Mar 31, 2016
Corporate Information
Bloom Dekor Limited, having CIN: L20210GJ1992PLC017341 is a public company domiciled in India and incorporated under the provision of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The Company is engaged in manufacturing and selling of laminated sheets and Doors. The company caters to both domestic and international markets.
Note - 1: SIGNIFICANT ACCOUNTING POLICIES:
a) Basis of Accounting :
The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention and on the basis of a going concern, on accrual basis and those with significant uncertainty unless otherwise stated. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Account) Rules 2014 and the relevant provisions of Company Act, 2013. These accounting policies have been consistently applied.
b) Use of Estimates :
The preparation of financial statements in conformity with India GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.
c) Revenue Recognition :
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
i) Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Accordingly, domestic sales are accounted on dispatch of products to customers and Export sales are accounted on the receipt of bill of lading and on the basis of custom rate or on negotiation of document with the bankers as per the foreign exchange rates prevailing on the date of negotiation. Sales are disclosed net of the value added tax, discounts on sales and sales returns, as applicable.
ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding, the rate of interest as applicable and on the basis of debit notes issued by the company for delayed payments by customers.
iii) The company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax in the year of admission of such claims by the concerned authorities. Benefits in respect of Export Licenses are recognized on application. Export benefits are accounted for as other operating income in the year of export based eligibility and when there is no uncertainty on receiving the same.
d) Expenditures :
i) Purchases:
Purchase of Raw Materials and Stores are accounted net of receivable Cenvat and VAT.
ii) Expenses:
Expenses are accounted on accrual basis and net of Service tax paid on various expenses.
e) Tangible Assets :
i) Tangible Fixed Assets acquired by the Company are reported at acquisition value, net of accumulated impairment losses, if any (excluding freehold land). The cost of purchase price and borrowing costs if capitalization criteria are met, the cost of replacing part of the fixed assets and directly attributable cost of bringing the assets to its working condition for the intended use.
ii) Cost of Assets not ready for intended use, as on the balance sheet date, is shown as capital work in progress. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are disclosed as Creditors for Expenses. Where the construction or development of any such assets requiring a substantial period of time to set up for its intended use, is funded by borrowing if any, the corresponding borrowing cost are capitalized up to the date when the asset is ready for its intended use.
f) Inventories :
i) Finished Goods are valued at lower of cost or net realizable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity. Further scrap of finished goods is valued at Net Realizable Value.
ii) Stock in process is valued at cost.
iii) Raw Material, packing Material, Stores & Fire wood/Lignite, Folders are valued at cost inclusive of freight & incidental expenses. Cost is net of Modvat credit and input VAT.
iv) Stock lying at C & F Agent is valued at cost plus excise, packing, freight and octroi, if any.
g) Foreign Currency Transaction :
Foreign currency transactions are accounted at exchange rates prevailing on the date of the transactions take place or that approximates the actual rate on the date of transactions. The transactions denominated in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of balance sheet.
Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the statement of Profit and Loss except in cases where they relate to the acquisition of qualifying fixed assets covered under AS-16, in which case they are adjusted to the carrying cost of such assets.
Transactions in the foreign currency which are covered by forward contracts are accounted for at the contracted rate; the difference between the forward rate and the exchange rate at the date of transaction is recognized in the statement of profit & loss over the life of the contract.
h) VAT, CST, Excise duty & Service tax :
VAT, CST, excise duty & Service Tax payable and Cenvat receivable are accounted on the basis of returns submitted. Additional liabilities if any on assessment/ audit objections shall be provided/ paid as and when the assessment is completed.
i) Employee Benefits:
a) Short Term Employee Benefits
All Employees benefits falling due wholly within twelve months of rendering the services are classified as short term employees'' benefits. The benefits like salary wages short term compensated absences & performance incentives are recognized in the period in which the employee renders the related services.
b) Post employment benefits
The Provident fund Scheme managed by Employees'' Provident Fund Act 1952 managed by Government of Gujarat , Employees'' Gratuity Fund Scheme managed by LIC are the company''s defined benefit plans. Wherever applicable, the present value of obligation under such defined benefit plans is determined based on actuarial valuation using the projected unit credit method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to built up financial obligation.
The obligation is measured at the present value of estimated cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan is based on the market yields on Government Bonds as at Balance sheet date having maturity periods approximating to the term of related obligations. Actuarial Gains and loss are recognized immediately in the profit and loss account. In case of funded plans the fair value of plan assets is reduced from the gross obligations under the defined benefit plans to recognize the obligation on net basis.
Gain or loss on the curtailment or settlement of any defined benefit plans recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on straight line basis over the average period until the benefit becomes vested.
i. Provident Fund and Employee''s Deposit Linked Insurance (EDLI) are defined contribution scheme and the contributions are charged to statement of profit & loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.
ii. Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.
iii. Actuarial gain and losses are recognized in the statement of Profit & Loss.
iv. The provision for leave encashment has been made as per the rules and regulations of the company, j) Prior Period Items :
Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the statement of Profit and loss, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the statement of Profit & Loss. k) Depreciation :
(i) Tangible- Owned assets:
Depreciation on the fixed assets is provided based on the useful life prescribed in Schedule II of the Companies Act, 2013, on straight-line method. Further, the depreciation on Plant and Machinery of Laminate division is provided on three shifts basis. Depreciation for assets purchased / sold during a period is proportionately charged.
(ii) Intangible Assets:
Depreciation on the intangible assets like computer software is provided based on the useful life prescribed in Schedule II of the Companies Act, 2013, on straight-line method.
