Mar 31, 2014
(a) ACCOUNTING CONCEPTS
i) The accounts are prepared on historical cost convention and in
accordance with applicable Accounting standards except where otherwise
stated. For recognition of Income and Expenses, Mercantile System of
Accounting is followed,
(b) REVENUE RECOGNITION
I. Rending of services: "Income from services is included in turnover
when the contractual commitment to the customer has been fulfilled and
are net of trade discounts, service tax and works contract tax".
II. Interest Income: "interest income is recognized on time proportion
basis taking into account amount outstanding and the rate applicable."
III. Dividend Income: "Dividend income on investments is recognized
when the right to receive payment is established
(c) FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The cost
of an asset comprises its purchase price and any directly attributable
cost of bringing the asset to working condition for its intended use.
(d) DEPRECIATION
Depreciation is provided on Straight Line Method at rates specified in
Schedule XIV of the Companies Act, 1956 as amended vide notification
dated 16th December, 1993 issued by the Department of Company Affairs,
Government of India.
(e) FOREIGN CURRENCY TRANSACTIONS
Transactions arising in foreign currency are accounted for at the rates
closely approximating those ruling on the transaction date.
Amounts payable and receivable in foreign currency are translated at
the exchange rate prevailing on the balance sheet date. In respect of
forward contract, the forward premium or discount is recognized as
income and expenses over the life of contract in the profit and loss
account and exchange difference between the exchange rate prevailing at
the year end and the date of the inception of the forward exchange
contract is recognized as income or expenses in the Profit & Loss
Account.
(f) RETIREMENT BENEFITS:
a) Contribution to defined contribution scheme such as Provident Fund
is charged to the profit & loss account as incurred.
b) The provision for Gratuity and Leave with wages liability are based
on actuarial valuation.
c) Company provides for privilege leaves not availed of by the
employees at the end of the year.
(g) AMORTISATION OF MISCELLANEOUS EXPENDITURE
Preliminary and Share issue expenses are amortized over a period of
five years.
(h) LEASES
Finance Leases, which effectively transfer to the Lessee substantially
all risks and benefits incidental to ownership of the leased item, are
capitalized at the inception of the lease period at the lower of the
fair value and present value of the minimum lease payments at the
inception of the lease term by credit to liability for an equivalent
amount. Lease payments are apportioned between the Finance charges and
reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of the liability.
(i) Borrowing Cost :
Borrowing costs that are directly 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 necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are recognized as expense in the statement of profit
and loss in the period in which they are incurred.
(j) Provisions, Contingent Liabilities and Contingent Assets :
Provision 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 out flow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes.
Contingent Assets are neither recognized nor disclosed in the financial
statements
(k) Use of Estimates : "The preparation of financial statements
requires management to make judgments, estimates and assumptions, that
affect the application of accounting policies and the reported amounts
of assets, liabilities, income, expenses and disclosures of contingent
liabilities at the date of these financial statements and profit & loss
statement for the years presented. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed at each
balance sheet date. Revisions to accounting estimates are recognised in
the period in which the estimate is revised and future periods
affected."
(l) Investments : Investments are classified into current and long term
investments. Investments are readily realizable and are 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 investment". Current
investments are stated at the lower of cost and fair value. Long term
investments are stated at cost. A provision for diminution is made to
recognise a decline, other than temporary, in the value of long term
investments.
(m) Income Taxes :
I. Current Tax is the tax payable for the period determined in
accordance with the provisions of the income tax act 1961. In case of
matters under appeal due to disallowance or otherwise, provision is
made when the said liabilities are accepted by the company.
II. In accordance with the AS 22- " Accounting for taxes on Income",
the deferred tax for the timing difference between taxable income and
accounting income, that originate in one period and capable of reversal
in one or more subsequent periods, is accounted for using the tax laws
that have been enacted or substantially enacted as of the Balance Sheet
date. Deferred tax assets are recognised only to the extent there is
reasonable certainty of realization in future. However, when there is
unabsorbed depreciation or carry forward of losses under taxation laws,
deferred tax assets are recognised only if there is virtual certainty
realization of such assets. Such assets are reviewed at each balance
sheet date for realisability.
(n) Cenvat Credit : Cenvat credit on raw materials and capital goods
has been accounted for by reducing the purchase cost of raw materials
and capital goods respectively.
