Mar 31, 2015
I. Accounting Convention
The accounts of the Company have been prepared under the historical
cost convention on the accrual basis of accounting in accordance with
the accounting principles generally accepted in India (GAAP) and
comply with the mandatory accounting standards notified under the
relevant provisions of the Companies Act, 2013. The financial
statements are presented in Indian rupees rounded off to nearest
decimal.
During the year ended March 2015, the Schedule III notified under the
Companies Act, 2013 has become applicable to the Company for
presentation of its financial statements. The Schedule III has a
significant impact on the presentation and disclosures made in the
financial statements. The Company has also reclassified/ regrouped the
previous year figures in accordance with the requirements applicable
in the current year.
All Assets and Liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III of the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of
assets and liabilities.
II. TANGIBLE FIXED ASSETS AND DEPRECIATION
a) Ta) Tangible Fixed Assets are stated at original cost net of
tax/duty credits availed, if any, less accumulated depreciation
/amortization / impairment. The cost of fixed assets includes effect
of exchange difference on long term foreign currency borrowings,
freight and other incidental expenses related to the acquisition and
installation of the respective assets. Borrowings cost directly
attributable to fixed assets which necessarily take a substantial
period of time to get ready for their intended use are capitalized.
Interest on loans and other financial charges in respect of qualifying
assets and expenditure incurred on start up and commissioning of the
project and or substantial expansion, including the expenditure
incurred on Trial Runs up to the date of commencement of commercial
production are capitalized.
b) Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013, as per Straight
Line Method (SLM).
III. INVESTMENTS
Investments that are readily realizable and intended to be held for
not more than a year from the date of acquisition are classified as
current investments. All other investment is classified as long-term
investments. However, that part of long-term investments which is
expected to be realized within 12 months after reporting date is also
presented under Âcurrent assets' as "current portion of
long-term investments" in consonance with the current-non-current
classification scheme as prescribed in Schedule III to the Companies
Act, 2013.
Long- term investments are valued at cost. Any decline other than
temporary, in the value of long-term investments, is adjusted in the
carrying value of such investments. Current investments are carried
forward at lower of cost and fair value
Any reduction in the carrying amount and any reversals of such
reductions are charged or credited to the Statement of Profit and
Loss. Profit or Loss on sale of investments is determined on the basis
of weighted average carrying amount of investments disposed of.
IV. VALUATION OF INVENTORIES
Inventories are valued as per AS-2 (Valuation of Inventories) issued
by the ICAI as under:
a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.
b) Stock of Work in process is valued at cost of Raw Material and
proportionate direct manufacturing expenses.
c) Stock of stores, spares and packing material are valued at cost by
adopting FIFO Method.
d) Stocks of finished goods are valued at lower of cost or net
realizable value. Cost includes raw material cost and appropriate
share of manufacturing expenses and is inclusive of depreciation and
excise duty paid / payable thereon.
V. RESEARCH AND DEVELOPMENT EXPENDITURE
The capital expenditures are debited to the respective heads under
fixed assets. The revenue expenditure is charged to revenue account
and disclosed separately.
VI. BORROWING COSTS
Borrowing costs attributable to acquisition, construction of
qualifying assets are capitalized as part of cost of the relevant
assets upto the date the asset is put to use. All other borrowing
costs are recognized as an expense in the year in which they are
incurred.
VII. FOREIGN CURRENCY TRANSACTIONS
Transactions for foreign currency are recorded at the exchange rate
prevailing on the date of transaction. For the foreign currency
transactions outstanding at the end of the year, the exchange rate
differences are being recognized at year end. However, foreign
currency transactions which are settled up to the date of balance
sheet, the exchange fluctuation is therefore accounted for on actual
basis.
VIII. IMPAIRMENT OF ASSETS
In case of indication of impairment of the carrying amount of the
Company's assets, an asset's recoverable amount is estimated.
Impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount.
Reversal of impairment Loss recognized in prior periods is recorded
when there is an indication that the impairment loss recognized for
the assets no longer exists or has decreased.
Post impairment depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
IX. Earnings per Share
Basic Basic earnings per share are calculated by dividing the net
profit/(loss) for the period attributable to the equity shareholders
by the weighted average number of equity shares outstanding.
