Mar 31, 2015
1 Corporate Information:
The Company is engaged in Trading of Agro/Energy Commodities having
global presence. The commodities traded include Rice, Wheat, Sugar,
Maize, Soya meal, Barley, Pulses, Coal ,Garment and Textile Products
.The company has maintained long
and sustained relationships with its clients across the globe due to
its quality products and efficient services.
(a) 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 referred to in
Section 133 of the Companies Act 2013 read with rule 7 of the Companies
(Accounts) Rules , 2014. 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.
(b) 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
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
(c) Cash and cash equivalents
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
(d) 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.
(e) Tangible fixed assets
Tangible Fixed assets are carried at cost less accumulated depreciation
and impairment losses, if any. The company has capitalized all costs
relating to acquisition and installation of tangible fixed assets.
Capital work in progress includes assets that are not ready for their
intended use and are carried at cost and their related incidental
expenses.
(f) Intangible fixed assets
Intangible assets are carried at cost less accumulated amortization and
impairment losses, if any. The company has capitalized all costs
relating to acquisition and installation of intangible fixed assets.
(g) Depreciation and amortization
Depreciation on fixed assets is provided in accordance with the
requirement of Schedule II of Companies Act 2013, except on intangible
assets. Amortization on intangible assets has been provided in
compliance of Accounting Standard AS-26.
(h) Revenue Recognition
The accrual basis of accounting has been followed in respect of income
and expenditure. Sales figures are net of sales tax. The Export Sale is
recognized at the time of issuance of Bill of Lading. Interest income
is recognized on an accrual basis on time proportionate basis, based on
interest rates implicit in the transaction. Dividend income is
recognized on receipt basis.
(i) Taxes on income
The Deferred tax expense or benefit is recognized on timing differences
being the difference between taxable incomes and accounting incomes
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
(j) Foreign Currency Transactions
(i) Foreign Currency transactions during the year are recorded at the
rate of exchange prevailing on the date of transaction. Foreign
Currency monetary assets and liabilities are translated into Rupees at
the rate of exchange prevailing on the date of the Balance Sheet except
investment in shares of subsidiary company which has been carried at
historic cost. All Exchange differences are dealt with in the Profit
and Loss Account except for investment in overseas subsidiary. Foreign
Currency monetary items are reported using the closing rate.
(ii) Where the company has entered into forward exchange contracts, the
difference between the forward rate and spot rate at the date of the
contract is recognized in the statement of the profit and loss over the
life of the contract and difference between the spot rate at the date
of contract and the exchange rate prevailing on the balance Sheet date
is recognized as per Accounting Standard (AS) -11 (Revised) issued by
the Institute of Chartered Accountants of India. Any Profit or Loss
arising on cancellation or renewal of forward exchange contract is
recognized as Income or as expenses for the year.
(k) Inventories
Items of Inventories are valued at cost or net realizable value,
whichever is lower using FIFO method.
(l) Investments
Long term investments are stated at cost less provision for other than
temporary diminution in value. Current investments are stated at lower
of cost and fair value.
(m) Provisions and contingencies
A provision is recognized 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 Notes.
(n) Employee benefit
(i) ShortÂterm employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered. (ii) Defined Benefit Plans:
- Leave Salary of employees on the basis of actuarial valuation as per
AS 15.
- Gratuity Liability on the basis of actuarial valuation as per AS 15.
(iii) Defined Contribution Plans:
Provident fund & ESI on the basis of actual liability accrued and paid
to authorities.
(o) Export benefit/ incentives
Export Entitlements in respect of the exports made under various scheme
are recognized in the Profit and Loss Account when the right to receive
credit as per the terms of the Schemes are established.
(p) Earning per share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Diluted
Earnings per share are not different from basic earning per share.
Mar 31, 2014
(a) 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.
(b) 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
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
(c) Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
(d) 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.
(e) Tangible fixed assets
Tangible Fixed assets are carried at cost less accumulated depreciation
and impairment losses, if any.The company has capitalized all costs
relating to acquisition and installation of tangible fixed assets.
