Mar 31, 2016
Company Overview:
CCL INTERNATIONAL LIMITED bearing CIN L26940DL1991PLC044520 was originally incorporated on 04th June 1991 under the Companies Act, 1956 as âGupta Cements Private Limitedâ .The Company after passing necessary resolution as specified in the Companies Act, 1956, got converted into Public Limited Company. Later the name was changed to âChirawa Cements Limitedâ and finally the name was changed to its present name âCCL International Limitedâ and Certificate for change of name was obtained from ROC on 11th December 2008. The Registered office of the Company is situated at M-4, Gupta Tower, B-1/1, Commercial Complex, Azadpur, New Delhi-110033. The Equity Shares of the Company are listed on Bombay Stock Exchange Limited & Delhi Stock Exchange.
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
A. SIGNIFICANT ACCOUNTING POLICIES
1. Basis of preparation of Financial Statements
The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material aspects, with mandatory Accounting Standards specified in section133 of the Companies Act, 2013 read with Rule 7 of the companies (Accounts) Rules 2014, relevant provisions of the Companies Act and statements issued by the Institute of Chartered Accountants of India. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.
2. Accounting Estimates
The preparation of the financial statements, in conformity with generally accepted accounting principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and the results of operation during the reported period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates which are recognized in the period in which they are determined.
3. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and impairment losses. Cost comprises purchase price, duties, levies and any other cost relating to the acquisition and installation of the asset. Fixed assets under construction are treated as soon the assets become operational and ready for use. Borrowing cost, if any, directly attributable to the acquisition and / or construction of fixed asset, until the date assets are ready for its intended use, are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets.
4. Depreciation
4.1 Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life and is provided on a straight-line basis over the useful life as prescribed in Schedule II to the Act, unless otherwise specified.
4.2 Depreciable amount for assets is the cost of an asset less its estimated residual value.
4.3 In case of additions or deletions during the year, depreciation is computed from the month in which such assets are put to use and up to previous month of sale, disposal or held for sale as the case may be. In case of impairment, depreciation is provided on the revised carrying amount over its remaining useful life.
5. Revenue Recognition
5.1 Revenue from Constructional contracts is recognized on the percentage completion method based on billing schedules agreed with the client on a progressive completion basis. Material & resources supplied by client are included as cost of construction and as revenue at market price. Price escalation claims and additional claims including those under arbitration are recognized as revenue when they are reasonable ascertained.
5.2 Sales are recognized when the significant risks and rewards of ownership in the goods are transferred to the customer and are recognized net of trade discounts, rebates, sales tax and excise duty.
5.3 Revenues/Incomes and Cost /Expenditures are generally accounted on the accrual basis, as they are earned or incurred.
5.4 Dividend income is accounted when the right to receive is established and known.
6. Inventories
The value of various categories of inventories is arrived at as follows:
6.1 Raw material, consumables and stores and spares are valued at the lower of cost or net realizable value.
6.2 Work in progress is valued by taking cost of material used and labour charges incurred up to the stage of constructions and other related cost wherever applicable subject to their estimated net realizable value.
6.3 Finished goods is valued at the lower of cost or net realizable value.
6.4 Company has followed FIFO basis of valuation of its stock sold.
7. Investments
7.1 The cost of an investment includes incidental expenses like brokerage, fees, and duties incurred prior to acquisition.
7.2 Long term investments are shown at cost. A provision for diminution is made to recognize a decline, if any, other than temporary in nature, in the value of long term investments.
7.3 Investment which are intended to be held for less than one year are classified as current investments and are carried at lower of cost and fair value determined on an individual investment basis.
7.4 Advance for share application money are classified under the head âInvestmentâ.
8. Taxation
Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and the tax laws enacted or substantially enacted at the balance sheet date.
Deferred tax assets other than on carried forward losses and unabsorbed depreciation are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Deferred tax asset on account of carried forward losses and unabsorbed depreciation are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.
9. Foreign Currency Transaction
Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transactions. Exchange differences arising on foreign currency transactions are recognized as income or as expenses and accordingly debited or credited to profit and loss account.
10. Retirement and other Employees'' Benefits
10.1 Provident Fund : Provision of Provident Fund is not applicable to the company.
10.2 Gratuity : No provision for gratuity has been made as there is no amount due towards.
11. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are expensed in the period they occur.
