Mar 31, 2015
I. Corporate Information
JRI Industries & Infrastructure Limited ('the Company') was
incorporated in India on 30th October, 1964. The equity shares of the
Company are listed in India on the Bombay stock exchange (BSE Limited).
The Company is primarily engaged in the Construction Activities and the
management of the Company is building up the team to improve its
decisions and increase the value of the stakeholders and also continues
to focus on exploring opportunities in the infrastructure sector.
II. Presentation and Disclosure of Financial Statements:
The financial statements of the company have been prepared in
accordance with Generally Accepted Accounting Principles in India
(Indian GAAP) under the historical cost convention on a going concern
basis. Pursuant to Section 133 of the Companies Act, 2013 and Rule 7
of the Companies (Accounts) Rules, 2014, till the standards of
accounting or any addendum thereto are prescribed by Central Government
in consultation and recommendation of the National Financial Reporting
Authority, the Company will continue to apply the Accounting Standards
notified under Section 211(3C) of the Companies Act, 1956; the
Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 2013.
All the assets and Liabilities have been classified as current or
non-current as per the criteria set out in Schedule III to the
Companies Act, 2013. The accounting policies, in all material respects,
have been consistently applied by the Company and are consistent with
those used in the previous year, except to the extent stated in Note 3
below.
III. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities as of the date of the financial statements and reported
amounts of income and expenses during the period. Management believes
that the estimates used in the preparation of financial statements are
prudent and reasonable. Actual results could differ from the estimates.
IV. Fixed Assets
Fixed assets are stated at cost of acquisition or construction or at
revalued amounts less accumulated depreciation, amortization and
impairment losses, if any.
V. Impairment of Fixed Assets:
The carrying amounts of the assets, except for inventories, are
reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indication exists, the assets
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of the asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses, if any, are
recognised in the income statement.
VI. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
VII. Depreciation/ Amortisation:
Depreciation on assets is provided using Straight Line Method at the
rates prescribed under the Companies Act.
VIII. Revenue Recognition
Revenue /Income and Cost/Expenditure are generally accounted for on
accrual as they are earned or incurred, except, in case of significant
uncertainties.
IX. Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand and short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
X. Earnings per Share
Basic Earnings Per Equity Share is computed by dividing the net profit
or loss after tax by the weighted average number of Equity Shares
outstanding during the year. Diluted earnings per equity share is
computed by dividing adjusted net profit after tax by the aggregate of
weighted average number of equity shares and dilutive potential equity
shares outstanding during the year.
XI. Taxation
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred Tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits. At each balance sheet date the Company
re-assesses unrecognised deferred tax assets. It recognizes
unrecognised deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realised. The carrying amount of deferred
tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax assets to the extent
that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised.
XII. Retirement Benefits
No provisions are made for retirement benefit i.e gratuity, Provident
fund contribution. The same if any will be considered in the year of
its payment.
XIII. Provisions and Contingencies
Provision involving substantial degree of estimation in measurement is
recognize when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources. It is
determined based on Management estimates required to settle the
obligation at the Balance Sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current Management
estimate; Contingent liabilities are not recognized but are disclosed
in the notes.
Mar 31, 2014
I. Accounting Convention
The financial statements are prepared under historical cost convention,
on accrual basis, on the principles of going concern, in accordance
with the generally accepted accounting principles, the relevant
accounting standards and the relevant guidance notes issued by the
Institute of Chartered Accountants of India (ICAI), the applicable
provisions of the Companies Act, 1956 and the Companies Act, 2013 to
the extent notified.
II. Presentation and Disclosure of Financial Statements:
The preparation of Financial Statements is in compliance with the
revised Schedule VI notified under the Companies Act, 1956 and the
Companies Act, 2013 to the extent notified.
III. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities as of the date of the financial statements and reported
amounts of income and expenses during the period. Management believes
that the estimates used in the preparation of financial statements are
prudent and reasonable. Actual results could differ from the estimates.
IV. Fixed Assets
Fixed assets are stated at cost of acquisition or construction or at
revalued amounts less accumulated depreciation, amortization and
impairment losses, if any.
