Mar 31, 2015
(i) Basis of Accounting:
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost conv - ention on accrual basis. Pursuant to section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
2014, till the standards of accounting or any addendum thereto are
prescribed by Central Government in consultation and recommendation of
the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently, these financial statements have been prepared to
comply in all material aspects with the accounting standards notified
under Section 211(3C) [Companies (Accounting Standards) Rules,2006, as
amended] and other relevant provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or
non-current as per the Company's operating cycle and other criteria set
out in the Revised Schedule VI to the Companies Act, 1956. Based on the
nature of services and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current-non current classification of assets and
liabilities.
(ii) Tangible and Intangible Assets and Depreciation/ Amortisation:
(a) Tangible and Intangible Assets are stated at cost of acquisition or
construction less accumulated depreciation/ amortisation and
accumulated impairment losses, if any. The Company capitalises all
costs relating to the acquisition, installation and construction of
Tangible and Intangible Assets up to the date when the assets are ready
for commercial use. Subsequent expenditures related to an item of fixed
asset are added to its book value only if they increase the future
benefits from the existing asset beyond its previously assessed
standard of performance. Items of Fixed Assets that have been retired
from active use and are held for disposal are stated at the lower of
their net book value and net realisable value and are shown separately
in the financial statements. Any expected loss is recognised
immediately in the Statement of Profit and Loss. Losses arising from
the retirement of, and gains or losses arising from disposal of Fixed
Assets which are carried at cost are recognised in the Statement of
Profit and Loss.
(b) Depreciation on additions/ deletions to Tangible and Intangible
Assets is calculated on pro-rata basis from the month of such additions/
deletions. The Company provides depreciation on straight-line method at
the rates specified under Schedule II Schedule II to the Companies Act,
2013, except for: - Leasehold land & Revalued aseets which is being
amortised over the lease period
(c) Assets individually costing less than Rs. 5,000 are fully
depreciated in the year of acquisition/ construction.
(d) Assessment is done at each Balance Sheet date as to whether there
is any indication that an asset (tangible and intangible) may be
impaired. For the purpose of assessing impairment, the smallest
identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from
other assets or groups of assets, is considered as a cash generating
unit. If any such indication exists, an estimate of the recoverable
amount of the asset/ cash generating unit is made. Assets whose
carrying value exceeds their recoverable amount are written down to the
recoverable amount. Recoverable amount is higher of an asset's or cash
generating unit's net selling price and its value in use. Value in use
is the present value of estimated future cash flows expected to arise
from the continuing use of an asset and from its disposal at the end of
its useful life. Assessment is also done at each Balance Sheet date as
to whether there is any indication that an impairment loss recognised
for an asset in prior accounting periods may no longer exist or may have
decreased.
(iii) Borrowing Cost:
Borrowing costs directly attributable to the acquisition/ construction
of an asset are apportioned to the cost of the Tangible and Intangible
Assets up to the date on which the asset is put to use/ commissioned.
(iv) Investments:
Investments that are readily realisable and are 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 at
cost or fair value, whichever is lower. Long-term investments are
carried at cost. However, provision for diminution is made to recognise
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually.
(v) Inventories :
Inventory is valued at weighted average 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.
(vi) Employment Benefits:
No provision made for Employees Benefit Plan. As there is not any
permanent Employee as such, the question of provisions such as
employees PF,ESIC, or Gratuity does not arise.
(vii) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sales is recognised when the significant risk and rewards of ownership
of the goods are passed to the customer.
Sales are disclosed net of Sales Tax, Discount and returns as
applicable
(viii) Current and Deferred Tax:
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognised for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date. At each Balance Sheet date, the
Company reassesses unrecognised deferred tax assets, if any.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised 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. Such asset is reviewed
at each Balance Sheet date and the carrying amount of the MAT credit
asset is written down to the extent there is no longer a convincing
evidence to the effect that the Company will pay normal income tax
during the specified period.
(ix) Segment Reporting
The company has taken into consideration Accounting Standard
17-"Segment Reporting" issued by Institute of Chartered Accountants of
India.
The company has only one segment, thus there is no separate segment
prepared.
(x) Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
Sheet date and are not discounted to its present
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made.
(xi) Earnings per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
(xii) Cash and Cash Equivalents
Cash and cash equivalents comprise cash and Balance with Bank
Mar 31, 2013
1. BASIS FOR PREPARATION OF ACCOUNTS
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money
3. USE OF ESTIMATES:-
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
4. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
5. TANGIBLE FIXED ASSETS
Fixed assets, except Land and Site Development, Leasehold Land, and
Capital Work In Progress, are carried at cost less accumulated
depreciation and impairment losses, if any. The cost of fixed assets
includes interest on borrowings attributable to acquisition of
qualifying fixed assets up to the date the asset is ready for its
intended use and other incidental expenses incurred up to that date.
