Mar 31, 2015
I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements are prepared in accordance with the generally
accepted accounting principles in India (Indian GAAP) under the
historical cost convention on an accrual basis and are in compliance
with pursuant to section 133 of the Companies Act,2013 read with Rule 7
of the Companies (Account) Rules, 2014, till the standards of
accounting or any addendum thereto are prescribed by Central Government
in consultation and recommendation of the National Financial Reporting
Authority, the existing Accounting Standards notified under Companies
Act,1956 shall continue to apply. Consequently, these financial
statements have been prepared to comply in all material aspects with
the accounting standards notified under Section 211(3C) of Companies
Act, 1956 (Companies (Accounting Standards) Rules, 2006, as amended)
and other relevant provisions of the Companies Act, 2013
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Revised Schedule III to the Companies Act,
2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and
cash equivalents, the Company has ascertained its operating cycle as up
to twelve months for the purpose of current and non-current
classification of assets and liabilities.
ii) USE OF ESTIMATES:
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgements,estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
iii) TANGIBLE FIXED ASSETS AND DEPRECIATION:
* TANGIBLE FIXED ASSETS:
Tangible fixed assets are stated at cost, less accumulated depreciation
and impairment loss if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use, but does not includes amount of excise duty on which
cenvat is availed.
* CAPITAL WORK IN PROGRESS:
Expenses incurred towards acquisition of fixed assets which have not
been installed or not put to use before the year end are disclosed
under capital work in progress and no depreciation has been provided on
that.
* DEPRECIATION:
Depreciation is provided on pro rata basis on the straight line method
over the remaining useful lives of the assets in the manner prescribed
by Schedule II of the Companies Act, 2013, as against the past practice
of computing the depreciation at rates with refrence to the life of
assets subject to the minimum rates provided by Schedule XIV of the
Companies Act, 2013.
a. Useful lives of assets are determined by the management by the
internal technical assessemnts except in case where such assessment
suggest a life significantly different from those prescribed by Schedule
II - Part 'C', where the useful life is as assessed and certified by a
technical expert.
b. Assets which are depreciated over useful life different than those
indicated by Schedule II are as under:
Asset Class Estimated Useful Life Useful Life indicate
by Schedule II
Plant & machinery - Pulper 2 Years 8 Years
Section
Fixed Assets, individually costing less than five thousands, are fully
depreciated in the year of purchase.
Depreciation on Assets added / disposed off during the year have been
provided on pro- rata basis with reference to the day of additions /
deletions from the respective day of purchase/sale.
Continuous process plants are classified based on technical assessment
and depreciation is provided accordingly.
iv) INTANGIBLE FIXED ASSETS AND AMORTISATION:
Intangible assets are recognized when it is probable that the future
economic benefit attributable to the assets will flow to the Company
and its cost can be reliably measured.Intangible Assets are stated at
acquisition cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible assets are amortized on a
straight line basis over their estimated useful lives.
Expenditure incurred on acquisition/development of intangible assets
which are not put/ready to use at the reporting date is disclosed under
intangible assets under development. Intangible assets representing
cost of the software capitalised is amortised over its useful life
which is estimated to be a period of six years.
v) IMPAIRMENT OF ASSETS:
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An asset is treated as impaired when the carrying cost of the
assets exceeds its recoverable value. An impairment loss if any is
charged to Statement of Profit and Loss Account in the year in which an
asset is identified as impaired. Reversal of impairment losses
recognized in prior years is recorded when there is an indication that
the impairment losses recognized for the assets no longer exist or have
decreased.However there is no such impairment in the year under
consideration.
vi) INVENTORY:
Raw Material, Consumable Store & Spares and Packing Material are valued
at lower of cost and net realizable value. However, these items are
considered to be realizable at cost if the finished products in which
they will be used, are expected to be sold at or above cost.
Finished Goods and Work in Progress are valued at lower of cost or net
realizable value. Cost of Finished Goods and Work in Progress includes
the cost of conversion and other costs incurred to bring the
inventories to their present location and condition.
Cost of inventories is computed on weighted average basis.
Obsolete stock if any is valued at net realizable value. There is no
such obsolete stock.
vii) INVESTMENTS:
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Investments are recorded at cost on the date of purchase, which
includes acquisition charges such as brokerage, stamp duty, taxes, etc.