X. REVENUE RECOGNITION
a) Sales are recognized on dispatch of goods to customers. Sales
represents invoiced value of goods sold and services rendered, net of
sales tax but inclusive of excise duty.
b) Profit / Loss on sale of Fixed Assets are recognized in the year of
sale.
c) Interest is accounted on accrual basis.
d) Dividend is accounted on receipt basis.
XI. EMPLOYEE BENEFIT
a) Short-term employee benefits:
All employee benefit falling due within twelve months of the end of
the period in which the employee render the related services are
classified as short term employee benefits, which include benefits
like salaries, wages etc. are recognized as expenses in the period in
which the employee renders the related service and measured
accordingly.
b) Post-employment benefits:
Post employment benefit plans are classified into defined contribution
plans and defined benefit plans in line with the requirements of AS-15
on "Employee Benefit".
Gratuity and Leave Encashment
Gratuity and leave encashment which are defined benefits are
recognized in the Statement of Profit and Loss based on actuarial
valuation using projected unit credit method as at Balance Sheet date
by an independent actuary.
XII. DEFERRED REVENUE EXPENDITURE
Deferred revenue expenditure is written off over a period of six year.
XIII. MISCELLANEOUS EXPENDITURE
Miscellaneous Expenditure is written off over a five year
Mar 31, 2014
I. Accounting Convention
The accounts of the Company have been prepared under the historical
cost convention on the accrual basis of accounting in accordance with
the accounting principles generally accepted in India (GAAP) and comply
with the mandatory accounting standards notified under the Companies
(Accounting Standards) Rules, 2006, as amended, and with the relevant
provisions of the Companies Act, 1956. The financial statements are
presented in Indian rupees rounded off to nearest decimal.
All Assets and Liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the revised schedule VI of the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of
assets and Liabilities.
II. tangible fixed assets and depreciation
a) Tangible Fixed Assets are stated at original cost net of tax/duty
credits availed, if any, less accumulated depreciation /amortization /
impairment. The cost of fixed assets includes effect of exchange
difference on long term foreign currency borrowings, freight and other
incidental expenses related to the acquisition and installation of the
respective assets. Borrowings cost directly attributable to fixed
assets which necessarily take a substantial period of time to get ready
for their intended use are capitalized. Interest on loans and other
financial charges in respect of qualifying assets and expenditure
incurred on start up and commissioning of the project and or
substantial expansion, including the expenditure incurred on Trial Runs
up to the date of commencement of commercial production are
capitalized.
b) Depreciation is provided on Straight Line Method at rates mentioned
and in the manner specified in Schedule XIV to the Companies Act, 1956,
as
amended by Notification No.GSR 756 (E) dated 15th December, 1993 of the
Ministry of Law, Justice & Company Law Affairs, Department of Company
Affairs.
III. INVESTMENTS
Investments that are readily realizable and intended to be held for not
more than a year from the date of acquisition are classified as current
investments. All other investment is classified as long-term
investments. However, that part of long-term investments which is
expected to be realized within 12 months after reporting date is also
presented under ''current assets'' as "current portion of long-term
investments" in consonance with the current-non-current
classification scheme of revised Schedule VI.
Long- term investments are valued at cost. Any decline other than
temporary, in the value of long-term investments, is adjusted in the
carrying value of such investments. Current investments are carried
forward at lower of cost and fair value
Any reduction in the carrying amount and any reversals of such
reductions are charged or credited to the Statement of Profit and Loss.
Profit or Loss on sale of investments is determined on the basis of
weighted average carrying amount of investments disposed of.
IV. VALUATION OF INVENTORIES
Inventories are valued as per AS-2 (Valuation of Inventories) issued by
the ICAI as under:
a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.
b) Stock of Work in process is valued at cost of Raw Material and
proportionate direct manufacturing expenses.
c) Stock of stores, spares and packing material are valued at cost by
adopting FIFO Method.
d) Stocks of finished goods are valued at lower of cost or net
realizable value. Cost includes raw material cost and appropriate share
of manufacturing expenses and is inclusive of depreciation and excise
duty paid / payable thereon.
V. RESEARCH AND DEVELOpMENT EXpENDITURE
The capital expenditures are debited to the respective heads under
fixed assets. The revenue expenditure is charged to revenue account and
disclosed separately.
