Mar 31, 2015
1 Method of Accounting :
The Company follows mercantile system of accounting and recognizes
income and expenditure on an accrual basis. Financial Statements are
prepared under historical cost convention, in accordance with the
Generally Accepted Accounting Principles in India (GAAP), Accounting
Standards specified in Section 133 of the Companies Act, 2013 read with
Rule 7 of the Companies (Accounts) Rules, 2014. The significant
accounting policies followed by the Company are set out below.
Management has made certain estimates and assumptions in conformity
with the GAAP in the preparation of these financial statements, which
are reflected in the preparation of these financial statements.
Difference between the actual results and estimates are recognized in
the year in which the results are known.
2 Fixed Assets :
Fixed assets are carried at cost of acquisition less accumulated
depreciation. Cost includes all expenses related to acquisition and
installation of such assets.
3 Impairment of Fixed Assets
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, such assets are subject to a
test of recoverability, based on discounted cash flows expected from
use or disposal thereof. If the assets are impaired, loss on the same
is recognized.
4 Depreciation :
Depreciation for the year is provided on Straight Line Method based on
useful life as specified in Schedule II to the Companies Act, 2013 on
pro-rata basis and useful life is as under :
5 Investments :
Investment in shares of the Subsidiaries registered outside India, are
stated at cost by converting at the rate of exchange prevailing at the
time of setting up the Subsidiary and date of remittance of funds in
case of additional investment.
Long term investments are stated at cost less other than temporary
diminution in value, if any. Current investments are stated at the
lower of cost and fair value, determined on an individual investment
basis.
6 Revenue Recognition :
a) Revenue is recognized based on the nature of activity when
consideration can be reasonably measured and their exists reasonable
certainty of its recovery.
i) Income from sale of traded goods is recognized on transfer of all
significant risk and ownership of the goods on to the customers, which
is generally on dispatch of goods.
ii) In cases where trade contracts provide for crystallization of price
or for price adjustment on a subsequent date, corresponding purchase
and sales are recognized on the basis of expected settlement price and
any differential determined subsequently is accounted for at the time
of final settlement.
b) Income from sale of electricity is recognized as per the terms and
conditions of the agreement with the Customer. Renewable Energy Credit
Income is recognized when realized.
c) Interest income is recognized on a time proportion basis taking into
account amount outstanding and applicable interest rate.
7 Employee Benefits :
i) Short Term Employee Benefits (i.e. those payable within one year)
are recognized in the period in which the employee service is rendered.
ii) Post employment and long term employee benefits are recognized as
an expense in the Statement of Profit and Loss for the year in which
the employees has rendered services and other statutory requirements
are met. Provision for gratuity is made based on actuarial valuation.
The expense will be recognized at the present value of the amount
payable determined using actuarial valuation techniques. Actuarial
gains or losses in respect of post employment and other long term
benefits are charged to the Statement of Profit and Loss.
(iii) The eligible employees of the Company are entitled to receive
benefits in respect of provident fund, a defined contribution plan, in
which both employees and the Company make monthly contributions at a
specified percentage of the covered employees'' salary. The Company
recognizes the same as an expense in the year incurred.
(iv) As per the Guidance Note on "Accounting for Employee Share- Based
Payments'' Compensation Cost, ESOP to employees is accounted on
Intrinsic Value Method. Intrinsic value is the amount by which the
quoted market price of the underlying shares on the grant date exceeds
the exercise price of the options. Accordingly, the compensation cost
is amortized over the vesting period.
8 Inventories
Inventory is valued at cost or net realizable value whichever is lower.
Cost includes all non refundable taxes and expenses incurred to bring
the inventory to the present location. Cost is determined using the
FIFO (first-in-first-out) method of valuation.
9 Borrowing Cost :
Borrowing costs directly attributable to acquisition and construction
of capital assets are capitalized till the asset is ready for use. All
other borrowing costs are recognized as expenditure in the period for
which they pertain to.
10 Tax on Income :
a) Tax expense comprises both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income tax payable in respect of the taxable income for
the reporting period.
b) Deferred tax represents the effect of timing differences between
taxable income and accounting income for the reporting period that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each Balance Sheet date to reassess
realization.
11 Provisions & Contingent Liabilities :
Provisions are recognized when the company has a legal and constructive
present obligation as a result of a past event, for which it is
probable that outflow of resources will be required and a reliable
estimate can be made of the amount of the obligation. Contingent
liabilities are disclosed when there is a possible obligation that may
result in an outflow of resources. Contingent assets are neither
recognized nor disclosed.
