Mar 31, 2016
1. ACCOUNTING ASSUMPTIONS:
The accounts have been prepared under the historic cost convention on the basis of a going concern concept, with revenues recognized and expenses accounted for on their accrual, with due provisions/adjustments for obligations that have been crystallized but not yet incurred.
Accounting policies not specifically referred to herein below are consistent and in consonance with generally accepted accounting principles prevalent in India.
2. BASIS OF PRESENTATION:
The structures of the accounts have been drawn in accordance with the Schedule III to the Companies Act, 2013.
3. FIXED ASSETS:
Fixed assets are stated at cost less depreciation. Cost includes freight, installation charges, duties, taxes, insurance, interest levied on borrowed funds used to finance assets in the course of construction and installation and other related incidental charges. Expenditure for additions and improvements are capitalized and expenditure for maintenance and repairs are charged to profit and loss account. When assets are sold or retired, their cost or valuation and accumulated depreciation are removed from the accounts and any gain or loss resulting from their disposal is included in the profit and loss account.
4. DEPRECIATION:
Depreciation on fixed assets (except land) has been provided on Straight Line Method as per rates provided in Schedule II to the Companies Act, 2013.
5. IMPAIRMENT:
The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized where ever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
6. INVESTMENTS:
All investments are stated at cost i.e., cost of acquisition is inclusive of expenditure incidental to acquisition.
Provision for diminution in their market value of current investments is recognized and charged to Profit and Loss Account.
7. INVENTORIES:
Inventories are valued as under:
a) Raw-materials, packing materials, stores and spares:
At cost (determined on a weighted average basis) which includes freight, duty and insurance
b) Work-in-process:
At cost plus allocation and apportionment of relevant factory overheads applicable till the stage of completion.
c) Finished goods:
1. At factory: Valued at lower of cost or market value. Cost computed on the basis of material, direct labour and allocation and apportionment of relevant factory overheads incurred and excise duty payable on such goods.
2. At branches: Valued at lower of cost or market value. Cost computed on the basis of material, direct labour and allocation and apportionment of relevant factory overheads including excise duty paid on such goods and transport charges to the branch.
8. PROVISIONS:
A. In accordance with year-end review of the reliability of Trade receivables and other receivables, specific provisions are created and maintained against those Trade receivables and other receivables that in the opinion of the management may not be recovered partially or fully.
B. Provisions are made for non-moving, obsolete and unserviceable inventories / stores on the basis of technical evaluation.
9. REVENUE RECOGNITION:
Sale of goods is recognized at the point of dispatch of finished goods to Customers.
Sales are exclusive of excise duty and sales tax.
Income from interest on call money arrears accounted for on cash basis.
10. BORROWING COST
Borrowing Costs directly attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such asset when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.
11. RESEARCH AND DEVELOPMENT:
Expenditure pertaining to Research and Development is charged to revenue in the year in which it is incurred.
12. EMPLOYEE BENEFITS
A) In respect of Gratuity for eligible employees, provision is made as per Actuarial Valuation certified by Mr. K.V.Y .Sastry for the year ended 31/03/2016
B) In respect of leave encashment, provision is made based on salary as at March, 31, 2016 for the leave accumulated and credited to the respective employees.
13. PRIOR-PERIOD ITEMS:
An item has been determined as prior period item in accordance with the accounting standards issued by the ICAI
14. EXCEPTIONAL ITEM:
An item of income/expense arising from certain ordinary activities of the Company which are of such size, nature or incidence that their disclosure is relevant to be made separately are treated as exceptional item.
15. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted at the rate prevailing on the transaction date. Exchange differences if any arising on the date of settlement have been charged to profit & loss account.
16. TAXES ON INCOME
Current tax is determined in accordance with the provisions of the Income Tax Act, 1961, as the amount of tax payable to the Tax Authorities in respect of taxable income for the year.
Deferred tax: Since the company has substantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profits in the near future and the deferred tax liability is much lesser than deferred tax assets and hence it is considered prudent not to recognize either deferred tax assets or deferred tax liability.
17. TREATMENT OF CONTINGENT LIABILITIES:
Liabilities, which may or may not arise and not crystallized as at the end of accounting period, have been shown as contingent liabilities.
Mar 31, 2014
1. ACCOUNTING ASSUMPTIONS:
The accounts have been prepared under the historic cost convention on
the basis of a going concern concept, with revenues recognized and
expenses accounted for on their accrual, with due
provisions/adjustments for obligations that have been crystallised but
not yet incurred.