12. Joint Ventures
i) Interest in Jointly Controlled Operations
Assets that it controls and the liabilities that it incurs, expenses that it incurs and its share of income that it earns from the joint ventures is recognized in its Separate Financial Statements; and
ii) Interest in Jointly Controlled Entities
Interest in such entity is accounted for as an investment in accordance with Accounting Standard (AS)-13, Accounting for Investment.
13. Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the company''s assets. If any indication exists, then recoverable amount / fair market value of such asset is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount / fair market value. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying amount after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation as if there was no impairment.
14. Contingencies and Provisions
A Provision is recognized when there is a present 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 a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.
15. Related Party Transaction
In related party transactions, all the material information as required by the Accounting Standards (AS) -18 are given to disclose the effect on the financial position and operating results of the Company.
16. Earnings Per Share
Basic Earnings Per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares during the period. To calculate Diluted Earnings Per Share, share application money pending allotment as at the balance sheet date, which is not kept separately and is being utilized in the business is treated as dilutive equity shares.
17. Research and Development
All expenses pertaining to research are charged to the profit and loss account in the year in which they are incurred. All expenses pertaining to development are recognized if, and only if, future economic benefits from the asset are probable otherwise these expenses are charged to the profit and loss account in the year in which they are incurred.
Mar 31, 2014
1. Basis of preparation of Financial Statements
The financial statements are prepared under historical cost convention
on an accrual basis and are in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply with the
Accounting Standards notified under the Companies(Accounting Standards)
Rules, 2006 (as amended and which continue to be applicable in respect
of section133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs)
and the relevant provisions of the Companies Act, 1956. The preparation
of financial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates.
2. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognized in the period in which the results
are known / materialize.
3. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses. Cost comprises purchase price, duties, levies and
any other cost relating to the acquisition and installation of the
asset. Fixed assets under construction are treated as soon the assets
become operational and ready for use. Borrowing cost, if any, directly
attributable to the acquisition and / or construction of fixed asset,
until the date assets are ready for its intended use, are capitalized
as a part of the cost of that asset subject to the provisions of
impairment of the assets.
4. Depreciation
a) Depreciation on fixed assets is provided on the Written down Value
Method at the rates prescribed in Schedule XIV to The Companies Act,
1956.
b) Depreciation on additions to fixed assets is provided on the basis
of date of addition. No depreciation is provided on deletion to fixed
assets in the year to sale.
c) Depreciation is not recorded on capital work-in- progress until
construction and installation are complete and asset is ready for its
intended use.
5. Revenue Recognition
a. Revenue from Constructional contracts is recognized on the
percentage completion method based on billing schedules agreed with the
client on a progressive completion basis. Material & resources supplied
by client are included as cost of construction and as revenue at market
price. Price escalation claims and additional claims including those
under arbitration are recognized as revenue when they are reasonable
ascertained.
b. Revenues/Incomes and Cost/Expenditures are generally accounted on
the accrual basis, as they are earned or incurred.
c. Dividend income is accounted when the right to receive is
established and known.
6. Inventories
The value of various categories of inventories is arrived at as
follows:
i)Raw material, consumables and stores and spares are valued at the
lower of cost or net realizable value.
ii)Work in progress is valued by taking cost of material used and
labour charges incurred upto the stage of constructions and other
related cost wherever applicable subject to their estimated net
realizable value.
iii)Finished goods is valued at the lower of cost or net realizable
value.
iv)Company has followed FIFO basis of valuation of its stock sold.
7. Investments
a) The cost of an investment includes incidental expenses like
brokerage, fees, and duties incurred prior to acquisition.
b) Long term investments are shown at cost. A provision for diminution
is made to recognise a decline, if any, other than temporary in nature,
in the value of long term investments.
c) Investment which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
Advance for share application money are classified under the head
"Investment".
8. Taxation
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961. Deferred income taxes
reflect the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years. Deferred tax is measured based on the tax
rate and the tax laws enacted or substantially enacted at the balance
sheet date.
Deferred tax assets other than on carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
Deferred tax asset on account of carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
9. Foreign Currency Transaction
Foreign currency transaction is recorded at the rates of exchange
prevailing on the date of the transactions. Exchange differences
arising on foreign currency transactions are recognized as income or as
expenses and accordingly debited or credited to profit and loss
account.
