Accounting Policies of Carysil Ltd. Company
Mar 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
These financial statements are the separate financial
statements of the Company (also called standalone
financial statements) prepared in accordance with the
Indian Accounting Standards (''Ind AS'') notified under
section 133 of the Companies Act, 2013, read together
with the Companies (Indian Accounting Standards)
Rules, 2015, as applicable.
The financial statements have been prepared on
accrual and going concern basis. The accounting
policies are applied consistently to all the periods
presented in the financial statements. All assets
and liabilities have been classified as current or
non current as per the Company''s normal operating
cycle and other criteria as set out in the Division
II of Schedule III to the Companies Act, 2013. The
Company adopts operating cycle based on the project
period and accordingly, all project related assets and
liabilities are classified into current and non-current.
The Company considers 12 months as normal
operating cycle.
The Company''s financial statements are reported in
Indian Rupees, which is also the Company''s functional
currency, and all values are rounded to the nearest
lacs except otherwise indicated.
A. Significant accounting policies:
a. System of accounting
The financial statements of the Company
are prepared in accordance with Indian
Accounting Standards (Ind AS), under the
historical cost convention on the accrual
basis as per the provisions of Companies
Act, 2013 (''''Act"), except in case of
significant uncertainties.
The Company presents assets and liabilities
in the balance sheet based on current/non-
current classification. It is held primarily for
the purpose of being traded:
⢠It is expected to be realised within 12
months after the reporting date;
⢠It is cash or cash equivalent unless it
is restricted from being exchanged or
used to settle a liability for at least 12
months after the reporting date.
⢠All other assets are classified as non¬
current.
⢠A liability is classified as current when
it satisfies any of the following criteria:
⢠It is expected to be settled in the
Company''s normal operating
cycle;
⢠It is held primarily for the purpose
of being traded;
⢠It is due to be settled within 12
months after the reporting date;
⢠There is no unconditional right to
defer the settlement of the liability
for at least twelve months after
the reporting period.
⢠All other liabilities are classified as
non-current.
⢠Deferred tax assets and liabilities are
classified as non-current only.
b. Key accounting estimates
The preparation of the financial statements,
in conformity with the recognition and
measurement principles of Ind AS, requires
the management to make estimates and
assumptions in the application of accounting
policies that affect the reported amounts
of assets, liabilities, income, expenses and
disclosure of contingent liabilities as at
the date of financial statements and the
results of operation during the reported
period. Although these estimates are based
upon management''s best knowledge of
current events and actions, actual results
could differ from these estimates which are
recognised in the period in which they are
determined.
The Company based its assumptions and
estimates on parameters available when
the financial statements were prepared.
Existing circumstances and assumptions
about future developments, however,
may change due to market changes or
circumstances arising that are beyond the
control of the Company. Such changes 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 the financial statements.
Estimates and judgements are regularly
revisited. Estimates are based on historical
experience and other factors, including
futuristic reasonable information that may
have a financial impact on the Company.
c. Property, plant and equipment
(i) Property, plant and equipment are
stated at historical cost of acquisition
(except for certain class of assets which
are measured at fair value on transition
date to Ind AS i.e April 01, 2017 as
deemed cost) including attributable
interest and finance costs, if any, till the
date of acquisition/installation of the
assets less accumulated depreciation
and accumulated impairment losses, if
any.
(ii) Subsequent expenditure relating
to property, plant and equipment is
capitalised only when it is probable
that future economic benefits
associated with the item will flow to the
Company and the cost of the item can
be measured reliably. All other repairs
and maintenance costs are charged
to the statement of profit and loss as
incurred.
(iii) The cost and related accumulated
depreciation are eliminated from
the financial statements, either on
disposal or when retired from active
use and the resultant gain or loss are
recognised in the statement of profit
and loss.
(iv) Capital work-in-progress, representing
expenditure incurred in respect of
assets under development and not
ready for their intended use, are
carried at cost. Cost includes related
acquisition expenses, construction
cost, related borrowing cost and other
direct expenditure.
(v) The Company depreciates property,
plant and equipment on written down
value method except for buildings,
plant & equipment and dies & moulds
where depreciation is provided on
straight line method over the estimated
useful life prescribed in Schedule II of
the Companies Act, 2013 from the date
the assets are ready for intended use
after considering the residual value.
(vi) Intangible assets mainly represent
implementation cost for software and
other application software acquired/
developed for in-house use and design
and property rights of the Company.