VI. BORROWING COSTS
Borrowing costs attributable to acquisition, construction of qualifying
assets are capitalized
as part of cost of the relevant assets upto the date the asset is put
to use. All other borrowing costs are recognized as an expense in the
year in which they are incurred.
VII. FOREIGN CURRENCY TRANSACTIONS
Transactions for foreign currency are recorded at the exchange rate
prevailing on the date of transaction. For the foreign currency
transactions outstanding at the end of the year, the exchange rate
differences are being recognized at year end. However, foreign currency
transactions which are settled up to the date of balance sheet, the
exchange fluctuation is therefore accounted for on actual basis
VIII. IMPAIRMENT OF ASSETS
In case of indication of impairment of the carrying amount of the
Company''s assets, an asset''s recoverable amount is estimated.
Impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount.
Reversal of impairment Loss recognized in prior periods is recorded
when there is an indication that the impairment loss recognized for the
assets no longer exists or has decreased.
Post impairment depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
IX. Earnings per Share
Basic earnings per share are calculated by dividing the net
profit/(loss) for the period attributable to the equity shareholders by
the weighted average number of equity shares outstanding
X. REVENUE RECOGNITION
a) Sales are recognized on dispatch of goods to customers. Sales
represents invoiced value of
goods sold and services rendered, net of sales tax but inclusive of
excise duty.
b) Profit/Loss on sale of Fixed Assets are recognized in the year of
sale.
c) Interest is accounted on accrual basis.
d) Dividend is accounted on receipt basis.
XI. EMPLOYEE BENEFIT
a) Short-term employee benefits:
All employee benefit falling due within twelve months of the end of the
period in which the employee render the related services are classified
as short term employee benefits, which include benefits like salaries,
wages etc. are recognized as expenses in the period in which the
employee renders the related service and measured accordingly
b) Post-employment benefits:
Post employment benefit plans are classified into defined contribution
plans and defined benefit plans in line with the requirements of AS-15
on "Employee Benefit".
Gratuity and Leave Encashment
Gratuity and leave encashment which are defined benefits are recognized
in the Statement of Profit and Loss based on actuarial valuation using
projected unit credit method as at Balance Sheet date by an independent
actuary
XII. DEFERRED REVENUE EXpENDITURE
Deferred revenue expenditure is written off over a period of six year.
XIII. MISCELLANEOUS EXpENDITURE
Miscellaneous Expenditure is written off over a five year
Mar 31, 2013
I. Accounting Convention
The accounts of the Company have been prepared under the historical
cost convention on the accrual basis of accounting in accordance with
the accounting principles generally accepted in India (GAAP) and comply
with the mandatory accounting standards notified under the Companies
(Accounting Standards) Rules, 2006, as amended, and with the relevant
provisions of the Companies Act, 1956. The financial statements are
presented in Indian rupees rounded off to nearest decimal.
All Assets and Liabilities have been classified as current or
non-current as per the_Xompany''s normal operating cycle and other
criteria set out in the revised schedule VI of the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of
assets and Liabilities.
II. TANGIBLE FIXED ASSETS AND DEPRECIATION
a) Tangible Fixed Assets are stated at original cost net of tax/duty
credits availed, if any, less accumulated depreciation /amortization /
impairment. The cost of fixed assets includes effect of exchange
difference on long term foreign currency borrowings, freight and other
incidental expenses related to the acquisition and installation of the
respective assets, Borrowings cost directly attributable to fixed
assets which necessarily taire a substantial period of time to get
ready for their intended use are capitalized. Interest on loans and
other financial charges in respect of qualifying assets and expenditure
incurred on start up and commissioning of the project and or
substantial expansion, including the expenditure incurred on Trial Runs
up to the date of commencement of commercial production are
capitalized.
b) Depreciation is provided on Straight Line Method at rates mentioned
and in the manner specified in Schedule XIV to the Companies Act, 1956,
as amended by Notification No.GSR 756 (E) dated 15fh December, 1993 of
the Ministry of Law, Justice & Company Law Affairs, Department of
Company Affairs.
