Mar 31, 2014
A. Use of estimates: The preparation of the financial statements in
the conformity with the GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and the disclosure of contingent liabilities on the date of the
financial statements. Actual results could differ from those estimates.
Any revision to accounting estimates is recognized prospectively in
current and future periods.
b. Tangible fixed assets: Fixed assets are stated at cost, after
deducting accumulated depreciation up to the date of balance sheet.
Direct costs are capitalized when the assets are ready for use and
include borrowing costs related to the acquisition of qualifying
assetsforthe period uptothe completion of installation of such assets.
c. Depreciation/Amortization: Depreciation on fixed assets is provided
on pro-rata basis to the period of use, using the written down value
method based on rates specified in Schedule XIV to the Act.
d. Impairment of assets: An assets is treated as impaired when the
carrying cost of assets exceeds its recoverable value being higher of
value in use and netselling price. Value in use is computed at net
present value of cash flow expected over the balance useful life of the
assets. An impairment loss is recognized as expenses in the Statement
of Profit and Loss in the year in which as asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been an improvement in recoverable amount.
e.lnventories:
lnventories are value dat lower of costornet realizable value.
f. Revenue recognition: Revenue is recognized to the extent that it is
probable that the economic benefits will flow to the company and
revenue can be reliably measured. Revenue from sale of goods is
recognised when all the significant risks & rewards of ownership of the
goods have been passed to the recognized buyers, usually on delivery of
the goods. Dividend Income is recognised when right to receive is
established.
Interest Income is recognised on time proportion basis taking into
account the amount outstanding and rate applicable.
g. Investments: Investments which are readily realizable and intended
to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other
investments are classified as long term investments /non- current
investments. Long term investments are carried at cost unless there is
diminution (otherthan temporary) in the value of investments.
h. Employee benefits: Short-term employees'' benefits are recognized as
an expense in the Statement of Profit and Loss for the year in which
the related service is rendered.
i. Foreign exchange transactions: Transactions in foreign currencies
are recorded at a rate that approximates the exchange rate prevailing
at the date of the transaction. Exchange differences arising on
foreign currency transactions are recognized in the statement of profit
and loss. Monetary items denominated in foreign currencies at the
yearend are restated atyearend rates.
j. Contingencies: Contingent liability is a possible obligation that
arises from past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the enterprise, or is a
present obligation that arises from past events but is not recognized
because either it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation,
or a reliable estimate of the amount of the obligation cannot be made.
k. Taxation: The current charges for Income Taxes are calculated in
accordance with the relevant tax regulations applicable to the company.
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to timing differences that result between the
profit offered for Income taxes and the profit as per the financial
statements. Deferred tax assets and liabilities are computed using the
tax rates and tax laws that have been enacted or substantively enacted
by the Balance Sheet date. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the period that
includes the enactment date. Deferred tax assets in respect of losses
carried forward and unabsorbed depreciation are recognized only to the
extent that there is virtual certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized and are reassessed for the appropriateness of their respective
carrying values at each Balance Sheet date.
I. Duty drawback: These are being accounted for as and when actually
received.
m. Earnings per share: The basic and diluted earnings per share are
computed by dividing the net profit attributable to equity shareholders
for the period by the weighted average numberof equity shares
outstanding during the period.
n. Operating Leases:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating lease Operating lease receipts are recognized as an income in
the statement of Profit & Loss as per the lease terms.
Mar 31, 2013
A. Use of estimates: The preparation of the financial statements in
the conformity with the GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and the disclosure of contingent liabilities on the date of the
financial statements. Actual results could differ from those estimates.
Any revision to accounting estimates is recognized prospectively in
current and future periods.
b. Tangible fixed assets: Fixed assets are stated at cost, after
deducting accumulated depreciation up to the date of balance sheet.
Direct costs are capitalized when the assets are ready for use and
include borrowing costs related to the acquisition of qualifying assets
for the period up to the completion of installation of such assets.
c. Depreciation/Amortization: Depreciation on fixed assets is provided
on pro-rata basis to the period of use, using the written down value
method based on rates specified in Schedule XIV to the Act.
d. Impairment of assets: An assets is treated as impaired when the
carrying cost of assets exceeds its recoverable value being higher of
value in use and net selling price. Value in use is computed at net
present value of cash flow expected over the balance useful life of the
assets. An impairment loss is recognized as expenses in the Statement
of Profit and Loss in the year in which as asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been an improvement in recoverable amount.
e. Inventories: Inventories are valued at lower of cost or net
realizable value.
f. Revenue recognition: Revenue is recognized to the extent that it is
probable that the economic benefits will flow to the company and
revenue can be reliably mea- sured. Revenue from sale of goods is
recognised when all the significant risks & rewards of ownership of the
goods have been passed to the recognized buyers, usually on delivery of
the goods. Dividend Income is recognised when right to receive is
established. Interest Income is recognised on time proportion basis
taking into account the amount outstanding and rate applicable.
g. Investments: Investments which are readily realizable and intended
to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other
investments are classified as long term investments/non-current
investments. Long term investments are carried at cost unless there is
diminution (other than temporary) in the value of investments.
h. Employee benefits: Short-term employees'' benefits are recognized as
an expense in the Statement of Profit and Loss for the year in which
the related service is rendered.
i. Foreign exchange transactions: Transactions in foreign currencies
are recorded at a rate that approximates the exchange rate prevailing
at the date of the transaction. Exchange differences arising on
foreign currency transactions are recognized in the statement of profit
and loss. Monetary items denominated in foreign currencies at the year
end are restated at year end rates.
i. Contingencies: Contingent liability is a possible obligation that
arises from past events and the existence of which will be confirmed
only by the occurrence or non- occurrence of one or more uncertain
future events not wholly within the control of the enterprise, or is a
present obligation that arises from past events but is not recog- nized
because either it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation,
or a reliable estimate of the amount of the obligation cannot be made.
k. Taxation: The current charges for Income Taxes are calculated in
accordance with the relevant tax regulations applicable to the company.
