Mar 31, 2015
1. CORPORATE INFORMATION
Magnum Ventures Limited is ISO 14000 certified Company is engaged in
the business of manufacturing News Print paper & Duplex Board.
The Company also running a 5 star hotel named "Country Inn & Suits by
Carlson" at Sahibabad, Ghaziabad, UP. In this regard, Company had
entered into Territory License Agreement with Country Inn & Suites by
Carlson Inc USA through Country Development & Management Services
Private Limited on 31st January 2007 for a period of 10 year from
opening date i.e. February 2009. The Licence can be renewed for a
further period of 10 years
2. BASIS OF PREPARATION OF FINANCIAL STATEMENT
a) The financial statements have been prepared under the historical
cost convention and on the accounting principles of going concern.
Accounting polices not specifically referred to otherwise are in
accordance with the generally accepted accounting principles and
materially comply with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India.
b) The preparation of financial statements requires the management of
the company to make estimates and assumptions that affect the reported
balances of assets & liabilities and disclosure relating to contingent
liabilities as at the date of financial statements and reported amount
of income and expenses during the year. The management believes that
the estimates used in preparation of financial statements are prudent &
reasonable. Future results could differ from these estimates.
c) The Company follows mercantile system of accounting and recognises
significant items of income and expenditure on accrual basis.
d) The company is complying with the Accounting-Standards issued by the
ICAI, as per the requirements of the Companies Act, 2013.
3. FIXED ASSETS AND DEPRECIATION
a) Expenditure of capital nature are capitalised at cost comprising of
purchase price (net of Excise duty, rebates and discounts) and any
other cost which is directly attributable to bring the assets to its
working condition for the intended use. All fixed assets are carried at
cost less depreciation. But when an asset is scraped or otherwise
disposed off, the cost and related depreciation are written off from
the books of accounts and resultant profit or loss, if any is reflected
in profit and loss account. The Company capitalized Inward Freight of
Capital Asset at the end of month.
Advances paid towards the acquisition or construction of fixed assets
and the cost of assets not put to use as at reporting date are
disclosed under capital work in progress.
b) In Paper Division, Depreciation on fixed assets is provided on the
basis of Written down Value method except on plant & machinery, turbine
& Deinking Plant on which depreciation is charged on SLM, and Software
is amortised in 5 years.
For Hotel Division Assets, depreciation has been provided on the
straight-line method at the rates and in the manner prescribed in
schedule II to the Companies Act. 2013,
Further Freight on Capital Asset installed and put to use has been
capitalized at the end of month.
3. FOREIGN EXCHANGE TRANSACTIONS
a) All the Monetary assets and liabilities in foreign currencies are
translated in Indian rupees at the exchange rates prevailing at the
Balance Sheet date as notified. The resultant gain / loss are
accounted for in the Profit & Loss account.
b) The outstanding foreign exchange transactions are stated at the
prevailing exchange rate as on the date of balance sheet.
c) Items of Income and expenditure relating to foreign exchange
transactions are recorded at exchange rates prevailing on the date of
the transactions.
4. INVENTORY VALUATION
a) Stock of raw materials, stores & spares are valued at, lower of
purchase cost or net realizable value.
b) W.I.P is valued including component of Waste Paper, Chemicals &
Stores, Fuel and Other Manufacturing Overheads. Finished goods are
valued at cost of production or net realisable value whichever is less.
Cost for the purpose of valuation includes raw material consumption,
manufacturing expenses and other appropriate overheads there on in
accordance with AS-2 (Revised) issued by I.C.A.I.
5. REVENUE RECOGNITION
a) Sales
In Paper Division, Revenue on Sale of Newsprint and Duplex Board is
recognized on the basis of dispatches from factory gates and inclusive
of Excise Duty.
In Hotel Division, Revenue from Banquet is recognized when billed on
completion of guest's function, Revenue from Room is recognized at the
time when the guest checkout.
b) Interest Income
Interest income is recognized as it accrues on a time proportion basis
taking in to account the amount of investment and rate applicable.
c) Misc Income
It includes sale of sludge, discarded stores and scrap and revenue is
recognized on the basis of dispatches from factory gates and inclusive
of Excise Duty.
6. EXCISE DUTY
Liabilities for Excise Duty occur and accounted for as when the raw
materials get finished.
