Mar 31, 2015
A) Basis of Preparation of Financial Statements
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principals in India (Indian GAAP),
including the Accounting Standards notified under the relevant
provisions ofthe Companies Act, 2013.
B) Systemof Accounting
The financial statements have been prepared under the historical cost
convention using accrual method ofaccounting.
C) Use of Estimates
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires the
management to make estimates that affect the reported amount of assets
& liabilities disclosure of contingent liabilities as at the date of
the financial statement and reported amounts of revenue and expenses
for the year. Actual results could differ from these estimates.
D) Revenue Recognition
Sales represent invoiced value of goods supplied including excise duty
but exclude sales tax. Interest income is recognized on a time
proportion basis taking into account the amount outstanding and the
interest rate applicable.
E) Fixed Assets and Depreciation
Fixed Assets are carried at cost less Depreciation. Cost includes
inward freight, duties and taxes and expenses incidental to acquisition
and installation and also a share of pre-operative expenses in case of
assets acquired/constructed before commencement of commercial
production. Assets acquired under Hire Purchase agreement have been
capitalized as peraccepted accounting practices although the ownership
on such assets will vest on a future date.
All fixed assets are depreciated on straight-line method. Depreciation
is provided based on useful life ofthe assets as prescribed in Schedule
II to the Companies Act, 2013.
Profit or Loss on disposal of fixed asset is recognized in Statement of
Profit & Loss. An impairment loss is recognized where applicable when
the carrying value offixed assets exceeds their resale value orvalue in
use whichever is higher.
F) Inventories
Finished Goods and Components are valued at lower of cost (weighted
average) or net realizable value.
G) Foreign Currency Transactions
Transactions in foreign currency are recorded in rupees by applying the
rate of exchange ruling on the date of transaction. Gain or loss on
settled transactions is recognized in Profit & Loss Account except for
fixed assets acquired from a company outside India, which are adjusted
to carrying amount offixed assets. Unsettled transactions as at the
year-end are translated at the closing rate and the gain or loss is
recognized in Profit & Loss Account except for liabilities incurred for
purchase of fixed assets, which are adjusted to the carrying amount
offixed assets.
H) Government Grants
Subsidies received on capital account are credited to Capital Reserve.
I) Retirement Benefits
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered. The Company contributes to Provident
Fund and Superannuation Fund which is administered by duly constituted
and approved independent Trust / Government and such contributions are
charged against revenue every year.
The Company's liability in respect of gratuity payable in future to
employees is actuarially ascertained every year and is funded with Life
Insurance Corporation of India under Group Gratuity Scheme. The
Company's liability in respect of leave encashment payable in future
to employees is actuarially ascertained every yearand is funded in
Fixed Deposits with Banks.
J) Provision for Current and Deferred Tax
Current Tax represents the amount that would be payable based on
computation of tax as per the prevailing taxation laws underthe Income
Tax Act, 1961.
Deferred Tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable incomes and
accounting income thatoriginate in one period and are capable of
reversal in one or more subsequent periods. Deferred Tax assets are
only recognized if there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
K) Provisions, Contingent Liabilities and Contingent Assets
Provisions 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 outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nordisclosed in the
financial statements.
Defined Benefit Plan
The employees' gratuity fund scheme is lying with Life Insurance
Corporation of India and it is a defined benefit plan. The presentvalue
ofobligation is determined based on actuarial valuation using the
Projected Unit Credit Method. Underthe PUC method a 'projected
accrued benefit' is calculated at the beginning of the year and again
at the end of the year for each benefit that will accrue for all active
members ofthe plan. The 'projected accrued benefit' is based on the
Plan's accrual formula and upon service as of the beginning or end of
the year, but using a members final compensation, projected to the age
at which the employee is assumed to leave active service. The Plan
Liability is the actuarial present value of the 'projected accrued
benefits, as of the beginning of the yearfor active members.
The employees leave encashment is funded and is lying with HDFC
Standard Life Insurance Company Limited and it is defined benefitscheme
(In FY 2013-14). The Defined benefitscheme is recognised in the same
manner as gratuity.
Mar 31, 2014
A) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention and in accordance with the generally accepted Accounting
Standards in India. The financial statements have also been prepared in
accordance with relevant presentational requirements of the Companies
Act, 1956.
B) System of Accounting
The financial statements have been prepared under the historical cost
convention using accrual method of accounting.
