Jun 30, 2014
(In the order of applicability of Accounting Standards)
AS - 1 Disclosure and Basis of Accounting
(i) The Financial Statements have been prepared under the Historical
cost convention in accordance with the provisions of the Companies Act,
1956. The Company has complied with the Accounting Standards prescribed
in the Companies (Accounting Standards) Rules, 2006 issued by the
Central Government, in consultation with the National Advisory
Committee on Accounting Standards, to the extent applicable.
(ii) The Company has been consistently following the accrual basis of
accounting in respect of its Income and Expenditure.
(iii) The Accounts are prepared on the basis of going concern concept
only.
AS - 2 Valuation of Inventories
Inventories are valued at lower of cost and net realisable value, where
a) Cost of Raw materials is determined on specific identification
method.
b) Stock of stores, spares and packing materials is determined on
weighted average method.
c) Finished goods and work in progress is determined under FIFO method
where cost includes conversion and other costs incurred in bringing the
inventories to their present location and condition.
AS - 3 Cash Flow Statement
Cash flows are reported using the indirect method, where by the profit
before tax is adjusted for the effect of transactions of a non cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense associated with
investing or financing cash flows. Cash and cash equivalent include
cash on hand and balances with banks in current and deposit accounts
with necessary disclosure of cash and cash equivalent balances that are
not available for use by the company.
AS - 6 Depreciation Accounting
Depreciation on Fixed Assets has been provided as per Schedule XIV of
the Companies Act, 1956 adopting the methods as under:
i) On Assets acquired before 01.04.1990 - Written Down Value Method.
ii) On Assets acquired from 01.04.1990 - Straight Line Method
iii) In respect of all assets purchased or sold during the year,
depreciation has been provided at the above rates on pro-rata basis
from the date of purchase / to the date of sale including assets whose
cost is below Rs.5,000/-.
AS - 9 Revenue Recognition
i) Revenue from sale transactions is recognized as and when the
property in the goods sold is transferred to the buyer for a definite
consideration. Revenue from service transactions are recognised on the
completion of the contract at the contracted rate and when there is no
uncertainty regarding the amount of consideration or collectability.
ii) Other Income except dividend is accounted on accrual basis.
iii) Sales as reported are exclusive of Sales Tax (VAT), Insurance and
Transport charges.
AS - 10 Fixed Assets
The cost of fixed assets is shown at historical cost of acquisition
including installation, commissioning less accumulated depreciation.
AS - 11 Foreign Currency Transactions
Foreign currency transactions are recorded at the prevailing exchange
rates at the time of initial recognition. Exchange differences are
recognized as income or expense in the Profit and Loss account.
Outstanding balances of monetary items denominated in foreign currency
are restated at closing exchange rates and recognised as income or
expenses in the Profit and Loss account in other cases. The premium on
discount arising at the inception of forward exchange contracts is
accounted as income or expense over the life of the contract. Any
profit or loss arising on cancellation or renewal exchange contract is
recognized as income or as expense in the period in which they arise.
AS - 13 Accounting for Investments
Long term investments are stated at cost. A provision for diminution,
if any, is made to recognise a decline, other than temporary, in the
value of long term investments.
AS - 15 Employee Benefits
Short term employee benefits (other than termination benefits) which
are payable within 12 months after the end of the period in which the
employees render service are accounted on accrual basis.
Defined Contribution Plans
Company''s contributions paid / payable during the year to Provident
Fund is recognized in the Profit and Loss account.
Defined Benefit Plans
Company''s Liabilities towards gratuity is determined using the
projected unit credit method which considers each period of service as
giving rise to an additional unit of benefit entitlement and measures
each unit separately to build up the final obligation. Past services
are recognized on a straight line basis over the average period until
the amended benefits becomes vested. Actuarial gains or losses are
recognized immediately in the statement of profit and loss account as
income or expense. Obligation is measured at the present value of
estimated future cash flows using a discounted rate.
AS - 16 Borrowing Costs
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of cost of
such assets. Aqualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are recognized as expenses in the period in
which they are incurred.
AS -19 Lease
Lease, where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating lease. Operating lease payments are recognized as an expense
in the profit and loss account on a straight line basis over the lease
term.
