Mar 31, 2015
A. Conventions
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian - GAAP). The
Company has prepared these financial statements to comply in all
material respects with the accounting standards notified under section
133 of the Companies Act 2013, read together with paragraph 7 of the
Companies (Accounts) Rules 2014. The financial statements have been
prepared on an accrual basis and under the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year
b. Tangible Assets
Tangible fixed assets are stated at cost net of cenvat credit and other
duty drawbacks less accumulated depreciation and impairment losses, if
any. The Cost comprises purchase price, borrowing cost if
capitalization criteria are met and directly attributable cost of
bringing the asset to its working condition for its intended use. Any
trade discount and rebate are deducted in arriving at the purchase
price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the year during which
such expenses are incurred.
c. Intangible Assets
Intangible Assets are stated at original cost. Additions to Intangible
Assets are recognized in accordance with the recognition and
measurement criteria as provided in Accounting Standard 26 issued by
Institute of Chartered Accountants of India.
d. Depreciation on Tangible Assets
Depreciation on tangible fixed assets is calculated on a straight-line
basis using the rates arrived at, based on useful lives estimated by
the Management, which coincide with the lives prescribed under Schedule
II to the Companies Act, 2013. The Company has used the following
useful lives to provide depreciation on its fixed assets.
Particulars Useful Life( Years) Schedule of CA 2013
Office Equipment 5.00 5.00
Computers 3.00 3.00
Furniture & Fixtures 10.00 10.00
Vehicle 8.00 8.00
Rental Stock 5.00 5.00
e. Amortization of Intangible Assets
Amortization is provided on straight line method based on the best
estimates of useful lives of the assets in accordance with Accounting
Standard 26 as notified by Ministry of Corporate affairs. Software
capitalised and depreciated in the earlier years are now written off.
f. Borrowing Costs
Borrowing costs that are attributable to acquisition, construction or
production of a qualifying asset are capitalized as a part of cost of
such asset. All other borrowing costs are recognized as an expense in
the year in which they are incurred.
g. Impairment of Assets
All fixed assets are assessed for any indication of impairment at each
balance sheet date based on internal / external factors. On any such
indication the impairment loss (being the excess of carrying value over
the recoverable value of the asset) is immediately charged to the
Profit and Loss Account. The recoverable amount is the greater of the
asset's net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value
at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
h. 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.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
i. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is computed with issues being made on FIFO basis.
j. Foreign exchange transaction
Foreign currency transactions are recorded in the reporting currency,
at the exchange rates prevailing on the date of the transaction.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
Monetary assets and monetary liabilities other than long term are
translated at the exchange rate prevailing on the balance sheet date
and the resultant gain/loss is recognised in the financial statements.
k. Revenue / Expenditure recognition
Sales of products are recognised on despatch to customers and are
exclusive of trade discounts, sales tax and other taxes. Income
accruing in the accounting year and ascertainable/realisable with
reasonable certainty on the date of financial statements is taken into
account.
Revenue from Installation services are recognised on accrual basis,
when Installation is completed and it is probable that an economic
benefit will be received which can be quantified reliably. Revenues
from AMC Service are recognised on a time proportion basis.
Expenses accruing in the accounting year and ascertainable with
reasonable accuracy on the date of financial statement are provided in
the accounts.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend is recognised when the shareholders' right to receive payment
is established by the balance sheet date.
l. Retirement benefits to employees
i. Defined Contribution Plans
Contributions paid/payable to defined contribution plans comprising of
provident fund and pension fund, employees state insurance etc., are
charged to Statement of profit and loss account on accrual basis.
ii. Defined Benefit Plan
Gratuity for employees is as at the Balance Sheet date is provided for
based on the actuarial valuation, based on Projected Unit Credit Method
at the balance sheet date, carried out by an independent actuary.
