Mar 31, 2017
Pact Industries Limited General Information :
Balance Sheet, Profit & Loss Accounts have been drawn on 31.03.2017 comprising of 12 months. (from 01.04.2016 to 31.03.2017) and previous year figures have been drawn as on 31.03.2016 comprising of 12 months (from 01.04.2015 to 31.03.2016).
The Company is a public limited company incorporated and domiciled in India and has its registered office at 303, Hotel The Taksonz, Opp. Railway Station G.T. Road, Ludhiana, Punjab, India. The Company has its primary listings on BSE Limited and MCX Stock Exchange in India.
Significant Accounting Policies :
a) BASIS OF PREPARATION
The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules,2014.
b) REVENUE RECOGNITION:
Sales:
Revenue from sale of goods is recognized :
(i) when all the significant risks and rewards of ownership are transferred to the buyer and the company retains no effective control of the goods transferred to a degree usually associated with ownership; and
(ii) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.
Interest:
Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable
Insurance and Other Claims
Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized and the ultimate collection thereof.
c) USE OF ESTIMATES
The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provisions for doubtful debts, employee benefits, provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment.
d) FIXED ASSETS :
Fixed assets are stated at historical cost less accumulated depreciation. Interest on borrowed money allocated to and utilized for qualifying fixed assets, pertaining to the period up to the date of capitalization is capitalized. Assets acquired on direct finance lease are capitalized at the gross value and interest thereon is charged to profit and loss account. Intangible assets are stated at the consideration paid for acquisition less accumulated amortization .Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work-in-progress
e) IMPAIRMENT OF ASSETS:
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. In respect of goodwill the impairment loss will be reversed only when it was caused by specific external events and their effects have been reversed by subsequent external event..
f) INVENTORIES:
Raw materials, sub-assemblies and components are carried at the lower of cost and net realizable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realizable value. Stores and spare parts are carried at cost, less provision for obsolescence. Finished goods produced or purchased by the Company are carried at lower of cost and net realizable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.
g) TAXATION:
Current income tax expense comprises taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available to realize such assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance taxes paid and income tax provisions arising in the same tax jurisdiction and where the Company intends to settle the asset and liability on a net basis. The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.
h) FOREIGN CURRENCY TRANSACTIONS :
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Exchange differences arising on the settlement of monetary items or on reporting respective companyâs monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements ,are recognized as income or as expenses in the year in which they arise.
i) EMPLOYEE RETIREMENT BENEFITS :
Provident fund:
Employees receive benefits from a provident fund, a defined contribution plan. The employee and employer each make monthly contributions to the plan equal to 12% of the covered employeeâs salary. A contribution is made to the provident fund trust is made to the Governmentâs provident fund. During the year Rs 77023.00 have been contributed towards the contribution plan.
j) PROVISIONS. CONTIGENT LIABILITIES AND CONTIGENT ASSETS:
A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.
k) CASH FLOW STATEMENT
Cash flows are reported using indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.
l) CASH & CASH EQUIVALENTS
The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.
Depreciation
Depreciation on fixed assets is provided to the extent of Depreciable amount on the Written Down Value Method (WDV). Depreciation is provided based on useful life as prescribed in Schedule II to The Companies Act, 2013
Investments
Long term investments are stated at cost less provision for diminution in the value of such investments. Diminution in value is provided for where the management is of the opinion that the diminution is of permanent nature. Short term investments are valued at lower of cost and net realizable value
Borrowing costs
Borrowing costs directly attributable to acquisition or construction of fixed assets, which necessarily take a substantial period of time to get ready for their intended use are capitalized. Borrowing cost which are not relatable to qualifying asset are recognized as an expense in the period in which they are incurred.
Previous Year figures ended on 31.03.2016 have been given and some have been regrouped/rearranged for comparison.
Contingent Liabilities not provided for in respect of business during the year is NIL.
