Mar 31, 2015
A. ACCOUNTING CONCEPTS :
The accounts have been prepared on historical cost convention. The
company follows the accrual basis of accounting. The financial
statements are prepared in accordance with accounting standards
specified under section 133 of the companies act 2013,read with rule 7
of the companies ( Accounts) Rules ,2014 and the relevant provision of
companies act,2013.
b. USE OF ESTIMATES :
The preparation of financial statements requires the management of the
company to make estimates and assumption that effect 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. Differences between the actual results and estimates
are recognized in the period in which the results are
known/materialized. Though the management believes that the estimates
used are prudent and reasonable, actual results could differ from these
estimates.
c. FIXED ASSETS
Fixed Assets are stated at cost less.accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any directly
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing cost directly attributable to acquisition
or construction of those fixed assets which necessary takes substantial
period of time to get ready for their intended use are capitalized.
d. DEPRECIATION
In respect of fixed Assets, depreciation is charged on WDV basis to
write of the cost of the fixed asset. Useful life of fixed Asset is
taken on the basis of its use
e. INVESTMENTS
Investments are classified into current investments and non current
investments. Investments that are intended to be held for one year or
more as on the date of Balance sheet are classified as non current
investments and investments that are held for less than one year as on
the date of Balance Sheet are classified as current investments. Non
current investment are valued at cost. Income from investment is
recognized in the year in which it is accrued and states at gross.
f. INVENTORIES
The stock in trade during the year is valued at cost or net realizable
value whichever is less.
g. Employee Benefits :
No provision is made in respect of retirement benefits.
h. Revenue Recognition :
i) Revenue has been recognized as and when there is a reasonable
certainty of its ultimate realization
i. Contingent Liability :
i) Provisions are recognized for present obligation of uncertain timing
or amount as a result of a past event where a reliable estimate can be
made and it is probable that an outflow or resources embodying economic
benefits will be required to settle the obligation. Where it is not
possible that an outflow or resources embodying economic benefits will
be required or the amount cannot be estimated reliably, the obligation
is disclosed as contingent liability, unless the probability of outflow
or resources embodying economic benefits is remote.
ii) Possible obligations whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain events are also
disclosed as contingent liabilities unless the probability of outflow
of resources embodying economic benefit is remote.
j. Previous year's figures have been regrouped wherever necessary to
confirm to current year's groupings.
k. Cash and Cash equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less
Mar 31, 2013
A) Revenue Recognition
Purchases are stated net of discount and rate difference. Sales are
recognized when goods are invoiced to customer.
b) Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. The cost includes cost of acquisition / construction,
installation and other related expenses. Expenditure on projects under
implementation including preoperative expenses is treated as capital
work in progress.
c) Depreciation
Depreciation is been provided on assets used during the year.
Depreciation on addition/deletion during the year has been provided on
pro-rata basis with reference to the month of addition and deletion.
d) Investments
All the investments are stated cost.
e) Stock-in-trade
1. Inventories are valued at lower of cost or net realizable value.
2. Raw Material, Stores and Spare parts are valued at weighted average
method.
3. Other goods like Goods in process and finished goods are valued on
the basis of cost plus an appropriate share of manufacturing.
f) Contingencies / Provisions
A provision is recognised when the Company has a present obligation as
a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation.
Contingent liabilities are not provided for unless a reliable estimate
of probable outflow to the Company exists as at the Balance Sheet date.
Contingent assets are neither recognised nor disclosed in the financial
statements.
g) Taxation:
The tax expense comprises of current and deferred tax. Current income
tax is measured in accordance with the Income Tax Act 1961. the tax
rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.
Deferred taxes reflects the impact of timing differences between the
taxable income and the accounting income originating during the current
year and reversal of timing differences for the earlier years. The
deferred tax is measured based on the tax rates and the tax laws
enacted or substantially enacted as on the Balance Sheet date. Deferred
Tax Assets are not recognized unless there is virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
h) There is no estimated amount of the contracts remaining to beexcuted
net of advances and not provided for on capital accounts as at the
balance sheet date. The Company does not have any contingent
liabilities as on the balance sheet date.
i) The balances of Sundry Creditors, Sundry Debtors, Loans & Advances
secured and unsecured loans and other current Assets & Liabilities
appearing in the book of account are subjects to confirmation &
reconciliation, if any
j) In the opinion of Board and as certified by the Managing Director
all the expenses charged to revenue are genuine and have been solely
and exclusively incurred for the business of the company. All the cash
transaction covering receipts and payments are genuine and carried out
of business expediency.
k) The company is in the process of identifying suppliers covered under
the Interest on Delayed Payment to Small Scale & Ancillary Industrial
Undertaking Act,1993 and is yet to ascertain and account for the
liability.
l) Earning Per Share
Basic earning per share is calculated by dividing the net profit or
loss for the year attributable to the equity shareholders (after
deducting preference dividends and attributable taxes, if any) by the
weighted average number of shares outstanding during the year. For the
purpose of calculating diluted earning per share, net profit & loss for
the year attributable to equity shareholders and the weighted number of
shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2011
A. Basis of preparation of financial statements
The company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis. The financial statements are
prepared under the historical cost concept as going concern and are
consistent with generally accepted accounting principles.
b. Revenue recognition
Purchases are stated net of discount and rate difference. Sales are
recognized when goods are invoiced to customer.
c. Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. The cost includes cost of acquisition construction,
installation and other related expenses. Expenditure on projects under
implementation including preoperative expenses is treated as capital
work in progress.
d. Depreciation
Depreciation is been provided on assets used during the year.
Depreciation on addition/deletion during the year has been provided for
on pro-rata basis with reference to the month of addition and deletion.
e. Investments
All the investments are stated cost.
f. Foreign Currency
Transactions denominated in foreign currency are normally recorded at
the exchange rate prevailing at the time of the transaction.
g. Stock-in-trade
1. Inventories are valued at lower of cost or net realizable value.
2. Raw Material, Stores and Spare parts are valued at weighted average
method.
3. Other goods like Goods in process and finished goods are valued on
the basis of cost plus an appropriate share of manufacturing.
h. Taxation
Provision of Income-Tax is made after considering exemptions and
deductions available at the rate applicable under the Income Tax Act,
1961.
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