Exchange differences arising on restatement / settlement of long-term
foreign currency borrowings relating to acquisition of depreciable
fixed assets are adjusted to the cost of the respective assets and
depreciated over the remaining useful life of such assets. Machinery
spares which can'' be used only in connection with an item of fixed
asset and whose use is expected to be irregular are capitalized and
depreciated over the useful life of the principal item of the relevant
assets. Subsequent expenditure relating to fixed assets is capitalized
only if such expenditure results in an increase in the future benefits
from such asset beyond its previously assessed standard of performance.
6. BORROWING COSTS
Borrowing costs include interest, amortization of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing costs, allocated to and utilized for
qualifying assets, pertaining to the period from commencement of
activities relating to construction / development of the qualifying
asset up to the date of capitalization of such asset is added to the
cost of the assets.
7. DEPRECIATION
a) Fixed assets, except land and site development, leasehold land and
Capital Work in Progress , are depreciated on straight line method on a
pro-rata basis from the month in which each assets is put to use.
Depreciation has been provided at the rates prescribed in Schedule XIV
to the Companies Act, 1956.
b) Plant and machinery, the written down value of which at the
beginning of the year is Rs.
5,000 or less, and other assets, the written down value of which at the
beginning of the year is Rs. 1,000 or less, are depreciated at the rate
of 100%. Assets purchased during the year costing Rs 5000 or less are
depreciated at the rate of 100%.
8. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value
b) Obsolete and Non-Moving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management.
9. INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in that case the necessary
provision is made.
10. EMPLOYEES BENEFITS
As per information and Explanation given to us, No Provision made for
the Employees Benefits Plan.
11 TAXES ON INCOME
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognized as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognized on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognized for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized only if there is virtual certainty that there
will be sufficient future taxable income available to realize such
assets. Deferred tax assets are recognized for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realized. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
reliability.
12. Segmental Reporting
The reporting requirements of Segmental Reporting (AS-17) are not
applicable on the company.
13. Contingent Liabilities
- Claims against the Company disputed and not acknowledged as debts -
NIL
- The contingent liability which might arise from pending assessments
under various statutes. In view of the management the effect of same
is not ascertainable.
Mar 31, 2012
1. BASIS FOR PREPARATION OF ACCOUNTS
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money
3. USE OF ESTIMATES:-
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialize.
4. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
5. TANGIBLE FIXED ASSETS
Fixed assets, except Land and Site Development, Leasehold Land, and
Capital Work In Progress, are carried at cost less accumulated
depreciation and impairment losses, if any. The cost of fixed assets
includes interest on borrowings attributable to acquisition of
qualifying fixed assets up to the date the asset is ready for its
intended use and other incidental expenses incurred up to that date.
Exchange differences arising on restatement / settlement of long-term
foreign currency borrowings relating to acquisition of depreciable
fixed assets are adjusted to the cost of the respective assets and
depreciated over the remaining useful life of such assets. Machinery
spares which can be used only in connection with an item of fixed asset
and whose use is expected to be irregular are capitalised and
depreciated over the useful life of the principal item of the relevant
assets. Subsequent expenditure relating to fixed assets is capitalised
only if such expenditure results in an increase in the future benefits
from such asset beyond its previously assessed standard of performance.
6. BORROWING COSTS
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing costs, allocated to and utilised for
qualifying assets, pertaining to the period from commencement of
activities relating to construction / development of the qualifying
asset upto the date of capitalisation of such asset is added to the
cost of the assets.
7. DEPRECIATION
a) Fixed assets, except land and site development, leasehold land,
Capital Work in Progress and Computer and Software, are depreciated on
straight line method on a pro- rata basis from the month in which each
assets is put to use. Depreciation has been provided at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
b) Plant and machinery, the written down value of which at the
beginning of the year is Rs. 5,000 or less, and other assets, the
written down value of which at the beginning of the year is Rs. 1,000
or less, are depreciated at the rate of 100%. Assets purchased during
the year costing Rs 5000 or less are depreciated at the rate of 100%.
8. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value
b) Obsolete and Non-Moving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management.
9. INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
10. EMPLOYEES BENEFITS
As per information and Explanation given to us, No Provision made for
the Employees Benefits Plan.
11. TAXES ON INCOME
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
Mar 31, 2011
1) BASIS FOR PREPARATION OF ACCOUNTS
These financial statements have been prepared to comply in all material
respects with all the applicable accounting principles in India, the
applicable accounting standard notified under section 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act,
1956.
2) REVENUE RECOGNITION
- Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
- Sales are disclosed net of Sales Tax, Discount and Returns as
applicable
3) FIXED ASSETS
Fixed assets are carried at cost of acquisition or construction or at
manufacturing cost in the year of capitalization less accumulated
depreciation. The Capital WIP is capitalized once the assets is
completed and ready for put to use.
4) BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of that
asset.
5) DEPRECIATION
- Fixed assets except leasehold land are depreciated on SLM method from
the year in which each asset is put to use. Depreciation has been
provided at the rates prescribed in Schedule XIV to the Companies Act,
1956.