(iii) Capital work in progress:
Cost of Assets not ready for intended use as on balance sheet date is shown as Capital work in progress. Advance given towards acquisition of fixed assets outstanding at each balance sheet date are disclosed as long term loans and advances. Where construction or development of any such assets requiring a substantial period of time to set up for its intended use is funded by borrowing if any, the corresponding borrowing cost are capitalized up to the date when the asset is ready for its intended use. l) Events Occurring after balance Sheet Date :
Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material except a raid u/s 67 of the Gujarat Commercial Tax conducted after the balance sheet but before adoption of account, however its order along with demand if any is not served till date of signing Account. In lieu thereof its impact on revenue can''t be ascertained hence can''t be recognized.
m) Borrowing Costs :
Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are ready for its intended use. Other Borrowing costs including interest, pre payment charges, and finance charges in respect of assets acquired on hire purchase are charged as an expense in the year in which these are incurred. n) Taxation :
In view of loss, during the current period the provision for Tax on income in accordance with the provision of the Income tax Act, 1961 is not required to be made.
Deferred tax is recognized on timing differences between the income accounted in the financial statements and the taxable income for the year, and quantified using the tax rates and loss enacted or subsequently enacted as on the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonably certain/ virtual certainty that the sufficient future taxable income will available against which such deferred tax assets can be realized. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.
o) Deferred Tax Asset as on March 31, 2016 Comprises of the following:
The deferred tax liabilities for the year ended on March 31, 2016 is recognized for the profit & loss account comprising of tax effect of timing difference as under.
p) Provisions & Contingencies :
A provisions are recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. A Contingent liabilities is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A Contingent Liabilities also arise in extremely rare cases where there is a liability that cannot be recognized because it cannot be measure reliably. Contingent liabilities are not recognized but disclosed in notes to the Financial Statements in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognizes until the realization of Income is virtually certain as per views of the management.
q) Segment Reporting :
The Company is primarily engaged in business of furnishing and construction material belongs to same product group, which is governed by the same set of risks and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.
r) Impairment :
The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/ external factor. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is, greater of 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.
s) Earnings Per Share :
Basic earnings per share are calculated by dividing the net profit/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 EPS, the net profit attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
t) Investments :
Long term investments are carried at cost. As there was no diminution other than temporary in the value of the investments no provision for diminution for the same is required to be recognized. There is no Current Investment as at the balance Sheet date. Hence, no comment for its valuation is offered.
u) Deferred Revenue Expenditure: Nil
v) Cash flow statement :
Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities reported using indirect method. Under the Indirect method the Net profit is adjusted for the effects of:
a) Transactions of a non cash nature
b) Any deferrals or accruals of past and future operating cash receipt or payment and
c) Items of income or expense associated with investing or financing cash flows.
Cash and cash equivalents (Including Bank balances) are reflected as such in cash flow statement.
Mar 31, 2015
A) Basis of Accounting :
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention and on the basis of a going concern, on
accrual basis except Retirement benefits and those w'th significant
uncertainty unless otherw'se stated. The company has prepared these
financial statements to comply in all material respects with the
accounting standards notified under section 133 of the Companies Act,
2013 read together w'th paragraph 7 of the Companies (Account) Rules
2014. These accounting policies have been consistently applied.
b) Use of Estimates :
The preparation of financial statements in conformity w'th India GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about the assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in the future periods.
c) Revenue Recognition :
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured.
i) Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Accordingly, domestic
sales are accounted on dispatch of products to customers and Export
sales are accounted on the receipt of bill of lading and on the basis
of custom rate or on negotiation of document w'th the bankers as per
the foreign exchange rates prevailing on the date of negotiation. Sales
are disclosed net of the value added tax, discounts on sales and sales
returns, as applicable.
ii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding, the rate of interest as applicable
and on the basis of debit notes issued by the company for delayed
payments by customers.
iii) The company accounts for pro forma credits, refunds of duty of
customs or excise, or refunds of sales tax in the year of admission of
such claims by the concerned authorities. Benefits in respect of Export
Licenses are recognized on application. Export benefits are accounted
for as other operating income in the year of export based eligibility
and when there is no uncertainty on receiving the same
d) Expenditures :
i) Purchases:
Purchase of Raw Materials and Stores are accounted net of receivable
Cenvat and VAT.
ii) Expenses:
Expenses are accounted on accrual basis and net of Service tax paid on
various expenses.
e) Tangible Assets :
i) Tangible Fixed Assets acquired by the Company are reported at
acquisition value, net of accumulated impairment losses, if any
(excluding freehold land). The cost of purchase price and borrowing
costs if capitalization criteria are met, the cost of replacing part
of the fixed assets and directly attributable cost of bringing the
assets to its working condition for the intended use.
ii) Cost of Assets not ready for intended use, as on the balance sheet
date, is shown as capital work in progress. Advances given towards
acquisition of fixed assets outstanding at each balance sheet date are
disclosed as Creditors for Expenses. Where the construction or
development of any such assets requiring a substantial period of time
to set up for its intended use, is funded by borrowing if any, the
corresponding borrowing cost are capitalized up to the date when the
asset is ready for its intended use.
f) Inventories:
i) Finished Goods are valued at lower of cost or net realizable value.
Cost includes material, labour and direct overheads and proportion of
manufacturing overheads based on normal operating capacity. Further
scrap of finished goods is valued at Net Realizable Value.
ii) Stock in process is valued at cost.
iii) Raw Material, packing Material, Stores & Fire wood/Lignite,
Folders are valued at cost inclusive of freight & incidental expenses.
Cost is arrived at on FIFO basis and is net of modvat credit and input
VAT.
iv) Stock lying at C & F Agent is valued at cost plus excise, packing,
freight and octroi, if any.
g) Foreign Currency Transaction :
Foreign currency transactions are accounted at exchange rates
prevailing on the date of the transactions take place or that
approximates the actual rate on the date of transactions. The
transactions denominated in foreign currencies, which are not settled
up to the date of balance sheet, are translated into rupees at the
exchange rate prevailing on the date of balance sheet.