7. IMPAIRMENT OF ASSETS
At the end of each year, the company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indications that impairment loss may have occurred and where the
recoverable amount of any fixed asset is lower than the carrying
amount, a provision for impairment loss on fixed assets is made for the
difference. Recoverable amount is generally measured using discounted
estimated cash flows. Post impairment, depreciation is provided on the
revised carrying value of asset over its remaining useful life.
Management is of the view that there is no such assets exists in the
Company.
8. TAXATION
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing difference between
the book profits and tax profits is recognized using the tax rates and
laws that have been enacted or substantially enacted as of the Balance
Sheet date. Deferred tax assets arising from the timing differences are
recognized to the extent there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
9. EARNING PER SHARE
Basic EPS is calculated by dividing the net profit for the year
attributable to Equity Shareholders by the weighted average number of
equity shares outstanding during the year. The weighted average number
of equity shares outstanding the year is adjusted for events of bonus
issue and share split.
For the purpose of calculating Diluted Earningsper Share, the Net
Profit for the year attributable to Equity Share holders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effect of all dilutive potential equity shares.
The Company does not have any diluted equity shares at the year end.
10. PROVISION AND CONTIGENCIES
A Provision is recognized when the company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(including retirement benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimate.
Contingent liabilities are not recognized in profit & loss account but
are disclosed in Notes to the Accounts.
11. BORROWING COST
Borrowing Cost 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 substantial
period of time to get ready for intended use. All other borrowing costs
are charged to revenue.
12. RETIREMENT AND OTHER EMPLOYEE BENEFITS
a. Defined Contribution Plan
Retirement benefits in the form of provident fund & pension schemes
whether in pursuance of law or otherwise is accounted on accrual and
charged to profit and loss account of the year basis. The Company is
regular in depositing these dues to the credit of appropriate
authorities in due time.
b. Defined Benefit Plan
Employees Benefit has been recognized as required in accordance with
Accounting Standard 15 'Employee Benefits' on the basis of Actuarial
Valuation report for the year ended 31-03-2015 as annexed to Notes to
account.
Retirement benefits in the form of Gratuity is considered as defined
benefit obligation and provided for on the basis of an actuarial
valuation, using the projected unit credit method (PUC), as at the date
of Balance Sheet.
c. Other long-term benefits
Leave Encashment are provided for on the basis of an actuarial
valuation, using the projected unit credit method(PUC), as at the date
of Balance Sheet.
Actuarial gain/losses, if any, are immediately recognized in the
Statement of Profit and Loss.
d. Salary and other short term benefits
The salary and other short term benefit i.e. Bonus etc is being paid to
the employees when it becomes due.
Actuarial assumptions in respect of provisions for gratuity and leave
encashment at balance sheet date are as follows:
Gratuity
Particular As at As at
31-03-15 31-03-14
a) Economic Assumption _ _
Discounted Rate 8.75% 8.75%
Expected Rate of Return on Plan Assets N.A. N.A.
Rate of increase in Compensation levels 6.25% 6.25%
b) Demographic Assumptions _ _
Normal Retirement Age * 58 2 years Extension
Mar 31, 2014
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT
a) The financial statements have been prepared under the historical
cost convention and on the accounting principles of going concern.
Accounting polices not specifically referred to otherwise are in
accordance with the generally accepted accounting principles and
materially comply with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India.
b) The preparation of financial statements requires the management of
the company to make estimates and assumptions that affect the reported
balances of assets & liabilities and disclosure relating to contingent
liabilities as at the date of financial statements and reported amount
of income and expenses during the year. The management believes that
the estimates used in preparation of financial statements are prudent &
reasonable. Future results could differ from these estimates.
c) The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
d) The company is complying with the Accounting-Standards issued by the
ICAI, as per the requirements of section 211(3C) of the Companies Act,
1956.
2. FIXED ASSETS AND DEPRECIATION
a) Expenditure of capital nature are capitalised at cost comprising of
purchase price (net of Excise duty, rebates and discounts) and any
other cost which is directly attributable to bring the assets to its
working condition for the intended use. All fixed assets are carried at
cost less depreciation. But when an asset is scraped or otherwise
disposed off, the cost and related depreciation are written off from
the books of accounts and resultant profit or loss, if any is reflected
in profit and loss account. The Company capitalized Inward Freight of
Capital Asset at the end of month.
