Mar 31, 2015
1.1 Basis of Accounting
The Company maintains its accounts on going concern basis following the
historical cost convention as per the generally accepted accounting
principles prevalent in India and on accrual method of accounting.
1.2 Basis for preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with Accounting Standards notified by the
Central Government and the provisions of the Companies Act, 2013, as
adopted consistently by the Company. All income and expenditure having
a material bearing on the financial statements are recognized on
accrual basis.
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of
financial statements, and the reported amounts of revenues and expenses
during the reporting period. Examples of such expenses include
estimates of contract completion costs, provision for doubtful debts,
useful lives of fixed assets etc. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
1.3 Revenue Recognition
Revenue from Sales/Services is accounted for as net of taxes and the
principles of revenue recognition are given below:-
* Revenue from services rendered is recognized as the service is
performed.
* Income from turnkey projects is recognized as a percentage and in
proportion to work completion. However in cases of contracts where
consideration is separately defined / identified for supply of
goods/materials whose distinct identity remains even after project
completion, revenue is recognized based on delivery at site to the
customers.
* In case of fixed-price contracts, revenue is recognized based on the
milestones achieved as specified in the contracts.
* Revenue from sales is recognized upon passing of title/
shipment/Installation of the products and on transfer of significant
risk and rewards of ownership.
* Dividend income is recognized when the right to receive dividend is
established.
* Interest is recognized on time proportion basis.
1.4 Fixed Assets
Fixed Assets are stated at cost of acquisition inclusive of freight,
duties, taxes and expenses incidental to acquisition and installation
till its present location.
1.5 Depreciation
Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.
1.6 Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or
construction of Fixed Assets, which take substantial period of time to
get ready for its intended use, are capitalized until the time all
substantial activities necessary to prepare such assets for their
intended use are complete. Other borrowing costs are recognized as an
expense in the year in which they are incurred.
1.7 Impairment
Accounting for impairment of Fixed Assets is done in accordance with the
Accounting Standard 28 - "Impairment of Assets". Accordingly, the
carrying values of assets are reviewed at each reporting date to
determine if there is indication of any impairment. If any indication
exists, the assets' recoverable amount is estimated. For assets that are
not yet available for use, the recoverable amount is estimated at each
reporting date. An impairment loss is recognised whenever the carrying
amount of an asset or its cash generating unit exceeds its recoverable
amount. Impairment losses are recognised in the Profit and Loss Account.
An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss
is reversed only to the extent that the asset's carrying amount does not
exceed the carrying amount that would have been determined net of
depreciation or amortisation, if no impairment loss has been recognised.
1.8 Employee Benefits
* All employee benefits payable/available within twelve months of
rendering the service are classified as shortterm employee benefits in
terms of Accounting Standard 15 (Revised)- "Employee Benefits".
Benefits such as salaries, wages and bonus etc., are recognised in the
Profit and Loss Account in the period in which the employee renders the
related service.
* Gratuity costs are defined benefits plans. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
* Benefits under the Companies leave encashment scheme constitute other
long term employee benefits. The obligation in respect of leave
encashment is provided on the basis on actuarial.
* Valuation carried out by an independent actuary using the Projected
Unit Credit Method, which recognises each period of service as giving
rise to additional unit of employee benefit entitlement and measure
each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account
* The Company is contributing to the Employee Provident Fund maintained
under the Employees Provident Fund Scheme by the Central Government.
1.9 Finance Lease
Accounting for Financial Lease is done in accordance with Accounting
Standard 19 - "Leases". The assets are included in fixed assets and the
capital elements of the leasing commitments are shown as obligations
under leases liability. The capital element is applied to reduce the
outstanding obligations and the interest element is charged against
profit in proportion to the reducing capital element outstanding.
Depreciation on Assets held under finance leases has been provided on
Written down Value Method as per rates prescribed by Schedule-II to the
Companies Act, 2013.
1.10 Accounting for Investments
Investments are accounted for in accordance with the Accounting
Standard 13 - "Accounting for Investments". Investments that are
readily realizable 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. Accordingly,
* The Long Term Investments are recorded at cost except where there is
permanent diminution in its value.
* The Short Term Investments are recorded at Cost or Market Price
whichever is lower. Unrealized loss arising due to the fall in market
price is provided for in the accounts and any gain thereof is ignored.
1.11 Foreign Currency Transactions
Foreign Currency transactions are being recorded in accordance with
Accounting Standard 11 "The Effects of changes in Foreign Exchange
Rates". Accordingly,
* Foreign currency transactions are accounted at the exchange rates
prevailing on the date of the transactions. Gains and losses, if any,
at the year-end in respect of monetary assets and monetary liabilities
not covered by the forward contracts are recognized in the Profit and
Loss Account.