These assets are stated at cost. Cost
includes related acquisition expenses,
related borrowing costs, if any, and
other direct expenditure.
(vii) Items of stores and spares that meet
the definition of property, plant and
equipment are capitalised at cost
and depreciated over their useful life.
Otherwise, such items are classified as
inventories.
(viii) Losses arising from the retirement
of and gains or losses arising from
disposal of property, plant and
equipment which are carried at cost
are recognised in the Statement of
Profit and Loss.
(ix) Property, plant and equipment and
intangible 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 asset''s carrying amount
exceeds its recoverable amount. The
recoverable amount is the higher of an
asset''s fair value less costs 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).
d. Investments and financial assets
(i) Investments in subsidiary companies
Investments in subsidiary companies
are recognised at cost and not
adjusted to fair value at the end of
each reporting period. Cost represents
amount paid for acquisition of the said
investments.
The Company assesses at the end of
each reporting period, if there is any
indication that the said investments
may be impaired. If so, the Company
estimates the recoverable value of
the investments and provides for
impairment, if any, i.e. the deficit in the
recoverable value over cost.
(ii) Other investments and financial assets
Financial assets are recognised
when the Company becomes a party
to the contractual provisions of the
instrument.
On initial recognition, a financial asset
is recognised at fair value, in case of
financial assets which are recognised
at fair value through profit and loss
(FVTPL), its transaction costs are
recognised in the statement of profit
or loss. In other cases, the transaction
costs are attributed to the acquisition
value of financial asset. However,
trade receivables that do not contain
a significant financing component are
measured at transaction price.
Financial assets are subsequently
classified measured at -
- amortised cost
- fair value through profit and loss
(FVTPL)
- fair value through other
comprehensive income (FVOCI).
Financial assets are not reclassified
subsequent to their recognition except
if and in the period the Company
changes its business model for
managing financial assets.
Financial asset is derecognised only
when the Company has transferred the
rights to receive cash flows from the
financial asset. Where the entity has
transferred the asset, the Company
evaluates whether it has transferred
substantially all risks and rewards
of ownership of the financial asset.
In such cases, financial asset is
derecognised.
In accordance with Ind AS 109, the
Company applies the expected credit
loss ("ECL") model for measurement
and recognition of impairment loss
on financial assets and credit risk
exposures. The Company follows
''simplified approach'' for recognition
of impairment loss allowance on
trade receivables. Simplified approach
does not require the Company to
track changes in credit risk. Rather, it
recognises impairment loss allowance
based on lifetime ECL at each reporting
date, right from its initial recognition.
For recognition of impairment loss
on other financial assets and risk
exposure, the Company determines
that whether there has been a
significant increase in the credit risk
since initial recognition.
e. Inventories
(i) Raw materials and stores and spares
are valued at weighted average cost
including all charges in bringing the
materials to the present location.
(ii) Finished and work-in-progress are
valued at the cost plus direct expenses
and appropriate value of overheads or
net realisable value, whichever is lower.
(iii) Obsolete, slow moving and defective
inventories are written off/valued at
net realisable value during the year as
per policy consistently followed by the
Company.
f. Cash and bank balances
Cash and equivalents:
Cash and cash equivalents in the balance
sheet comprises of balance with banks and
cash on hand and short term deposits with
an original maturity of three month or less,
which are subject to insignificant risks of
changes in value.
Other bank balances:
Other bank balances include deposits
with maturity less than twelve months but
greater than three months and balances
and deposits with banks that are restricted
for withdrawal and usage.
g. Trade receivables
A receivable is classified as a trade
receivable if it is in respect of the amount
due on account of goods sold or services
rendered in the normal course of business.
Trade receivables are recognised initially
at their transaction price and subsequently
measured net of any expected credit losses.
h. Equity instruments:
An equity instrument is any contract that
evidences a residual interest in the assets
of the Company after deducting all of its
liabilities. Equity instruments which are
issued for cash are recorded at the proceeds
received, net of direct issue costs.
i. Financial liabilities
(i) Financial liabilities are recognised
when the Company becomes a party
to the contractual provisions of the
instrument. Financial liabilities are
initially measured at the amortised
cost unless at initial recognition, they
are classified as fair value through
profit and loss.
(ii) Financial liabilities are subsequently
measured at amortised cost using the
Effective Interest Rate (EIR) method.