Accounting policies not specifically referred to herein below are
consistent and in consonance with generally accepted accounting
principles prevalent in India.
2. BASIS OF PRESENTATION:
The structures of the accounts have been drawn in accordance with the
Revised Schedule VI to the Companies Act, 1956.
3. FIXED ASSETS:
Fixed assets are stated at cost less depreciation. Cost includes
freight, installation charges, duties, taxes, insurance, interest
levied on borrowed funds used to finance assets in the course of
construction and installation and other related incidental charges.
Expenditure for additions and improvements are capitalized and
expenditure for maintenance and repairs are charged to profit and loss
account. When assets are sold or retired, their cost or valuation and
accumulated depreciation are removed from the accounts and any gain or
loss resulting from their disposal is included in the profit and loss
account.
4. DEPRECIATION:
Depreciation on fixed assets (except land) has been provided on
Straight Line Method as per rates provided in Schedule XIV to the
Companies Act, 1956.
5. INVESTMENTS:
All investments are stated at cost i.e., cost of acquisition is
inclusive of expenditure incidental to acquisition.
Provision for diminution in their market value of current investments
is recognized and charged to Profit and Loss Account.
6. INVENTORIES:
Inventories are valued as under:
a) Raw-materials, packing materials, stores and spares:
At cost (determined on a weighted average basis) which includes
freight, duty and insurance or net realizable value whichever is lower.
b) Work-in-process:
At cost plus allocation and apportionment of relevant factory overheads
applicable till the stage of completion.
c) Finished goods:
1. At factory: Valued at lower of cost or market value. Cost computed
on the basis of material, direct labour and allocation and
apportionment of relevant factory overheads incurred and exise duty
payable on such goods.
2. At branches: Valued at lower of cost or market value. Cost computed
on the basis of material, direct labour and allocation and
apportionment of relevant factory overheads including excise duty paid
on such goods and transport charges to the branch.
7. PROVISIONS:
A In accordance with year-end review of the reliability of Trade
receivables and other receivables, specific provisions are created and
maintained against those Trade receivables and other receivables that
in the opinion of the management may not be recovered partially or
fully.
B. Provisions are made for non-moving, obsolete and unserviceable
inventories / stores on the basis of technical evaluation.
8. REVENUE RECOGNITION:
Sale of goods is recognized at the point of dispatch of finished goods
to Customers.
Sales are exclusive of excise duty and sales tax.
Income from interest on call money arrears, Investment in National
savings certificates being insignificant and accounted for on cash
basis.
9. RESEARCH AND DEVELOPMENT:
Expenditure pertaining to Research and Development is charged to
revenue in the year in which it is incurred.
10. EMPLOYEE BENEFITS
A) In respect of Gratuity for eligible employees, provision is made as
per Acturial Valuation certified by Mr. K.V.Y .Sastry for the year
ended 31/03/2014
B) In respect of leave encashment, provision is made based on salary as
at March, 31, 2014 for the leave accumulated and credited to the
respective employees.
11. PRIOR-PERIOD ITEMS:
An item has been determined as prior period item in accordance with the
accounting standards issued by the ICAI
12. EXCEPTIONAL ITEM:
An item of income/expense arising from certain ordinary activities of
the Company which are of such size, nature or incidence that their
disclosure is relevant to be made separately are treated as exceptional
item.
13. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted at the rate prevailing on
the transaction date. Exchange differences if any arising on the date
of settlement have been charged to profit & loss account.
14. TAXES ON INCOME
Current tax is determined in accordance with the provisions of the
Income Tax Act, 1961, as the amount of tax payable to the Tax
Authorities in respect of taxable income for the year.
Deferred tax: Since the company has substantial carried forward
business losses and unabsorbed depreciation, it is unlikely to have
taxable profits in the near future and the deferred tax liability is
much lesser than deferred tax assets and hence it is considered prudent
not to recognize either deferred tax assets or deferred tax liability.
15. TREATMENT OF CONTINGENT LIABILITIES:
Liabilities, which may or may not arise and not crystallized as at the
end of accounting period, have been shown as contingent liabilities.
(C Rights, Preferences and restrictions attached to the Shares:
(i) Equity Shares:
Equity shares rank pari passu as regards to dividend and voting rights.
