Mar 31, 2015
1.1 Basis for preparation of financial statements
The financial statements have been prepared and presented under the
historical cost convention on accrual basis of accounting and in
accordance with the Generally Accepted Accounting Principles (GAAP) in
India. GAAP includes Accounting Standards (AS) notified by the
Government of India under Section 133 of the Companies Act, 2013,
provisions of the Companies Act, 2013, pronouncements of Institute of
Chartered Accountants of India and guidelines issued by Securities and
Exchange Board of India (SEBI). The Company has presented financial
statements as per format prescribed by Revised Schedule III, notified
under the Companies Act, 2013, issued by Ministry of Corporate Affairs.
Figures have been regrouped and presented wherever necessary. Except
where otherwise stated, the accounting policies are consistently
applied.
1.2 Use of estimates
The preparation of financial statements in conformity with GAAP
requires management to make assumptions, critical judgments and
estimates, which it believes are reasonable under the circumstances
that affect the reported amounts of assets, liabilities and contingent
liabilities on the date of financial statements and the reported
amounts of revenue and expenses during the period. Actual results could
differ from those estimates. Difference between the actual results and
estimates are recognized in the period in which the results are known
or materialize.
1.3 Cash flow statement
The cash flow statement is prepared under the "Indirect Method" as set
out in AS - 7 "Cash Flow Statements" issued by the Institute of
Chartered Accountants of India.
1.4 Inventories
Inventories are valued at the lower of cost and net realizable value.
Provision for impairment is made when there is high uncertainty in
salability of an item. Costs incurred in bringing inventories to its
existing location and conditions are determined on the following basis:
(a) Raw materials and packing materials - Purchase cost of materials on
moving average basis.
(b) Finished goods (manufactured) and work-in-progress - Cost of
purchase, cost of conversion and other costs proportionately allocated
determined on weighted average basis
(c) Finished goods (traded) - Purchase cost on moving average basis.
1.5 Revenue recognition
(a) Revenue from sale of goods is recognized when the significant risks
and rewards of ownership of goods are transferred to the customer.
Sales are net of discounts, sales tax, value added tax and estimated
returns. Excise duties collected on sales are shown by way of
deduction from sales.
(b) Provision for sales returns are estimated primarily on the basis of
historical experience, market conditions and specific contractual terms
and provided for in the year of sale as reduction from revenue. The
methodology and assumptions used to estimate returns are monitored and
adjusted regularly in line with contractual and legal obligations,
trade practices, historical trends, past experience and projected
market conditions.
(c) Income from services is recognized when the services are rendered
or when contracted milestones have been achieved.
(d) Revenue from arrangements which includes performance of obligations
is recognized in the period in which related performance obligations
are completed.
(e) Export entitlements are recognized as income when right to receive
credit as per the terms of the scheme is established in respect of the
exports made and where there is no significant uncertainty regarding
the ultimate collection of the relevant export proceeds.
(f) Dividend income is recognized when the right to receive dividend is
established.
(g) Interest income is recognized using the time-proportion method,
based on rates implicit in the transaction.
(h) Revenue in respect of other income is recognized when a reasonable
certainty as to its realization exists.
1.6 Employee retirement and other benefits
Short-term employee benefits:
Short-term employee benefits like salaries, wages, bonus and welfare
expenses payable wholly within twelve months of rendering the services
are accrued in the year in which the associated services are rendered
by the employees.
Long-term employee benefits:
(a) Defined contribution plan:
Contribution in case of defined contribution plans (provident fund,
superannuation benefit, social security schemes and other fund/schemes)
is charged to the statement of profit and loss as and when it is
incurred as employees' costs.
(b) Defined benefit plan :
The accruing liability on account of gratuity (retirement benefit in
the nature of defined benefits plan) is actuarially valued every year.
The current service cost, interest cost, expected return on plan assets
and the actuarial gain / loss are debited / credited, as the case may
be to the statement of profit and loss of the year as employees' costs.
(c) Other long-term benefits:
Long-term compensation plan to employees (being deferred compensation
paid 12 months or more after the end of the period in which it is
earned) are expensed out in the period to which the costs relate at
present value of the benefits under the plan. The liability for
compensated absences and leave encashment is provided on the basis of
actuary valuation, as at balance sheet date.
1.7 Finance costs
Finance costs consist of interest and other costs that the Company
incurs in connection with the borrowing of funds and exchange
differences arising from foreign currency borrowings to the extent that
they are regarded as an adjustment to interest costs.
1.8 Accounting for taxes
(a) Current tax is accounted on the basis of estimated taxable income
for the current accounting year and in accordance with the provisions
of the Income Tax Act, 1961.
(b) Deferred tax resulting from "timing differences" between accounting
and taxable profit for the period is accounted by using tax rates and
laws that have been enacted or substantively enacted as at the balance
sheet date. Deferred tax assets are recognized only to the extent
there is reasonable certainty that the assets can be realized in
future. Net deferred tax liabilities are arrived at after setting off
deferred tax assets.