Current Investments are stated at lower of cost and quoted/fair value.
Provision for diminution in the value of Long Term Investments is made,
only if, in the opinion of the management, such a decline is regarded
as being other than temporary.
However there are no investments of the company in the year under
consideration.
viii) GOVERNMENT GRANTS:
Government Grants are recognized when there is reasonable assurance
that the same will be received and all attaching conditions will be
complied with. Revenue grants are recognized in the Statement of Profit
& Loss account. Capital grants relating to specific Tangible/Intangible
assets are reduced from the gross value of the respective
Tangible/Intangible assets. Other capital grants in nature of
promoter's contribution are credited to capital reserve.
However no government grants are received by the company in the year
under consideration.
ix) REVENUE RECOGNITION:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and can be reliably
measured.
SALE OF GOODS:
Domestic Sale is recognized on dispatch to customers and is net of
returns. "Sales" includes basic sales value and excise, but excludes
other recoveries such as insurance, sales tax etc.
OTHER INCOME:
Interest is recognized on Time Proportion Basis with reference to
principal outstanding and rate of Interest applicable.
x) EMPLOYEE BENEFITS:
Retirement benefits to employees comprise of provident fund
contributions, gratuity and leave encashment entitlements. Contribution
to Provident Fund is made in accordance with the statute and provided
on accrual basis. Gratuity are provided for, according to the rules of
these benefit schemes, on the basis of actuarial valuation done at the
year-end by independent actuaries using the Projected Unit Credit
Method. Actuarial losses/gains are recognized in the Statement of
Profit and Loss in the year in which they arise. Leave encashment are
paid in the year in which they accrue.
xi) FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currency are recorded at the rate of exchange
prevailing on the date of transaction. The exchange difference
resulting from settled transactions is recognized in the statement of
profit and loss if applicable.
Year end balances of monetary items are restated at the year end
exchange rates and the resultant net gain or loss is recognized in the
statement of profit and loss.
Premium or discounts on forward contracts where there are underlying
assets/liabilities are amortized over the life of the contract. Such
foreign exchange forward contracts are revalued at the Balance Sheet
date and the exchange difference between the spot rate at the date of
contract and spot rate on the Balance Sheet date is recognized as
gain/loss in the Statement of Profit and loss.
xii) BORROWING COSTS:
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such asset
up to the date when such assets are ready for its intended use. Other
borrowing costs are charged to the Statement of Profit and Loss Account
in the period in which they are incurred.
xiii) LEASES:
[a] As a Lessee:
Leases, where significant portion of risk and reward of ownership are
retained by the Lessor, are classified as Operating Leases and lease
rentals thereon are charged to the Statement of Profit and Loss on a
straight-line basis over the lease term.
[b] As a Lessor:
If the Company has leased certain tangible assets, and such leases,
where the Company has substantially retained all the risks and rewards
of ownership, are classified as operating leases.
Lease income is recognised in the Statement of Profit and Loss on a
straight-line basis over lease term.
However there are no lease in the year under consideration
xiv) TAXES ON INCOME:
Tax expense comprises of current and deferred tax.
Provision for current tax is made on the basis of estimated taxable
income for the relevant accounting year in accordance with the Income
Tax Act, 1961.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognized amounts and there
is an intention to settle the asset and the liability on a net basis.
The deferred tax for timing differences between the book and tax
profits for the year is accounted for, using the tax rates and laws
that have been substantively enacted as of the Balance Sheet date.
Deferred tax assets arising from timing differences are recognized to
the extent there is reasonable certainty that these would be realized
in future.
In case of unabsorbed losses and unabsorbed depreciation, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profit. At each Balance Sheet date the Company reassesses the
unrecognized deferred tax assets.
Minimum Alternative Tax (MAT) credit is recognized as an asset only
when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period. In the year in
which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in Guidance Note issued
by the ICAI, the said asset is created by way of a credit to the
Statement of Profit and Loss and shown as MAT Credit Entitlement.
The Company reviews the same at each Balance Sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that the Company will pay
normal Income Tax during the specified period.
The Company has the policy of reviewing and passing proper adjustment
entries for Income Tax paid, Provision for Income Tax made and
excess/shorttax provision for the year after filing Income Tax returns.
