Mar 31, 2015
A) Use of estimates
The preparation of the financial statements are in conformity with
generally accepted accounting principles (GAAP) requires management to
make estimates and assumptions that affect the reported amount of
assets and liabilities, disclosure of contingent liabilities at the
date of financial statements. The key estimates made by the Company in
preparing these financial statements comprise provision for expenses,
retirement benefits, provision for doubtful debts and income taxes.
Actual results could differ from those estimates. Any revision to the
accounting estimates is recognised prospectively in current and future
periods.
b) Fixed assets, Intangible Assets, Work in Progress and depreciation
Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation and impairment losses, if any. Cost comprises
the purchase price and other costs attributable to bringing the asset
to its working condition for its intended use, net of cenvat
recoverable. Intangible Assets are recognised when it is probable that
the future economic benefits that are attributable to the assets will
flow to the enterprises and he cost of the asset can be measured
reliably.
Capital Work in progress comprises outstanding advances paid to acquire
fixed assets. The cost of fixed assets that is not yet ready for their
intended use at the Balance sheet date.
Depreciation on fixed assets is provided on the Strated Line Methods
(SLM), at the rates and the manner prescribed in Schedule II to the Act
which as per management is representative of the estimated useful life
of these assets. Leasehold improvements are amortised over the primary
lease period. Proportionate depreciation is charged for
additions/deletions during the year. Individual asset costing less than
Rs. 5,000 are depreciated in full in the year of purchase.
c) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. Current
investments are carried at lower of cost and fair value, determined on
an individual investment basis. All other investments are classified as
long-term investments and are carried at cost. However, a provision for
diminution in value is made if the diminution in value is other than
temporary.
d) Inventories
INVENTORIES ARE VALUED AS UNDER:
a) Raw materials, stores and spares and packaging materials: Lower of
cost and net realisable value. Cost is determined on FIFO basis.
b) Finished goods: Lower of cost and net realisable value. Cost
includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods
includes excise duty.
c) Traded goods: Lower of cost and net realisable value. Cost is
determined on FIFO basis.
d) Work-in-process: At cost upto estimated stage of completion. Cost
includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
e) 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.
Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer usually on acceptance
of the goods and other revenue recognition criteria are met and is
stated net of trade discounts, rebates, excise duties, sales returns
and all applicable sales tax and duties.
Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividends
Revenue is recognized when the Companies right to receive the payment
is established.
f) Foreign exchange transactions
Transactions in foreign currencies are recorded at the rates prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are restated at the rate prevailing on the balance sheet date.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
Exchange differences arising on the settlement of monetary items or on
reporting company's monetary items at rates different from those at
which they were initially recorded during the year or reported in the
previous financial statements, are recognised as follows: i Exchange
differences arising on settlement of transactions and translation of
monetary items other than those covered by (ii) below are recognized as
income or expense in the year in which they arise.
g) Export benefits/incentives
Export entitlements under the Duty Entitlement Pass Book scheme
('DEPB') are recognised in the profit and loss account on cash basis in
respect of the exports made. Obligation/entitlements on account of
Advance License Scheme for import of raw materials are accounted for on
the purchase of raw materials and/or export sales.
h) Provisions and contingencies
A provision is recognised when an enterprise has a present obligation
as a result of a past event; 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 are not discounted to
its 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.
i) Employee retirement benefits Defined contribution plan - provident
fund
The employees entitled to receive benefits under the provident fund as
defined, in Employees Provident Fund and Miscellaneous Provisions Act,
1952, receive the benefits of provided fund contribution. Both, the
employee and the employer make monthly contributions to the plan at a
predetermined rate (presently at 12%) of the employees' basic salary.
The Company has no further obligations under the plan beyond its
monthly contributions. These contributions are made to the fund
administered and managed by the Government of India and are charged to
Profit and Loss Account.
j) Taxation
The Charge for current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Indian Income Tax
Act, 1961.