Financial liabilities carried at fair value
through profit and loss are measured
at fair value with all changes in fair
value recognised in the statement of
profit and loss.
(iii) Financial liabilities are derecognised
when the obligation specified in the
contract is discharged, cancelled or
expires.
j. Trade payables
A payable is classified as a trade payable if it
is in respect of the amount due on account of
goods purchased or services received in the
normal course of business. These amounts
represent liabilities for goods and services
provided to the Company prior to the end of
the financial year which are unpaid. These
amounts are unsecured and are usually
settled as per the payment terms. Trade
and other payables are presented as current
liabilities unless payment is not due within
12 months after the reporting period.
k. Revenue recognition
(i) Revenue shall be recognised to depict
the transfer of promised goods or
services to customers in an amount
that reflects the consideration to
which the entity expects to be entitled
in exchange for those goods and
services.
(ii) Revenue is measured based on
transaction price, which is the fair
value of the consideration received
or receivable, stated net of discounts,
return and goods & service tax.
Transaction price is recognised based
on the price specified in the contract,
net of the estimated sales incentives/
discounts.
(iii) Accumulated experience is used to
estimate and provide for the discounts/
rights of return, using the expected
value method.
(iv) A return liability is recognised to
expected return in relation to sales
made corresponding assets are
recognised for the products expected
to be returned.
(v) The Company recognises as an asset,
the incremental costs of obtaining
a contract with a customer, if the
Company expects to recover those
costs. The said asset is amortised on
a systematic basis consistent with the
transfer of goods or services to the
customers.
l. Custom duty and GST:
Purchase of goods and fixed assets are
accounted for net of GST input credits.
Custom duty paid on paid on import of
materials is dealt with in respective material
accounts.
m. Foreign currency transactions
(i) Items included in the financial
statements are measured using
the currency of primary economic
environment in which the Company
operates ("the functional currency").
The financial statements are presented
in Indian Rupee (INR), which is the
Company''s functional and presentation
currency.
(ii) Foreign currency transactions are
initially recorded in the reporting
currency at foreign exchange rate on
the date of the transaction.
(iii) Monetary items of current assets
and current liabilities denominated in
foreign currencies are reported using
the closing rate at the reporting date.
Non-monetary items which are carried
in terms of historical cost denominated
in a foreign currency are reported using
the exchange rate at the date of the
transaction.
(iv) The gain or loss on decrease/
increase in reporting currency due to
fluctuations in foreign exchange rates
are recognised in the statement of
profit or loss.
n. Employee benefit expenses
(i) Contributions to defined contribution
schemes such as provident fund,
employees'' state insurance, labour
welfare fund etc. are charged as an
expense based on the amount of
contribution required to be made as
and when services are rendered by
the employees. These benefits are
classified as defined contribution
schemes as the Company has no
further obligations beyond the monthly
contributions.
(ii) The Company provides for gratuity
which is a defined benefit plan, the
liabilities of which are determined
based on valuations, as at the reporting
date, made by an independent actuary
using the projected unit credit method.
Re-measurement comprising of
actuarial gains and losses, in respect
of gratuity are recognised in the other
comprehensive income in the period in
which they occur. The classification of
the Company''s obligation into current
and non-current is as per the actuarial
valuation report.
(iii) The employees are entitled to
accumulate leave subject to certain
limits, for future encashment and
availment, as per the policy of the
Company. The liability towards such
unutilised leave as at the end of each
balance sheet date is determined based
on independent actuarial valuation and
recognised in the statement of profit
and loss.
(iv) Employee Share based Payments:
The Company operates equity settled
share-based plan for the employees
(Referred to as employee stock option
plan (ESOP)). ESOP granted to the
employees are measured at fair value
of the stock options at the grant date.
Such fair value of the equity settled
share-based payments is recognised
as expense on a straight-line basis
over the vesting period, based on
the Company''s estimate of equity
shares that will eventually vest, with
a corresponding increase in equity
(employee stock option reserve).
At the end of each reporting period,
the Company revises its estimate of
number of equity shares expected to
vest.
Fair value of the ESOP granted to the
employees of subsidiary companies
are considered as capital contribution
by the parent company on a straight¬
line basis over the vesting period which,
will be adjusted by any recharge in the
subsequent years by the subsidiary
companies.
o. Leases
The Company, as a lessee, recognises a
right-of-use asset and a lease liability for
its leasing arrangements, if the contract
conveys the right to control the use of an
identified asset.