10. Retirement and other Employees'' Benefits
Contribution to the P.F. / E.S.I. are made at a pre determined rate and
charged to profit and loss account. Gratuity is accounted for on
pay-as-you- go basis.
11. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized for the period until
the asset is ready for its intended use. A qualifying asset is an asset
that necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are expensed in the period they
occur.
12. Joint Ventures
i) Interest in Jointly Controlled Operations Assets that it controls
and the liabilities that it incurs, expenses that it incurs and its
share of income that it earns from the joint ventures is recognized in
its Separate Financial Statements; and
ii) Interest in Jointly Controlled Entities
Interest in such entity is accounted for as an investment in accordance
with Accounting Standard (AS) -13, Accounting for Investment.
13. Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment of the carrying amount of the
company''s assets. If any indication exists, then recoverable amount /
fair market value of such asset is estimated. An impairment loss is
recognized wherever the carrying amount of the assets exceeds its
recoverable amount/fair market value. After impairment, depreciation is
provided on the revised carrying amount of the assets over its
remaining useful life. A previously recognized impairment loss is
increased or reversed depending on changes in circumstances. However
the carrying amount after reversal is not increased beyond the carrying
value that would have prevailed by charging usual depreciation as if
there was no impairment.
14. Contingencies and Provisions
A provision is recognized when there is a present 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 a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance date. These are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
15. Related Party Transaction
In related party transactions all the material information as required
by the Accounting Standards (AS) -18 are given to disclose the effect
on the financial position and operating results of the Company.
16. Earnings Per Share
Basic Earning Per Share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares during the period. To calculate Diluted
Earning Per Share, share application money pending allotment as at the
balance sheet date, which is not kept separately and is being utilized
in the business is treated as dilutive equity shares.
17. Research and Development
All expenses pertaining to research are charged to the profit and loss
account in the year in which they are incurred. All expenses pertaining
to development are recognized if, and only if, future economic benefits
from the asset are probable otherwise these expenses are charged to the
profit and loss account in the year in which they are incurred.
Mar 31, 2013
Basis of preparation of Financial Statements
The Financial Statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the ICAI and
the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under historical cost convention on
accrual basis and on the assumption of going concern basis. The
accounting policies have been consistently followed by the company and
are consistent with those applied in the previous year.
- Inventories
The value of various categories of inventories is arrived at as
follows:
- Raw material, consumables and stores and spares are valued at the
lower of cost or net realizable value.
- Work in progress is valued by taking cost of material used and labour
charges incurred upto the stage of constructions and other related cost
wherever applicable subject to their estimated net realizable value.
- Finished goods is valued at the lower of cost or net realizable
value.
- Company has followed FIFO basis of valuation of its stock sold.
- Contingencies and Provisions
A provision is recognized when there is a present 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 a
reliable estimate can be made. Provisions are not * discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance date. These are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
- Prior Period Items
Prior period items arisen in the current year as a result of errors or
omission in the preparation of the -financial statements of prior
period(s) are separately disclosed in the profit & loss account.
- Revenue Recognition
- Revenues / Incomes and Cost / Expenditures are generally accounted on
accrual basis, as they are earned or incurred.
- Revenues from sales are recognized on transfer of significant risk
and rewards.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses. Cost comprises purchase price, duties, levies and
any other cost relating to the acquisition and installation of the
asset. Fixed assets under construction are treated as soon the assets
become operational and ready for use. Borrowing cost, if any, directly
attributable to the acquisition and / or construction of fixed asset,
until the date assets are ready for its intended use, are capitalized
as a part of the cost of that asset subject to the provisions of
impairment of the assets.
- Depreciation
Depreciation on fixed assets is charged, on pro- rata, on the Written
Down Value Method in accordance with those specified in Schedule XIV of
The Companies Act, 1956.
- Foreign Currency Transaction
Foreign currency transaction is recorded at the rates of exchange
prevailing on the date of the transactions. Exchange differences
arising on foreign currency transactions are recognized as income or as
expenses and accordingly debited or credited to profit and loss
account.
- Investments
a) The cost of an investment includes incidental expenses like
brokerage, fees, and duties incurred prior to acquisition.
b) Long term investments are shown at cost. Provision for diminution
is made only if, in opinion of the management such a decline other than
temporary.
c) Investment which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
d) Advance for share application money are classified underthe head
"Investment".