Advances paid towards the acquisition or construction of fixed assets
and the cost of assets not put to use as at reporting date are
disclosed under capital work in progress.
b) In Paper Division Depreciation on fixed assets is provided on the
basis of Written down Value method except on plant & machinery, turbine
& Deinking Plant on which depreciation is charged on SLM however,
Software is amortised in 5 years.
For Hotel Division Assets, depreciation has been provided on the
straight-line method and at the rates in the manner prescribed in
schedule XIV to the Companies Act. 1956, Vide GSR No. 756E Dt.
16.12.93.
3. FOREIGN EXCHANGE TRANSACTIONS
a) All the Monetary assets and liabilities in foreign currencies are
translated in Indian rupees at the exchange rates prevailing at the
Balance Sheet date as notified. The resultant gain / loss are accounted
for in the Profit & Loss account.
b) The outstanding foreign exchange transactions are stated at the
prevailing exchange rate as on the date of balance sheet.
c) Items of Income and expenditure relating to foreign exchange
transactions are recorded at exchange rates prevailing on the date of
the transactions.
4. INVENTORY VALUATION
a) Stock of raw materials, stores & spares are valued at lower of
purchase cost or net realizable value.
b) W.I.P is valued including component of Waste Paper, Chemicals &
Stores, Fuel and Other Manufacturing Overheads. Finished goods are
valued at cost of production or net realisable value whichever is less.
Cost for the purpose of valuation includes raw material consumption,
manufacturing expenses and other appropriate overheads there on in
accordance with AS-2 (Revised) issued by I.C.A.I.
5. REVENUE RECOGNITION
a) Sales
In Paper Division, Revenue on Sale of Newsprint and Duplex Board is
recognized on the basis of dispatches from factory gates and inclusive
of Excise Duty.
In Hotel Division, Revenue from Banquet same is recognized when billed
on completion of guest''s function, Revenue from Room is recognized at
the time when the guest checkout.
b) Interest Income
Interest income is recognized as it accrues on a time proportion basis
taking in to account the amount of investment and rate applicable.
c) Misc. Income
It includes sale of sludge, discarded stores and scrap and revenue is
recognized on the basis of dispatches from factory gates and inclusive
of Excise Duty.
6. MISCELLANEOUS EXPENDITURE
The Misc Expenses are written off by the company in 5 installment
beginning from the year in which it is incurred.
7. EXCISE DUTY
Liabilities for Excise Duty on finished goods lying in the Work
Premises are accounted for as when these are cleared from the factory
gate.
8.IMPAIRMENT OF ASSETS
At the end of each year, the company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indications that impairment loss may have occurred and where the
recoverable amount of any fixed asset is lower than the carrying
amount, a provision for impairment loss on fixed assets is made for the
difference. Recoverable amount is generally measured using discounted
estimated cash flows. Post impairment, depreciation is provided on the
revised carrying value of asset over its remaining useful life.
9. TAXATION
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing difference between
the book profits and tax profits is recognized using the tax rates and
laws that have been enacted or substantially enacted as of the Balance
Sheet date. Deferred tax assets arising from the timing differences are
recognized to the extent there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
10. EARNING PER SHARE
Basic EPS is calculated by dividing the net profit for the year
attributable to Equity Shareholders by the weighted average number of
equity shares outstanding during the year. The weighted average number
of equity shares outstanding the year is adjusted for events of bonus
issue and share split.
For the purpose of calculating Diluted Earningsper Share, the Net
Profit for the year attributable to Equity Share holders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effect of all dilutive potential equity shares.
The Company does not have any diluted equity shares at the year end.
11. PROVISION AND CONTIGENCIES
A Provision is recognized when the company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(including retirement benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimate.
Contingent liabilities are not recognized in profit & loss account but
are disclosed in Notes to the Accounts.
12. RETIREMENT AND OTHER EMPLOYEE BENEFITS
a. Defined Contribution Plan
Retirement benefits in the form of provident fund & pension schemes
whether in pursuance of law or otherwise is accounted on accrual and
charged to profit and loss account of the year basis. The Company is
regular in depositing these dues to the credit of appropriate
authorities in due time.
b. Defined Benefit Plan
From this year the company started recognizing Employees Benefit as
required in accordance with Accounting Standard 15 ''Employee Benefits''
on the basis of Actuarial Valuation report for the year ended
31-03-2014 as annexed to Notes to account.