The contract conveys the right to control
the use of an identified asset, if it involves
the use of an identified asset and the
Company has substantially all of the
economic benefits from use of the asset
and has right to direct the use of the
identified asset. The cost of the right-of-
use asset shall comprise of the amount of
the initial measurement of the lease liability
adjusted for any lease payments made at
or before the commencement date plus
any initial direct costs incurred. The right-
of-use assets is subsequently measured
at cost less any accumulated depreciation,
accumulated impairment losses, if any and
adjusted for any remeasurement of the
lease liability. The right-of-use assets is
depreciated using the straight-line method
from the commencement date over the
shorter of lease term or useful life of right-
of-use asset.
Mar 31, 2018
1.1 Significant accounting policies:
a. System of accounting
The Company follows mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties. These financial statements are prepared under the historical cost convention unless otherwise indicated.
b. Key accounting estimates
The preparation of the financial statements, in conformity with the recognition and measurement principles of Ind AS, requires the m a n a gem e n t to m a ke e sti m a te s a n d assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent liabilities as at the date of financial statements and the results of operation during the reported period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates which are recognised in the period in which they are determined.
The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes 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 the financial statements.
c. Property, plant and equipment
(i) Property, plant and equipment are stated at historical cost of acquisition including attributable interest and finance costs, if any, till the date of acquisition/installation of the assets less accumulated depreciation and accumulated impairment losses, if any.
(ii) Subsequent expenditure relating to property, plant and equipment is capitalised only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the statement of profit and loss as incurred.
(iii) The cost and related accumulated depreciation are eliminated from the financial statements, either on disposal or when retired from active use and the resultant gain or loss are recognised in the statement of profit and loss.
(iv) Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their intended use, are carried at cost. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure.
(v) On transition to Ind AS, the Company has opted to continue with the carrying values measured under the previous GAAP as at 1st April 2016 of its property, plant and equipment and use that carrying value as the deemed cost of the property, plant and equipment on the date of transition i.e. 1st April 2016 except for certain class of assets which are measured at fair value as deemed cost.
(vi) The Company depreciates property, plant and equipment on written down value method except for buildings, plant & equipment and dies & moulds where depreciation is provided on straight line method over the estimated useful life prescribed in Schedule II of the Companies Act, 2013 from the date the assets are ready for intended use after considering the residual value.
(vii) Intangible assets mainly represent implementation cost for software and other application software acquired/developed for in-house use and design and property rights of the Company. These assets are stated at cost. Cost includes related acquisition expenses, related borrowing costs, if any, and other direct expenditure.
(viii) Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life. Otherwise, such items are classified as inventories.
d. Investments and financial assets
(i) Investments in subsidiary companies
Investments in subsidiary companies is recognised at cost and not adjusted to fair value at the end of each reporting period. Cost represents amount paid for acquisition of the said investments.
The Company assesses at the end of each reporting period, if there is any indication that the said investments may be impaired. If so, the Company estimates the recoverable value of the investments and provides for impairment, if any, i.e. the deficit in the recoverable value over cost.
Upon first-time adoption of Ind AS, the Company has elected to measure these investments at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e., 1st April, 2016.
(ii) Other investments and financial assets
Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.
On initial recognition, a financial asset is recognised at fair value. In case of financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction costs are recognised in the statement of profit or loss. In other cases, the transaction costs are attributed to the acquisition value of financial asset.
Financial assets are subsequently classified measured at -
- amortised cost
- fair value through profit and loss (FVTPL)
- fair value through other comprehensive income (FVOCI).
Financial assets are not reclassified subsequent to their recognition except if and in the period the Company changes its business model for managing financial assets.
Financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset. Where the entity has transferred the asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, financial asset is derecognised.
In accordance with Ind AS 109, the Company applies the expected credit loss ("ECL") model for measurement and recognition of impairment loss on financial assets and credit risk exposures. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition.
e. Inventories
(i) Raw materials and stores and spares are valued at weighted average cost including all charges in bringing the materials to the present location.
(ii) Finished and work-in-progress are valued at the cost plus direct expenses and appropriate value of overheads or net realizable value, whichever is lower.