- Retirement and other Employees'' Benefits
Contribution to the P.F. / E.S.I, are made at a pre determined rate and
charged to profit and loss account. Gratuity is accounted for on
pay-as-you- go basis.
- Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset subject to the provisions of impairment
of the assets and other borrowing cost are recognized as an expenses in
the period in which they are incurred.
- Related Party Transaction
In related party transactions all the material information as required
by the Accounting Standards (AS) -18 are given to disclose the effect
on the financial position and operating results of the Company.
- Earnings Per Share
Basic Earning Per Share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares during the period. To calculate Diluted
Earning Per Share, share application money pending allotment as at the
balance sheet date, which is not kept separately and is being utilized
in the business is treated as ¦ dilutive equity shares.
- Taxation
Tax expense comprises of Current Tax, Deferred Tax and FBT Provision
for current tax is made on the assessable income at the tax rate
applicable to the relevant assessment year.
Deferred Taxes are recognized for the future tax consequences
attributable to timing differences and their recognition for tax
purpose The effect of a change in tax rates on Deferred Tax Assets /
Liabilities is recognized in income using the tax rates and tax laws
that have been enacted or substantively enacted by balance sheet date.
Deferred Tax Assets are recognized and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such Deferred Tax can be
realized. However, Deferred Tax Assets arising from brought forward and
depreciation are recognized only when there is virtual certainty
supported by convincing evidence that such assets wltt be realized in
foreseeable future.
- Research and Development
All expenses pertaining to research are charged to the profit and loss
account in the year in which they are incurred. All expenses pertaining
to development are recognized if, and only if, future economic benefits
from the asset are probable otherwise these expenses are charged to the
profit and loss account in the year in which they are incurred.
- Joint Ventures
i) Interest in Jointly Controlled Operations
Assets that it controls and the liabilities that it incurs, expenses
that it incurs and its share of income that it earns from the joint
ventures is recognized in its Separate Financial Statements; and
ii) Interest in Jointly Controlled Entities
Interest in such entity is accounted for as an investment in accordance
with Accounting Standard (AS) -13, Accounting for Investment.
- Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment of the carrying amount of the
company''s assets. If any indication exists, then recoverable amount /
fair market value of such asset is estimated. An impairment loss is
recognized wherever the carrying amount of the assets exceeds its
recoverable amount / fair market value. After impairment, depreciation
is provided on the revised carrying amount of the assets over its
remaining useful life. A previously recognized impairment loss is
increased or reversed depending on changes in circumstances. However
the carrying amount after reversal is not increased beyond the carrying
value that would have prevailed by charging usual depreciation as if
there was no impairment.
Mar 31, 2011
Basis of preparation of financial statements
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the ICAI and
the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under historical cost convention on
accrual basis and on the assumption of going concern basis. The
accounting policies have been consistently followed by the company and
are consistent with those applied in the previous year.
Inventories
The value of various categories of inventories is arrived at as
follows:
- Raw material, consumables and stores and spares are valued at the
lower of cost or net realizable value.
- Work in progress is valued by taking cost of material used and labour
charges incurred up to the stage of constructions and other related
cost wherever applicable subject to their estimated net realizable
value.
- Finished goods are valued at the lower of cost or net realizable
value.
- Company has followed FIFO basis of valuation of its stock sold.
Contingencies and Provisions
A provision is recognized when there is a present 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 a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance date. These are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
Prior Period Items
Prior period items arisen in the current year as a result of errors or
omission in the preparation of the financial statements of prior
period(s) are separately disclosed in the profit & loss account.
Revenue Recognition
- Revenues / Incomes and Cost / Expenditures are generally accounted on
accrual basis, as they are earned or incurred.
- Revenues from sales are recognized on transfer of significant risk
and rewards.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses. Cost comprises purchase price, duties, levies and
any other cost relating to the acquisition and installation of the
asset. Fixed assets under construction are treated as soon the assets
become operational and ready for use. Borrowing cost, if any, directly
attributable to the acquisition and / or construction of fixed asset,
until the date assets are ready for its intended use, are capitalized
as a part of the cost of that asset subject to the provisions of
impairment of the assets.
Depreciation
Depreciation on fixed assets is charged, on pro-rata, on the Written
down Value Method in accordance with those specified in Schedule XIV of
The Companies Act, 1956.
