Mar 31, 2015
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Mar 31, 2014
A) Terms / Rights attached to equity shares.
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees.
In the event of liquidation of company, the holders of equity shares
will be entitled to receive remaining assets of the company, after
distribution of all preferential amounts. The distributions will be
proportion to the number of equity shares held by shareholder.
Mar 31, 2012
1.1 BASIS OF ACCOUNTING
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principles (GAAP) in compliance with the provisions of
Companies Act, 1956 and the Accounting Standards as specified in the
Companies (Accounting Standard) Rules 2006 notified by the Central
Government of India.
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Difference, if any, between the actual results
and estimates is recognised in the period in which the results are
known.
1.2 REVENUE RECOGNITION
Revenue is recognized based on the nature of activity when
consideration can be reasonably measured and there exists reasonable
certainty of its recovery.
(i) Revenue from sale of shares is recognised when the significant
risks and rewards of ownership of shares have passed to the buyer.
Sales are recorded net off Securities Transaction Tax.
(ii) Interest income is recognized on time proportion basis taking into
account the amount outstanding and applicable interest rates.
(iii) Other items of income are accounted as and when the right to
receive arises.
1.3 EMPLOYEE BENEFITS
Defined Contribution Plan:
Retirement benefits in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the Profit and
Loss Account of the period when the contributions to the respective
funds are due.
Defined Benefit Plan:
Gratuity Liability for eligible employees are defined benefit
obligation and are provided for on the basis of an actuarial valuation
on projected unit credit method made at the end of each financial
period. Obligation is measured at the present value of estimated future
cash flows using discounted rate that is determined by reference to
market yields at the Balance Sheet date on Government Securities where
the currency and terms of the Government Securities are consistent with
the currency and estimated terms of the defined benefit obligation.
The Company does not have a policy of encashment of unexpired leave.
Actuarial gains / losses are immediately taken to Profit and Loss
account and are not deferred.
1.5 FIXED ASSETS
Fixed assets are stated at their cost net of tax/duty credits availed,
if any, less accumulated depreciation and accumulated amortizations.
Costs comprise the purchase price and any attributable costs of
bringing the assets to its working condition, for its intended use.
1.6 DEPRECIATION AND AMORTISATION
Depreciation on tangible assets is provided on Straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956.
1.7 IMPAIRMENT OF ASSETS
As of each balance sheet, the carrying amount of assets is tested for
impairment so as to determine -
- the provision for impairment loss, if any, required or
- the reversal, if any, required of impairment loss recognized in
previous periods.
Impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount.
Recoverable amount is determined:
- in the case of individual asset, at the higher of the net selling
price and the value in use ;
- in the case of a cash generating unit, (a group of assets that
generates identified independent cash flows), at the higher of the cash
generating units net selling price and the value in use.
- Value in use is determined as the present values of estimated
future cash flows from the continuing use of an asset and from its
disposal at the end of its useful life.
1.8 INVESTMENTS
Long term investments are carried at cost, after providing for any
diminution in value, if such diminution is of permanent nature. Current
investments are carried at lower of cost or market value. Determination
of carrying amount of such investments is done on the basis of specific
identification.
1.8 BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalized as part of the cost
of such asset till such time as the asset is ready for its intended use
or sale.
All other borrowing costs are recognized as an expense in the period in
which they are ihcurred.
1.9 TAXES ON INCOME
Taxes on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the income
accounted in financial statements and the taxable income for the year
and quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet date.
* Deferred tax assets relating to unabsorbed depreciation/business
losses/losses under the head ''Capital gains'' are recognized '' and
carried forward to the extent there is virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
Other deferred tax assets are recognised and carried forward to the
extent that there is a reasonable certainty that sufficient
* future taxable income will be available against such deferred tax
assets can be realized.
1.10 INVENTORIES
Traded goods are valued at cost or market value whichever is less.
1.11 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation if
(i) the company has a present obligation as a result of past event
(ii) a probable flow of resources is expected to settle the obligation
and
(iii) the amount of obligation can be reliably estimated Reimbursement
expected in respect of expenditure required to settle a provision is
recognized only when it is virtually certain that the reimbursement
will be received.
* Contingent liability is disclosed in case of
(i) a present obligation arising from past events , when it is not
probable that an outflow of resources will be required to  settle
the obligation.
(ii) a present obligation arising from past events, when no reliable
estimate is possible.
(iii) a possible obligation arising from past events, when the
probability of outflow of resources is not remote.
Contingent assets are neither recognized nor disclosed.
Provisions, contingent liabilities and contingent assets are reviewed
at each Balance sheet date.
