Loss A/c of the year when the
contributions to the Government Funds is due.
b. Gratuity Liability and pension liability are defined benefit
obligations and are provided for on the basis of an actuarial valuation
made at the end of each financial year.
c. Short Term Compensated absences are provided for based on
estimates. Long Term compensated absences are provided for based on
actuarial valuation.
d. Actuarial gains/losses are immediate taken to the profit & loss
account and are not deferred.
e. Payments made under the Voluntary Retirement Scheme are charged to
the profit & loss account over a five year period.
5. INVESTMENTS:-
Long term investments are carried at cost less provision, if any for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and fair value.
6. RESEARCH AND DEVELOPMENT EXPENDITURE
Revenue expenditure is charged to the Profit and Loss A/C and capital
expenditure is added to the cost of Fixed Assets in the year in which
it is incurred and depreciation thereon is provided as per the rates
prescribed in Schedule XIV of the Companies Act, 1956.
7. BORROWING COST
Borrowing costs that are attributable to the acquisition or
construction of qualifying or construction of qualifying assets are
capitalized as part of the cost of such assets. A qualifying asset is
one that necessarily takes a substantial period of time to get ready
for its intended use or sale. All other borrowings costs are charged to
revenue.
8. GOVERNMENT GRANTS
The grants are treated as Capital Reserve (and treated as a part of
Shareholders funds), which can be neither distributed as dividend nor
as deferred income.
9. USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumption to be made that affect the reported amount of assets and
liabilities on the date of the financial statement 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.
10. SEGMENT REPORTING
a) Business Segment:- The company has considered business segment as
the primary segment to disclose. The company is engaged in the
manufacture of Cargo Handling Activity, which is the context of AS-17
issued by the Institute of Chartered Accountants of India is considered
the only business segment.
b) Geographical Segment: - The Company sells its products within India.
The condition prevailing in India being uniform No. separate
geographical segment disclosure is considered necessary.
11. IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is normally charged
to Profit & Loss account 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
12. ACCOUNTING FOR TAXES ON INCOME
a Current tax is determined as the tax payable in respect of taxable
income for the year and is computed in accordance with relevant tax
regulations.
b. Deferred tax assets and liabilities are recognized for future tax
consequences attributable to the timing differences that result between
taxable profit and the profit as per the financial statement. Deferred
tax assets & liabilities are measured using the tax rates and the tax
laws enacted or substantially enacted as on the Balance Sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty for its realization.
c. Considering the future profitability & taxable position in the
subsequent years the company has recognized MAT Credit as an assets by
crediting the provision for income tax & including the same under Loans
& advances in accordance with the Guidance note on "Accounting for
Credit available in respect of MAT under Income Tax Act 1961" issued by
the Institute of Chartered Accountant of India.
13. CASH FLOW STATEMENT
The cash flow statement is prepared as per the Indirect method
prescribed under "Accounting Standard - 3" Cash Flow Statement issued
by the Institute of Chartered Accounts of India.
14. FOREIGN CURRENCY TRANSACTION
Transactions in foreign currency are recorded in Rupees by applying the
exchange rate prevailing on the date of transaction. Transactions
remaining unsettled are translated at the rate of exchange ruling at
the end of the year. Exchange gain or loss arising on settlement,
translation is recognized in the profit & loss a/c.
Mar 31, 2011
1. ACCOUNTING CONVENTION
(a) The Financial Statement is prepared under the historical cost
convention in accordance with the generally accepted accounting
principles In India.
(b) Accrual method of accounting is followed with regard to income &
expenses
2. RECOGNITION OF INCOME AND EXPENDITURE
Mercantile method of accounting is employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is Immaterial / Negligible and / or establishment of accrual /
determination of amount is not possible, no entries are made for the
accruals.
3. CONTINGENT LIABILITIES
Contingent Liabilities are generally not accounted for in the accounts.
Liabilities in respect of show cause notices received are considered as
contingent liabilities only when they are converted into demand and
contested by the company.
4 EMPLOYEE BENEFITS:
a. Provident Fund is a defined contribution scheme and the
contributions are charged to the Profit & Loss A/c of the year when the
contributions to the Government Funds is due.
b. Gratuity Liability and pension liability are defined benefit
obligations and are provided for on the basis of an actuarial valuation
made at the end of each financial year.
c. Short Term Compensated absences are provided for based on
estimates. Long Term compensated absences are provided for based on
actuarial valuation.
d. Actuarial gains / losses are immediate taken to the profit & loss
account and are not deferred.
e. Payments made under the Voluntary Retirement Scheme are charged to
the profit & loss account over a five year period,
5. INVESTMENTS:-
Long term investments are carried at cost less provision, if any for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and fair value.