Any gains or losses on account of exchange difference either on
settlement or on translation is recognized in the statement of Profit
and Loss except in cases where they relate to the acquisition of
qualifying fixed assets covered under AS-16, in which case they are
adjusted to the carrying cost of such assets.
Transactions in the foreign currency which are covered by forward
contracts are accounted for at the contracted rate; the difference
between the forward rate and the exchange rate at the date of
transaction is recognized in the statement of profit & loss over the
life of the contract.
h) VAT, CST, Excise duty & Service tax:
VAT, CST, excise duty & Service Tax payable and Cenvat receivable are
accounted on the basis of returns submitted. Additional liabilities if
any on assessment/ audit objections shall be provided/ paid as and when
the assessment is completed.
i) Employee Benefits:
i) Provident Fund and Employee's Deposit Linked Insurance (EDLI) are
defined contribution scheme and the contributions are charged to
statement of profit & loss of the year when the contribution to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective funds.
ii) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation done using projected unit
credit method.
iii) Actuarial gain and losses are recognized in the statement of
Profit & Loss.
As per views of the management Leave encashment provision is not
required on account of companies own Leave rules, hence Leave
encashment to employees are not provided and shall be accounted as and
when paid, if any.
j) Prior Period Items :
Significant items of income and expenditure, which are relating to
prior accounting period, are accounted in the statement of Profit and
loss, under the head prior year adjustments and the expenditure &
income which are not material pertaining to prior period, are shown
under the respective heads of accounts in the statement of Profit &
Loss.
k) Depreciation on Fixed assets :
Till the year ended on 31st March 2014, schedule XIV to Companies Act
1956 prescribed requirements concerning depredation of fixed assets.
From the current year, Schedule XIV has been replaced by Schedule II to
the Companies Act 2013. The applicability of Schedule II has resulted
in the following changes related to deprecation of fixed assets:
a. Useful Lives/ Depredation Rates
Considering the applicability of Schedule II, the management has
adopted the useful lives and residual values of all its fixed assets as
provided under Schedule II. The management believes that prescribed
useful life under the schedule fairly reflects its estimates of the
useful lives and residual values of fixed assets. Due to adoption of
the useful life prescribed, the charge in respect of depredation for
the current year for the assets is higher by Rs. 1,04,74,202/-
b. Components Accounting
The company has adopted Schedule II to the Companies Act, 2013 for
deprecation purposes from 1st April, 2014. The company was previously
not identifying components of fixed assets separately for depreciation
purposes. Rather, a single useful life /deprecation rate was used to
depredate each item of fixed assets. Due to application of Schedule II
to the Companies Act, 2013, the company has changed the manner of
deprecation for its fixed Assets.
Now, the company identifies and determines separate useful life for
each major component of fixed assets, if they have useful life that is
materially different from that of remaining assets. The company has
used transitional provisions of Schedule II to adjust the impact of
component accounting arising on its first application.
c. Depredation on Assets Costing Less than 5000/-
Till the year ended 31st March, 2014, to comply with the requirements
of Schedule XIV of Companies Act, 1956, the company was charging 100%
depredation on assets costing less than Rs. 5000/- in the year of
purchase. However, Schedule II to the Companies Act,2013 applicable
from the current year, does not recognize such practice. Hence to
comply with the requirement of Schedule II to Companies Act, 2013 the
company has changed its accounting policy for depredations of assets
costing less than Rs. 5000/-. As per the revised policy, the company is
depredating such assets over their useful life as defined under
schedule II. The revised accounting policy has been applied
prospectively from accounting periods commendng on or after 1st April,
2014.
Depredation on the fixed assets is provided at the rates and in the
manner spedfied in Schedule II of the Companies Act, 2013, on
straight-line method. Further, the depredation on Plant and Machinery
of Laminate division is provided on three shifts basis.
l) Events Occurring after balance Sheet Date:
Events occurring after the date of Balance Sheet are considered up to
the date of adoption of the accounts where material.
m) Borrowing Costs :
Borrowing Costs including Foreign Exchange Fluctuation for qualifying
assets incurred in relation to the acquisition, construction of assets
are capitalized as a part of the cost of such assets up to the date
when such assets are ready for its intended use. Other Borrowing costs
are charged as an expense in the year in which these are incurred.
n) Taxation :
The current charge for income taxes (MAT) is calculated in accordance
with the relevant tax regulations applicable to the Company. Deferred
tax is measured 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 reasonably certain/
virtual certainty that the sufficient future taxable income will
available against which such deferred tax assets can be realized. At
each Balance Sheet date, the carrying amount of deferred tax assets is
reviewed to reassure realization.
Deferred Tax Asset as on 31/03/2015 Comprises of the following:
The deferred tax liabilities for the year ended on 31.3.2015 is
recognized for the profit & loss account comprising of tax effect of
timing difference as under.
o) Provisions & Contingencies:
A provisions are recognized when the Company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimates required to settle the obligation at Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. A Contingent liabilities is a possible
obligation that arise from past events whose existence will be
confirmed by the occurrence or non occurrence of one or more uncertain
future events beyond the control of Company or a present obligation
that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A Contingent
Liabilities also arise in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measure
reliably. Contingent liabilities are not recognized but disclosed in
notes to the Financial Statements in case if obligation is disputed and
the possibility of an outflow of resources is remote. Contingent assets
are not recognizes until the realization of Income is virtually certain
as per views of the management.
p) Segment Reporting:
The Company is primarily engaged in business of furnishing and
construction material, which is governed by the same set of risks and
returns. Hence, there is only one primary segment. The said treatment
is in accordance with the principal enunciated in Accounting Standard
(AS-17) on Segment Reporting.