1.9 Provisions, contingent liabilities and contingent assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Liabilities which are of contingent nature are not provided but are
disclosed at their estimated amount in the notes forming part of the
financial statements. Contingent assets are neither recognized nor
disclosed in the financial statements.
Mar 31, 2014
1.1 Basis of Accounting
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
Section 211(3C) of the Companies Act, 1956, ("the 1956 Act") (which
continues to be applicable in respect of Section 133 of the Companies
Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013
dated September 13, 2013 of the Ministry of Corporate Affairs) and the
relevant provisions of the 1956 Act/ 2013 Act,as applicable. Further
the Company follows the directions issued by the Reserve Bank of India
(RBI) for Core Investment Companies (CIC) and Non Banking Financial
Companies (NBFC) as applicable.
1.2 Use of estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities) as of the date of
the financial statements and the reported income and expenses during
the reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Actual results could differ from these estimates. Any change in such
estimates is recognized prospectively.
1.3 Tangible and Intangible fixed assets
Tangible fixed assets are stated at cost of acquisition including any
cost attributable for bringing the asset to its working condition, less
accumulated depreciation. Intangible fixed assets comprising of
software licenses are stated at cost of acquisition including any cost
attributable for bringing the asset to its working condition, less
accumulated amortization. Any expenses on such software licenses for
support and maintenance payable annually are charged to the Statement
of Profit and Loss.
1.4 Revenue recognition
- Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. - Interest income on deposits and debentures is
recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable.
- Profit/loss on sale of investments is recognized at the time of
actual sale/redemption.
- Dividend income is recognized when the Company''s right to receive
dividend is established by the reporting date.
1.5 Depreciation/Amortization
Depreciation/Amortization is provided on Straight-Line Method (SLM)
which reflects the Management''s estimate of the useful life of the
respective assets. Rates used for depreciation
- Motor car 15%.
- Computers 20%
- Specialized software amortized over a period of 3 years.
- Fixed assets costing '' 5,000/- or less are fully depreciated in the
year of purchase.
1.6 Investments
The Company being regulated as a Non-Banking Financial Company (NBFC)
by the RBI, investments are classified under two categories i.e.
Current and Long Term and are valued in accordance with the RBI
guidelines and the Accounting Standard (AS) 13 on ''Accounting for
Investments''. ''Long Term Investments'' are carried at acquisition
/ amortized cost. A provision is made for diminution, other than
temporary, on an individual investment basis. ''Current Investments''
are carried at lower of the cost or fair value on an individual
investment basis.
1.7 Leases Where the Company is lessee
Operating leases, where the lessor effectively retains substantially
all the risks and benefits of ownership of the leased item, are
classified as operating leases. Operating lease payments are recognized
as an expense in the Statement of Profit and Loss on a straight-line
basis over the lease term.
1.8 Retirement and other employee benefits Short term employee
benefits:
All employee benefits falling due wholly within twelve months of
rendering the services are classified as short-term employee benefits.
Benefits such as salaries, short term compensated absences etc. and
estimated variable remuneration are recognized in the period in which
the employee renders the related service.
Post employment benefits:
(a) Defined contribution plans:
The Company''s provident fund, pension and superannuation scheme are
defined contribution plans. The contribution paid/payable under the
schemes is recognized during the period in which the employee renders
the related services.
(b) Defined benefit plan
The Company''s gratuity scheme is defined benefit plan. The employee
gratuity obligation is determined based on actuarial valuation using
Projected Unit Credit method which recognizes each period of service as
giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation is measured at the present value of the estimated future
cash flows. The discount rate used for determining the present value of
the obligation under defined benefit plans, is based on the market
yield on government securities of a maturity period equivalent to the
weighted average maturity profile of the related obligations at the
balance sheet date. Actuarial gains and losses are recognized
immediately in the Statement of Profit and Loss.
1.9 Income taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year as determined in accordance with the
provisions of the Income Tax Act, 1961. Deferred tax is recognised on
timing differences, between taxable income and accounting income that
originated in one period and is capable of reversal in one or more
subsequent periods. Deferred tax assets are recognised with regard to
all deductible timing differences to the extent it is probable that
taxable profit will be available against which deductible timing
differences can be utilised. When the Company carries forward unused
tax losses and unabsorbed depreciation, deferred tax assets are
recognised only to the extent there is virtual certainty backed by
convincing evidence that sufficient future taxable income will be
available against which deferred tax assets can be realised. The
carrying amounts of deferred tax assets are reviewed at each balance
sheet date and reduced by the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or a part of
the deferred tax asset to be utilised. Minimum Alternate Tax (MAT)
credit is recognized as an asset only when and to the extent there is
convincing evidence that the Company will pay normal Income Tax during
the specified period. In the year in which the MAT credit becomes
eligible to be recognised as an asset in accordance with the Guidance
Note issued by the the Institute of Chartered Accountants of India
(ICAI), the said asset is created by way of a credit to the Statement
of Profit and Loss.
