Mar 31, 2015
A) The Company has forfeited 2138400 Equity Shares (against which the
call money amounting to Rs, 10126500.00 were in arrears) in the Board of
Directors meeting held on 24/03/2001, in terms of Articles of
Association of the Company, in consequence of having failed to pay the
call money due thereon on 12/03/2001.
Note: In accordance with the Accounting Standard 22nd Accounting for
Taxes on Income" the deferred tax liabilities (net) Rs, 132956.00 has
been adjusted by credited to Statement of Profit and Loss during the
current year and the total accumulated deferred tax assets (net) as on
31st March 2015 amounts to Rs, 219228.00 [Previous year Rs, 70541.00]
Notes:
a) Provision for taxation on current profit: The Company has made the
provision for current income tax liability based on the assessable
profit as computed in accordance with the Income Tax Act, 1961.
b) In accordance with the Accounting Standard 22" Accounting for Taxes
on Income" the deferred tax liabilities (net) Rs, 132956.00 has been
adjusted by credited to Statement of Profit and Loss during the current
year and the total accumulated deferred tax assets (net) as on 31st
March 2015 amounts to Rs, 219228.00 [Previous year Rs, 70541.00]
a) Basis of Preparation of Financial Statement
These 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 Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant
provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or
non-current, wherever applicable as per the operating cycle of the
Company as per the guidance as set out in the Schedule III to the
Companies Act, 2013.
The accounts of Foreign Branch/Permanent Establishment for execution of
Job contracted have been prepared in compliance with the local laws and
applicable accounting standards and the same are duly incorporated in
the Consolidated financial Statement of the company as if the
transactions of the foreign Branch operation have been those of the
Company itself. In cases where the financial year of foreign operation
of Branch/Permanent Establishment is different from that of the
Company, the financial statements of the said foreign branch operations
have been drawn up so as to be aligned with the financial year of the
company.
b) Presentation of Financial Statements
The Balance Sheet and the Statement of Profit and Loss are prepared and
presented in the format prescribed in the Schedule III to the Companies
Act, 2013 ("the Act"). The Cash Flow Statement has been prepared and
presented as per the requirements of Accounting Standard (AS) 3 "Cash
Flow Statement". The disclosure requirements with respect to items in
the Balance Sheet and Statement of Profit and Loss, as prescribed in
the Schedule III to the Act, are presented by way of notes forming part
of accounts along with the other notes required to be disclosed under
the notified Accounting Standards and the Listing Agreement.
c) 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.
d) Tangible Fixed Assets:
i) Fixed Assets have been stated at historical cost less accumulated
depreciation and cumulative impairment. Expenses directly related to
the construction or acquisition of the fixed assets have been
capitalized and added to the particular assets. Pre-operative expenses
incurred till the date of capitalization have been apportioned on pro-
rata basis. Items of fixed assets not capitalized and other
pre-operative expenses to the extent not apportioned are shown under
the head "Capital work in progress".
ii) Depreciation/Amortization: Depreciation up to March 31, 2014 was
provided on W.D.V. method on prorate basis at the rate prescribed in
schedule XIV to the Companies Act, 1956.
In respect of fixed assets (other than freehold land and capital
work-in-progress) acquired during the year, depreciation/amortization
is charged on written down value method so as to write off the cost of
the assets over the useful life and for the assets acquired prior to
April 1, 2014, the carrying amount as on April 1, 2014 is depreciated
over the remaining useful life of assets as prescribed in Schedule II
to the Companies Act, 2013. Depreciation in respect of
addition/deduction to fixed assets during the year has been charged on
pro-rata basis.
Due to transition from schedule XIV to Schedule II, depreciation on
assets existing as on March 31, 2014, which useful life has already
been exhausted but depreciation already charged was less than 95% of
original cost of the assets than difference of 95% of original cost and
depreciation charged till last year transferred to retained earnings and
if depreciation charged was more than 95% of original cost of the
assets than same has been considered as remaining WDV as on first day
of the current financial year.
e) Impairment of Assets
At each Balance Sheet date, the management reviews the carrying amounts
of its assets to determine whether there is any indication that those
assets were impaired. If any such indication exists, the recoverable
amount of the assets is estimated in order to determine the extent of
impairment loss. Recoverable amount is the higher of an asset's net
selling price and value in use. In assessing value in use, the
estimated future cash flows expected from the continuing use of the
assets and from its disposal and discounted to their present value
using a pre-tax discounted rate that reflects the current market
assessments of time value of money and risks specific to the asset.