AS - 20 Earnings per Share
The Earnings considered in ascertaining the Company''s earnings per
share comprise of Net Profit after tax.
AS - 22 Accounting for taxes on Income
Deferred Tax resulting from timing differences between book and tax
profits is accounted under liability method at enacted as substantively
enacted rate as on the balance sheet date. Deferred tax asset, other
than those arising on account of unabsorbed depreciation or carried
forward of losses under tax loss, are recognised and carried forward
subject to consideration of prudence only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax asset can be realized.
Deferred tax asset, arising on account of unabsorbed depreciation or
carried forward of losses under tax loss, are recognised and carried
forward subject to consideration of prudence only to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax asset can be realised.
Current tax is determined at the amount of tax payable in respect of
estimated taxable income for the year.
AS - 28 Impairment of Assets
An asset is impaired when the carrying amount of the assets exceeds its
recoverable amount. An impairment loss is charged to the Profit and
Loss account in the year in which an asset is identified as impaired.
An impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of the recoverable amount.
AS - 29 Provisions, Contingent liability and Contingent Assets
a) Provisions involving degree of estimation in measurement are
recognized when there is a present obligation as a result of past event
and it is probable that there will be an outflow of resources.
b) Contingent liabilities are disclosed by way of notes to accounts.
Provision is made if it becomes probable that an outflow of future
economic benefits will be required for an item previously dealt with as
a contingent liability.
c) Contingent liability under various fiscal laws includes those in
respect of which the Company / Department is in appeal.
Others : Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosures of contingent liabilities as at the
date of the financial statements and reported amount of revenues and
expenses during the reporting period. Actual results could differ from
these estimates. Any revision to the estimates is recognized
prospectively.
VAT
a) The value of VAT benefits is being reduced from the value of
purchase of materials
b) The value of benefits eligible in respect of Capital items is
reduced from the cost and depreciation is calculated accordingly.
Jun 30, 2013
In the order of applicability of Accounting Standards) AS -1
Disclosure and Oasis of Accounting (i) The Financial Statements have
been prepared under the Historical cost convention in accordance with,
(he provisions of the Companies Act, 1956. The Company has complied
with the Accounting Standards- prescribed in the Companies (Accounting
Standards) Rules. 2006 issued by 13iq Conlral Govommonl, in
consirllafiDn wllh Iho National Advisory Commutes on Accounting
SttmdardB. to Ihocaiont appl jwblu. (il) The Company has been
consistently following the accrual basis of accounting in respect nf
its Income and Expenditure. (iii) Trie Account are prepared an the
basis of going concern concept only, AS - 2 Valuation of Inventories
Inventon''os are valued at lower of cost and net realisable value, whore
a) Cost of Raw materials is dete-nniiied on specific IdentJlBcaGon
method.
b) Stock of stores, spares and packing materials is determined on
weighted average melhcd.
c) Finished goods and wmk In progress In dole*mined under FIFO method
where cost includes conversion and oliier oasis incurrod In Bringing
ihu inventories to their present location and condition,
AS - 3. Cash Flow Statement
Cash tows are reported using the indirect method, where by the prof it
before tax is adjusted for (he effect of transactions of a rum cash
nature, any deferrals or accruals of past or liilura operating nnsti
rcoaipls or ptfyftenta and Horns ol income or espouse associated uaUi
investing or linancing cash flows. Cash ur>d cash equivalent include
cash on hand and balances wild banks in current and deposit
accounlsvrith necessary discfosureof cash and cash equi valenlbalances
lhat are not available for use by the company.
AS - G Depredation Accounting
provided asper Schauuta XIV of the Companies Act, 1956 adapting the met
hoda asunder:
I) On Assets aoquifod before 01.04.1990 - Wriltori Dawn Value Mnlhod.
ii} On Assels acqu! red from 01,04,1990 - Slrajght Lins Method
iii) In respect of nil niseis purchased or sofd du ring the year.
depreciation has been provided at the above rates en pro-rata basis
from ¦ Uie dale of pgrtl i ase i to the data of sale Including assets
whose cost is Wow R&,5,0QOA,
A3 - 9 Revenue Recognition
i) Revenue from sale liansaclwns is recognized as and when Ihu property
in the goods sold is transferred to trie buyer for a definite
consideration. Revenue from service transactions arc recognised an ihe
completion cf Hie contract at the contracted rate and when Ihoiolsnb
uncertainly regarding lliearriountolcpnslderauon orcollectability.
