Mar 31, 2015
A) Basis of preparation of financial statements:-
The financial statements have been prepared under the historical cost
convention in accordance with generally accepted Accounting Principles,
Accounting Standards issued by The Institute of Chartered Accountants
of India and the provisions of the Companies Act 2013,as adopted
consistently by the company. All income and expenditure having a
material bearing on the financial statement are recognized on accrual
basis.
b) Use of Estimates :-
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions
c) Revenue Recognition:-
i. Sale of goods is recognized on dispatch to customers. Sales are net
of returns, excise duty and sales tax/VAT.
ii. Interest income is recognized on the time proportionate basis.
iii. Income from Investment/Deposit is credited to revenue in the year
in which it received. Income is stated in full with the tax thereon
being accounted for under Tax deducted at source.
d) Fixed Assets:-
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
other directly attributable costs of bringing the assets to its working
condition for its intended use.
e) Depreciation:-
Depreciation is provided on pro-rata basis on Straight Line Method at
the rate prescribed under schedule II to the Companies Act, 2013 with
the exception of the following:
i. Assets costing Rs. 5000 or less are fully depreciated in the year
of purchased.
f) Impairment of Fixed Assets :-
At the end of each year, the Company determines whether a provision
should be made for Impairment loss on fixed assets by considering the
indications that an impairment loss may have occurred in accordance
with Accounting Standard (AS-28) "Impairment of Assets" issued by the
Institute of Chartered Accountants of India. An impairment loss is
charged to the Profit and Loss account in the year in which, an asset
is identified as impaired, when the carrying value of the asset exceeds
its recoverable value. The impairment loss recognized in prior
accounting periods is reversed, if there has been a change in the
estimate of recoverable amount.
g) Inventories:-
i. Raw material and consumable stores & Spares are valued at cost net
realizable value, whichever is lower on first in first out basis.
ii. Finished Goods are valued at lower of cost (cost of production
method or net realizable value).
iii. Stock in process & Semi Finished Goods valued at cost up to
estimated stage of progress.
iv. By Product valued at estimated prices.
h) Investments:-
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at cost. However, provision for diminution in
value is made to recognize a decline other than temporary in the value
of the investments Unquoted Investments are stated cost.
i) Borrowing Costs :-
Borrowing costs consists of interest and other cost that an entity
incurs in connection with borrowing of funds. Borrowing costs are
recognized as expenses in the period in which these are incurred.
j) Research and Development:-
Research & Development costs of revenue nature are charged to the
statement of Profit&Loss when incurred Expenditure.
k) Employee Retirement and other Benefit :-
i. Short Term Employee's Benefits:
All employees' benefits payable within twelve months of rendering
services are recognized in the period in which the employees render the
related services.
ii. Post-Employment/Retirements Benefits:
Contribution to defined Contribution plans such as Provident Fund etc.
are charged to the statement of Profit and Loss as incurred.
iii. Gratuity:
As per AS-15 (Revised) 2005 of ICAI read with Accounting Standard Board
Guidance, The Provision for Gratuity Liability is not made since none
of the employees have completed 5 years of service for period under
review.
l) Taxes on Income :-
Provision for Income tax is made on the basis of relevant provisions of
the Income Tax Act, 1961.as applicable to the financial year.
Deferred income taxes are recognized for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes.
m) Provision contingent liabilities and contingent assets :-
Provision involving substantial degree of estimation in measurement is
recognized when there is present obligation as a result of past events
and it is possible that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes to accounts. Contingent Assets are neither recognized nor
disclosed in the financial statements.
n) Earnings Per Share( EPS) :-
The basic and diluted EPS is calculated by dividing the Profit/ (Loss)
after Tax by the weighted average number of Equity Shares outstanding.
