Mar 31, 2014
1. Corporate Information
The company is in the business of Infrastructure Development and
Construoiion acuities.
2. Significant accounting policies
2.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the General Accepted Aocounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Company (Accounting Standards) Rules 2006 (as amended) and the
relevant Companies Act 1956. The financial statements have been
prepared an accrual bass under the historical cost convention. The
accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year.
2.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenditure during
the year. The Management believes that the estimates used in
preparation of Ihe financial statements are prudent and reasonable.
Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognised in the
periods in which the results are known/materialise.
2.3 Inventorios
Stock is valued at cost or net realisable value whichever is lower.
2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits and banks.
2.5 Cash flow statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.
2.6 Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
2.7 Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards at ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax.
Income from services
Revenues from contracts priced on a time and material basis are
recognised when services are rendered and related coats are incurred
Revenues from turnkey contracts, which are generally time bound fixed
price contracts, are recognised over the life of the contract using the
proportionate completion method with contract costs determining the
degree of completion. Foreseeable losses on such contracts are
recognised when probable.
Revenues from maintenance contacts are recognised pro-rata over the
period of the contract.
2.8 Other Income
lnterest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
2.9 Tangible fixed assets
Fixed Assets are stated at their original cost of acquisition including
taxes, duties, freight and other incidental expenses related to
acquisition and installation of the concerned assets.
2.10 Intangible assets
Research and Development - Revenue Expenditure on Research and
Development is charged against the profit of the year in which it is
incurred. Capital expenditure on Research and Development shown as an
addition to Fixed Assets.
2.11 Foreign currency transactions and translations
Foreign Currency Transactions - Foreign Currency Transactions are
accounted for at the exchange rate prevaling on the date of such
transactions where such transactions are not covered by Forward
Contracts. Gains end Loss arising out of the fluctuation of exchange
rate are accounted for at the time Of realizations and payments.
Exchange differences relating to long term foreign currency monetary
items to the extent they are used for financing of acquisition of fixed
assets are added to the cost of the fixed assets.
2.12 Government grants, subsidies and export incentives
Government grants and subsidies are recognised when there is reasonable
assurance that the Company will comply with the conditions attached to
them and the grants/subsidy will be received. Government grants whose
primary condition is that the Company should purchase construct or
otherwise acquire capital assets presented by deducting them from the
carrying value of the assets. The grant is recognised as income over
the life of a depreciable asset by way of a reduced depreciation
charge.
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receiving the same.
Government grants in the nature of promoters'' contribute like
investment subsidy, where no repayment is ordinarily expected in
respect thereof, are treated as capital reserve. Government grants in
the form of non-monetary assets given at a concessional rate, are
recorded on the basis of their acquisition cost. In case the
non-monetary asset is given free of cost the grant is recorded at a
nominal value.
Other government grants and subsidies are recognised as income over the
periods necessary to match them with the costs for which they are
intended to compensate, on a systematic basis.
2.13 Investments
These are valued at cost. Gain/Loss on these investments are accounted
at the time of sale/disposal.
2.14 Employee benefits
Provision for Retirement Benefits - Liabilities in respect of
Retirements Benefits to employees are accounted for on actual payment
basis. No provision is being made for liabilities on actuarial
valuation as required by Accounting Standard AS 15.
2.15 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction/development of the qualifying asset upto the data of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
2.16 Segment reporting
The company is engaged in infrastructure development and construction
business which are as per Accounting Standard 17 (AS -17) "Segment
Reporting issued by the Institute of Chartered Accountants of India, is
considered the only reportable business segment of the Company.
2.17 Leases
Lease arrangements where the risks and rewards incidental to ownership
of an asset substantially vest with the lessor are recognised as
operating leases. Lease rentals under operating leases are recognised
in the statement of Profit and Loss on a straight-line basis.
2.10 Earnings per Share
Basic earnings per share is computed by dividing the profit/(loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the
profit/(loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a late date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares) Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits/reverse share splits and bonus shares, as
appropriate.