12 Foreign Exchange Transactions :
Transactions in foreign currency are recorded at exchange rates
prevailing on the dates of respective transactions. The difference in
translation and realized gains and losses on foreign exchange
transactions are recognized in the Profit and Loss Account. Premium/
Discount in respect of forward contracts is accounted over the period
of contract.
Forward contracts outstanding as at the balance sheet date are stated
at exchange rates prevailing at the reporting date and any gains or
losses are recognized in the Statement of Profit and Loss. Profit or
loss arising on cancellation or enforcement/exercise of forward
exchange is recognized in the Statement of Profit and Loss in the
period of such cancellation or enforcement/exercise
13 Leases:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership over the lease term are classified as
operating lease. Lease payments for assets taken on operating lease are
recognized as an expense in the Profit and Loss Account on a
straight-line basis over the lease term.
Mar 31, 2014
1. Method of Accounting
The Company follows mercantile system of accounting and recognizes
income and expenditure on an accrual basis. Financial Statements are
prepared under historical cost convention, in accordance with the
Generally Accepted Accounting Principles in India (GAAP), Accounting
Standards specified in the Companies (Accounting Standards) Rules, 2006
notified by the Central Government in terms of Section 211(3C) of the
Companies Act, 1956 read with general circular 15/2013 dated September
13, 2013 of the Ministry of Corporate Affairs in respect of Section 133
of the Companies Act, 2013 to the extent applicable. The significant
accounting policies followed by the Company are set out below.
Management has made certain estimates and assumptions in conformity
with the GAAP in the preparation of these financial statements, which
are reflected in the preparation of these financial statements.
Difference between the actual results and estimates are recognised in
the year in which the results are known.
2. Fixed Assets
Fixed assets are carried at cost of acquisition less accumulated
depreciation. Cost includes all expenses related to acquisition and
installation of such assets.
3. Impairment of Fixed Assets
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, such assets are subject to a
test of recoverability, based on discounted cash flows expected from
use or disposal thereof. If the assets are impaired, loss on the same
is recognized.
4. Depreciation
Depreciation for the year is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956 on pro- rata
basis.
5. Investments :
Investments are stated at cost less provision for diminution in the
value of investment of permanent nature, if any. Unquoted investments
are valued on the basis of book value as per audited balance sheet of
the investee company. Investment in shares of the Subsidiaries
registered outside India, are stated at cost by converting at the rate
of exchange prevailing at the time of setting up the Subsidiary and
date of remittance of funds in case of additional investment.
Long term investments are stated at cost less other than temporary
diminution in value, if any. Current investments are stated at the
lower of cost and fair value, determined on an individual investment
basis.
6. Revenue Recognition :
a) Revenue is recognised based on the nature of activity when
consideration can be reasonably measured and their exists reasonable
certainty of its recovery.
i) Income from sale of traded goods is recognized on transfer of all
significant risk and ownership of the goods on to the customers, which
is generally on dispatch of goods.
ii) In respect of back-to-back trade arrangements, sales are booked
when the goods are dispatched by the trading partner to the customer
and are adjusted for the trade margin accruing to the Company.
iii) In cases where trade contracts provide for crystallization of
price or for price adjustment on a subsequent date, corresponding
purchase and sales are recognized on the basis of expected settlement
price and any differential determined subsequently is accounted for at
the time of final settlement.
b) Income from sale of electricity is recognized as per the terms and
conditions of the agreement with the Customer. Credit Income in Power
is recognized when realized.
c) Interest income is recognized on a time proportion basis taking into
account amount outstanding and applicable interest rate.
7. Employee Benefits :
i) Short Term Employee Benefits (i.e. those payable within one year)
are recognized in the period in which the employee service is rendered.
ii) Post employment and long term employee benefits are recognized as
an expense in the Statement of Profit and Loss for the year in which
the employees has rendered services and other statutory requirements
are met. Provision for gratuity is made based on actuarial valuation.
The expense will be recognized at the present value of the amount
payable determined using actuarial valuation techniques. Actuarial
gains or losses in respect of post employment and other long term
benefits are charged to the Statement of Profit and Loss.
(iii) The eligible employees of the Company are entitled to receive
benefits in respect of provident fund, a defined contribution plan, in
which both employees and the Company make monthly contributions at a
specified percentage of the covered employees'' salary. The Company
recognises the same as an expense in the year incurred.
8. Inventories :
Inventory is valued at cost or net realizable value whichever is lower.
