Mar 31, 2015
A) Basis of Preparation of Financial Statements
These financial statement have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013. The financial statements are
prepared on accrual basis.
b) Revenue Recognition
Sale of goods is recognized on dispatch of goods to customers and is
recorded net of trade discounts, rebates, sales tax/ value added tax
however inclusive of excise duty, which is shown as separately.
c) Fixed Assets
Fixed assets are stated at their cost of acquisition/installation less
accumulated depreciation. Fixed Assets are shown net of CENVAT & VAT on
Capital Goods.
Capital work-in-progress comprises the cost of fixed assets that are
not yet ready for their intended use at the reporting date.
d) Depreciation and Amortization
Depreciation is provided on the straight line method over the useful
lives of the assets as prescribed in Schedule II to the Companies Act,
2013 and preliminary expenses are written off over a period of five
years. Due to changes in Companies Act, Depreciation is to be provided
based on useful lives of assets, Company has changed the method of
calculation of Depreciation from Written Down Method to Straight Line
Method of Depreciation for the remaining useful life.
e) Investment
Investment has been shown at cost.
f) Inventories
Items of inventories are measured at lower of cost or net realizable
value whichever is lower on FIFO basis for Raw Materials. Finished
Goods and work in process are valued at the lower of the cost and net
realizable value.
g) Employees Benefits
Employee benefits are charged off in the year in which the employees
have rendered services. Provision for leave encashment is determined
yearly basis and accordingly paid.
h) Taxation
- Provision for current tax is made after taking into consideration
benefits admissible under the provisions of Income Tax Act, 1961.
- Deferred tax resulting from "timing differences" between the
accounting and taxable profit for the period is accounted for using the
tax rates and laws that have been enacted or substantially enacted as
at the balance sheet date. Deferred tax assets is recognized and
carried forward only to the extent that there is a reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
- Minimum Alternative Tax (MAT) credit is recognized as an asset only
to the extent there is convincing evidence that the Company will pay
income tax higher than that computed under MAT, during the period that
MAT is permitted to be set off under the Income Tax Act, 1961.
i) Contingent Liability
Liabilities which are of contingent nature are not provided but are
disclosed at their estimated amount in the notes.
j) Foreign Currency Transaction
Foreign transactions are recorded at the rates on which they have been
settled during the year. Foreign currency denominated assets and
liabilities are translated into rupees at the exchange rates prevailing
at year-end and overall net gain/loss is adjusted in the Profit and
Loss Account.
k) Impairment of Assets
Fixed assets are reviewed for impairment losses, whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which
the carrying amount of the assts exceeds its recoverable amount, which
is the higher of an assets, net selling price and value in use.
l) Borrowing Costs
Borrowing costs comprising interest, finance charges etc to the extent
related/ attributed to the qualifying assets, such as new projects and
/ or specific assets created in the existing business, are capitalized
up to the date of completion and ready for their intended use. Other
borrowing costs are charged to the statement of Profit and Loss in the
period of their accrual.
m) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. The
weighted average number of equity share outstanding during the year are
adjusted for events such as bonus shares, other than the conversion of
potential equity shares, that have changed the number of equity shares
outstanding without a corresponding change in resource.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
n) Cash Flow Statement
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard 3 on Cash Flow Statements and presents the cash
flows by operating, investing and financing activities of the company.
Cash and cash equivalents presented in the Cash Flow Statement consist
of cash on hand and deposits with banks.
Mar 31, 2014
A) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention method in accordance with the generally accepted accounting
principles and in accordance with the provisions of the Companies
(Accounting Standards) Rules, 2006 by the Central Government. The
Company follows mercantile system of accounting.
b) Revenue Recognition
Sale of goods is recognized on dispatch of goods to customers and is
recorded net of trade discounts, rebates, sales tax/ value added tax
however inclusive of excise duty, which is shown as separately.
c) Fixed Assets
Fixed assets are stated at their cost of acquisition/installation less
accumulated depreciation. Fixed Assets are shown net of CENVAT & VAT on
Capital Goods.
d) Depreciation and Amortization
Depreciation on fixed assets is provided on written down value method
at the rate and in the manner prescribed in Schedule XIV to the
Companies Act, 1956, and preliminary expenses are written off over a
period of five years.
e) Investment
Investment has been shown at cost.
f) Inventories
Items of inventories are measured at lower of cost or net realizable
value whichever is lower on FIFO basis for Raw Materials. Finished
Goods and work in process are valued at the lower of the cost and net
realizable value.
g) Employees Benefits
Employee benefits are charged off in the year in which the employees
have rendered services. Provision for leave encashment is determined
yearly basis and accordingly paid.
h) Taxation
- Provision for current tax is made after taking into consideration
benefits admissible under the provisions of Income Tax Act, 1961.