q) Impairment :
The carrying amount of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment based on internal/ external
factor. An impairment loss is recognized whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is,
greater of 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.
r) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit 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 EPS, the net profit attributable
to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
s) Investments
Long term investments are carried at cost. As there was no diminution
other than temporary in the value of the investments no provision for
diminution for the same is required to be recognized. There is no
Current Investment as at the balance Sheet date. Hence, no comment for
its valuation is offered.
t) Deferred Revenue Expenditure : Nil
Mar 31, 2014
A) Basis of Accounting :
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention and on the basis of a going concern, on
accrual basis except Telephone expenses, Retirement benefits and those
with significant uncertainty unless otherwise stated. GAAP comprises
mandatory accounting standards issued by the Institute of Chartered
Accountants of India ("ICAI") and the provisions of the Companies Act,
1956./ relevant enacted provisions of the Companies Act, 2013 to the
extent applicable. These accounting policies have been consistently
applied.
b) Use of Estimates :
The preparation of financial statements in conformity with India GAAP
requires the management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about the assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
c) Revenue Recognition :
Revenue is recognised to the extent it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured.
i) Revenue is recognised when the significant risks and rewards of
ownership of the goods have passed to the buyer. Accordingly, domestic
sales are accounted on dispatch of products to customers and Export
sales are accounted on the receipt of bill of lading and on the basis
of custom rate or on negotiation of document with the bankers as per
the foreign exchange rates prevailing on the date of negotiation. Sales
are disclosed net of value added tax, discounts on sales and sales
returns, as applicable.
ii) Interest income is recognised on a time proportion basis taking
into account the amount outstanding, the rate of interest as applicable
and on the basis of debit notes issued by the company for delayed
payments by customers.
d) Expenditures :
i) Purchases:
Purchase of Raw Materials and Stores are accounted net of receivable
Cenvat and VAT.
ii) Expenses :
Expenses are accounted on accrual basis and net of Service tax paid on
various expenses.
e) Tangible Assets:
i) Tangible Fixed Assets acquired by the Company are reported at
acquisition value, with deductions for accumulated depreciation [other
than "freehold land" where no depreciation is charged] and impairment
losses, if any. The acquisition value includes the purchase price
(excluding refundable taxes), and expenses directly attributable to
assets to bring it to the factory and in the working condition for its
intended use.
ii) Cost of Assets not ready for intended use, as on the balance sheet
date, is shown as capital work in progress. Advances given towards
acquisition of fixed assets outstanding at each balance sheet date are
disclosed as Long Term Loans & Advances. Where the construction or
development of any such assets requiring a substantial period of time
to set up for its intended use, is funded by borrowings if any, the
corresponding borrowing cost are capitalized upto the date when the
asset is ready for its intended use.
f) Inventories:
a) Finished Goods are valued at lower of cost or net realisable value.
Cost includes material, labour and direct overheads and proportion of
manufacturing overheads based on normal operating capacity.
b) Stock in process is valued at cost.
c) Raw Material, Packing Material, Stores & Fire wood/Lignite are
valued at cost inclusive of freight & incidental expenses. Cost is
arrived at on FIFO Basis and is net of modvat credit and input VAT.
d) Stock lying at C & F Agent is valued at cost plus excise, packing,
freight and octroi, if any.
g) Foreign Currency Transactions:
The transactions denominated in foreign currencies, which are not
settled up to the date of balance sheet, are translated into rupees at
the exchange rate prevailing on the date of the balance sheet.
Any gains or losses on account of exchange difference either on
settlement or on translation is recognized in the statement of Profit
and Loss except in cases where they relate to the acquisition of
qualifying fixed assets covered under AS - 16, in which case they are
adjusted to the carrying cost of such assets.
Transactions in the foreign currency which are covered by forward
contracts are accounted for at the contracted rate; the difference
between the forward rate and the exchange rate at the date of
transaction is recognized in the statement of profit & loss over the
life of the contract.
h) VAT, CST, Excise duty & Service Tax:
VAT, CST, excise duty & Service Tax payable and Cenvat receivable are
accounted on the basis of returns submitted. Additional liabilities if
any on assessment/audit objections shall be provided /paid as and when
the assessment is completed.
i) Employee Benefits:
a) Provident Fund and Employee''s Deposit Linked Insurance(EDLI) are
defined contribution scheme and the contributions are charged to
statement of profit & loss of the year when the contribution to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective funds.
b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation done using projected unit
credit method.
c) Actuarial gain and losses are recognized in statement of Profit &
Loss.
As per views of the management Leave encashment provision is not
required on account of companies own Leave rules, hence Leave
encashment to employees are not provided and shall be accounted as and
when paid, if any.
j) Prior Period items:
Significant items of income and expenditure, which are relating to
prior accounting period, are accounted in the statement of Profit and
Loss, under the head prior year adjustments and the expenditure &
income which are not material pertaining to prior period, are shown
under the respective heads of accounts in the statement of Profit &
Loss.
k) Depreciation:
Depreciation on the fixed assets is provided at the rates and in the
manner specified in Schedule XIV of the Companies Act, 1956, on
straight-line method. The depreciation on Plant and Machinery is
provided on three shifts basis.
l) Events Occurring after Balance Sheet Date:
Events occurring after the date of Balance Sheet are considered up to
the date of adoption of the accounts where material.
m) Borrowing Costs :
Borrowing Costs including Foreign Exchange Fluctuation for qualifying
assets incurred in relation to the acquisition, construction of assets
are capitalized as a part of the cost of such assets up to the date
when such assets are ready for its intended use. Other Borrowing costs
are charged as an expense in the year in which these are incurred.
n) Taxation :
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax is
measured on the tax rates and the tax laws enacted or substantively
enacted at the Balance Sheet date. Deferred tax assets are recognised
only to the extent that there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised. At each Balance Sheet date, the carrying amount
of deferred tax assets is reviewed to reassure realization.
