Mar 31, 2015
1 Basis of Accounting :
All financial items of Income and Expenditure having a material bearing
on the financial statement are recognised on accrual basis, except
income by way of dividend and Expense by way of leave encashment which
is accounted on cash basis
2 Sales :
Sales exclude Sales Tax, Transportation, Insurance, discount,
penalty/late delivery charges and include Sales Returns and Discount.
3 Use of Estimates :
The preparation of Financial Statements in conformity with the
Accounting Standards generally accepted in India requires, the
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities as at the date of the financial statements and reported
amounts of revenues and expenses for the year. Actual results could
differ from these estimates. Any revision to accounting estimates is
recognised prospectively in current and future periods.
4 Fixed Assets and Depreciation :
i) All fixed assets are valued at cost less depreciation.The cost is
inclusive of incidental expenses related to acquisition and put to
use.Pre-operative expenses including trial run expenses (net of
revenue) are capitalised. Interest on borrowings and financing costs
during the period of construction is added to cost of fixed assets.
ii) Impairement loss ,if any is recognised in the year in which
impairement takes place.
iii) Pursuant to the enactment of Companies Act, 2013, the company has
applied the estimated useful lives as specified in Schedule II.
Accordingly the unamortised carrying value is being depreciated/
amortised on straight line basis so as to write off the cost of the
assets over the revised/remaining useful lives. The written down value
of Fixed Assets whose lives have expired as at 1st April 2014 have been
adjusted, in the opening balance of Profit and Loss Account amounting
to Rs.-83085/-
iv) Depreciation on additions / disposals of the fixed assets during
the year is provided on pro-rata basis according to the period during
which assets are put to use.
5 Expenditure during the Construction Period :
The expenditure incidental to the expansion / new projects are
allocated to Fixed Assets in the year of commencement of the commercial
production.
6 Inventories :
Raw Materials, Stores & Spare Parts & Finished Goods and are valued at
lower of cost and net realisable value
7 Revenue Recognition :
i) Revenue from Sale of goods is recognised when significant risks and
rewards of ownership of the goods have been passed to the buyer.
ii) Service income is recognised as per the terms of contracts with the
customers when the related services are performed or the agreed
milestones are achieved and are net of service tax wherever applicable.
iii) Dividend income is recognised when the unconditional right to
receive the income is established.
iv) Revenue in respect of other income is recognised when no
significant uncertainty as to its determination or realisation exists.
8 Foreign Currency Transactions :
Monetary assets & liabilities related to foreign currency transaction
are settled during the year
9 Retirement Benefits :
i) Gratuity
Gratuity has been provided in accordance with the provisions of Payment
of Gratuity Act, 1972.
ii) Leave Liability :
The employees of the company are entitled to leave as per the leave
policy of the company. The liability on account of accumulated leave as
on last day of the accounting year is not recognised.
10 Employee Separation Costs :
The compensation paid to the employees under Voluntary Retirement
Scheme is expensed in the year of payment.
11 Provision for Bad and Doubtful Debts / Advances :
Provision, if any, is made in accounts for bad and doubtful debts /
advances which in the opinion of the management are considered doubtful
of recovery.
12 Deferred Tax:
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets arising
from temporary timing differences are recognised to the extent there is
reasonable certainity that the assests can be realised in future.
13 Provisions, Contingent Liabilities and Contingent Assets :
Provision is recognised when the company has a present obligation as a
result of past events and it is probable that the outflow of resources
will be required to settle the obligation and in respect of which
reliable estimates can be made. A disclosure for contingent liability
is made when there is a possible obligation, that may, but probably
will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision / disclosure is made.
Contingent assets are not recognised in the Financial Statements.
Provisions and contingencies are reviewed at each balance sheet date
and adjusted to reflect the correct management estimates.
Mar 31, 2014
1 Basis of Accounting :
All financial items of Income and Expenditure having a material bearing
on the financial statement are recognised on accrual basis, except
income by way of dividend and Expense by way of leave encashment which
is accounted on cash basis.