Reversal of impairment loss is recognized immediately as income in the
Statement of Profit and loss.
f) Foreign currency transactions and foreign operations
i) The reporting currency of the Company is Indian rupee.
ii) Foreign currency transactions are recorded on initial recognition
in the reporting currency, using the exchange rate at the date of the
transaction. At each balance sheet date, foreign currency monetary
items are reported using the closing rate. Non-monetary items, carried
at historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of the transaction.
iii) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Statement of Profit
and Loss, 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.
iv) In respect of Branch/Permanent Establishment for execution of Job
contracted, which are integral foreign operations, the same are
translated as if the transactions of the foreign operation have been
those of the Company itself. For non-integral foreign operation, the
assets and liabilities are translated at the rates prevailing at the
end of the year. Income and expenses items of the non-integral foreign
operation are translated at the average rate prevailing during the
year. Any exchange difference arising on consolidation is recognized in
the "Foreign Currency Translation Reserve" until the disposal of the
operations.
g) Revenue Recognition
i) Revenue from the sale of traded goods i.e. fabricating material,
equipment parts, electrical material/components and other items etc.
are recognized upon delivery, which is when title passes to the
customer.
ii) Revenue from erection, commissioning, supervision, project drawing
and designing services/related project is recognized as follows:
a) Cost plus contracts: Contract revenue is determined by adding the
aggregate cost plus proportionate margin as agreed with the customer.
b) Fixed price contract revenue is recognized by adding the aggregate
cost and proportionate margin using the percentage completion method.
Percentage of completion is determined as a proportion of cost
incurred-to- date to the total estimated contract cost.
c) Full provision is made for any loss in the period in which it is
foreseen.
d) Services revenue is recognized on time proportion basis and excludes
service tax.
iii) Revenue from maintenance contracts are recognized pro-rata over
the period of contract.
iv) Interest income is accounted at applicable rates on respective
investment. v) Other items of income are accounted as and when the
right to receive arises.
h) Retirement Benefits
(i) The Company's contribution to the recognized Provident/Family
Pension Fund and Employees State Insurance Fund (Defined Contribution
Scheme) schemes whether in pursuance of any law or otherwise is
accounted on accrual basis and charged to the Statement of Profit and
Loss of the year.
(ii) Gratuity Fund: The retirement gratuity benefit to employees is
accounted for on accruing basis for the employees', based on their last
drawn salary, completed years of services, instead of ascertaining
actuarial impact.
(iii) Leave encashment benefit is considered and provided, based on
actual as at the end of the financial year.
i) Valuation of Inventories
Inventories are valued as under: -
-Stores, spares, loose tools and other items At cost or net realizable
value whichever is less.
-Finished/Traded goods At cost or net realizable value whichever is
less.
Project and erection/commissioning related work-in-progress is valued
at cost till such time the outcome of the job cannot be ascertained
reliably and at realizable value thereafter.
j) Government Grants/Subsidy
The Government grants relating to particular fixed assets are presented
by deducting them from the gross value of fixed assets. The grant is
recognized as income over the life of depreciable asset by way of a
reduced depreciation charge. In respect of Government grants in the
nature of Project Subsidy (capital investment state subsidy) are
credited to capital reserves.
k) Excise and Other Duties
Excise duty is accounted on finished goods on clearance thereof. CENVAT
benefit is accounted for by reducing the purchase cost of
material/fixed assets
l) Borrowing Cost
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 intended use. All other
borrowing costs are recognized as an expense in the period in which
they are incurred.
m) Taxes on income
(i) Provision for current tax is made on the basis of taxable income
and tax credits computed in accordance with the provisions of Income
Tax Act, 1961.
(ii) Deferred tax expenses or benefit is recognized 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.
(iii) In the event of unabsorbed depreciation and carry forward of
losses, 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. 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.
