Mar 31, 2018
Significant accounting policies
(a) Basis of preparation
(i) Compliance with Ind AS
The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind As) notified under Section 133 of the Companies Act,2013 (the Act) read with [companies (Indian Accounting Standards) Rules,2015] and Companies (Indian Accounting Standards) Amendnent Rule 2016 and other relevant provisions of the Act.
The financial statements up to year ended March 31, 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
These financial statements are the first financial statements of the Company under Ind AS. Refer note 32 for an explanation of how the transition from previous GAAP to Ins AS has affected the Companyâs financial position, financial performance and cash flows.
The financial statements have been prepaired on accrual and going concern basis. The accounting policies are applied consistantly to all the periods presented in the financial statements. All assets and liabilities have been classified as current and non current as per the Companieâs normal operating cycle assertained as 12 months for the purpose by the Company.
(ii) Historical cost convention
The financial statements have been prepared on unless otherwise indicated.
(b) Key estimates and assumptions
In preparing these financial statements in accordance with Ind AS, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts in the balance sheet and statement of profit and loss, actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognozed prospectively.
Judgment, estimates and assumptions are required in particular for:
(i) Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of acturial assumptions. Key acturial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate determined by refrence to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the postemployment benefit obligations.
(ii) Recognition and measurement of other provisions
The recognition and measurement of other provisions are based based on the assessment of the probability of an outflow of resources, and on past experience and circumstances know at the balance sheet date. The actual outflow of resources at a future date may therefore, vary from the amount included in other provisions.
(c) Foreign currency translation
Function and presentation currency
Item inclued in the financial statements of the Company are measured using the currency of the primary economic enviornment in which the entity operates (âthe functional currencyâ). The Indian Rupee () is the functional and presentation currency of the company.
Transaction and balances
Foreign currency transaction are translated into the respective functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transaction and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in profit or loss.
Foreign exchange differences regards as an adjustment to borrowing costs are presented in the statement of profit and loss, whithin finance cost. All other foreign exchange gains and losses are presented in the statements of profit and loss on a net basis within loss on exchange rates & forward Exchange Contracts. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
(d) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable after deduction of any trade discounts and net of returns, rebates, and any taxes or duties collected on behalf of the government which are lavied on sales such as Sales Tax, VAT, Goods and Service Tax etc.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when significant risks and rewards of ownership in the goods are transferred to the buyer.
Income from services rendered is recognised based on agreements/ arrangements with the customers as the service is performed in propotion to the stage of complition of the transaction at the reporting date and the amount of revenue can be measured reliably.
(e) Income tax
The income tax expenses or credit for the period is the tax payable on the current periodâs taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in India. Management periodically evaluates positions taken in tax returns whith respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally inforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally inforceable right to offset and intends aither to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other conprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
(f) Financial Assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through statement of profit and loss), and
- those measured at amortised cost.
(ii) Initial recognition & measurement
At initial recognition, the Company measures a financial asset at fair value plus, in the case of a financial asset not recorded at fair value through profit or loss, trandsaction costs that are attributable to the acquisition of the financial asset.
(iii) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial asset) is primarily derecognised (i.e. removed from the Companyâs balance sheet) when:
- The rights to receive cash flows from the asset have expired, or
- The Company has transferred its rights to receive cash flows from the assets or has assumed an obligation to pay the received cash flows in full without material delay to a third party; and either (a) the Company has tranferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither tranferred nor retained substantially all of thr risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Companyâs continuing involvement. In that case, the Companyalso recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that Compant has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
(iv) Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
- Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debts securities, deposits, and bank balance.
- Trade receivables - The application of simplified approch does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on life time ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the sanctioned credir limits, security like letters of credit, security deposit collected etc. and expectations about future cash flows.
(g) Financial liabilities
(i) Classification
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered in to and the definitions of a financial liability and an equity instrument. The Company classified all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(ii) Initial recognition and measurement
Financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable and incremental transaction cost.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or cost that are integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
The Companyâs financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts.