Mar 31, 2010
(a) Basis of preparation
The financial statements have been prepared to comply in all material
respects in respects with the Accounting Standard notified by Companies
Accounting Standards Rules, 2006 and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared under
the historical cost convention on an accrual.The accounting policies
have been consistently applied by the Company with those used in the
previous accounting year.
(b) Change in Accounting Policy
Up to last year, Company was valuing stock of shares at cost. Company
has changed method of valuation from 1st April 2009 from Cost to
Market Value. As on balance sheet date, value of stock, is
Rs.1,42,95,492/- computed at Market Value. Had it been calculated at
cost, the value would have been Rs. 85,55,376/-
(c ) Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Shares
Sale is recognised when the significant risks and rewards of ownership
of shares have passed to the buyer. Sales are recorded net of
Securities Transaction Tax.
Interest income
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividends
Dividend income is recognized when the shareholderÃs right to receive
payment was established during the accounting year
(d ) Income taxes
Tax expense comprises of current, deferred and fringe benefit tax.
Current income tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred income taxes reflects the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In the absence
of such certainty Deferred Tax assets are not recognised on unabsorbed
depreciation and business losses.
(e) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value is made to recognise a
decline other than temporary in the value of the investments.
(f) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares).
(g) Inventories
Stock in trade of Company consists Shares only and is valued at Market
Value.
(h) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation and impairment losses if any.. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. Borrowing costs
relating to acquisition of fixed assets which takes substantial period
of time to get ready for its intended use are also included to the
extent they relate to the period till such assets are ready to be put
to use.
(i) Depreciation
Depreciation is provided using the Straight Line Method as per the
useful lives of the assets estimated by the management, or at the rates
prescribed under schedule XIV of the Companies Act, 1956 whichever is
higher.
(j) Employee Benefit
Retirement benefits and leave encashment is accounted for on accrual
basis.
(k) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions 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
estimates. Provision for expenditure relating to voluntary retirement
is made when the employee accepts the offer of early retirement.
Mar 31, 2009
(a) Basis of preparation
The financial statements have been prepared to comply in all material
respects in respects with the Accounting Standard notified by Companies
Accounting Standards Rules, 2006 and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared under
the historical cost convention on an accrual. The accounting policies
have been consistently applied by the company with those used in the
previous accouting year.
(b) Change in Accounting Policy
Upto last year, Company was valuing stock at cost or net realisable
value whichever is lower. Company has changed method of valuation from
1 st April 2008 from Cost or market value whichever is lower to at
cost. As on balance sheet date, value of stock, had it been, computed
as per earlier method of cost or net realisable value whichever is
lower, works out to Rs. 37.72 Lacs as compared to Rs. 80.73 Lacs
computed at cost.
(c) Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Interest income
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividends
Revenue is recognised when the shareholders right to receive payment
is established by the balance sheet date. Dividend from subsidiaries
is recognised even if same are declared after balance sheet date but
pertains to period on or before the date of balance sheet as per the
requirement of schedule VI of the Companies Act, 1956.
(d) income taxes
Tax expense comprises of current, deferred and fringe benefit tax.
Current income tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred income taxes reflects the impact of
current yeartiming differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities across various countries of
operation are not set off against each other as the company does not
have a legal right to do so. Deferred tax assets are recoginised only
to the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognised only if there is virtual certaintly supported by convincing
evidence that they can be realised against future taxable profits.
Unrecognised deferred tax assets of earlier years are re-assessed and
recognised to the extent that it has become reasonably certain that
future taxable income will be available against which such deferred tax
assets can be realized.
At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
(e) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at tower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value is made to recognise a
decline other than temporary in the value of the investments.
(f) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for events of bonus issue; bonus element in a rights issue
to existing shareholder share split; and reverse share split
(consolidation of shares)
(g) Inventories
Stock in trade of Company consists Shares only.Share are Valued at
Cost.
(h) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation and impairment losses if any. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. Borrowing costs
relating to acquisition of fixed assets which takes substantial period
of time to get ready for its intended use are also included to the
extent they relate to the period till such assets are ready to be put
to use.
(i) Depreciation
Depreciation is provided using the Straight Line Method as per the
useful lives of the assets estimated by the management, or at the rates
prescribed under schedule XIV of the Companies Act, 1956 whichever is
higher.
(j) Employee Benefit
Retirement benefits and leave encashment is accounted for on accrual
basis.
(k) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions 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
estimates. Provisions for expenditure relating to voluntary retirement
is made when the employee accepts the offer of early retirement.
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