Mar 31, 2015
Company Overview
Lesha Industries Limited ("the company") is a listed company domiciled
in India and incorporated under the provisions of the Companies Act,
1956. The company is engaged in the business of trading of various
steel products and in the electronic items.The company is listed on
Bombay Stock Exchange.
Basis for Preparation of Financial statements
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India, on the basis of
going concern under the historical cost convention and also on accrual
basis. These financial statements comply, in all material aspects, with
the provisions the Companies Act, 2013 (to the extent applicable) and
also accounting standards prescribed by the Companies (Accounting
Standards) Rules, 2006, which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. All
the divisions of the Company have normal operating cycle of less than
twelve months, hence a period of twelve months has been considered for
bifurcation of assets and liabilities into current and non-current as
required by Schedule III to the Companies Act, 2013 for preparation of
Financial Statements
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the
change in accounting policy explained below.
Use of Estimates
The preparation of financial statements is conformity with generally
accepted accounting principles requires management to make assumptions
and estimates, which it believes are reasonable under the circumstances
that affect the reported amounts of assets and liabilities on the date
of financial statements and the reported amounts of revenue and
expenses during the period. Actual results could differ from those
estimates. Difference between the actual results and estimates are
recognized in the period in which the results are known/materialized.
Inventories
* The inventories including stock of shares are valued on the Cost
basis.
* Cost of inventories comprises all costs of purchase, conversion and
other costs incurred in bringing the inventories to their present
location and condition.
Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit or
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cashflows from operating,
investing and financing activities of the company are segregated based
on the available information.
Fixed assets
Fixed Assets are stated at cost less depreciation. Cost comprises of
cost of acquisition and any attributable cost of bringing the assets to
the condition for its intended use.
Gains or losses arising from de-recognition of fixed assets are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
Depreciation and Amortization
Depreciation on fixed assets is calculated on a SLM basis using the
rates arrived at based on the useful lives estimated by the management,
or those prescribed under the Schedule II to the Companies Act, 2013,
whichever is higher. The company has used the following rates to
provide depreciation on its fixed assets.
Asset Useful Life
Office equipment 5 Years
Furniture 10 Years
Office Premise 60 Years
Vehicle 10 Years
Plant & Machinery 15 Years
Impairment of assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
Revenue Recognition
The principles of revenue recognition are given below:
* General systems of accounting is mercantile, accordingly the
income/expenditure are recognized on accrual basis on reasonable
certainty concept.
* Sales of goods traded accounted net off VAT receivable and payable
and in case of share trading are accounted net off of other expenses
such as STT, Service tax and Transaction charges etc.
* Dividend income is recognized when right to receive payment is
established.
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.
Liabilities which are of contingent nature are not provided but are
disclosed at their estimated amount in the notes forming part of the
accounts. Contingent assets are neither recognized nor disclosed in the
financial statements.
Investments
Investments that are readily realizable and intended to be held for not
more than a year from the date on which such investments are made, are
classified as current investments. All other investment are classified
as long-term investments. Current investments are measured at cost or
market value whichever is lower,determined on an individual investment
basis. Long Term Investments are stated at cost.
Provision for diminution in the value of long term investment is made
only if such a decline is other than temporary.
Event occurring after the Balance Sheet Date
No significant events which could affect the financial position as on
31st March, 2015, to a material extent have been reported by the
management, after the Balance Sheet date till the signing the report.
Prior period Items
Prior period expenses/income is accounted for under respective heads.
Material items, if any, are disclosed separately by way of note.
Preliminary Expense
Preliminary expenses and Pre - Operative expenses has not been
amortized.
Earning Per Share
The earning considered in ascertaining the Company's Earnings Per Share
(EPS) comprises the net profit after tax. The number of shares used in
computing Basic and diluted EPS is weighted average number of shares
outstanding during the year as per the guidelines of AS-20 and
calculation of EPS is shown in notes to account.
Mar 31, 2014
A) Basis of preparation of Financial Statements:
i) The financial statements have been prepared under the historical
cost convention on accrual basis as a going concern in accordance with
the generally accepted accounting principles and the provisions of the
Companies Act, 1956 and in accordance with applicable accounting
standard as prescribed by the Companies (Accounting Standard) Rules,
2006.
ii) Accounting policies not specifically referred to otherwise are in
consonance with generally accepted accounting principles.