6. RESEARCH AND DEVELOPMENT EXPENDITURE
Revenue expenditure is charged to the Profit and Loss A/C and capital
expenditure is added to the cost of Fixed Assets in the year in which
it is incurred and depreciation thereon is provided as per the rates
prescribed in Schedule XIV of the Companies Act, 1956.
7. BORROWING COST
Borrowing costs that are attributable to the acquisition or
construction of qualifying or construction of qualifying assets are
capitalized as part of the cost of such assets. A qualifying asset is
one that necessarily takes a substantial period of time to get ready
for its intended use or sale. All other borrowings costs are charged to
revenue.
8. GOVERNMENT GRANTS
The grants are treated as Capital Reserve (and treated as a part of
Shareholders funds), which can be neither distributed as dividend nor
as deferred income.
9. USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumption to be made that affect the reported amount of assets and
liabilities on the date of the financial statement 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.
10 SEGMENT REPORTING
a Business Segment:- The company has considered business segment as the
primary segment to disclose. The company is engaged in the manufacture
of Cargo Handling Activity, which is the context of AS-17 issued by the
Institute of Chartered Accountants of India is considered the only
business segment.
b) Geographical Segment: - The Company sells its products within India.
The condition prevailing in India being uniform No. separate
geographical segment disclosure is considered necessary.
11. IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is normally charged
to Profit & Loss account 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
12 ACCOUNTING FOR TAXES ON INCOME
a Current tax is determined as the tax payable in respect of taxable
income for the year and is computed in accordance with relevant tax
regulations.
b. Deferred tax assets and liabilities are recognized for future tax
consequences attributable to the timing differences that result between
taxable profit and the profit as per the financial statement. Deferred
tax assets & liabilities are measured using the tax rates and the tax
laws enacted or substantially enacted as on the Balance Sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty for its realization.
c. Considering the future profitability & taxable position in the
subsequent years the company has recognized MAT Credit as an assets by
crediting the provision for income tax & including the same under Loans
& advances in accordance with the Guidance note on "Accounting for
Credit available in respect of MAT under Income Tax Act 1961" issued by
the Institute of Chartered Accountant of India.
13 CASH FLOW STATEMENT
The cash flow statement is prepared as per the Indirect method
prescribed under "Accounting Standard - 3" Cash Flow Statement issued
by the Institute of Chartered Accounts of India.
14 FOREIGN CURRENCY TRANSACTION
Transactions in foreign currency are recorded in Rupees by applying the
exchange rate prevailing on the date of transaction. Transactions
remaining unsettled are translated at the rate of exchange ruling at
the end of the year. Exchange gain or loss arising on settlement,
translation is recognized in the profit & loss a/c.
Mar 31, 2010
1. ACCOUNTING CONVENTION
(a) The Financial Statement is prepared under the historical cost
convention in accordance with the generally accepted accounting
principles In India.
(b) Accrual method of accounting is followed with regard to income &
expenses
2. RECOGNITION OF INCOME AND EXPENDITURE
Mercantile method of accounting is employed unless otherwise
specifically stated I elsewhere in this schedule. However where the
amount is Immaterial / Negligible 1 and / or establishment of accrual /
determination of amount is not possible, no entries are made for the
accruals.
3. CONTINGENT LIABILITIES
Contingent Liabilities are generally not accounted for in the accounts.
Liabilities in respect of show cause notices received are considered as
contingent liabilities only when they are converted into demand and
contested by the company.
4 EMPLOYEE BENEFITS:
a. Provident Fund is a defined contribution scheme and the
contributions are charged to the Profit & Loss A/c of the year when the
contributions to the Government Funds is due.
b. Gratuity Liability and pension liability are defined benefit
obligations and are provided for on the basis of an actuarial valuation
made at the end of each financial year.
c. Short Term Compensated absences are provided for based on
estimates. Long Term compensated absences are provided for based on
actuarial valuation.
d. Acturial gains / losses are immediate taken to the profit & loss
account and are not deferred.
e. Payments made under the Voluntary Retirement Scheme are charged to
the profit & loss account over a five year period.
5. INVESTMENTS:-
Long term investments are carried at cost less provision, if any for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and fair value.
6. RESEARCH AND DEVELOPMENT EXPENDITURE
Revenue expenditure is charged to the Profit and Loss A/C and capital
expenditure is added to the cost of Fixed Assets in the year in which
it is incurred and depreciation thereon is provided as per the rates
prescribed in Schedule XIV of the Companies Act, 1956.