C) Use of Estimates
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires the
management to make estimates that affect the reported amount of assets
& liabilities disclosure of contingent liabilities as at the date of
the financial statement and reported amounts of revenue and expenses
for the year. Actual results could differ from these estimates.
D) Sales / Revenue Recognition
Sales represent invoiced value of goods supplied including excise duty
but exclude sales tax.
E) Fixed Assets and Depreciation
Fixed Assets are carried at cost less Depreciation. Cost includes
inward freight, duties and taxes and expenses incidental to acquisition
and installation and also a share of pre-operative expenses in case of
assets acquired/constructed before commencement of commercial
production. Assets acquired under Hire Purchase agreement have been
capitalized as per accepted accounting practices although the ownership
on such assets will vest on a future date.
All fixed assets are depreciated on straight-line method in accordance
with Schedule XIV (as amended) of the Companies Act, 1956, except for
office equipments which are given on rentals are provided at higher
rate.
Profit or Loss on disposal of fixed asset is recognized in Statement of
Profit & Loss.
An impairment loss is recognized where applicable when the carrying
value of fixed assets exceeds their resale value or value in use
whichever is higher.
F) Inventories
Raw materials and Work in Process is valued at Cost or Net Realizable
Value whichever is lower. Finished Goods and Components are valued at
lower of cost (weighted average) or net realizable value.
G) Foreign Currency Transactions
Transactions in foreign currency are recorded in rupees by applying the
rate of exchange ruling on the date of transaction. Gain or loss on
settled transactions is recognized in Profit & Loss Account except for
fixed assets acquired from a company outside India, which are adjusted
to carrying amount of fixed assets. Unsettled transactions as at the
year-end are translated at the closing rate and the gain or loss is
recognized in Profit & Loss Account except for liabilities incurred for
purchase of fixed assets, which are adjusted to the carrying amount of
fixed assets.
H) Government Grants
Subsidies received on capital account are credited to Capital Reserve.
I) Retirement Benefits
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered. The Company contributes to Provident
Fund and Superannuation Fund which is administered by duly constituted
and approved independent Trust / Government and such contributions are
charged against revenue every year.
The Company''s liability in respect of gratuity payable in future to
employees is actuarially ascertained every year and is funded with Life
Insurance Corporation of India under Group Gratuity Scheme.
The Company''s liability in respect of leave encashment payable in
future to employees is actuarially ascertained every year and is funded
with HDFC Standard Life under Kilburn Office Automation Leave
Encashment Fund.
J) Provision for Current and Deferred Tax
Current Tax represents the amount that would be payable based on
computation of tax as per the prevailing taxation laws under the Income
Tax Act, 1961.
Deferred Tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred Tax assets are
only recognized if there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
K) Provisions, Contingent Liabilities and Contingent Assets
Provisions 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 outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2012
A) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention and in accordance with the generally accepted Accounting
Standards in India. The financial statements have also been prepared in
accordance with relevant presentational requirements of the Companies
Act, 1956.
B) Fixed Assets and Depreciation
Fixed Assets are carried at cost less Depreciation, Cost includes
inward freight, duties and taxes and expenses incidental to acquisition
and installation and also a share of pre-operative expenses in case of
assets acquirecyconstructed before commencement of commercial
production. Assets acquired under Hire Purchase agreement have been
capitalized as per accepted accounting practices although the ownership
on such assets will vest on a future date.
All fixed assets are depredated on straight-line method in accordance
with Schedule XIV (as amended) of the Companies Act, 1956, except for
office equipments which are given on rentals are provided at higher
rate.
Profit or Loss on disposal of fixed asset is recognized in Profit &
Loss Account
An impairment loss is recognized where applicable when the carrying
value of fixed assets exceeds their resale value or value in use
whichever is higher.
C) Inventories
Raw materials and Work in Process is valued at Cost or tealable v a
in which ever is lower Finished Goods and Components are valued
at lower of cost (weighted average) or net realizable value.
D) Foreign Currency Transactions
Transactions in foreign currency are recorded h rupees by applying the
rate of exchange ruling on the date of transaction. Gain or loss on
settled transactions is recognized in Profit & Loss Account except for
fixed assets acquired from a company outside India, which are adjusted
to carrying amount of fixed assets. Unsettled transactions as at the
year-end are translated at the closing rate and the gain or loss is
recognized in Profit & Loss Account except for liabilities incurred for
purchase of fixed assets, which are adjusted to the carrying amount of
fixed assets.