The Company also makes a fair estimate of the Income Tax liability for
the said year and gives effects to it in the Books of Accounts
xv) CASH AND CASH EQUIVALENT:
Cash and Cash Equivalents for the purpose of cash flow statement
comprise cash on hand and cash at bank including fixed deposit with
original maturity period of three months or less and short term highly
liquid investments with an original maturity of three months or less.
xvi) CASH FLOW STATEMENT:
Cash flows are reported using the Indirect Method, whereby profit before
tax is adjusted for the effects of transactions of non-cash nature, any
deferrals or accruals of past or future cash receipts or payments and
item of income or expenses associated with investing or financing cash
flows. The cash flows from operating, investing and financing activities
of the Company are segregated based on the available information.
xvii) RESEARCH & DEVELOPMENT:
Revenue expenditure on Research and Development is charged to the
Statement of Profit and Loss in the year in which it is incurred.
Capital Expenditure on Research and Development is shown as an addition
to Fixed Assets or Work-in-Progress, as the case may be. However there
are no such expenditure in the year under consideration.
xviii) EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing the net profit for
the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is 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
resources.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 is adjusted for the effects of all dilutive potential
equity shares.
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 is
adjusted for the effects of all dilutive potential equity shares.
xix) PROVISIONS & CONTINGENCIES:
The company estimates the probability of any loss that might be
incurred on outcome of contingencies on the basis of information
available.
A provision is recognized when the company has a present obligation as
a result of past event 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 determined based on
management's estimate required to settle the obligation at the balance
sheet date, supplemented by experience of similar transactions. These
are reviewed at each balance sheet date and adjusted to reflect the
management's current estimates.
In cases where the available information indicates that the loss on the
contingency is reasonably possible but the amount of loss cannot be
reasonable estimated, a disclosure is made in the financial statements.
In case of remote possibility neither provision nor disclosure is made
in the financials.
A Contingent Asset is neither recognised nor disclosed in the Financial
Statements.
Mar 31, 2014
I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements are prepared in accordance with the generally
accepted accounting principles in India (Indian GAAP) under the
historical cost convention on an accrual basis and are in compliance
with all material aspect the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act")
read with the General Circular No. 15/2013 dated 13th September 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. The accounting policies have been consistently
applied by the company and are consistent with those used in the
previous year.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as up to
twelve months for the purpose of current and non-current classification
of assets and liabilities.
ii) USE OF ESTIMATES:
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
iii) TANGIBLE FIXED ASSETS AND DEPRECIATION: o TANGIBLE FIXED ASSETS:
Tangible fixed assets are stated at cost, less accumulated depreciation
and impairment loss if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use, but does not includes amount of excise duty on which
CENVAT is availed.
* CAPITAL WORK IN PROGRESS:
Expenses incurred towards acquisition of fixed assets which have not
been installed or not put to use before the year end are disclosed
under capital work in progress and no depreciation has been provided on
that.
* DEPRECIATION:
Depreciation on fixed assets is charged on straight-line method in the
manner and as per the rates and method provided in schedule XIV of the
Companies Act, 1956.
Fixed Assets, individually costing less than five thousands, are fully
depreciated in the year of purchase.
Depreciation on Assets added / disposed off during the year have been
provided on pro-rata basis with reference to the day of additions /
deletions from the respective day of purchase/ sale."
Continuous process plants" are classified based on technical assessment
and depreciation is provided accordingly.
iv) INTANGIBLE FIXED ASSETS AND AMORTISATION:
Intangible assets are recognized when it is probable that the future
economic benefit attributable to the assets will flow to the Company
and its cost can be reliably measured. Intangible Assets are stated at
acquisition cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible assets are amortized on a
straight line basis over their estimated useful lives.
Expenditure incurred on acquisition/development of intangible assets
which are not put/ready to use at the reporting date is disclosed under
intangible assets under development. However there are no such
intangible assets.
v) IMPAIRMENT OF ASSETS:
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An asset is treated as impaired when the carrying cost of the
assets exceeds its recoverable value. An impairment loss if any is
charged to Statement of Profit and Loss Account in the year in which an
asset is identified as impaired. Reversal of impairment losses
recognized in prior years is recorded when there is an indication that
the impairment losses recognized for the assets no longer exist or have
decreased. However there is no such impairment in the year under
consideration.
vi) INVENTORY:
Raw Material, Consumable Store & Spares and Packing Material are valued
at lower of cost and net realizable value. However, these items are
considered to be realizable at cost if the finished products in which
they will be used, are expected to be sold at or above cost.