o) Provisions & Contingencies :
A provisions are recognized when the Company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Contingent
liabilities are not recognised but disclosed in notes to the Financial
Statements in case if obligation is disputed and the possibility of an
outflow of resources is remote. Contingent assets are not recognised
until the realisation of Income is virtually certain as per views of
the management.
p) Segment Reporting :
The Company is primarily engaged in business of furnishing and
construction material, which is governed by the same set of risk and
returns. Hence, there is only one primary segment. The said treatment
is in accordance with the principal enunciated in Accounting Standard
(AS-17) on Segment Reporting.
q) Impairment :
The carrying amount of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment based on internal/external
factor. An impairment loss is recognised whenever the carrying amount
of an asset exceed its recoverable amount. The recoverable amount is,
greater of 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.
Mar 31, 2013
A) Basis of Accounting:
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles ("GAAPÂ) under the
historical cost convention and on the basis of a going concern, on
accrual basis except Telephone expenses, Retirement benefits and those
with significant uncertainty unless otherwise stated. GAAP comprises
mandatory accounting standards issued by the Institute of Chartered
Accountants of India ("ICAIÂ) and the provisions of the Companies Act,
1956. These accounting policies have been consistently applied.
b) Use of Estimates
The preparation of financial statements in conformity with India GAAP
requires the management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management`s best knowledge of current events and actions, uncertainty
about the assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
c) Fixed Assets:
The Fixed Assets are stated at the cost of acquisition including inward
freight, duties & taxes and other incidental expenses less refundable
duties, taxes and depreciation.
Borrowing costs attributable to acquisition / construction of fixed
assets, if any, are capitalized as per the policy in note (l) below.
d) Inventories:
a) Finished Goods are valued at lower of cost or net realisable value.
Cost includes material, labour and direct overheads and proportion of
manufacturing overheads based on normal operating capacity.
b) Stock in process is valued at cost.
c) Raw Material, Packing Material, Stores & Fire wood/Lignite are
valued at cost inclusive of freight & incidental expenses. Cost is
arrived at on FIFO Basis and is net of modvat credit and input VAT.
d) Stock lying at C & F Agent is valued at cost plus excise, packing,
freight and octroi, if any.
e) Foreign Currency Transactions:
The transactions in foreign currencies, which are not settled up to the
date of balance sheet, are translated into rupees at the exchange rate
prevailing on the date of the balance sheet.
Any gains or losses on account of exchange difference either on
settlement or on translation is recognized in the statement of Profit
and Loss except in cases where they relate to the acquisition of
qualifying fixed assets covered under AS - 16, in which case they are
adjusted to the carrying cost of such assets.
f) VAT, CST, Excise duty & Service Tax:
VAT, CST, excise duty & Service Tax payable and Cenvat receivable are
accounted on the basis of returns submitted. Additional liabilities if
any on assessment/audit objections shall be provided /paid as and when
the assessment is completed.
This year the provision is made for the excise duty on closing stock of
finished goods lying in bonded warehouse at factory as on 31.03.13.
g) Retirement Benefits:
a) Provident Fund and Employee`s Deposit Linked Insurance(EDLI) are
defined contribution scheme and the contributions are charged to
statement of profit & loss of the year when the contribution to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective funds.
b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation done using projected unit
credit method.
c) Actuarial gain and losses are recognized in statement of Profit &
Loss.
As per views of the management Leave encashment provision is not
required on account of companies own Leave rules, hence Leave
encashment to employees are not provided and shall be accounted as and
when paid, if any.
h) Sales & Purchases:
i) Domestic Sale:
Sales are recognized on dispatch of goods by the company. Sales are net
of goods returned.
ii) Export Sales:
Export sale is recognized on receipt of bill of lading and is accounted
on the basis of custom rate or on negotiation of document with the
bankers as per the foreign exchange rates prevailing on the date of
negotiation and are net of goods return.
iii) Purchases:
Purchase of Raw Materials and Stores are accounted net of receivable
Cenvat and VAT.
iv) Expenses :
Expenses are accounted net of Service tax paid on various expenses.
v) Prior Period items:
Significant items of income and expenditure, which are relating to
prior accounting period, are accounted in the statement of Profit and
Loss, under the head prior year adjustments and the expenditure &
income which are not material pertaining to prior period, are shown
under the respective heads of accounts in the statement of Profit &
Loss.
j) Depreciation:
Depreciation on the fixed assets is provided at the rates and in the
manner specified in Schedule XIV of the Companies Act, 1956, on
straight-line method. The depreciation on Plant and Machinery is
provided on three shifts basis.
k) Events Occurring after Balance Sheet Date:
Events occurring after the date of Balance Sheet are considered up to
the date of adoption of the accounts where material.
l) Borrowing Costs:
Borrowing Costs including Foreign Exchange Fluctuation for qualifying
assets incurred in relation to the acquisition, construction of assets
are capitalized as a part of the cost of such assets up to the date
when such assets are put to use. Other Borrowing costs are charged as
an expense in the year in which these are incurred.
m) Taxation:
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax
assets and liabilities are recognized for future tax consequences
attributable to the timing difference that result between the profit
offered for income tax and the profits as per the financial statements.