Investments
a) The cost of an investment includes incidental expenses like
brokerage, fees, and duties incurred prior to acquisition.
b) Long term investments are shown at cost. Provision for diminution is
made only if, in opinion of the management such a decline other than
temporary.
c) Investment which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
d) Advance for share application money are classified under the head
"Investment".
Retirement and other Employees' Benefits
Contribution to the P.F. / E.S.I, are made at a pre determined rate and
charged to profit and loss account. Gratuity is accounted for on
pay-as-you-go basis.
Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset subject to the provisions of impairment
of the assets and other borrowing cost are recognized as an expense in
the period in which they are incurred.
Related Party Transaction
In related party transactions all the material information as required
by the Accounting Standards (AS) - 18 are given to disclose the effect
on the financial position and operating results of the Company.
Earning Per Share
Basic Earning Per Share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares during the period. To calculate Diluted
Earning Per Share, share application money pending allotment as at the
balance sheet date, which is not kept separately and is being utilized
in the business is treated as dilutive equity shares.
Taxation
Tax expense comprises of Current Tax, Deferred Tax and FBT. Provision
for current tax is made on the assessable income at the tax rate
applicable to the relevant assessment year.
Deferred Taxes are recognized for the future tax consequences
attributable to timing differences and their recognition for tax
purpose .The effect of a change in tax rates on Deferred Tax Assets /
Liabilities is recognized in income using the tax rates and tax laws
that have been enacted or substantively enacted by balance sheet date.
Deferred Tax Assets are recognized and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such Deferred Tax can be
realized. However, Deferred Tax Assets arising from brought forward and
depreciation are recognized only when there is virtual certainty
supported by convincing evidence that such assets will be realized in
foreseeable future.
Research and Development
All expenses pertaining to research are charged to the profit and loss
account in the year in which they are incurred. All expenses pertaining
to development are recognized if, and only if, future economic benefits
from the asset are probable otherwise these expenses are charged to the
profit and loss account in the year in which they are incurred.
Joint Ventures
i) Interest in Jointly Controlled Operations
Assets that it controls and the liabilities that it incurs, expenses
that it incurs and its share of income that it earns from the joint
ventures is recognized in its Separate Financial Statements; and
ii) Interest in Jointly Controlled Entities
Interest in such entity is accounted for as an investment in accordance
with Accounting Standard (AS) - 13, Accounting for Investment.
Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment of the carrying amount of the
company's assets. If any indication exists, then recoverable amount /
fair market value of such asset is estimated. An impairment loss is
recognized wherever the carrying amount of the assets exceeds its
recoverable amount / fair market value. After impairment, depreciation
is provided on the revised carrying amount of the assets over its
remaining useful life. A previously recognized impairment loss is
increased or reversed depending on changes in circumstances. However
the carrying amount after reversal is not increased beyond the carrying
value that would have prevailed by charging usual depreciation as if
there was no impairment.
Mar 31, 2010
Basis of preparation of financial statements
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the 1CAI and
the relevant provisions of the Companies Act, 1956. The financial
statements have been.prepared under historical cost convention on
accrual basis and on the assumption of going concern basis. The
accounting policies have been consistently followed by the company and
are consistent with those applied in the previous year.
Inventories
The value of various categories of inventories is arrived at as
follows:
- Raw material, consumables and stores and spares are valued at the
lower of cost or net realizable value.
- Work in progress is valued by taking cost of material used and labour
charges incurred upto the stage of constructions and other related cost
wherever applicable subject to their estimated net realizable value. -
- Finished goods are valued at the lower of cost or net realizable
value.
- Company has followed FIFO basis of valuation of its stock sold.
Contingencies and Provisions
A provision is recognized when there is a present 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 a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance date. These are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
Prior Period Items
Prior period items arisen in the current year as a result of errors or
omission in the preparation of the - financial statements of prior
period(s) are separately disclosed in the profit & loss account.
Revenue Recognition
- Revenues / Incomes and Cost / Expenditures are generally accounted on
accrual basis, as they are earned or incurred.
- Revenues from sales are recognized on transfer of significant risk
and rewards.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses. Cost comprises purchase price, duties, levies and
any other cost relating to the acquisition and installation of the
asset. Fixed assets under construction are treated as soon the assets
become operational and ready lor use. Borrowing cost, if any. directly
attributable to the acquisition and / or construction of fixed asset,
until the date assets are ready for its intended use, are capitalized
as a part of the cost of that asset subject to the provisions of
impairment of the assets.