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to timing differ- ences that result between
the profit offered for Income taxes and the profit as per the financial
statements. Deferred tax assets and liabilities are computed using the
tax rates and tax laws that have been enacted or substantively enacted
by the Balance Sheet date. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the period that
includes the enactment date. Deferred tax assets in respect of losses
carried forward and unabsorbed depreciation are recog- nized only to
the extent that there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized and are reassessed for the appropriateness of their
respective carrying values at each Balance Sheet date.
I. Duty drawback: These are being accounted for as and when actually
received.
m. Earnings per share: The basic and diluted earnings per share are
computed by dividing the net profit attributable to equity shareholders
for the period by the weighted average number of equity shares
outstanding during the period.
n. Operating Leases :
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating lease.
Operating lease receipts are recognized as an income in the statement
of Profit & Loss as per the lease terms.
In accordance with the requirements under the Accounting Standard
(AS-22) relating to deferred tax, the deferred tax liability at the end
of the year works out to be Rs. 35,828(as on 01.04.2012 Rs.1,35,217).
As a measure of prudence and as recommended under AS-22 the same has
been currently recognized in the accounts.
Mar 31, 2010
A) Basis of preparation of Financial Statements :
The financial statements are prepared under the historical cost
convention on the accrual basis in accordance with Generally Accepted
Accounting Principles (GAAP) in India, and materially comply with the
mandatory accounting standards issued by the Central Government and the
provisions of the Companies Act, 1956 (the Act).
b) Use of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the period reported.
Actual results could differ from these estimates. Management
periodically assesses using external and internal sources whether there
is an indication that an asset may be impaired. An impairment occurs
where the carrying value exceeds the present value of future cash flows
expected to arise from the continuing use of the asset and its eventual
disposal. The impairment loss to be expensed is determined as the
excess of the carrying amount over the higher of the assets net sales
price or present value as determined above. Contingencies are recorded
when it is probable that a liability will be incurred, and the amount
can be reasonable estimated. Actual results could differ from those
estimates.
c) Revenue recognition :
The Company recognises sales at the point of despatch of goods to the
customers.
d) Fixed Assets and capital work in progress :
Fixed Assets are stated at cost, after deducting accumulated
depreciation up to the date of balance sheet. Direct costs are
capitalized when the assets are ready for use and include borrowing
costs related to the acquisition of qualifying assets for the period up
to the completion of installation of such assets.
e) Depreciation :
Depreciation on fixed assets is provided pro-rata to the period of use,
using the written down value method based on rates specified in
Schedule XIV to the Act.
f) Impairment :
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value being higher of value in use and net
selling price. Value in use is computed at net present value of cash
flow expected over the balance useful life of the assets. An impairment
loss is recognised as an expense in the Profit and Loss Account in the
year in which an asset is identified as impaired The impairment loss
recognized in prior accounting period is reserved if there has been an
improvement in recoverable amount.
g) Inventories :
Inventories are valued at lower of cost or net realisable value.
h) Foreign Currency Transactions and translations :
Transactions in foreign currencies are recorded at a rate that
approximates the exchange rate prevailing at the date of the
transaction Exchange differences arising on foreign currency
transactions are recognised in the profit and loss account.
i) Duty Draw Back :
These are being accounted for as and when actually received.
j) Investments :
Long term Investments are stated at cost and any decline other than
temporary, in the value of such investments is charged to the Profit
and Loss Account.
k) Employee benefits :
(i) Short-term employee benefits are charged off at the undiscounted
amount in the year in which the related services are rendered.
(li) No post employment and other long-term employee benefits are
payable by the company.
l) Contingent Liability :
i) Contingent liabilities if any are disclosed by way of notes to the
Accounts.
ii) Demands raised by the Custom Authorities disputed by the Company
Rs.26,27,309/- (Previous year Rs.26,27,309/-)
iii) Bank Guarantee given by a scheduled bank to a third party
Rs.41,20,256/- (P. Y. Rs.32,28,756/-)
m) Income taxes, Deferred Tax and Fringe Benefits Tax :
The current charge for Income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company.
Deferred tax assets and liabilities are recognised for the future tax
consequences attributable to timing differences that result between the
profit offered for income taxes and the profit as per the financial
statements. Deferred tax assets and liabilities are computed using the
tax rates and tax laws that have been enacted or substaintively enacted
by the balance sheet date. The effect on deferred tax assets and
liabilities of a change in tax rates is recognised in the period that
includes the enactment date.
Deferred tax assets in respect of losses carried forward and unabsorbed
depreciation are recognised only to the extent that there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. Other deferred
tax assets are recognised only if there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realised and are reassessed for the
appropriateness of their respective carrying values at each balance
sheet date.
n) Earnings per share :
The basic earnings per share is computed by dividing the net profit
attributable to equity shareholders for the period by the weighted
average number of equity shares outstanding during the period.
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