Mar 31, 2015
1. Accounting Conventions
The Company follows the Mercantile system of accounting and recognizes
Income and Expenditure on accrual basis. The accounts are prepared on
historical cost basis, as a going concern and are consistent with
generally accepted accounting principles.
2. Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect reportable amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the year in
which the results are known / materialized.
3. Revenue Recognition
a) Income and expenditure are accounted for on accrual basis except:
* Interest charged in the invoices, which is accounted for at the time
of raising of invoices.
* Overdue interest on late payment, which is accounted for on cash
basis.
* Medical reimbursement to employees, which are accounted for on cash
basis.
b) Sales are inclusive of excise duty but exclude sales/vat tax.
4. Fixed Assets
a) Fixed assets are stated at their original cost of acquisition
including freight , incidental expenses and other non refundable taxes
or levies related to acquisition and installation of the concerned
assets. Interest on borrowed funds attributable to
acquisition/construction of fixed assets and related pre-operative
expenses upto the date of commencement of commercial production, net of
sales of trial production, are also capitalised where appropriate.
CENVAT availed has been deducted from the cost of respective assets.
b) Project under Commissioning and other Capital Works-in-Progress are
carried at cost, comprising direct cost, related incidental expenses
and interest on borrowings there against.
c) (i)The carrying amounts of fixed assets are reviewed at each balance
sheet date, if there is any indication of impairment based on
internal /external factors.
(ii) An impairment loss is recognized wherever the carrying amount of
an asset exceeds its recoverable amount and the same is recognized as
an expense in the statement of Profit & Loss and Carrying amount of the
asset is reduced to recoverable amount.
(iii) Reversal of impairment losses recognized in prior years is
recorded when there is an indication that the impairment losses
recognized for the assets no longer exists or have decreased.
5. Inventories
a) Trading Goods are valued at cost or net realisable value whichever
is less
6. Depreciation
On Straight line method at the rates and in the manner prescribed under
Part -C of Schedule II of the Companies Act, 2013 Depreciation on
assets costing upto Rs.5000/- is provided in full in the year of
acquisition.
7. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of 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. Foreign Exchange Transaction /Translation
(a) There is no foreign currency transactions arising during the year.
9. Provisions, Contingent Liability & Contingent Assets
(a) Provisions involving substantial degree of estimation in
measurement, are recognized when the present obligation resulting from
past events given rise to probability of outflow of resources embodying
economic benefits on settlement.
(b) Contingent liabilities are not recognized and are disclosed in
notes.
(c) Contingent assets are neither recognized nor disclosed in financial
statements.
(d) Provisions are reviewed at each Balance sheet date and adjusted to
reflect the current best estimates.
10. Employees Benefits
(a) Retirement benefits in the form of Provident fund, Pension Schemes
and Superannuation are defined contribution schemes and the
contributions are charged to the Profit & Loss Account of the year when
the contributions to the respective funds are due.
(b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation made at the end of each
financial year. However, the company is contributing to the company's
Gratuity Trust covering the gratuity liability of the employees. The
difference between the acturial valuation of the gratuity of employees
at the year-end and the balance of funds with Gratuity Trust is
provided for as liability in the books.
(c) Provision for Leave encashment is accrued and provided for on the
basis of an actual valuation made at the end of each financial year.
(d) Actuarial gains / losses are immediately taken to Profit & Loss
Account and are not deferred.
(e) Expenses incurred on voluntary retirement of employees are charged
off to the Profit & Loss Account in the year of incurrence.
(f) Liability on account of shortterm employee benefits, comprising
largely of performance incentives is recognized on an undiscounted,
accrual basis during the period on the vesting period of benefit.
11. Tax Expenses
a) Current year charge
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of Income Tax Act,
1961.However, where the tax is computed in accordance with the
provision of Section 115JB of the Income Tax Act,1961, as
Minimum Alternate Tax (MAT), it is charged.
b) Deferred Tax
i) Deferred tax is recognized, subject to the consideration of
prudence, as the tax effect of timing difference between the taxable
income and accounting income computed for the current accounting year
and reversal of earlier years' timing differences.
ii) Deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty, except arising from
unabsorbed depreciation and carry forward losses which are recognized
to the extent that there is deferred tax liabilities or there is
virtual certainty, that sufficient future taxable income.
Mar 31, 2013
1. Accounting Conventions
The Company follows the Mercantile system of accounting and recognizes
Income and Expenditure on accrual basis. The accounts are prepared on
historical cost basis, as a going concern and are consistent with
generally accepted accounting principles.
2. Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect reportable amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the year in
which the results are known / materialized.
3. Revenue Recognition
a) Income and expenditure are accounted for on accrual basis except:
- Interest charged in the invoices, which is accounted for at the time
of raising of invoices.