Mar 31, 2012
A) Basis of preparation of financial statements:- The financial
statements have been prepared under the historical cost convention in
accordance with generally accepted Accounting Principles, Accounting
Standards issued by The Institute of Chartered Accountants of India and
the provisions of the Companies Act 1956,as adopted consistently by the
company. All income and expenditure having a material bearing on the
financial statement are recognized on accrual basis.
b) Use of Estimates :- The preparation of the financial statements in
conformity with the generally accepted accounting principles requires
management to make estimates and assumptions.
c) Revenue Recognition:- i. Sale of goods is recognized on dispatch to
customers. Sales are net of returns, excise duty and sales tax/VAT.
ii. Interest income is recognized on the time proportionate basis.
iii. Income from Investment/Deposit is credited to revenue in the year
in which it received. Income is stated in full with the tax thereon
being accounted for under Tax deducted at source.
d) Fixed Assets:- Fixed assets are stated at cost less accumulated
depreciation and impairment losses, if any. Cost comprises the purchase
price and any other directly attributable costs of bringing the assets
to its working condition for its intended use.
e) Depreciation:- Depreciation on fixed assets is provided on Straight
Line method at the rated and in the manner prescribed in schedule XIV
to the companies Act, 1956.
f) Impairment of Fixed Assets :- At the end of each year, the Company
determines whether a provision should be made for Impairment loss on
fixed assets by considering the indications that an impairment loss may
have occurred in accordance with Accounting Standard (AS-28)
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India. An impairment loss is charged to the Profit and Loss account
in the year in which, an asset is identified as impaired, when the
carrying value of the asset exceeds its recoverable value. The
impairment loss recognized in prior accounting periods is reversed, if
there has been a change in the estimate of recoverable amount.
g) Inventories:-
i. Raw material and consumable stores & Spares are valued at cost net
realizable value, whichever is lower on first in first out basis.
ii. Finished Goods are valued at lower of cost (cost of production
method or net realizable value).
iii. Stock in process & Semi Finished Goods valued at cost up to
estimated stage of progress.
iv. By Product valued at estimated prices.
h) Investments:- Investments that are readily realizable and intended
to be held for not more than a year are classified as current
investments. All other investments are classified as long-term
investments. Current investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments Unquoted Investments are
stated cost.
i) Borrowing Costs :- Borrowing costs consists of interest and other
cost that an entity incurs in connection with borrowing of funds.
Borrowing costs are recognized as expenses in the period in which these
are incurred.
j) Research and Development:- Research & Development costs of revenue
nature are charged to the statement of Profit & Loss when incurred
Expenditure.
k) Employee Retirement and other Benefit :-
i. Short Term Employee''s Benefits:
All employees'' benefits payable within twelve months of rendering
services are recognized in the period in which the employees render the
related services.
ii. Post Employment/Retirements Benefits:
Contribution to defined Contribution plans such as Provident Fund etc.
are charged to the statement of Profit and Loss as incurred.
iii. Gratuity:
As per AS-15 (Revised) 2005 of ICAI read with Accounting Standard Board
Guidance, The Provision for Gratuity Liability is not made since none
of the employees have completed 5 years of service for period under
review.
l) Taxes on Income :- Provision for Income tax is made on the basis of
relevant provisions of the Income Tax Act, 1961.as applicable to the
financial year.
Deferred income taxes are recognized for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes.
m) Provision contingent liabilities and contingent assets :- Provision
involving substantial degree of estimation in measurement is recognized
when there is present obligation as a result of past events and it is
possible that there will be an outflow of resources. Contingent
Liabilities are not recognized but are disclosed in the notes to
accounts. Contingent Assets are neither recognized nor disclosed in the
financial statements.
n) Earnings Per Share( EPS) :- The basic and diluted EPS is calculated
by dividing the Profit/ (Loss) after Tax by the weighted average number
of Equity Shares outstanding.