11} Other income excepl dividend is accounted on accrual basis,
iii) Sales as reported are exctusive of Sates Tax (VAT), Insurance and
Transport charges,
AS -10 Fixed Assets i The cost of fixed assets Is shown al historical
cost of acquisition Including installation, commissioning loss
accumulated doprtitialiQA
AS - H Foreign Currency Transections
Foreign currency transactions are recorded at ihe prevailing exchange
rates at ihetimo of initial recognition, Exchange differences are
ropngnized as income w ex pensa in the Profit and Loss account.
Outstanding bai snees of monetary Items denominated in foreign cunoiicy
are restated at ctosi rtQ oxch ango rates and roocgni&ot! as Income or
oxponsos in tho Profit and Loss account in ChUhOC cases, The prtsnlum
on discount arising; at toe Inception of forward exchange oonlracts is
accounted as income or expense over the I ile of the contract. Any
profit orloss arising en cancelation or rone v/al exchange contract is
recognteed as income of as expense i n theperiod in which UiQyjrise.
AS -13 Accounting for Invo&lmcnts
Lang term investments are stated at cost. Aorovlslon for diminution, if
any, is mado to recognise a decline, other than tern poraiy, in the
value of long term investments.
AS -15 Employee- Benefits
Short tonn emptayeo benefits (other than termination bontfils) which
ate payable wilhl n 2 months niter llirj end of Uio period in willed
Uw employees icndor series aro accounted on accrual basis.
Jun 30, 2012
(i) The Financial Statements have been prepared under the Historical
cost convention in accordance with the provisions of the Companies Act,
1956. The Company has complied with the Accounting Standards prescribed
in the Companies (Accounting Standards) Rules, 2006 issued by the
Central Government, in consultation with the National Advisory
Committee on Accounting Standards, to the extent applicable.
(ii) The Company has been consistently following the accrual basis of
accounting in respect of its Income and Expenditure.
(iii) The Accounts are prepared on the basis of going concern concept
only. AS-2: VALUATION OF INVENTORIES:
Inventories are valued at lower of cost and net realisable value, where
a) Cost of Raw materials is determined on specific identification
method.
b) Stock of stores, spares and packing materials is determined on
weighted average method.
c) Finished goods and work in progress is determined under FIFO method
where cost includes conversion and other costs incurred in bringing the
inventories to their present location and condition.
AS - 3: CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, where by the profit
before tax is adjusted for the effect of transactions of a non cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense associated with
investing or financing cash flows. Cash and cash equivalentindude cash
on hand and balances with banks in current and deposit accounts with
necessary disclosure of cash and cash equivalent balances that are not
available for use by the company.
AS - 5: NET PROFIT / LOSS FORTHE PERIOD AND PRIOR PERIOD ITEMS:
All items of income and expenses pertaining to the year are included in
arriving at the net profit for the year, unless specifically mentioned
elsewhere in the financial statement or as required by Accounting
Standards.
AS-6: DEPRECIATION ACCOUNTING:
Depreciation on Fixed Assets has been provided as per Schedule XIV of
the Companies Act, 1956 adopting the methods as under: i) On Assets
acquired before 01.04.1990-Written Down Value Method. ii) On Assets
acquired from 01.04.1990 - Straight Line Method.
iii) In respect of all assets purchased or sold during the year,
depreciation has been provided at the above rates on pro-rata basis
from the date of purchase/to the dateof sale including assets whose
cost is below Rs.5,000/-.