2.19 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternative Tax (MAT) paid in accordance with the tax Iaws,
which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow
to the Company.
Deferred tax is recognised on timing differences, being the differences
between the Taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities ere recognised for all timing differences Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainly that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
Current and deferred tax relating to items directly recognised in
equity are recognised in equity and not in the Statement of Profit and
Loss.
2.20 Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charges to
the Statement of Profit and Loss unless a product''s technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
2.21 Impairment of assets
The carrying values of assets/cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised if the carrying amount of these assets exceeds
their recoverable amount. The recoverable amount is the greater of the
net selling price and their value in use. Value in use is arrived at by
discounting the future cash flows to their present value based on an
appropriate discount factor. When there is indication that an
impairment Ioss recognised for an asset in earlier accounting periods
no longer exists or may have decreased, such reversal of impairment
loss is recognised in the Statement of Pofit and Loss, except in case
of revalued assets.
2.22 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events 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 (excluding refinement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. Those are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
2.23 Share issues expenses
Share issue expenses and redemption premium are adjusted against the
Securities Premium Account as permissible under Section 78 (2) of the
Companies Act, 1956 to the extent balance is available for utilisation
in the Securities Premium Account. The balance of share issue expenses
is earned as an asset and is amortised over a period of 5 years from
the date of the issue of shares.
2.24 Insurance claims
Insurance claims are accounted for on the basis of claims
admitted/expected to be admitted and to the extent that there is no
uncertainty in receiving the claims.
2.25 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing/utilising the credits.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared 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 the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management tc make estimates and assumptions
considered in the reported amounts of assets and liabilities (includinc
contingent liabilities) and the reported income and expenses during the
year. The Management believes thai the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Stock is valued at cost or net realisable value whichever is lower.
1.4 Cash and cash equivalents {for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits and banks.
1.5 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of pasl
dr fiifdre cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based
on the available information.
1.6 Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV tc the Companies Act, 1956
1.7 Revenue recognition
sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards o ownership to the i buyer, which
generally coincides with the delivery of goods to customers.
Income from services
Revenues from contracts priced on a time and material basis are
recognised when services are rendered and related costs are incurred.
Revenues from turnkey contracts, which are generally time bound fixed
price contracts, are recognised over the life of the contract using the
proportionate completion method, with contract costs determining the
degree of completion. Foreseeable losses on such contracts are
recognised when probable.
Revenues from maintenance contracts are recognised pro-rata over the
period of the contract.
1.8 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive il is established.
1.9 Tangible fixed assets
Fixed Assets are stated at their original cost of acquisition including
taxes, duties, freight and other incidental expenses related to
acquisiton and installation of the concerned assets.
1.10 Intangible assets
Research and Development - Revenue Expenditure on Research and
Development is charged against the profit of the year in which it is
incurred. Capital expenditure on Research and Development is shown as
an addition to Fixed Assets
1.11 Foreign currency transactions and translations
Foreign Currency Transactions - Foreign Currency Transactions are
accounted for at the exchange rate prevaling on the date of such
transactions where such transactions are not covered by Forward
Contracts. Gains and Loss arising out of the fluctuation of exchange
rate are accounted for at the time of realizations and payments.
Exchange differences relating to long term foreign currency monetory
items to the extent they are used for financing of acquisition of fixed
assets are added to the cost of the fixed assets.
1.12 Government grants, subsidies and export incentives
Government grants and subsidies are recognised when there is reasonable
assurance that the Company will comply with the conditions attached to
them and the grants / subsidy will be received. Government grants whose
primary condition is that the Company should purchase, construct or
otherwise acquire capital assets are presented by deducting them from
the carrying value of the assets. The grant is recognised as over the
life of a depreciable asset by way of a reduced depreciation charge.
Export benefits are accounted for in the year of exports based on
eligibility and when there is no utfoeftaiRty in receiving the same.