2 Sales :
Sales exclude Sales Tax, Transportation, Insurance, discount,
penalty/late delivery charges and include Sales Returns and Discount.
3 Use of Estimates :
The preparation of Financial Statements in conformity with the
Accounting Standards generally accepted in India requires, the
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities as at the date of the financial statements and reported
amounts of revenues and expenses for the year. Actual results could
differ from these estimates. Any revision to accounting estimates is
recognised prospectively in current and future periods.
4 Fixed Assets and Depreciation :
i) All fixed assets are valued at cost less depreciation.The cost is
inclusive of incidental expenses related to acquisition and put to
use.Pre-operative expenses including trial run expenses (net of
revenue) are capitalised. Interest on borrowings and financing costs
during the period of construction is added to cost of fixed assets.
ii) Impairement loss ,if any is recognised in the year in which
impairement takes place.
iii) Depreciation on Fixed Assets is provided on Straight Line Method
at the rate and in the manner specified in Schedule
XIV of the Companies Act, 1956.
iv) Depreciation on additions / disposals of the fixed assets during
the year is provided on pro-rata basis according to the period during
which assets are put to use.
5 Expenditure during the Construction Period :
The expenditure incidental to the expansion / new projects are
allocated to Fixed Assets in the year of commencement of the commercial
production.
6 Inventories :
Raw Materials, Stores & Spare Parts & Finished Goods and are valued at
lower of cost and net realisable value
7 Revenue Recognition :
i) Revenue from Sale of goods is recognised when significant risks and
rewards of ownership of the goods have been passed to the buyer.
ii) Service income is recognised as per the terms of contracts with the
customers when the related services are performed or the agreed
milestones are achieved and are net of service tax wherever applicable.
iii) Dividend income is recognised when the unconditional right to
receive the income is established.
iii) Revenue in respect of other income is recognised when no
significant uncertainty as to its determination or realisation exists.
8 Foreign Currency Transactions :
Monetary assets & liabilities related to foreign currency transaction
are settled during the year
9 Retirement Benefits : i) Gratuity
Gratuity has been provided in accordance with the provisions of Payment
of Gratuity Act, 1972.
ii) Leave Liability :
The employees of the company are entitled to leave as per the leave
policy of the company. The liability on account of accumulated leave as
on last day of the accounting year is not recognised.
10 Employee Separation Costs :
The compensation paid to the employees under Voluntary Retirement
Scheme is expensed in the year of payment.
11 Provision for Bad and Doubtful Debts / Advances :
Provision, if any, is made in accounts for bad and doubtful debts /
advances which in the opinion of the management are considered doubtful
of recovery.
12 Deferred Tax:
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or moresubsequent periods. Deferred tax assets arising
from temporary timing differences are recognised to the extent there is
reasonable certainity that the assests can be realised in future.
13 Provisions, Contingent Liabilities and Contingent Assets :
Provision is recognised when the company has a present obligation as a
result of past events and it is probable that the outflow of resources
will be required to settle the obligation and in respect of which
reliable estimates can be made. A disclosure for contingent liability
is made when there is a possible obligation, that may, but probably
will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision / disclosure is made.
Contingent assets are not recognised in the Financial Statements.
Provisions and contingencies are reviewed at each balance sheet date
and adjusted to reflect the correct management estimates.
Mar 31, 2013
1 Basis of Accounting :
All financial items of Income and Expenditure having a material bearing
on the financial statement are recognised on accrual basis, except
income by way of dividend and Expense by way of leave encashment which
is accounted on cash basis.
2 Sales :
Sales exclude Sales Tax, Transportation, Insurance, discount,
penalty/late delivery charges and include and but net of Sales Returns
and Discount.
3 Use of Estimates :
The preparation of Financial Statements in conformity with the
Accounting Standards generally accepted in India requires, the
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities as at the date of the financial statements and reported
amounts of revenues and expenses for the year. Actual results could
differ from these estimates. Any revision to accounting estimates is
recognised prospectively in current and future periods.