Retirement benefits in the form of Gratuity is considered as defined
benefit obligation and provided for on the basis of an actuarial
valuation, using the projected unit credit method (PUC), as at the date
of Balance Sheet.
c. Other long-term benefits
Leave Encashment are provided for on the basis of an actuarial
valuation, using the projected unit credit method(PUC), as at the date
of Balance Sheet.
Actuarial gain/losses, if any, are immediately recognized in the
Statement of Profit and Loss.
d. Salary and other short term benefits
The salary and other short term benefit i.e. Bonus etc is being paid to
the employees when it becomes due.
Actuarial assumptions in respect of provisions for gratuity and leave
encashment at balance sheet date are as follows:
13. BORROWING COST
Borrowing Cost 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 substantial
period of time to get ready for intended use. All other borrowing costs
are charged to revenue.
Mar 31, 2013
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT
a) The financial statements have been prepared under the historical
cost convention and on the accounting principles of going concern.
Accounting polices not specifically referred to otherwise are in
accordance with the generally accepted accounting principles and
materially comply with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India.
b) The preparation of financial statements requires the management of
the company to make estimates and assumptions that affect the reported
balances of assets & liabilities and disclosure relating to contingent
liabilities as at the date of financial statements and reported amount
of income and expenses during the year. The management believes that
the estimates used in preparation of financial statements are prudent &
reasonable. Future results could differ from these estimates.
c) The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
d) The company is complying with the Accounting-Standards issued by the
ICAI, as per the requirements of section 211(3C) of the Companies Act,
1956.
2. FIXED ASSETS AND DEPRECIATION
a) Expenditure of capital nature are capitalised at cost comprising of
purchase price (net of Excise duty, rebates and discounts) and any
other cost which is directly attributable to bring the assets to its
working condition for the intended use. All fixed assets are carried at
cost less depreciation. But when an asset is scraped or otherwise
disposed off, the cost and related depreciation are written off from
the books of accounts and resultant profit or loss, if any is reflected
in profit and loss account.
Advances paid towards the acquisition or construction of fixed assets
and the cost of assets not put to use as at reporting date are
disclosed under capital work in progress.
b) In Paper Division Depreciation on fixed assets is provided on the
basis of Written down Value method except on plant & machinery, turbine
& Deinking Plant on which depreciation is charged on SLM however,
Software is amortised in 5 years.
For Hotel Division Assets, depreciation has been provided on the
straight-line method and at the rates in the manner prescribed in
schedule XIV to the Companies Act. 1956, Vide GSR No. 756E Dt.
16.12.93.
The Board of Directors vide their meeting held on 22-03-2013 had
decided to charge depreciation on Plant & Machinery (Paper Division) on
Straight Line Method to match Written down value vis-a-vis life of
Plant &Machinery. The depreciation has been re-computed retrospectively
as a result, reversal of deprecation to the tune of Rs. 4034 Lacs has
been credited to Profit & Loss account for the year ended 31-03-2013.
While calculating depreciation as per SLM on Plant & Machinery it has
been observed that the sale of Plant & Machinery during the year
2007-08 to the tune of Rs. 4,21,97,519/- was purchased during the year
2005-06. However during the year 2007-08 while calculating WDV as the
time of sale it was reduced from the purchases of 1992-93 to 1999-00.
The effect of the same is that the profit on sale of Plant & Machinery
was under valued by 1,58,44,920/- during the year 2007-08.
3. FOREIGN EXCHANGE TRANSACTIONS
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing at the time of the transaction.
4. INVENTORY VALUATION
a) Stock of raw materials, stores & spares are valued at lower of
purchase cost or net realizable value.
b) W.I.P is valued at Rs.5540200/- which includes component of Waste
Paper, Chemicals & Stores, Fuel and Other Manufacturing Overheads.
Finished goods are valued at cost of production or net realisable value
which ever is less. Cost for the purpose of valuation includes raw
material consumption, manufacturing expenses and other appropriate
overheads there on in accordance with AS-2 (Revised) issued by I.C.A.I.