- Deferred tax resulting from "timing differences" between the
accounting and taxable profit for the period is accounted for using the
tax rates and laws that have been enacted or substantially enacted as
at the balance sheet date. Deferred tax assets is recognized and
carried forward only to the extent that there is a reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
- Minimum Alternative Tax (MAT) credit is recognized as an asset only
to the extent there is convincing evidence that the Company will pay
income tax higher than that computed under MAT, during the period that
MAT is permitted to be set off under the Income Tax Act, 1961.
i) Contingent Liability
Liabilities which are of contingent nature are not provided but are
disclosed at their estimated amount in the notes.
j) Foreign Currency Transaction
Foreign transactions are recorded at the rates on which they have been
settled during the year. Foreign currency denominated assets and
liabilities are translated into rupees at the exchange rates prevailing
at year-end and overall net gain/loss is adjusted in the Profit and
Loss Account.
k) Impairment of Assets
Fixed assets are reviewed for impairment losses, whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which
the carrying amount of the assts exceeds its recoverable amount, which
is the higher of an assets, net selling price and value in use.
l) Borrowing Costs
Borrowing costs comprising interest, finance charges etc to the extent
related/ attributed to the qualifying assets, such as new projects and
/ or specific assets created in the existing business, are capitalized
up to the date of completion and ready for their intended use. Other
borrowing costs are charged to the statement of Profit and Loss in the
period of their accrual.
m) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. The
weighted average number of equity share outstanding during the year are
adjusted for events such as bonus shares, other than the conversion of
potential equity shares, that have changed the number of equity shares
outstanding without a corresponding change in resource.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
n) Cash Flow Statement
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard 3 on Cash Flow Statements and presents the cash
flows by operating, investing and financing activities of the company.
Cash and cash equivalents presented in the Cash Flow Statement consist
of cash on hand and demand deposits with banks.
Amount of cash credit facility availed Rs. 58,458,595 (31st March 2013
Rs. 47,408,719) from banks :
1. Punjab National Bank A/C 0224008700005680 - Rs. 58,458,595 (31st
March 2013 Rs. 47,408,719) are secured by way of Hypothecation of
Stock and Book Debts and Equitable Mortgage of immovable properties
of Guarantors.
Mar 31, 2013
A) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention method in accordance with the generally accepted accounting
principles and in accordance with the provisions of the Companies
(Accounting Standards) Rules, 2006 by the Central Government. The
Company follows mercantile system of accounting.
b) Revenue Recognition
Sale of goods is recognized on dispatch of goods to customers and is
recorded net of trade discounts, rebates, sales tax/ value added tax
however inclusive of excise duty, which is shown as separately.
c) Fixed Assets
Fixed assets are stated at their cost of acquisition/installation less
accumulated depreciation. Fixed Assets are shown net of CENVAT & VAT on
Capital Goods.
d) Depreciation and Amortization
Depreciation on fixed assets is provided on written down value method
at the rate and in the manner prescribed in Schedule XIV to the
Companies Act, 1956, and preliminary expenses are written off over a
period of five years.
e) Investment
Investment has been shown at cost.
f) Inventories
Items of inventories are measured at lower of cost or net realizable
value whichever is lower on FIFO basis for Raw Materials. Finished
Goods and work in process are valued at the lower of the cost and net
realizable value.
g) Employees Benefits
Employee benefits are charged off in the year in which the employees
have rendered services. Provision for leave encashment is determined
yearly basis and accordingly paid.
h) Taxation
- Provision for current tax is made after taking into consideration
benefits admissible under the provisions of Income Tax Act, 1961.
- Deferred tax resulting from "timing differences" between the
accounting and taxable profit for the period is accounted for using the
tax rates and laws that have been enacted or substantially enacted as
at the balance sheet date. Deferred tax assets is recognized and
carried forward only to the extent that there is a reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
- Minimum Alternative Tax (MAT) credit is recognized as an asset only
to the extent there is convincing evidence that the Company will pay
income tax higher than that computed under MAT, during the period that
MAT is permitted to be set off under the Income Tax Act, 1961.
i) Contingent Liability
Liabilities which are of contingent nature are not provided but are
disclosed at their estimated amount in the notes.
j) Foreign Currency Transaction
Foreign transactions are recorded at the rates on which they have been
settled during the year. Foreign currency denominated assets and
liabilities are translated into rupees at the exchange rates prevailing
at year-end and overall net gain/loss is adjusted in the Profit and
Loss Account.