Government grants in the nature of promoters'' contribution like
investment subsidy, where no repay''megUg ordinarily expected in respect
thereof, arelreated as capital reserve. Government grants in the form
of nfift; monetary assets, given at a concessional rate, are recorded
on the basis of their acquisition cost. In case the non-monetary asset
is given free of cost, the grant is recorded at a nominal value.
Other government grants and subsidies are recognised as income over the
periods necessary to match them with the costs for which they are
intended to compensate, on a systematic basis,
FORDEUW
1.13 Investments
These are valued at cost. Gain/Loss on these investments are accounted
at the time of sale/disposal.
1.14 Employee benefits
Provision for Retirement Benefits - Liabilies in respect of Retirements
Benefits to employees are accounted for on actual payment basis. No
provision is being made for liabilities or actuarial valuation as
required by Accounting Standard AS 15.
1.15 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, atlocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.16 Segment reporting
The company is engaged in infrastructure development and construction
business which are as per Accounting Standard 17 (AS -17) "Segment
Reporting issued by the Institute of Chartered Accountants of India, is
considered the only reportable business segment of the Company.
1.17 Leases
Lease arrangements where the risks and rewards incidental to ownership
of an asset substantially vest with the lessor are recognised as
operating leases. Lease rentals under operating leases are recognised
in the Statement of Profit and Loss on a straight-line basis.
1.18 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect extraordinary items, if any)
by the weighted average number of equity shares outstanding during
thenar; Diluted earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effecJTpf extraordinary items,
if any) as adjusted for dividend, interest and other charges to expense
or income relajifig to the dilutive potential equity shares, by the
weighted average number of equity shares consideredr deriving basic
earnings per share and the weighted average number of equity shares
which could have beejr issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to''be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate. FOR DElMATWRRASTRljCTlIP,.
1.19 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly. MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flew to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income 3nd the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other ilems only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
readability.
Current and deferred tax relating to items directly recognised in
equity are recognised in equity and not in the Statement of Profit and
Loss.
1.20 Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product''s technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
1.21 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are revito impairment. If any indication of impairment
exists, the recoverable amount of such assets is and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable arHoTiht. The recoverable amount is the
greater of the net selling price and their value tn use. Value in use
is amyhd discounting the future cash flows to their present
value based on an appropriate discount factor. Wfyin there is
indication that an impairment loss recognised for an asset in earlier
accounting periods no may have decreased, such reversal
of impairment loss is recognised tn the Statement of Profit
except in esse of revalued assets.
1.22 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the estimate tan be made. Provisions
(excluding retirement benefits) are to Frieff determined based on the
best estimate required to settle the obligation at the Balance Sheet
date. Thise at reviewed at each Balance Sheet date and adjusted to
reflect the current best estimates. in the Notes.
1.23 Share issues expenses
Share issue expenses and redemption premium are adjusted against the
Securities Premium Account as permissible under Section 78(2) of the
Companies Act, 1956: to the extent balance is available for utilisation
in the Securities Premium Account. The balance of share issue expenses
is carried as an asset and is amortised over a period of 5 years from
the date of the issue of shares.
1.24 Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
1.25 Service tax input credit
Service lax input credit is accounted for in the books in
feiwoyiWfig service received is accounted and when there
is no uncertainty.
Mar 31, 2012
1.1 Basis of accounting and preparation of Fnancial statements
The financial statements of the Company have been prepared 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 the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actural results and the estimates are recognised in the periods in
which the results are known/materialise.
1.3 Inventories
Stock is vaiued at cost or net realizable value whichever is lower
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks.
1.5 Cash flow statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The Cash flows
from operating, investing and financing activities of the company are
segregated based on the available information.
1.6 Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
1.7 Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax.
1.8 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.9 Tangible fixed assets
Fixed Assets, are stated at their original cost of acquisition
including taxes, duties, freight and other incidental expenses related
to acquisition and installation of the concerned assets.
1.10 Intangible assets
Research and Development-Revenue expenditure on Research and
Development is charged against the profit of the year in which it is
incurred. Capital Expenditure on Research and Development is shown as
an addition to the Fixed Assets.