Actuarial Gains and Losses comprise experience adjustments and the
effect of changes in the actuarial assumptions and are recognised
immediately in the Statement of Profit and Loss Account as income or
expense.
iii. Other Long term employee benefits
Other Long term employee benefits comprise of Compensated absences
which are not expected to occur within twelve months after the end of
the period in which the employee renders the related services are
recognised as a liability at the present value of the defined benefit
obligation at the balance sheet date based on actuarial valuation
carried out at each balance sheet date. Actuarial gains and losses are
recognised immediately in the profit and loss account as income or
expense.
iv. Short term employee benefits
Short term employee benefits, including accumulated compensated
absences as at the Balance Sheet date, are recognized as an expense as
per Company's schemes based on the expected obligation on an
undiscounted basis.
m. Taxes on Income
Provision for income tax comprises current taxes and deferred taxes.
Current tax is determined on the amount of tax payable in respect of
taxable income for the year.
Deferred tax is recognized on timing differences being the differences
between taxable income and accounting income that originate in one year
and are capable of reversal in one or more subsequent years. Deferred
tax assets and liabilities are measured on the timing differences
applying the tax rate and tax laws that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax asset is recognised only to the extent that there is
reasonable/virtual certainty supported by convincing evidence that
sufficient future tax income will be available against which such
deferred tax assets can be realized.
n. Provisions
A provision is recognized when an enterprise has a present obligation
as a result of a 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, other than employee
benefits, are not discounted to their present value and are determined
based on management estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current management estimates.
o. Leases
Assets acquired under Leases, where the Company has substantially all
the risks and rewards of ownership, are classified as finance leases.
Such leases are capitalised at the inception of the lease at lower of
the fair value or the present value of the minimum lease payments and a
liability is created for an equivalent amount. Each lease rental paid
is allocated between the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the outstanding
liability for each period.
Assets acquired as leases, where a significant portion of the risk and
rewards of ownership are retained by the lessor, are classified as
operating leases. Lease rentals are charged to the Statement of Profit
and Loss Account on accrual basis as per terms of the lease.
p. Warranty
The company periodically assesses and provides for the estimated
liability on warranty given on sale of its products based on past
experience of claims.
q. Earnings / (Loss) per share
The basic earnings / (loss) per share are computed by dividing the net
profit/(loss) after tax for the period by the weighted average number
of equity shares outstanding during the period. Diluted earnings /
(loss) per share, if any are computed using the weighted average number
of equity shares and dilutive potential equity share outstanding during
the period except when the results would be anti-dilutive.
r. Contingent Liability
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognised
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measure reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
s. Cash and Cash Equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short term investment with an
original maturity of three months or less.
Mar 31, 2014
A. Conventions
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian  GAAP). The
financial statements have been preapared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956 read with General Circular 8/2014
dated April 4 , 2014 issued by the Ministry of Corporate Affairs. The
financial statements have been prepared under the historical cost
convention on an accrual basis. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the results of operations during the
reporting period. Although these estimates are based upon management''s
best knowledge of Current events and actions, actual results could
differ from these estimates.
c. Tangible Assets
Tangible fixed assets are stated at cost net of cenvat credit and other
duty drawbacks less accumulated depreciation and impairment losses, if
any. The Cost comprises purchase price, borrowing cost if
capitalization criteria are met and directly attributable cost of
bringing the asset to its working condition for its intended use. Any
trade discount and rebate are deducted in arriving at the purchase
price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the year during which
such expenses are incurred.
d. Intangible Assets
Intangible Assets are stated at original cost. Additions to Intangible
Assets are recognized in accordance with the recognition and
measurement criteria as provided in Accounting Standard 26 issued by
Institute of Chartered Accountants of India.
e. Depreciation on Tangible Assets
Depreciation is provided on straight line method at the rates based on
the estimated useful lives of the assets or those prescribed under
Schedule XIV of the Companies Act 1956, whichever is higher.
f. Amortization of Intangible Assets
Amortization is provided on straight line method based on the best
estimates of useful lives of the assets in accordance with Accounting
Standard 26 issued by Institute of Chartered Accountants of India.