Debtors &Creditors Confirmations
The use of confirmation evidence is usually very important in the audit of trade debtors & creditors because there are few other sources of external corroborative evidence. It is usually suitable when the majority of the credit customers are reasonable-sized businesses because existence is an important assertion being verified, it is important that the source from which the sample is selected is tested for completeness. This usually requires selecting the sample from a list of balances that has been tested against the sales & purchase ledger respectively and totaled and agreed with the general ledger balance of debtor & creditors, Loans and advances are subject to confirmation and are taken/included in financial statement on the basis of entries in the books of accounts of the concern.
Operating Expenses Auditorâs remuneration
Auditor''s remuneration in relation to the company statutory audit amounts to Rs 25000.00. The following fees were payable by the company to their principal auditor, M/S Rajesh Mehru & Co.:
Mar 31, 2015
A) BASIS OF PREPARATION
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules,2006, as amended] and the other relevant provisions of
the Companies Act,1956.
b) REVENUE RECOGNITION:
Sales:
Revenue from sale of goods is recognized :
(i) when all the significant risks and rewards of ownership are
transferred to the buyer and the company retains no effective control
of the goods transferred to a degree usually associated with ownership;
and
(ii) No significant uncertainty exists regarding the amount of the
consideration that will be derived from the sale of goods.
Interest:
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable
Benefit under Duty Entitlement Pass Book Scheme / Duty Drawback Scheme
Revenue in respect of the above benefit is recognized on post export
basis.
Insurance and Other Claims
Revenue in respect of claims is recognized when no significant
uncertainty exists with regard to the amount to be realized and the
ultimate collection thereof.
c) USE OF ESTIMATES
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
benefits, provision for income taxes, the useful lives of depreciable
fixed assets and provisions for impairment.
d) FIXED ASSETS:
Fixed assets are stated at historical cost less accumulated
depreciation. Interest on borrowed money allocated to and utilized for
qualifying fixed assets, pertaining to the period up to the date of
capitalization is capitalized. Assets acquired on direct finance lease
are capitalized at the gross value and interest thereon is charged to
profit and loss account. Intangible assets are stated at the
consideration paid for acquisition less accumulated amortization .
Advances paid towards the acquisition of fixed assets outstanding as of
each balance sheet date and the cost of fixed assets not ready for use
before such date are disclosed under capital work-in-progress
e) IMPAIRMENT OF ASSETS:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs to is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the profit and loss account. If at the balance
sheet date there is an indication that if a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount subject to a
maximum of depreciated historical cost. In respect of goodwill the
impairment loss will be reversed only when it was caused by specific
external events and their effects have been reversed by subsequent
external event..
f) INVENTORIES:
Raw materials, sub-assemblies and components are carried at the lower
of cost and net realisable value. Cost is determined on a weighted
average basis. Purchased goods-in-transit are carried at cost.
Work-in-progress is carried at the lower of cost and net realisable
value. Stores and spare parts are carried at cost, less provision for
obsolescence. Finished goods produced or purchased by the Company are
carried at lower of cost and net realisable value. Cost includes direct
material and labour cost and a proportion of manufacturing overheads.
g) TAXATION:
Current income tax expense comprises taxes on income from operations in
India. Income tax payable in India is determined in accordance with the
provisions of the Income Tax Act, 1961.Deferred tax expense or benefit
is recognised on timing differences being the difference between
taxable incomes and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets and liabilities are measured using the tax rates and tax laws
that have been enacted or substantively enacted by the balance sheet
date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable income will be
available to realise such assets. In other situations, deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available to
realise these assets. Advance taxes and provisions for current income
taxes are presented in the balance sheet after off-setting advance
taxes paid and income tax provisions arising in the same tax
jurisdiction and where the Company intends to settle the asset and
liability on a net basis. The Company offsets deferred tax assets and
deferred tax liabilities if it has a legally enforceable right and
these relate to taxes on income levied by the same governing taxation
laws.
h) FOREIGN CURRENCY TRANSACTIONS :
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Exchange differences arising on the settlement of monetary
items or on reporting respective company's monetary items at rates
different from those at which they were initially recorded during the
year, or reported in previous financial statements ,are recognised as
income or as expenses in the year in which they arise.