* Non-Monetary items denominated in foreign currency are stated at the
rate prevailing on the date of the transaction.
Taxes on Income
Deferred Tax:
Deferred Tax Liability is provided pursuant to Accounting Standard -
22, "Accounting for Taxes on Income". Deferred Tax Assets and Deferred
Tax Liability are calculated by applying tax rates and tax laws that
have been enacted or substantively enacted at the balance sheet date.
Deferred Tax Liability arising mainly on account of excess depreciation
allowed under Income tax laws.
Deferred Tax Assets due to expenses disallowed under section 40(a)
under tax laws and on account of other timing differences are
recognized only to the extent there is reasonable certainty of its
realization.
Deferred Tax Assets due to unabsorbed depreciation or carry forward of
losses under tax laws is recognizes only to the extent that there is a
virtual certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
asset can be realized.
Current Tax:
The provision for Taxation is based on estimated assessable total
income of the Company as determined under the Income Tax Act 1961.
1.12 Provisions, Contingencies and Contingent Assets
Provisions, Contingencies and Contingent Assets are accounted for in
accordance with Accounting Standard 29 - "Provisions, Contingent
Liabilities & Contingent Assets". Accordingly,
* A provision is created when there is a present obligation as a result
of a past event that probably requires an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
* A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
* Contingent Assets are neither recognized, nor disclosed
1.13 Cash and cash equivalents
Cash and cash equivalents include cash in hand and cash on deposit with
banks.
1.15 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income and expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
Mar 31, 2014
1.1 Basis of Accounting
The company maintains its accounts on going concern basis following the
historical cost convention as per the generally accepted accounting
principles prevalent in India and on accrual method of accounting.
1.2 Basis for preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with Accounting Standards notified by the
Central Government and the provisions of the Companies Act, 1956, as
adopted consistently by the Company. All income and expenditure having
a material bearing on the financial statements are recognized on
accrual basis.
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of
financial statements, and the reported amounts of revenues and expenses
during the reporting period. Examples of such expenses include
estimates of contract completion costs, provision for doubtful debts,
useful lives of fixed assets etc. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
1.3 Revenue Recognition
Revenue from Sales/Services is accounted for as net of taxes and the
principles of revenue recognition are given below:-
- Revenue from services rendered is recognized as the service is
performed.
- Income from turnkey projects is recognized as a percentage and in
proportion to work completion. However in cases of contracts where
consideration is separately defined / identified for supply of
goods/materials whose distinct identity remains even after project
completion, revenue is recognized based on delivery at site to the
customers.
- In case of fixed-price contracts, revenue is recognized based on
the milestones achieved as specified in the contracts.
- Revenue from sales is recognized upon passing of title/
shipment/Installation of the products and on transfer of significant
risk and rewards of ownership.
- Dividend income is recognized when the right to receive dividend is
established.
- Interest is recognized on time proportion basis.
1.4 Fixed Assets
Fixed Assets are stated at cost of acquisition inclusive of freight,
duties, taxes and expenses incidental to acquisition and installation
till its present location.
1.5 Depreciation
Depreciation on Fixed Assets has been provided on Written down Value
Method as per rates prescribed by Schedule-XIV to the Companies Act,
1956.
1.6 Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or
construction of Fixed Assets, which take substantial period of time to
get ready for its intended use, are capitalized until the time all
substantial activities necessary to prepare such assets for their
intended use are complete. Other borrowing costs are recognized as an
expense in the year in which they are incurred.
1.7 Impairment
Accounting for impairment of Fixed Assets is done in accordance with
the Accounting Standard 28 - "Impairment of Assets". Accordingly,
the carrying values of assets are reviewed at each reporting date to
determine if there is indication of any impairment. If any indication
exists, the assets'' recoverable amount is estimated. For assets that
are not yet available for use, the recoverable amount is estimated at
each reporting date. An impairment loss is recognised whenever the
carrying amount of an asset or its cash generating unit exceeds its
recoverable amount. Impairment losses are recognised in the Profit and
Loss Account. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset''s
carrying amount does not exceed the carrying amount that would have
been determined net of depreciation or amortisation, if no impairment
loss has been recognised.
1.8 Employee Benefits
- All employee benefits payable/available within twelve months of
rendering the service are classified as short-term employee benefits in
terms of Accounting Standard 15 (Revised)- "Employee Benefits".
Benefits such as salaries, wages and bonus etc., are recognised in the
Profit and Loss Account in the period in which the employee renders the
related service.