7. BORROWING COST
Borrowing costs that are attributable to the acquisition or
construction of qualifying or construction of qualifying assets are
capitalized as part of the cost of such assets. A qualifying asset is
one that necessarily takes a substantial period of time to get ready
for its intended use or sale. All other borrowings costs are charged to
revenue.
8. GOVERNMENT GRANTS
The grants are treated as Capital Reserve (and treated as a part of
Shareholders funds), which can be neither distributed as dividend nor
as deferred income.
9. USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumption to be made that affect the reported amount of assets and
liabilities on the date of the financial statement 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.
10 SEGMENT REPORTING
a Business Segment:- The company has considered business segment as the
primary segment to disclose. The company is engaged in the manufacture
of Cargo Handling Activity, which is the context of AS-17 issued by the
Institute of Chartered Accountants of India is considered the only
business segment.
b) Geographical Segment :- The company sell its products within India.
The condition prevailing in India being uniform No. separate
geographical segment disclosure is considered necessary.
11. IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is normally charged
to Profit & Loss account 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
b. Deferred tax assets and liabilities are recognized for future tax
consequences attributable to the timing differences that result between
taxable profit and the profit as per the financial statement. Deferred
tax assets & liabilities are measured using the tax rates and the tax
laws enacted or substantially enacted as on the Balance Sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty for its realization.
c. Considering the future profitability & taxable position in the
subsequent years the company has recognized MAT Credit as an assets by
crediting the provision for income tax & including the same under Loans
& advances in accordance with the Guidences note on " Accounting for
Credit available in respect of MAT under Income Tax Act 1961" issued by
the Institute of Chartered Accountant of India.
13 CASH FLOW STATEMENT
The cash flow statement is prepared as per the Indirect method
prescribed under II "Accounting Standard - 3" Cash Flow Statement
issued by the Institute of Chartered Accounts of India.
14. FOREIGN CURRENCY TRANSACTION
Transactions in foreign currency are recorded in Rupees by applying the
exchange rate prevailing on the date of transaction. Transactions
remaining unsettled are translated at the rate of exchange ruling at
the end of the year. Exchange gain or loss arising on settlement,
translation is recognized in the profit & loss a/c.
Mar 31, 2009
1. ACCOUNTING CONVENTION
The Financial Statement are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles with the mandatory accounting standards issued by The
Institute of Chartered Accountants of India and the relevant
presentation requirement of the Companies Act, 1956.
2. RECOGNITION OF INCOME AND EXPENDITURE
Mercantile method of accounting is employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is Immaterial / Negligible and / or establishment of accrual /
determination of amount is not possible, no entries are made for the
accruals.
3. CONTINGENT LIABILITIES
Contingent Liabilities are generally not accounted for in the accounts.
Liabilities in respect of show cause notices received are considered as
contingent liabilities only when they are converted into demand and
contested by the company.
4 EMPLOYEE BENEFITS:
a. Provident Fund is a defined contribution scheme and the
contribution are charged to the Profit & Loss A/c of the year when the
contributions to the Government Funds is due.
b. Gratuity Liability and pension liability are defined benefit
obligations and are provided for on the basis of an actuarial valuation
made at the end of each financial year.
c. Short Term Compensated absences are provided for based on
estimates. Long Term compensated absences are provided for based on
actuarial valuation.
d. Acturial gains / losses are immediate taken to the profit & loss
account and are not deferred.
e. Payments made under the Voluntary Retirement Scheme are charged to
the profit & loss account over a five year period.
5. INVESTMENTS -
Long term investments are carried at cost less provision, if any for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and fair value.
6. TAXES ON INCOME :-
Current tax is determined as the amount of tax payable in respect of
taxable income for the years. Deferred tax is recognised, 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. Where there is unabsorbed depreciation or
carry forward losses, deferred tax assets are recognised only if there
is virtual certainly of realisation of such assets, other deferred tax
assets are recognised only to the extent there is reasonable certainty
of realisation in future.
7 RESEARCH AND DEVELOPMENT EXPENDITURE
Revenue expenditure is charged to the Profit and Loss A/C and capital
expenditure is added to the cost of Fixed Assets in the year in which
it is incurred and depreciation thereon is provided as per the rates
prescribed in Schedule XIV of the Companies Act, 1956.
8. BORROWING COST
Borrowing costs that are attributable to the acquisition or
construction of qualifying or construction of qualifying assets are
capitalized as part of the cost of such assets. A qualifying asset is
one that necessarily takes a substantial period of time to get ready
for its intended use or sale. All other borrowings costs are charged to
revenue.
9. GOVERNMENT GRANTS
The grants are treated as Capital Reserve (and treated as a part of
Shareholders funds), which can be neither distributed as dividend nor
as deferred income.
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