Finished Goods and Work in Progress are valued at lower of cost or net
realizable value. Cost of Finished Goods and Work in Progress includes
the cost of conversion and other costs incurred to bring the
inventories to their present location and condition.
Cost of inventories is computed on weighted average basis. Obsolete
stock if any is valued at net realizable value. There is no such
obsolete stock.
vii) INVESTMENTS:
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Investments are recorded at cost on the date of purchase, which
includes acquisition charges such as brokerage, stamp duty, taxes, etc.
Current Investments are stated at lower of cost and quoted/fair value.
Provision for diminution in the value of Long Term Investments is made,
only if, in the opinion of the management, such a decline is regarded
as being other than temporary. However there are no investments of the
company in the year under consideration.
viii) GOVERNMENT GRANTS:
Government Grants are recognized when there is reasonable assurance
that the same will be received and all attaching conditions will be
complied with. Revenue grants are recognized in the Statement of Profit
& Loss account. Capital grants relating to specific Tangible/Intangible
assets are reduced from the gross value of the respective
Tangible/Intangible assets. Other capital grants in nature of
promoter''s contribution are credited to capital reserve.
However no government grants are received by the company in the year
under consideration.
ix) REVENUE RECOGNITION:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and can be reliably
measured.
SALE OF GOODS:
Domestic Sale is recognized on dispatch to customers and is net of
returns. "Sales" includes basic sales value and excise, but excludes
other recoveries such as insurance, sales tax etc.
OTHER INCOME:
Interest is recognized on Time Proportion Basis with reference to
principal outstanding and rate of Interest applicable.
x) EMPLOYEE BENEFITS:
Retirement benefits to employees comprise of provident fund
contributions, gratuity and leave encashment entitlements. Contribution
to Provident Fund is made in accordance with the statute and provided
on accrual basis. Gratuity are provided for, according to the rules of
these benefit schemes, on the basis of actuarial valuation done at the
year-end by independent actuaries using the Projected Unit Credit
Method. Actuarial losses/gains are recognized in the Statement of
Profit and Loss in the year in which they arise. Leave encashment are
paid in the year in which they accrue.
xi) FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currency are recorded at the rate of exchange
prevailing on the date of transaction. The exchange difference
resulting from settled transactions is recognized in the statement of
profit and loss if applicable.
Year end balances of monetary items are restated at the year end
exchange rates and the resultant net gain or loss is recognized in the
statement of profit and loss.
Premium or discounts on forward contracts where there are underlying
assets/liabilities are amortized over the life of the contract. Such
foreign exchange forward contracts are revalued at the Balance Sheet
date and the exchange difference between the spot rate at the date of
contract and spot rate on the Balance Sheet date is recognized as
gain/loss in the Statement of Profit and loss.
xii) BORROWING COSTS:
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such asset
up to the date when such assets are ready for its intended use. Other
borrowing costs are charged to the Statement of Profit and Loss Account
in the period in which they are incurred.
xiii) LEASES:
[a] As a Lessee:
Leases, where significant portion of risk and reward of ownership are
retained by the Lessor, are classified as Operating Leases and lease
rentals thereon are charged to the Statement of Profit and Loss on a
straight-line basis over the lease term.
[b] As a Lessor:
If the Company has leased certain tangible assets, and such leases,
where the Company has substantially retained all the risks and rewards
of ownership, are classified as operating leases.
Lease income is recognised in the Statement of Profit and Loss on a
straight-line basis over lease term.
However there are no lease in the year under consideration
xiv) TAXES ON INCOME:
Tax expense comprises of current and deferred tax.
Provision for current tax is made on the basis of estimated taxable
income for the relevant accounting year in accordance with the Income
Tax Act, 1961.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognized amounts and there
is an intention to settle the asset and the liability on a net basis.
The deferred tax for timing differences between the book and tax
profits for the year is accounted for, using the tax rates and laws
that have been substantively enacted as of the Balance Sheet date.
Deferred tax assets arising from timing differences are recognized to
the extent there is reasonable certainty that these would be realized
in future.
In case of unabsorbed losses and unabsorbed depreciation, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profit. At each Balance Sheet date the Company reassesses the
unrecognized deferred tax assets.
