Mar 31, 2015
1) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention with the generally accepted accounting principles in India
including the Accounting Standards issued by The Institute of Chartered
Accountants and the provisions of the Companies Act, 2013. The
Accounting policies are consistent form one period to another.
2) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
3) Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the fixed assets are capitalized.
4) Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization / depletion. All costs, including
financing costs till commencement of commercial production, net charges
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalized.
5) Depreciation
Depreciation on fixed assets is provided to the extent of depreciable
amount on Written Down Value method (WDV) at the rates and in the
manner prescribed in Schedule XII to the Companies Act, 2013. The
useful life has been reworked so as to arrive at the revised rates of
depreciation for due compliance of the new provisions of depreciation.
6) Investments
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost.
Provision for diminution in the value of long-term investments is made
only if such a decline is other than temporary.
7) Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
8) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss account.
9) Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognized and carried forward only to the extent
that there is a virtual certainty that the asset will be realized in
future.
10) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
11) Event Occurring after the date of Balance Sheet
There is no important events occurred after the date of the balance
sheet which has a material effect on the profitability or the position
of the company.
12) Going Concern
The financial statement has been prepared assuming that the concern
will continue as going concern.
13) Earnings Per Share.
Earnings per share is calculated on distributable profits to equity
share holders after providing for the preference share dividend if any
this is in accordance with the AS-20.
14) Preliminary Expenses & Pre-operative expenses.
Preliminary expenses are capitalized and is written off over a period
of 5 years from the date company commences its business activities as
per section 35D of the Income Tax Act 1961. Other expenses which are
not termed as preliminary expenses are capitalized to the relevant
fixed assets as this are the expenses which are incurred to bring the
assets in operating conditions.
15) General
a) In the opinion of the Board of Directors, the value on realization
of current Assets, Loans and Advances and Receivables if realized in
the ordinary course of business, shall not be less than the amount at
which they are stated in the Balance Sheet and Receivables and Loans
and Advances including Capital Advances are considered goods and
recoverable on an ongoing basis.
b) The balances of Sundry Creditors, Deposits Given, Loans and Advances
and Receivables are subject to confirmation.
c) Figures have been regrouped and rearranged wherever found necessary.
Mar 31, 2014
1) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
2) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
3) Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the fixed assets are capitalized.
4) Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization / depletion. All costs, including
financing costs till commencement of commercial production, net charges
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalized.
5) Depreciation
Depreciation on fixed assets is provided to the extent of depreciable
amount on Straight Line Method (SLM) at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
6) Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts is recognized over
the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
7) Investments
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost.
Provision for diminution in the value of long-term investments is made
only if such a decline is other than temporary.
8) Inventories
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any.
9) Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
10) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss account.
11) Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognized and carried forward only to the extent
that there is a virtual certainty that the asset will be realized in
future.
12) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
13) Event Occurring after the date of Balance Sheet
There is no important events occurred after the date of the balance
sheet which has a material effect on the profitability or the position
of the company.
14) Going Concern
The financial statement has been prepared assuming that the company
will continue as going concern.
15) Earning Per Share
Earning per share is calculated on distributable profits to equity
share holders after providing for the preference share dividend if any
this is in accordance with the AS-20.
16) Preliminary Expenses & Pre-operative expenses
Preliminary expenses are capitalized and is written off over a period
of 5 years from the date company commences its business activities as
per section 35D of the Income Tax Act 1961. Other expenses which are
not termed as preliminary expenses are capitalized to the relevant
fixed assets as this are the expenses which are incurred to bring the
assets in operating conditions.
17) Figures have been regrouped and rearranged wherever found
necessary.
18) Figures in brackets represent figures of previous year.
Mar 31, 2012
1) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
2) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
3) Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the fixed assets are capitalized.
4) Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization / depletion. All costs, including
financing costs till commencement of commercial production, net charges
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalized.
5) Depreciation
Depreciation on fixed assets is provided to the extent of depreciable
amount on Straight Line Method (SLM) at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
6) Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at year end rates. In case of items which are covered by
forward
exchange contracts, the difference between the year end rate and rate
on the date of the contract is recognized as exchange difference and
the premium paid on forward contracts is recognized over the life of
the contract.
(c) Non monetary foreign currency items are carried at cost.
(e) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
7) Investments
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost.
Provision for diminution in the value of long-term investments is made
only if such a decline is other than temporary.
8) Inventories
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any.
9) Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
10) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss account.
11) Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognized and carried forward only to the extent
that there is a virtual certainty that the asset will be realized in
future.
12) Provisions. Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
13) Event Occurring after the date of Balance Sheet
There is no important events occurred after the date of the balance
sheet which has a material effect on the profitability or the position
of the company.
14) Going Concern
The financial statement have been prepared assuming that the company
will continue as going concern.
15) Earning Per Share
Earning per share is calculated on distributable profits to equity
share holders after providing for the preference share dividend if any
this is in accordance with the AS-20.
16) Preliminariy Expenses & Pre-operative expenses
Preliminary expenses are capitalized and is written off over a period
of 5 years from the date company commences its business activities as
per section 35D of the Income Tax Act 1961. Other expenses which are
not termed as preliminary expenses are capitalized to the relevant
fixed assets as this are the expenses which are incurred to bring the
assets in operating conditions.
17) Figures have been regrouped and rearranged wherever found
necessary.
18) Figures in brackets represent figures of previous year.
Mar 31, 2010
A) Basis of preparation of financial statements
The financial statements are prepared on an accrual basis of accounting
and in accordance with the generally accepted principles in India,
provisions of the Companies Act, 1956 an comply in material aspects
with the accounting standards notified under Section 211 (3C) of the
Act, read with Companies (Accounting Standards) Rules, 2006.
b) Fixed Assets
Fixed Assets are valued at cost of acquisition inclusive of freight,
duties, taxes, cost of financing during construction period and
expenses related to acquisition, installation, Erection and
commissioning.
c) Depreciation
Depreciation is provided on straight line basis at the rates specified
in Schedule XIV to the Companies Act, 1956 from the date on which the
assets is put to use.
d) Valuation of Inventory
The finished goods are valued at lower of the cost or market value. The
stores and spares are valued at cost.
e) Preliminary Expenses
Preliminary Expenses are amortized as per section 35D of the Income Tax
Act, 1961.
f) Employee Retirement Benefits
Provision for payment of Gratuity to employees is not made. The same is
accounted in the year in which it is paid.
g) Revenue Recognition
Revenue on the job work is recognized on the basis of completion of
work.
h) Investment
Investments are valued at cost. Any temporary dilution has not been
provided for as they are meant for long term.
i) General Accounts are prepared on the Historical Cost Concept method
and as per the Accounting standards and in accordance with the normally
accepted Accounting Principles. The company adopts the Accrual concept
in the preparation of the accounts.
j) Retirement Benefits
Contributions to defined contribution schemes such as gratuity are
charged to Profit and Loss account as incurred. The Company also
provides for retirement benefits in the form of gratuity and leave
encashment.
k) Accounting for Taxes on Income
Provision for current tax is made after taking into consideration of
benefits admissible under the provisions of Income Tax Act, 1961.
Deferred tax resulting from "timing difference" between book and
taxable profit is accounted for using the tax rates and laws that have
been enacted as on the balance sheet date. The deferred tax liability
is recognized and carried forward only to the extent that there is a
reasonable certainty that the assets will be realized in future.
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