Mar 31, 2015
(a) Basis for Accounting
i) The financial statements are prepared under the historical cost
convention on an accrual basis of accounting in accordance with the
generally accepted Accounting principles, as per Section 211(3C) of the
Companies Act, 1956 read with the General Circular 15/2013 dated 13th
of September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and other Accounting Principles
generally accepted in India.
ii) During the year the company has reclassified the previous year
figures where ever found applicable.
(b) Revenue Recognition:
i) Revenue from sale of goods is recognized on transfer of ownership to
the buyer. Sale of goods is recognized net of sales tax and value added
tax.
ii) Revenue from services rendered is recognized on transfer of
services to buyer.
(c) Investments:
Current Investment are stated at lower of cost or market value.
(d) Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of freight, duties, taxes and
incidental expenses thereto.
(e) Provision for Current and Deferred Tax
i) Provision for current income tax has been made after taking into
consideration benefits admissible under the provisions of the Income
Tax Act, 1961; however current tax liability is NIL due to past losses.
ii) Deferred Tax resulting from timing difference between taxable and
accounting income has not been recognized due to uncertainty of profit
in future.
(f) Contingent liabilities and commitments
Contingent liabilities and commitments have not been accounted for but
have been disclosed by note if any.
(g) Excise Duty & Sales Tax
Excise Duty & Sales Tax liability was accounted for on the basis of
Excise Duty & sales tax return filed by the company in the years where
the company was in operation. Additional liabilities on finality of the
assessment are being taken into account in the year of finalization. In
the opinion of board of directors there was no such liability as on
31.03.2015.
(i) Earnings per Share:
The earning considered in ascertaining the company's earnings per share
comprises net profit after tax. The number of shares used in computing
basic earnings per share is the weighted average number of shares
outstanding during the year.
(j) Gratuity:
No provision for gratuity has been made as no employee has put in
qualifying period of service for entitlement of this benefit.
(k) Paid up amount on 30,02,100 forfeited Equity shares i.e. Rs.
1,50,10,500/- which have not been re-allotted have been shown under the
head "Share Capital"
Mar 31, 2014
(a) Basis for Accounting
(I) The financial statements are prepared under the historical cost
convention on an accrual basis of accounting in accordance with the
generally accepted Accounting principles, Accounting Standards notified
under section 211 (3C) of the Companies Act, 1956 and the relevant
provisions thereof.
(ii) During the year the company has reclassified the previous year
figures whereever found applicable.
(b) Revenue Recognition
(I) Revenue from sale of goods is recognised on transfer of ownership
to the buyer. Sale of goods is recognised net of sales tax and value
added tax. However there are no such activity during the year.
(ii) Revenue from services rendered is recognised on transfer of
services to buyer.
(c) Investments
Current Investment are stated at cost or market value whichever is less
(d) Provision for Current and Deferred Tax
(I) Provision for current income tax has been made after taking into
consideration benefits admissible under the provisions of the Income
Tax Act, 1961., however current tax liability is NIL due to past
losses.
(ii) Deferred Tax resulting from timing difference between taxable and
accounting income and Deferred tax assets has not been recognised due
to uncertainity of profit in future.
(e) Contingent liabilities and commitments
Contingent liabilities and commitments have not been accounted for but
have been disclosed by note if any.
(f) Excise Duty & Sales Tax
Excise Duty & Sales Tax ability was accounted for on the basis of
Excise Duty & sales tax return filed by the company in the years where
the company was in operation. Additional liability on finality of the
assess ment are being taken into account in the year of finalisation.
In the opinion of board of directors there were no such liability as on
31.03.2014.
(g) Paid up amount on 3002100 forfeited Equity shares i.e.
Rs.15010500/- which have not been re-allotted have been shown under the
head "Share Capital"
Jun 30, 2013
(i) Revenue from sale of goods is recognised on transfer of ownership
to the buyer. Sale of goods is recognised net of sales tax and value
added tax. However there are no such activity during the year.