V. Impairment of Fixed Assets:
The carrying amounts of the assets, except for inventories, are
reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indication exists, the assets
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of the asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses, if any, are
recognised in the income statement.
VI. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
VII. Depreciation/ Amortisation:
Depreciation on assets is provided using Straight Line Method at the
rates prescribed under schedule XIV of the Companies Act, 1956.
VIII. Revenue Recognition
Revenue /Income and Cost/Expenditure are generally accounted for on
accrual as they are earned or incurred, except, in case of significant
uncertainties.
IX. Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand and short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
X. Earnings per Share
Basic Earnings Per Equity Share is computed by dividing the net profit
or loss after tax by the weighted average number of Equity Shares
outstanding during the year. Diluted earnings per equity share is
computed by dividing adjusted net profit after tax by the aggregate of
weighted average number of equity shares and dilutive potential equity
shares outstanding during the year.
XI. Taxation
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred Tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits. At each balance sheet date the Company
re-assesses unrecognised deferred tax assets. It recognizes
unrecognised deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realised. The carrying amount of deferred
tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax assets to the extent
that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised.
XII. Retirement Benefits
No provisions are made for retirement benefit i.e gratuity, Provident
fund contribution. The same if any will be considered in the year of
its payment.
XIII. Provisions and Contingencies
Provision involving substantial degree of estimation in measurement is
recognize when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources. It is
determined based on Management estimates required to settle the
obligation at the Balance Sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current Management
estimate; Contingent liabilities are not recognized but are disclosed
in the notes.
Mar 31, 2013
I. Accounting Convention
The accompanying financial statements have been prepared under the
historical cost convention, in accordance with generally accepted
accounting principles and the provisions of the Companies Act, 1956 and
the applicable accounting standards. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
II. Presentation and Disclosure of Financial Statements:
The preparation of Financial Statements is in compliance with the
revised Schedule VI notified under the Companies Act, 1956.
III. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities as of the date of the financial statements and reported
amounts of income and expenses during the period. Management believes
that the estimates used in the preparation of financial statements are
prudent and reasonable. Actual results could differ from the estimates.
IV. Fixed Assets
Fixed assets are stated at cost of acquisition or construction or at
revalued amounts less accumulated depreciation, amortization and
impairment losses, if any.
V. Impairment of Fixed Assets:
The carrying amounts of the assets, except for inventories, are
reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indication exists, the assets
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of the asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses, if any, are
recognised in the income statement.
VI. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
VII. Depreciation/ Amortisation:
Depreciation on assets is provided using Straight Line Method at the
rates prescribed under schedule XIV of the Companies Act, 1956.
VIII. Revenue Recognition
Revenue /Income and Cost/Expenditure are generally accounted for on
accrual as they are earned or incurred, except, in case of significant
uncertainties.
IX. Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand and short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
X. Earnings per Share
The Company reports basic and diluted earnings per share in accordance
with AS-20 "Earnings per Share". Basic earnings per share are
computed by dividing the net profit or loss for the period by the
weighted average number of Equity Shares outstanding during the period.
Diluted earnings per share is computed by dividing the net profit or
loss for the period by the weighted average number of Equity Shares
outstanding during the period as adjusted for the effects of all
dilutive potential equity shares.
XI. Taxation
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred Tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits. At each balance sheet date the Company
re-assesses unrecognised deferred tax assets. It recognizes
unrecognised deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realised. The carrying amount of deferred
tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax assets to the extent
that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised.
XII. Retirement Benefits
No provisions are made for retirement benefit i.e gratuity, Provident
fund contribution. The same if any will be considered in the year of
its payment.
XIII. Provisions and Contingencies
Provision involving substantial degree of estimation in measurement is
recognize when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources. It is
determined based on Management estimates required to settle the
obligation at the Balance Sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current Management
estimate; Contingent liabilities are not recognized but are disclosed
in the notes.
