Mar 31, 2010
1. Basis of preparation of financial statement
The financial statements have been prepared under historical cost
convention, in accordance with the generally accepted accounting
principles and accounting standard referred to in section 211 (3C) of
the Companies Act 1956,
2. Revenue recognition
a. The Company generally follows mercantile system of accounting and
recognizes item of income and expenditure on accrual basis, except in
case of significant uncertainties.
b. Sales are inclusive of excise duty export incentives but net of
Trade discount and sales returns.
c. Export incentive in respect of exports made is accounted in the
year of export on accrual basis.
d. Export sales are accounted on the basis of date of shipment from
the factory.
3. Fixed assets.
Fixed Asset are stated at cost including taxes, freight and other
incidental expenses incurred in relation to acquisition & installation
of the same, net of modvat.
4. Depreciation
The depreciation is provided on fixed assets on straight-line method at
the rates specified in the Schedule XIV of the Companies Act, 1956 on
pro-rata basis for additions/deductions.
5. Investments
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary in the opinion of the management.
6. Inventories
a. Raw materials, Stores & Spares, and Packing Materials are valued at
lower of cost or net realizable value under the FIFO method.
b. Stocks in Process are valued at lower of cost or net realizable
value under the FIFO method.
The cost is arrived at on full absorption basis as per Accounting
Standard AS 2 - Valuation of inventories. C. Finished Goods are valued
at lower of cost or net realizable value, under the FIFO method. The
cost is arrived at on full absorption basis as per Accounting Standard
AS 2 Valuation of inventories.
7. Retirement benefit and leave wages
a. Companys contribution to Provident Fund, Pension Scheme &
Employees State Insurance Corporation Funds are charged to the Profit
& Loss Account on an accrual basis.
b. Gratuity benefit payable at the time of retirement is charged to
Profit & Loss Account on the basis of actuarial valuation. The company
does not have any gratuity fund whether internal or maintained by an
outside agency.
c. Provision for accrued leave encashment is made on accrual basis and
charged to Profit & Loss Account of the year.
8. Miscellaneous expenditure
Advertisement & Publicity Expenses for promotion of products are
charged to revenue over a period of three years.
9. Foreign currency transactions
Foreign Currency Loan , Current Asset and Current Liabilities
outstanding at the close of financial year are revalued at the
contracted and/ or appropriate exchange rates at the close of the year.
The gain or loss due to decrease/increase in rupee liability on account
of fluctuations in the rate of exchange is adjusted to the cost of
assets if it relates to acquisition of assets, and is charged to Profit
& Loss Account in other cases.
10. Taxation
a. Provisions for Current Tax are made on the assessable income at the
tax rate applicable to the relevant assessment year.
b. Deferred Tax for Timing differences between the tax profit and book
profit is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future wherever applicable.
11. Borrowing Costs.
Borrowing cost of the company on working capital requirement is
recognized as an expense in Profit & Loss Account.
12. Intangible Assets.
Specified computer softwares purchased are recognized as intangible
Assets, as per the criteria specified in Accounting Standards (AS) 26th
Intangible Assets and the same are amortized at par with the computers.
13. Leases
Lease rentals in respect of operating leases are charged to Profit &
Loss Account as an expense.
14. Earning pershare
Earning per share is calculated by dividing net profit or loss for
period, attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. There is no
outstanding rights as on 31st March 2010 which can be converted in to
Equity shares.
Mar 31, 2009
1. Basis of preparation of financial statement
The financial statements have been prepared under historical cost
convention, in accordance with the generally accepted accounting
principles and accounting standard referred to in section 211(3C) of
the Companies Act 1956.
2. Revenue recognition
a. The Company generally follows mercantile system of accounting and
recognizes item of income and expenditure on accrual basis, except in
case of significant uncertainties.
b. Sales are inclusive of excise duty export incentives but net of
Trade discount and sales returns.
c. Export incentive in respect of exports made is accounted in the
year of export on accrual basis.
d. Export sales are accounted on the basis of date of shipment from
the factory.
3. Fixed assets.
F ixed Asset are stated at cost including taxes, freight and other
incidental expenses incurred in relation to acquisition & installation
of the same, net of modvat.
4. Depreciation
The depreciation is provided on fixed assets on straight-line method at
the rates specified in the Schedule XIV of the Companies Act, 1956 on
pro-rata basis for additions/deductions.
5. Investments
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary in the opinion of the management.
6. Inventories
a. Raw materials, Stores & Spares, and Packing Materials are valued at
lower of cost or net realizable value under the FIFO method.
b. Stocks in Process are valued at lower of cost or net realizable
value under the FIFO method. The cost is arrived at on full absorption
basis as per Accounting Standard AS 2 - Valuation of inventories.
c. Finished Goods are valued at lower of cost or net realizable value,
under the FIFO method. The cost is arrived at on full absorption basis
as per Accounting Standard AS 2-Valuation of inventories.
7. Retirement benefit and leave wages
a. Companys contribution to Provident Fund, Pension Scheme &
Employees State Insurance Corporation Funds are charged to the Profit
& Loss Account on an accrual basis.
b. Gratuity benefit payable at the time of retirement is charged to
Profit & Loss Account on the basis of actuarial valuation. The company
does not have any gratuity fund whether internal or maintained by an
outside agency.
c. Provision for accrued leave encashment is made on accrual basis and
charged to Profit & Loss Account of the year.
8. Miscellaneous expenditure
Advertisement & Publicity Expenses for promotion of products are
charged to revenue over a period of three years.
9. Foreign currency transactions
Foreign Currency Loan , Current Asset and Current Liabilities
outstanding at the close of financial year are revalued at the
contracted and/ or appropriate exchange rates at the close of the year.
The gain or loss due to decrease/increase in rupee liability on account
of fluctuations in the rate of exchange is adjusted to the cost of
assets if it relates to acquisition of assets, and is charged to Profit
& Loss Account in other cases.
10. Taxation
a. Provisions for Current Tax are made on the assessable income at the
tax rate applicable to the relevant assessment year.
b. Deferred Tax for Timing differences between the tax profit and book
profit is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future wherever applicable.
11. Borrowing Costs.
Borrowing cost of the company on working capital requirement is
recognized as an expense in Profit & Loss Account.
12. Intangible Assets.
Specified computer softwares purchased are recognized as intangible
Assets, as per the criteria specified in Accounting Standards (AS) 26 "
Intangible Assets and the same are amortized at par with the
computers.
13. Leases
Lease rentals in respect of operating leases are charged to Profit &
Loss Account as an expense.
14. Earning per share
Earning per share is calculated by dividing net profit or loss for
period, attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. There is no
outstanding rights as on 31 * March 2009 which can be converted in to
Equity shares.
15. Bank Loan against Cash Credit
The Company has been showing the unpaid interest on bank loan against
cash credit under the Current Liabilities till earlier years. It is now
showed under the Secured Loans with the loan amount
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