5. SALES
Sales are inclusive of Excise Duty and are booked on the basis of
dispatches from factory gates.
6. MISCELLANEOUS EXPENDITURE
PARTICULAR CURRENT YEAR PREVIOUS YEAR
Miscellaneous Expenditure W/off Nil Nil
7. EXCISE DUTY
Liabilities for Excise Duty on finished goods lying in the Work
Premises are accounted for as when these are cleared from the factory
gate.
8. IMPAIRMENT OF ASSETS
At the end of each year, the company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indications that impairment loss may have occurred and where the
recoverable amount of any fixed asset is lower than the carrying
amount, a provision for impairment loss on fixed assets is made for the
difference. Recoverable amount is generally measured using discounted
estimated cash flows. Post impairment, depreciation is provided on the
revised carrying value of asset over its remaining useful life.
9. TAXATION
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing difference
between the book profits and tax profits is recognized using the tax
rates and laws that have been enacted or substantially enacted as of
the Balance Sheet date. Deferred tax assets arising from the timing
differences are recognized to the extent there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
10. EARNING PER SHARE
Basic EPS is calculated by dividing the net profit for the year
attributable to Equity Share holders by the weighted average number of
equity shares outstanding during the year. The weighted average number
of equity shares outstanding the year is adjusted for events of bonus
issue and share split.
For the purpose of calculating Diluted Earnings per Share, the Net
Profit for the year attributable to Equity Share holders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effect of all dilutive potential equity shares.
The Company does not have any diluted equity shares at the year end.
11. PROVISION AND CONTIGENCIES
A Provision is recognized when the company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(including retirement benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimate.
Contingent liabilities are not recognized in profit & loss account but
are disclosed in Notes to the Accounts.
12. RETIREMENT AND OTHER EMPLOYEE BENEFITS
i) Defined Contribution Plan
Retirement benefits in the form of provident fund & pension schemes
whether in pursuance of law or otherwise is accounted on accrual and
charged to profit and loss account of the year basis. The Company is
regular in depositing these dues to the credit of appropriate
authorities in due time.
ii) Defined Benefit Plan
No actuarial valuation has been carried as required in Accounting
Standard 15 ÂEmployee Benefits'' as a result of that present liability
under payment of Gratuity Act, 1972 cannot be ascertained.
Liability in respect of gratuity payable to employees has been provided
for on the assumption that such benefits are payable to all employees
who have completed five years of service at the end of accounting year.
iii) Other Benefits
No actuarial valuation has been carried as required in Accounting
Standard 15 ÂEmployee Benefits'' as a result of that present liability
for short term and long term compensated absences cannot be
ascertained.
Liability in respect of leave encashment payable to employees has been
provided for leave credit at the year-end.
Mar 31, 2012
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT
a) The financial statements have been prepared under the historical
cost convention and on the accounting principles of going concern.
Accounting polices not specifically referred to otherwise are in
accordance with the generally accepted accounting principles and
materially comply with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India.
b) The preparation of financial statements requires the management of
the company to make estimates and assumptions that affect the reported
balances of assets & liabilities and disclosure relating to contingent
liabilities as at the date of financial statements and reported amount
of income and expenses during the year. The management believes that
the estimates used in preparation of financial statements are prudent &
reasonable. Future results could differ from theses estimates.
c) The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
d) The company is complying with the Accounting-Standards issued by the
ICAI, as per the requirements of section 211(3C) of the Companies Act,
1956.
2. FIXED ASSETS AND DEPRECIATION
a) Expenditure of capital nature are capitalised at cost comprising of
purchase price (net of Excise duty, rebates and discounts) and any
other cost which is directly attributable to bring the assets to its
working condition for the intended use. All fixed assets are carried at
cost less depreciation. But when an asset is scraped or otherwise
disposed off, the cost and related depreciation are written off from
the books of accounts and resultant profit or loss, if any is reflected
in profit and loss account.
Advances paid towards the acquisition or construction of fixed assets
and the cost of assets not put to use as at reporting date are
disclosed under capital work in progress.
b) In Paper Division Depreciation on fixed assets is provided on the
basis of Written down Value method except on Software which is
amortised in 5 years. On turbine & Deinking Plant in Paper Division and
for Hotel Division Assets, depreciation has been provided on the
straight-line method and at the rates in the manner prescribed in
schedule XIV to the Companies Act. 1956, Vide GSR No. 756E Dt.