- Overdue interest on late payment, which is accounted for on cash
basis.
- Medical reimbursement to employees, which are accounted for on cash
basis.
b) Sales are inclusive of excise duty but exclude sales/vat tax.
4. Fixed Assets
a) Fixed assets are stated at their original cost of acquisition
including freight , incidental expenses and other non refundable taxes
or levies related to acquisition and installation of the concerned
assets. Interest on borrowed funds attributable to
acquisition/construction of fixed assets and related pre-operative
expenses upto the date of commencement of commercial production, net of
sales of trial production, are also capitalised where appropriate.
CENVAT availed has been deducted from the cost of respective assets.
b) Project under Commissioning and other Capital Works-in-Progress are
carried at cost, comprising direct cost, related incidental expenses
and interest on borrowings there against.
c) (i)The carrying amounts of fixed assets are reviewed at each balance
sheet date, if there is any indication of impairment based on internal
/external factors.
(ii) An impairment loss is recognized wherever the carrying amount of
an asset exceeds its recoverable amount and the same is recognized as
an expense in the statement of Profit & Loss and Carrying amount of the
asset is reduced to recoverable amount.
(iii)Reversal of impairment losses recognized in prior years is
recorded when there is an indication that the impairment losses
recognized for the assets no longer exists or have decreased.
5. Depreciation
On Straight line method at the rates and in the manner prescribed under
Schedule XIV of the Companies Act, 1956. Depreciation on assets costing
upto Rs.5000/- is provided in full in the year of acquisition.
6. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of 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.
7. Foreign Exchange Transaction/Translation
(a) There is no foreign currency transactions arising during the year.
8. Provisions, Contingent Liability & Contingent Assets
(a) Provisions involving substantial degree of estimation in
measurement, are recognized when the present obligation resulting from
past events given rise to probability of outflow of resources embodying
economic benefits on settlement.
(b) Contingent liabilities are not recognized and are disclosed in
notes.
(c) Contingent assets are neither recognized nor disclosed in financial
statements.
(d) Provisions are reviewed at each Balance sheet date and adjusted to
reflect the current best estimates.
9. Employees Benefits
(a) Retirement benefits in the form of Provident fund, Pension Schemes
and Superannuation are defined contribution schemes and the
contributions are charged to the Profit & Loss Account of the year when
the contributions to the respective funds are due.
(b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation made at the end of each
financial year. However, the company is contributing to the company''s
Gratuity Trust covering the gratuity liability of the employees. The
difference between the acturial valuation of the gratuity of employees
at the year-end and the balance of funds with Gratuity Trust is
provided for as liability in the books.
(c) Provision for Leave encashment is accrued and provided for on the
basis of an actual valuation made at the end of each financial year.
(d) Actuarial gains / losses are immediately taken to Profit & Loss
Account and are not deferred.
(e) Expenses incurred on voluntary retirement of employees are charged
off to the Profit & Loss Account in the year of incurrence.
(f) Liability on account of shortterm employee benefits, comprising
largely of performance incentives is recognized on an undiscounted,
accrual basis during the period on the vesting period of benefit.
10. Tax Expenses
a) Current year charge
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of Income Tax Act,
1961.However, where the tax is computed in accordance with the
provision of Section 115JB of the Income Tax Act,1961, as Minimum
Alternate Tax (MAT), it is charged.
b) Deferred Tax
i) Deferred tax is recognized, subject to the consideration of
prudence, as the tax effect of timing difference between the taxable
income and accounting income computed for the current accounting year
and reversal of earlier years'' timing differences.
ii) Deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty, except arising from
unabsorbed depreciation and carry forward losses which are recognized
to the extent that there is deferred tax liabilities or there is
virtual certainty, that sufficient future taxable income.
Mar 31, 2011
1. Accounting Conventions
The Company follows the Mercantile system of accounting and recognizes
Income and Expenditure on accrual basis. The accounts are prepared on
historical cost basis, as a going concern and are consistent with
generally accepted accounting principles.
2. Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect reportable amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the year in
which the results are known / materialized,
3. Revenue Recognition
a) Income and expenditure are accounted for on accrual basis except ;
- Interest charged in the invoices, which is accounted for at the time
of raising of invoices.
- Overdue interest on late payment, which is accounted for on cash
basis.
- Medical reimbursement to employees, which are accounted for on cash
basis.
b) Sales are inclusive of excise duty but exclude sales/vat tax.
c) Insurance claims are accounted for in the year of lodgment to the
extent they are measurable and any shortfall/excess is adjusted on
receipt of the final claim.
4. Fixed Assets
a) Fixed assets are stated at their original cost of acquisition
including freight , incidental expenses and other non refundable taxes
or levies related to acquisition and installation of the concerned
assets Interest on borrowed funds attributable to
acquisition/construction of fixed assets and related pre-operative
expenses upto the date of commencement of commercial production, net of
sales of trial production, are also capitalised where appropriate.