Deferred tax assets and liabilities are measured as per the tax
rates/laws that have been enacted or substantively enacted by the
Balance Sheet date.
n) Contingent Liabilities and Assets :
Contingent liability is recognised and provided for when the company
has present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligations
and of which a reliable estimate can be made. Contingent liability is
disclosed in notes to the accounts in case if obligation is disputed
and the possibility of an outflow of resources is remote. Contingent
assets are not recognised until the realisation of Income is virtually
certain as per views of the management.
o) Segment Reporting :
The Company is primarily engaged in business of furnishing and
construction material, which is governed by the same set of risk and
returns. Hence, there is only one primary segment. The said treatment
is in accordance with the principal enunciated in Accounting Standard
(AS-17) on Segment Reporting.
p) Impairment :
The carrying amount of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment based on internal/external
factor. An impairment loss is recognised whenever the carrying amount
of an asset exceed its recoverable amount. The recoverable amount is,
greater of 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.
Mar 31, 2012
A) Basis of Accounting:
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention and on the basis of a going concern, on
accrual basis except Telephone expenses, Retirement benefits and those
with significant uncertainty unless otherwise stated. GAAP comprises
mandatory accounting standards issued by the Institute of Chartered
Accountants of India ("ICAI") and the provisions of the Companies Act,
1956. These accounting policies have been consistently applied.
b) Use of Estimates
The preparation of financial statements in conformity with India GAAP
requires the management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about the assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
c) Fixed Assets:
The Fixed Assets are stated at the cost of acquisition including inward
freight, duties & taxes and other incidental expenses less refundable
duties, taxes and depreciation.
Borrowing costs attributable to acquisition / construction of fixed
assets, if any, are capitalized as per the policy in note (l) below.
d) Inventories:
a) Finished Goods are valued at lower of cost or net realisable value.
Cost includes material, labour and direct overheads and proportion of
manufacturing overheads based on normal operating capacity.
b) Stock in process is valued at cost.
c) Raw Material, Packing Material, Stores & Fire wood/Lignite are
valued at cost inclusive of freight & incidental expenses. Cost is
arrived at on FIFO Basis and is net of modvat credit and input VAT.
d) Stock lying at C & F Agent is valued at cost plus excise, packing,
freight and octroi, if any.
e) Foreign Currency Transactions:
The transactions in foreign currencies, which are not settled up to the
date of balance sheet, are translated into rupees at the exchange rate
prevailing on the date of the balance sheet.
Any gains or losses on account of exchange difference either on
settlement or on translation is recognized in the statement of Profit
and Loss except in cases where they relate to the acquisition of
qualifying fixed assets covered under AS - 16, in which case they are
adjusted to the carrying cost of such assets.
f) VAT, CST, Excise duty & Service Tax:
VAT, CST, excise duty & Service Tax payable and Cenvat receivable are
accounted on the basis of returns submitted. Additional liabilities if
any on assessment/audit objections shall be provided /paid as and when
the assessment is completed.
This year the provision is made for the excise duty on closing stock of
finished goods lying in bonded warehouse at factory as on 31.03.12.
g) Retirement Benefits:
a) Provident Fund and Employee's Deposit Linked Insurance(EDLI) are
defined contribution scheme and the contributions are charged to
statement of profit & loss of the year when the contribution to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective funds.
b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation done using projected unit
credit method.
c) Actuarial gain and losses are recognized in statement of Profit &
Loss.
As per views of the management Leave encashment provision is not
required on account of companies own Leave rules, hence Leave
encashment to employees are not provided and shall be accounted as and
when paid, if any.
h) Sales & Purchases:
i) Domestic Sale:
Sales are recognized on dispatch of goods by the company. Sales are net
of goods returned.
ii) Export Sales:
Export sale is recognized on receipt of bill of lading and is accounted
on the basis of custom rate or on negotiation of document with the
bankers as per the foreign exchange rates prevailing on the date of
negotiation and are net of goods return.
iii) Purchases:
Purchase of Raw Materials and Stores are accounted net of receivable
Cenvat and VAT.
iv) Expenses :
Expenses are accounted net of Service tax paid on various expenses.
v) Prior Period items:
Significant items of income and expenditure, which are relating to
prior accounting period, are accounted in the statement of Profit and
Loss, under the head prior year adjustments and the expenditure &
income which are not material pertaining to prior period, are shown
under the respective heads of accounts in the statement of Profit &
Loss.
j) Depreciation:
Depreciation on the fixed assets is provided at the rates and in the
manner specified in Schedule XIV of the Companies Act, 1956, on
straight-line method. The depreciation on Plant and Machinery is
provided on three shifts basis. k) Events Occurring after Balance
Sheet Date:
Events occurring after the date of Balance Sheet are considered up to
the date of adoption of the accounts where material.
l) Borrowing Costs:
Borrowing Costs including Foreign Exchange Fluctuation for qualifying
assets incurred in relation to the acquisition, construction of assets
are capitalized as a part of the cost of such assets up to the date
when such assets are put to use. Other Borrowing costs are charged as
an expense in the year in which these are incurred.
m) Taxation:
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax
assets and liabilities are recognized for future tax consequences
attributable to the timing difference that result between the profit
offered for income tax and the profits as per the financial statements.
Deferred tax assets and liabilities are measured as per the tax
rates/laws that have been enacted or substantively enacted by the
Balance Sheet date.
n) Contingent Liabilities and Assets :
Contingent liability is recognised and provided for when the company
has present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligations
and of which a reliable estimate can be made. Contingent liability is
disclosed in notes to the accounts in case if obligation is disputed
and the possibility of an outflow of resources is remote. Contingent
assets are not recognised until the realisation of Income is virtually
certain as per views of the management.
o) Segment Reporting :
The Company is primarily engaged in business of furnishing and
construction material, which is governed by the same set of risk and
returns. Hence, there is only one primary segment. The said treatment
is in accordance with the principal enunciated in Accounting Standard
(AS-17) on Segment Reporting.
p) Impairment :
The carrying amount of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment based on internal/external
factor. An impairment loss is recognised whenever the carrying amount
of an asset exceed its recoverable amount. The recoverable amount is,
greater of 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.