The Charge for Deferred tax assets and liabilities are recognised for
the future tax consequences attributable to timing differences between
the financial statements carrying amounts of existing assets and
liabilities and their respective tax basis. Deferred tax assets and
liabilities are measured using the enacted tax rates or tax rates that
are substantively enacted at the Balance Sheet dates. The effect on
deferred tax assets and liabilities of a change in tax rates is
recognised in the period that includes the enactment date. Where there
is unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty supported by
convincing evidence that they can be realised against future taxable
profits. Other deferred tax assets are recognised only to the extent
there is reasonable certainty of realisation in the future. At each
balance sheet date the Company re-assesses unrecognised deferred tax
assets.
Minimum Alternative 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.
k) Borrowings Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing cost are charged to revenue.
l) Impairment of Assets
At the date of each Balance Sheet, the company evalues internally,
indications of the impairment if any, to the carrying amount of its
fixed and other assets. If any indication does exist, the recoverable
amount is estimated at the higher of the realizable value and the value
in use, as considered appropriate. If the estimated realizable value is
less than the carrying amount, an impairment loss is recognised.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognised to the extent it does not exceed amount that would have been
determined (net of depreciation) had no impairment loss been recognised
for the asset in prior years.
m) Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting applicable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
4. Loans:
a) Secured working capital loans:
These include Cash Credit, Packing Credit and letter of credit facility
from Bank of Baroda secured by way of charge on hypothecation of
inventories and book debts (except specific clearing and forwarding
services receivables) of the Company, situated at Silvasa and Mumbai
office and other Branch . Further, these loans are secured by
collateral charge on factory Building situated at silvassa. Further,
these loans are secured by personal guarantee of Directors, Mr. J.N.
Agawal and Mr. Atin Agarwal. These loans are generally extended for a
period of one year and mutually renewable every year with a clause of
payable on demand.
b) Secured term loans:
These include loans from banks and financial institutions secured by
way of first charge / mortgage in respect of the Company's immovable
and movable properties, both present and future. Presently company has
not obtained any secured terms loan from any bank or the financial
institution.
c) Secured vehicle loans:
These include hire-purchase loans from banks for purchase of various
vehicles secured by way of hypothecation of respective vehicles.
Amounts payable within one year Rs. 43,32,321.30/-(previous year: Rs.
67,07,617.20/-).
d) Unsecured loans:
Working capital requirements obtained from others and is payable within
one year. These loans are generally extended for a period of one year
and mutually renewable every year with a clause of payable on demand.
5. Sundry Creditors
The Company has no details of Small Scale Industrial undertakings &
Micro, Small and Medium Enterprises.
Mar 31, 2014
A) Use of estimates
The preparation of the financial statements are in conformity with
generally accepted accounting principles (GAAP) requires management to
make estimates and assumptions that affect the reported amount of
assets and liabilities, disclosure of contingent liabilities at the
date of financial statements. The key estimates made by the Company in
preparing these financial statements comprise provision for expenses,
retirement benefits, provision for doubtful debts and income taxes.
Actual results could differ from those estimates. Any revision to the
accounting estimates is recognised prospectively in current and future
periods.
b) Fixed assets, Intangible Assets , Work in Progress and depreciation
Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation and impairment losses, if any. Cost comprises
the purchase price and other costs attributable to bringing the asset
to its working condition for its intended use, net of cenvat
recoverable.
Intangible Assets are recognised when it is probable that the future
economic benefits that are attributable to the assets will flow to the
enterprises and he cost of the asset can be measured reliably.
Capital Work in progress comprises outstanding advances paid to acquire
fixed assets. The cost of fixed assets that is not yet ready for their
intended use at the Balance sheet date.
