Mar 31, 2014
The financial statements of the company have been prepared in
accordance with Generally Accepted Accounting Policies in India (Indian
GAAP). The company has prepared these financial statements to comply in
all material respects with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevent provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis under the historical
cost conventon.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous years.
Mar 31, 2013
1 General
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
2. Revenue Recognition
In accordance with provisions of Section 209(3) of the Companies Act,
1956, the company follow accrual system of accounting.
3. Fixed Assets
Fixed assets are stated at their original cost & inclusive' of
incidental and /or installation expense related to acquisition &
installation of the concerned' assets.
4. Depreciation
Depreciation on all Fixed Assets is provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956 on
prorate basis.
5 Investments
All investment other then those specifically classified as current are
considered as long term investments. Long-term investments are carried
at cost and current investments are carried at lower of cost or market
price. Temporary diminution in the value of investments meant to be
held for a long term is not recognized.
6 Valuation of Inventories
Raw Material : At Weighted average cost Consumable & Fuel : At cost (
FIFO )
Finished Goods : At lower of cost or net realizable value
Cost for the purpose of valuation of finished goods includes direct
cost of material, Manufacturing expenses, Depreciation on Plant &
Machinery, Factory Building and Cost of Sawing, Dressing etc.
7. Turnover
Sales include excise duty but does not include sales tax, freight &
handling charges if any realized from customers.
8. Consumption
Consumption of consumable and fuels has been arrived at by adding
purchases to opening stock and deducting dosing stock there from,
9 Employee Benefits
(I) Short term employee benefits are recognized as expenses at the
undiscounted amount in the Profit & Loss Account of the year in which
(lie related service is rendered
(II) Post employment and other long term employee benefits are
recognized as an expenses in the profit & loss account for the year in
which the employee has rendered service expect for leave encashment
which is accounted for at the time of payment The expense is recognize
at the present value of the amount payable determined using actuarial
valuation technique. Actuarial gains and loss in the respect of post
employment and other long term benefits are charges to the profit &
loss Account
10. Royalty
Royally is provided on the basis of dispatch.
11. Taxation
a) Current tax is the provision made for income tax liability if any on
the profits in accordance with the provisions of the Income Tax Act
1961
b) Deferred tax is recognized on timing differences being the
difference resulting from the recognition of items in the financial
statement and in estimating current Income Tax Provision
c) Deferred fax Assets are recognized on unabsorbed depreciation and on
expenses not to be allowed on payment basis as per the Income Tax Act
1961
d) Deferred Tax Assets and Liabilities are measured using the tax rate
and the tax law that have been enacted on the balance sheet date.
12. Foreign Currency Transaction
Transactions denominated in foreign currencies are normally recorded at
exchange rate prevailing at the time of transaction. Foreign currency
monetary items at the year end are reported using the closing rate.
Exchange differences arising on the settlement of monetary items or on
reporting the same at the closing rate as al the balance sheet date are
recognized as income or expenses in the period in which they arise
except in the case of liabilities incurred for the purpose of acquiring
the fixed assets from out side India in which case such exchange
differences are adjusted in the carrying amount of fixed assets.
13. Borrowing Costs
Borrowing cost attributable to the fixed Assets during their const
ruction/ renovation and modernization are capitalized, such borrowing
costs are apportioned on the average basic of capital work in progress
for the year, other borrowing costs are recognized as an expenses in
the which they are incurred.
14. Impairment of Assets
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from continuing use of the assets
and it eventual disposal. The impairment loss to be expensed is
determined as the excess of the Carrying amount over the higher of the
assets net sale price or present value. Management periodically
assesses using external and internal sources whether there is an
indication that an asset may be impaired.
15. Provisions, Contingent Liabilities and contingent Assets
Provision are recognized for liabilities that can be measured only be
using a substantial degree of estimation, if
a) the company has a present obligation as a result of a past event.
b) a probable outflow of recourses is expected to settle the obligation
and
c) the amount of the obligation can be reliably estimated.
Reimbursement expected in respect of expenditure required lo settle a
provision is recognized only when it is virtually certain that the
reimbursement will be received.
Contingent Liability is disclosed in the case of
a) a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, unless the probability of outflow of
resources is remote.
Contingent Assets are neither recognized nor disclosed
Mar 31, 2012
1) General
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
2) Revenue Recognition
In accordance with provisions of Section 209(3) of the Companies Act,
1956, the company follow accrual system of accounting.
3) Fixed Assets
fixed assets are stated at their original cast & inclusive of
incidental and /or installation expense related to acquisition &
installation of the concerned assets.
4) Depreciation
Depreciation on all Fixed Assets is provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956 on
prorate basis.
5) Investments
All investment other then those specifically classified as current are
considered as long-term investments. Long term investments are carried
at cost and current investments are carried at lower of cost or market
price. Temporary diminution in the value of investments meant to be
held for a long term is not recognized.