- Gratuity costs are defined benefits plans. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
- Benefits under the Company''s leave encashment scheme constitute
other long term employee benefits. The obligation in respect of leave
encashment is provided on the basis on actuarial
- valuation carried out by an independent actuary using the Projected
Unit Credit Method, which recognises each period of service as giving
rise to additional unit of employee benefit entitlement and measure
each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account
- The company is contributing to the Employee Provident Fund
maintained under the Employees Provident Fund Scheme by the Central
Government.
1.9 Finance Lease
Accounting for Financial Lease is done in accordance with Accounting
Standard 19 - "Leases". The assets are included in fixed assets and
the capital elements of the leasing commitments are shown as
obligations under leases liability. The capital element is applied to
reduce the outstanding obligations and the interest element is charged
against profit in proportion to the reducing capital element
outstanding. Depreciation on Assets held under finance leases has been
provided on Written down Value Method as per rates prescribed by
Schedule-XIV to the Companies Act, 1956.
1.10 Accounting for Investments
Investments are accounted for in accordance with the Accounting
Standard 13 - "Accounting for Investments". Investments that are
readily realizable 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. Accordingly,
- The Long Term Investments are recorded at cost except where there
is permanent diminution in its value.
- The Short Term Investments are recorded at Cost or Market Price
whichever is lower. Unrealized loss arising due to the fall in market
price is provided for in the accounts and any gain thereof is ignored.
1.11 Foreign Currency Transactions
Foreign Currency transactions are being recorded in accordance with
Accounting Standard 11 "The Effects of changes in Foreign Exchange
Rates". Accordingly,
- Foreign currency transactions are accounted at the exchange rates
prevailing on the date of the transactions. Gains and losses, if any,
at the year-end in respect of monetary assets and monetary liabilities
not covered by the forward contracts are recognized in the Profit and
Loss Account.
- Non-Monetary items denominated in foreign currency are stated at
the rate prevailing on the date of the transaction.
1.12 Taxes on Income Deferred Tax:
Deferred Tax Liability is provided pursuant to Accounting Standard -
22, "Accounting for Taxes on Income". Deferred Tax Assets and
Deferred Tax Liability are calculated by applying tax rates and tax
laws that have been enacted or substantively enacted at the balance
sheet date. Deferred Tax Liability arising mainly on account of excess
depreciation allowed under Income tax laws.
Deferred Tax Assets due to expenses disallowed under section 40(a)
under tax laws and on account of other timing differences are
recognized only to the extent there is reasonable certainty of its
realization.
Deferred Tax Assets due to unabsorbed depreciation or carry forward of
losses under tax laws is recognizes only to the extent that there is a
virtual certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
asset can be realized.
Current Tax:
The provision for Taxation is based on estimated assessable total
income of the company as determined under the Income Tax Act 1961.
1.13 Provisions, Contingencies and Contingent Assets
Provisions, Contingencies and Contingent Assets are accounted for in
accordance with Accounting Standard 29 - "Provisions, Contingent
Liabilities & Contingent Assets". Accordingly,
- A provision is created when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
- A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
- Contingent Assets are neither recognized, nor disclosed
Mar 31, 2013
1. Basis of Accounting
The company maintains its accounts ongoing concern basis following the
historical cost convention as per the generally accepted accounting
principles prevalent in India and on accrual method of accounting.
2. Basis for preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with Accounting Standards notified by the
Central Government and the provisions of the Companies Act, 1956, as
adopted consistently by the Company. All income and expenditure having
a material bearing on the financial statements are recognized on
accrual basis.
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of
financial statements, and the reported amounts of revenues and expenses
during the reporting period. Examples of such expenses include
estimates of contract completion costs, provision for doubtful debts,
useful lives of fixed assets etc. Actual results could differ from
those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
3. Revenue Recognition
Revenue from Sales/Services is accounted for as net of taxes and the
principles of revenue recognition are given below:-
- Revenue from services rendered is recognized as the service is
performed.
- Income from turnkey projects is recognized as a percentage and in
proportion to work completion. However in cases of contracts where
consideration is separately defined / identified for supply of
goods/materials whose distinct identity remains even after project
completion, revenue is recognized based on delivery at site to the
customers.
- In case of fixed-price contracts, revenue is recognized based on
the milestones achieved as specified in the contracts.
- Revenue from sales is recognized upon passing of title/
shipment/Installation of the products and on transfer of significant
risk and rewards of ownership.
- Dividend income is recognized when the right to receive dividend is
established.
- Interest is recognized on time proportion basis.