1.10 Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present legal or
constructive 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 reliable estimate can be made. Provisions are not
discounted to their present value and are determined based on 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 assets are not recognized.
1.11 Employee Stock Option Schemes
In respect of stock options granted pursuant to the Company''s Stock
Options Scheme, the intrinsic value of the options (excess of the
market price of the share over the exercise price of the option) is
treated as discount and accounted as employee compensation cost over
the vesting period.
1.12 Share and Debenture issue expense
Expenses incurred on issue of shares and debentures are written off
against securities premium account.
1.13 Cash flow statement
The Cash Flow Statement is prepared in accordance with indirect method
as explained in the Accounting Standard on Cash Flow Statements (AS) 3
issued by the ICAI.
1.14 Cash and cash equivalents
Cash and Bank Balances that have insignificant risk of change in value
including term deposits, which have original durations up to three
months, are included in cash and cash equivalents in the Cash Flow
Statement.
1.15 Earnings per share
Basic and diluted earnings per share are computed in accordance with
Accounting Standard-20 Basic earnings per share is calculated by
dividing the net profit or loss after tax for the year attributable to
equity shareholders by the weighted average number of equity shares
outstanding during the year. Diluted earnings per equity share are
computed using the weighted average number of equity shares and
dilutive potential equity shares outstanding during the year, except
where the results are anti-dilutive.
1.16 Impairment of Assets
Tangible fixed assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which
the asset''s carrying amount exceeds its recoverable amount, which is
the higher of the asset''s net selling price or its value in use.
1.17 Commitments
Commitments are future liabilities for contracted expenditure.
Commitments are classified and disclosed as follows:-
a. Estimated amount of contracts remaining to be executed on capital
account are not provided for.
b. Other non cancellable commitments, if any, to the extent they are
considered material and relevant in the opinion of the Management.
1.18 Extraordinary and exceptional items
Income or expenses that arise from events or transactions that are
clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosure of such
events/transactions is made in the financial statements. Similarly, any
external event beyond the control of the Company, significantly
impacting income or expense, is also treated as extraordinary item and
disclosed as such.
On certain occasions, the size, type or incidence of an item of income
or expense, pertaining to the ordinary activities of the Company, is
such that its disclosure improves an understanding of the performance
of the Company. Such income or expense is classified as an exceptional
item and accordingly disclosed in the notes to the financial
statements.
Mar 31, 2013
Not Available.
Mar 31, 2012
1.1 Basis of Accounting:
The financial statements are prepared under historical cost convention
on accrual basis and are in accordance with the requirements of the
Companies Act, 1956.
1.2 Investments:
Non-current investments are valued at cost. Current Investments are
carried at lower of cost and quoted/ fair value, computed category
wise.
1.3 Prior Period Adjustments, Extraordinary items and Changes in
Accounting Policies:
Income and expenditure pertaining to prior period and extraordinary
items and changes in accounting policies, where material are disclosed
separately.
1.4 Revenue Recognition:
Revenue is recognised as per Accounting Standard 9 "Revenue
Recognition" notified by the Companies (Accounting Standards) Rules,
2006. Revenue from service transactions is recognized as the service is
performed and completed. Dividends are recorded when the right to
receive payment is established.
1.5 Taxes on Income:
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961. Deferred tax is recognised on
timing differences between the accounting income and the taxable income
for the year, and quantified using the tax rates and laws enacted as on
the Balance sheet date. Deferred tax assets are recognised and carried
forward to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realised.
2 SHARE CAPITAL :
AUTHORISED:
2,50,000 Equity Shares of Rs.10/- each (Previous year 2,50,000 Equity
Shares of Rs. 10/- each).
Mar 31, 2011
1. Basis of Accounting:
The financial statements are prepared under historical cost convention
on accrual basis and are in accordance with the requirements of the
Companies Act, 1956.
2. Revenue recognition:
Revenue is recognized as per Accounting Standard 9 "Revenue
Recognition" notified by the Companies (Accounting Standards) Rules,
2006. Revenue from service transactions is recognized as the service is
performed and completed.
3. Investments:
Long Term Investments are stated at Cost. Current Investments are
stated at lower of cost or fair value.
4. Earlier Year Expenses and Extraordinary Items:
Income and Expenditure pertaining to earlier years and Extraordinary
Items, where material, are disclosed separately.
5. Taxes on Income:
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961. Deferred tax is recognised on
timing differences between the accounting income and the taxable income
for the year, and quantified using the tax rates and laws enacted as on
the Balance sheet date. Deferred tax assets are recognised and carried
forward to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realised.
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