B) Fixed Assets and Depreciation:
Fixed assets are stated at cost. Depreciation has been provided on
Straight Line Method (SLM) at rates as provided in Schedule XIV of the
Companies Act, 1956.
C) Borrowing Cost:
Borrowing cost attributable to acquisition, construction or production
of qualifying assets are capitalized as part of the cost of that
assets, till the assets is ready for use. Other Borrowing cost are
recognized as an expense in the period in which these are incurred.
D) Revenue Recognition:
i) All income and expenditure items having material bearing on the
financial statements are recognised on accrual basis.
ii) In case of Steel & Toys business, the purchase and sales are
accounted net off of VAT receivable and payable and in case of Share
trading sales and purchase are accounted net off of other expenses such
as STT, Service Tax and Transaction charges etc.
E) Valuation of Closing Stock:
1) Stock of Shares is valued at cost
F) Income-tax expenses:
- Income tax expenses comprises current tax and deferred tax charge or
credit.
- Current Tax
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the company.
- Deferred Tax
Deferred Tax charge or credit reflects the tax effects of timing
differences between accounting Income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the Balance Sheet
date as per the Accounting Standard - 22.
In view of negligible difference in taxable profit and book profit, the
impact of deferred tax assets/ liability is not considered.
G) Investment:
Investment is shown at cost.
H) Prior Period Adjustment :
Expense and income pertaining to earlier/previous years are accounted
as prior period item.
I) Preliminary and Pre-operative :
Preliminary expenses and Pre-operative expenses has not been amortized.
J) Provision, Contingent Liabilities and Contingent Assets:
Provisions 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 to settle the obligation that can be reliably estimated.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed.
K) Employee Benefits :
The company is not liable to the provision of Provident Fund Act or ESI
Act and no provision is required for Gratuity liability as non of the
employee has completed eligible period of employment.
Further the benefit in terms of Leave Encashment is paid during the
same year as the employees are not allowed to accumulate the leaves
entitled during the year.
L) Impairment of assets:
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which assets is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been change in the estimate of recoverable
amount.
Mar 31, 2013
A) Basis of preparation of Financial Statements:
i) The financial statements have been prepared under the historical
cost convention on accrual basis as a going concern in accordance with
the generally accepted accounting principles and the provisions of the
Companies Act, 1956 and in accordance with applicable accounting
standard as prescribed by the Companies (Accounting Standard) Rules,
2006.
ii) Accounting policies not specifically referred to otherwise are in
consonance with generally accepted accounting principles.
B) Fixed Assets and Depredation:
Fixed assets are stated at cost. Depreciation has been provided on
Straight Line Method (SLM) at rates as provided in Schedule XIV of the
Companies Act, 1956.
C) Borrowing Cost:
Borrowing cost attributable to acquisition, construction or production
of qualifying assets are capitalized as part of the cost of that
assets, till the assets is ready for use. Other Borrowing cost are
recognized as an expense in the period in which these are incurred.
D) Revenue Recognition:
i) All income and expenditure items having material bearing on the
financial statements are recognised on accrual basis.
ii) In case of Steel business, the purchase and sales are accounted net
off of VAT receivable and payable and in case of Share trading sales
and purchase are accounted net off of other expenses such as STT,
Service Tax and Transaction charges etc.
E) Valuation of Closing Stock:
1) Stock of Steel Products is valued at cost or market price whichever
is lower basis.
2) Stock of Shares is valued at cost
F) Income-tax expenses:
Income tax expenses comprises current tax and deferred tax charge or
credit.
Current Tax
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the company.
Deferred Tax
Deferred Tax Assets as on 31/03/2013 has not been recognised since,
there is no reasonable certainty of taxable income being available
against which such deferred tax assets can be realised.
G) Investment:
Investment is shown at cost.
H) Prior Period Adjustment:
Expense and income pertaining to earlier/previous years are accounted
as prior period item.
I) Preliminary and Pre-operative :
Preliminary expenditure has been amortized over a period of 5 years in
equal installments.
3) Provision, Contingent Liabilities and Contingent Assets:
Provisions 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 to settle the obligation that can be reliably estimated.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed.