i) EMPLOYEE RETIREMENT BENEFITS :
Provident fund:
Employees receive benefits from a provident fund, a defined
contribution plan. The employee and employer each make monthly
contributions to the plan equal to 12% of the covered employee's
salary. A contribution is made to the provident fund trust is made to
the Government's provident fund. During the year Rs 87106.00 have been
contributed towards the contribution plan.
j) WRITE OF MISCELLANEOUS EXP:
Revenue Expenditure is written off over as period of 10 years in
accordance with provision of section 35-d of Income-Tax Act, 1961.
k) PROVISIONS, CONTIGENT LIABILITIES AND CONTIGENT ASSETS:
A provision is recognised when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognised
in the financial statements. A contingent asset is neither recognised
nor disclosed in the financial statements.
l) CASH FLOW STATEMENT
Cash flows are reported using indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing
and financing activities of the Company are segregated.
m) CASH & CASH EQUIVALENTS
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
Mar 31, 2014
A) BASIS OF PREPARATION
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules,2006, as amended] and the other relevant provisions of
the Companies Act,1956.
b) REVENUE RECOGNITION: Sales:
Revenue from sale of goods is recognized :
(i) when all the significant risks and rewards of ownership are
transferred to the buyer and the company retains no effective control
of the goods transferred to a degree usually associated with ownership;
and
(ii) No significant uncertainty exists regarding the amount of the
consideration that will be derived from the sale of goods. Interest:
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable Benefit under Duty
Entitlement Pass Book Scheme / Duty Drawback Scheme Revenue in respect
of the above benefit is recognised on post export basis.
Insurance and Other Claims
Revenue in respect of claims is recognised when no significant
uncertainity exists with regard to the amount to be realised and the
ultimate collection thereof.
c) USE OF ESTIMATES
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
benefits, provision for income taxes, the useful lives of depreciable
fixed assets and provisions for impairment.
d) FIXED ASSETS :
Fixed assets are stated at historical cost less accumulated
depreciation.Interest on borrowed money allocated to and utilized for
qualifying fixed assets, pertaining to the period up to the date of
capitalization is capitalized. Assets acquired on direct finance lease
are capitalized at the gross value and interest thereon is charged to
profit and loss account. Intangible assets are stated at the
consideration paid for acquisition less accumulated amortization
.Advances paid towards the acquisition of fixed
assets outstanding as of each balance sheet date and the cost of fixed
assets not ready for use before such date are disclosed under capital
work-in-progress
e) IMPAIRMENT OF ASSETS:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs to is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the profit and loss account. If at the balance sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost. In respect of goodwill the impairment loss will be
reversed only when it was caused by specific external events and their
effects have been reversed by subsequent external event..
f) INVENTORIES:
Raw materials, sub-assemblies and components are carried at the lower
of cost and net realisable value. Cost is determined on a weighted
average basis. Purchased goods-in-transit are carried at cost.
Work-in-progress is carried at the lower of cost and net realisable
value. Stores and spare parts are carried at cost, less provision for
obsolescence. Finished goods produced or purchased by the Company are
carried at lower of cost and net realisable value. Cost includes direct
material and labour cost and a proportion of manufacturing overheads.
g) TAXATION:
Current income tax expense comprises taxes on income from operations in
India. Income tax payable in India is determined in accordance with the
provisions of the Income Tax Act, 1961.Deferred tax expense or benefit
is recognised on timing differences being the difference between
taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets and liabilities are measured using the tax rates and tax laws
that have been enacted or substantively enacted by the balance sheet
date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable income will be
available to realise such assets. In other situations, deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available to
realise these assets.Advance taxes and provisions for current income
taxes are presented in the balance sheet after off-setting advance
taxes paid and income tax provisions arising in the same tax
jurisdiction and where the Company intends to settle the asset and
liability on a net basis.The Company offsets deferred tax assets and
deferred tax liabilities if it has a legally enforceable right and
these relate to taxes on income levied by the same governing taxation
laws.