(iii) Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
(h) Impairment of assets
Integible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assetâs carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assetâs fair value less cost of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
(i) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (âCODMâ) of the company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and Chief Operating Officer of the Company. The Company has identified only one segment i.e. Manufacturing of distribution and power transformers as reporting segment based on the information reviewed by CODM.
(j) Inventories
Raw materials and stores, work in progress, traded and finished goods
Raw materials and stores, work in progress, traded and finished goods are stated at the lower of cost and net realisable value. Cost of raw materials and traded goods comprises cost of purchases. Cost of work in progress and finished goods camprises direct materials, direct labour and an appropriate proportion of veriable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis of weighted average price. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
(k) Property, plant and equipment
Freehold land is carries at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated whith the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at April 1, 2017 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives specified in schedule II of the Companies Act, 2013.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
An assetâs carrying amount is written down immediately to its recoverable amount if the assetâs carrying amount is greather than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other gains/(losses).
(l) Intangible assets
Company has no intangible assets.
(i) Research and development
Revenue expenditure on research & development is charged to the statement of Profit and Loss of the year in which it is incurred.
(m) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substancial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
(n) Provisions
Provisions for legal claims, volume discounts and returns are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provision are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably not, require an outflow of resources. When there is a possible obligation of a present obligation in respect of which the liklihood of outflow of resources is remote, no provision disclosure is made.
A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable.
(o) Employee benefits
(i) Short term obligations
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditinal right todefer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to accrue.
(iii) Post-employment obligations:-
The company operated the followings post-employments schemes:
(a) Defined benefits plans such as gratuity, and
(b) Defined contribution plan such as provident fund.
Gratuity obligations
The following post - employment benefit plans are covered under the defined benefit plant:
Gratutity :
The Companyâs net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The Company has a scheme with Life Insurance Corporation of India for payment of gratuity liability. The annual premium paid/payable as per the acturial calculation made by the agency is charged as an expense to the statement of profit and loss. The Company has no further defined obligation beyond the contribution.
Defined contribution plan
The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for a defined contribution plans and the contributions are recognised as employee benefit expense when they are due.
(p) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distribted at the end of the reprting period.
(q) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at the banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Companyâs cash management.
(r) Earning per share
(i) Basic earning per share
Basic earning per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
(ii) Diluted earning per share
Diluted earning per share adjusted the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potencial equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potencial equity shares.
(s) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees as per the requirement of schedule III, unless otherwise stated.
Mar 31, 2016
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on historical cost convention and on accrual method of accounting in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company.
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 the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates, if any, are recognized in the period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production/ up to the date the asset is put to use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion. All costs, including costs till commencement of commercial production net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.
E. Depreciation and Amortization
Depreciation on fixed assets has been provided on SLM in the manner provided in schedule II of The Companies Act, 2013.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the yearend are restated at the yearend rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are stated at cost. Provision for diminution in the value of investments is made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Scrap material is valued at net realizable value.
J. Revenue Recognition
"Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of goods, services, sales tax, service tax and excise duty adjusted for discount (net) and Value Added Tax (VAT). Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable or as certified by financial institution.âFor construction contracts revenue is recognized on percentage completion method based on the percentage of actual cost incurred up to the reporting dte to the total estimated cost of the contract. Income from erection, commissioning and other project management services is recognized on work done based on percentage of completion method."
K. Employee Benefits
(i) Short-term employee benefits are recognized as an expenses at the undiscounted amount in the profit and loss account in the year in which the related service is rendered and as per the policy consistently followed by the Company.