Mar 31, 2012
I. Accounting Convention
The accompanying financial statements have been prepared under the
historical cost convention, in accordance with generally accepted
accounting principles and the provisions of the Companies Act, 1956 and
the applicable accounting standards. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
II. Presentation and Disclosure of Financial Statements:
During the year ended 31st 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 new Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements.
III. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities as of the date of the financial statements and reported
amounts of income and expenses during the period. Management believes
that the estimates used in the preparation of financial statements are
prudent and reasonable. Actual results could differ from the estimates.
IV. Fixed Assets
Fixed assets are stated at cost of acquisition or construction or at
revalued amounts less accumulated depreciation, amortization and
impairment losses, if any.
V. Impairment of Fixed Assets:
The carrying amounts of the assets, except for inventories, are
reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indication exists, the assets
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of the asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses, if any, are
recognised in the income statement.
VI. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
VII. Depreciation/Amortisation:
Depreciation on assets is provided using Straight Line Method at the
rates prescribed under schedule XIV of the Companies Act, 1956.
VIII. Revenue Recognition
Revenue /Income and Cost/Expenditure are generally accounted for on
accrual as they are earned or incurred, except, in case of significant
uncertainties.
IX. Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand and short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
X. Earnings per Share
The Company reports basic and diluted earnings per share in accordance
with AS-20 "Earnings per Share". Basic earnings per share are computed
by dividing the net profit or loss for the period by the weighted
average number of Equity Shares outstanding during the period. Diluted
earnings per share is computed by dividing the net profit or loss for
the period by the weighted average number of Equity Shares outstanding
during the period as adjusted for the effects of all dilutive potential
equity shares.
XI. Taxation
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred Tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits. At each balance sheet date the Company
re-assesses unrecognised deferred tax assets. It recognizes
unrecognised deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realised. The carrying amount of deferred
tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax assets to the extent
that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised.
XII. Retirement Benefits
No provisions are made for retirement benefit i.e gratuity, Provident
fund contribution. The same if any will be considered in the year of
its payment.
XIII. Provisions and Contingencies
Provision involving substantial degree of estimation in measurement is
recognize when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources. It is
determined based on Management estimates required to settle the
obligation at the Balance Sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current Management
estimate; Contingent liabilities are not recognized but are disclosed
in the notes.
Mar 31, 2011
I. Accounting Convention :
The accompanying financial statements have been prepared under the
historical cost convention, in accordance with generally accepted
accounting principles and the provisions of the Companies Act, 1956 and
the applicable accounting standards. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
II. Use of Estimates :
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities as of the date of the financial statements and reported
amounts of income and expenses during the period. Management believes
that the estimates used in the preparation of financial statements are
prudent and reasonable. Actual results could differ from the estimates.
III. Fixed Assets :
Fixed assets are stated at cost of acquisition or construction or at
revalued amounts less accumulated depreciation, amortization and
impairment losses, if any.
IV. Impairment of Fixed Assets :
The carrying amounts of the assets, except for inventories, are
reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indication exists, the assets
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of the asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses, if any, are
recognised in the income statement.
V. Borrowing Costs :
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
VI. Depreciation/ Amortisation :
Depreciation on assets is provided using written down value method at
the rates prescribed under schedule XIV of the Companies Act, 1956,
which is also estimated by the management to be the estimated useful
lives of the assets.
Leasehold land and leasehold improvements are amortised over the
remaining primary period of lease or their estimated useful life,
whichever is shorter, on a straight-line basis.
VII. 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 market value whichever is
less.
All other investments are classified as long-term investments.
Long-term investments are carried at cost, less provision for
diminution in value other than temporary.
VIII. Inventories :
Finished Products are valued at estimated cost or net realizable value
whichever is lower. Finished goods include costs incurred in bringing
the inventories to the present location and condition. Estimated
realizable value is calculated on the basis of current selling price
less the normal selling expenses incurred in making the sale.
IX. Revenue Recognition :
Revenue /Income and Cost/Expenditure are generally accounted for on
accrual as they are earned or incurred, except, in case of significant
uncertainties.
