Mar 31, 2014
I. Basis of preparation of Financial Statement
(a) Basis of Accounting & preparation:
The financial statements are prepared on the accounting principles of a
going concern. The Company follows accrual method of accounting and the
financial statements have been prepared in accordance with the
historical cost conventions excepting revalued assets which are in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956. Accounting Policies not
specifically referred to otherwise are consistent and in consonance
with the applicable accounting standards prescribed by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable. All
expenses and income to the extent ascertainable with reasonable
certainty are accounted for on accrual basis.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
(b) Use of Estimates
The preparation of financial, statements in conformity with Generally
Accepted Accounting Principles (GAAP) in India requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosures of contingent liabilities on
the date of financial statements and reported amounts of revenue and
expenses for that year.
Although these estimates are based upon management''s best knowledge of
current events and actions, accounting estimates could change from
period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as the management becomes
aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in
which changes are made and, if material their effects are disclosed in
the notes to accounts to the financial statements.
II. Valuation of Inventory
Stock in trade is valued at lower of cost and net realizable value.
III. Tangible Assets
Fixed assets are stated at cost, net of accumulated depreciation. The
cost comprises purchase price borrowing costs if capitalisation
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price. Subsequent
expenditure is added to book value only if it increases the future
benefits from the existing asset.
IV. Depreciation
Depreciation on fixed assets is calculated on the straight line basis
using the rates prescribed in Schedule XIV to the Companies Act, 1956.
Assets costing upto Rs. 5000/- are written off on pro-rata basis in the
year of acquisition,
V. Investments
The Investment is stated at cost as per AS-13.
VI. Taxes on Income
Provision for income tax is made on the basis of prevailing laws and
rates applicable for the relevant assessment year. Deferred taxation is
recognised for all the timing differences subject to the consideration
of prudence and virtual certainty in respect of deferred tax assets in
accordance with the accounting standard 22 "Accounting for taxation of
income" issued by the Institute of Chartered Accountants of India.
VII. Revenue Recognition
Sales Value is inclusive of Excise Duty but exclusive of VAT, Sale is
recognised on removal of goods from factory.
VIII. Contingent Liabilities
As informed by Management the bank guarantee given by the Company in
respect of
(i) A Company in which some of the Directors are interested. NIL
(ii) To any supplier/party NIL
A contingent liability in regard with ESI demand of Rs. 210000/- for
ESI department for Hyderabad unit is pending with Company.
IX. Employee Benefits
a) PF and ESI are paid as per provisions of relevant statutes with the
authorities of respective state and are charged to statement of Profit
and Loss in the year to which it relates.
b) Gratuity being defined contribution is accounted for on accrual
basis in accordance with the Payment of Gratuity Act, 1972.
c) Accumulated leaves being short term compensated leaves are provided
for in the year of becoming due.
X. Earnings Per Share
Basic earnings per share are 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 as Per AS
20.
XI. Government Grants
Government grants are accounted for on its becoming reasonably certain
that the ultimate collection will be made.
XII. Foreign Currency Transaction
Transactions in foreign currency are recorded using the exchange rates
on the date of accruing of the transaction. Balances in the form of
current assets and current liabilities outstanding on the date of
Balance Sheet are converted at the appropriate exchange rate as on the
date of balance sheet. Exchange difference arising out of fluctuation
in exchange rate is accounted for on realisation comparing the same
with initial transaction amount or converted amount on the date of
Balance Sheet comparing original amount as the case may be.
Mar 31, 2013
1. The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India and
comply in all material respects with the accounting standards notified
under the Companies (Accounting standards) Rules,2006 as amended and
the relevant provisions of Companies Act,1956. The financial statements
have been prepared on an accrual basis and under the historical cost
convention excepting revalued assets.
2. Fixed assets are stated at cost, net of accumulated depreciation.
The cost comprises purchase price, borrowing costs if capitalisation
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price. Subsequent
expenditure is added to book value only if it increases the future
benefits from the existing asset.
3. Depreciation on fixed assets is calculated on the straight line
basis using the rates prescribed in Schedule XIV to the Companies
Act,1956.Assets costing upto Rs.5000/ are written off on pro-rata basis
in the year of acquisition.
4. Stock in trade is valued at lower of cost and net realisable value.
5. Sales Value is inclusive of Excise Duty but exclusive of VAT . Sale
is recognised on removal of goods from factory .
6. Transactions in foreign currency are recorded using the exchange
rates on the date of accruing of the transaction. Balances in the form
of current assets & current liabilities outstanding on the date of
Balance Sheet are converted at the appropriate exchange rate as on the
date of balance sheet. Exchange difference arising out of fluctuation
in exchange rate is accounted for on realisation comparing the same
with initial transaction amount or converted amount on the date of
Balance Sheet comparing original amount as case may be.
7. Government grants are accounted for on its becoming reasonably
certain that the ultimate collection will be made
8. Provision for income tax is made on the basis of prevailing laws
and rates applicable for the relevant assessment year. Deferred
taxation is recognised for all the timing differences subject to the
consideration of prudence and virtual certainty in respect of deferred
tax assets in accordance with the accounting standared 22 " Accounting
for taxation of income" issued by the Institute of Chartered
Accountants of India.
9. Employee Benefits:
a. PF and ESI are paid as per provisions of relevant statutes with the
authorities of respective state. a n d are charged to statement of
Profit and Loss in the year to which it relates.
b. Gratuity being defined contribution is accounted for on accrual
basis in accordance with the Payment of Gratuity Act,1972
c. Accumulated leaves being short term compensated leaves are provided
for in the year of becoming due.