Capital work in progress includes assets that are not ready for their
intended use and are carried at cost and their related incidental
expenses.
(f) Intangible fixed assets
Intangible assets are carried at cost less accumulated amortization and
impairment losses, if any. The company has capitalized all costs
relating to acquisition and installation of intangible fixed assets.
(g) Depreciation and amortization
Depreciation on fixed assets is provided using straight-line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956, except on intangible assets, which are not specified in the
above schedule. Amortization on intangible assets has been provided in
compliance of Accounting Standard AS-26.
(h) Revenue Recognition
The accrual basis of accounting has been followed in respect of income
and expenditure. Sales figures are net of sales tax.The Export Sale is
recognized at the time of issuance of Bill of Lading. Interest income
is recognized on an accrual basis on time proportionate basis, based on
interest rates implicit in the transaction. Dividend income is
recognized on receipt basis.
(i) Taxes on income
The Deferred tax expense or benefit is recognized on timing differences
being the difference between taxable incomes and accounting incomes
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
(j) Foreign Currency Transactions
(i) Foreign Currency transactions during the year are recorded at the
rate of exchange prevailing on the date of transaction. Foreign
Currency monetary assets and liabilities are translated into Rupees at
the rate of exchange prevailing on the date of the Balance Sheet except
investment in shares of subsidiary company which has been carried at
historic cost. All Exchange differences are dealt with in the Profit
and Loss Account except for investment in overseas subsidiary. Foreign
Currency monetary items are reported using the closing rate.
(ii) Where the company has entered into forward exchange contracts, the
difference between the forward rate and spot rate at the date of the
contract is recognized in the statement of the profit and loss over the
life of the contract and difference between the spot rate at the date
of contract and the exchange rate prevailing on the balance Sheet date
is recognized as per Accounting Standard (AS) -1 1 (Revised) issued by
the Institute of Chartered Accountants of India. Any Profit or Loss
arising on cancellation or renewal of forward exchange contract is
recognized as Income or as expenses for the year.
(k) Inventories
Items of Inventories are valued at cost or net realizable value,
whichever is lower.
(l) Investments
Long term investments are stated at cost less provision for other than
temporary diminution in value. Current investments are stated at lower
of cost and fair value.
(m) Provisions and contingencies
A provision is recognized 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 Notes.
(n) Employee benefit
(i) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(ii) Defined Benefit Plans:
- Leave Salary of employees on the basis of actuarial valuation as
per AS 15.
- Gratuity Liability on the basis of actuarial valuation as per AS
15.
(iii) Defined Contribution Plans:
Provident fund & ESI on the basis of actual liability accrued and paid
to authorities.
(o) Export benefit/ incentives
Export Entitlements in respect of the exports made under various scheme
are recognized in the Profit and Loss Account when the right to receive
credit as per the terms of the Schemes are established.
(p) Earning per share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Diluted
Earnings per share are not different from basic earning per share.
(q) Recognition of prior period expenses
Prior period expenses and incomes below Rs.20000/- are treated as
current year''s expenses / incomes.
Mar 31, 2013
(a) 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.
(b) 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
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
(c) Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
(d) 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.
(e) Tangible fixed assets
Tangible Fixed assets are carried at cost less accumulated depreciation
and impairment losses, if any. The company has capitalized all costs
relating to acquisition and installation of tangible fixed assets.
Capital work in progress includes assets that are not ready for their
intended use and are carried at cost and their related incidental
expenses.
(f) Intangible fixed assets
Intangible assets are carried at cost less accumulated amortization and
impairment losses, if any. The company has capitalized all costs
relating to acquisition and installation of intangible fixed assets.
(g) Depreciation and amortization
Depreciation on fixed assets is provided using straight-line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956, except on intangible assets, which are not specified in the
above schedule. Amortization on intangible assets has been provided in
compliance of Accounting Standard AS-26.
(h) Revenue Recognition
The accrual basis of accounting has been followed in respect of income
and expenditure. Sales figures are net of sales tax. The Export Sale is
recognized at the time of issuance of Bill of Lading.