K) Employee Benefits :
The company is not liable to the provision of Provident Fund Act or ESI
Act and no provision is required for Gratuity liability as non of the
employee has completed eligible period of employment.
Further the benefit in terms of Leave Encashment is paid during the
same year as the employees are not allowed to accumulate the leaves
entitled during the year.
Mar 31, 2012
A) Basis of preparation of Financial Statements:
i) The financial statements have been prepared under the historical
cost convention on accrual basis as a going concern in accordance with
the generally accepted accounting principles and the provisions of the
Companies Act, 1956 and in accordance with applicable accounting stan
dard as prescribed by the Companies (Accounting Standard) Rules, 2006.
ii) Accounting policies not specifically referred to otherwise are in
consonance with generally accepted accounting principles.
B) Fixed Assets and Depreciation:
Fixed assets are stated at cost. Depreciation has been provided on
Straight Line Method (SLM) at rates as provided in Schedule XIV of the
Companies Act, 1956.
C) Borrowing Cost:
Borrowing cost attributable to acquisition, construction or production
of qualifying assets are capitalized as part of the cost of that
assets, till the assets is ready for use. Other Borrowing cost are
recognized as an expense in the period in which these are incurred.
D) Revenue Recognition:
i) All income and expenditure items having material bearing on the
financial statements are recognised on accrual basis.
ii) In case of Steel business, the purchase and sales are accounted net
off of VAT receivable and payable and in case of Share trading sales
and purchase are accounted net off of other expenses such as STT,
Service Tax and Transaction charges etc.
E) Valuation of Closing Stock:
1) Stock of Steel Products is valued at cost or market price whichever
is lower basis.
2) Stock of Shares is valued at cost
F) Income-tax expenses:
- Income tax expenses comprises current tax and deferred tax charge or
credit.
- Current Tax
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the company.
- Deferred Tax
Deferred Tax charge or credit reflects the tax effects of timing
differences between accounting Income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date as per the Accounting Standard - 22.
G) Investment:
Investment is shown at cost.
H) Prior Period Adjustment :
Expense and income pertaining to earlier/previous years are accounted
as prior period item.
I) Preliminary and Pre-operative :
Preliminary expenditure has been amortized over a period of 5 years in
equal installments.
J) Provision, Contingent Liabilities and Contingent Assets:
Provisions 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 to settle the obligation that can be reliably estimated.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed.
Mar 31, 2009
I) Basis of preparation of Financial Statements: The financial
statements have been prepared under the historical cost convention in
accordance with the normally accepted accounting principles and the
provisions of the Companies Act, 1956.
ii) Basis of Accounting:
All income and expenditure items having a material bearing on the
financial statements are recognised on accrual basis.
iii) Fixed Assets and Depreciation:
Fixed assets are stated at cost. Depreciation has been provided on
Straight Line Method (SLM) at rates as provided in Schedule XIV of the
Companies Act, 1956.
iv) Deferred Tax:
Deferred Tax is accounted by computing the tax effect of timing
difference which arise during "the year and reverse in subsequent
period.
v) Investment:
Investment is shown at cost. provision against diminution in value of
quoted investment is not made, where in the opinion of the management,
diminution is not a permanent nature.
vi) Preliminary and Pre- operative :
Preliminary expenditure has been amortized over a period of 10 years in
equal installments.
Mar 31, 2008
I) Basis of preparation of Financial Statements: The financial
statements have been prepared under the historical cost convention in
accordance with the normally accepted accounting principles and the
provisions of the Companies Act, 1956.
ii) Basis of Accounting:
All income and expenditure items having a material bearing on the
financial statements are recognised on accrual basis.
iii) Fixed Assets and Depreciation:
Fixed assets are stated at cost. Depreciation has been provided on
Straight Line Method (SLM) at rates as provided in Schedule XIV of the
Companies Act, 1956.
iv) Deferred Tax:
Deferred Tax is accounted by computing the tax effect of timing
difference which arise during "the year and reverse in subsequent
period.
v) Investment:
Investment is shown at cost. provision against diminution in value of
quoted investment is not made, where in the opinion of the management,
diminution is not a permanent nature.
vi) Preliminary and Expenses :
Preliminary expenditure has been amortized over a period of 10 years in
equal installments.
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