Software capitalised and depreciated in the earlier years are now
written off.
g. Borrowing Costs
Borrowing costs that are attributable to acquisition, construction or
production of a qualifying asset are capitalized as a part of cost of
such asset. All other borrowing costs are recognized as an expense in
the year in which they are incurred.
h. Impairment of Assets
All fixed assets are assessed for any indication of impairment at each
balance sheet date based on internal / external factors. On any such
indication the impairment loss (being the excess of carrying value over
the recoverable value of the asset) is immediately charged to the
Statement of Profit and Loss. The recoverable amount is the greater of
the asset''s net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
i. 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.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
j. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is computed with issues being made on FIFO basis.
k. Foreign exchange transaction
Foreign currency transactions are recorded in the reporting currency,
at the exchange rates prevailing on the date of the transaction.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
Monetary assets and monetary liabilities other than long term are
translated at the exchange rate prevailing on the balance sheet date
and the resultant gain/loss is recognised in the financial statements.
l. Revenue / Expenditure recognition
Sales of products are recognised on despatch to customers and are
exclusive of trade discounts, sales tax and other taxes. Income
accruing in the accounting year and ascertainable/realisable with
reasonable certainty on the date of financial statements is taken into
account.
Revenue from Installation services are recognised on accrual basis,
when Installation is completed and it is probable that an economic
benefit will be received which can be quantified reliably.
Revenues from AMC Service are recognised on a time proportion basis.
Expenses accruing in the accounting year and ascertainable with
reasonable accuracy on the date of financial statement are provided in
the accounts.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend is recognised when the shareholders'' right to receive payment
is established by the balance sheet date.
m. Retirement benefits to employees
i) Defined Contribution Plans
Contributions paid/payable to defined contribution plans comprising of
provident fund and pension fund, employees state insurance etc., are
charged to Statement of profit and loss account on accrual basis.
ii) Defined Benefit Plan
Gratuity for employees is as at the Balance Sheet date is provided for
based on the actuarial valuation, based on Projected Unit Credit Method
at the balance sheet date, carried out by an independent actuary.
Actuarial Gains and Losses comprise experience adjustments and the
effect of changes in the actuarial assumptions and are recognised
immediately in the Statement of Profit and Loss Account as income or
expense.
iii) Other Long term employee benefits
Other Long term employee benefits comprise of Compensated absences
which are not expected to occur within twelve months after the end of
the period in which the employee renders the related services are
recognised as a liability at the present value of the defined benefit
obligation at the balance sheet date based on actuarial valuation
carried out at each balance sheet date. Actuarial gains and losses are
recognised immediately in the profit and loss account as income or
expense.
n. Taxes on Income
Provision for income tax comprises current taxes and deferred taxes.
Current tax is determined on the amount of tax payable in respect of
taxable income for the year.
Deferred tax is recognized on timing differences being the differences
between taxable income and accounting income that originate in one year
and are capable of reversal in one or more subsequent years. Deferred
tax assets and liabilities are measured on the timing differences
applying the tax rate and tax laws that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax asset is recognised only to the extent that there is
reasonable/virtual certainty supported by convincing evidence that
sufficient future tax income will be available against which such
deferred tax assets can be realized.
o. Provisions
A provision is recognized when an enterprise has a present obligation
as a result of a 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, other than employee
benefits, are not discounted to their present value and are determined
based on management estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current management estimates.
p. Leases
Assets acquired under Leases, where the Company has substantially all
the risks and rewards of ownership, are classified as finance leases.
Such leases are capitalised at the inception of the lease at lower of
the fair value or the present value of the minimum lease payments and a
liability is created for an equivalent amount. Each lease rental paid
is allocated between the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the outstanding
liability for each period.