4. Fixed Assets
Fixed Assets are stated at cost of acquisition inclusive of freight,
duties, taxes and expenses incidental to acquisition and installation
till its present location.
5. Depreciation
Depreciation on Fixed Assets has been provided on Written down Value
Method as per rates prescribed by Schedule-XIV to the Companies Act,
1956.
6. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or
construction of Fixed Assets, which take substantial period of time to
get ready for its intended use, are capitalized until the time all
substantial activities necessary to prepare such assets for their
intended use are complete. Other borrowing costs are recognized as an
expense in the year in which they are incurred.
7. Impairment
Accounting for impairment of Fixed Assets is done in accordance with
the Accounting Standard 28 - "Impairment of Assets". Accordingly,
the carrying values of assets are reviewed at each reporting date to
determine if there is indication of any impairment. If any indication
exists, the assets'' recoverable amount is estimated. For assets that
are not yet available for use, the recoverable amount is estimated at
each reporting date. An impairment loss is recognized whenever the
carrying amount of an asset or its cash generating unit exceeds its
recoverable amount. Impairment losses are recognized in the Profit and
Loss Account. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset''s
carrying amount does not exceed the carrying amount that would have
been determined net of depreciation or amortization, if no impairment
loss has been recognized.
8. Employee Benefits
- All employee benefits payable/available within twelve months of
rendering the service are classified as short-term employee benefits in
terms of Accounting Standard 15 (Revised)- "Employee Benefits".
Benefits such as salaries, wages and bonus etc., are recognized in the
Profit and Loss Account in the period in which the employee renders the
related service.
- Gratuity costs are defined benefits plans. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
- Benefits under the Company''s leave encashment scheme constitute
other long term employee benefits. The obligation in respect of leave
encashment is provided on the basis on actuarial valuation carried out
by an independent actuary using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measure each unit separately to build
up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account
- The company is contributing to the Employee Provident Fund
maintained under the Employees Provident Fund Scheme by the Central
Government.
9. Finance Lease
Accounting for Financial Lease is done in accordance with Accounting
Standard 19 - "Leases". The assets are included in fixed assets and
the capital elements of the leasing commitments are shown as
obligations under leases liability. The capital element is applied to
reduce the outstanding obligations and the interest element is charged
against profit in proportion to the reducing capital element
outstanding. Depreciation on Assets held under finance leases has been
provided on Written down Value Method as per rates prescribed by
Schedule-XIV to the Companies Act, 1956.
10. Accounting for Investments
Investments are accounted for in accordance with the Accounting
Standard 13 - "Accounting for Investments". Investments that are
readily realizable 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. Accordingly,
- The Long Term Investments are recorded at cost except where there
is permanent diminution in its value.
- The Short Term Investments are recorded at Cost or Market Price
whichever is lower. Unrealized loss arising due to the fall in market
price is provided for in the accounts and any gain thereof is ignored.
11. Foreign Currency Transactions
Foreign Currency transactions are being recorded in accordance with
Accounting Standard 11 "The Effects of changes in Foreign Exchange
Rates". Accordingly,
- Foreign currency transactions are accounted at the exchange rates
prevailing on the date of the transactions. Gains and losses, if any,
at the year-end in respect of monetary assets and monetary liabilities
not covered by the forward contracts are recognized in the Profit and
Loss Account.
- Non-Monetary items denominated in foreign currency are stated at
the rate prevailing on the date of the transaction.
12. Taxes on Income Deferred Tax:
Deferred Tax Liability is provided pursuant to Accounting Standard -
22, "Accounting for Taxes on Income". Deferred Tax Assets and
Deferred Tax Liability are calculated by applying tax rates and tax
laws that have been enacted or substantively enacted at the balance
sheet date. Deferred Tax Liability arising mainly on account of excess
depreciation allowed under Income tax laws.
Deferred Tax Assets due to expenses disallowed under section 40(a)
under tax laws and on account of other timing differences are
recognized only to the extent there is reasonable certainty of its
realization.
Deferred Tax Assets due to unabsorbed depreciation or carry forward of
losses under tax laws is recognizes only to the extent that there is a
virtual certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
asset can be realized.
Current Tax:
The provision for Taxation is based on estimated assessable total
income of the company as determined under the Income Tax Act 1961.
13. Provisions, Contingencies and Contingent Assets
Provisions, Contingencies and Contingent Assets are accounted for in
accordance with Accounting Standard 29 -"Provisions, Contingent
Liabilities & Contingent Assets". Accordingly,
- A provision is created when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
- A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
- Contingent Assets are neither recognized, nor disclosed
Mar 31, 2012
1. Basis of Accounting
The company maintains its accounts on going concern basis following the
historical cost convention as per the generally accepted accounting
principles prevalent in India and on accrual method of accounting.