CENVAT availed has been deducted from the cost of respective assets.
b) Project under Commissioning and other Capital Works-in-Progress are
carried at cost, comprising direct cost, related incidental expenses
and interest on borrowings there against.
c) (i)The carrying amounts of fixed assets are reviewed at each balance
sheet date, if there is any indication of impairment based on internal
/external factors.
(ii) An Impairment lots is recognized wherever the carrying amount of
an asset exceeds its recoverable amount and the same Is recognized at
an expense in the statement of Profit & Loss and Carrying amount of the
asset Is reduced to recoverable amount.
(iii)Reversal of Impairment losses recognized in prior years is
recorded when there Is an Indication that the Impairment losses
recognized for the assets no longer exists or have decreased,
5. Depreciation
On Straight line method at the rates and In the manner prescribed under
Schedule XIV of the Companies Act, 1956. Depreciation on assets costing
upto Rs. 5000/- is provided in full in the year of acquisition.
6. Borrowing Costs Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as
part of the cost of 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.
7. Foreign Exchange Transaction/Translation
(a) Foreign currency transactions arising during the year are recorded
at the exchange rates prevailing on the dates of the transactions
(b) In accordance with the Revised Accounting Standard 11 for the
"Effects of the Changes in Foreign Exchange Rates", Foreign Currency
Assets and Liabilities are converted into Rupee equivalent at the
exchange rate prevailing at the date of Balance Sheet.
(c) Where the Company has entered Into forward exchange contract, which
is not intended for trading and speculation, Premium/ Discount i.e. the
difference between the contract rate and the rate at the date of
transaction, Is recognized over the period of contract.
(d) Gain or Loss on the restatement of foreign currency transactions or
on maturity or cancellation of forward exchange contact, if any, is
reflected in the Profit & Loss account.
8. Provisions, Contingent Liability & Contingent Assets
(a) Provisions involving substantial degree of estimation in
measurement, are recognized when the present obligation resulting from
past events given rise to probability of outflow of resources embodying
economic benefits on settlement.
(b) Contingent liabilities are not recognized and are disclosed in
notes.
(c) Contingent assets are neither recognized nor disclosed in financial
statements.
(d) Provisions are reviewed at each Balance sheet date and adjusted to
reflect the current best estimates.
9. Employees Benefits
(a) Retirement benefits in the form of Provident fund, Pension Schemes
and Superannuation are defined contribution schemes and the
contributions are charged to the Profit & Loss Account of the year when
the contributions to the respective funds/ Trust are due.
(b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation made at the end of each
financial year. However, the company is contributing to the company's
Gratuity Trust covering the gratuity liability of the employees. The
difference between the actuarial valuation of the gratuity of employees
at the year-end and the balance of funds with Gratuity Trust is
provided for as liability in the books.
(c) Provision for Leave encashment is accrued and provided for on the
basis of an actuarial valuation made at the end of each financial year.
(d) Actuarial gains / losses are immediately taken to Profit & Loss
Account and are not deferred.
(e) Expenses incurred on voluntary retirement of employees are charged
off to the Profit & Loss Account in the year of incurrence.
(f) Liability on account of short term employee benefits, comprising
largely of performance incentives is recognized on an undiscounted,
accrual basis during the period on the vesting period of benefit.
10. Tax Expenses
a) Current year charge
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of Income Tax Act,
1961. However, where the tax is computed in accordance with the
provision of Section 115JB of the Income Tax Act,1961, as Minimum
Alternate Tax (MAT), it is charged off to the Profit & Loss Account of
the relevant year.
b) Deferred Tax
i) Deferred tax is recognized, subject to the consideration of
prudence, as the tax effect of timing difference between the taxable
income and accounting income computed for the current accounting year
and reversal of earlier years' timing differences.
ii) Deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty, except arising from
unabsorbed depreciation and carry forward losses which are recognized
to the extent that there is deferred tax liabilities or there is
virtual certainty, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Mar 31, 2010
1. Accounting Conventions
The Company follows the Mercantile system of accounting and recognizes
Income and Expenditure on accrual basis. The accounts are prepared on
historical cost basis, as a going concern and are consistent with
generally accepted accounting principles.
2. Use of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect reportable amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the year in
which the results are known/ materialized.
3. Revenue Recognition
a) Income and expenditure are accounted for on accrual basis except:
-Interest charged in the invoices, which is accounted for at the
time of raising of invoices.
- Overdue interest on late payment, which is accounted for on
cash basis.
-Medical reimbursement to employees, which are accounted for on cash
basis.
b) Sales are inclusive of excise duty but exclude sales/vat tax.