Interest income is recognized on an accrual basis on time proportionate
basis, based on interest rates implicit in the transaction.
Dividend income is recognized on receipt basis.
(i) Taxes on income
The Deferred tax expense or benefit is recognized on timing differences
being the difference between taxable incomes and accounting incomes
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
(j) Foreign Currency Transactions
(i) Foreign Currency transactions during the year are recorded at the
rate of exchange prevailing on the date of transaction. Foreign
Currency monetary assets and liabilities are translated into Rupees at
the rate of exchange prevailing on the date of the Balance Sheet except
investment in shares of subsidiary company which has been carried at
historic cost.. All Exchange differences are dealt with in the Profit
and Loss Account except for investment in overseas subsidiary. Foreign
Currency monetary items are reported using the closing rate.
(ii) Where the company has entered into forward exchange contracts, the
difference between the forward rate and spot rate at the date of the
contract is recognized in the statement of the profit and loss over the
life of the contract and difference between the spot rate at the date
of contract and the exchange rate prevailing on the balance Sheet date
is recognized as per Accounting Standard (AS) -11 (Revised) issued by
the Institute of Chartered Accountants of India. Any Profit or Loss
arising on cancellation or renewal of forward exchange contract is
recognized as Income or as expenses for the year.
(k) Inventories
Items of Inventories are valued at cost or net realizable value,
whichever is lower.
(l) Investments
Long term investments are stated at cost less provision for other than
temporary diminution in value. Current investments are stated at lower
of cost and fair value.
(m) Provisions and contingencies
A provision is recognized 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 Notes.
(n) Employee benefit
(i) ShortÂterm employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(ii) Defined Benefit Plans:
- Leave Salary of employees on the basis of actuarial valuation as per
AS 15.
- Gratuity Liability on the basis of actuarial valuation as per AS 15.
(iii) Defined Contribution Plans:
Provident fund & ESI on the basis of actual liability accrued and paid
to authorities.
(o) Export benefit/ incentives
Export Entitlements in respect of the exports made under various scheme
are recognized in the Profit and Loss Account when the right to receive
credit as per the terms of the Schemes are established.
(p) Earning per share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Diluted
Earnings per share are not different from basic earning per share.
(q) Recognition of prior period expenses
Prior period expenses and incomes below Rs.20000/- are treated as
current year''s expenses / incomes.
Mar 31, 2012
(a) 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.
(b) 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
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
(c) Tangible fixed assets
Tangible Fixed assets are carried at cost less accumulated
depreciation. The company has capitalized all costs relating to
acquisition and installation of tangible fixed assets.
(d) Intangible fixed assets
Intangible assets are carried at cost less accumulated amortization and
impairment losses, if any. The company has capitalized all costs
relating to acquisition and installation of intangible fixed assets.
(e) Depreciation
Depreciation on fixed assets is provided using straight-line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956, except on intangible assets, which are not specified in the
above schedule. Amortization on intangible assets has been provided in
compliance of Accounting Standard AS-26.
(f) Revenue Recognition
The accrual basis of accounting has been followed in respect of income
and expenditure. Sales figures are net of sales tax. The Export Sale is
recognized at the time of issuance of Bill of Lading. Interest income
is recognized on an accrual basis on time proportionate basis, based on
interest rates implicit in the transaction. Dividend income is
recognized on receipt basis.
(g) Accounting for taxes on income
The Deferred tax expense or benefit is recognized on timing differences
being the difference between taxable incomes and accounting incomes
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
(h) Foreign Currency Transactions
(i) Foreign Currency transactions during the year are recorded at the
rate of exchange prevailing on the date of transaction. Foreign
Currency monetary assets and liabilities are translated into Rupees at
the rate of exchange prevailing on the date of the Balance Sheet except
investment in shares of subsidiary company which has been carried at
historic cost. All Exchange differences are dealt with in the Profit
and Loss Account except for investment in overseas subsidiary. Foreign
Currency monetary items are reported using the closing rate.