2. Basis for preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with Accounting Standards notified by the
Central Government and the provisions of the Companies Act, 1956, as
adopted consistently by the Company. All income and expenditure having
a material bearing on the financial statements are recognized on
accrual basis.
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of
financial statements, and the reported amounts of revenues and expenses
during the reporting period. Examples of such expenses include
estimates of contract completion costs, provision for doubtful debts,
useful lives of fixed assets etc. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
3. Revenue Recognition
Revenue from Sales/Services is accounted for as net of taxes and the
principles of revenue recognition are given below:-
- Revenue from services rendered is recognized as the service is
performed.
- Income from turnkey projects is recognized as a percentage and in
proportion to work completion. However in cases of contracts where
consideration is separately defined / identified for supply of
goods/materials whose distinct identity remains even after project
completion, revenue is recognized based on delivery at site to the
customers.
- In case of fixed-price contracts, revenue is recognized based on
the milestones achieved as specified in the contracts.
- Revenue from sales is recognized upon passing of title/
shipment/Installation of the products and on transfer of significant
risk and rewards of ownership.
- Dividend income is recognized when the right to receive dividend is
established.
- Interest is recognized on time proportion basis.
4. Fixed Assets
Fixed Assets are stated at cost of acquisition inclusive of freight,
duties, taxes and expenses incidental to acquisition and installation
till its present location.
5. Depreciation
Depreciation on Fixed Assets has been provided on Written down Value
Method as per rates prescribed by Schedule-XIV to the Companies Act,
1956.
6. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or
construction of Fixed Assets, which take substantial period of time to
get ready for its intended use, are capitalized until the time all
substantial activities necessary to prepare such assets for their
intended use are complete. Other borrowing costs are recognized as an
expense in the year in which they are incurred.
7. Impairment
Accounting for impairment of Fixed Assets is done in accordance with
the Accounting Standard 28 - "Impairment of Assets". Accordingly,
the carrying values of assets are reviewed at each reporting date to
determine if there is indication of any impairment. If any indication
exists, the assets' recoverable amount is estimated. For assets that
are not yet available for use, the recoverable amount is estimated at
each reporting date. An impairment loss is recognised whenever the
carrying amount of an asset or its cash generating unit exceeds its
recoverable amount. Impairment losses are recognised in the Profit and
Loss Account. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset's
carrying amount does not exceed the carrying amount that would have
been determined net of depreciation or amortisation, if no impairment
loss has been recognised.
8. Employee Benefits
- All employee benefits payable/available within twelve months of
rendering the service are classified as short-term employee benefits in
terms of Accounting Standard 15 (Revised)- "Employee Benefits".
Benefits such as salaries, wages and bonus etc., are recognised in the
Profit and Loss Account in the period in which the employee renders the
related service.
- Gratuity costs are defined benefits plans. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
- Benefits under the Company's leave encashment scheme constitute
other long term employee benefits. The obligation in respect of leave
encashment is provided on the basis on actuarial valuation carried out
by an independent actuary using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measure each unit separately to build
up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account
- The company is contributing to the Employee Provident Fund
maintained under the Employees Provident Fund Scheme by the Central
Government.
9. Finance Lease
Accounting for Financial Lease is done in accordance with Accounting
Standard 19 - "Leases". The assets are included in fixed assets and
the capital elements of the leasing commitments are shown as
obligations under leases liability. The capital element is applied to
reduce the outstanding obligations and the interest element is charged
against profit in proportion to the reducing capital element
outstanding. Depreciation on Assets held under finance leases has been
provided on Written down Value Method as per rates prescribed by
Schedule-XIV to the Companies Act, 1956.
10. Accounting for Investments
Investments are accounted for in accordance with the Accounting
Standard 13 - "Accounting for Investments". Investments that are
readily realizable 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. Accordingly,
- The Long Term Investments are recorded at cost except where there
is permanent diminution in its value.
- The Short Term Investments are recorded at Cost or Market Price
whichever is lower. Unrealized loss arising due to the fall in market
price is provided for in the accounts and any gain thereof is ignored.
11. Foreign Currency Transactions
Foreign Currency transactions are being recorded in accordance with
Accounting Standard 11 "The Effects of changes in Foreign Exchange
Rates". Accordingly,
- Foreign currency transactions are accounted at the exchange rates
prevailing on the date of the transactions. Gains and losses, if any,
at the year-end in respect of monetary assets and monetary liabilities
not covered by the forward contracts are recognized in the Profit and
Loss Account.