Minimum Alternative Tax (MAT) credit is recognized as an asset only
when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period. In the year in
which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in Guidance Note issued
by the ICAI, the said asset is created by way of a credit to the
Statement of Profit and Loss and shown as MAT Credit Entitlement.
The Company reviews the same at each Balance Sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that the Company will pay
normal Income Tax during the specified period.
The Company has the policy of reviewing and passing proper adjustment
entries for Income Tax paid, Provision for Income Tax made and
excess/short tax provision for the year after filing Income Tax
returns. The Company also makes a fair estimate of the Income Tax
liability for the said year and gives effects to it in the Books of
Accounts
xv) CASH AND CASH EQUIVALENT:
Cash and Cash Equivalents for the purpose of cash flow statement
comprise cash on hand and cash at bank including fixed deposit with
original maturity period of three months or less and short term highly
liquid investments with an original maturity of three months or less.
xvi) CASH FLOW STATEMENT:
Cash flows are reported using the Indirect Method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future cash receipts or
payments and item of income or expenses associated with investing or
financing cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information.
xvii) RESEARCH & DEVELOPMENT:
Revenue expenditure on Research and Development is charged to the
Statement of Profit and Loss in the year in which it is incurred.
Capital Expenditure on Research and Development is shown as an addition
to Fixed Assets or Work-in-Progress, as the case may be. However there
are no such expenditure in the year under consideration.
xviii) EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing the net profit for
the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is 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 resources.
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 is
adjusted for the effects of all dilutive potential equity shares.
xix) PROVISIONS & CONTINGENCIES:
The company estimates the probability of any loss that might be
incurred on outcome of contingencies on the basis of information
available.
A provision is recognized when the company has a present obligation as
a result of past event 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 determined based on
management''s estimate required to settle the obligation at the balance
sheet date, supplemented by experience of similar transactions. These
are reviewed at each balance sheet date and adjusted to reflect the
management''s current estimates.
In cases where the available information indicates that the loss on the
contingency is reasonably possible but the amount of loss cannot be
reasonably estimated, a disclosure is made in the financial statements.
In case of remote possibility neither provision nor disclosure is made
in the financials.
A Contingent Asset is neither recognised nor disclosed in the Financial
Statements.
Mar 31, 2013
I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements are prepared in accordance with the generally
accepted accounting principles in India under the historical cost
convention on accrual concept and are in line with the Accounting
Standards, relevant laws as well as the guide lines prescribed by the
Institute of Chartered Accountants of India.
These financial statements have been prepared to comply in all material
aspects with the accounting standards notified under Section 211(3C)
[Companies (Accounting Standards) Rules, 2006, as amended and the other
relevant provisions of the Companies Act, 1956.
ii) USE OF ESTIMATES:
The preparation and presentation of financial statements requires
estimates and assumptions and/or revised estimates and assumptions to
be made that affect the reported amounts of assets and liabilities and
disclosures of Contingent Liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during the
reported period. The estimates and assumptions used in the
accompanying financial statements are based upon Management''s
evaluation of the relevant facts and circumstances as on the date of
financial statements. Differences between the actual results and
estimates are recognised in the period in which the results are known /
materialise.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of
assets and liabilities.
iii) TANGIBLE FIXED ASSETS AND DEPRECIATION:
TANGIBLE FIXED ASSETS:
Fixed Assets have been stated at cost. Cost comprises of the purchase
price and all other attributable cost of bringing the assets to its
working condition for intended use.
CAPITAL WORK IN PROGRESS:
Expenses incurred towards acquisition of fixed assets which have not
been installed or not put to use before the year end are disclosed
under capital work in progress and no depreciation has been provided on
that.
DEPRECIATION:
Depreciation on fixed assets is charged on straight-line method basis
in the manner and as per the rates and method provided in schedule XIV
of the Companies Act, 1956. Fixed Assets, individually costing less
than five thousands, are fully depreciated in the year of purchase
Depreciation on Assets added / disposed off during the year have been
provided on pro-rata basis with reference to the day of additions /
deletions from the respective day of purchase/sale.
iv) INTANGIBLE FIXED ASSETS AND AMORTISATION:
§ Intangible assets are recognized where it is probable that the future
economic benefit attributable to the assets will flow to the Company
and its cost can be reliably measured.