Mar 31, 2012
1. The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India and
comply in all material respects with the accounting standards notified
under the Companies (Accounting standards) Rules,2006 as amended and
the relevant provisions of Companies Act,1956. The financial statements
have been prepared on an accrual basis and under the historical cost
convention excepting revalued assets.
2. During the year ended 31st March, 2012, the revised Schedule VI
notified under Companies Act,1956, has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised schedule VI, does not impact recognition and
measurement principles followed for preparation of financial
statements. However it has significant impact on presentation and
disclosures made in financial statements. The company has also
reclassified the previous year figures in accordance with the
requirements applicable in current year.
3. Fixed assets are stated at cost, net of accumulated depreciation.
The cost comprises purchase price , borrowing costs if capitalisation
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price. Subsequent
expenditure is added to book value only if it increases the future
benefits from the existing asset.
4. Depreciation on fixed assets is calculated on the straight line
basis using the rates prescribed in Schedule XIV to the Companies
Act,1956.Assets costing upto Rs.5000/- are written off on pro-rata
basis in the year of acquisition.
5. Stock in trade is valued at lower of cost and net realisable value.
6. Sales Value is inclusive of Excise Duty but exclusive of VAT . Sale
is recognised on removal of goods from factory
7. Transactions in foreign currency are recorded using the exchange
rates on the date of accruing of the transaction. Balances in the form
of current assets and current liabilities outstanding on the date of
Balance Sheet are converted at the appropriate exchange rate as on the
date of balance sheet. Exchange difference arising out of fluctuation
in exchange rate is accounted for on realisation comparing the same
with initial transaction amount or converted amount on the date of
Balance Sheet comparing original amount as the case may be.
8. Government grants are accounted for on its becoming reasonably
certain that the ultimate collection will be made.
9. Provision for income tax is made on the basis of prevailing laws
and rates applicable for the relevant assessment year. Deferred
taxation is recognised for all the timing differences subject to the
consideration of prudence and virtual certainty in respect of deferred
tax assets in accordance with the accounting standared 22 " Accounting
for taxation of income" issued by the Institute of Chartered
Accountants of India.
10. Employee Benefits:
a PF and ESI are paid as per provisions of relevant statutes with the
authorities of respective state and are charged to statement of Profit
and Loss in the year to which it relates.
b. Gratuity being defined contribution is accounted for on accrual
basis in accordance with the Payment of Gratuity Act,1972
c. Accumulated leaves being short term compensated leaves are provided
for in the year of becoming due.
Mar 31, 2010
1 SYSTEM OF ACCOUNTING
The Company follows Mercantile System of accounting.
2 FIXED ASSETS
Fixed Assets are stated at historical cost inclusive of all incidental
expenses incurred for acquition of such assets.
3 INVESTMENTS
Investments are classified into current investment and long term
investment. Current investments are value at cost or market price
whichever is lower. Long term investments are valued at cost. Provision
for diminution in value is made script wise to recognize a decline,
other than temporary.
4 INVENTORIES
Stock of shares is valued at cost or market value whichever is lower.
Stock of traded items is valued at cost. Raw materials, stores,
consumables, packing materials and stocks in process are valued at
cost. Finished goods is valued at cost or market value whichever is
lower.
5 RESEARCH & DEVELOPMENT COSTS & INTERNALLY GENERATED INTANGIBLE ASSETS
a. Expenditure up to research stage is charged as expenditure in the
respective heads of expenditure in the Profit & Loss Account of the
relevant accounting period.
b. Development expenditure of molecule is treated as internally
generated intangible assets where it is probable of flowing future
economic benefits to the Company and amortize the same over a period of
five years equally on straight line basis after the assets start giving
economic benefits. Such assets are derecognized on disposal or when no
future economic benefits are expected from its use/subsequent disposal.
6 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded using the exchange rates
on the date of accruing of transaction. Balances in the form of current
assets & current liabilities outstanding on the date of Balance Sheet
are converted at the appropriate exchange rate as on the date of
Balance Sheet. Exchange difference arising out of fluctuation in
exchange rate is accounted for on realization comparing the same with
initial transaction amount or converted amount on the date of Balance
Sheet comparing original amount as the case may be.
7 GOVERNMENT GRANTS
Government grants are accounted for on its becoming reasonably certain
that the ultimate collection will be made.
8 DEPRECIATION
a. Depreciation is provided on straight line method at the rate
specified and in accordance with the provisions of Schedule XIV to the
Companies Act, 1956 on pro-rate basis.
b. Construction on assets taken on lease is written off over the
period of lease.
9 MISCELLANEOUS EXPENDITURE
a. The Company amortizes expenditure in relation to its share issue
including preliminary expenditure equally over a period of ten years
b. Expenses incurred on or after April 01, 2003 are charged to revenue
in the year in which expenses are incurred in confor- mity with
accounting standard AS-26 Intangible Assets.
10 TAXATION
Provision for income-tax is made on the basis of prevailing laws and
rates applicable for the relevant assessment year. Deferred taxation
is recognized for all the timing differences subject to the
consideration of prudence in respect of deferred tax assets in
accordance with the accounting standard no. 22 Accounting for taxes on
Income issued by the Institute of Chartered Accountants of India.
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