(iv) Minimum alternative tax (MAT) paid in accordance with the tax
laws, which gives rise to future economic benefits in the form of
adjustment of future income tax liability, is recognized as an assets
in the balance sheet when it is probable that the future economic
benefit associated with it will flow to the company and the asset can
be measured reliably.
n) Miscellaneous Expenditure
i) Preliminary expenses are being written off over a period of 10
years.
ii) Share issue expenditure is being amortized from the year of
commercial production over a period of 10 years.
o) Project Development Expenses pending Adjustment
Expenditure incurred during the developmental and preliminary stages of
the Company's new expansion/diversification project are carried
forward. However, if any project is abandoned, the expenditure relevant
to such project is written off through the natural heads of expenses in
which it is so abandoned.
p) 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.
q) Cash and 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.
r) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted from the effect of transactions of noncash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expenses associated with
investing or financing cash flows. The cash flow from operating,
investing and financing activities is segregated.
s) Extraordinary and exceptional items
Income or expenses that arise from events or transactions that are
clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosures of such
events/transactions are made in the financial statements. Similarly,
any external event beyond the control of the Company significantly
impacting income or expense is also treated as extraordinary item and
disclosed as such.
On certain occasions, the size, type or incidence of an item of income
or expenses, pertaining to the ordinary activities of the Company is
such that its disclosure improves an understanding of the performance
of the Company. Such income or expenses is classified as an
exceptional item and accordingly disclosed in the notes to accounts.
t) Lease Accounting:
As a Less or: The Company has given assets on an operating lease basis.
Lease rentals are accounted on accrual basis in accordance with the
respective lease agreements.
As a Lessee: Operating lease payments are recognized as expenditure in
the Statement of Profit and Loss as per the terms of the respective
lease agreements.
u) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2014
A) Basis of Preparation of Financial Statement
These 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) (which continues to be
applicable in terms of General Circular 15/2013 dated September 13,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013) and other relevant provisions of the Companies
Act, 1956.
All assets and liabilities have been classified as current or
non-current, wherever applicable as per the operating cycle of the
Company as per the guidance as set out in the Revised Schedule VI to
the Companies Act, 1956 The accounts of Foreign Branch/Permanent
Establishment for execution of Job contracted have been prepared in
compliance with the local laws and applicable accounting standards and
the same are duly incorporated in the Consolidated financial Statement
of the company as if the transactions of the foreign Branch operation
have been those of the Company itself. In cases where the financial
year of foreign operation of Branch/Permanent Establishment is
different from that of the Company, the financial statements of the
said foreign branch operations have been drawn up so as to be aligned
with the financial year of the company.
b) Presentation of Financial Statements
The Balance Sheet and the Statement of Profit and Loss are prepared and
presented in the format prescribed in the Schedule VI to the Companies
Act, 1956 ("the Act"). The Cash Flow Statement has been prepared and
presented as per the requirements of Accounting Standard (AS) 3 "Cash
Flow Statement". The disclosure requirements with respect to items in
the Balance Sheet and Statement of Profit and Loss, as prescribed in
the Schedule VI to the Act, are presented by way of notes forming part
of accounts along with the other notes required to be disclosed under
the notified Accounting Standards and the Listing Agreement.
c) 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.
d) Tangible Fixed Assets:
i) Fixed Assets have been stated at historical cost less accumulated
depreciation and cumulative impairment. Expenses directly related to
the construction or acquisition of the fixed assets have been
capitalized and added to the particular assets. Pre-operative expenses
incurred till the date of capitalization have been apportioned on
pro-rata basis. Items of fixed assets not capitalized and other
pre-operative expenses to the extent not apportioned are shown under
the head "Capital work in progress".
ii) The depreciation has been provided on fixed assets on W.D.V. basis
at the rates specified in Schedule XIV of the Companies Act, 1956 as
revised vide notification no. GSR No. 756 (E) dated 16-12-1993 issued
by the Department of Company Affairs. Depreciation in respect of
addition/deduction to fixed assets during the year has been charged on
pro-rata basis.
e) Impairment of Assets
At each Balance Sheet date, the management reviews the carrying amounts
of its assets to determine whether there is any indication that those
assets were impaired. If any such indication exists, the recoverable
amount of the assets is estimated in order to determine the extent of
impairment loss. Recoverable amount is the higher of an asset''s net
selling price and value in use. In assessing value in use, the
estimated future cash flows expected from the continuing use of the
assets and from its disposal and discounted to their present value
using a pre-tax discounted rate that reflects the current market
assessments of time value of money and risks specific to the asset.