§ Expenditure incurred on acquisition/development of intangible assets
which are not put/ ready to use at the reporting date is disclosed
under intangible assets under development. However there are no such
intangible assets under development.
v) IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying value of the asset
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount. However there is no such impairment in
the year under consideration.
vi) INVENTORY
The Inventory is valued as certified by the Management Raw Material and
Consumables are valued at cost, computed on weighted average cost
basis.
o Finished Goods are valued at average selling price of goods or net
realizable value whichever is Lower. Cost includes the cost of
conversion and other costs incurred to bring the inventories to their
present location and condition. o Obsolete stock if any is valued at
net realisable value. There is no such obsolete stock. o In the year
under consideration, work in progress is valued at cost which includes
the cost of conversion and other costs incurred to bring the
inventories to their present location and condition.
vii) INVESTMENTS:
Investments, which are readily realisable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. The Current investments are
valued at cost. Long Term investments are stated at cost. Provision for
dimunition in the value of Long Term Investments is made, only if, in
the opinion of the management, such a decline is regarded as being
other than temporary. However there are no investments of the company
in the year under consideration.
viii) REVENUE RECOGNITION:
o SALE OF GOODS
Domestic Sales is recognized on dispatch to customers and is net of
returns. Sales turnover includes basic sales value and excise cess, but
excludes other recoveries such as insurance, sales tax etc. o OTHER
INCOME
Interest is recognized on Time Proportion Basis with reference to
principal outstanding and rate of Interest applicable
ix) EMPLOYEE BENEFITS:
Retirement benefits to employees comprise of provident fund
contributions, gratuity and leave encashment entitlements. Contribution
to Provident Fund is made in accordance with the statute and provided
on accrual basis. Gratuity are provided for, according to the rules of
these benefit schemes, on the basis of actuarial valuation done at the
year-end by independent actuaries using the projected Unit Credit
Method. Actuarial losses/gains are recognized in the Statement of
Profit and Loss in the year in which they arise. Leave encashment are
paid in the year in which they accrue
x) FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currencies are recorded at transaction date.
The exchange difference resulting from settled transactions is
recognized in the statement of profit and loss, if applicable Year end
balances of monetary items are restated at the year end exchange rates
and the resultant net gain or loss is recognized in the statement of
profit and loss. Premium or discount on forward contracts where there
are underlying assets/liabilities are amortised over the life of the
contract. Such foreign exchange forward contracts are revalued at the
Balance Sheet date and the exchange difference between the spot rate at
the date of contract and spot rate on the Balance Sheet date is
recognized as gain/loss in the Statement of Profit and loss.
xi) BORROWING COSTS:
Interest and other related cost on acquiring qualifying assets are
capitalised as per accounting standard AS-16. All other borrowing costs
are recognized as expense in the period in which they are incurred.
xii) LEASES:
(a) As a Lessee:
Leases, where significant portion of risk and reward of ownership are
retained by the Lessor, are classified as Operating Leases and lease
rentals thereon are charged to the Statement of Profit and Loss on a
straight-line basis over the lease term.
(b) As a Lessor:
If the Company has leased certain tangible assets, and such leases,
where the Company has substantially retained all the risks and rewards
of ownership, are classified as operating leases.
Lease income is recognised in the Statement of Profit and Loss on a
straight-line basis over lease term
However there are no lease in the year under consideration
xiii) TAXES ON INCOME:
Tax expense comprises of current and deferred tax. Provision for
current tax is made on the basis of estimated taxable income for the
relevant accounting year in accordance with the Income Tax Act, 1961.
The deferred tax for timing differences between the book and tax
profits for the year is accounted for, using the tax rates and laws
that have been substantively enacted as of the Balance Sheet date.
Deferred tax assets arising from timing differences are recognised to
the extent there is reasonable certainty that these would be realised
in future.
Minimum Alternative Tax (MAT) credit is recognised as an asset only
when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period.
In the year in which the MAT credit becomes eligible to be recognised
as an asset in accordance with the recommendations contained in
Guidance Note issued by the ICAI, the said asset is created by way of a
credit to the Statement of Profit and Loss and shown as MAT Credit
Entitlement.