III. INVESTMENTS
Investments that are readily realizable and intended to be held for not
more than a year from the date of acquisition are classified as current
investments. All other investment is classified as long-term
investments. However, that part of long-term investments which is
expected to be realized within 12 months after reporting date is also
presented under ''current assets'' as "current portion of long-term
investments" in-consonance with the current-non-current
classification scheme of revised Schedule VI.
Long- term investments are valued at cost. Any decline other than
temporary, in the value of long-term investments, is adjusted in the
carrying value of such investments. Current investments are carried
forwai L at lower of cost and fair value Any reduction in the carrying
amount and any reversals of such reductions are charged or credited to
the Statement of Profit and Loss. Profit or Loss on sale of
investments is determined on the basis of weighted average carrying
amount of investments disposed of.
IV. VALUATION OF INVENTORIES
inventories are valued as per AS-2 (Valuation of Inventories) issued by
the iCAl as under:
a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.
b) Stock of Work in process is valued at cost of Raw Material and
proportionate direct manufacturing expenses.
c) Stock of stores, spares and packing material are valued at cost by
adopting FIFO Method.
d) Stocks of finished goods are valued at lower of cost or net
realizable value. Cost includes raw material cost and appropriate share
of manufacturing expenses and is inclusive of depreciation and excise
duty paid / payable thereon.
V. RESEARCH AND DEVELOPMENT EXPENDITURE
The capital expenditures are debited to the respective heads under
fixed assets. The revenue expenditure is charged to revenue account and
disclosed separately.
VI. BORROWING COSTS
Borrowing costs attributable to acquisition, construction of qualifying
assets are capitalized as part of cost of the relevant assets upto the
date the asset is put to use. All other borrowing costs are recognized
as an expense in the year in which''they are ihcurfed.
Vli. FOREIGN CURRENCY TRANSACTIONS
I Transactions for foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Forthe foreign currency
transactions outstanding at the end of the year, the exchange rate
differences are being recognized at year end. However, foreign currency
transactions which are settled up to the date of balance sheet, the
exchange fluctuation is therefore accounted for on actual basis,
VIM. IMPAIRMENT OF ASSETS
In case of indication of impairment of the carrying amount of the
Company''s assets; an asset''s recoverable amount is estimated.
Impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount.
Reversal of Impairment Loss recognized in prior periods is recorded
when there is an indication that the impairment loss recognized for the
assets no longer exists or has decreased.
Post Impairment depreciation is provisions on revised carrying value
of the assets over its remaining useful life.
IX. Earhings per Share .
Basic earnings per shared are calculated by i _ dividing the net
profitf(toss) for the period Lb ii. attributable to the equity
shareholders by the I weighted average number of equity shares
outstanding
X REVENUE RECOGNlflONT
a) Sales- are recognized on dispatch of goods to customers. Sales
represents invoiced value of f goods sold and services rendered, net of
sales recognized in the year of sale.
c) Interest is accounted on basis.
XI. EMPLOYEE BENEFIT ^
a) Short-term employee benefits:
All employee benefit falling due within twelve months of the end of the
period in which the employee render the related services are classified
as short term employee benefits, which include benefits like salaries,
wages etc. are recognized as expenses in the period in which the
employee renders the related service and measured accordingly.
b) Post-employment benefits:
Post employment benefit plans are classified into defined contribution
plans and defined benefit plans in line with the requirements of A''S-15
on "Employee Benefit".
Gratuity and Leave Encashment
Gratuity and leave encashment which are defined benefts are recognized
in the Statement of Profit and Loss based on actuarial valuation using
projected unit credit method as at Balance Sheet date by an independent
actuary.
XM/DEFRRED revenue EXPENDITURE
Deferred revenue expenditure is written off over a period of six year.
XIII. MISCELLANEOUS EXPENDITURE
Miscellaneous Expenditure is Written off over a five year.
Notes:
a) The Term Loan from State Bank of Bikaner ancUaipur is secured by
first hypothecation charge by covering entire Fixed Assets of the
Company. Gollaterai security by extending of 2nd charge over Company''s
entire Current Assets {present and future) and personal Guarantee of
one Director.
b) Balance of Term Loan-l is payable In 1 quarterly instalments started
from April, 2013 (Previous year repayable in 7 quarterly instaiment
from April,2012).
c) Balance of Term Loan-11 is payable in 14 quarterly instalments
started from April, 2013 (Previous year repayable in 18 quarterly
instaiment from April,2012).
b) Car Loan are secured against hypothecation of vehicles purchase
thereunder. Repayment of monthly installment till the tenure of loan
concerned.