(o) Impairment of Assets
At each Balance Sheet, an assessment is made whether any indication
exists that an asset has been impaired. If any such indication exists,
an impairment loss i.e the amount by which the carrying amount of an
asset exceeds its recoverable amount is provided in books of accounts.
Mar 31, 2013
(a) ACCOUNTING CONCEPTS
i) The accounts are prepared on historical cost convention and in
accordance with applicable Accounting standards except where otherwise
stated. For recognition of Income and Expenses, Mercantile System of
Accounting is followed.
(b) REVENUE RECOGNITION
Revenue from sale of goods is recognised upon passage of title to the
customers, which generally coincides with their delivery.
(c) FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The cost
of an asset comprises its purchase price and any directly attributable
cost of bringing the asset to working condition for its intended use.
(d) DEPRECIATION
Depreciation is provided on Straight Line Method at rates specified in
Schedule XIV of the Companies Act, 1956 as amended vide notification
dated 16th December, 1993 issued by the Department of Company Affairs,
Government of India.
(e) FOREIGN CURRENCY TRANSACTIONS
Transactions arising in foreign currency are accounted for at the rates
closely approximating those ruling on the transaction date.
Amounts payable and receivable in foreign currency are translated at
the exchange rate prevailing on the balance sheet date. In respect of
forward contract, the forward premium or discount is recognized as
income and expenses over the life of contract in the profit and loss
account and exchange difference between the exchange rate prevailing at
the year end and the date of the inception of the forward exchange
contract is recognized as income or expenses in the Profit & Loss
Account.
(f) EXCISE DUTY
The Company accounts for excise duty on manufactured goods at the time
of their clearance from the factory rather than at the point of
manufacture. This has, however, no impact on the operating results of
the Company.
(g) INVENTORIES
Inventories are valued as follows:
Raw Material - at lower of cost or net realizable value
Stores & Spare Parts - at lower of cost or net realizable value
Goods Under Process - at lower of cost or net realizable value
Finished Goods - at lower of cost or net realizable value
Cost is determined using FIFO Method (h) RETIREMENT BENEFITS:
a) Contribution to defined contribution scheme such as Provident Fund
is charged to the profit & loss account as incurred.
b) The provision for Gratuity and Leave with wages liability are based
on actuarial valuation.
c) Company provides for privilege leaves not availed of by the
employees at the end of the year.
(i) AMORTISATION OF MISCELLANEOUS EXPENDITURE
Preliminary and Share issue expenses are amortised over a period of
five years.
(j) Finance Leases, which effectively transfer to the Lessee
substantially all risks and benefits incidental to ownership of the
leased item, are capitalized at the inception of the lease period at
the lower of the fair value and present value of the minimum lease
payments at the inception of the lease term by credit to liability for
an equivalent amount. Lease payments are apportioned between the
Finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability.
(k) Impairment of Assets
At each Balance Sheet an assessment is made whether any indication
exists that an asset has been impaired. If any such indication exists,
an impairment loss i.e the amount by which the carrying amount of an
asset exceeds its recoverable amount is provided in books of accounts.
Mar 31, 2012
(a) ACCOUNTING CONCEPTS
i) The accounts are prepared on historical cost convention and in
accordance with applicable Accounting standards except where otherwise
stated. For recognition of Income and Expenses, Mercantile System of
Accounting is followed.
(b) REVENUE RECOGNITION
Revenue from sale of goods is recognised upon passage of title to the
customers, which generally coincides with their delivery.
(c) FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The cost
of an asset comprises its purchase price and any directly attributable
cost of bringing the asset to working condition for its intended use.
(d) DEPRECIATION
Depreciation is provided on Straight Line Method at rates specified in
Schedule XIV of the Companies Act, 1956 as amended vide notification
dated 16th December, 1993 issued by the Department of Company Affairs,
Government of India.
(e) FOREIGN CURRENCY TRANSACTIONS
Transactions arising in foreign currency are accounted for at the rates
closely approximating those ruling on the transaction date.
Amounts payable and receivable in foreign currency are translated at
the exchange rate prevailing on the balance sheet date. In respect of
forward contract, the forward premium or discount is recognized as
income and expenses over the life of contract in the profit and loss
account and exchange difference between the exchange rate prevailing at
the year end and the date of the inception of the forward exchange
contract is recognized as income or expenses in the Profit & Loss
Account.