AS-9: REVENUE RECOGNITION:
a) Revenue from sale transactions is recognized as and when the
property in the goods sold is transferred to the buyer for a definite
consideration. Revenue from service transactions are recognised on the
completion of the contract at the contracted rate and when there is no
uncertainty regarding the amount of consideration or collectability.
b) Other Income except dividend is accounted on accrual basis.
c) Sales as reported are exclusive of Sales Tax (VAT), Insurance and
Transport charges. AS-10: FIXED ASSETS:
The cost of Fixed Assets is shown at historical cost of acquisition
including installation, commissioning less accumulated depreciation.
AS-11:FOREIGNCURRENCYTRANSACTIONS: Foreign currency transactions are
recorded at the prevailing exchange rates at the time of initial
recognition. Exchange differences are recognized as income or expense
in the profit and loss account. Outstanding balances of monetary items
denominated in foreign currency are restated at closing exchange rates
and recognised as income or expenses in the profit and loss account in
othercases. The premium on discount arising at the inception of
forward exchange contracts is accounted as income or expense over the
life of the contract. Any profit or loss arising on cancellation or
renewal exchange contract is recognized as income or as expense in the
period in which they arise. AS -13: ACCOUNTING FOR INVESTMENTS:
Long term investments are stated at cost. A provision for diminution,
if any, is made to recognise a decline, other than temporary, in the
value of long term investments.
AS -15: EMPLOYEE BENEFITS:
Short term employee benefits (other than termination benefits) which
are payable within 12 months after the end of the period in which the
employees render service are accounted on accrual basis. Defined
Contribution Plans
Company'scontributionspaid/payableduringtheyeartoProvidentFund
isrecognized inthe profit and loss account. Defined Benefit Plans
Company's Liabilities towards gratuity is determined using the
projected unit credit method which considers each period of service as
giving rise to an additional unit of benefit entitlement and measures
each unit separately to build up the final obligation. Past services
are recognized on a straight line basis over the average period until
the amended benefits becomes vested. Actuarial gains or losses are
recognized immediately in the statement of profit and loss account as
income or expense. Obligation is measured at the present value of
estimated future cash flows using a discounted rate,
AS -16: BORROWING COSTS:
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of cost of
such assets. A qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are recognized as expenses in the period in
which they are incurred.
AS-19: LEASE:
Lease, where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating lease. Operating lease payments are recognized as an expense
in the profit and loss account on a straight-line basis over the lease
term.
AS-20: EARNINGS PER SHARE:
The Earnings considered in ascertaining the Company's earning per share
comprise of Net Profit after tax and include post tax adjustments of
prior period and extra-ordinary items.
AS-22: ACCOUNTING FOR TAXES ON INCOME:
Deferred Tax resulting from timing differences between book and tax
profits is accounted under liability method at enacted as substantively
enacted rate as on the balance sheet date. Deferred tax asset, other
than those arising on account of unabsorbed depreciation or carried
forward of losses undertax loss, are recognised and carried forward
subject to consideration of prudence only to the extent that there is
reasonable certainty that sufficient future taxable income will be'
available against which such deferred tax asset can be realized.
Deferred tax asset, arising on account of unabsorbed depreciation or
carried forward of losses under tax loss, are recognised and carried
forward subject to consideration of prudence only to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax asset can be realised.
Current tax is determined at the amount of tax payable in respect of
estimated taxable income for the year.
AS - 28: IMPAIRMENT OF ASSETS:
An asset is impaired when the carrying amount of the assets exceeds its
recoverable amount. An impairment loss is charged to the Profit and
Loss account in the year in which an asset is identified as impaired.
An impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of the recoverable amount.
AS-29: PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS:
a) Provisions involving degree of estimation in measurement are
recognized when there is a present obligation as a result of past event
and it is probable that there will be an outflow of resources.
b) Contingent liabilities are disclosed by way of notes to accounts.
Provision is made if it becomes probable that an outflow of future
economic benefits will be required for an item previously dealt with as
a contingent liability.
c) Contingent liability under various fiscal laws includes those in
respect of which the Company / Department is in appeal.
Jun 30, 2010
AS 1: DISCLOSURE AND BASIS OF ACCOUNTING:
(i) The Financial Statements have been prepared under the Historical
cost convention in accordance with the provisions i of the Companies
Act, 1956. The Company has complied with the Accounting Standards
prescribed in {he, Companies (Accounting Standards) Rules, 2006 issued
by the Central Government, in consultation with the National à Advisory
Committee on Accounting Standards, to the extent applicable.