Assets acquired as leases, where a significant portion of the risk and
rewards of ownership are retained by the lessor, are classified as
operating leases. Lease rentals are charged to the Statement of Profit
and Loss Account on accrual basis as per terms of the lease.
q. Warranty
The company periodically assesses and provides for the estimated
liability on warranty given on sale of its products based on past
experience of claims.
r. Earnings / (Loss) per share
The basic earnings / (loss) per share are computed by dividing the net
profit/(loss) after tax for the period by the weighted average number
of equity shares outstanding during the period. Diluted earnings /
(loss) per share, if any are computed using the weighted average number
of equity shares and dilutive potential equity share outstanding during
the period except when the results would be anti-dilutive.
s. Contingent Liability
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognised
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measure reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
t. Cash and Cash Equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short term investment with an
original maturity of three months or less.
Terms of repayment:
As per the terms and conditions of agreements entered between the
Company and HDFC Bank for the car loan availed, the loan is to be
repaid on a monthly basis by September 2018.
As per the terms and conditions of agreements entered between the
Company and its associates, Interest free unsecured loan availed from
associates are repayable after 31st March 2017.
Mar 31, 2012
A. Conventions
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis
except in case of assets for which provision for impairment is made and
revaluation is carried out. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
During the year ended March 31, 2012, the Revised Schedule VI notified
under the Companies Act 1956, has become applicable to the Company, for
preparation and presentation of its financial statements. The adoption
of Revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements. The Company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
b. Tangible Assets
Tangible Assets in me Gross Block are stated at original cost.
Additions to Tangible Assets are stated at cost of acquisition and all
costs directly attributable to the acquisition and installation up to
the date the asset is ready for its intended use are capitalised.
c. Intangible Assets
Intangible Assets are stated at original cost. Additions to Intangible
Assets are recognized in accordance with the recognition and
measurement criteria as provided in Accounting Standard 26 issued by
Institute of Chartered Accountants of India.
d. Depreciation on Tangible Assets
Depreciation is provided on straight line method at the rates based on
the estimated useful lives of the assets or those prescribed under
Schedule XIV of the Companies Act 1956, whichever is higher. Leasehold
improvements are depreciated over shorter of estimated useful lives or
Lease period.
e. Amortization of Intangible Assets
Amortization is provided on straight line method based on the best
estimates of useful lives of the assets in accordance with Accounting
Standard 26 issued by Institute of Chartered Accountants of India.
f. Borrowing Costs
Borrowing costs that are attributable to acquisition construction or
production of a qualifying asset are capitalized as a part of cost of
such asset. All other borrowing costs are recognized as an expense in
the year in which they are incurred.
g. Impairment of Assets
All fixed assets are assessed for any indication of impairment at each
balance sheet date based on internal/external factors. On any such
indication the impairment loss (being the excess of carrying value over
the recoverable value of the asset) is immediately charged to the
Profit and Loss Account. The recoverable amount is the greater of the
asset's net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value
at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
h. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Long-term
investments are stated at cost except where there is a diminution in
value other than temporary, in which case the carrying value is reduced
to recognize the decline. Current investments are valued at lower of
cost and fair value determined on an individual investment basis. i.
Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is computed with issues being made on FIFO basis.
j. Foreign exchange transaction
Foreign currency transactions are recorded in the reporting currency,
at the exchange rates prevailing on the date of the transaction Current
assets and current liabilities are translated at the exchange rate
prevailing on the balance sheet date and the resultant gain/loss is
recognised in the financial statements.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
Monetary assets and monetary liabilities other than long term are
translated at the exchange rate prevailing on the balance sheet date
and the resultant gain/loss is recognised in the financial statements.
k. Revenue/Expenditure recognition
Sales of products are recognised on despatch to customers and are
exclusive of trade discounts, sales tax and other taxes. Income
accruing in the accounting year and ascertainable/realisable with
reasonable certainty on the date of financial statements is taken into
account.
Revenue from Installation services are recognised on accrual basis,
when Installation is completed and it is probable that an economic
benefit will be received which can be quantified reliably.
Revenues from AMC Service are recognised on a time proportion basis.