h) FOREIGN CURRENCY TRANSACTIONS :
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.Exchange differences arising on the settlement of monetary
items or on reporting respective company''s monetary items at rates
different from those at which they were initially recorded during the
year, or reported in previous financial statements ,are recognised as
income or as expenses in the year in which they arise.
i) EMPLOYEE RETIREMENT BENEFITS :
Provident fund:
Employees receive benefits from a provident fund, a defined
contribution plan. The employee and employer each make monthly
contributions to the plan equal to 12% of the covered employee''ssalary.
A contribution is made to the provident fund trust is made to the
Government''s provident fund.During the year Rs 130713.00 have been
contributed towards the contribution plan.
j) WRITE OF MISCELLANEOUS EXP :
Revenue Expenditure is written off over as period of 10 years in
accordance with provision of section 35-d of Income-Tax Act, 1961.
k) PROVISIONS, CONTIGENT LIABILITIES AND CONTIGENT ASSETS:
A provision is recognised when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognised
in the financial statements. A contingent asset is neither recognised
nor disclosed in the financial statements.
l) CASH FLOW STATEMENT
Cash flows are reported using indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non- cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
m) CASH & CASH EQUIVALENTS
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
Mar 31, 2013
A) BASIS OF PREPARATION
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards! Rules,2006, as amended] and the other retevant provisions of
the Companies Act,1956.
b) REVENUE RECOGNITION:
Sales:
Revenue from sale of goods is recognized.
(i) when all the significant risks and rewards of ownership are
transferred to the buyer and the company retains no effective control
of the goods transferred to a degree usually associated with ownership;
and
(it) No significant uncertainly exists regarding too amount of the
consideration that will tie derived from the sale of goods
Interest:
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable Benefit under Duty
Entitlement Pass Bock Scheme / Duty Drawback Scheme Revenue in respect
of the above benefit is recognised on post export basis.
Insurance and Other Claims
Revenue in respect of claims is recognised when no significant
uncertainly exists with regard to the amount to be realised and the
ultimate collection thereof.
c) USE OF ESTIMATES
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year Example of such
estimates include provisions for doubtful debts, employee benefits,
provision for income taxes, the useful fives of depreciable fixed
assets anti provisions for impairment.
d) FIXED ASSETS
Fixed assets are slated at historical cost less accumulaled
depreciation Interest on borrowed money allocated to and utilized for
qualifying fixed assets, pertaining to the period up to the dale of
capitalization is capitalized Assets acquired on direct finance lease
are capitalized at the gross value and interest thereon is charged Id
profit and loss account Intangible assets are stated at the
consideration paid for acquisition less accumulaled amortization
Advances paid towards lire acquisition of fixed assets outstanding as
of each balance sheet dale and the cost of fixed assets not ready for
use before such dale arc disclosed under capital work-in-
e) IMPAIRMENT OF ASSETS
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such Indication exists,
the Company estimates the recoverable amount of toe asset If such
recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs to is less than 4s carrying
amount. the carrying amount Is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
profit and loss account. It at the balance sheet dale there Is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated historical
coat. In respect ot goodwill the impairment toss will be reversed only
when it was caused by specific external events and their effects have
bean reversed by subsequent external event..
f) INVENTORIES:
Raw materials sub-assemblies and components are carried a! the lower of
cost and net realisable value. Cost Is determined on a weighted average
basis Purchased goods-in -transit are carried at cost. Work-in-progress
is carried at the lower of cost and net realisable value. Stores and
spare parts are carried at cost less provision for obsolescence
Finished goods produced or purchased by the Company are carried at
tower of cost and net realisable value. Cost includes direct material
and labour cost and a proportion of manufacturing overheads.
g) TAXATION:
Current income tax expense comprises faxes on Income from operations In
India. Income tax payable in India is determined In accordance with the
provisions of the Income Tax Act. 1961 Deferred tax expense or benefit
is recognised on timing differences being the difference between
taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods Deferred tax
assets and liabilities are measured using the lax rales and tax laws
that have been enacted or substantively enacted by the balance sheet
date.