Each share has one vote.
(ii)Preference Shares
Preference shares have right to preferential dividend of 10% per annum
on cumulative basis and also for redemption of principal over the
equity shares. Preference share holders have right to vote only on the
matters concerning the preference shares.
Mar 31, 2012
A. ACCOUNTING ASSUMPTIONS:
The accounts have been prepared under the historic cost convention on
the basis of a going concern concept, with revenues recognized and
expenses accounted for on their accrual, with due
provisions/adjustments for obligations that have been crystallised but
not yet incurred. Accounting policies not specifically referred to
herein below are consistent and in consonance with generally accepted
accounting principles prevalent in India.
B. BASIS OF PRESENTATION:
The structures of the accounts have been drawn in accordance with the
Revised Schedule VI to the Companies Act, 1956.
C. FIXED ASSETS:
Fixed assets are stated at cost less depreciation. Cost includes
freight, installation charges, duties, taxes, insurance, interest
levied on borrowed funds used to finance assets in the course of
construction and installation and other related incidental charges.
Expenditure for additions and improvements are capitalized and
expenditure for maintenance and repairs are charged to profit and loss
account. When assets are sold or retired, their cost or valuation and
accumulated depreciation are removed from the accounts and any gain or
loss resulting from their disposal is included in the profit and loss
account.
D. DEPRECIATION:
Depreciation on fixed assets (except land) has been provided on
Straight Line Method as per rates provided in Schedule XIV to the
Companies Act, 1956.
E. INVESTMENTS:
All investments are stated at cost i.e., cost of acquisition is
inclusive of expenditure incidental to acquisition.
Provision for diminution in their market value of current investments
is recognized and charged to Profit and Loss Account.
F. INVENTORIES:
Inventories are valued as under:
a) Raw-materials, packing materials, stores and spares:
At cost (determined on a weighted average basis) which includes
freight, duty and insurance or net realizable value whichever is lower.
b) Work-in-process:
At cost plus allocation and apportionment of relevant factory overheads
applicable till the stage of completion.
c) Finished goods:
1. At factory: Valued at lower of cost or market value. Cost computed
on the basis of material, direct labour and allocation and
apportionment of relevant factory overheads incurred and exise duty
payable on such goods.
2. At branches: Valued at lower of cost or market value. Cost computed
on the basis of material, direct labour and allocation and
apportionment of relevant factory overheads including excise duty paid
on such goods and transport charges to the branch.
G. PROVISIONS:
A. In accordance with year-end review of the reliability of Trade
receivables and other receivables, specific provisions are created and
maintained against those Trade receivables and other receivables that
in the opinion of the management may not be recovered partially or
fully.
B. Provisions are made for non-moving, obsolete and unserviceable
inventories / stores on the basis of technical evaluation.
H. REVENUE RECOGNITION:
Sale of goods is recognized at the point of dispatch of finished goods
to Customers.
Sales are exclusive of excise duty and sales tax.
Income from interest on call money arrears, Investment in National
savings certificates being insignificant and accounted for on cash
basis.
I. RESEARCH AND DEVELOPMENT:
Expenditure pertaining to Research and Development is charged to
revenue in the year in which it is incurred.
J. EMPLOYEE BENEFITS
A) In respect of Gratuity, for eligible employees, provision is made on
the assumption that all of them retire at the year end.
B) In respect of leave encashment, provision is made based on salary as
at March, 31, 2012 for the leave accumulated and credited to the
respective employees.
K. PRIOR-PERIOD ITEMS:
An item has been determined as prior period item in accordance with the
accounting standards issued by the ICAI
L. EXCEPTIONAL ITEM:
An item of income/expense arising from certain ordinary activities of
the Company which are of such size, nature or incidence that their
disclosure is relevant to be made separately are treated as exceptional
item.
M. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted at the rate prevailing on
the transaction date. Exchange differences if any arising on the date
of settlement have been charged to profit & loss account.
N. TAXES ON INCOME
Current tax is determined in accordance with the provisions of the
Income Tax Act, 1961, as the amount of tax payable to the Tax
Authorities in respect of taxable income for the year.
Deferred tax: Since the company has substantial carried forward
business losses and unabsorbed depreciation, it is unlikely to have
taxable profits in the near future and the deferred tax liability is
much lesser than deferred tax assets and hence it is considered prudent
not to recognize either deferred tax assets or deferred tax liability.