(ii) The Company has been consistently following the accrual basis of
accounting in respect of its Income and; Expenditure.
(iii) The Accounts are prepared on the basis of going concern concept
only.
AS 2: VALUATION OF INVENTORIES:
Inventories are valued at lower of cost and net realisable value, where
a) Cost of Raw materials is d etermined on specific identification
method.
b) Stock of stores, spares and packing materials is determined on
weighted average method.
c) Finished goods and work in progress is determined under FIFO method
where cost includes conversion and other; costs incurred in bringing
the inventories to their present location and condition.
AS 3: CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, where by the profit
before tax is adjusted for the effect of transactions of a non cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense associated with
investing or financing cash flows. Cash and cash equivalent include
cash on hand and balances with banks in current and deposit accounts
with necessary disclosure of cash and cash equivalent balances that are
not available for use by the company.
AS 5: NET PROFIT /LOSS FOR THE PERIOD AND PRIOR PERIOD ITEMS:
a) All items of income and expenses pertaining to the year are included
in arriving at the net profit for the year, unless specifically
mentioned elsewhere in the financial statement or as required by
Accounting Standards.
b) Prior year items are disclosed separately in the Profit & Loss
Account below the line.
AS 6: DEPRECIATION ACCOUNTING:
Depreciation on Fixed Assets has been provided as per Schedule XIV of
the Companies Act,1956 adopting the methods as under:
i) On Assets acquired before 01.04.1990-Written Down Value Method.
ii) On Assets acquired from 01.04.1990 - Straight Line Method
iii) In respect of all assets purchased or sold during the year,
depreciation has been provided at the above rates on pro- rata basis
from the date of purchase/to the date of sale including assets whose
cost is below Rs.5,000/-.
AS 9: REVENUE RECOGNITION:
a) Revenue from sale transactions is recognized as and when the
property in the goods sold is transferred to the buyer for a definite
consideration. Revenue from service transactions are recognised on the
completion of the contract at the contracted rate and when there is no
uncertainty regarding the amount of consideration or collectability.
b) Other Income except dividend is accounted on accrual basis,
c) Sales as reported are exclusive of Sales Tax (VAT), Insurance and
Transport charges.
AS 10: FIXED ASSETS:
The cost of Fixed Assets is shown at historicaI cost of acquisition
including installation, commissioning less accumulated depreciation
AS 11: FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are recorded at the prevailing exchange
rates at the time of initial recognition. Exchange differences are
recognized as income or expense in the profit and loss account.
Outstanding balances of monetary items denominated in foreign currency
are restated at closing exchange rates and recognised as income or
expenses in the profit and loss account in other cases.
The premium on discount arising at the inception of forward exchange
contracts is accounted as income or expense over the life of the
contract. Any profit or loss arising on cancellation or renewal
exchange contract is recognized as income or as expense in the period
in which they arise.
AS 13: ACCOUNTING FOR INVESTMENTS:
Long term investments are stated at cost. A provision for diminution,
if any, is made to recognise a decline, other than temporary, in the
value of long term investments.
AS 15: EMPLOYEE BENEFITS:
Short term employee benefits (other than termination benefits) which
are payable within 12 months after the end of the period in which the
employees render service are accounted on accrual basis.
Defined Contribution Plans
Companys contributions paid / payable during the year to Provident
Fund is recognized in the profit and loss account.
Defined Benefit Plans
Companys Liabilities towards gratuity is determined using the
projected unit credit method which considers each period of service as
giving rise to an additional unit of benefit entitlement and measures
each unit separately to build up the final obligation. Past services
are recognized on a straight line basis over the average period until
the amended benefits becomes vested. Actuarial gains or losses are
recognized immediately in the statement of profit and loss account as
income or expense. Obligation is measured at the present value of
estimated future cash flows using a discounted rate.
AS 16: BORROWING COSTS:
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of cost of
such assets. A qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are recognized as expenses in the period in
which they are incurred.