Expenses accruing in the accounting year and ascertainable with
reasonable accuracy on the date of financial statement are provided in
the accounts.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend is recognised when the shareholders' right to receive payment
is established by the balance sheet date
l. Retirement benefits to employees
i. Defined Contribution Plans
Contributions paid/payable to defined contribution plans comprising of
provident fund and pension fund, employees state insurance etc., are
charged to profit and loss account on accrual basis.
ii. Defined Benefit Plan
Gratuity for employees is as at the Balance Sheet date is provided for
based on the actuarial valuation, based on Projected Unit Credit Method
at the balance sheet date, carried out by an independent actuary.
Actuarial Gains and Losses comprise experience adjustments and the
effect of changes in the actuarial assumptions and are recognised
immediately in the Profit and Loss Account as income or expense.
iii. Other Long term employee benefits
Other Long term employee benefits comprise of Compensated absences
which are not expected to occur within twelve months after the end of
the period in which the employee renders the related services are
recognised as a liability at the present value of the defined benefit
obligation at the balance sheet date based on actuarial valuation
carried out at each balance sheet date. Actuarial gains and losses are
recognised immediately in the profit and loss account as income or
expense.
iv. Short term employee benefits
Short term employee benefits, including accumulated compensated
absences as at the Balance Sheet date, are recognized as an expense as
per Company's schemes based on the expected obligation on an
undiscounted basis.
m. Taxes on Income
Provision for income tax comprises current taxes and deferred taxes.
Current tax is determined on the amount of tax payable in respect of
taxable income for the year.
Deferred tax is recognized on timing differences being the differences
between taxable income and accounting income that originate in one year
and are capable of reversal in one or more subsequent years.
Deferred tax assets and liabilities are measured on the timing
differences applying the tax rate and tax laws that have been enacted
or substantively enacted by the balance sheet date.
Deferred tax assets recognised only to the extent that there is
reasonable/virtual certainty supported by convincing evidence that
sufficient future tax income will be available against which such
deferred tax assets can be realized.
n. Provisions
A provision is recognized when an enterprise has a present obligation
as a result of a 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, other than employee
benefits, are not discounted to their present value and are determined
based on management estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current management estimates.
o. Leases
Assets acquired under Leases, where the Company has substantially all
the risks and rewards of ownership, are classified as finance leases.
Such leases are capitalised at the inception of the lease at lower of
the fair value or the present value of the minimum lease payments and a
liability is created for an equivalent amount. Each lease rental paid
is allocated between the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the outstanding
liability for each period.
Assets acquired as leases, where a significant portion of the risk and
rewards of ownership are retained by the lessor, are classified as
operating leases. Lease rentals are charged to the Profit and Loss
Account on accrual basis as per terms of the lease.
p. Warranty
The company periodically assesses and provides for the estimated
liability on warranty given on sale of its products based on past
experience of claims.
q. Earnings/(Loss) per share
The basic earnings/(loss) per share are computed by dividing the net
profit/(loss) after tax for the period by the weighted average number
of equity shares outstanding during the period. Diluted earnings/(loss)
per share, if any are computed-using the weighted average number of
equity shares and dilutive potential equity share outstanding during
the period except when the results would be anti-dilutive.
Mar 31, 2011
1. Accounting Assumption
The financial Statements are prepared under historical cost convention
in accordance with the generally Accepted Accounting Principles in
India, the Accounting Standards notified under section 211 (3C) of The
Companies Act.1956 of India (the Act') and other relevant provisions of
the Act.
2. Fixed Assets
Fixed Assets in the Gross Block are stated at original cost. Additions
to Fixed Assets are stated at cost of acquisition and all costs
relating to the acquisition and installation up to the date the asset
is put into use are capitalised.
3. Depreciation
Depreciation is provided on straight line method at the rates based on
the estimated useful lives of the assets or those prescribed under
Schedule XIV of the Companies Act 1956, whichever is higher.
Leasehold improvements are amortized over shorter of estimated useful
lives or Lease period.
4. Borrowing Costs
Borrowing costs that are attributable to acquisition construction or
production of a qualifying asset are capitalized as a part of cost of
such asset. All other borrowing costs are recognized as an expense in
the year in which they are incurred.