Depreciation on fixed assets is provided on the Written down Value
(WDV), at the rates and the manner prescribed in Schedule XIV to the
Act which as per management is representative of the estimated useful
life of these assets. Leasehold improvements are amortised over the
primary lease period. Proportionate depreciation is charged for
additions/deletions during the year. Individual asset costing less than
Rs 5,000 are depreciated in full in the year of purchase.
c) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. Current
investments are carried at lower of cost and fair value, determined on
an individual investment basis. All other investments are classified as
long-term investments and are carried at cost. However, a provision for
diminution in value is made if the diminution in value is other than
temporary.
d) Inventories:
INVENTORIES ARE VALUED AS UNDER:
a) Raw materials, stores and spares and packaging materials: Lower of
cost and net realisable value. Cost is determined on FIFO basis.
b) Finished goods: Lower of cost and net realisable value. Cost
includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods
includes excise duty.
c) Traded goods: Lower of cost and net realisable value. Cost is
determined on FIFO basis.
d) Work-in-process: At cost upto estimated stage of completion. Cost
includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
e. 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.
Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer usually on acceptance
of the goods and other revenue recognition criteria are met and is
stated net of trade discounts, rebates, excise duties, sales returns
and all applicable sales tax and duties.
Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividends
Revenue is recognized when the Companies right to receive the payment
is established.
f. Foreign exchange transactions
Transactions in foreign currencies are recorded at the rates prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are restated at the rate prevailing on the balance sheet date.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
Exchange differences arising on the settlement of monetary items or on
reporting company''s monetary items at rates different from those at
which they were initially recorded during the year or reported in the
previous financial statements, are recognised as follows:
i Exchange differences arising on settlement of transactions and
translation of monetary items other than those covered by (ii) below
are recognized as income or expense in the year in which they arise.
g) Export benefits/incentives
Export entitlements under the Duty Entitlement Pass Book scheme
(''DEPB'') are recognised in the profit and loss account on cash basis in
respect of the exports made. Obligation/entitlements on account of
Advance License Scheme for import of raw materials are accounted for on
the purchase of raw materials and/or export sales.
h) Provisions and contingencies
A provision is recognised when an enterprise has a present obligation
as a result of a past event; 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 are not discounted to
its 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.
i) Employee retirement benefits
Defined contribution plan - provident fund
The employees entitled to receive benefits under the provident fund as
defined, in Employees Provident Fund and Miscellaneous Provisions Act,
1952, receive the benefits of provided fund contribution. Both, the
employee and the employer make monthly contributions to the plan at a
predetermined rate (presently at 12%) of the employees'' basic salary.
The Company has no further obligations under the plan beyond its
monthly contributions. These contributions are made to the fund
administered and managed by the Government of India and are charged to
Profit and Loss Account.
j) Taxation
The Charge for current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Indian Income Tax
Act, 1961.
The Charge for Deferred tax assets and liabilities are recognised for
the future tax consequences attributable to timing differences between
the financial statements carrying amounts of existing assets and
liabilities and their respective tax basis. Deferred tax assets and
liabilities are measured using the enacted tax rates or tax rates that
are substantively enacted at the Balance Sheet dates. The effect on
deferred tax assets and liabilities of a change in tax rates is
recognised in the period that includes the enactment date. Where there
is unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty supported by
convincing evidence that they can be realised against future taxable
profits. Other deferred tax assets are recognised only to the extent
there is reasonable certainty of realisation in the future. At each
balance sheet date the Company re-assesses unrecognised deferred tax
assets. Minimum Alternative 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.
k) Borrowings Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing cost are charged to revenue.
l) Impairment of Assets
At the date of each Balance Sheet, the company evalues internally,
indications of the impairment if any, to the carrying amount of its
fixed and other assets. If any indication does exist, the recoverable
amount is estimated at the higher of the realizable value and the value
in use, as considered appropriate. If the estimated realizable value is
less than the carrying amount, an impairment loss is recognised.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognised to the extent it does not exceed amount that would have been
determined (net of depreciation) had no impairment loss been recognised
for the asset in prior years.
m) Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting applicable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2013
A. Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles (GAAP) requires management to
make estimates and assumptions that affect the reported amount of
assets and liabilities, disclosure of contingent liabilities at the
date of financial statements. The key estimates made by the Company in
preparing these financial statements comprise provision for expenses,
retirement benefits, provision for doubtful debts and income taxes.