Depreciation
Depreciation on fixed assets is charged, on pro-rata, on the Written
Down Value Method in accordance with those specified in Schedule XIV of
The Companies Act, 1956.
Foreign Currency Transaction
Foreign currency transaction is recorded at the rates of exchange
prevailing on the date of the transactions. Exchange differences
arising on foreign currency transactions are recognized as.income or as
expenses and accordingly debited or credited to profit and loss
account.
Investments
(a) The cost of an Investment includes incidental expenses like
brokerage, fees and duties incurred prior to acquisition.
(b) Long term investments are shown at cost. Provision for diminution
is made only if, in the opinion of the management such a decline is
other than temporary.
(c) Investment which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
(d) Advance for share application money are classified under the head
"Investment"..
Retirement and other Employees Benefits
Contribution to the P.F. / E.S.I, are made at a pre determined rate and
charged to profit and loss account. Gratuity is accounted for on
pay-as-you-go basis.
Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset subject to the provisions, of impairment
of the assets and other borrowing cost are recognized as an expenses in
the period in which they are incurred.
Related Party Transaction
In related party transactions all the material information as required
by the Accounting Standards (AS) - 18 are given to disclose the effect
on the financial position and operating results of the Company.
Earning Per Share
Basic Earning Per Share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the
weighted average number of equity shares during the period. To
calculate Diluted Earning Per Share, share application money pending
allotment as at the balance sheet date, which is not kept separately
and is being utilized in the business is treated as dilutive equity
shares.
Taxation
Tax expense comprises of Current Tax, Deferred Tax and FBT. Provision
for current tax is made on the assessable income at the. tax rate;
applicable to the relevant assessment year. Deferred Taxes are
recognized for the future tax consequences attributable to timing
differences and their recognition for tax purpose .The effect of a
change in tax rates on Deferred Tax Assets / Liabilities is recognized
in income using the tax rates and tax laws that have been enacted or
substantively enacted by balance sheet date.
Deferred Tax Assets are recognized and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such Deferred Tax can be
realized. However, Deferred Tax Assets arising from brought forward and
depreciation are recognized only when there is virtual certainty
supported by convincing evidence that such assets will - be realized in
foreseeable future.
All expenses pertaining to research are charged to the profit and loss
account in the year in which they are incurred. All expenses pertaining
to development are recognized if, and only if, future economic benefits
from the asset are probable otherwise these expenses are charged to the
profit and loss account in the year in which they are incurred.
Joint Ventures
i) Interest in Jointly Controlled Operations
Assets that it controls and the liabilities that it incurs, expenses
that it incurs and its share of income that it earns from the joint
ventures is recognized in its Separate Financial Statements; and
ii) Interest in Jointly Controlled Entities
Interest in such entity is accounted for as an investment in accordance
with Accounting Standard (AS) - 13, Accounting for Investment.
Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment of the carrying amount of the
companys assets. If any indication exists, then recoverable . amount
/ fair market value of such asset is estimated. An impairment loss is
recognized wherever the carrying amount of the assets exceeds its
recoverable amount / fair market value. After impairment, depreciation
is provided on the revised carrying amount of the assets over its
remaining useful life. A previously recognized impairment loss is
increased or reversed depending on changes in circumstances. However
the carrying amount after reversal is not increased beyond the carrying
value that would have prevailed by charging usual depreciation as if
there was no impairment.
Mar 31, 2009
Basis of preparation of financial statements
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the 1CA1 and
the relevant provisions.of the Companies Act, 1956. The financial
statements have been prepared under historical cost convention on
accrual basis and on the assumption of going concern basis. The
accounting policies have been consistently followed by the company and
are consistent with those applied in the previous year.
Inventories
The value of various categories of inventories is arrived at as
follows:
o Raw material, consumables and stores and spares are valued at the
lower of cost or net realizable value. û Work in progress is valued by
taking cost of material used and labour charges incurred upto the stage
of constructions and other related cost wherever applicable subject to
their estimated net realizable value.
à Finished goods is valued at the lower of cost or net realizable
value.
à Company has followed FIFO basis of valuation of its stock sold. ë
Shares are valued at Cost Price.
