Mar 31, 2014
A) Accounting Conventions
I) Basis of Preparation of Financial Statements
The financial statements of the Company are prepared under the
historical cost convention on accrual basis of accounting in all
material respects in accordance with the notified Accounting Standards
by Companies (Accounting Standards) Rules 2006 (as amended) and the
relevant Provisions of the Companies Act,1956. The accounting policies
have been consistently applied by the Company during the year.
II) Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of
contingent liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
b) Fixed Assets
I) Tangible
Tangible Assets are stated at cost net of recoverable taxes and
includes amounts added on revaluation, less accumulateddepreciation and
impairment loss, if any.Cost comprises of purchase price, interest and
other attributable cost of bringing the asset to its working conditions
for its intended use.
II) Intangible
An intangible asset is recognized, only where it is probable that
future economic benefits attributable to the asset will accrueto the
enterprise and the cost can be measured reliably.
NOTES ON ACCOUNTS
c) Depreciation
I) Tangible
Depreciation on fixed assets is provided on straight line method on
pro-rata basis at rates and in manner specified in Schedule XIV of the
Companies Act, 1956.
II) Intangible
Trade Mark cost are amortised over a period of five years.
d) Investments
Long term investments including investment in subsidiary companies are
stated at cost. Diminution in value, if any, which is ofa temporary
nature, is not provided.
e) Inventories
Finished goods are valued at cost or estimated net realizable value
whichever is lower. Raw-material and stores are valued atcost.Cost
comprises all cost of purchase, cost of conversion and other costs
incurred in bringing the inventories to their present location and
condition including excise duty payable on goods produced.Cost is
computed on Weighted Average basis.
f) Foreign Currency Transactions :
No Foreign currency transactions have been done during the year.
g) Revenue Recognition
Sales are recognized when goods are billed and are accounted net of
trade discounts. Other incomes are normally accounted on accrual basis
except in certain cases where it has been recorded on receipt basis.
h) Retirement Benefits
1) Short Term Employees Benefit
Short Term Benefits are recognized as expenditure at the undiscounted
value in the Profit and Loss Account of the year in which the related
services as rendered.
2) Post Employment Benefit
a) Defined Contribution Plans - Contributions to defined contribution
schemes such as Employees Provident fund and Family pension fund are
charged to theStatement of Profit & Loss as and when incurred.
b) Defined Benefit Plans: - None of the employee is eligible for
payment of gratuity. Leave Encashment is paid as and when due.
3) Termination Benefit
Termination Benefits are charged to Profit and Loss Account in the year
of accrual.
i) Miscellaneous Expenditure
Preliminary expenses (including IPO Expenses) are being written off at
10% on written down balance.
j) Borrowing Cost
Borrowing costs are recognized as expenses in the period in which they
are incurred, except to the extent where borrowing costs that are
directly attributable to the acquisition, construction, or production
of an asset till put for its intended use is capitalized as part of the
cost of that asset. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing cost (except as stated in notes) is charged to revenue.
k) Provisions and Contingent Liabilities
The companies recognise a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to present value and are
determined based on best estimate required to settle the obligation at
the Balance Sheet date.
A disclosure for a contingent liability is made when there is a
possible obligation or present obligations that may, but probably will
not, require an outflow of sources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
l) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the period and the credits computed in accordance
with the provisions of the Income Tax Act, 1961, and based on the
expected outcome of the assessment/appeals.
MAT credit is recognized as an asset only when and to the extent there
is convincing evidence that the company will pay normal income tax
during the specified period.
Deferred Tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originate in one year and are capable of
reversal in one or more subsequent years. Deferred Tax asset/liability
is calculated on the basis of the rate of Income Tax (excluding other
levies) applicable for the current year.
Deferred tax assets are recognized and carried forward to the extent
that there is virtual certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
m) Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or there recoverable amount of the
cash generating unit to which the asset belongs is less then its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the profit and loss account. If at the balance sheet date
there is an indication that if previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
n) Finance Cost
Finance Costs includes interest, bank charges, amortization of
ancillary costs incurred in connection with the arrangement of
borrowing and applicable gain/loss on foreign currency transactions and
translation arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Finance Costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to statement of profit and loss.
Mar 31, 2013
A) Accounting Conventions
I) Basis of Preparation of Financial Statements
The financial statements of the Company are prepared under the
historical cost convention on accrual basis of accounting in all
material respects in accordance with the notified Accounting Standards
by Companies (Accounting Standards) Rules 2006 (as amended) and the
relevant Provisions of the Companies Act,1956. The accounting policies
have been consistently applied by the Company during the year.
II) Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of
contingent liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
b) Fixed Assets
I) Tangible
Fixed Assets are stated at cost of acquisition/construction(less
Accumulated Depreciations). Cost comprises of purchase price interest
and other attributable cost of bringing the asset to its working
conditions for its intended use.
II) Intangible
Intangible assets are recorded at the consideration paid for
acquisition.
c) Depreciation
I) Tangible
Depreciation on fixed assets is provided on straight line method on
pro-rata basis at rates and in manner specified in Schedule XIV of the
Companies Act, 1956.
II) Intangible
Trade Mark cost are amortised over a period of five years.
d) Investments
Not any Investment in our books of Account during the year.
e) Inventories
Finished goods (including for trade), work-in-process, semi-finished
goods for trade, Raw materials, Stores and Spares are valued at cost or
net realizable value whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition including excise
duty payable on goods produced. Due allowance is estimated and made for
defective and obsolete items, wherever necessary, based on the past
experience of the Company. Cost is computed on Weighted Average basis.
f) Foreign Currency Translations :
Not Any Expenses booked in our books of account during the year.
g) Revenue Recognition
I) Sales
The Company recognises sale of goods when the significant risks and
rewards of ownership are transferred to the buyer, which is usually
when the goods are dispatched to customers.