AS 19: LEASE:
Lease, where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating lease. Operating lease payments are recognized as an expanse
in the profit and loss account on a straight-line basis over the lease
term.
AS 20: EARNINGS PER SHARE:
The Earnings considered in ascertaining the Companys earning per share
comprise of Net Profit aftertax and include post tax adjustments of
prior period and extra-ordinary items.
AS 22: ACCOUNTING FOR TAXES ON INCOME:
Deferred Tax resulting from timing differences between book and tax
profits is accounted under liability method at enacted as substantially
enacted rate as on the balance sheet date. Deferred tax asset, other
than those arising on account of unabsorbed depreciation or carried
forward of losses under tax loss, are recognised and carried forward
subject to consideration of prudence only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax asset can be realized,
Deferred tax asset, arising on account of unabsorbed depreciation or
carried forward of losses under tax loss, are recognised and carried
forward subject to consideration of prudence only to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax asset can be realised.
Current tax is determined atthe amount of tax payable in respect of
estimated taxable income fortheyear.
AS 28: IMPAIRMENT OF ASSETS:
An asset is impaired when the carrying amount of the assets exceeds its
recoverable amount. An impairment loss is charged to the Profit and
Loss account in the year in which an asset is identified as impaired,
An impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of the recoverable amount.
AS 29: PROVISIONS. CONTINGENT LIABILITY AND CONTINGENT ASSETS:
a) Provisions involving degree of estimation in measurement are
recognized when there is a present obligation as a result of past event
and it is probable that there will bean outflow of resources.
b) Contingent liabilities are disclosed by way of notes to accounts.
Provision is made if it becomes probable that an outflow of future
economic benefits will be required for an item previously dealt with as
a contingent liability.
c) Contingent liability under various fiscal laws includes those in
respect of which the Company/ Department is in appeal,
USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of assets and
liabilities and the disclosures of contingent liabilities as at the
date of the financial statements and reported amount of revenues and
expenses during the reporting period. Actual results could differ from
these estimates. Any revision to the estimates is recognized
prospectively.
Jun 30, 2009
AS 1: DISCLOSURE AND BASIS OF ACCOUNTING:
(i) The Financial Statements have been prepared under the Historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956. The Company
has complied with the Accounting Standards Prescribed by the Companies
(Accounting Standards) Rules, 2006 issued by the Central Government, in
consultation with the National Advisory Committee on Accounting
Standards, to the extent applicable.
(ii) The Company has been consistently following the accrual basis of
accounting in respect of its Income and Expenditure.
(iii) The Accounts are prepared on the basis of going concern concept
only. AS 2: VALUATION OF INVENTORIES.
Inventories are valued at lower of cost and net realisable value, where
a) Cost of Raw materials is determined on specific identification
method.
b) Stock of stores, spares and packing materials is determined on
weighted average method.
c) Finished goods and work in progress is determined under FIFO method
where cost includes conversion and other costs incurred in bringing the
inventories to their present location and condition.
AS 3: CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, where by the profit
before tax is adjusted for the effect of transactions of a non cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense associated with
investing or financing cash flows. Cash and cash equivalent include
cash on hand and balances with banks in current and deposit accounts
with necessary disclosure of cash equivalent balances that are not
available for use by the company.
AS 5: NET (LOSS) / PROFIT FOR THE PERIOD AND PRIOR PERIOD ITEMS:
a) All items of income and expenses in the period are included in
arriving at the net loss for the year, unless specifically mentioned
elsewhere in the financial statement or is required by an Accounting
Standard.
b) Prior year items are disclosed separately in the Profit 6 Loss
Account below the line.
AS 6: DEPRECIATION ACCOUNTING:
Depreciation on Fixed Assets has been provided as per Schedule XIV of
the Companies Act,1956 adopting the methods as under:
i) On Assets acquired before 01.04.1990 - Written Down Value Method.
ii) On Assets acquired from 01.04.1990 - Straight Line Method
iii) In respect of all assets purchased or sold during the year,
depreciation has been provided at the above rates on pro- rata
basisfrom the date of purchase/to the date of sale including assets
whose cost is below Rs. 5,000/-.
