Mar 31, 2014
A. Basis of Preparation of Financial Statements: The financial
statements have been prepared under the historical cost convention in
accordance with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956. The Company is following
accrual basis of accounting on a going concern concept. Accounting
policies are suitably disclosed as notes annexed to the Balance Sheet
and Profit & Loss Account.
All the assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI to the Companies Act, 1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalent, the
Company has not been able to clearly identify its operating cycle and
thus it is assumed to be 12 months.
B. Use of Accounting Estimates: The presentation of financial
statements requires estimates and assumptions to be made that affect
the reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual results and
estimates are recognized in the period in which the results are known /
materialized.
C. Fixed Assets:- Fixed Assets are stated at cost of acquisition
inclusive of all duties & taxes (Net of VAT), incidental expenses,
erection/commissioning expenses and all the incidental expenses related
to those fixed assets. The company is in the process of updating the
fixed assets register.
D. Depreciation:- Depreciation on fixed assets have been provided on
Straight Line method at the rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956.
E. Inventories:- Raw Materials & Stores are valued at cost, WIP are
Valued at cost and Finished Goods are values at cost or net realizable
value whichever is lower. Cost comprises of all costs of purchase,
costs of conversion and other costs incurred in bringing the inventory
to their present location and condition.
F. Impairment of Assets:- The carrying amounts of assets are reviewed
at each balance sheet date to determine if there is any indication of
impairment based on external / internal factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its
recoverable amount, which represents the greater of the net selling
price and ''value in use'' of the respective assets. The management is of
the opinion that the recoverable values of assets are greater than
carrying value, so impairment is not necessary.
G. Revenue Recognition:- Revenues and Expenditures of the Company are
reckoned in the Current year based on the principle of "when the income
& Expenditure accrue" instead of "to which period they relate".
Job work charges & Interest are accounted on accrual basis.
H. Employee Retirement Benefits and other benefits: Contributions to
defined contribution scheme such as Provident Fund, Employees Pension
Scheme, are charged to the Profit & Loss Account as incurred.
The company has not provided for Defined benefit plans like gratuity as
required under AS 15. The same are charged to Revenue in the year of
availment.
Expenses on training, recruitment are charged to revenue in the year of
incurrence.
Expenditure on leave travel concession to employees is recognized in
the year of availment due to uncertainties of accrual. Leave encashment
is provided on actual basis.
I. Borrowing Cost:- Borrowing Costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as
part of the cost of such assets. Other Costs are charged to Statement
of Profit & Loss
J. Taxes on Income:- Provision for Current Income Tax is made on
taxable income under the Income Tax Act, 1961. The Company has
unabsorbed Depreciation and carried forward losses available for set
off under the Income Tax Act, 1961. However, in view of inability to
assess future taxable income, the extent of net deferred tax assets,
which may be adjusted in the subsequent years, is not ascertainable
with virtual certainty at this stage and accordingly the same has not
been recog nized in these accounts on prudent basis.
K. Contingent Liabilities: These are disclosed by way of notes on the
Balance Sheet. Provision is made in the accounts in respect of those
contingencies, which are likely to materialize into liabilities after
the year-end, till the finalization of accounts and have material
effect on the position stated in the Balance Sheet.
L. Leases: Lease arrangements, where the risk and rewards incidental
to the ownership of asset substantially vests with the lessor are
recognized as operating lease. Assets taken on lease under operating
leases are capitalized. Lease payments under operating leases are
recognized as an expense in the Statement of Profit and Loss.
M. Contingencies and Event Occurring after the Balance Sheet Date:
There are no contingencies and events after the Balance Sheet dates
that affect the financial position of the company.
N. Net profit or loss for the period, prior period items and changes
in accounting policies:
Revenue Statement does not contain any item materially affecting and
having reference of prior period.
O. Prior period items and changes in accounting policies: Prior period
items are disclosed separately in the profit and loss account so that
their impact on current year''s profit can be known. The effect of
change ip accounting policies is recognized in the year of change.
Mar 31, 2013
1) General
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
2) Fixed Assets
All additions in fixed assets include freight, duties and incidential
expenses.
3) Depreciation
Depreciation on Fixed Assets has been provided on straight-line method
as per the classification and on the basis of Schedule-XIV to the
Companies Act, 1956. Depreciation is charged on pro-rata basis from the
date the asset is physically acquired up to the date on which such
assets is sold, discarded,demolished or destroyed.
4) Inventories
Stocks of finished goods are valued at estimated cost or net realizable
value, whichever is lower. The raw materials and other consumables on
hand have been valued at cost. However, it has been devalued in current
year.
5. Recognition of Income and Expenditure
Income and expenditure are recognized on accrual basis.
6. Gratuity
Gratuity is charged to revenue on the basis of provisions made as per
the Payment of Gratuity Act. No actuarial valuations were conducted on
this account. The company has not followed AS 15 - accounting for
gratuity. The amount is not quantified.
Mar 31, 2012
1) General
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
2) Fixed Assets
All additions in fixed assets include fre.ght, duties and incidental
expenses.
3) Depreciation
Depreciation on Fixed Assets has been provided on straight-line method
as per the classification and on the basis of Schedule-XIV to the
Companies Act, 1956. Depreciation is charged on pro-rata basis from the
date the asset is physically acquired up to the date on which such
assets is sold, discarded,demolished or destroyed.
4) Inventories
Stocks of finished goods are valued at estimated cost or net realizable
value, whichever is lower. The raw materials and other consumables on
hand have been valued at cost. However, it has been devalued in current
year.
5. Recognition of Income and Expenditure
Income and expenditure are recognized on accrual basis.
6. Gratuity
Gratuity is charged to revenue on the basis of provisions made as per
the Payment of Gratuity Act. No actuarial valuations were conducted on
this account. The company has not followed AS 15 - accounting for
gratuity. The amount is not quantified.
Mar 31, 2010
1) General
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
2) Fixed Assets
In the financial year 2007-08, fixed Assets were revalued as per
approved valuers certificate .All additions in fixed assets include
freight, duties and incidential expenses.
3) Depreciation
Depreciation on Fixed Assets has been provided on straight-line method
as per the classification and on the basis of Schedule-XIV to the
Companies Act, 1956. Depreciation is charged on pro-rata basis from the
date the asset is physically acquired up to the date on which such
assets is sold, discarded, demolished or destroyed.
4) Inventories
Stocks of finished goods are valued at estimated cost or net realizable
value, whichever is lower. The raw materials and other consumables on
hand have been valued at cost.
5. Recognition of Income and Expenditure
Income and expenditure are recognized on accrual basis.
6. Gratuity
Gratuity is charged to revenue on the basis of provisions made as per
the Payment of Gratuity Act. The company has not followed AS 15 -
accounting for gratuity. The amount is not quantified.
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