Cost includes all non refundable taxes and expenses incurred to bring
the inventory to the present location. Cost is determined using the
FIFO (first-in-first-out) method of valuation.
9. Borrowing Cost :
Borrowing costs directly attributable to acquisition and construction
of capital assets are capitalized till the asset is ready for use. All
other borrowing costs are recognized as expenditure in the period for
which they pertain to.
10. Tax on Income :
a) Tax expense comprises both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income tax payable in respect of the taxable income for
the reporting period.
b) Deferred tax represents the effect of timing differences between
taxable income and accounting income for the reporting period that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each Balance Sheet date to reassess
realization.
11. Provisions & Contingent Liabilities :
Provisions are recognized when the company has a legal and constructive
present obligation as a result of a past event, for which it is
probable that outflow of resources will be required and a reliable
estimate can be made of the amount of the obligation. Contingent
liabilities are disclosed when there is a possible obligation that may
result in an outflow of resources. Contingent assets are neither
recognized nor disclosed.
12. Foreign Exchange Transactions :
Transactions in foreign currency are recorded at exchange rates
prevailing on the dates of respective transactions. The difference in
translation and realized gains and losses on foreign exchange
transactions are recognized in the Profit and Loss Account. Premium/
Discount in respect of forward contracts is accounted over the period
of contract.
Forward contracts outstanding as at the balance sheet date are stated
at exchange rates prevailing at the reporting date and any gains or
losses are recognized in the Statement of Profit and Loss. Profit or
loss arising on cancellation or enforcement/exercise of forward
exchange is recognized in the Statement of Profit and Loss in the
period of such cancellation or enforcement/exercise.
Mar 31, 2013
1. Method of Accounting
The Company follows mercantile system of accounting and recognizes
income and expenditure on an accrual basis. Financial Statements are
prepared under historical cost convention, in accordance with the
Generally Accepted Accounting Principles in India (GAAP) and comply in
all material aspects, with mandatory accounting standards as notified
by the Companies (Accounting Standards) Rules, 2006, relevant
provisions of the Companies Act and statements issued by the Institute
of Chartered Accountants of India. The significant accounting policies
followed by the Company are set out below. Management has made certain
estimates and assumptions in conformity with the GAAP in the
preparation of these financial statements, which are reflected in the
preparation of these financial statements. Difference between the
actual results and estimates are recognised in the year in which the
results are known.
2. Fixed Assets
Fixed assets are carried at cost of acquisition less accumulated
depreciation. Cost includes all expenses related to acquisition and
installation of such assets.
3. Depreciation
Depreciation for the year is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956 on pro- rata
basis.
4. Investments
Investments are stated at cost less provision for diminution in the
value of investment of permanent nature, if any. Unquoted investments
are valued on the basis of book value as per audited balance sheet of
the investee company.
Investment in shares of the Subsidiaries registered outside India, are
stated at cost by converting at the rate of exchange prevailing at the
time of setting up the Subsidiary and date of remittance of funds in
case of additional investment.
5. Revenue Recognition
a) Revenue is recognised based on the nature of activity when
consideration can be reasonably measured and their exists reasonable
certainty of its recovery.
i) Income from sale of traded goods is recognized on transfer of all
significant risk and ownership of the goods on to the customers, which
is generally on dispatch of goods.
ii) In respect of back-to-back trade arrangements, sales are booked
when the goods are dispatched by the trading partner to the customer
and are adjusted for the trade margin accruing to the Company.
iii) In cases where trade contracts provide for crystallization of
price or for price adjustment on a subsequent date, corresponding
purchase and sales are recognized on the basis of expected settlement
price and any differential determined subsequently is accounted for at
the time of final settlement.
b) Income from sale of electricity is recognized as per the terms and
conditions of the agreement with the Customer. Carbon credit Income is
recognized when realized.
c.) Interest income is recognized on a time proportion basis taking
into account amount outstanding and applicable interest rate.
6. Employee Benefits
i) Short Term Employee Benefits (i.e. those payable within one year)
are recognized in the period in which the employee service is rendered.
ii) Post employment and long term employee benefits are recognized as
an expense in the Statement of Profit and Loss for the year in which
the employees have rendered services and other statutory requirements
are met. Provision for gratuity is made based on actuarial valuation.
The expense will be recognized at the present value of the amount
payable determined using actuarial valuation techniques. Actuarial
gains or losses in respect of post employment and other long term
benefits are charged to the Statement of Profit and Loss.
7. Inventories
Inventory is valued at cost or net realizable value whichever is lower.