In the event of unabsorbed depreciation and carry forward of tosses,
deferred lax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable Income will Be
available to realise such assets 111 other situations, deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available to
realise those assets Advance taxes and provisions for current Income
taxes are presented in the balance sheet after off setting advance
taxes paid and Income tax provisions arising in the same tax
jurisdiction and where the Company Intends lo settle the asset and
liability on a net basis.The Company offsets deferred tax assets and
deferred tax liabilities if it has a legally enforceable right and
these relate to taxes on income levied by the same governing taxation
laws.
h) FOREIGN CURRENCY TRANSACTIONS :
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the Foreign currency at the dale of the
transaction Exchange differences arising on the settlement of monetary
items or on reporting respective company's monetary items at rates
different from those at which they were initially recorded during the
year or reported in previous financial statements are recognised as
income or as expenses in the year in which they arise
i) EMPLOYEE RETIREMENT BENEFITS Provident fund:
Employees receive benefits from a provident fund, a defined
contribution plan. The employee and employer each make monthly
contributions to the plan equal lo 12% of the covered employee salary A
contribution is made to the provident fund trust is made to the
Government's provident fund. During the year Rs 1 40484.00 have Been
contributed towards the contribution plan
j) WRITE OF MISCELLANEOUS EXP
Revenue Expenditure is written off over as period of 10 years In
accordance with provision of section 35-d of Income-Tax Act. 1961,
k) PROVISIONS. CONTIGENT LIABILITIES AND CONTIGENT ASSETS:
A provision is recognised when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required lo settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on best
estimate required lo settle toe obligation at the balance sheet dale
These are reviewed at each balance Sheet date and adjusted to reflect
the current best estimates: Contingent liabilities are not recognised
in the financial statements. A contingent asset Is neither recognised
nor disclosed in the financial statements
l) CASH FLOW STATEMENT
Cash flows are reported using indirect method, whereby net profit
before lax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of post or future cash receipts or
payments The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
m) CASH & CASH EQUIVALENTS
The Company considers at highly liquid financial instruments, which are
readily convertible into cash and have original maturities of three
months or less from the dale al purchase, to be cash equivalents.
Depreciation
The Company has provided for depredation al the rates specified In
Schedule XIV to the Companies Act. 1956, except In cases of the
following assets, which are depreciated at commercial rales, which are
higher than the rates specified In Schedule XIV.
Investments
Long term investments are stated at cost less provision for diminution
in the value of such investments. Diminution in value Is provided for
where the management is of the opinion that the diminution is of
permanent nature. Short term investments are valued at lower of cost
and net realizable value
Borrowing casts
Borrowing costs directly attributable to acquisition or construction of
fixed assets, which necessarily lake a substantial period of lime to
get ready for their intended use are capitalised. Borrowing cost which
are not relable to qualifying asset are recognized as an expense In the
period in which they are incurred.
Previous Year figures ended on 31.03.2012 have been given and same have
been regrouped/rearranged lor comparison. Contingent Liabilities not
provided for in respect of business during the year is nil.
Debtors &Creditors Confirmations
The use of confirmation evidence is usually very important in the audit
of trade debtors & creditors because there are few other sources of
external corroborative evidence. II is usually suitable when the
majority of the credit customers are reasonable-sized businesses
because existence is an important assertion being verified, It is
important that the source from which the sample is selected is tested
for completeness this usually requires selecting the sample from a list
of Balances that has been tested against the sales & purchase ledger
repectively and totaled and agreed with the general ledger balance
Balance of debtor & creditors, Loans and advances are subject to
confirmation and are taken/included in financial statement on the basis
of entries in foe books of accounts of the concern.