The Company reviews the same at each Balance Sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that the Company will pay
normal Income Tax during the specified period
The Company has the policy of reviewing and passing proper adjustment
entries for Income Tax paid, Provision for Income Tax made and
excess/short tax provision for the year after filing the
Income Tax Return. The Company also makes a fair estimate of the Income
Tax liability for the said year and gives effects to it in the Books of
Accounts.
xiv) CASH AND CASH EQUIVALENT
Cash and Cash Equivalents for the purpose of cash flow statement
comprise cash on hand and cash at bank including fixed deposit with
original maturity period of more than twelve months and short term
highly liquid investments with an original maturity of three months or
less.
xv) CASH FLOW STATEMENT
Cash flows are reported using the Indirect Method, whereby profit/
(loss) before 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.
xvi) RESEARCH & DEVELOPMENT
Revenue expenditure on Research and Development is charged to the
Statement of Profit and Loss in the year in which it is incurred.
Capital Expenditure on Research and Development is shown as an addition
to Fixed Assets or Work-in-Progress, as the case may be. However there
are no such expenditure in the year under consideration.
xvii) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, 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
xviii)PROVISIONS AND CONTINGENCIES:
The company estimates the probability of any loss that might be
incurred on outcome of
contingencies on the basis of information available up to the date on
which the financial statements are prepared.
A provision is recognized when the company has a present obligation as
a result of past event 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 determined based on
management''s estimate required to settle the obligation at the balance
sheet date, supplemented by experience of similar transactions. These
are reviewed at each balance sheet date and adjusted to reflect the
management''s current estimates.
In cases where the available information indicates that the loss on the
contingency is reasonably possible but the amount of loss cannot be
reasonable estimated, a disclosure is made in the financial statements.
In case of remote possibility neither provision nor disclosure is made
in the financials.
A Contingent Asset is neither recognised nor disclosed in the Financial
Statements
Mar 31, 2012
1. Accounting Convention:
The financial statement are prepared under the historical cost
convention in accordance with the accounting principles accepted in
India and are in line with the relevant laws as well as the guidelines
prescribed by the department of company affairs and the Institute of
Chartered Accountants of India.
2. Method of Accounting:
Method of accounting employed by the company is generally mercantile
both as to income and expenditure except in the case of refunds from
government bodies viz. sales tax, excise, income tax etc, subsidy,
insurance claims and dividend receipts and Interest from GEB Deposit &
Margin Money which are being accounted on cash basis.
3. Presentation of Financial Statements:
As this is the 1st year of revised schedule VI, maximum efforts have
been made to reclassify and regroup the figures and data of previous
year in the specified format.
4. a. Fixed Assets:
Fixed Assets have been stated at cost. Cost comprises of the purchase
price and all other attributable cost of bringing the assets to its
working condition for intended use.
b. Capital work in Progress:
Expenses incurred towards acquisition of fixed assets which have not
been installed or put to use before the year end are disclosed under
capital work in progress and no depreciation has been provided on that.
c. Impairment of Assets:
In compliance with Accounting Standards (AS) 28 - "Impairment of
Assets" issued by the Institute of Chartered Accountants of India
(ICAI), the carrying amount of Cash Generating Units/Assets are
reviewed at Balance Sheet date to determine whether there is any
indication of impairment if any such indication exists, the recoverable
amount is estimated at the higher of net selling price and value in
use. Impairment loss is recognized wherever carrying amount exceeds the
recoverable amount.
5. Depreciation:
Depreciation on fixed assets is charged on straight-line method basis
in the manner and as per the rates and method provided in schedule XIV
of The Companies Act, 1956. Depreciation on Assets added / disposed off
during the year has been provided on prorata basis with reference to
the date of additions / deletions.
6. Inventory:
Raw Materials, Stores and Spare parts are valued at cost (excluding
excise and sales tax), finished goods are valued at realizable value
and work-in-process is valued at the cost of production. The
manufacturing process being continuous, work-in-progress is separately
accounted for.
7. Excise Duty:
The liability for cess duty on finished goods is accounted as and when
they are cleared from the factory premises.
8. Revenue Recognition:
Gross Receipts include commission and other income. Sales of goods are
recognized on dispatch to customer and are net of returns. Sales
turnover includes basic sales value, but excludes other recoveries such
as insurance, excise, sales tax etc.
9. Retirement Benefits:
The company contributes to the Provident fund scheme. The gratuity fund
is maintained with Life Insurance Corporation of India, (EDLI policy)
the Company provides for the annual gratuity liability on the basis of
actuarial valuation obtained at the end of the year such contribution
is charged to revenue.