Cost includes all non refundable taxes and expenses incurred to bring
the inventory to the present location. Cost is determined using the
FIFO (first-in-first-out) method of valuation.
8. Impairment of Fixed Assets
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, such assets are subject to a
test of recoverability, based on discounted cash flows expected from
use or disposal thereof. If the assets are impaired, loss on the same
is recognized.
9. Borrowing Cost
Borrowing costs directly attributable to acquisition and construction
of capital assets are capitalized till the asset is ready for use. All
other borrowing costs are recognized as expenditure in the period for
which they pertain to.
10. Tax on Income
a) Tax expense comprises both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income tax payable in respect of the taxable income for
the reporting period.
b) Deferred tax represents the effect of timing differences between
taxable income and accounting income for the reporting period that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each Balance Sheet date to reassess
realization.
11. Provisions & Contingent Liabilities
Provisions are recognized when the company has a legal and constructive
present obligation as a result of a past event, for which it is
probable that outflow of resources will be required and a reliable
estimate can be made of the amount of the obligation. Contingent
liabilities are disclosed when there is a possible obligation that may
result in an outflow of resources. Contingent assets are neither
recognized nor disclosed.
12. Foreign Exchange Transactions
Transactions in foreign currency are recorded at exchange rates
prevailing on the dates of respective transactions. The difference in
translation and realized gains and losses on foreign exchange
transactions are recognized in the Profit and Loss Account. Premium/
Discount in respect of forward contracts is accounted over the period
of contract.
Mar 31, 2012
1. Method of Accounting
The Company follows mercantile system of accounting and recognizes
income and expenditure on an accrual basis. Financial Statements are
prepared under historical cost convention, in accordance with the
Generally Accepted Accounting Principles in India (GAAP) and comply in
all material aspects, with mandatory accounting standards as notified
by the Companies (Accounting Standards) Rules, 2006, relevant
provisions of the Companies Act and statements issued by the Institute
of Chartered Accountants of India. The significant accounting policies
followed by the Company are set out below. Management has made certain
estimates and assumptions in conformity with the GAAP in the
preparation of these financial statements, which are reflected in the
preparation of these financial statements. Difference between the
actual results and estimates are recognised in the year in which the
results are known.
2. Fixed Assets
Fixed assets are carried at cost of acquisition less accumulated
depreciation. The Cost includes all expenses related to acquisition and
installation of such assets.
3. Depreciation
Depreciation for the year is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956 on pro-rata
basis. In case of fixed assets given on lease, the cost of fixed assets
is written off over the period of lease. Lease Adjustment Account
represents the difference between the cost of assets required to be
written off during the particular year and the amount written off by
way of depreciation thereon.
4. Investments
Investments are stated at cost less provision for diminution in the
value of investment of permanent nature, if any. Unquoted investments
are valued on the basis of book value as per audited balance sheet of
the investee company.
Investment in shares of the Subsidiaries registered outside India, are
stated at cost by converting at the rate of exchange prevailing at the
time of setting up the Subsidiary and date of remittance of funds in
case of additional investment.
5. Revenue Recognition
a) Income from sale of traded goods is recognized on transfer of all
significant risk and ownership of the goods on to the customers, which
is generally on dispatch of goods.
b) Income from sale of electricity is recognized as per the terms and
conditions of the agreement with the Customer.
6. Employee Benefits
Short Term Employee Benefits (i.e. those payable within one year) are
recognised in the period in which the employee service is rendered.
There are no other employee benefits such as provident fund, gratuity,
compensated absences etc. which need to be recognised in the Financial
Statements.
7. Impairment of Fixed Assets
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, such assets are subject to a
test of recoverability, based on discounted cash flows expected from
use or disposal thereof. If the assets are impaired, loss is recognized
8. Borrowing Cost
Borrowing costs directly attributable to acquisition and construction
of capital assets are capitalized till the asset is ready for use. All
other borrowing costs are recognised as expenditure in the period when
they were incurred.
9. Tax on Income
a) Tax expense comprises both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income tax payable in respect of the taxable income for
the reporting period.
b) Deferred tax represents the effect of timing differences between
taxable income and accounting income for the reporting period that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each Balance Sheet date to reassess
realization.
10. Provisions & Contingent Liabilities
Provisions are recognised when the company has a legal and constructive
present obligation as a result of a past event, for which it is
probable that outflow of resources will be required and a reliable
estimate can be made of the amount of the obligation. Contingent
liabilities are disclosed when there is a possible obligation that may
result in an outflow of resources. Contingent assets are neither
recognised nor disclosed.