(f) EXCISE DUTY
The Company accounts for excise duty on manufactured goods at the time
of their clearance from the factory rather than at the point of
manufacture. This has, however, no impact on the operating results of
the Company.
(g) INVENTORIES
Inventories are valued as follows:
Raw Material - at lower of cost or net realizable value
Stores & Spare Parts - at lower of cost or net realizable value
Goods Under Process - at lower of cost or net realizable value
Finished Goods - at lower of cost or net realizable value
Cost is determined using FIFO Method
(h) RETIREMENT BENEFITS:
a) Contribution to defined contribution scheme such as Provident Fund
is charged to the profit & loss account as incurred.
b) The provision for Gratuity and Leave with wages liability are based
on actuarial valuation.
c) Company provides for privilege leaves not availed of by the
employees at the end of the year.
(i) AMORTISATION OF MISCELLANEOUS EXPENDITURE
Preliminary and Share issue expenses are amortised over a period to
five years.
(j) Finance Leases, which effectively transfer to the Lessee
substantially all risks and benefits incidental to ownership of the
leased item, are capitalized at the inception of the lease period at
the lower of the fair value and present value of the minimum lease
payments at the inception of the lease term by credit to liability for
an equivalent amount. Lease payments are apportioned between the
Finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability.
(k) Impairment of Assets
At each Balance Sheet an assessment is made whether any indication
exists that an asset has been impaired. If any such indication exists,
an impairment loss i.e the amount by which the carrying amount of an
asset exceeds its recoverable amount is provided in books of accounts.
Mar 31, 2010
(a) ACCOUNTING CONCEPTS
The accounts are prepared on historical cost convention and in
accordance with applicable Accounting standards except where otherwise
stated. For recognition of Income and Expenses, Mercantile System of
Accounting is followed.
(b) REVENUE RECOGNITION
Revenue from sale of goods is recognised upon passage of title to the
customers, which generally coincides with their delivery.
(c) FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. The cost
of an asset comprises its purchase price and any directly attributable
cost of bringing the asset to working condition for its intended use.
(d) DEPRECIATION
Depreciation is provided on Straight Line Method at rates specified in
Schedule XIV of the Companies Act, 1956 as amended vide notification
dated 16th December, 1993 issued by the Department of Company Affairs,
Government of India.
(e) FOREIGN CURRENCY TRANSACTIONS
Transactions arising in foreign currency are accounted for at the rates
closely approximating those ruling on the transaction date.
Amounts payable and receivable in foreign currency are translated at
the exchange rate prevailing on the balance sheet date. In respect of
forward contract, the forward premium or discount is recognized as
income and expenses over the life of contract in the profit and loss
account and exchange difference between the exchange rate prevailing at
the year end and the date of the inception of the forward exchange
contract is recognized as income or expenses in the Profit & Loss
Account.
(f) EXCISE DUTY
The Company accounts for excise duty on manufactured goods at the time
of their clearance from the factory rather than at the point of
manufacture. This has, however, no impact on the operating results of
the Company.
(g) INVENTORIES
Inventories are valued as follows:
Raw Material - at lower of cost or net realizable value
Stores & Spare
Parts - at lower of cost or net realizable value
Goods Under
Process - at lower of cost or net realizable value
Finished Goods - at lower of cost or net realizable value
Cost is determined using FIFO Method
(h) RETIREMENT BENEFITS:
Gratuity & Leave Encashment
The provisions in accounts of Gratuity and Leave encashment liability
are based on actuarial valuation. Provident Fund Regular monthly
contributions are made to Provident Funds, which are charged against
revenue.
(i) AMORTISATION OF MISCELLANEOUS EXPENDITURE
Preliminary and Share issue expenses are amortised over a period to
five years.
(j) Finance Leases, which effectively transfer to the Lessee
substantially all risks and benefits incidental to ownership of the
leased item, are capitalized at the inception of the lease period at
the lower of the fair value and present value of the minimum lease
payments at the inception of the lease term by credit to liability for
an equivalent amount. Lease payments are apportioned between the
Finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability.
(j) Impairment of Assets
At each Balance Sheet an assessment is made whether any indication
exists that an asset has been impaired. If any such indication exists,
an impairment loss i.e the amount by which the carrying amount of an
asset exceeds its recoverable amount is provided in books of accounts.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article