Mar 31, 2013
1. BASIS FOR PREPARATION OF ACCOUNTS
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money
3. USE OF ESTIMATES:-
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialize.
4. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
5. TANGIBLE FIXED ASSETS
Fixed assets, except Land and Leasehold Land, are carried at cost less
accumulated depreciation and impairment losses, if any. The cost of
fixed assets includes interest on borrowings attributable to
acquisition of qualifying fixed assets up to the date the asset is
ready for its intended use and other incidental expenses incurred up to
that date. Exchange differences arising on restatement / settlement of
long-term foreign currency borrowings relating to acquisition of
depreciable fixed assets are adjusted to the cost of the respective
assets and depreciated over the remaining useful life of such assets.
Machinery spares which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalised
and depreciated over the useful life of the principal item of the
relevant assets. Subsequent expenditure relating to fixed assets is
capitalised only if such expenditure results in an increase in the
future benefits from such asset beyond its previously assessed standard
of performance.
6. BORROWING COSTS
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing costs, allocated to and utilised for
qualifying assets, pertaining to the period from commencement of
activities relating to construction / development of the qualifying
asset upto the date of capitalisation of such asset is added to the
cost of the assets.
7. DEPRECIATION
a) Fixed assets except land, leasehold land, Factory Building and Plant
and Machinery (Old) are depreciated on straight line method on a
pro-rata basis from the month in which each assets is put to use.
Depreciation has been provided at the rates prescribed in Schedule XIV
to the Companies Act, 1956.
b) Plant and machinery, the written down value of which at the
beginning of the year is Rs. 5,000 or less, and other assets, the
written down value of which at the beginning of the year is Rs. 1,000
or less, are depreciated at the rate of 100%. Assets purchased during
the year costing Rs 5000 or less are depreciated at the rate of 100%.
8. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value
b) Obsolete and Non-Moving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management.
9. INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
10. EMPLOYEES BENEFITS
As per information and Explanation given to us, No Provision made for
the Employees Benefits Plan.
11. TAXES ON INCOME
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
12. Segmental Reporting
The reporting requirements of Segmental Reporting (AS-17) are not
applicable on the company.
13. Contingent Liabilities
- Claims against the Company disputed and not acknowledged as debts -
NIL
- The contingent liability which might arise from pending assessments
under various statutes. In view of the management the effect of same
is not ascertainable.
Mar 31, 2012
1. BASIS FOR PREPARATION OF ACCOUNTS
The Financial Statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act 1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money.
3. USE OF ESTIMATES
The preparation of the Financial Statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the Financial Statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known materialize.
4. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
5. TANGIBLE FIXED ASSETS
Fixed assets, except Land and Leasehold Land, are carried at cost less
accumulated depreciation and impairment losses, if any. The cost of
fixed assets includes interest on borrowings attributable to
acquisition of qualifying fixed assets up to the date the asset is
ready for its intended use and other incidental expenses incurred up to
that date. Exchange differences arising on restatement / settlement of
long-term foreign currency borrowings relating to acquisition of
depreciable fixed assets are adjusted to the cost of the respective
assets and depreciated over the remaining useful life of such assets.
Machinery spares which can be used only in connection with an item of
fixed assets and whose use is expected to be irregular are capitalized
and depreciated over the useful life of the principal item of the
relevant assets. Subsequent expenditure relating to fixed assets is
capitalized only if such expenditure results in an increase in the
future benefits from such asset beyond its previously assessed standard
of performance.
6. BORROWING COSTS
Borrowing costs include interest; amortization of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing costs, allocated to and utilized for
qualifying assets, pertaining to the period from commencement of
activities relating to construction / development of the qualifying
asset up to the date of capitalization of such asset is added to the
cost of the assets.
7. DEPRECIATION
a) Fixed assets except Land, Leasehold Land Factory, Building and Plant
and Machinery (Old) are depreciated on straight line method on a
pro-data basis from the month in which each asset is put to use.
Depreciation has been provided at the rates prescribed in Schedule XIV
to the Companies Act, 1956.
b) Plant and Machinery, the written down value of which at the
beginning of the year is Rs. 5,000 or less, and other assets, the
written down value of which at the beginning of the year is Rs. 1,000
or less, are depreciated at the rate of 100%. Assets purchased during
the year costing Rs 5000 or less are depreciated at the rate of 100%.
8. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value
b) Obsolete and Non-Moving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management.
9. INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
10. EMPLOYEES BENEFITS
As per information and explanation given to us, No Provision made for
the Employees Benefits Plan.
11. TAXES ON INCOME
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainly that there
will be sufficient future taxable income available to realize such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainly exists that
sufficient future taxable income will be available against which these
can be realized. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance sheet date for their
realisability.
12. Segmental Reporting
The reporting requirements of Segmental Reporting (AS-17) are not
applicable on the company.
13. Contingent Liabilities
- Claims against the Company disputed and not acknowledged as debts -
NIL
- The contingent liability which might arise from pending assessments
under various statutes. In view of the management the effect of same
is not ascertainable.
Mar 31, 2011
1. BASIS FOR PREPARATION OF ACCOUNTS
These financial statements have been prepared to comply in all material
respects with all the applicable accounting principles in India, the
applicable accounting standard notified under section 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act,
1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money
3. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
4. FIXED ASSETS
Fixed assets are carried at cost of acquisition or construction or at
manufacturing cost in the year of capitalization less accumulated
depreciation.
5. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production at qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of that
asset.
6. DEPRECIATION
a) Fixed assets except leasehold land and vehicles are depreciated on
straight line method on a pro-rata basis from the month in which each
assets is put to use. Depreciation has been provided at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
b) Plant and machinery, the written down value of which at the
beginning of the year is Rs. 5,000 or less, and other assets, the
written down value of which at the beginning of the year is Rs. 1,000
or less, are depreciated at the rate of 100%. Assets purchased during
the year costing Rs 5000 or less are depreciated at the rate of 100%.
c) No Depreciation has been charged in the books except for New
Machinery, Furniture and Computer purchased during the current
financial year.
7. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basis and net realizable value
b) Obsolete and Non-Moving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management
8. INVESTMENTS
Current investments are valued at. the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
9. DEFERRED TAXES
Tax expense for the period, comprising current tax and deferred tax, is
included in determining the net profit/(loss) for the year. Current tax
is recognized based on assessable profit computed in accordance with
the Income Tax Act and at the prevailing tax rate.
Deferred tax is recognized for all (fuming differences. Deferred tax
assets are carried forward to the extent it is reasonably / virtually
certain that future taxable profit will be available against which such
deferred tax assets can be realized. Deferred tax assets are reviewed
at each balance sheet date and written down/ written up to reflect the
amount that is reasonably/ virtually certain (as the case may be) to be
realized. '
Deferred tax assets and liabilities are measured at the tax rates that
have been enacted or substantively enacted at the balance sheet date.
Mar 31, 2010
1. BASIS FOR PREPARATION OF ACCOUNTS
These financial statements have been prepared to comply in all material
respects with all the applicable accounting principles in India, the
applicable accounting standard notified under section 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act,
1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money
3. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
4. FIXED ASSETS
Fixed assets are carried at cost of acquisition or construction or at
manufacturing cost in the year of capitalization less accumulated
depreciation.
5. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of that
asset.
6. DEPRECIATION
a) Fixed assets except leasehold land and vehicles are depreciated on
straight line method on a pro-rata basis from the month in which each
assets is put to use. Depreciation has been provided at the rates
prescribed in Schedule XIV to the Companies Act, 1956-
b) Plant and machinery, the written down value of which at the
beginning of the year is Rs. 5,000 or less, and other assets, the
written down value of which at the beginning of the year is Rs. 1,000
or less, are depreciated at the rate of 100%. Assets purchased during
the year costing Rs 5000 or less are depreciated at the rate of 100%.
c) No Depreciation has been charged in the books except for New
Machinery, Furniture and Computer purchased during the current
financial year.
7. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basts, and net realizable value
b) Obsolete and Non-Moving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management
8. INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
9. DEFERRED TAXES
Tax expense for the period, comprising current tax and deferred tax, is
included in determining the net profit/(loss) for the year. Current tax
is recognized based on assessable profit computed in accordance with
the Income Tax Act and at the prevailing tax rate.
Deferred tax is recognized for all timing differences. Deferred tax
assets are carried forward to the extent it is reasonably / virtually
certain that future taxable profit will be available against which such
deferred tax assets can be realized. Deferred tax assets are reviewed
at each balance sheet date and written down/ written up to reflect the
amount that is reasonably/ virtually certain (as the case may be) to be
realized.
Deferred tax assets and liabilities are measured at the tax rates that
have been enacted or substantively enacted at the balance sheet date.
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