11. Foreign Exchange Transactions
Transactions in foreign currency are recorded at exchange rates
prevailing on the dates of respective transactions. The difference in
translation and realized gains and losses on foreign exchange
transactions are recognized in the Profit and Loss Account. Premium/
Discount in respect of Forward Contracts is accounted over the period
of Contracts.
12. Carbon Credit Income
Carbon Credit Income is recognized as and when realised.
13. Inventories
Inventory is valued at cost or net realizable value whichever is lower.
Mar 31, 2011
1. Method of Accounting
The Company follows mercantile system of accounting and recognizes
income and expenditure on an accrual basis. Financial Statements are
prepared under historical cost convention, in accordance with the
Generally Accepted Accounting Principles in India (GAAP) and comply in
all material aspects, with mandatory accounting standards as notified
by the Companies (Accounting Standards) Rules, 2006, relevant
provisions of the Companies Act and statements issued by the Institute
of Chartered Accountants of India. The significant accounting policies
followed by the Company are set out below. Management has made certain
estimates and assumptions in conformity with the GAAP in the
preparation of these financial statements, which are reflected in the
preparation of these financial statements. Difference between the
actual results and estimates are recognised in the year in which the
results are known.
2. Fixed Assets
Fixed assets are carried at cost of acquisition less accumulated
depreciation. The Cost includes all expenses related to acquisition and
installation of such assets.
3. Depreciation
Depreciation for the year is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956 on pro-rata
basis. In case of fixed assets given on lease, the cost of fixed assets
is written off over the period of lease. Lease Adjustment Account
represents the difference between the cost of assets required to be
written off during the particular year and the amount written off by
way of depreciation thereon.
4. Investments
Investments are stated at cost less provision for diminution in the
value of investment of permanent nature, if any. Unquoted investments
are valued on the basis of book value as per audited balance sheet of
the investee company.
Investment in shares of the Subsidiaries registered outside India, are
stated at cost by converting at the rate of exchange prevailing at the
time of setting up the Subsidiary and date of remittance of funds in
case of additional investment.
5. Revenue Recognition
a) Income from sale of traded goods is recognized on transfer of all
significant risk and ownership of the goods on to the customers, which
is generally on dispatch of goods.
b) Income from sale of electricity is recognized as per the terms and
conditions of the agreement with the Customer.
6. Retirement Benefits
Provision for gratuity is not made since no employee is eligible for
the same.
7. Impairment of Fixed Assets
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, such assets are subject to a
test of recoverability, based on discounted cash flows expected from
use or disposal thereof. If the assets are impaired, loss is recognized
8. Borrowing Cost
Borrowing costs directly attributable to acquisition and construction
of capital assets are capitalized till the asset is ready for use. All
other borrowing costs are recognised as expenditure in the period when
they were incurred.
9. Tax on Income
a) Tax expense comprises both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income tax payable in respect of the taxable income for
the reporting period.
b) Deferred tax represents the effect of timing differences between
taxable income and accounting income for the reporting period that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each Balance Sheet date to reassess
realization.
10. Provisions & Contingent Liabilities
Provisions are recognised when the company has a legal and constructive
present obligation as a result of a past event, for which it is
probable that outflow of resources will be required and a reliable
estimate can be made of the amount of the obligation. Contingent
liabilities are disclosed when there is a possible obligation that may
result in an outflow of resources. Contingent assets are neither
recognised nor disclosed.
11. Foreign Exchange Transactions
Transactions in foreign currency are recorded at exchange rates
prevailing on the dates of respective transactions. The difference in
translation and realized gains and losses on foreign exchange
transactions are recognized in the Profit and Loss Account.
Premium/Discount in respect of Forward Contracts is accounted over the
period of Contracts.
12. Carbon Credit Income
Carbon Credit Income is recognized as and when realised.
13. Inventories
Inventory is valued at cost or net realizable value whichever is lower.
Mar 31, 2010
1. Method of Accounting
The Company follows mercantile system of accounting and recognizes
income and expenditure on an accrual basis. Financial Statements are
prepared under historical cost convention, in accordance with the
Generally Accepted Accounting Principles in India (GAAP) and comply in
all material aspects, with mandatory accounting standards as notified
by the Companies (Accounting Standards) Rules, 2006, relevant
provisions of the Companies Act and statements issued by the Institute
of Chartered Accountants of India. The significant accounting policies
followed by the Company are set out below. Management has made certain
estimates and assumptions in conformity with the GAAP in the
preparation of these financial statements, which are reflected in the
preparation of these financial statements. Difference between the
actual results and estimates are recognised in the year in which the
results are known.