16.12.93.
3. FOREIGN EXCHANGE TRANSACTIONS
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing at the time of the transaction.
4. INVENTORY VALUATION
a) Stock of raw materials, stores & spares are valued at purchase cost
to the company on first in first out basis.
b) W.I.P is valued at Rs.2510570/- which includes component of Waste
Paper, Chemicals & Stores, Fuel and Other Manufacturing Overheads.
Finished goods are valued at cost of production or net realisable value
which ever is less. Cost for the purpose of valuation includes raw
material consumption, manufacturing expenses and other appropriate
overheads there on in accordance with AS-2 (Revised) issued by I.C.A.I.
5. SALES
Sales are inclusive of Excise Duty and are booked on the basis of
dispatches from factory gates.
6. MISCELLANEOUS EXPENDITURE
PARTICULAR CURRENT YEAR PREVIOUS YEAR
Miscellaneous Expenditure: Nil Rs. NIL/-
Written Off
(Paper Division : Relating
to IPO)
Miscellaneous Expenditure: Nil Rs.82957039.70
(Hotel Division) (Transferred to Capital
Work In Progress)
7. EXCISE DUTY
Liabilities for Excise Duty on finished goods lying in the Work
Premises are accounted for as & when these are cleared from the factory
gate.
8. IMPAIRMENT OF ASSETS
At the end of each year, the company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indications that impairment loss may have occurred and where the
recoverable amount of any fixed asset is lower than the carrying
amount, a provision for impairment loss on fixed assets is made for the
difference. Recoverable amount is generally measured using discounted
estimated cash flows. Post impairment, depreciation is provided on the
revised carrying value of asset over its remaining useful life.
9. TAXATION
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing difference between
the book profits and tax profits is recognized using the tax rates and
laws that have been enacted or substantially enacted as of the Balance
Sheet date. Deferred tax assets arising from the timing differences
are recognized to the extent there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
10. EARNING PER SHARE
Basic EPS is calculated by dividing the net profit for the year
attributable to Equity Share holders by the weighted average number of
equity shares outstanding during the year. The weighted average number
of equity shares outstanding the year is adjusted for events of bonus
issue and share split.
For the purpose of calculating Diluted Earning per Share, the Net
Profit for the year attributable to Equity Share holders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effect of all dilutive potential equity shares.
The Company does not have any diluted equity shares at the year end.
11. PROVISION AND CONTIGENCIES
A Provision is recognized when the company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(including retirement benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimate.
Contingent liabilities are not recognized in profit & loss account but
are disclosed in Notes to the Accounts.
12. RETIREMENT AND OTHER EMPLOYEE BENEFITS
i) Defined Contribution Plan
Retirement benefits in the form of provident fund & pension schemes
whether in pursuance of law or otherwise is accounted on accrual and
charged to profit and loss account of the year basis. The Company is
regular in depositing these dues to the credit of appropriate
authorities in due time.
ii) Defined Benefit Plan
No actuarial valuation has been carried as required in Accounting
Standard 15 'Employee Benefits' as a result of that present liability
under payment of Gratuity Act, 1972 cannot be ascertained. Liability
in respect of gratuity payable to employees has been provided for on
the assumption that such benefits are payable to all employees who have
completed five years of service at the end of accounting year.
iii) Other Benefits
No actuarial valuation has been carried as required in Accounting
Standard 15 'Employee Benefits as a result of that present liability
for short term and long term compensated absences cannot be
ascertained. Liability in respect of leave encashment payable to
employees has been provided for leave credit at the year-end.
Mar 31, 2010
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT
a) The financial statements have been prepared under the historical
cost convention and on the accounting principles of going concern.
Accounting polices not specifically referred to otherwise are in
accordance with the generally accepted accounting principles and
materially comply with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India.
b) The preparation of financial statements requires the management of
the company to make estimates and assumptions that affect the reported
balances of assets & liabilities and disclosure relating to contingent
liabilities as at the date of financial statements and reported amount
of income and expenses during the year. The management believes that
the estimates used in preparation of financial statements are prudent &
reasonable. Future results could differ from theses estimates.
c) The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
d) The company is complying with the Accounting-Standards issued by the
ICAI, as per the requirements of section 211(3C) of the Companies Act,
1956.