Reversal of impairment loss is recognized immediately as income in the
Statement of Profit and loss.
f) Foreign currency transactions and foreign operations
i) The reporting currency of the Company is Indian rupee.
ii) Foreign currency transactions are recorded on initial recognition
in the reporting currency, using the exchange rate at the date of the
transaction. At each balance sheet date, foreign currency monetary
items are reported using the dosing rate, Non-monetary items, carried
at historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of the transaction,
iii) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the Statement of Profit
and Loss, 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.
iv) In respect of Branch/Permanent Establishment for execution of Job
contracted, which are integral foreign operations, the same are
translated as if the transactions of the foreign operation have been
those of the Company itself. For non-integral foreign operation, the
assets and liabilities are translated at the rates prevailing at the
end of the year. Income and expenses items of the non-integral foreign
operation are translated at the average rate prevailing during the
year. Any exchange difference arising on consolidation is recognized in
the "Foreign Currency Translation Reserve" until the disposal of the
operations.
g) Revenue Recognition
i) Revenue from the sale of traded goods i.e. fabricating material,
equipment parts, electrical material/components and other items etc.
are recognized upon delivery, which is when title passes to the
customer.
ii) Revenue from erection, commissioning, supervision, project drawing
and designing services/related project is recognized as follows:
a) Cost plus contracts: Contract revenue is determined by adding the
aggregate cost plus proportionate margin as agreed with the customer.
b) Fixed price contract revenue is recognized by adding the aggregate
cost and proportionate margin using the percentage completion method.
Percentage of completion is determined as a proportion of cost
incurred-to-date to the total estimated contract cost.
c) Full provision is made for any loss in the period in which it is
foreseen.
d) Services revenue is recognized on time proportion basis and excludes
service tax.
iii) Revenue from maintenance contracts are recognized pro-rata over
the period of contract.
iv) Interest income is accounted at applicable rates on respective
investment,
v) Other items of income are accounted as and when the right to receive
arises.
h) Retirement Benefits
(i) Retirement benefits in the form of Provident Fund and Family
Pension Fund schemes whether in pursuance of any law or otherwise is
accounted on accrual basis and charged to the Statement of Profit and
Loss of the year,
(ii) The retirement gratuity benefits to employees under the Payment of
Gratuity Act, 1972 has been accounted for on accruing basis.
(iii) Leave encashment benefit is considered and provided, based on
actual as at the end of the financial year.
i) Valuation of Inventories
Inventories are valued as under: -
*Stores, spares, loose tools At cost or net realizable value
and other items and other items
*finished/Traded goods At cost or net realizable value
whichever is less.
Project and erection/commissioning related work-in-progress is valued
at cost till such time the outcome of the job cannot be ascertained
reliably and at realizable value thereafter.
j) Government Grants/Subsidv
The Government grants relating to particular fixed assets are presented
by deducting them from the gross value of fixed assets. The grant is
recognized as income over the life of depreciable asset by way of a
reduced depreciation charge. In respect of Government grants in the
nature of Project Subsidy (capital investment state subsidy) are
credited to capital reserves.
k) Excise and Other Duties
Excise duty is accounted on finished goods on clearance thereof. CENVAT
benefit is accounted for by reducing the purchase cost of
material/fixed assets
l) Borrowing Cost
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 intended use. All other
borrowing costs are recognized as an expense in the period in which
they are incurred.
m) Taxes on income
(i) Provision for current tax is made on the basis of taxable income
and tax credits computed in accordance with the provisions of Income
Tax Act, 1961.
(ii) Deferred tax expenses or benefit is recognized 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.
(iii) In the event of unabsorbed depreciation and carry forward of
losses, 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. In other situations,
deferred tax assets are recognized only to (he extent that there is
reasonable certainty that sufficient future taxable income will be
available to realize these assets.
(iv) Minimum alternative tax (MAT) paid in accordance with the tax
laws, which gives rise to future economic benefits in the form of
adjustment of future income tax liability, is recognized as an assets
in the balance sheet when it is probable that the future economic
benefit associated with it will flow to the company and the asset can
be measured reliably.
n) Miscellaneous Expenditure
i) Preliminary expenses are being written off over a period of 10
years.
ii) Share issue expenditure is being amortized from the year of
commercial production over a period of 10 years.
o) Project Development Expenses pending Adjustment
Expenditure incurred during the developmental and preliminary stages of
the Company''s new expansion/diversification project are carried
forward. However, if any project is abandoned, the expenditure relevant
to such project is written off through the natural heads of expenses in
which it is so abandoned.
p) 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.
q) Cash and 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.
r) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted from the effect of transactions of non cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expenses associated with
investing or financing, cash flows. The cash flow from operating,
investing and financing activities is segregated,
s) Extraordinary and exceptional items
Income or expenses that arise from events or transactions that are
clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosures of such
evcnts/transactions are made in the financial statements. Similarly,
any external event beyond the control of the Company significantly
impacting income or expense is also treated as extraordinary item and
disclosed as such.