Mar 31, 2011
1. Basis of Accounting:
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention and on the basis of a going concern, on
accrual basis except Telephone expenses, Retirement benefits and those
with significant uncertainty unless otherwise stated. GAAP comprises
mandatory accounting standards issued by the Institute of Chartered
Accountants of India ("ICAI") and the provisions of the Companies Act,
1956. These accounting policies have been consistently applied.
2. Use of Estimates
The preparation of financial statements in conformity with general
accepted Accounting Standards requires Management to make estimates and
assumption that affect the reported amounts of assets and liabilities
at the date of financial statements and the results of operations
during the reporting period end. Although these estimates are based
upon management's best knowledge of current events and actions, actual
results could differ from these estimates. Actual results could differ
from those estimates.
3. Fixed Assets:
The Fixed Assets are stated at the cost of acquisition including inward
freight, duties & taxes and other incidental expenses less refundable
duties, taxes and depreciation.
Borrowing costs attributable to acquisition / construction of fixed
assets, if any, are capitalized as per the policy in note (13) below.
4. Inventories:
a) Finished Goods are valued at lower of cost or net realisable value.
Cost includes material, labour and direct overheads and proportion of
manufacturing overheads based on normal operating capacity.
b) Stock in process is valued at cost.
c) Raw Material, Packing Material, Stores & Fire wood/Lignite are
valued at cost inclusive of freight & incidental expenses. Cost is
arrived at on FIFO Basis and is net of modvat credit and input VAT.
d) Stock lying at C & F Agent is valued at cost plus excise, packing,
freight and octroi, if any.
5. Foreign Currency Transactions:
The transactions in foreign currencies, which are not settled up to the
date of balance sheet, are translated into rupees at the exchange rate
prevailing on the date of the balance sheet.
Any gains or losses on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account except in cases where they relate to the acquisition of
qualifying fixed assets covered under AS - 16, in which case they are
adjusted to the carrying cost of such assets.
6. VAT, CST, Excise duty & Service Tax:
VAT, CST, excise duty & Service Tax payable and Cenvat receivable are
accounted on the basis of returns submitted. Additional liabilities if
any on assessment/audit objections shall be provided /paid as and when
the assessment is completed.
This year the provision is made for the excise duty on closing stock of
finished goods lying in bonded warehouse at factory as on 31.03.11.
Earlier, Excise duty on closing stock of finished goods lying in bonded
warehouse at factory was provided only on removal of goods from the
factory. This change has no effect on the profit or loss of the year.
7. Retirement Benefits:
a) Provident Fund and Employee's Deposit Linked Insurance(EDLI) are
defined contribution scheme and the contributions are charged to profit
& loss account of the year when the contribution to the respective
funds are due. There are no other obligations other than the
contribution payable to the
b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation done using projected unit
credit method.
c) Actuarial gain and losses are recognized in Profit & Loss account.
As per views of the management Leave encashment provision is not
required on account of companies own Leave rules, hence Leave
encashment to employees are not provided and shall be accounted as and
when paid, if any.
8. Sales & Purchases:
a) Domestic Sale:
Sales are recognized on dispatch of goods by the company. Sales are net
of goods returned.
b) Export Sales:
Export sale is recognized on receipt of bill of lading and is accounted
on the basis of custom rate or on negotiation of document with the
bankers as per the foreign exchange rates prevailing on the date of
negotiation and are net of goods return.
c) Purchases:
Purchase of Raw Materials and Stores are accounted net of receivable
Cenvat and VAT.
d) Expenses :
Expenses are accounted net of Service tax paid on various expenses.
9. Prior Period items:
Significant items of income and expenditure, which are relating to
prior accounting period, are accounted in the Profit and Loss account,
under the head prior year adjustments and the expenditure & income
which are not material pertaining to prior period, are shown under the
respective heads of accounts in the Profit & Loss Account.
10. Depreciation:
Depreciation on the fixed assets is provided at the rates and in the
manner specified in Schedule XIV of the Companies Act, 1956, on
straight-line method. The depreciation on Plant and Machinery is
provided on three shifts basis.
11. Events Occurring after Balance Sheet Date:
Events occurring after the date of Balance Sheet are considered up to
the date of adoption of the accounts where material.
12. Borrowing Costs:
Borrowing Costs including Foreign Exchange Fluctuation for qualifying
assets incurred in relation to the acquisition, construction of assets
are capitalized as a part of the cost of such assets up to the date
when such assets are put to use. Other Borrowing costs are charged as
an expense in the year in which these are incurred.
13. Taxation:
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax
assets and liabilities are recognized for future tax consequences
attributable to the timing difference that result between the profit
offered for income tax and the profits as per the financial statements.
Deferred tax assets and liabilities are measured as per the tax
rates/laws that have been enacted or substantively enacted by the
Balance Sheet date.
14. Contingent Liabilities and Assets :
Contingent liability is recognised and provided for when the company
has present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligations
and of which a reliable estimate can be made. Contingent liability is
disclosed in notes to the accounts in case if obligation is disputed
and the possibility of an outflow of resources is remote. Contingent
assets are not recognised until the realisation of Income is virtually
certain as per views of the management.
15. Segment Reporting:
The Company is primarily engaged in business of furnishing and
construction material, which is governed by the same set of risk and
returns. Hence, there is only one primary segment. The said treatment
is in accordance with the principal enunciated in Accounting Standard
(AS-17) on Segment Reporting.
16. Impairment:
The carrying amount of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment base on internal/external
factor. An impairment loss is recognised whenever the carrying amount
of an asset exceed it recoverable amount. The recoverable amount is,
grater of 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.