O. TREATMENT OF CONTINGENT LIABILITIES:
Liabilities, which may or may not arise and not crystallized as at the
end of accounting period, have been shown as contingent liabilities
Mar 31, 2010
1. ACCOUNTING ASSUMPTIONS:
The accounts have been prepared under the historic cost convention on
the basis of a going concern concept, with revenues recognized and
expenses accounted for on their accrual, with due
provisions/adjustments for obligations that have been crystallised but
not yet incurred. Accounting policies not specifically referred to
herein below are consistent and in consonance with generally accepted
accounting principles prevalent in India.
2. BASIS OF PRESENTATION:
The structures of the accounts have been drawn in accordance with the
Schedule VI to the Companies Act, 1956.
3. FIXED ASSETS:
Fixed assets are stated at cost less depreciation. Cost includes
freight, installation charges, duties, taxes, insurance, interest
levied on borrowed funds used to finance assets in the course of
construction and installation and other related incidental charges.
Expenditure for additions and improvements are capitalized and
expenditure for maintenance and repairs are charged to profit and loss
account. When assets are sold or retired, their cost or valuation and
accumulated depreciation are removed from the accounts and any gain or
loss resulting from their disposal is included in the profit and loss
account.
4. DEPRECIATION:
Depreciation on fixed assets (except land) have been provided on
Straight Line Method as per rates provided in Schedule XIV to the
Companies Act, 1956.
5. INVESTMENTS:
All investments are stated at cost i.e., cost of acquisition is
inclusive of expenditure incidental to acquisition.
6. INVENTORIES:
Inventories are valued as under:
a) Raw-materials, packing materials, stores and spares:
At cost (determined on a weighted average basis) which includes
freight, duty and insurance or net realizable value whichever is lower.
b) Work-in-process:
At cost plus allocation and apportionment of relevant factory overheads
applicable till the stage of completion.
c) Finished goods:
1. At factory: Valued at lower of cost or market value. Cost computed
on the basis of material, direct labour and allocation and
apportionment of relevant factory overheads incurred and exise duty
payable on such goods.
2. At branches: Valued at lower of cost or market value. Cost computed
on the basis of material, direct labour and allocation and
apportionment of relevant factory overheads including excise duty paid
on such goods and transport charges to the branch.
7. PROVISIONS:
A. In accordance with year-end review of the realisability of sundry
debtors and receivables, specific provisions are created and maintained
against those debtors and receivables that in the opinion of the
management may not be recovered partially or fully.
B. Provisions are made for non-moving, obsolete and unserviceable
inventories / stores on the basis of technical evaluation.
8. REVENUE RECOGNITION:
Sale of goods is recognized at the point of dispatch of finished goods
to Customers.
Sales are Exclusive of excise duty and sales tax.
Income from interest on call money arrears, Investment in National
savings certificates being insignificant is accounted for on cash
basis.
9. RESEARCH AND DEVELOPMENT:
Expenditure pertaining to Research and Development is charged to
revenue in the year in which it is incurred.
10. GRATUITY AND LEAVE ENCASHMENT LIABILITY:
Liability on account of gratuity and leave encashment for the employees
is provided on the estimated basis of liability at the year-end.
Actuarial valuation of future liability for the services rendered has
not been determined.
11. PRIOR-PERIOD ITEMS:
An item has been determined as prior period item in accordance with the
accounting standards issued by the ICAI
12. EXCEPTIONAL ITEM:
An item of income/expense arising from certain ordinary activities of
the Company which are of such size, nature or incidence that their
disclosure is relevant to be made separately are treated as exceptional
item.
13. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted at the rate prevailing on
the transaction date. Exchange differences if any arising on the date
of settlement have been charged to profit & loss account.
14. TAXES ON INCOME
Current tax is determined in accordance with the provisions of the
Income Tax Act, 1961, as the amount of tax payable to the Tax
Authorities in respect of taxable income for the year.
Deferred tax: Since the company has substantial carried forward
business losses and unabsorbed depreciation, it is unlikely to have
taxable profits in the near future and the deferred tax liabilities is
much lesser than deferred tax assets and hence it is considered prudent
not to recognize either deferred tax assets or deferred tax liability.
15. TREATMENT OF CONTINGENT LIABILITIES:
Liabilities, which may or may not arise and not crystallized as at the
end of accounting period, have been shown as contingent liabilities.
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