1.11 Foreign currency transactions and translations
Foreing Currency transactions:- Foreign Currency transactions are
accounted for at the exchange rate prevating on the date of such
transactions where such transactions are not covered by Forward
Contracts. Gains/Loses arising out of the fludtuation to the exchange
rate are accounted for at the time of realization/payments. Exchange
differences relating to long term foreign currency monetary items, to
the extent they are used for financing the acquisition of fixed assets
are added to the cost of such fixed assets.
1.12 Government grants, subsidies add export incentives
Government grants and subsidies are recognised when there is reasonable
assurance that the Company will comply with the conditions attached to
them and the grants / subsidy will be received, Government grants whose
primary condition is that the Company should purchase, construct or
otherwise acquire capital assets are presented by deducting them from
the carrying value of the assets. The giant is recognised as income
over the life of a depreciable asset by way of a reduced depreciation
charge.
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receding the same.
Government grants in the nature of promoters'' contribution like
investment subsidy, where no repayment is ordinarily expected in
respect thereof, are treated as capital reserve, Government granis in
the form of non-monetary assets, given at a concessional rate, are
recorded on the basis of their acquistion cost. In case the
non-monetary asset is given free of cost, the grant is recorded at a
nomrnal value.
Other government grants and subsidies are recognised as income over the
periods necessary to match them with the costs for which they are
intended to compensate, on a systematic basis.
1.13 investments
These are valued at cost. Gain/Loss on these investments are accounted
for at the time of sale/disposal.
1.14 Employee benefits
Provision for Retirement Benefits:- Liabilities in respect of
Retirement Benefits to employees are accounted for on actual payment
basis. No provision is being made for Liabilities on actuarial
valuation as required by Accounting Standard AS 15.
1.15 Borrowing costs
Borrowing costs mclude interest, amortisation of ancillary costs
incurred and exchange differences arising from foreig currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the statement of profit and loss over the tenure of the
loan. Borrowing costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.16 Segment reporting
The Company is engaged in Trading business which, as per Accounting
Standard 17(AS-17) "Segment Reporting issued by the institute of
Chartered Accountants of India, is considered the only reportable
business segment of the company.
1.17 Leases
Lease arrangements where the risks and rewards incidental to ownership
of an asset substantially vest with the lessor are recognised as
operating ieases. Lease rentails under operating leases are recognised
in the Statement or Profit and Loss on a straight-line basis.
1.18 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extra ordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/(loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity equity shares are deemed to be converted as at the
beginning of the period, unless they have been issued at a later date.
The dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits/ reverse share splits and bonus shares, as
appropriate.
1.19 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
ruture economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that orignate in
one period and are capable of reversal in one or more subsequent
periods Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unobserved depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainly exists that
sufficient future taxable income will be available against which these
can be realised Deferred iax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet eate for their
realisabrlily.
Current and deferred tax relating to items directly recognised in
equity are recognised in equity and not in the Statement of Profit and
Loss.
1.20 Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss Development costs of products are also charged to
ihe Statement of Profit and Loss unless a product''s technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
1.21 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists the recoverable amount of such assets is estimated and
impairment is recognised, it the carrying amount of these assets
exceeds their, recoverable amount. The recoverable amount is the
greater of the net selling price and their value in use. Value in use
is arrived at by discounting the future cash flows to ther present
value based on an appropriate discount factor When there is indication
that an impairment loss recognised for an asset in eariier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
1.22 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events 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 (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates, Contingent liabilities
are disclosed in the Noies.
1.23 Share issues expenses
Share issue expenses and redemption premium are adjusted against the
Securities Premium Account as permissible under Section 78(2) of the
Companies Act, 1956, to the extent balance is available for utilisation
in the Securities Premium Account. The balance of share issue expenses
is carried as an asset and is arrortised over a period of 5 years from
the date of the issue of shares.