(ii) Revenue from services rendered is recognised on transfer of
services to buyer.
(c) Fixed Assets
(i) Fixed Assets are stated at cost net of recoverable taxes less
accumulated depreciation. All cost, including financing costs till
commencement of commercial production attributable to fixed assets are
capitalised.
(ii) The interest free security deposit paid to lessor of land
Rs.3868200/- which had been shown under the head "Land" upto 30.06.2012
has been returned by lessors and they have paid compensation to company
for Rs.2.30 crores on cancellation of lease of land.
(d) Depreciation and Amortisation
Depreciation on fixed assets has been provided using W.D.V. method at
rates prescribed in Schedule XIV to the Companies Act, 1956
(e) Inventories
Inventories of the company have been valued as under -
(i) Finished goods/scrap : At market price
(ii) Work in progress : At estimated cost
(iii) Raw Material, stores, spares and consumable : At cost or market
value whichever is less Cost of Inventories is generally ascertained on
FIFO method taking into account cost of purchase and related overheads
incurred in bringing them to their respective present location and
condition. However there were no inventories as on 30.06.2013.
(f) Investments
(i) Long Term Investment are stated at cost minus provision for
diminution other than temporary. However there are no such investment
as at 30.06.2013.
(ii) Current Investment are stated at cost or market value whichever is
less
(g) Employee Benefits
(i) Short term employee benefits are recognised as an expense in the
profit and loss account of the year in which the related service is
rendered.
(ii) There are no post employment and / or long term employee benefits
or retirement benefit
(h) Provision for Current and Deferred Tax
(i) Provision for current income tax has been made after taking into
consideration benefits admissible under the provisions of the Income
Tax Act, 1961., however current tax liability is NIL due to past
losses.
(ii) Deferred Tax resulting from timing difference between taxable and
accounting income and Deferred tax assets has not been recognised due
to uncertainity of profit in future.
(i) Borrowing Costs
Borrowing costs are charged to profit and loss account. Amount paid to
UPFC & PICUP under OTS over and above settled amount has been written
off as interest paid to them.
Jun 30, 2012
(a) Basis for Accounting
(i) The financial statements are prepared under the historical cost
convention on an accrual basis of accounting in accordance with the
generally accepted Accounting principles, Accounting Standards notified
under section 211 (3C) of the Companies Act, 1956 and the relevant
provisions thereof.
(ii) During the year, Revised schedule VI notified under the Companies
Act, 1956 has become applicable to the company for preparation and
presentation of its financial statements. The company has reclassified
the previous year figures in accordance with the requirements
applicable in the current year.
(b) Revenue Recognition
(i) Revenue from sale of goods is recognised on transfer of ownership
to the buyer. Sale of goods is recognised net of sales tax and value
added tax.
(ii) Revenue from services rendered is recognised on transfer of
services to buyer.
(c) Fixed Assets
(i) Fixed Assets are stated at cost net of recoverable taxes less
accumulated depreciation. All cost, including financing costs till
commencement of commercial production attributable to fixed assets are
capitalised.
(ii) The interest free security deposit paid to lessor of land
Rs.3868200/- has been shown under the head "Land".
(d) Depreciation and Amortisation
Depreciation on fixed assets has been provided using W.D.V. method at
rates prescribed in Schedule XIV to the Companies Act, 1956
(e) Inventories
Inventories of the company have been valued as under -
(i) Finished goods/scrap : At market price
(ii) Work in progress : At estimated cost
(iii) Raw Material, stores, spares and consumable : At cost or market
value whichever is less
Cost of Inventories is generally ascertained on FIFO method taking into
account cost of purchase and related overheads incurred in bringing
them to their respective present location and condition.
(f) Investments
(i) Long Term Investment are stated at cost minus provision for
diminution other than temporary
(ii) Current Investment are stated at cost or market value whichever is
less
(g) Employee Benefits
(i) Short term employee benefits are recognised as an expense in the
profit and loss account of the year in which the related service is
rendered.