(ii) Where the company has entered into forward exchange contracts, the
difference between the forward rate and spot rate at the date of the
contract is recognized in the statement of the profit and loss over the
life of the contract and difference between the spot rate at the date
of contract and the exchange rate prevailing on the balance Sheet date
is recognized as per Accounting Standard (AS) -11 (Revised) issued by
the Institute of Chartered Accountants of India. Any Profit or Loss
arising on cancellation or renewal of forward exchange contract is
recognized as Income or as expenses for the year.
(i) Inventories
Items of Inventories are valued at cost or net realizable value,
whichever is lower.
(j) Investments
Long term investments are stated at cost less provision for other than
temporary diminution in value. Current investments are stated at lower
of cost and fair value.
(k) Provisions and contingencies
A provision is recognized 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 Notes.
(l) Employee benefit
(i) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(ii) Defined Benefit Plans:
- Leave Salary of employees on the basis of actuarial valuation as
per AS 15.
- Gratuity Liability on the basis of actuarial valuation as per AS
15.
(iii) Defined Contribution Plans:
Provident fund & ESI on the basis of actual liability accrued and paid
to authorities.
(m) Export benefit/ incentives
Export Entitlements in respect of the exports made under various scheme
are recognized in the Profit and Loss Account when the right to receive
credit as per the terms of the Schemes are established.
(n) Earning per share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Diluted
Earnings per share are not different from basic earning per share.
(o) Recognition of prior period expenses
Prior period expenses and incomes below Rs.20000/- are treated as
current year's expenses / incomes.
Mar 31, 2011
1. BASIS OF ACCOUNTING
The Financial Statements have been prepared to comply with the
Mandatory Accounting Standards issued by The Institute of Chartered
Accountants of India and the relevant provisions of the Companies Act,
1956. The Financial Statements have been prepared under the historical
cost convention on accrual basis. The Accounting Policies have been
consistently applied by the Company unless otherwise stated.
2. REVENUE RECOGNITION
The accrual basis of accounting has been followed in respect of income
and expenditure. Sales figures are net of sales tax. The Export Sale
is recognized at the time of issuance of Bill of Lading.
Interest income is recognized on an accrual basis on time proportionate
basis, based on interest rates implicit in the transaction.
Dividend income is recognized on receipt basis.
3. ACCOUNTING FOR TAXES ON INCOME
The Deferred tax expense or benefit is recognized on timing differences
being the difference between taxable incomes and accounting incomes
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
4. FOREIGN CURRENCY TRANSACTIONS
(i) Foreign Currency transactions during the year are recorded at the
rate of exchange prevailing on the date of transaction. Foreign
Currency monetary assets and liabilities are translated into Rupees at
the rate of exchange prevailing on the date of the Balance Sheet except
investment in shares of subsidiary company which has been carried at
historic cost. All Exchange differences are dealt with in the Profit
and Loss Account except for investment in overseas subsidiary. Foreign
Currency monetary items are reported using the closing rate.
(ii) Where the company has entered into forward exchange contracts, the
difference between the forward rate and spot rate at the date of the
contract is recognized in the statement of the profit and loss over the
life of the contract and difference between the spot rate at the date
of contract and the exchange rate prevailing on the Balance Sheet date
is recognized as per Accounting Standard (AS) -11 (Revised) issued by
the Institute of Chartered Accountants of India. Any Profit or Loss
arising on cancellation or renewal of forward exchange contract is
recognized as Income or as expenses for the year.
5. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The
company has capitalized all costs relating to acquisition and
installation of fixed assets.
6. DEPRECIATION
Depreciation on fixed assets is provided using straight-line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956, except on intangible assets, which are not specified in the
above schedule. Amortization on intangible assets has been provided in
compliance of Accounting Standard AS-26.
7. INVENTORIES
Items of Inventories are valued at cost or net realizable value,
whichever is lower.
8. RETIREMENT BENEFITS
1) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
2) Defined Benefit Plans:
- Leave Salary of employees on the basis of actuarial valuation as per
AS 15.