- Depreciation Charge on revalue assets is adjusted against the
Revaluation Reserve created on revaluation of assets.
- Plant and machinery, the written down value of which at the beginning
of the year is Rs. 5,000 or less, and other assets, the written down
value of which at the beginning of the year is Rs. 1,000 or less, are
depreciated at the rate of 100%. Assets purchased during the year
costing Rs 5000 or less are depreciated at the rate of 100%.
6) INVENTORIES
- Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value.
- Obsolete and Non Moving Inventory of Raw Material, Stores and Spares
is provided for on Identification and certification by the management.
7) INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
8) DEFERRED TAXES
Tax expense for the period, comprising current tax, fringe benefit tax
and deferred tax, is included in determining the net profit/(loss) for
the year. Current tax is recognized based on assessable profit computed
in accordance with the Income Tax Act and at the prevailing tax rate.
Deferred tax is recognized for all timing differences. Deferred tax
assets are carried forward to the extent it is reasonably / virtually
certain that future taxable profit will be available against which such
deferred tax assets can be realized. Deferred tax assets are reviewed
at each balance sheet date and written down/ written up to reflect the
amount that is reasonably/ virtually certain (as the case may be) to be
realized.
Deferred tax assets and liabilities are measured at the tax rates that
have been enacted or substantively enacted at the balance sheet date.
9) SEGMENT ACCOUNTING AND REPORTING
In addition to the significant accounting policies applicable to the
business segment as set out in Point No 9 to Notes to Accounts, the
accounting policies relating to segment accounting are as under:-
a. Segment Revenue and Expenses
Segment Revenue and Expenses those are directly attributable to the
segment are considered for respective segments. For rest allocation has
been done between segments & where there it is not possible to
allocate, the same has been considered as unallowable revenue and
expenses.
b. Segment Assets and Liabilities
All segment assets and liabilities are directly attributable to the
segment. Segment assets include all operating assets used by the
segment and consist principally of fixed assets, inventories, sundry
debtors, loans and advances.
Mar 31, 2010
1) BASIS FOR PREPARATION OF ACCOUNTS
These financial statements have been prepared to comply in all material
respects with all the applicable accounting principles in India, the
applicable accounting standard notified under section 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act,
1956.
2) REVENUE RECOGNITION
- Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
- Sales are disclosed net of Sales Tax, Discount and Returns as
applicable
3) FIXED ASSETS
Fixed assets are carried at cost of acquisition or construction or at
manufacturing cost in the year of capitalization less accumulated
depreciation. The Capital WIP is capitalized once the assets is
completed and ready for put to use.
4) BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of that
asset.
5) DEPRECIATION
ë Fixed assets except leasehold land are depreciated on SLM method from
the year in which each assets is put to use. Depreciation has been
provided at the rates prescribed in Schedule XTV to the Companies Act,
1956.
- In the case of assets, which have been revalued, the depreciation is
provided on the revalued amount and the incremental depreciation
attributable to the revalued amount is adjusted to the Revaluation
Reserve created on revaluation of assets.
- Plant and machinery, the written down value of which at the beginning
of the year is Rs. 5,000 or less, and other assets, the written down
value of which at the beginning of the year is Rs. 1,000 or less, are
depreciated at the rate of 100%. Assets purchased during the year
costing Rs 5000 or less are depreciated at the rate of 100%.
6) INVENTORIES
- Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value.
- Obsolete and Non Moving Inventory of Raw Material, Stores and Spares
is provided for on Identification and certification by the management.
7) INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
8) DEFERRED TAXES
Tax expense for the period, comprising current tax, fringe benefit tax
and deferred tax, is included in determining the net profit/ (loss) for
the year. Current tax is recognized based on assessable profit computed
in accordance with the Income Tax Act and at the prevailing tax rate.
Deferred tax is recognized for all timing differences. Deferred tax
assets are carried forward to the extent it is reasonably / virtually
certain that future taxable profit will be available against which such
deferred tax assets can be realized. Deferred tax assets are reviewed
at each balance sheet date and written down/ written up to reflect the
amount that is reasonably/ virtually certain (as the case may be) to be
realized.
Deferred tax assets and liabilities are measured at the tax rates that
have been enacted or substantively enacted at the balance sheet date.
9) SEGMENT ACCOUNTING AND REPORTING
In addition to the significant accounting policies applicable to the
business segment as set out in Point No 9 to Notes to Accounts, the
accounting policies relating to segment accounting are as under:-
a. Segment Revenue and Expenses
Segment Revenue and Expenses those are directly attributable to the
segment are considered for respective segments. For rest allocation has
been done between segments & where there it is not possible to
allocate, the same has been considered as unallocable revenue and
expenses.
b. Segment Assets and Liabilities
All segment assets and liabilities are directly attributable to the
segment. Segment assets include all operating assets used by the
segment and consist principally of fixed assets, inventories, sundry
debtors, loans and advances.