X. Cash and Cash Equivalents :
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand and short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
XI. Earnings per Share :
The Company reports basic and diluted earnings per share in accordance
with AS-20 "Earnings per Share". Basic earnings per share are computed
by dividing the net profit or loss for the period by the weighted
average number of Equity Shares outstanding during the period. Diluted
earnings per share is computed by dividing the net profit or loss for
the period by the weighted average number of Equity Shares outstanding
during the period as adjusted for the effects of all dilutive potential
equity shares.
XII. Taxation :
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits. At each balance sheet date the Company
re- assesses unrecognised deferred tax assets. It recognizes
unrecognised deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realised. The carrying amount of deferred
tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax assets to the extent
that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised.
XIII. Retirement Benefits :
No provisions are made for retirement benefit i.e gratuity, Provident
fund contribution. The same will be considered in the year of its
payment
XIV. Provisions and Contingencies :
Provision involving substantial degree of estimation in measurement is
recognize when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources. It is
determined based on Management estimates required to settle the
obligation at the Balance Sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current Management
estimate; Contingent liabilities are not recognized but are disclosed
in the notes
Mar 31, 2010
I. Accounting Convention
The accompanying financial statements have been prepared under the
historical cost convention, in accordance with generally accepted
accounting principles and the provisions of the Companies Act, 1956 and
the applicable accounting standards. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
II. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities as of the date of the financial statements and reported
amounts of income and expenses during the period. Management believes
that the estimates used in the preparation of financial statements are
prudent and reasonable. Actual results could differ from the estimates.
III. Fixed Assets
Fixed assets are stated at cost of acquisition or construction or at
revalued amounts less accumulated depreciation, amortization and
impairment losses, if any.
IV. Impairment of Fixed Assets:
The carrying amounts of the assets, except for inventories, are
reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indication exists, the assets
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of the asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses, if any, are
recognised in the income statement.
V. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
VI. Depreciation/ Amortisation:
Depreciation on assets is provided using written down value method at
the rates prescribed under schedule XIV of the Companies Act, 1956,
which is also estimated by the management to be the estimated useful
lives of the assets.
Leasehold land and leasehold improvements are amortised over the
remaining primary period of lease or their estimated useful life,
whichever is shorter, on a straight-line basis.
VII. 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 market value whichever is
less.
All other investments are classified as long-term investments.
Long-term investments are carried at cost, less provision for
diminution in value other than temporary.
VIII. Inventories
Finished Products are valued at estimated cost or net realizable value
whichever is lower. Finished goods include costs incurred in bringing
the inventories to the present location and condition. Estimated
realizable value is calculated on the basis of current selling price
less the normal selling expenses incurred in making the sale.
IX. Revenue Recognition
Revenue /Income and Cost/Expenditure are generally accounted for on
accrual as they are earned or incurred, except, in case of significant
uncertainties.
X. Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand and short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
XI. Earnings per Share
The Company reports basic and diluted earnings per share in accordance
with ASÃ20 Ã Earnings per ShareÃ. Basic earnings per share are computed
by dividing the net profit or loss for the period by the weighted
average number of Equity Shares outstanding during the period. Diluted
earnings per share is computed by dividing the net profit or loss for
the period by the weighted average number of Equity Shares outstanding
during the period as adjusted for the effects of all dilutive potential
equity shares.
XII. Taxation
Tax expense comprises of current, deferred and fringe benefits tax.
Current income tax and fringe benefits tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred income taxes reflects the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits. At each balance sheet date the Company
re-assesses unrecognised deferred tax assets. It recognizes
unrecognised deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realised. The carrying amount of deferred
tax assets are reviewed at each balance sheet date. The company
writes-down the carrying amount of a deferred tax assets to the extent
that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised.
XIII. Retirement Benefits
No provisions are made for retirement benefit i.e gratuity, Provident
fund contribution. The same will be considered in the year of its
payment
XIV. Provisions and Contingencies
Provision involving substantial degree of estimation in measurement is
recognize when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources. It is
determined based on Management estimates required to settle the
obligation at the
Balance Sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current Management estimate; Contingent
liabilities are not recognized but are disclosed in the notes