Mar 31, 2014
Basis of Accounting
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The Company follows the accrual system of accounting
on a going concern basis.
Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities and the
reported income and expenses during the year. The Management believes
that the estimates used in preparation of the financial statements are
prudent and reasonable. Future results could differ due to these
estimates and the differences between the actual results and the
estimates are recognised in the periods in which the results are known
/ materialise.
Inventories
Inventories of materials and stores/spares & consumables etc. are
valued at cost determined on FIFO basis and the net realisable value
after providing for obsolescence and other losses, where considered
necessary. Cost includes all charges in bringing the goods to the point
of sale, including octroi and other levies, transit insurance and
receiving charges. Work- in-progress and finished goods include
appropriate proportion of overheads and, where applicable, excise duty.
Fixed assets
Fixed assets are stated at cost of acquisition or construction. All
cost relating to the acquisition and installation of fixed assets are
capitalized and includes borrowing cost directly attributable to
company.
Capital work-in-progress
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses and attributable interest.
Depreciation
The company is providing depreciation on depreciable fixed assets at
the rates provided on Straight Line Method basis at the rates provided
by the schedule XIV of The Companies Act, 1956 from the date of actual
put to use i.e. on pro-rata basis.
Revenue Recognition
Sales are accounted for on dispatch of goods to the customers and are
exclusive of the Excise, Sales return, and Vat.
All other income is accounted on accrual basis. Dividend income is
accounted on cash basis.
Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
Investments
Long-term investments are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Costs of investments include acquisition charges such as
brokerage, fees and duties.
Retirement Benefits
Liabilities in respect of bonus, gratuity, retirement benefit & leave
encashment is being accounted for on cash basis.
Borrowing Cost
Borrowing costs directly attributable to the acquisition and
construction of qualifying fixed assets are capitalized as part of the
cost of the assets, up to the date the asset is put to use. Other
borrowing costs are charged to the Profit and Loss Account.
Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit / (loss) amounts are evaluated regularly by the executive
Management in deciding how to allocate resources and in assessing
performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market / fair value factors.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/expenses/assets/liabilities.
Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
Preliminary Expenditure
Preliminary Expenditure is apportioned in five equal installments,
commencing from the year in which the expenditure has been incurred.
Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if
such items relate to taxes on income levied by the same governing tax
laws and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product''s technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the 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 Liability are determined on the basis of available
information and explanation and are disclosed by way of note to the
accounts. Provision is made in the accounts in respect of those
contingencies which are likely to materialize into liabilities after
the year end, till the finalization of accounts and have material
effect on the position stated in the balance sheet. All liabilities
have been provided for in the accounts except liabilities of a
contingent nature, which have been disclosed at their estimated valuing
the notes to the accounts.
Share issues expenses
Share issue expenses and redemption premium are adjusted against the
Securities Premium Account as permissible under Section 78(2) of the
Companies Act, 1956 to the extent balance is available for utilisation
in the Securities Premium Account. The balance of share issue expenses
is carried as an asset and is amortised over a period of 5 years from
the date of the issue of shares.
Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
Mar 31, 2012
A. Brief Business Activity
Rishabhdev Technocable Ltd is Engaged in Manufacturing & Trading of All
Types of cables, Wires, Electrical Products, Industrial & House Hold
Wires & Materials, Copper Metals PVC Compound For Electrical Cables
Application, as per customers & Indian Standard Specification & as per
requirements, The Largest Manufacturers of Special Process Control
Instrumentation Cables, Thermocouple Extension & Compensating Cables,
Profibus Cables DH 2 Cables, Hi - Speed Industrial Automation Cables &
Drive Systems, Any Type of Special Cables as per Customers
Specification As per International Standard, Shielded & Screened Cables
as per BS- IEC/IEEE/VDE /BIS/ANSI Standard Specification.
Basis of Accounting
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The Company follows the accrual system of accounting
on a going concern basis.
Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities and the
reported income and expenses during the year. The Management believes
that the estimates used in preparation of the financial statements are
prudent and reasonable. Future results could differ due to these
estimates and the differences between the actual results and the
estimates are recognised in the periods in which the results are known
/ materialise.
