Mar 31, 2014
1 Accounting Convention
The financial statements are prepared under historical cost convention and on an accrual basis in accordance with the generally accepted accounting principles.
2 Fixed Assets
Fixed Assets are stated at cost net of depreciation provided in the statements. Cost of acquisition of Fixed Assets is inclusive of all direct and indirect expenditure up to the date of commercial use.
Depreciation is provided on straight line method in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956
Raw material and Stores and Spares valued at cost on weighted average basis. Stock-in-process and Finished Goods are valued at lower of cost or net realisable value.
4 Borrowing Cost
Borrowing costs that are directly attributable to the acquisition of fixed assets are capitalised as part of cost of the asset till the date the asset is ready for commercial use. All other borrowing cost are charge to revenue
Investments are stated at cost and diminution in the value, which is permanent in nature, is provided for.
6 Contingent Liabilities And Provisions
All Contingent liabilities are indicated by way of a note and will be paid / provided on crystalisation.
7 Retirement Benefits
Provident fund contributions is charged to the Statement of Profit and Loss as and when the contributions are due. Gratuity and leave encashment provision is made as per actuarial valuation on the basis of projected unit credit method.
8 Foreign Exchange Transactions
Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. Assets and liabilites arising out of foreign exchange transactions are translated at the rate of exchange ruling on the date of balance sheet. and are suitably adjusted to the appropriate revenue/ capital account.
9 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 statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods, is reversed if there has been a change in the estimate of recoverable amount.
10 Provision For Taxation
Provision for taxation for the year is based on tax liability computed in accordance with relevant tax rates and tax laws as at the Balance Sheet date. Provision for deferred tax is made for all timing differences arising between taxable income and accounting income at rates that have been enacted or substantively enacted as at the Balance Sheet date. Deferred tax assets are recognised only if there is a reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each Balance Sheet date.
11 Revenue recognition
Sales represents the amount receivable for goods sold. Incentives on export sales are recognised as income on accrual basis
12 Earning Per Share
Earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
13 Use Of Estimates
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. Differences between the actual results and estimates are recognised in the period in which the results are known/materialised.