10. Foreign Currency Transactions:
The transactions in foreign currencies are recorded at the exchange
rate prevailing on the date of transaction. Outstanding bills at the
end of year are however not booked at the exchange rate prevalent as on
31st March 2012.
11. Borrowing Costs:
Interest and other related cost on acquiring qualifying assets are
capitalized as per accounting standard AS-16.
12. Taxes on Income:
Deferred Tax Provision
As per the accounting standard AS-22 issued by ICAI, the net deferred
tax liability amounting to Rs.305.83 lacs on account of timing
differences as shown below for the year under consideration, is
accounted for, using the tax rate and laws that have been enacted or
substantially enacted as on the Balance Sheet date, has been credited
to the profit and loss account.
Deferred tax Liability on account of depreciation. Rs. 11.67 lacs
Mar 31, 2010
1. ACCOUNTING CONVENTION:
The financial statement are prepared under the historical cost
convention in accordance with the accounting principles accepted in
India and are in line with the relevant laws as well as the guidelines
prescribed by the department of company affairs and the Institute of
Chartered Accountants of India.
2. METHOD OF ACCOUNTING :
Method of accounting employed by the company is generally mercantile
both as to income and expenditure except in the case of refunds from
government bodies viz. sales tax, excise, income tax etc, subsidy,
insurance claims and dividend receipts which are being accounted on
cash basis.
3. a. FIXED ASSETS:
Fixed Assets have been stated at cost. Cost comprises of the purchase
price and all other attributable cost of bringing the assets to its
working condition for intended use.
b. CAPITAL WORK IN PROGRESS :
Expenses incurred towards acquisition of fixed assets which have not
been installed or put to use before the year end are disclosed under
capital work in progress and no depreciation has been provided on that.
c. IMPAIRMENT OF ASSETS :
In compliance with Accounting Standards (AS) 28 - "Impairment of
Assets" issued by the Institute of Chartered Accountants of India
(ICAI), the carrying amount of Cash Generating Units/Assets are
reviewed at Balance Sheet date to determine whether there is any
indication of impairment if any such indication exists, the recoverable
amount is estimated at the higher of net selling price and value in
use. Impairment loss is recognized wherever carrying amount exceeds the
recoverable amount.
4. DEPRECIATION :
Depreciation on fixed assets is charged on straight-line method basis
in the manner and as per the rates and method provided in schedule XIV
of The Companies Act, 1956. Depreciation on Assets added / disposed off
during the year has been provided on prorata basis with reference to
the date of additions / deletions.
5. INVENTORY :
Raw Materials, Stores and Spare parts are valued at cost (excluding
excise and sales tax), finished goods and work-in-process are valued at
realizable value. The manufacturing process being continuous,
work-in-progress is separately accounted here.
6. EXCISE DUTY :
The liability for cess duty on finished goods is accounted as and when
they are cleared from the factory premises.
7. REVENUE RECOGNITION
Gross Receipts include commission and other income. Sales of goods are
recognized on dispatch to customer and are net of returns. Sales
turnover includes basic sales value, but excludes other recoveries such
as insurance, excise, sales tax etc.
8. RETIREMENT BENEFITS :
The company contributes to the Provident fund scheme. The gratuity fund
is maintained with Life Insurance Corporation of India, (EDLI policy)
the Company provides for the annual gratuity liability on the basis of
actuarial valuation obtained at the end of the year such contribution
is charged to revenue.
9. FOREIGN CURRENCY TRANSACTIONS :
The transactions in foreign currencies are recorded at the exchange
rate prevailing on the date of transaction. Outstanding bills at the
end of year are however not booked at the exchange rate prevalent as on
31st March 2010.
10. BORROWING COSTS :
Interest and other related cost on acquiring qualifying assets are
capitalized as per accounting standard AS-16.
11. TAXES ON INCOME:
DEFERRED TAX PROVISIONS :
As per the accounting standard AS-22 issued by ICAI, the net deferred
tax liability amounting to Rs.270.68 lacs on account of timing
differences as shown below for the year under consideration, is
accounted for using the tax rate and laws that have been enacted or
substantially enacted as on the Balance Sheet date, has been credited
to the profit and loss account.
12. CURRENT TAX :
Prrovision for Income Tax is determined in accordance with the
applicable provisions of MAT under the Income Tax Act, 1961.