Inventories
Inventories of Raw materials and stores/spares & consumables etc. are
valued at cost determined on FIFO basis and the net realisable value
after providing for obsolescence and other losses, where considered
necessary. Cost includes all charges in bringing the goods to the point
of sale, including octroi and other levies, transit insurance and
receiving charges. Work- in-progress and finished goods include
appropriate proportion of overheads and, where applicable, excise duty.
Fixed assets
Fixed assets are stated at cost of acquisition or construction. All
cost relating to the acquisition and installation of fixed assets are
capitalized and includes borrowing cost directly attributable to
company.
Capital work-in-progress
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses and attributable interest.
Depreciation
The company is providing depreciation on depreciable fixed assets at
the rates provided on Straight Line Method basis at the rates provided
by the schedule XIV of The Companies Act, 1956 from the date of actual
put to use i.e. on pro-rata basis.
Revenue Recognition
Sales are accounted for on dispatch of goods to the customers and are
exclusive of the Excise, Sales return, and Vat.
All other income is accounted on accrual basis. Dividend income is
accounted on cash basis.
Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
Investments
Long-term investments are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Costs of investments include acquisition charges such as
brokerage, fees and duties.
Retirement Benefits
Liabilities in respect of bonus, gratuity, retirement benefit & leave
encashment is being accounted for on cash basis. Borrowing Cost
Borrowing costs directly attributable to the acquisition and
construction of qualifying fixed assets are capitalized as part of the
cost of the assets, up to the date the asset is put to use. Other
borrowing costs are charged to the Profit and Loss Account.
Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit / (loss) amounts are evaluated regularly by the executive
Management in deciding how to allocate resources and in assessing
performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market / fair value factors.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/expenses/assets/liabilities.
Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
Preliminary Expenditure
Preliminary Expenditure is apportioned in five equal installments,
commencing from the year in which the expenditure has been incurred.
Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product's technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the 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 Liability are determined on the basis of available
information and explanation and are disclosed by way of note to the
accounts. Provision is made in the accounts in respect of those
contingencies which are likely to materialize into liabilities after
the year end, till the finalization of accounts and have material
effect on the position stated in the balance sheet. All liabilities
have been provided for in the accounts except liabilities of a
contingent nature, which have been disclosed at their estimated valuing
the notes to the accounts.
Share issues expenses
Share issue expenses and redemption premium are adjusted against the
Securities Premium Account as permissible under Section 78(2) of the
Companies Act, 1 956 to the extent balance is available for utilisation
in the Securities Premium Account. The balance of share issue expenses
is carried as an asset and is amortised over a period of 5 years from
the date of the issue of shares.
Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
Mar 31, 2011
Critical Accounting Policies
The financial statements of the Company are prepared under the
historical cost convention on an accrual basis and in accordance with
the applicable mandatory accounting standards and other provisions of
the Companies Act. Our significant accounting policies.
1. Basis of Accounting
a) Financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
b) The Company follows the accrual system of accounting on a going
concern basis.
2. Fixed Assets and Capital Work in Progress
Fixed assets are stated at cost of acquisition or construction. All
cost relating to the acquisition and installation of fixed assets are
capitalized and includes borrowing cost directly attributable to
Company.
3. Depreciation
The Company is providing depreciation on depreciable fixed assets at
the rates provided on Straight Line Method basis at the rates provided
by the schedule XIV of The Companies Act, 1956 from the date of actual
put to use i.e. on pro-rata basics.
4. Revenue Recognition
Sales are accounted for on dispatch of goods to the customers and are
exclusive of the Excise, sales return, and vat.
5. Inventories
Inventories of Raw materials and stores/spares & consumables etc. are
valued at cost determined on FIFO basis. Finished goods and process
stock include cost of conversion and other cost incurred in bringing
the inventories to their present.
6. Retirement Benefits
Liabilities in respect of bonus, gratuity, retirement benefit & leave
encashment is being accounted for on cash basis.