(ii) There are no post employment and / or long term employee benefits
or retirement benefit
(h) Provision for Current and Deferred Tax
(i) Provision for current income tax has been made after taking into
consideration benefits admissible under the provisions of the Income
Tax Act, 1961., however current tax liability is NIL due to past
losses.
(ii) Deferred Tax resulting from timing difference between taxable and
accounting income and Deferred tax assets has not been recognised due
to uncertainity of profit in future.
(i) Borrowing Costs
Borrowing costs are charged to profit and loss account
(j) Contingent liabilities and commitments
Contingent liabilities and commitments have not been accounted for but
have been disclosed by note if any.
(k) Sales Tax
(i) Sales Tax liability was accounted for on the basis of sales tax
return filed by the company in the years where the company was in
operation. Additional liability on finality of the assessment are being
taken into account in the year of finalisation.
(ii) With the amount of VAT purchase cost of material has been reduced.
(l) Paid up amount on 3002100 forfeited Equity shares i.e.
Rs.15010500/- which have not been reallotted have been shown under the
head "Share Capital".
Jun 30, 2011
A) Basis of accounting
The financial statements are prepared under historical cost convention,
on a going concern basis and in accordance with the applicable
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 and relevant
provisions of the Companies act, 1956 subject to the remark that Part
of Plant & Machineries of tyre division have been sold resulting
non-production of Automotive tyres and tubes in total but production on
job work basis using balance of machineries is still going on. Besides
this establishment of Lamination division is under active
consideration. Considering realizable value of Land & Building which
is more than liabilities of financial institutions directors are of the
opinion that going concern basis is unaffected.
b) Revenue Recognition
All the items of cost/expenses and revenue/income have been accounted
for on accrual basis, except insurance claims, which are accounted for
on receipt basis in view of the uncertainty involved in ascertaining
the final claim.
c) Fixed Assets and Depreciation
i) Fixed Assets have been stated at cost/revalued figures less
depreciation on assets. Cost comprises the purchase price and any
attributable cost of bringing the assets to working condition for its
intended use including expenses and IDCP up to the date of
commissioning of project. The fixed assets have been reduced by the
modvat entitlement.
ii) The interest free security deposit paid to lesser of land
Rs.3868200/- has been shown under the head "Land".
iii) The company has provided depreciation using WDV Method at rates
prescribed by Schedule XIV to the Companies Act, 1956 on book
values/WDV including increase due to revaluation. However additional
depreciation for the year amounting to Rs.0.00 (Previous year
Rs.6782.50) on increase in values of Fixed Assets due to revaluation
has been transferred to profit & loss account from revaluation reserve
created out of revaluation done on 30.09.1994. Revalued Portion on
sold assets has been written off.
d) Inventories
Inventories of the company have been valued as under:
Finished Goods/Scrap At market price/Net realisable value whichever is
less.
Raw Material At cost or market value whichever is less.
e) Investments
Long Term Investments have been valued at cost of acquisition after
deducting provision, if any in cases where the fall in market value has
been considered of permanent nature.
f) Sales Tax
i) Sales Tax liability was accounted for on the basis of sales tax
return filed by the company in the years where the company was in
operation. Additional liabilities on finality of the assessment are
being taken into account in the year of finalisation.
ii) With the amount of VAT purchase cost of material has been reduced.
g) Excise Duty
Excise duty payable on finished goods and customs duty payable on raw
materials, stores, spares and components are accounted for on clearance
of goods from the factory premises/bonded warehouses, however there is
no such activity during the year. h) Paid up amount on 3002100
forfeited Equity shares i.e. Rs. 15010500/- which have not been
re-allotted have been shown under the head "Share Capital".
h) Contingent liabilities have not been accounted for
i) Taxes on Income
No Income Tax provision for the period has been made in the accounts
due to losses incurred during the year. Deferred tax assets/liabilities
has not been recognized considering the uncertainty of profits in
future periods.
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