AS 9: REVENUE RECOGNITION:
a) Revenue from sale transactions is recognized as and when the goods
sold is transferred to the buyer for a definite consideration.
b) Other Income except dividend is accounted on accrual basis.
c) Sales as reported are exclusive of Sales Tax (VAT), Insurance and
Transport charges. AS 10: FIXED ASSETS:
Fixed Assets are shown at historical cost of acquisition including
installation, commissioning less accumulated depreciation AS 11:
FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are recorded at the prevailing exchange
rates at the time of initial recognition. Exchange differences are
recognized as income or expense in the profit and loss account.
Outstanding balances of monetary items denominated in foreign currency
are restated at closing exchange rates and recognised as income or
expenses in the profit and loss account in other cases.
The premium on discount arising at the inception of forward exchange
contracts is accounted as income or expense over the life of the
contract. Any profit or loss arising on cancellation or renewal
exchange contract is recognized as income or as expense in the period
in which they arise.
AS 13: ACCOUNTING FOR INVESTMENTS:
Long term investments are stated at cost. A provision for diminution,
if any, is made to recognise a decline, other than temporary, in the
value of long term investments.
AS 15: EMPLOYEE BENEFITS:
Short term employee benefits (other than termination benefits) which
are payable within 12 months after the end of the period in which the
employees render service are accounted on accrual basis. Defined
Contribution Plans
Companys contributions paid / payable during the year to Provident
Fund is recognized in the profit and loss account. Defined Benefit
Plans Companys Liabilities towards gratuity are determined using the
projected unit credit method which considers each period of service as
giving rise to an additional unit of benefit entitlement and measures
each unit separately to build up the final obligation. Past services
are recognized on a straight line basis over the average period until
the amended benefits becomes vested. Actuarial gains or losses are
recognized immediately in the statement of profit and loss account as
income or expense. Obligation is measured at the present value of
estimated future cash flows using a discounted rate that is determined
by reference to market yields at the balance sheet date on government
bonds where the currency and terms of the government bonds consistent
with the currency and estimated terms of the defined benefit
obligations.
AS 16:BORROWINGCOSTS:
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of cost of
such assets. A qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are recognized as expenses in the period in
which they are incurred.
AS 19: LEASE:
Lease, where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating lease. Operating lease payments are recognized as an expense
in the profit and loss account on a straight-line basis over the lease
term.
AS 20: EARNINGS PER SHARE:
The Earnings considered in ascertaining the Companys earning per share
comprise of Net Profit after tax and include post tax adjustments of
prior period and extra-ordinary items.
AS 22: ACCOUNTING FORTAXES ON INCOME:
Deferred Tax resulting from timing differences between book and tax
profits is accounted under liability method at enacted as substantially
enacted rate as on the balance sheet date. Deferred tax asset, other
than those arising on account of unabsorbed depreciation or carried
forward of losses under tax loss, are recognised and carried forward
subject to consideration of prudence only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax asset can be realized.
Deferred tax asset, arising on account of unabsorbed depreciation or
carried forward of losses under tax loss, are recognised and carried
forward subject to consideration of prudence only to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax asset can be realised.
Current tax is determined at the amount of tax payable in respect of
estimated taxable income for the year.
AS 28: IMPAIRMENT OF ASSETS:
An asset is impaired when the carrying amount of the assets exceeds its
recoverable amount. An impairment loss is charged to the Profit and
Loss account in the year in which an asset is identified as impaired.
An impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of the recoverable amount.
AS 29: PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS:
a) Provisions involving degree of estimation in measurement are
recognized when there is a present obligation as a result of past event
and it is probable that there will be an outflow of resources.
b) Contingent liabilities are disclosed by way of notes to accounts.
Provision is made if it becomes probable that an outflow of future
economic benefits will be required for an item previously dealt with as
a contingent liability.
c) Contingent liability under various fiscal laws includes those in
respect of which the Company/Department is in appeal.
USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of assets and
liabilities and the disclosures of contingent liabilities as at the
date of the financial statements and reported amount of revenues and
expenses during the reporting period. Actual results could differ from
these estimates. Any revision to the estimates is recognized
prospectively.
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