4. Inventory Valuation.
Basis of valuation
Finished goods At lower of cost and net realizable value
Stock in process At lower of cost and net realizable value
Waste At estimated realizable value
Raw Materials At lower of cost and net realizable value.
Cost is arrived at by using "First In
First Out" method.
Stores & spares At cost or below. Cost is arrived at by using "weighted
average" method.
5. Investments
Long Term investments are stated at cost. In case of diminution in the
value other than temporary, the Carrying amount is reduced to recognize
the decline.
6. Fixed Assets
a) Fixed assets are stated at their original cost of acquisition
including freight, incidental expenses and other non refundable taxes
or levies related to acquisition and installation of the concerned
assets. Interest on borrowed funds attributable to
acquisition/construction of fixed assets and related pre-operative
expenses upto the date of commencement of commercial production, net of
sales of trial production, are also capitalised where appropriate.
CENVAT availed has been deducted from the cost of respective assets.
b) Project under Commissioning and other Capital Works-in-Progress are
carried at cost, comprising direct cost, related incidental expenses
and interest on borrowings there against.
c) (i) The carrying amounts of fixed assets are reviewed at each
balance sheet date, if there is any
indication of impairment based on internal /external factors.
(ii) An impairment loss is recognized wherever the carrying amount of
an asset exceeds its recoverable amount and the same is recognized as
an expense in the statement of Profit & Loss and Carrying amount of the
asset is reduced to recoverable amount."
(iii) Reversal of impairment losses recognized in prior years is
recorded when there is an indication that the impairment losses
recognized for the assets no longer exists or have decreased.
7. Depreciation
On Straight line method at the rates and in the manner prescribed under
Schedule XIV of the Companies Act, 1956. Depreciation on assets costing
upto Rs.5000/- is provided in full in the year of acquisition.
8. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of 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.
9. Foreign Exchange Transaction /Translation
(a) Foreign currency transactions arising during the year are recorded
at the exchange rates prevailing on the dates of the transactions.
(b) In accordance with the Revised Accounting Standard 11 for the
"Effects of the Changes in Foreign Exchange Rates", Foreign Currency
Assets and Liabilities are converted into Rupee equivalent at the
exchange rate prevailing at the date of Balance Sheet.
(c) Where the Company has entered into forward exchange contract, which
is not intended for trading and speculation, Premium/ Discount i.e. the
difference between the contract rate and the rate at the date of
transaction, is recognized over the period of contract.
(d) Gain or Loss on the restatement of foreign currency transactions or
on maturity or cancellation of forward exchange contact, if any, is
reflected in the Profit & Loss account except gain or loss on
transactions relating to acquisition of fixed assets, which is adjusted
to the carrying amount of fixed assets.
10. Provisions, Contingent Liability & Contingent Assets
(a) Provisions involving substantial degree of estimation in
measurement, are recognized when the present obligation resulting from
past events given rise to probability of outflow of resources embodying
economic benefits on settlement.
(b) Contingent liabilities are not recognized and are disclosed in
notes.
(c) Contingent assets are neither recognized nor disclosed in financial
statements.
(d) Provisions are reviewed at each Balance sheet date and adjusted to
reflect the current best estimates.
11. Employees Benefits
(a) Retirement benefits in the form of Provident fund, Pension Schemes
and Superannuation are defined contribution schemes and the
contributions are charged to the Profit & Loss Account of the year when
the contributions to the respective funds/ Trust are due.
(b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation made at the end of each
financial year. However, the company is contributing to the companys
Gratuity Trust covering the gratuity liability of the employees. The
difference between the actuarial valuation of the gratuity of employees
at the year-end and the balance of funds with Gratuity Trust is
provided for as liability in the books.
(c) Provision for Leave encashment is accrued and provided for on the
basis of an actuarial valuation made at the end of each financial year.
(d) Actuarial gains / losses are immediately taken to Profit & Loss
Account and are not deferred.
(e) Expenses incurred on voluntary retirement of employees are charged
off to the Profit & Loss Account in the year of incurrence.
(f) Liability on account of short term employee benefits, comprising
largely of performance incentives is recognized on an undiscounted,
accrual basis during the period on the vesting period of benefit.
12. Tax Expense
a) Current year charge
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of Income Tax Act,
1961.However, where the tax is computed in accordance with the
provision of Section 115JB of the Income Tax Act,1961, as Minimum
Alternate Tax (MAT), it is charged off to the Profit & Loss Account of
the relevant year.
b) Deferred Tax
i) Deferred tax is recognized, subject to the consideration of
prudence, as the tax effect of timing difference between the taxable
income and accounting income computed for the current accounting year
and reversal of earlier years timing differences."
ii) Deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty, except arising from
unabsorbed depreciation and carry forward losses which are recognized
to the extent that there is deferred tax liabilities or there is
virtual certainty, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
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