Mar 31, 2011
A) Basis of preparation of financial statements:-
i. The financial statements are prepared under the historical cost
convention, in accordance with the Generally Accepted Accounting
Principles in India and the Accounting Standards (AS) as notified under
Companies (Accounting Standards) Rules, 2006.
ii. Accounting policies not specifically referred to otherwise, are
consistent with generally Accepted Accounting Principles.
iii. The Company generally follows mercantile system of accounting and
all income and expenditure items having a material impact on the
financial statements are recognized on accrual basis.
b) Use of Estimates :- The preparation of financial statements requires
estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of financial statement and the
reported amount of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognized in the
period in which the results are known/materialize.
c) Fixed Assets:- Fixed assets are stated at cost less accumulated
depreciation and impairment losses, if any. Cost comprises the purchase
price and any other directly attributable costs of bringing the assets
to its working condition for its intended use.
d) Depreciation:- Depreciation on fixed assets is provided on Straight
Line method at the rated and in the manner prescribed in schedule XIV
to the companies Act, 1956.
e) Impairment of Fixed Assets :- At the end of each year, the Company
determines whether a provision should be made for Impairment loss on
fixed assets by considering the indications that an impairment loss may
have occurred in accordance with Accounting Standard (AS-28)
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India. An impairment loss is charged to the Profit and Loss account
in the year in which, an asset is identified as impaired, when the
carrying value of the asset exceeds its recoverable value. The
impairment loss recognized in prior accounting periods is reversed, if
there has been a change in the estimate of recoverable amount.
f) Revenue Recognition:-
i. Sale of goods is recognized on dispatch to customers. Sales are net
of returns, excise duty and sales tax/VAT.
ii. Interest income is recognized on the time proportionate basis.
iii. Income from Investment/Deposit is credited to revenue in the year
in which it accrues. Income is stated in full with the tax thereon
being accounted for under Tax deducted at source.
g) Inventories:-
i. Raw material and consumable stores & Spares are valued at cost net
realizable value, whichever is lower on first in first out basis.
ii. Finished Goods are valued at lower of cost (cost of production
method or net realizable value).
iii. Stock in process & Semi Finished Goods valued at cost up to
estimated stage of progress.
iv. By Product valued at estimated prices.
h) Investments:- Investments that are readily realizable and intended
to be held for not more than a year are classified as current
investments. All other investments are classified as long- term
investments. Current investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments Unquoted Investments are
stated cost.
i) Borrowing Costs :- Borrowing costs consists of interest and other
cost that an entity incurs in connection with borrowing of funds.
Borrowing costs are recognized as expenses in the period in which these
are incurred.
j) Research and Development:- Research & Development costs of revenue
nature are charged to Profit & Loss account as and when incurred.
k) Employee Retirement and other Benefit :- i. Short Term Employee''s
Benefits:
All employees'' benefits payable within twelve months of rendering
services are recognized in the period in which the employees render the
related services.
ii. Post Employment/Retirements Benefits:
Contribution to defined Contribution plans such as Provident Fund etc.
are charged to the Profit and Loss Account as incurred.
iii. Gratuity:
As per AS-15 (Revised) 2005 of ICAI read with Accounting Standard Board
Guidance, The Provision for Gratuity Liability is not made since none
of the employees have completed 5 years of service for period under
review.
l) Taxes on Income :- Provision for Income tax is made on the basis of
relevant provisions of the Income Tax Act, 1961.as applicable to the
financial year.
Deferred income taxes are recognized for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes.
m) Provision contingent liabilities and contingent assets :- Provision
involving substantial degree of estimation in measurement is recognized
when there is present obligation as a result of past events and it is
possible that there will be an outflow of resources. Contingent
Liabilities are not recognized but are disclosed in the notes to
accounts. Contingent Assets are neither recognized nor disclosed in the
financial statements.
n) Earnings Per Share( EPS) :- The basic and diluted EPS is calculated
by dividing the Profit/ (Loss) after Tax by the weighted average number
of Equity Shares outstanding.
Mar 31, 2009
A) SYSTEM ACCOUNTING:
The company follows the accrual basis of accounting.
b) FIXED ASSETS
Fixed assets are stated at cost less depreciation
c) DEPRECIATION
Depreciation on fixed assets is provided op Straight Line method at the
rates and in the manner prescribed manner prescribed in schedule XIV
to the companies Act. 1956.
d) VALUATION OF INVENTORIES:
Raw Material snd Stores & Spares : at cost(fifo method) or market price
which ever is lower
Flnished Goods : at lower of cost of production method or realisable
value)
Stock in process & Semi Finished
Goods : at cost up to estimated stageof progress
By-Product : at estimated prices
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