5. Impairment of Assets
All fixed assets are assessed for any indication of impairment at each
balance sheet date based on internal / external factors. On any such
indication the impairment loss (being the excess of carrying value over
the recoverable value of the asset) is immediately charged to the
Profit and Loss Account. The recoverable amount is the greater of the
asset's net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value
at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
6. Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Long-term
investments are stated at cost except where there is a diminution in
value other than temporary, in which case the carrying value is reduced
to recognize the decline. Current investments are valued at lower of
cost and fair value determined on an individual investment basis.
7. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is computed with issues being made on FIFO basis.
The stock on hire, under hire purchase agreements are shown at
agreement value, less amount received.
8. Foreign exchange transaction
Foreign currency transactions are recorded in the reporting currency,
at the exchange rates prevailing on the date of the transaction.
Current assets and current liabilities are translated at the exchange
rate prevailing on the balance sheet date and the resultant gain / loss
is recognised in the financial statements.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
Monetary assets and monetary liabilities other than long term are
translated at the exchange rate prevailing on the balance sheet date
and the resultant gain/loss is recognised in the financial statements.
9. Revenue/Expenditure recognition
Sales of products are recognised on despatch to customers and are
exclusive of trade discounts, sales tax and other taxes. Income
accruing in the accounting year and ascertainable/realisable with
reasonable certainty on the date of financial statements is taken into
account.
Revenue from Installation services are recognised on accrual basis,
when Installation is completed and it is probable that an economic
benefit will be received which can be quantified reliably.
Revenues from AMC Service are recognised on atime proportion basis.
Expenses accruing in the accounting year and ascertainable with
reasonable accuracy on the date of financial statement are provided in
the accounts.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable,
Dividend is recognised when the shareholders' right to receive payment
is established by the balance sheet date. .
10. Retirement benefits to employees
i. Defined Contribution Plans
Contributions paid/payable to defined contribution plans comprising of
provident fund and pension fund, employees state insurance etc., are
charged to profit and loss account on accrual basis.
ii. Defined Benefit Plan
Gratuity for employees is generally covered under a scheme of Life
Insurance Corporation of India and contributions in respect of such
scheme are recognised in the Profit and Loss Account. The liability as
at the Balance Sheet date is provided for based on the actuarial
valuation, based on Projected Unit Credit Method at the balance sheet
date, carried out by an independent actuary. Actuarial Gains and
Losses comprise experience adjustments and the effect of changes in the
actuarial assumptions and are recognised immediately in the Profit and
Loss Account as income or expense.
iii. Other Long term employee benefits
Other Long term employee benefits comprise of Compensated absences
which are not expected to occur within twelve months after the end of
the period in which the employee renders the related services are
recognised as a liability at the present value of the defined benefit
obligation at the balance sheet date based on actuarial valuation
carried out at each balance sheet date. Actuarial gains and losses are
recognised immediately in the profit and loss account as income or
expense.
iv. Short term employee benefits
Short term employee benefits, including accumulated compensated
absences as at the Balance Sheet date, are recognized as an expense as
per Company's schemes based on the expected obligation on an
undiscounted basis.
11. Taxes on Income
Provision for income tax comprises current taxes and deferred taxes.
Current tax is determined on the amount of tax payable in respect of
taxable income for the year.
Deferred tax is recognized on timing differences being the differences
between taxable income and accounting income that originate in one year
and are capable of reversal in one or more subsequent years Deferred
tax assets and liabilities are measured on the timing differences
applying the tax rate and tax laws that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable/virtual certainty supported by convincing evidence that
sufficient future tax income will be available against which such
deferred tax assets can be real ized.
12. Impairment of Assets
Consideration is given at the balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's fixed assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of an asset exceeds the recoverable
amount. The recoverable amount is the greater Of the net selling price
and value in use.
13. Provisions
A provision is recognized when an enterprise has a present obligation
as a result of a 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, other than employee
benefits, are not discounted to their present value and are determined
based on management estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current management estimates.