On certain occasions, the size, type or incidence of an item of income
or expenses, pertaining to the ordinary activities of the Company is
such that its disclosure improves an understanding of the performance
of the Company. Such income or expenses is classified as an exceptional
item and accordingly disclosed in the notes to accounts.
t) Lease Accounting;
As a Lessor: The Company has given assets on an operating lease basis.
Lease rentals are accounted on accrual basis in accordance with the
respective lease agreements.
As a Lessee; Operating lease payments are recognized as expenditure in
the Statement of Profit and Loss as per the terms of the respective
lease agreements.
u) Earning Per Share
Basic earning per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by weighted
average number of equity shares outstanding during (he year.For the
purpose of calculating diluted earnings per share, the net profit or
loss for the year attributable to equity shareholders and the weighed
average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
Mar 31, 2010
A) FIXED ASSETS:
i) Fixed Assets have been stated at historical cost less depreciation.
Expenses directly related to the construction or acquisition of the
fixed assets have been capitalized and added to the particulars assets.
pre-operative expenses. Incurred till the date of capitalization have
been apportioned on pro-rata basis. Items of fixed assets not
capitalized and other pre-operative expenses to the extent not
apportioned are shown under the head " Capital Work in Progress".
ii) The depreciation has been provided on fixed assets on W.D.V. basis
at the rates specified in schedule XIV of the Companies Act, 1956 as
revised vide notification no GSR No.756 (E) date 16-12-1993 issued by
the Department of Company Affairs. Depreciation in respect of addition
/ deduction to fixed assets during the year has been charged on
pro-rata basis.
B) GENERAL
i) The accounts of the company are prepared on historical cost basis and
on the accounting principles of going concern concept.
ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
C) REVENUE RECOGNITION
The expenses and income considered payable and receivable respectively
are accounted for on accrual basis.
D) VALUATION OF INVENTORIES
Inventories are valued as under:-
- Raw Material and packing material At Cost
- Stock-in-process i.e. Semi-finished goods (clinker) At cost or net
realizable value whichever is less
- Stores and spares At Cost
- Finished goods At Cost or net realizable value whichever is less.
Note: Cost for the purpose of valuation of finished goods and stock in
process is determined by considering material, labour and other related
overheads.
E) MISCELLANROUS EXPENDITURE
i) Preliminary expenses are being written off over a period of 10
years.
ii) Share issue expenditure is being amortized from the year of
commercial production over a period of 10 years.
F) EXCISE AND OTHER DUTIES
Excise duty is accounted on finished goods on clearance thereof CENVAT
benefit is accounted for by reducing the purchase cost of material /
fixed assets.
G) SALES
a) The company recognizes sales of goods as the point of removal from
factory / warehouses for delivery to the customers.
b) Sales comprises amount invoiced for goods sold inclusive of Excise
duty but net of sales Tax and returns / rejections (if any)
H) GOVERNMENT GRANTS / SUBSIDY
The grants relating to particular fixed assets are shown as deduction
from the gross value of fixed assets and those of the nature of project
subsidy (Capital investment state subsidy) are credited to capital
reserves.
I) ACCOUNTING STANDARDS
The Accounts for the year ended 31-03-2010 have been prepared in
compliance with the applicable accounting standards referred to in
section 211 (3C) of the Companies Act, 1956.
J) CONTINGENT LIABILITIES
Un-provided contingent liabilities are disclosed in the accounts by way
of notes, giving nature and quantum of such liability.
K) RETIREMENT BENEFIT
(i) Retirement benefits in the form of provident Fund and Family
pension Fund schemes whether in pursuance of any law or otherwise is
accounted on accrual basis and charged to the profit and Loss Account
of the year.
(ii) Presently, no employee falls under the category in which the
gratuity liability is applicable.
L) PROJECT DEVELOPMENT EXPENSES PENDING ADJUSTMENT
Expenditure incurred during the development and preliminary stages of
the company's new expansion / diversification project are carried
forward. However, if any project is abandoned, the expenditure relevant
to such project is written off thought the natural heads of expenses
in which it is so abandoned.
M) TAXATION
(i) Provision is made for current income tax, liability which is likely
to arise as the results for the period at the current rate of tax in
accordance with the provisions of the Income Tax Act, 1961.