- Non-Monetary items denominated in foreign currency are stated at
the rate prevailing on the date of the transaction.
12. Taxes on Income Deferred Tax:
Deferred Tax Liability is provided pursuant to Accounting Standard -
22, "Accounting for Taxes on Income". Deferred Tax Assets and
Deferred Tax Liability are calculated by applying tax rates and tax
laws that have been enacted or substantively enacted at the balance
sheet date. Deferred Tax Liability arising mainly on account of excess
depreciation allowed under Income tax laws.
Deferred Tax Assets due to expenses disallowed under section 40(a)
under tax laws and on account of other timing differences are
recognized only to the extent there is reasonable certainty of its
realization.
Deferred Tax Assets due to unabsorbed depreciation or carry forward of
losses under tax laws is recognizes only to the extent that there is a
virtual certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
asset can be realized.
Current Tax:
The provision for Taxation is based on estimated assessable total
income of the company as determined under the Income Tax Act 1961.
13. Provisions, Contingencies and Contingent Assets
Provisions, Contingencies and Contingent Assets are accounted for in
accordance with Accounting Standard 29 - "Provisions, Contingent
Liabilities & Contingent Assets". Accordingly,
- A provision is created when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
- A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
- Contingent Assets are neither recognized, nor disclosed
Mar 31, 2011
1. Basis of Accounting
The company maintains its accounts on going concern basis following the
historical cost convention as per the generally accepted accounting
principles prevalent in India and on accrual method of accounting.
2. Basis for preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with Accounting Standards notified by the
Central Government and the provisions of the Companies Act, 1956, as
adopted consistently by the Company. All income and expenditure having
a material bearing on the financial statements are recognized on
accrual basis.
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of
financial statements, and the reported amounts of revenues and expenses
during the reporting period. Examples of such expenses include
estimates of contract completion costs, provision for doubtful debts,
useful lives of fixed assets etc. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
3. Revenue Recognition
Revenue from Sales/Services is accounted for as net of taxes and the
principles of revenue recognition are given below:- - Revenue from
services rendered is recognized as the service is performed.
- Income from turnkey projects is recognized as a percentage and in
proportion to work completion. However in cases of contracts where
consideration is separately defined / identified for supply of
goods/materials whose distinct identity remains even after project
completion, revenue is recognized based on delivery at site to the
customers.
- In case of fixed-price contracts, revenue is recognized based on the
milestones achieved as specified in the contracts.
- Revenue from sales is recognized upon passing of title/
shipment/Installation of the products and on transfer of significant
risk and rewards of ownership.
- Dividend income is recognized when the right to receive dividend is
established.
- Interest is recognized on time proportion basis.
4. Fixed Assets
Fixed Assets are stated at cost of acquisition inclusive of freight,
duties, taxes and expenses incidental to acquisition and installation
till its present location.
5. Depreciation
Depreciation on Fixed Assets has been provided on Written down Value
Method as per rates prescribed by Schedule-XIV to the Companies Act,
1956.
6. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or
construction of Fixed Assets, which take substantial period of time to
get ready for its intended use, are capitalized until the time all
substantial activities necessary to prepare such assets for their
intended use are complete. Other borrowing costs are recognized as an
expense in the year in which they are incurred.
7. Impairment
Accounting for impairment of Fixed Assets is done in accordance with
the Accounting Standard 28 Ã "Impairment of Assets". Accordingly, the
carrying values of assets are reviewed at each reporting date to
determine if there is indication of any impairment. If any indication
exists, the assets recoverable amount is estimated. For assets that
are not yet available for
use, the recoverable amount is estimated at each reporting date. An
impairment loss is recognised whenever the carrying amount of an asset
or its cash generating unit exceeds its recoverable amount. Impairment
losses are recognised in the Profit and Loss Account. An impairment
loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only
to the extent that the assets carrying amount does not exceed the
carrying amount that would have been determined net of depreciation or
amortisation, if no impairment loss has been recognised.
8. Employee Benefits
- All employee benefits payable/available within twelve months of
rendering the service are classified as short-term employee benefits in
terms of Accounting Standard 15 (Revised)Ã "Employee Benefits".
Benefits such as salaries, wages and bonus etc., are recognised in the
Profit and Loss Account in the period in which the employee renders the
related service.
- Gratuity costs are defined benefits plans. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
- Benefits under the Companys leave encashment scheme constitute other
long term employee benefits. The obligation in respect of leave
encashment is provided on the basis on actuarial valuation carried out
by an independent actuary using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measure each unit separately to build
up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account
- The company is contributing to the Employee Provident Fund maintained
under the Employees Provident Fund Scheme by the Central Government.