1.24 Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
1.25 Service lax Input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilising the credits.
Mar 31, 2011
A) STATEMENT OF ACCOUNTING POLICIES:
These accounts are prepared under the historical cost convention and
materially comply with the mandatory accounting standards used by the
Institute of Chartered Accountants of India (ICAI). The significant
accounting policies followed by the Company are stated below
1) Revenue Recognition
The Books of accounts are maintained on accrual basis expect where
stated otherwise.
2) Sales
Sales are exclusive of excise duty and sales tax7 wherever applicable.
3) Fixed Assets
(i) Fixed Assets, are stated at their original cost of acquisition
including taxes, duties, freight and other incidental expenses related
to acquisition and installation of the concerned assets.
(ii) Depreciation on fixed assets is provided on Straight Line Method
in accordance with the rates specified in schedule XTV of the Companies
Act, 1956.
4) Investments
These are valued at cost. Gain/Loss on these investments are accounted
for at the time of sale /disposal.
5) Incidental Expenditure during Construction
All indirect expenses incurred during Project Implementation including
interest cost on funds deployed for the project as well as trial run
expenses are treated as Incidental expenditure during Construction and
subsequently capitalized.
6) Inventories
Stock is valued at cost or net realizable value whichever is lower.
7) Provision for Retirement Benefits
The liabilities in respect of Retirement Benefits to employee are
accounted for on actual payment basis. No provision is being made for
liabilities on actuarial valuation.
Mar 31, 2010
These accounts are prepared under the historical cost convention and
materially comply with the mandatory accounting standards used by the
Institute of Chartered Accountants of India (ICAI). The significant
accounting policies followed by the Company are stated below:
1) Revenue Recognition
The Books of accounts are maintained on accrual basis expect where
stated otherwise.
2) Sales
Sales are exclusive of excise duty and sales tax.
3) Fixed Assets
(i) Fixed Assets, are stated at their original cost of acquisition
including taxes, duties, freight and other incidental expenses related
to acquisition and installation of the concerned assets.
(ii) Depreciation on fixed assets is provided on Straight Line Method
in accordance with the rates specified in schedule XIV of the Companies
Act, 1956.
4) Investments
These are valued at cost. Gain/Loss on these investments are accounted
for at the time of sale /disposal.
5) Incidental Expenditure during Construction
All indirect expenses incurred during Project Implementation including
interest cost on funds deployed for the project as well as trial run
expenses are treated as Incidental Expenditure during Construction and
subsequently capitalized.
6) Inventories
Stock is valued at cost or net realizable value whichever is lower.
7) Provision for Retirement Benefits
The liabilities in respect of Retirement Benefits to employee are
accounted for on actual payment basis. No provision is being made
(Letter not visibal) actuarial valuation.
Mar 31, 2008
These accounts are prepared under the historical cost convention and
materially comply with the mandatory accounting standards used by the
Institute of Chartered Accountants of India (ICAI). The significant
accounting policies fbiowed by the Company are stated below:
1) Revenue Recognition
The Books of accounts are maintained on accrual basis expect where
stated otherwise.
2) Sales
Sales are exclusive of excise duty and sales tax,
3) Fixed Assets
(i) Fixed Assets, are stated at their original cost of acquisition
includingtaxes, duties, freight and other incidental expenses related to
acquisition and installation of the concerned assets.
(ii) Depreciation on fixed assets is provided on Straight Line Method
in accordance with the rates specified in schedule XTV of the Companies
Act, 1956.
4) Investments
These are valued at cost Gain/Loss on these investments are accounted
for at the time of sale /disposal.
5) Incidental Expenditure during Construction
All indirect expenses incurred during Project Implementation including
interest cost on funds deployed for the project as well as trial run
expenses are treated as Incidental Expenditure during Construction and
subsequent capBafcred.
6) Inventpries
Stock is valued at cost or net realizable value whichever is lower.
7) Provision for Retirement Benefits
The liabilities In respect of Retirement Benefits to employee are
accounted for on actual payment basis. No provision is being made for
fiabSWes on actuarial valuation.
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