2. FIXED ASSETS AND DEPRECIATION
a) Expenditure of capital nature are capitalised at cost comprising of
purchase price (net of Excise duty, rebates and discounts) and any
other cost which is directly attributable to bring the assets to its
working condition for the intended use. All fixed assets are carried at
cost less depreciation. But when an asset is scraped or otherwise
disposed off, the cost and related depreciation are written off from
the books of accounts and resultant profit or loss, if any is reflected
in profit and loss account.
Advances paid towards the acquisition or construction of fixed assets
and the cost of assets not put to use as at reporting date are
disclosed under capital work in progress.
b) In Paper Division Depreciation on fixed assets is provided on the
basis of Written down Value method except on Software which is
amortised in 5 years. On turbine & Deinking Plant in Paper Division and
for Hotel Division Assets, depreciation has been provided on the
straight-line method and at the rates in the manner prescribed in
schedule XIV to the Companies Act. 1956, Vide GSR No. 756E Dt.
16.12.93.
3. FOREIGN EXCHANGE TRANSACTIONS
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing at the time of the transaction.
4. INVENTORY VALUATION
a) Stock of raw materials, stores & spares are valued at purchase cost
to the company on first in first out basis.
b) W.I.P is valued at Rs.2510570/- which includes component of Waste
Paper, Chemicals & Stores, Fuel and Other Manufacturing Overheads.
Finished goods are valued at cost of production or net realisable value
which ever is less. Cost for the purpose of valuation includes raw
material consumption, manufacturing expenses and other appropriate
overheads there on in accordance with AS-2 (Revised) issued by I.C.A.I.
5. SALES Sales are inclusive of Excise Duty and are booked on the
basis of dispatches from factory gates.
6. EXCISE DUTY
Liabilities for Excise Duty on finished goods lying in the Work
Premises are accounted for as & when these are cleared from the factory
gate.
7. IMPAIRMENT OF ASSETS
At the end of each year, the company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indications that impairment loss may have occurred and where the
recoverable amount of any fixed asset is lower than the carrying
amount, a provision for impairment loss on fixed assets is made for the
difference. Recoverable amount is generally measured using discounted
estimated cash flows. Post impairment, depreciation is provided on the
revised carrying value of asset over its remaining useful life.
8. TAXATION
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing difference
between the book profits and tax profits is recognized using the tax
rates and laws that have been enacted or substantially enacted as of
the Balance Sheet date. Deferred tax assets arising from the timing
differences are recognized to the extent there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
9. EARNING PER SHARE
Basic EPS is calculated by dividing the net profit for the year
attributable to Equity Share holders by the weighted average number of
equity shares outstanding during the year. The weighted average number
of equity shares outstanding the year is adjusted for events of bonus
issue and share split.
For the purpose of calculating Diluted Earning per Share, the Net
Profit for the year attributable to Equity Share holders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effect of all dilutive potential equity shares.
The Company does not have any diluted equity shares at the year end.
10. PROVISION AND CONTIGENCIES
A Provision is recognized when the company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(including retirement benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimate.
Contingent liabilities are not recognized in profit & loss account but
are disclosed in Notes to the Accounts.
11. RETIREMENT AND OTHER EMPLOYEE BENEFITS
i) Defined Contribution Plan
Retirement benefits in the form of provident fund & pension schemes
whether in pursuance of law or otherwise is accounted on accrual and
charged to profit and loss account of the year basis. The Company is
regular in depositing these dues to the credit of appropriate
authorities in due time.
ii) Defined Benefit Plan
No actuarial valuation has been carried as required in Accounting
Standard 15 ÃEmployee Benefits as a result of that present liability
under payment of Gratuity Act, 1972 cannot be ascertained.
Liability in respect of gratuity payable to employees has been provided
for on the assumption that such benefits are payable to all employees
who have completed five years of service at the end of accounting year.
iii) Other Benefits
No actuarial valuation has been carried as required in Accounting
Standard 15 ÃEmployee Benefits as a result of that present liability
for short term and long term compensated absences cannot be
ascertained.
Liability in respect of leave encashment payable to employees has been
provided for leave credit at the year-end.