Contingencies and Provisions
A provision is recognised when there is a present 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 a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance date. These are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
Prior Period Items
Prior period items arisen in the current year as a result of errors or
omission in the preparation of the financial statements of prior
period(s) are separately disclosed in the profit & loss account.
Revenue Recognition
Revenues / Incomes and Cost / Expenditures are generally accounted on
accrual basis, as Ihey are earned or incurred.
à Revenues from sales are recognized on transfer of significant risk
and rewards.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses. Cost comprises purchase price, duties, levies and
any other cost relating to the acquisition and installation of the
asset. Fixed assets under construction are treated as soon the assets
become operational and ready for use. Borrowing cost, if any, directly
attributable to the acquisition and / or construction of fixed asset,
until the date assets are ready for its intended use, are capitalised
as a part of the cost of that asset subject to the provisions of
impairment of the assets.
Depreciation
Depreciation on fixed assets is charged, on pro-rata, on the Written
Down Value Method in accordance with those specified in Schedule XIV of
The Companies Act, 1956.
Foreign Currency Transaction
Foreign currency transaction is recorded at the rates of exchange
prevailing on the date of the transactions. Exchange differences
arising on foreign currency transactions are recognized as income or as
expenses and accordingly debited or credited to profit and loss
account.
Investments
(a) The cost of an Investment includes incidental expenses like
brokerage, fees and duties incurred prior to acquisition.
(b) Long term investments are shown at cost. Provision for diminution
is made only if, in the opinion of the management such a decline is
other than temporary. Ã.
(c) Investment which are intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
fair value determined on an individual investment basis.
(d) Advance for share application money are classified under the head
"Investment"..
Retirement and other Employees Benefits
Contribution to the P.F. / E.S.I, are made at a pre determined rate and
charged to profit and loss account. Gratuity is accounted for on
pay-as-you-go basis.
Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalised as a
part of the cost of that asset subject to the provisions of impairment
of the assets and other borrowing cost are recognized as an expenses in
the period in which they are incurred.
Related Party Transaction
In related party transactions all the material information as required
by the Accounting Standards (AS) - 18 are given to disclose the effect
on the financial position and operating results of the Company.
Earning Per Share
Basic Earning Per Share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares during the period. To calculate Diluted
Earning Per Share, share application money pending allotment as at the
balance sheet date, which is not kept separately and is being utilised
in the business is treated as dilutive equity shares.
Taxation
Tax expense comprises of Current Tax, Deferred Tax and FBT. Provision
for current tax is made on the assessable income at the tax rate
applicable to the relevant assessment year.
Deferred Taxes are recognised for the future tax consequences
attributable to timing differences and their recognition for tax
purpose .The effect of a change in tax rates on Deferred Tax Assets /
Liabilities is recognised in income using the tax rates and tax laws
that have been enacted or substantively enacted by balance sheet date.
Deferred Tax Assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such Deferred Tax can be
realized. However, Deferred Tax Assets arising from brought forward and
depreciation are recognised only when there is virtual certainty
supported by convincing evidence that such assets will be realized in
foreseeable future.
Fringe Benefit Tax is measured at the amount expected to be paid to the
tax authorities in accordance with Income Tax Act, 1961.
All expenses pertaining to research are charged to the profit and loss
account in the year in which they are incurred. All expenses pertaining
to development are recognized if, and only if, future economic benefits
from the asset are probable otherwise these expenses are charged to the
profit and loss account in the year in which they are incurred
Joint Ventures
i) Interest in Jointly Controlled Operations
Assets that it controls and the liabilities that it incurs, expenses
that it incurs and its share of income that it earns from the joint
ventures is recognized in its Separate Financial Statements; and
ii) Interest in Jointly Controlled Entities
Interest in such entity is accounted for as an investment in accordance
with Accounting Standard (AS) - 13, Accounting for Investment.
Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment of the carrying amount of the
companys assets. If any indication exists, then recoverable amount /
fair market value of such asset is estimated. An impairment loss is
recognized wherever the carrying amount of the assets exceeds its
recoverable amount / fair market value. After impairment, depreciation
is provided on the revised carrying amount of the assets over its
remaining useful life. A previously recognized impairment loss is
increased or reversed depending on changes in circumstances. However
the carrying amount after reversal is not increased beyond the carrying
value that would have prevailed by charging usual depreciation as if
there was no impairment.
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