2.Fixed Assets
Fixed assets are carried at cost of acquisition less accumulated
depreciation. The Cost includes all expenses related to acquisition and
installation of such assets.
3.Depreciation
Depreciation for the year is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956 on pro-rata
basis. In case of fixed assets given on lease, the cost of fixed assets
is written off over the period of lease. Lease Adjustment Account
represents the difference between the cost of assets required to be
written off during the particular year and the amount written off by
way of depreciation thereon.
4.Investments
Investments are stated at cost less provision for diminution in the
value of investment of permanent nature, if any. Unquoted investments
are valued on the basis of book value as per audited balance sheet of
the investee company.
Investment in shares of the Subsidiaries registered outside India, are
stated at cost by converting at the rate of exchange prevailing at the
time of setting up the Subsidiary.
5.)Revenue Recognition
i) Income from sale of traded goods is recognized on transfer of all
significant risk and ownership of the goods on to the customers, which
is generally on dispatch of goods.
ii) Income from sale of electricity is recognized as per the terms and
conditions of the agreement with the Customer.
6. Retirement Benefits
I) Provision for gratuity is not made since no employees are eligible
for the same. ii) Leave Salary is accounted for on accrual basis.
7. Impairment of Fixed Assets
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, such assets are subject to a
test of recoverability, based on discounted cash flows expected from
use or disposal thereof. If the assets are impaired, loss is recognized
8. Borrowing Cost
Borrowing costs directly attributable to acquisition and construction
of capital assets are capitalized till the asset is ready for use. All
other borrowing costs are recognised as an expenditure in the period
when they were incurred.
9. Tax on Income
a. Tax expense comprises both current and deferred tax at the applicable
enacted/substantively enacted rates. Current tax represents the amount
of income tax payable in respect of the taxable income for the
reporting period.
b. Deferred tax represents the effect of timing differences between
taxable income and accounting income for the reporting period that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each Balance Sheet date to reassess
realization.
10. Provisions & Contingent Liabilities
Provisions are recognised when the company has a legal and constructive
present obligation as a result of a past event, for which it is
probable that outflow of resources will be required and a reliable
estimate can be made of the amount of the obligation. Contingent
liabilities are disclosed when there is a possible obligation that may
result in an outflow of resources. Contingent assets are neither
recognised nor disclosed.
11. Foreign Exchange Transactions
Transactions in foreign currency are recorded at exchange rates
prevailing on the dates of respective transactions. The difference in
translation and realized gains and losses on foreign exchange
transactions are recognized in the Profit and Loss Account.
Premium/Discount in respect of Forward Contracts is accounted over the
period of Contracts.
12. Carbon Credit Income
Carbon Credit Income is recognized as and when realised
Mar 31, 2001
Method of Accounting :
The financial statement have been prepared on historical cost basis in
conformity with accounting principles generally accepted in India.
Fixed Assets :
Fixed assets are carried at cost of acquisition less accumulated
depreciation. The Cost includes all expenses related to acquisition and
installation of such assets.
Depreciation :
Depreciation for the year is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956 on pro-rata
basis. In case of fixed assets given on lease, the cost of fixed assets
is written off over the period of lease. Lease Adjustment Account
represents the difference between the cost of assets required to be
written off during the particular year and the amount written off by
way of depreciation thereon.
Investments :
Investments are stated at cost less provision for diminution in value
of investment of permanent nature, if any.
Revenue recognition :
a) Commission income is recognized on accrual basis.
b) Income from sale of trading of goods is recognized as and when the
title passes to the customers.
c) Income from sale electricity is recognized as per the terms and
condition of the agreement with the Customer.
d) Lease Rental Income is recognized on accrual basis.
Foreign Currency Transactions :
Transactions in foreign currency are recorded at the exchange rates
prevailing on the date of the transaction. Assets (other than fixed
assets) and Liabilities related to foreign currency transactions,
remaining unsettled at the year-end rates are settled at year- end
rates. Gains or losses arising on such transactions and on settlements
during the year are accounted in the Profit & Loss account.
Retirement Benefits :
a) Provision for gratuity is not made since no employees are eligible
for the same.
b) Leave Salary is accounted for on accrual basis. Miscellaneous
Expenditure (to the extent not written off) :
Preliminary expenses are written off in equal installments over a
period of ten years.