9. Finance Lease
Accounting for Financial Lease is done in accordance with Accounting
Standard 19 Ã "Leases". The assets are included in fixed assets and the
capital elements of the leasing commitments are shown as obligations
under leases liability. The capital element is applied to reduce the
outstanding obligations and the interest element is charged against
profit in proportion to the reducing capital element outstanding.
Depreciation on Assets held under finance leases has been provided on
Written down Value Method as per rates prescribed by Schedule-XIV to
the Companies Act, 1956.
10. Accounting for Investments
Investments are accounted for in accordance with the Accounting
Standard 13 Ã "Accounting for Investments". Investments that are
readily realizable 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. Accordingly,
- The Long Term Investments are recorded at cost except where there is
permanent diminution in its value.
- The Short Term Investments are recorded at Cost or Market Price
whichever is lower. Unrealized loss arising due to the fall in market
price is provided for in the accounts and any gain thereof is ignored.
11. Foreign Currency Transactions
Foreign Currency transactions are being recorded in accordance with
Accounting Standard 11 "The Effects of changes in Foreign Exchange
Rates". Accordingly,
- Foreign currency transactions are accounted at the exchange rates
prevailing on the date of the transactions. Gains and losses, if any,
at the year-end in respect of monetary assets and monetary liabilities
not covered by the forward contracts are recognized in the Profit and
Loss Account.
- Non-Monetary items denominated in foreign currency are stated at the
rate prevailing on the date of the transaction.
12. Taxes on Income
Deferred Tax:
Deferred Tax Liability is provided pursuant to Accounting Standard Ã
22, "Accounting for Taxes on Income". Deferred Tax Assets and Deferred
Tax Liability are calculated by applying tax rates and tax laws that
have been enacted or substantively enacted at the balance sheet date.
Deferred Tax Liability arising mainly on account of excess depreciation
allowed under Income tax laws.
Deferred Tax Assets due to expenses disallowed under section 40(a)
under tax laws and on account of other timing differences are
recognized only to the extent there is reasonable certainty of its
realization.
Deferred Tax Assets due to unabsorbed depreciation or carry forward of
losses under tax laws is recognizes only to the extent that there is a
virtual certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
asset can be realized.
Current Tax:
The provision for Taxation is based on estimated assessable total
income of the company as determined under the Income Tax Act 1961.
13. Provisions, Contingencies and Contingent Assets
Provisions, Contingencies and Contingent Assets are accounted for in
accordance with Accounting Standard 29 Ã "Provisions, Contingent
Liabilities & Contingent Assets". Accordingly,
- A provision is created when there is a present obligation as a result
of a past event that probably requires an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
- A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
- Contingent Assets are neither recognized, nor disclosed
Mar 31, 2010
1. Basis of Accounting
The company maintains its accounts on going concern basis following the
historical cost convention as per the generally accepted accounting
principles prevalent in India and on accrual method of accounting.
2. Basis for preparation of financial statements
The financial statements have been prepared under the historical cost
convention, in accordance with Accounting Standards notified by the
Central Government and the provisions of the Companies Act, 1956, as
adopted consistently by the Company. All income and expenditure having
a material bearing on the financial statements are recognized on
accrual basis.
The preparation of financial statements in conformity with Accounting
Standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of
financial state- ments, and the reported amounts of revenues and
expenses during the reporting period. Examples of such expenses include
estimates of contract completion costs, provision for doubtful debts,
useful lives of fixed assets etc. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
3. Revenue Recognition
Revenue from Sales/Services is accounted for as net of taxes and the
principles of revenue recognition are given below:- Ã Revenue from
services rendered is recognized as the service is performed.
- Income from turnkey projects is recognized as a percentage and in
proportion to work completion. However in cases of contracts where
consideration is separately defined / identified for supply of
goods/materials whose distinct identity remains even after project
completion, revenue is recognized based on delivery at site to the
customers.
- In case of fixed-price contracts, revenue is recognized based on the
milestones achieved as specified in the contracts.
- Revenue from sales is recognized upon passing of title/
shipment/Installation of the products and on transfer of significant
risk and rewards of ownership.
- Dividend income is recognized when the right to receive dividend is
established.
- Interest is recognized on time proportion basis.
4. Fixed Assets
Fixed Assets are stated at cost of acquisition inclusive of freight,
duties, taxes and expenses incidental to acquisition and installation
till its present location.
5. Depreciation
Depreciation on Fixed Assets has been provided on Written down Value
Method as per rates prescribed by Schedule- XIV to the Companies Act,
1956.
6. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or
construction of Fixed Assets, which take substantial period of time to
get ready for its intended use, are capitalized until the time all
substantial activities necessary to prepare such assets for their
intended use are complete. Other borrowing costs are recognized as an
expense in the year in which they are incurred.
7. Impairment
Accounting for impairment of Fixed Assets is done in accordance with
the Accounting Standard 28 - "Impairment of Assets". Accordingly, the
carrying values of assets are reviewed at each reporting date to
determine if there is indica- tion of any impairment. If any indication
exists, the assets recoverable amount is estimated. For assets that
are not yet available for use, the recoverable amount is estimated at
each reporting date. An impairment loss is recognised whenever the
carrying amount of an asset or its cash generating unit exceeds its
recoverable amount. Impairment losses are recognised in the Profit and
Loss Account. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the assets
carrying amount does not exceed the carrying amount that would have
been determined net of depreciation or amortisation, if no impairment
loss has been recognised.
8. Employee Benefits
- All employee benefits payable/available within twelve months of
rendering the service are classified as short-term employee benefits in
terms of Accounting Standard 15 (Revised)- "Employee Benefits".
Benefits such as salaries, wages and bonus etc., are recognised in the
Profit and Loss Account in the period in which the employee renders the
related service.
- Gratuity costs are defined benefits plans. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account.
- Benefits under the Companys leave encashment scheme constitute other
long term employee benefits. The obligation in respect of leave
encashment is provided on the basis on actuarial valuation carried out
by an independent actuary using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measure each unit separately to build
up the final obligation.
The obligation is measured at the present value of estimated future
cash flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date, having
maturity periods approximating to the terms of related obligations.
Actuarial gains and losses are recognized immediately in the Profit and
Loss Account
- The company is contributing to the Employee Provident Fund maintained
under the Employees Provident Fund Scheme by the Central Government.
9. Finance Lease
Accounting for Financial Lease is done in accordance with Accounting
Standard 19 - "Leases". The assets are included in fixed assets and the
capital elements of the leasing commitments are shown as obligations
under leases liability. The capital element is applied to reduce the
outstanding obligations and the interest element is charged against
profit in proportion to the reducing capital element outstanding.
Depreciation on Assets held under finance leases has been provided on
Written down Value Method as per rates prescribed by Schedule-XIV to
the Companies Act, 1956.
10. Accounting for Investments
Investments are accounted for in accordance with the Accounting
Standard 13 - "Accounting for Investments". Invest- ments that are
readily realizable and intended to be held for not more than a year are
classified as current invest- ments. All other Investments are
classified as long term investments. Accordingly,
- The Long Term Investments are recorded at cost except where there is
permanent diminution in its value.
- The Short Term Investments are recorded at Cost or Market Price
whichever is lower. Unrealized loss arising due to the fall in market
price is provided for in the accounts and any gain thereof is ignored.
11. Foreign Currency Transactions
Foreign Currency transactions are being recorded in accordance with
Accounting Standard 11 "The Effects of changes in Foreign Exchange
Rates". Accordingly,
- Foreign currency transactions are accounted at the exchange rates
prevailing on the date of the transac- tions. Gains and losses, if any,
at the year-end in respect of monetary assets and monetary liabilities
not covered by the forward contracts are recognized in the Profit and
Loss Account.
- Non-Monetary items denominated in foreign currency are stated at the
rate prevailing on the date of the transaction.
12. Taxes on Income
Deferred Tax:
Deferred Tax Liability is provided pursuant to Accounting Standard -
22, "Accounting for Taxes on Income". Deferred Tax Assets and Deferred
Tax Liability are calculated by applying tax rates and tax laws that
have been enacted or substantively enacted at the balance sheet date.
Deferred Tax Liability arising mainly on account of excess depreciation
allowed under Income tax laws.
Deferred Tax Assets due to expenses disallowed under section 40(a)
under tax laws and on account of other timing differences are
recognized only to the extent there is reasonable certainty of its
realization.
Deferred Tax Assets due to unabsorbed depreciation or carry forward of
losses under tax laws is recognizes only to the extent that there is a
virtual certainty supported by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
asset can be realized.
Current Tax:
The provision for Taxation is based on estimated assessable total
income of the company as determined under the Income Tax Act 1961.
13. Provisions, Contingencies and Contingent Assets
Provisions, Contingencies and Contingent Assets are accounted for in
accordance with Accounting Standard 29 - "Provisions, Contingent
Liabilities & Contingent Assets". Accordingly,
- A provision is created when there is a present obligation as a result
of a past event that probably requires an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
- A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
- Contingent Assets are neither recognized, nor disclosed