Mar 31, 2012
The financial statements are prepared under the historical cost
convention, on accrual basis of accounting, in accordance with the
Accepted Accounting Principles in India and comply with the mandatory
Accounting Standards as notified by the Companies (Accounting
Standards) Rules, 2006, to the extent applicable and the presentational
requirements of the Companies Act, 1956. The accounting polices
followed are stated below:
a) ACCOUNTING METHOD :
The company has adopted the mercantile system of accounting in
preparation of the financial statements.
b) FIXED ASSETS :
The Company has stated Fixed Assets at cost of acquisition/construction
net of Cenvat credit, including all incidental expenses attributable to
the acquisition and installation of assets, upto the date when the
assets are ready for use. The cost includes all pre- operative expenses
relating to construction/pre-installation period including direct and
allocable indirect expenses. During the year ended 31.03.2012 the
company has converted some of its fixed assets into stock in trade, as
a result of which the value of the assets converted into stock in trade
had been deducted from the machinery block of the fixed assets. The
treatment given is in conformity with the AS-10 "fixed assets" issued
by ICAI. The value of the asset converted and the block under which it
falls is Rs. 9294027.91/- and the same has being disclosed under the
Note-12 of the balance sheet under the head "Inventories".
c) DEPRECIATION :
The Company has been charged on fixed assets as per the rates
prescribed in the Companies Act, 1956 during the year. During the year
ended 31.03.2012 the company has converted some of its fixed assets
into stock in trade, as a result of which the value of the assets
converted into stock in trade had been deducted from the machinery
block of the fixed assets. As per the guidelines laid down by the AS-6
"Depreciation Accounting" the company had reduced the amount of the
accumulated depreciation standing in the books against these assets
converted into stock in trade. The same had been adjusted against the
Gross block to give a fair view of the present standing of the Block in
the books of the company. The amount adjusted is as follows:
The depreciation on this block is claimed after the adjustment had been
done on the remaining assets.
d) INVENTORIES:
Stock have been Valued at cost or market price, which ever is lower.
During the year some fixed assets have been converted into stock in
trade. The same has being disclosed along with the normal inventories
under the Note-12 "inventories".
e) EMPLOYEE BENEFITS & RETIREMENT BENEFITS :
(i) EMPLOYEE BENEFITS:
The company had contributed Rs. 114708.00/- to the funds like E.S.I. &
E.P.F. for the benefit of the employees. Apart from this the company
had also paid Rs. 201467.00/- & Rs. 116010.00/- to employees as Bonus &
Leave with wages during the year.
(ii) RETIREMENT BENEFITS:
Since none of employees completed the continues period of 5 years as
stipulated under the Payment of Gratuity act. No provision for gratuity
has been made.
f) WRITE OF MISCELLANEOUS EXP :
Revenue Expenditure if any is written off over the period as is
described & in accordance with provisions of section 35-d of Income-Tax
Act, 1961.
Mar 31, 2011
The financial statement have been prepared in accordance with accepted
accounting Standards and relevant Presentations requirement of the
convention and on the accounting policies followed which are stated
below:
a) ACCOUNTING METHOD
The company has adopted the mercantile system of accounting in
preparation of the financial statements.
b) FIXED ASSETS
The Company has stated Fixed Assets at cost of
acquisition/construction. The cost includes all pre-operative expenses
relating to construction/pre-installation period including direct and
allocable indirect expenses.
c) DEPRECIATION
1) Fixed Assets figures have been shown at book value , depreciation
upto date have been credited to the separe reserve a/c.
2) The company has provided depreciation on W.D.V. method as per the
Inocme Tax Act,1961.
d) INVENTORIES
Inventories has been valued at cost or market price whichever is lower.
e) RETIREMENT BENEFITS
Since none of employees completed the continues period of 5 years as
stipulated under the Payment of Gratuity act. No provisions for
gratuity has been made.
e) WRITE OF MISCELLANEOUS EXP.
Revenue Expenditure is written off over as period of 10 years in
accordance with provision of section 35-d of Income-Tax Act, 1961.
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