Actual results could differ from those estimates. Any revision to the
accounting estimates is recognised prospectively in current and future
periods.
b. Fixed assets and depreciation
Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation and impairment losses, if any. Cost comprises
the purchase price and other costs attributable to bringing the asset
to its working condition for its intended use, net of cenvat
recoverable.
Intangible Assets are recognised when it is probable that the future
economic benefits that are attributable to the assets will flow to the
enterprises and he cost of the asset can be measured reliably.
Capital Work in progress comprises outstanding advances paid to acquire
fixed assets. The cost of fixed assets that is not yet ready for their
intended use at the Balance sheet date.
Depreciation on fixed assets is provided on the Written down Value
(WDV), at the rates and the manner prescribed in Schedule XIV to the
Act which as per management is representative of the estimated useful
life of these assets. Leasehold improvements are amortised over the
primary lease period. Proportionate depreciation is charged for
additions/deletions during the year. Individual asset costing less than
Rs 5,000 are depreciated in full in the year of purchase.
c. Investments
IInvestments that are readily realisable and intended to be held for
not more than a year are classified as current investments. Current
investments are carried at lower of cost and fair value, determined on
an individual investment basis. All other investments are classified as
long-term investments and are carried at cost. However, a provision for
diminution in value is made if the diminution in value is other than
temporary.
d. Inventories
Inventories are valued as under:
a) Raw materials, stores and spares and packaging materials: Lower of
cost and net realisable value. Cost is determined on FIFO basis.
b) Finished goods: Lower of cost and net realisable value. Cost
includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods
includes excise duty.
c) Traded goods: Lower of cost and net realisable value. Cost is
determined on FIFO basis.
d) Work-in-process: At cost upto estimated stage of completion. Cost
includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity..
Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
e. 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.
Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer usually on acceptance
of the goods and other revenue recognition criteria are met and is
stated net of trade discounts, rebates, excise duties, sales returns
and all applicable sales tax and duties.
Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividends
Revenue is recognized when the Companies right to receive the payment
is established.
f. Foreign exchange transactions
Transactions in foreign currencies are recorded at the rates prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are restated at the rate prevailing on the balance sheet date.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
Exchange differences arising on the settlement of monetary items or on
reporting company''s monetary items at rates different from those at
which they were initially recorded during the year or reported in the
previous financial statements, are recognised as follows::
i) Exchange differences arising on settlement of transactions and
translation of monetary items other than those covered by (ii) below
are recognized as income or expense in the year in which they arise.
g. Export benefits/incentives
Export entitlements under the Duty Entitlement Pass Book scheme
(''DEPB'') are recognised in the profit and loss account on cash basis in
respect of the exports made. Obligation/entitlements on account of
Advance License Scheme for import of raw materials are accounted for on
the purchase of raw materials and/or export sales.
h. Provisions and contingencies
A provision is recognised when an enterprise has a present obligation
as a result of a past event; 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 are not discounted to
its 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.
i. Employee retirement benefits
Defined contribution plan - provident fund
The employees entitled to receive benefits under the provident fund as
defined, in Employees Provident Fund and Miscellaneous Provisions Act,
1952, receive the benefits of provided fund contribution. Both, the
employee and the employer make monthly contributions to the plan at a
predetermined rate (presently at 12%) of the employees'' basic salary.
The Company has no further obligations under the plan beyond its
monthly contributions. These contributions are made to the fund
administered and managed by the Government of India and are charged to
Profit and Loss Account.
j. Taxation
The Charge for current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Indian Income Tax
Act, 1961.