Mar 31, 2010
1. BASIS OF ACCOUNTING
a) The financial statements of the Company are prepared under the
historical Cost Convention using Accrual Method of Accounting.
b) The financial statements have been prepared in accordance with the
mandatory Accounting Standards and relevant presentation requirements
of the Companies Act, 1956.
2. FIXED ASSETS AND DEPRECIATION
a) Fixed assets are accounted for at cost of acquisition inclusive of
freight, duties, taxes, erection, installation and other incidentals
related to acquisitions and exclusive of Excise Modvat recoverable on
purchase of Capital Goods.
b) Cost of fixed Assets acquired from outside India are converted into
Indian rupees at the exchange rates prevailing on the date of
disbursements.
c) Depreciation on fixed Assets is provided on Straight Line Method
considering single shift working in accordance with the rates specified
in schedule XIV of the Companies Act, 1956 as amended by Notification
No. GSR 756(E) dated 16 December, 1993 of the Ministry of Law, Justice
& Company Law Affairs, Department of Company Affairs.
d) Stock of finished goods are valued at Lower of cost of net
realizable value. Cost includs raw materials cost and appropriate share
of manufacturing expenses and is inclusive of depreciation and excise
duty paid / payable thereon.
3. INVESTMENT
Investments are taken at cost.
4. SALES
Sales represents invoiced value of goods sold and services rendered,
net of sales tax but inclusive of excise duty.
5 INVENTORIES
Inventories are valued as per AS-2 (Valuation of Inventories) issued by
the ICAI as under:
a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.
b) Stock of Work in process is valued at cost of Raw Material and
proportionate direct manufacturing expenses.
c) Stock of stores, spares and packing material are valued at cost by
adopting FIFO Method.
d) Stock of finished goods are valued at lower of Cost or net
realizable value. Cost includes raw materials cost and appropriate
share of manufacturing expenses and is inclusive of depreciation and
excise duty paid/payable thereon.
6. RESEARCH AND DEVELOPMENT EXPENDITURE
The capital expenditures are debited to the respective heads under
fixed assets. The revenue expenditure is charged to revenue account and
disclosed separately.
7. BORROWING COSTS
Borrowing costs attributable to acquisition, construction
of qualifying assets are capitalized as part of cost of the relevant
asset up to the date the asset is put to use. All other borrowing costs
are recognized as an expense in the year in which they are incurred.
8. FOREIGN CURRENCY TRANSACTIONS
Transactions for foreign currency are recorded at the exchange rate
prevailing on the date of transaction. For the foreign currency
transactions outstanding at the end of the year, the exchange rate
difference are being recognized at year end. However, foreign currency
transactions which are settled up to the date of balance sheet, the
exchange fluctuation is therefore accounted for on actual basis.
9. RETIREMENT BENEFIT PLANS:
Future liability for gratuity and leave encashment is determined on the
basis of actuarial valuation at year end.
10. PROVISION FOR CURRENT AND DEFFEREDTAX :
Provision for current tax liability is estimated as per the provisions
of the Income Tax Act, 1961
Deferred tax is recognized subject to the consideration of prudence on
timing difference being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more period.
11. IMPAIRMENT OF ASSETS:
In case of indication of impairment of the carrying amount of the
Companys assets, an assets recoverable amount is estimated impairment
loss is recognized wherever the carrying amount of an asset exceeds its
recoverable amount.
Reversal of Impairment loss recognized in prior periods is recorded
when there is an indication that the impairment loss recognized for the
asset no longer exist or has decreased.
Post Impairment depreciation is provided on the revised carrying value
of the asset over its remaining useful life.
12. REVENUE RECOGNITION
i) Sales are recognized on dispatch of goods to customers.
ii) Profit / Loss on sale of investment and Fixed Assets are recognized
in the year of sale.
13. DEFERRED REVENUE EXPENDITURE
Deferred revenue expenditure is written off over a period of six year.
14.MISCELLENOUS EXPENDITURE
Miscellaneous Expenditure is written off over a five year.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article