7. Borrowing Cost
Borrowing costs directly attributable to the acquisition and
construction of qualifying fixed assets are capitalized as part of the
cost of the assets, up to the date the asset is put to use. Other
borrowing costs are charged to the Profit and Loss Account.
8. Preliminary Expenditure
Preliminary Expenditure is apportioned in five equal installments,
commencing from the year in which the expenditure has been incurred.
9. Taxes on Income
Taxes on Income is determined as the amount of tax payable in respect
of taxable income for the year and provided at the end of the year as
per the prevailing provisions of the Income Tax Act, 1961. Deferred tax
liabilities and assets are recognized at substantively enacted tax
rates, subject to consideration of prudence, on timing differences,
being the difference between taxable incomes and accounting income that
originates in one period and are capable of reversal in one or more
subsequent periods. The Company is eligible for exemption u/s 80 IB
since year 1999-2000.
10. Contingent Liability
Contingent Liability are determined on the basis of available
information and explanation and are disclosed by way of note to the
accounts. Provision is made in the accounts in respect of those
contingencies which are likely to materialize into liabilities after
the year end, till the finalization of accounts and have material
effect on the position stated in the balance sheet. All liabilities
have been provided for in the accounts except liabilities of a
contingent nature, which have been disclosed at their estimated valuing
the notes to the accounts.
Mar 31, 2010
The financial statements of the company are prepared under the
historical cost convention on an accrual basis and in accordance with
the applicable mandatory accounting standards and other provisions of
the Companies Act. Our significant accounting policies.
Basis of Accounting
a) Financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
The Company follows the accrual system of accounting on a going concern
basis.
2 B The Company follows the accrual system of accounting on a going
concern basis
Fixed Assets and Capital Work in Progress
(a) Fixed assets are stated at cost of acquisition or construction. All
cost relating to the acquisition and installation of fixed assets are
capitalised and includes borrowing cost directly attributable to
company.
3 Depreciation
The company is providing depreciation on depreciable fixed assets at
the rates provided on Straight Line Method basis at the rates provided
by the schedule XIV of The Companies Act, 1956 from the date of actual
put to use i.e. on pro-rata basis."
Revenue Recognition
Sales are accounted for on dispatch of goods to the customers and are
exclusive of the Excise, sales return, and vat. Ã
4 Inventories
(a) Inventories of Raw materials and stores/spares & consumables etc.
are valued at cost determined on FIFO basis. Finished goods and
process stock include cost of conversion and other cost incurred in
bringing the inventories to their present.
Retirement Benefits
Liabilities in respect of bonus, gratuity, retirement benefit & leave
encashment is being accounted for on cash basis. "
Borrowing Cost
Borrowing costs directly attributable to the acquisition and
construction of qualifying fixed assets are capitalized as part of the
cost of the assets, up to the date the asset is put to use. Other
borrowing costs are charged to the Profit and Loss Accoun
5 Preliminary Expenditure
Preliminary Expenditure is apportioned in five equal installments,
commencing from the year in which the expenditure has been incurred.
Taxes on Income
Taxes on Income is determined as the amount of tax payable in respect
of taxable income for the year and provided at the end of the year as
per the prevailing provisions of the Income Tax Act, 1961. Deferred tax
liabilities and assets are recognized at substantively enacted tax
rates, subject to consideration of prudence, on timing differences ,
being the difference between taxable incomes and accounting income that
originates in one period and are capable of reversal in one or more
subsequent periods. Fringe Benefit Tax (FBT) is accounted for on the
estimated value of fringe benefits for the period as per the related
provision of the Income Tax Act, 1961. The company is eligible for
exemption u/s 80 IB since year 1999-2000.
6 Contingent Liability
Contingent Liability are determined on the basis of available
information and explanation and are disclosed by way of note to the
accounts. Provision is made in the accounts in respect of those
contingencies which are likely to materialize into liabilities after
the year end, till the finalization of accounts and have material
effect on the position stated in the balancesheet. All liabilities have
been provided for in the accounts except liabilities of a contingent
nature, which have been disclosed at their estimated valuing the notes
to the accounts.
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