II) Other Income
Other incomes are accounted on accrual basis. h) Retirement Benefits
1) Short Term Employees Benefit
Short Term Benefits are recognized as expenditure at the undiscounted
value in the Profit and Loss Account of the year in which the related
services as rendered.
2) Post Employment Benefit
a) Defined Contribution Plans - Monthly contributions to the Provident
Fund is charged to Profit and Loss Account and deposited with the
Provident Fund Authority on monthly basis.
b) Defined Benefit Plans: - None of the employee is eligible for
payment of gratuity. Leave Encashment is paid as and when due.
3) Termination Benefit
Termination Benefits are charged to Profit and Loss Account in the year
of accrual.
i) Miscellaneous Expenditure
Preliminary expenses (including IPO Expenses) are being written off
over a period of five years.
j) Borrowing Cost
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
k) Provisions and Contingent Liabilities
The companies recognise a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to present value and are
determined based on best estimate required to settle the obligation at
the Balance Sheet date. A disclosure for a contingent liability is made
when there is a possible obligation or present obligations that may,
but probably will not, require an outflow of sources. Where there is a
possible obligation or a present obligation that the likelihood of
outflow of resources is remote, no provision or disclosure is made.
l) Taxes on Income
"Tax expense comprises of current tax, deferred taxes and fringe
benefit tax. Provision for current income taxes is made on the taxable
income at the tax rate applicable to the relevant assessment year.
Fringe benefit tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act. Deferred
income taxes are recognised for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes. The
effect on deferred tax assets and liabilities of a change in tax rates
is recognised in income using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date".
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty supported by convincing
evidence that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
m) Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or there recoverable amount of the
cash generating unit to which the asset belongs is less then its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the profit and loss account. If at the balance sheet date
there is an indication that if previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
Mar 31, 2012
A) Accounting Conventions
I) Basis of Preparation of Financial Statements
The financial statements of the Company are prepared under the
historical cost convention on accrual basis of accounting in all
material respects in accordance with the notified Accounting Standards
by Companies (Accounting Standards) Rules 2006 (as amended) and the
relevant Provisions of the Companies Act,1956. The accounting policies
have been consistently applied by the Company during the year.
II) Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of
contingent liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
b) Fixed Assets
I) Tangible
Fixed Assets are stated at cost of acquisition/construction(less
Accumulated Depreciations). Cost comprises of purchase price interest
and other attributable cost of bringing the asset to its working
conditions for its intended use.
II) Intangible
Intangible assets are recorded at the consideration paid for
acquisition.
c) Depreciation
I) Tangible
Depreciation on fixed assets is provided on straight line method on
pro-rata basis at rates and in manner specified in Schedule XIV of the
Companies Act, 1956.
II) Intangible
Trade Mark cost are amortised over a period of five years.
d) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. Current
Investments are valued at Cost or Net realizable value whichever is
lower. All other investments are classified as long term Investments.
Long term investments are stated at cost of acquisition. Provision for
diminution in value of long term investments is made, only if such
decline is other than temporary.
e) Inventories
Finished goods (including for trade), work-in-process, semi-finished
goods for trade, Raw materials, Stores and Spares are valued at cost or
net realizable value whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition including excise
duty payable on goods produced. Due allowance is estimated and made for
defective and obsolete items, wherever necessary, based on the past
experience of the Company. Cost is computed on Weighted Average basis.
f) Foreign Currency Translations :
(i) All Transactions in foreign currency are recorded at the rates of
exchange prevailing as at the date of the transaction.
(ii) Monetary assets and liabilities in foreign currency, outstanding
at the close of the year, are converted in Indian currency at the
appropriate rates of exchange prevailing at the close of the year. The
resultant gain or loss is accounted for during the year
g) Revenue Recognition
I) Sales
The Company recognises sale of goods when the significant risks and
rewards of ownership are transferred to the buyer, which is usually
when the goods are dispatched to customers.
II) Other Income
Other incomes are accounted on accrual basis.
h) Retirement Benefits
1) Short Term Employees Benefit
Short Term Benefits are recognized as expenditure at the undiscounted
value in the Profit and Loss Account of the year in which the related
services as rendered.
2) Post Employment Benefit
a) Defined Contribution Plans - Monthly contributions to the Provident
Fund is charged to Profit and Loss Account and deposited with the
Provident Fund Authority on monthly basis.
b) Defined Benefit Plans :- None of the employee is eligible for
payment of gratuity. Leave Encashment is paid as and when due.
3) Termination Benefit
Termination Benefits are charged to Profit and Loss Account in the year
of accrual.
i) Miscellaneous Expenditure
Preliminary and IPO expenses are being written off over a period of
five years.
j) Borrowing Cost
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
k) Provisions and Contingent Liabilities
The companies recognise a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to present value and are
determined based on best estimate required to settle the obligation at
the Balance Sheet date. A disclosure for a contingent liability is made
when there is a possible obligation or present obligations that may,
but probably will not, require an outflow of sources. Where there is a
possible obligation or a present obligation that the likelihood of
outflow of resources is remote, no provision or disclosure is made.
l) Taxes on Income
"Tax expense comprises of current tax, deferred taxes and fringe
benefit tax. Provision for current income taxes is made on the taxable
income at the tax rate applicable to the relevant assessment year.
Fringe benefit tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act. Deferred
income taxes are recognised for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes. The
effect on deferred tax assets and liabilities of a change in tax rates
is recognised in income using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date".
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty supported by convincing
evidence that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
m) Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or there recoverable amount of the
cash generating unit to which the asset belongs is less then its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the profit and loss account. If at the balance sheet date
there is an indication that if previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.