14. Leases
Assets acquired under Leases, where the Company has substantially all
the risks and rewards of ownership, are classified as finance leases.
Such leases are capitalised at the inception of the lease at lower of
the fair value or the present value of the minimum lease payments and a
liability is created for an equivalent amount. Each lease rental paid
is allocated between the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the outstanding
liability for each period.
Assets acquired as leases, where a significant portion of the risk and
rewards of ownership are retained by the lessor, are classified as
operating leases. Lease rentals are charged to the Profit and Loss
Account on accrual basis as per terms of the lease.
15. Warranty
The company periodically assesses and provides for the estimated
liability on warranty given on sale of its products based on past
experience of claims.
16. Earnings/(Loss) per share
The basic earnings / (loss) per share are computed by dividing the net
profit/(loss) after tax for the period by the weighted average number
of equity shares outstanding during the period. Diluted earnings /
(loss) per share, if any are computed using the weighted average number
of equity shares and dilutive potential equity share outstanding during
the period except when the results would be anti-dilutive.
Mar 31, 2010
1. Conventions:
The Financial Statements are prepared under historical cost conventions
in accordance with the applicable Accounting Standards issued by the
Institute of Chartered Accountants of India and relevant disclosure
requirements of the Companies Act, 1956.
2. Fixed Assets and Depreciation:
I. . Fixed Assets in the Gross Block are stated at original cost.
Additions to Fixed Assets are stated at cost of acquisition and all
costs relating to the acquisition and installation up to the date the
asset is put into use are capitalised.
ii. Depreciation has been charged under the Straight Line Method (SLM)
at the rates prescribed in Schedule XIV of the Companies Act, 1956.
3. Investments
Long term investments are stated at cost. Provision is made when
permanent diminution in value has arisen in the opinion of the
management.
4. Inventories
i. Inventories are valued at lower of cost or net realizable value.
Cost is computed with issues being made on FIFO basis.
ii. The stock on hire, under hire purchase agreements are shown at
agreement value, less amount received.
5. Foreign exchange transaction
i. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing at the time of transaction.
ii. Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the profit and loss
account.
6. Revenue / Expenditure recognition
Sales of products are recognised on despatch to customers and are
exclusive of trade discounts, sales tax and other taxes. Income
accruing in the accounting year and ascertainable/realisable with
reasonable certainty on the date of financial statements is taken into
account.
Revenue from Installation services are recognised on accrual basis,
when Installation is completed and it is probable that an economic
benefit will be received which can be quantified reliably.
Revenues from AMC Service are recognised on atime proportion basis.
Expenses accruing in the accounting year and ascertainable with
reasonable accuracy on the date of financial statement are provided in
the accounts.
7. Retirement benefits to employees
i. Companys contribution to recognised funds, such as Provident Fund,
Employees State Insurance, etc. are charged to Profit and Loss Account.
ii. Liability on the basis of actuarial valuation by an independent
actuary has been provided. iii. Leave encashment is provided on the
basis of actuarial valuation atthe Balance Sheet date.
8. Warranty
The company periodically assesses and provides for the estimated
liability on warranty given on sale of its products based on past
performance of such products.
9. Taxes on Income
Current tax is determined in accordance with the provisions of the
Income Tax Act, 1961.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income ievied by same governing
taxation laws. Deferred tax assets are recognised only to the extent
that there js reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realised. In situations where the Company has unabsorbed depreciation
or carry forward tax losses, all deferred tax assets are recognised
only if there is virtual certainty supported by convincing evidence
that they can be realised against future taxable profits.
10. Impairment of Assets
Consideration is given at the balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Companys fixed assets. If any indication exists, an assets
recoverable amount is estimated. An impairment loss is recognised
whenever the carrying amount of an asset exceeds the recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use.
11. Operating Leases:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Lease payments under operating lease are recognised
as an expense in the Profit and Loss Account on straight line basis
over the lease term.
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