E) Government Grants
Subsidies received on capital account are credited to Capital Reserve.
F) Sales / Revenue Recognition
Sales represent invoiced value of goods supplied including excise duty
but exclude sales tax.
G) Retirement Benefits
Short-term empfoyee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered. The Company contributes to Provident
Fund and Superannuation Fund which are administered by duly constituted
and approved independent Trust/Govern me nt and such contributions are
charged against revenue every year.
The Company's liability in respect of gratuity payable in future to
employees is actuarialy ascertained every year and is funded with Life
Insurance Corporation of India under Group Gratuity Scheme.
The Company's lability in respect of leave encashment payable in future
to employees is acturiaBy ascertained every year and is funded with
HDFC Standard Life under Kilburn Office Automation Leave Encashment
Fund.
H) Provision for Current and Deferred Tax
Current Tax represents the amount that would be payable based on
computation of tax as per the prevailing taxation laws under the Income
Tax Act, 1961.
Deferred Tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred Tax assets are
only recognized if there is reasonable certainty that sufficient future
taxable income will be available against which such taãf3rrted ta^
assets ban be realiable.
I) Provisions, Contingent Liabilities and Contingent Assets
Provisions 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 outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2010
A) Principal Accounting Policies
The financial statements have been prepared in accordance with
applicable Accounting Standards in India. The financial statements have
also been prepared in accordance with relevant presentational
requirements of the Companies Act, 1956.
b) Basis of Accounting
The financial statements have been prepared in accordance with the
historical cost convention.
c) Fixed Assets and Depreciation
Fixed Assets are carried at cost less depreciation. Cost includes
inward freight, duties and taxes and expenses incidental to acquisition
and installation and also a share of pre-operative expenses in case of
assets acquired/constructed before commencement of commercial
production. Assets acquired under Hire Purchase agreement have been
capitalized as per accepted accounting practices although the ownership
on such assets will vest on a future date.
All fixed assets are depreciated on straight-line method in accordance
with Schedule XIV (as amended) of the Companies Act, 1956, except for
office equipments which are given on rentals are provided at higher
rate.
Profit or Loss on disposal of fixed asset is recognized in Profit &
Loss Account.
An impairment loss is recognized where applicable when the carrying
value of fixed assets exceeds their resale value or value in use
whichever is higher.
d) Inventories
Raw materials are valued at weighted average cost (Cost of
acquisition).
Finished Goods and Components are valued at lower of cost (weighted
average) or net realizable value.
Loose Tools being a nominal amount has not been written off.
e) Foreign Currency Transactions
Transactions in foreign currency are recorded in rupees by applying the
rate of exchange ruling on the date of transaction. Gain or loss on
settled transactions is recognized in Profit & Loss Account except for
fixed assets acquired from a company outside India, which are adjusted
to carrying amount of fixed assets. Unsettled transactions as at the
year-end are translated at the closing rate and the gain or loss is
recognized in Profit & Loss Account except for liabilities incurred for
purchase of fixed assets, which are adjusted to the carrying amount of
fixed assets.
f) Retirement Benefits
The Company contributes to Provident Fund and Superannuation Fund which
are administered by duly constituted and approved independent
Trust/Government and such contributions are charged against revenue
every year.
The Companys liability in respect of gratuity payable in future to
employees is actuarially ascertained every year and is funded with Life
Insurance Corporation of India under Group Gratuity Scheme.
The Companys liability in respect of leave encashment payable in
future to employees is acturially ascertained every year and is funded
with HDFC Bank under Kilburn Office Automation Leave Encashment Fund.
g) Government Grants
Subsidies received on capital account are credited to Capital Reserve.
Subsidies received against depreciable assets are credited to the
Profit & Loss Account over the useful life of the asset.
h) Sales
Sales represent invoiced value of goods supplied including excise duty
but exclude sales tax. Excise Duty has been accounted on exclusive
method.
i) Refund of Additional Customs Duty
There is no refund of Customs Duty this year.
j) Taxes on Income
Current Tax represents the amount that would be payable based on
computation of tax as per the prevailing taxation laws under the Income
Tax Act, 1961.
Deferred Tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred Tax assets are
only recognized if there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
k) Borrowing Cost
Borrowing costs if relatable to qualifying assets (i.e., assets that
necessarily take a substantial period of time for its intended use or
sale) are capitalized otherwise are charged to Profit & Loss Account.
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