- Gratuity Liability on the basis of actuarial valuation as per AS 15.
3) Defined Contribution Plans:
Provident fund & ESI on the basis of actual liability accrued and paid
to authorities.
iii) Change in Plan Assets: There is no change in Plan Assets in the
case of Gratuity and Leave Encashment because there is no funded scheme
taken by the Company.
v) Actuarial Assumptions:
1) Demographic assumptions: As shown in para 18(i) of the report.
2) Financial Assumptions:
The estimate of future salary increase takes into account regular
increment, promotional increases and other relevant factors such as
supply and demand in the employment market.
9. EXPORT BENEFITS/ INCENTIVES
Export Entitlements in respect of the exports made under various scheme
are recognized in the Profit and Loss Account when the right to receive
credit as per the terms of the Schemes are established.
10. EARNINGS PER SHARE
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Diluted
Earnings per share are not different from basic earning per share.
11. RECOGNITION OF PRIOR PERIOD ITEMS
Prior period expenses and incomes below Rs.15000/- are treated as
current year's expenses / incomes.
Mar 31, 2010
1. BASIS OF ACCOUNTING
The Financial Statements have been prepared to comply with the
Mandatory Accounting Standards issued by The Institute of Chartered
Accountants of India and the relevant provisions of the Companies Act,
1956. The Financial Statements have been prepared under the historical
cost convention on accrual basis. The Accounting Policies have been
consistently applied by the Company unless otherwise stated.
2. REVENUE RECOGNITION
The accrual basis of accounting has been followed in respect of income
and expenditure. Sales figures are net of sales tax. The Export Sale is
recognized at the time of issuance of Bill of Lading.
3. ACCOUNTING FOR TAXES ON INCOME
The Deferred tax expense or benefit is recognized on timing differences
being the difference between taxable incomes and accounting incomes
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
4. FOREIGN CURRENCY TRANSACTIONS
(i) Foreign Currency transactions during the year are recorded at the
rate of exchange prevailing on the date of transaction. Foreign
Currency monetary assets and liabilities are translated into Rupees at
the rate of exchange prevailing on the date of the Balance Sheet except
investment in shares of subsidiary company which has been carried at
historic cost. All Exchange differences are dealt with in the Profit
and Loss Account except for investment in overseas subsidiary. Foreign
Currency monetary items are reported using the closing rate.
(ii) Where the company has entered into forward exchange contracts, the
difference between the forward rate and spot rate at the date of the
contract is recognized in the statement of the profit and loss over the
life of the contract and difference between the spot rate at the date
of contract and the exchange rate prevailing on the balance Sheet date
is recognized as per Accounting Standard (AS) -11 (Revised) issued by
the Institute of Chartered Accountants of India. Any Profit or Loss
arising on cancellation or renewal of forward exchange contract is
recognized as Income or as expenses for the year.
5. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The
company has capitalized all costs relating to acquisition and
installation of fixed assets.
6. DEPRECIATION
Depreciation on fixed assets is provided using straight-line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956, except on intangible assets, which are not specified in the
above schedule. Depreciation on intangible assets has been provided in
compliance of Accounting Standard AS-26.
7. inventories!
Items of Inventories are valued at cost or net realizable value,
whichever is lower.
8. RETIREMENT BENEFITS
Liability of Gratuity at retirement/cessation and Leave Encashment is
provided for based on valuations, as at the Balance Sheet date, made by
independent actuaries as per Accounting Standard (AS)-15 (Revised)
issued by the Institute of Chartered Accountants of India.
9. EXPORT BENEFITS/ INCENTIVES
Export Entitlements in respect of the exports made under various scheme
are recognized in the Profit and Loss Account when the right to receive
credit as per the terms of the Schemes are established.
10. EARNINGS PER SHARE
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Diluted
Earnings per share are not different from basic earning per share.
11. RECOGNITION OF PRIOR PERIOD ITEMS
Prior period expenses and incomes below Rs.15000/- are treated as
current years expenses / incomes.
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