(ii) Provisions is made for taxation deferred as a result of material
timing difference between the incidence of income and expenditure for
taxation and accounts purposes, using the liability / assets method,
only to the extent that in the opinion of the directors ,there is a
reasonable probability that a liability / asset will crystallize in
the near future.
Mar 31, 2009
A) FIXED ASSETS:
i > Fixed Assets have been stated at historical cost less depreciation.
Expenses directly relatei to the construction or acquisition of the
fixed assets have been capitalized and added to the particular assets.
Pre-operative expenses incurred till the date of capitalization have
been apportioned on pro-rata basis. Items of fixed assets not
capitalized and other pre-operative expenses to the: extent not
apportioned are shown under the head "Capital work in progress".
ii) The depreciation has been provided on fixed assets on W.D.V. basis
at the rates specified in Schedule XIV of the Companies Act, 1956 as
revised vide notification no. GSR No. 56 (E) dated 16-12-1993 issued
by the Department of Company Affairs. Depreciation in respect of
addition/deduction to fixed assets during the year has been charged on
pro-rata basis.
iii) No depreciation has been provided on the assets of the company
during the year except Generator Set (i.e. given on lease), because the
same was not commercially utilized due to discontinuation of the
business operations since January 2002. Hence no manufacturing
activities hae b&tn conducted in the company during the year.
B) GENERAL
i) The accounts of the company are prepared on historical cost basis
and on the accounting
principles of going concern concept. ii) Accounting policies not
specifically referred to otherwise are consistent and in consonance-
with
generally accepted accounting principles.
C) REVENUE RECOGNITION
The expenses and income considered payable and receivable respectively
are accounted for on accrual basis. Ã
D) VALUATION OF INVENTORIES
Inventories are valued as under: -
-Raw Material and packing material At cost
-Stock-in-process i.e. Semi-finished goods At cost or net realizable
value whichever is less
(clinker)
-Stores and spares At cost
-Finished goods At cost or net realizable
value whichever is less.
Note: Cost for the purpose of valuation of finished goods and stock in
process is determined by considering marerial, labour and other related
overheads.
E) MISCELLANEOUS EXPENDITURE
i) Preliminary expenses are being written off over a period of 3 0
years.
ii Share issue expenditure is being amortized from the year of
commercial production over a period of 10 years
F) EXCISE AND OTHER DUTIES
Excise duty is accounted en finished goods on clearance thereof. CENVAT
benefit is accoun;;d for by reducing the purchase cost of
material/fixed assets.
G) SALES
a) The company recognizes sales of goods at the point of removal from
factory/warehouses for delivery to the customers.
b) Sales comprises amount invoiced for goods sold inclusive of Excise
duty but net of SEies Tax and returns/rejections (if any).
H) GOVERNMENT GRANTS/SUBSIDY
The grants relating to particular fixed assets are shown as deduction
from the gross value :f fixed assets and those of the nature of Project
Subsidy (capital investment state subsidy) are credited to t apital
reserves.
I) ACCOUNTING STANDARDS
The Accounts for the year ended 31-03-2009 have been prepared in
compliance with the applicable accounting standards referred to in
section 211(3C) of the CornDanies Act, 1956.
J) CONTINGENT LIABILITIES
Un-provided contingent liabilities are disclosed in the accounts by way
of notes, giving nature and quantum of such liability.
K) RETIREMENT BENEFIT
(i) Retirement benefits hi the form of Provident Fund and Family
Pension Fund schemes whether in pursuance of any law or otherwise is
accounted on accrual basis and charged to the Profit and Loss Account
of the year.
(if) Presently, no employee fails under the category in which the
gratuity liability is applicable
L) PROJECT DEVELOPMENT EXPENSES PENDING ADJUSTMENT
Expenditure incurred during the developmental and preliminary stages of
the Companys new expansion/diversification project are carried
forward. However, if any project is abandoned, the expenditure relevant
to such project is written off through the r-atural heads of expenses
in which it is so abandoned.
M) TAXATION
(i) Provision is made for current income tax liability, which is likely
to arise as the results for the period at the current rate of tax in
accordance with the provisions of the Income Tax Act, 1961.
(ii) Provisions is made for taxation deferred as a result of-material
timing difference between the incidence of income and expenditure for
taxation and accounts purposes, using the liability/assets method, only
to the extent that, in the opinion of the directors, there is a
reasonable probability that a liability/asset will crystallize in the
near future.
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