6) Valuation of Inventories
Raw Material : At Weighted average cost
Consumable & Fuel : At cost (FIFO)
Finished Goods : At lower of cost or net realizable value
Cost for the purpose of valuation of finished goods includes direct
cost of material, Manufacturing expenses, Depreciation on Plant &
Machinery, Factory Building and Cost of Sawing, Dressing etc.
7) Turnover
Sales include excise duty but does not include sales tax, freight &
handling charges if any realized from customers.
8) Consumption
Consumption of consumable and fuels has been arrived at by adding
purchases to opening stock and deducting closing stock there from.
9) Employee Benefits
(i) Short term employee benefits are recognized as expenses at the
undiscounted amount in the Profit & Loss Account of the year in which
the related service is rendered.
(II) Post employment and other long term employee benefits are
recognized as an expenses in the profit & loss account for the year in
which the employee has rendered service expect for leave encashment
which is accounted for at the time of payment. The expense is recognize
at the present value of the amount payable determined using actuarial
valuation technique Actuarial gains and loss in the respect of post
employment and other long term benefits are charges to the profit &
loss Account
10)Royalty
Royalty is provided on the basis of dispatch,
11)Taxation
a) Current tax is the provision made for income tax liability, if any
on the profits in accordance with the provisions of the Income Tax Act,
1961
b) Deferred lax is recognized, on timing differences, being the
difference resulting from the recognition of items in the financial
statement and in estimating current Income Tax Provision
c) Deferred Tax Assets are recognized on unabsorbed depreciation and on
expenses not to be allowed on payment basis as per the Income Tax Act
1961.
d) Deferred Tax Assets and Liabilities are measured using the tax rate
and the tax law that have been enacted on the balance sheet date.
12) Foreign Currency Transaction
Transactions denominated in foreign currencies are normally recorded at
exchange rate prevailing at the time of transaction. Foreign currency
monetary items at the year end are reported using the closing rate.
Exchange differences arising on the settlement of monetary items or on
reporting the same at the closing rate as at the balance sheet date are
recognized as income or expenses in the period in which they arise
except in the case of liabilities incurred for the purpose of acquiring
the fixed assets from out side India In which case such exchange
differences are adjusted in the carrying amount of fixed assets,
13) Borrowing Costs
Borrowing cost attributable to the Fixed Assets during their
construction/renovation and modernization are capitalized, such
borrowing costs are apportioned on the average basic of capital work in
progress for the year, other borrowing costs are recognized as an
expenses in the which they are incurred,
14) Impairment of Assets
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from continuing use of the assets
and it eventual disposal. The impairment loss to be expensed is
determined as the excess of the Carrying amount over the higher of the
assets net sale price or present value. Management periodically
assesses using external and internal sources whether there is an
indication that an asset may be Impaired,
15) Provisions, Contingent Liabilities and contingent Assets
Provision are recognized for liabilities that can be measured only be
using a substantial degree of estimation, if
a) the company has a present obligation as a result of a past event.
b) a probable outflow of recourses is expected to settle the obligation
and
c) the amount of the obligation can be reliably estimated.
Reimbursement expected in respect of expenditure required to settle a
provision is recognized only when it is virtually certain that the
reimbursement will be received.
16) Contingent Liability is disclosed in the case of
a) a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, unless the probability of outflow of
resources is remote.
Contingent Assets are neither recognized nor disdoser
17) Note - Loan from Canara Bank for Plant and Machinery and Stock yard
(Shed) carries interest @12 25% The Loans are repayble in 60
monthlyinstallements.
18) Note - Loan from Tata Capital Financial Services Limited for
Vehicle carries interest @ 7.71% The Loans are repayble in 24 monthly
installements. All the above Loans are Secured by hypothecation of
respective assets
19) In line with the notification dated 31st March, 2009 issued by
The Ministry of Corporate Affairs, amending Accounting Standard AS11
-''Effects of Changes in Foreign Exchange Rates'', the Company has chosen
to exercise the option under paragraph 46 Inserted in the standard by
the notification. Accordingly, the company has adjusted the foreign
currency exchange differences on amounts outstanding for acquisition of
fixed assets, to the carrying cost of fixed assets
20) Debit & Credit Balances appearing under Sundry Debtors, Advance
Receivables in Cash or in Kind , Unsecured Loans, Sundry Creditors are
subject to confirmation & reconciliation, Adjustment, if any, in these
accounts will be made as & when finally reconciled & confirmed. Trade
Receivables & Trade Payables have been taken at their Book Value after
making necessary adjustment on account of foreign exchange fluctuation
except in cases of some old balances lying in account.
21) Contingent Liabilities & Commitments
NIL
22) During the year ended 31 March 2012, the revised Schedule VI
notified under the Companies Act 1956, has become applicable to the
Company, for preparation and presentation of its Financial statements.