Mar 31, 2010
1. Basis of Accounting:
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention and on the basis of a going concern, on
accrual basis except Telephone expenses, Retirement benefits and those
with significant uncertainty unless otherwise stated. GAAP comprises
mandatory accounting standards issued by the Institute of Chartered
Accountants of India ("ICAI") and the provisions of the Companies Act,
1956. These accounting policies have been consistently applied.
2. Use of Estimates
The preparation of financial statements in conformity with general
accepted Accounting Standards requires Management to make estimates and
assumption that affect the reported amounts of assets and liabilities
at the date of financial statements and the results of operations
during the reporting period end. Although these estimates are based
upon managements best knowledge of current events and actions, actual
results could differ from these estimates. Actual results could differ
from those estimates.
3. Fixed Assets:
The Fixed Assets are stated at the cost of acquisition including inward
freight, duties & taxes and other incidental expenses less refundable
duties, taxes and depreciation.
Borrowing costs attributable to acquisition / construction of fixed
assets, if any, are capitalized as per the policy in note (13) below.
4. Inventories:
a) Finished Goods are valued at lower of cost or net realisable value.
Cost includes material, labour and direct overheads and proportion of
manufacturing overheads based on normal operating capacity.
b) Stock in process is valued at cost.
c) Raw Material, Packing Material, Stores & Fire wood/Lignite are
valued at cost inclusive of freight & incidental expenses. Cost is
arrived at on FIFO Basis and is net of modvat credit and input VAT.
d) Stock lying at C 8. F Agent is valued at cost plus excise, packing,
freight and octroi, if any.
5. Foreign Currency Transactions:
The transactions in foreign currencies, which are not settled up to the
date of balance sheet, are translated into rupees at the exchange rate
prevailing on the date of the balance sheet.
Any gains or losses on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account except in cases where they relate to the acquisition of
qualifying fixed assets covered under AS - 16, in which case they are
adjusted to the carrying cost of such assets.
6. Excise & Custom Duty:
a) Excise duty liability accruing on manufacture is accounted for as
and when the liability for payment arises under the Central Excise Act,
1944. Excise duty on finished goods lying in the factory premises and
in the bonded warehouses is not accrued and not accounted.
a) Custom duty on goods lying in bonded warehouse/port is accounted at
the time of payment on removal of goods from the bonded warehouse/port.
These accounting policies have no impact on profit of the company.
7. VAT, Excise duty & Service Tax:
VAT, excise duty & Service Tax payable and modvat receivable are
accounted on the basis of return submitted. Additional liabilities if
any on assessment/audit objections shall be provided /paid as and when
the assessment is completed.
8. Retirement Benefits:
a) Provident Fund and Employees Deposit Linked Insurance(EDLI) are
defined contribution scheme and the contributions are charged to profit
& loss account of the year when the contribution to the respective
funds are due. There are no other obligations other than the
contribution payable to the respective funds.
b) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation done using projected unit
credit method.
c) Actuarial gain and losses are recognized in Profit & Loss account.
As per views of the management Leave encashment provision is not
required on account of companies own Leave rules, hence Leave
encashment to employees are not provided and shall be accounted as and
when paid, if any.
9. Sales & Purchases:
a) Domestic Sale:
Sales are recognized on dispatch of goods by the company. Sale includes
excise duties, and are net of goods returned and CST/VAT.
b) Export Sales:
Export sale is recognized on receipt of bill of lading and is accounted
on negotiation of document with the bankers as per the foreign exchange
rates prevailing on the date of negotiation.
c) Purchases:
Purchase of Raw Materials and Stores are accounted net of receivable
modvat and VAT.
d) Expenses :
Expenses are accounted net of Service tax paid on various expenses.
Whereas, earlier it was accounted gross(inclusive of service tax paid)
and credit of service tax paid was shown in other income. This change
has no effect on profit / Loss of the year.
10. Prior Period items:
Significant items of income and expenditure, which are relating to
prior accounting period, are accounted in the Profit and Loss account,
under the head prior year adjustments and the expenditure & income
which are not material pertaining to prior period, are shown under the
respective heads of accounts in the Profit & Loss Account.
11. Depreciation:
Depreciation on the fixed assets is provided at the rates and in the
manner specified in Schedule XIV of the Companies Act, 1956, on
straight-line method. The depreciation on Plant and Machinery is
provided on three shifts basis.
12. Events Occurring after Balance Sheet Date:
Events occurring after the date of Balance Sheet are considered up to
the date of adoption of the accounts where material.
13. Borrowing Costs:
Borrowing Costs including Foreign Exchange Fluctuation for qualifying
assets incurred in relation to the acquisition, construction of assets
are capitalized as a part of the cost of such assets up to the date
when such assets are put to use. Other Borrowing costs are charged as
an expense in the year in which these are incurred.
14. Taxation:
The current chargefor income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax
assets and liabilities are recognized for future tax consequences
attributable to the timing difference that result between the profit
offered for income tax and the profits as per the financial statements.
Deferred tax assets and liabilities are measured as per the tax
rates/laws that have been enacted or substantively enacted by the
Balance Sheet date.
15. Contingent Liabilities and Assets :
Contingent liability is recognised and provided for when the company
has present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligations
and of which a reliable estimate can be made. Contingent liability is
disclosed in notes to the accounts in case if obligation is disputed
and the possibility of an outflow of resources is remote. Contingent
assets are not recognised until the realisation of Income is virtually
certain as per views of the management.
16. Segment Reporting :
The Company is primarily engaged in business of furnishing and
construction material, which is governed by the same set of risk and
returns. Hence, there is only one primary segment. The said treatment
is in accordance with the principal enunciated in Accounting Standard
(AS-17) on Segment Reporting.
17. Impairment:
The carrying amount of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment base on internal/external
factor. An impairment loss is recongnised whenever the carrying amount
of an asset exceed it recoverable amount. The recoverable amount is,
grater of assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to their
present value.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article