k) Impairment of Assets
Fixed assets are reviewed for impairment losses, whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which
the carrying amount of the assts exceeds its recoverable amount, which
is the higher of an assets, net selling price and value in use.
l) Borrowing Costs
Borrowing costs comprising interest, finance charges etc to the extent
related/ attributed to the qualifying assets, such as new projects and
/ or specific assets created in the existing business, are capitalized
up to the date of completion and ready for their intended use. Other
borrowing costs are charged to the statement of Profit and Loss in the
period of their accrual.
m) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. The
weighted average number of equity share outstanding during the year are
adjusted for events such as bonus shares, other than the conversion of
potential equity shares, that have changed the number of equity shares
outstanding without a corresponding change in resource.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
n) Cash Flow Statement
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard 3 on Cash Flow Statements and presents the cash
flows by operating, investing and financing activities of the company.
Cash and cash equivalents presented in the Cash Flow Statement consist
of cash on hand and demand deposits with banks.
Mar 31, 2012
(A) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention method in accordance with the generally accepted accounting
principles and in accordance with the provisions of the Companies
(Accounting Standards) Rules, 2006 by the Central Government. The
Company follows mercantile system of accounting.
(B) Revenue Recognition
Sales are recognized upon delivery of goods and are recorded net of
trade discounts, rebates, sales tax/ value added tax and excise duty.
(C) Fixed Assets and Depreciation
Fixed Assets are stated at their cost of acquisition net of cenvat/
value added tax, less accumulated depreciation.
Depreciation on fixed assets is provided on written down value method
at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
(D) Investment
Investment in shares of companies, quoted and unquoted, are stated at
cost.
(E) Inventories
Inventories are valued at cost or net realizable value, whichever is
lower.
(F) Retirement Benefits
Provision in accounts for any retirement benefit is based on actuarial
valuation, if applicable any.
(G) Earning per Share
The basic earning per share is computed by dividing the net profit
attributed to equity shareholders for the year by the weighted average
number of equity shares outstanding during the year. The company has no
potential dilutive equity shares outstanding during the year.
(H) Taxation
Provision for Current tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions of Income Tax Act, 1961. Deferred tax resulting from "timing
differences" between the accounting and taxable profit for the period
is accounted for using the tax rates and laws that have been enacted or
substantively enacted as at the balance sheet date. Deferred tax assets
is recognized and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
(I) Contingent Liability
Disclosures for contingent liabilities are considered to the extent of
estimates/notices/ demands received by the Company
(J) Foreign Currency Transaction
Foreign currency transactions are recorded at the rates on which they
have been settled during the year. Foreign currency denominated assets
and liabilities are translated into rupees at the exchange rates
prevailing at year-end and overall net gainloss is adjusted in the
Profit and Loss Account.
Mar 31, 2010
(A) Basis of Preparation of Financial Statement
The financial statements are prepared under the historical cost
convention method in accordance with the generally accepted accounting
principles and in accordance with the provisions of the Companies
(Accounting Standards) Rules, 2006 by the Central Government. The
Company follows mercantile system of accounting.
(B) Revenue Recognition
Sales are recognized upon delivery of goods and are recorded net of
trade discounts, rebates, sales tax/ value added tax and excise duty.
(C) Fixed Assets and Depreciation
Fixed assets are stated at their cost of acquisition net of cenvat/
value added tax, less accumulated depreciation. Company has started its
production, hence capital work in progress has been capitalized on
24.03.2010 and depreciation has been claimed accordingly.
Depreciation on fixed assets is provided on written down value method
at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
(D) Investment
Investment in shares of companies, quoted and unquoted, are stated at
cost.
(E) Inventories
Inventories are valued at cost or net realizable value, whichever is
lower.
(F) Retirement Benefits
Provision in accounts for any retirement benefit is based on actuarial
valuation, if applicable any.
(G) Earning per Share
The basic earning per share is computed by dividing the net profit
attributed to equity shareholders for the year by the weighted average
number of equity shares outstanding during the year. The company has no
potential dilutive equity shares outstanding during the year.
(H) Taxation
Provision for Current tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions of Income Tax Act, 1961. Deferred tax resulting from "timing
differences" between the accounting and taxable profit for the period
is accounted for using the tax rates and laws that have been enacted or
substantively enacted as at the balance sheet date. Deferred tax assets
is recognized and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
(I) Contingent Liability
Disclosures for contingent liabilities are considered to the extent of
estimates/notices/ demands received by the Company
(J) Foreign Currency Transaction
Foreign currency transactions are recorded at the rates on which they
have been settled during the year. Foreign currency denominated assets
and liabilities are translated into rupees at the exchange rates
prevailing at year-end and overall net gain/loss is adjusted in the
Profit and Loss Account.
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