4 Fixed Assets and Depreciation :
i) All fixed assets are valued at cost less depreciation.The cost is
inclusive of incidental expenses related to acquisition and put to
use.Pre-operative expenses including trial run expenses (net of
revenue) are capitalised. Interest on borrowings and financing costs
during the period of construction is added to cost of fixed assets.
ii) Impairement loss ,if any is recognised in the year in which
impairement takes place.
iii) Depreciation on Fixed Assets is provided on Straight Line Method
at the rate and in the manner specified in Schedule
XIV of the Companies Act, 1956.
iv) Depreciation on additions / disposals of the fixed assets during
the year is provided on pro-rata basis according to the period during
which assets are put to use.
5 Expenditure during the Construction Period :
The expenditure incidental to the expansion / new projects are
allocated to Fixed Assets in the year of commencement of the commercial
production.
6 Inventories :
Raw Materials, Stores & Spare Parts & Finished Goods and are valued at
lower of cost and net realisable value
7 Revenue Recognition :
i) Revenue from Sale of goods is recognised when significant risks and
rewards of ownership of the goods have been passed to the buyer.
ii) Service income is recognised as per the terms of contracts with the
customers when the related services are performed or the agreed
milestones are achieved and are net of service tax wherever applicable.
iii) Dividend income is recognised when the unconditional right to
receive the income is established.
iii) Revenue in respect of other income is recognised when no
significant uncertainty as to its determination or realisation exists.
8 Foreign Currency Transactions : Monetary assets & liabilities related
to foreign currency transaction are settled during the year
9 Retirement Benefits :
i) Gratuity Gratuity has been provided in accordance with the
provisions of Payment of Gratuity Act, 1972.
ii) Leave Liability :
The employees of the company are entitled to leave as per the leave
policy of the company. The liability on account of accumulated leave as
on last day of the accounting year is not recognised.
10 Employee Separation Costs :
The compensation paid to the employees under Voluntary Retirement
Scheme is expensed in the year of payment.
11 Provision for Bad and Doubtful Debts / Advances :
Provision, if any, is made in accounts for bad and doubtful debts /
advances which in the opinion of the management are considered doubtful
of recovery.
12 Deferred Tax:
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets arising
from temporary timing differences are recognised to the extent there is
reasonable certainity that the assests can be realised in future.
13 Provisions, Contingent Liabilities and Contingent Assets :
Provision is recognised when the company has a present obligation as a
result of past events and it is probable that the outflow of resources
will be required to settle the obligation and in respect of which
reliable estimates can be made. A disclosure for contingent liability
is made when there is a possible obligation, that may, but probably
will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision / disclosure is made.
Contingent assets are not recognised in the financial statements.
Provisions and contingencies are reviewed at each balance sheet date
and adjusted to reflect the correct management estimates.
Mar 31, 2010
I) Basis of Accounting
The Company Prepares its accounts on accrual basis in accordance with
generally accepted accounting principles and under historical cost
convention. For recognition of Income & Expenses, Accrual System of
Accounting is followed, except as stated otherwise.
II) Fixed Assets:
Fixed assets are stated at cost less depreciation. The cost is
inclusive of all direct and incidental expenses related to acquisition
and installation.
III) Depreciation:
Depreciation on fixed assets is provided on straight line method at the
rate and in the manner specified in Schedule XIV of the Companies Act,
1956.
IV) Inventories:
Inventories are valued at the lower of cost and net realisable value.
V) Share Issue Expenses:
Share Issue Expenses are written off in equal installments over a
period of ten accounting years.
VI) Foreign Exchange Transactions:
Monetary assets & Liabilities related to foreign currency transaction
settled during the year.
VII) Retirement Benefits:
Gratuity has been provided in accordance with the provisions of Payment
of Gratuity Act,1972.
VIII) Deferred Tax
Tax expenses charged to Profit & Loss account is after considering the
deferred tax impact for the timing difference between accounting income
and tax income, Deferred tax assets are recognized when there is a
reasonable certainty that they will be realized. Deferred tax asset
relating to unabsorbed business losses are recognized when there is a
virtual certainty that there will be sufficient taxable profit to
utilize them.