The adoption of revised Schedule VI did not have any impart on
recognition and measurement principles followed for preparation of
financial statements. However, it has significantly impacted the
presentation and disclosures made in the financial statements. The
Company has also reclassified the previous year figures in accordance
with the requirements applicable In the current year.
23) which came into force w.e.f. October 2, 2006. The Company is required
to identify the Micro & Small Enterprises & pay them interest on
overdue beyond the specified period irrespective of the terms agreed
with the enterprises. The Company has initiated the process of
identification of such suppliers. In view of no, of suppliers & no
receipt of critical Inputs & response from several such potential
parties, the liability of interest cannot be reliable estimated nor can
required disclosure be made. Accounting in this regard will be carried
out after process is complete and reliable estimate con be made in this
regard. Since the Company is regular in making payments to all
suppliers, the management does not anticipate any significant interest
liability.
24) Previous year figures vave been rearranged / regrouped where
ever considered necessary
25) figures are rounded off to the nearest rupee.
Mar 31, 2011
1 General
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles
2 Revenue Recognition
In accordance with provisions of Section 209(3) of the Companies Act.
1956. the company follow accrual system of accounting
3 Fixed Assets
Fixed assets are stated at their original cost & inclusive of
incidental and /or installation expense related to acquisition &
installation of the concerned assets.
A Depreciation
Depreciation on all Fixed Assets is provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956 on
prorate basis.
5 Investments
All investment other then those specifically classified as current are
considered as long-term investments Long-term investments are carried
at cost and current investments are carried at lower of cost or market
price. Temporary diminution in the value of investments meant to be
held for a long term is not recognized
6 Valuation of Inventories
Raw Material : At Weighted average cost
Consumable & Fuel : At cost ( FIFO )
Finished Goods : At lower of cost or net realizable value
Cost for the purpose of valuation of finished goods includes direct
cost of material. Manufacturing expenses, Depreciation on Plant &
Machinery, Factory Building and Cost of Sawing, Dressing etc.
7. Turnover
Sales include excise duty but does not include sales tax. freight &
handling charges if any realized from customers.
8. Consumption
Consumption of consumable and fuels has been arrived at by adding
purchases to opening stock and deducting closing stock there from.
9 Employee Benefits
(I) Short term employee benefits are recognized as expenses at the
undiscounted amount in the Profit & Loss Account of the year in which
the related service is rendered.
(II) Post employment and other long term employee benefits are
recognized as an expenses in the profit & loss account for the year in
which the employee has rendered service expect for leave encashment
which is accounted for at the time of payment. The expense is recognize
at the present value of the amount payable determined using actuarial
valuation technique Actuarial gains and loss in the respect of post
employment and other long term benefits are charges to the profit &
loss Account
10. Royalty
Royalty is provided on the basis of dispatch.
11. Taxation
a) Current tax is the provision made for income tax liability, if any
on the profits in accordance with the provisions of the Income Tax Act.
1961
b) Deferred tax is recognized, on timing differences, being the
difference resulting from the recognition of items in the financial
statement and in estimating current Income Tax Provision.
c) Deferred Tax Assets are recognized on unabsorbed depreciation and on
expenses not to be allowed on payment basis as per the Income Tax Act
1961.
d) Deferred Tax Assets and Liabilities are measured using the tax rate
and the tax law that have been enacted on the balance sheet date.
12. Foreign Currency Transaction
Transactions denominated in foreign currencies are normally recorded at
exchange rate prevailing at the time of transaction. Foreign currency
monetary items at the year end are reported using the closing rate.
Exchange differences arising on the settlement of monetary items or on
reporting the same at the closing rate as at the balance sheet date are
recognized as income or expenses in the period in which they arise
except in the case of liabilities incurred for the purpose of acquiring
the fixed assets from out side India in which case such exchange
differences are adjusted in the canwig amount of fixed assets
13. Borrowing Costs
Borrowing cost attributable to the fixed Assets during their
construction/renovation and modernization are capitalized, such
borrowing costs are apportioned on the average basic of capital work in
progress for the year, other borrowing costs are recognized as an
expenses in the which they are incurred
14. Impairment of Assets
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from continuing use of the assets
and it eventual disposal The impairment loss to be expensed is
determined as the excess of the Carrying amount over the higher of the
assets net saie price or present value Management periodically assesses
using external and internal sources whether there is an indication that
an asset may be impaired.
15. Provisions, Contingent Liabilities and contingent Assets
Provision are recognized for liabilities that can be measured only be
using a substantial degree of estimation, if
a) the company has a present obligation as a result of a past event.
b) a probable outflow of recourses is expected to settle the obligation
and
c) the amount of the obligation can be reliably estimated.
Reimbursement expected in respect of expenditure required to settle a
provision is recognized only when it is virtually certain that the
reimbursement will be received.
Contingent Liability is disclosed in the case of
a) a present obligation arising from a past event, when-it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, unless the probability of outflow of
resources'is remote.
Contingent Assets are neither recognized nor discloser
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