(ii) The gratuity liability in respect of employees of the company has been covered through LIC policy, the annual premium paid/ payable for such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognized in accounts based on management''s assessment of the probable outcomes with reference to the available information supplemented by experience of similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or variation in contract work are recognized as revenue only when there are conditions in the contracts for such claims or variations and/or evidence of the acceptability of the same from customers. However, escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. All other borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from âtiming differenceâ between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that is a virtual certainty that the asset will be realized in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
Mar 31, 2015
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
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 the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets has been provided on SLM in the manner
provided in schedule II of The Companies Act, 2013.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised
over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Ta x (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting date to the total estimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benefites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendered and as per the policy consistently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management's assessment of the probable outcomes with
reference to the available information supplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of
resources.Contingent Liabilities are not recognised but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
Mar 31, 2014
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
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 the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets acquired upto 31/03/1996 has been provided
on WDV method at the rates prescribed in the schedule "XIV" of The
Companies Act, 1956. Depreciation on assets acquired after 01/04/1996
has been provided on SLM in the manner provided in schedule "XIV" of
The Companies Act, 1956 and no depreciation has been charged on the
assets sold during the year.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recognised over
the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financial
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting date to the total estimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benefits are recognised as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendered and as per the policy consistently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management''s assessment of the probable outcomes with
reference to the available information supplemented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2013
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
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 the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets acquired upto 31/03/1996 has been provided
on WDV method at the rates prescribed in the schedule "XIV" of The
Companies Act, 1956. Depreciation on assets acquired after 01/04/1996
has been provided on SLM in the manner provided in schedule "XIV" of
The Companies Act, 1956 and no depreciation has been charged on the
assets sold during the year.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing'' on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised
over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost. Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting date to the total estimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benef ites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendered and as per the policy consistently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC poijcy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management''s assessment of the probable outcomes with
reference to the available information supplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims eta, if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of
resources.Contingent Liabilities are not recognised but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
Mar 31, 2012
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
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 the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets acquired upto 31/03/1996 has been provided
on WDV method at the rates prescribed in the schedule ÃXIVÃ of The
Companies Act, 1956. Depreciation on assets acquired after 01/04/1996
has been provided on SLM in the manner provided in schedule ÃXIVÃ of
The Companies Act, 1956 and no depreciation has been charged on the
assets sold during the year.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised
over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition
of fixed assets, in which case they are adjusted to the carrying cost
of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting dte to the total etimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benefites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendred and as per the policy consitently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management's assessment of the probable outcomes with
reference to the available information suplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the
Income-tax Act, 1961. Deferred tax resulting from Ãtiming differenceÃ
between taxable and accounting income is accounted for using the tax
rates and laws that are enacted or substantively enacted as on the
balance sheet date. Deferred tax asset is recognised and carried
forward only to the extent that is a virtual certainty that the asset
will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of
resources.Contingent Liabilities are not recognised but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
Mar 31, 2011
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule ÃXIVÃ to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule ÃXIVÃ and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :- In accordance with
Accounting Standard (AS-7) on construction contracts, issued by the
ICAI, income on contracts of project execution are accounted on
Ãpercentage of completionà basis measured by the proportion of cost
incurred to the estimated total cost of the project.
(D) INVENTIORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(E) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation and Gratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
Mar 31, 2010
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule ÃXIVÃ to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule ÃXIVÃ and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :-
In accordance with Accounting Standard (AS-7) on construction
contracts, issued by the ICAI, income on contracts of project execution
are accounted on Ãpercentage of completionà basis measured by the
proportion of cost incurred to the estimated total cost of the project.
(D) INVENTORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(E) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation and Gratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
Mar 31, 2009
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule "XIV" to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule "XIV" and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :-
In accordance with Accounting Standard (AS-7) on construction
contracts, issued by the ICAI, income on contracts of project execution
are accounted on "percentage of completion" basis measured by the
proportion of cost incurred to the estimated total cost of the project.
(D) INVENTORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(D) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation andGratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
Mar 31, 2008
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule "XIV" to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule "XIV" and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :-
In accordance with Accounting Standard (AS-7) on construction
contracts, issued by the ICAI, income on contracts of project execution
are accounted on "percentage of completion" basis measured by the
proportion of cost incurred to the estimated total cost of the project.
(D) INVENTORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(E) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation andGratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
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