The Charge for Deferred tax assets and liabilities are recognised for
the future tax consequences attributable to timing differences between
the financial statements carrying amounts of existing assets and
liabilities and their respective tax basis. Deferred tax assets and
liabilities are measured using the enacted tax rates or tax rates that
are substantively enacted at the Balance Sheet dates. The effect on
deferred tax assets and liabilities of a change in tax rates is
recognised in the period that includes the enactment date. Where there
is unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty supported by
convincing evidence that they can be realised against future taxable
profits. Other deferred tax assets are recognised only to the extent
there is reasonable certainty of realisation in the future. At each
balance sheet date the Company re-assesses unrecognised deferred tax
assets.
Minimum Alternative 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.
k. Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting applicable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2009
A) Basis of Preparation of Financial Statmentc :
The fincical statement are prepared under historical cost convention in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956. The Company generally follows
mercantile system of accounting and recognises significant items of
Income and Expenditure on accural basis.
b) Use of Estimates :
The presentation of financial statements require estimates and
assumptions to be made which affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of income and expenses during the reporting period.Diftrence
between the actual results and estimates are recognised in the period
in which the results are known.
c) Fixed Assets and Depreciation :
(i) Fixed Assets are stated at cost of acqsition and net of CENVAT
including the amount of accumulated depreciation
(ii) Depreciation on fixed assets has been provided on written down
value method at the rates specified in Schedule XIV of the Companies
Act, 1956, read with Section 205(2)(a). Depreciation in respect of
addition to assets has been charged on pro-rata basis with reference
to the period of use of such assets.
d) Investments:
Investments are stated at Cost.
e) Inventories:
1) Stock of finished goods are valued at cost or net realisable value
whichever is lower. For this purpose, stocks in respect of which Excise
Duty is paid valued at cost including Excise Duty.
2) Raw mateials and Packng materials, at cost
3) Motor and Spare parts, at cost
4) During the year due to fire company has a net Loss of Material
Rs.1,39,69,927/- after considration of insurance claim, and it has been
duly deducation from the Stock.
f) Revenue Recogintion :
Sales are recognised on the despatch of goods to customers & are
Exclusive of Sales tax.
g) Debit/Credit Notes :
Debit and Credit Notes are accounted for on cash basis.
h) Provisions,Contingent Liabilities, Contingent Assets :
1) The Company recognises a provision when there is a present obligatin
as a result of past events and it is probable that there will be an
outflow of resources to settle the obligation in respect of which
reliable estimates can be made.
2) All liabilities have been provided for in the accouts excepts
liabilites of a contingent nature, or as per the terms of contract or
arrangement, and, have been disclosed wherever necessary.
3) Contingent assets are neither recognised nor disclosed.
i) Foreign Currancy Transaction :
All transactions in foreign currencies are recorded on the basis of
actual payment/realisation.
j) Employee Retirement Benefit:
All short term benefits like such as salaries, wages, bonus,
allowances, medicals, which fall due within 12 months of the period in
which the employee renders the related services which entitles him to
avail such benefits and non accumulating componsted absences [like sick
leave and maternity leave] are recognised on an undiscounted basis and
charge to profit & loss account.
Defined Contribution Plan :
Companys contributions paid / payable during the year to provident
fund are charged to profit & loss account.
k) Taxation:
1) Current Tax is determined at the current rates based on assessable
income.
2) Deferred Tax is determined using the rates and tax laws that have
been enacted or substantively enacted by the Balance Sheet date.
Deferred tax are recognised and carried forward only if there is
reasonable certainty of its realization.However in case of carried
forward losses and unabsorbed depreciation under the Income Tax Avt,
1961, The Deferred Tax Assets is recognised if and only if there is
virtual certainty backed by convenincing evidence of its realization.
Such assets are reviewed at each Balance Sheet date to reassess its
realization.
3) Provision for Fringe Benefit Tax is made in accordance with the
provision of Incomr Tax Act, 1961.
l) Amortisation of Preliminary Expenses :
Preliminary expenses are amortised one fifth of the expenditure every
year.