(iii) Obsolete, slow moving and defective inventories are written off/valued at net realisable value during the year as per policy consistently followed by the Company.
f. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprises of balance with banks and cash on hand and short term deposits with an original maturity of three month or less, which are subject to insignificant risks of changes in value.
g. Trade receivables
A receivable is classified as a trade receivable if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. Trade receivables are recognised initially at fair value and subsequently measured net of any expected credit losses.
h. Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments which are issued for cash are recorded at the proceeds received, net of direct issue costs.
i. Financial liabilities
(i) Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and loss.
(ii) Financial liabilities are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Financial liabilities carried at fair value through profit and loss are measured at fair value with all changes in fair value recognised in the statement of profit and loss.
(iii) Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires.
j. Trade payables
A payable is classified as a trade payable if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. These amounts are unsecured and are usually settled as per the payment terms. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
k. Revenue recognition
(i) Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of excise duty, value added tax (VAT) or goods and service tax (GST) as applicable and returns, discounts, rebates and incentives. The Company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the Company.
(ii) Domestic sales are accounted for on dispatch from the point of sale corresponding to transfer of significant risks and rewards of ownership to the buyer.
(iii) Export sales are recognised on the date of the mate''s receipt/shipped on board signifying transfer of risks and rewards of ownership to the buyer as per terms of sales and initially recorded at the relevant exchange rates prevailing on the date of the transaction.
(iv) Export incentives are accounted for on export of goods if the entitlements can be estimated with reasonable accuracy and conditions precedent to claim are reasonably expected to be fulfilled.
(v) Revenue in respect of other income is recognised on accrual basis. However, where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.
l. Excise Duty, Custom Duty and GST:
Excise duty (applicable till 30th June 2017) in respect of goods manufactured by the Company is accounted for at the time of removal of goods from factory for sale.
Purchased of goods and fixed assets are accounted for net of GST input credits. Custom duty paid on import of materials is dealt with in respective material accounts.
m. Foreign currency transactions
(i) Items included in the financial statements are measured using the currency of primary economic environment in which the company operates ("the functional currency"). The financial statements are presented in Indian Rupee (INR), which is the company''s functional and presentation currency.
(ii) Foreign currency transactions are initially recorded in the reporting currency at foreign exchange rate on the date of the transaction.
(iii) Monetary items of current assets and current liabilities denominated in foreign currencies are reported using the closing rate at the reporting date. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
(iv) The gain or loss on decrease/increase in reporting currency due to fluctuations in foreign exchange rates are recognised in the statement of profit or loss.
n. Employee benefit expenses
(i) Contributions to defined contribution schemes such as provident fund, employees'' state insurance, labour welfare fund etc. are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. These benefits are classified as defined contribution schemes as the Company has no further obligations beyond the monthly contributions.
(ii) The Company provides for gratuity which is a defined benefit plan, the liabilities of which are determined based on valuations, as at the reporting date, made by an independent actuary using the projected unit credit method. Re-measurement comprising of actuarial gains and losses, in respect of gratuity are recognised in the other comprehensive income in the period in which they occur. The classification of the Company''s obligation into current and noncurrent is as per the actuarial valuation report.
(iii) The employees are entitled to accumulate leave subject to certain limits, for future encashment and availment, as per the policy of the Company. The liability towards such unutilised leave as at the end of each balance sheet date is determined based on independent actuarial valuation and recognised in the statement of profit and loss.
o. Leases
A lease is classified at the inception date as a finance lease or an operating lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Company has identified all its leases as operating leases.
Assets taken on operating lease
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.
p. Borrowing costs
Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Also, the effective interest rate amortisation is included in finance costs. Borrowing costs relating to acquisition, construction or production of a qualifying asset which takes substantial period of time to get ready for its intended use are added to the cost of such asset to the extent they relate to the period till such assets are ready to be put to use. All other borrowing costs are expensed in the statement of profit and loss in the period in which they occur.
q. Impairment of non financial assets
As at each reporting date, the Company assesses whether there is an indication that a non-financial asset may be impaired and also whether there is an indication of reversal of impairment loss recognised in the previous periods. If any indication exists, or when annual impairment testing for an asset is required, the Company determines the recoverable amount and impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through the statement of profit and loss.
r. Taxation
Income tax expense comprises current tax expense and the deferred tax during the year. Current and deferred taxes are recognised in the statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.
Current income tax is recognised based on the estimated tax liability computed after taking credit for allowances and exemptions in accordance with the Income Tax Act, 1961. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used.
The carrying amount of deferred tax is reviewed at each reporting date and measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
s. Provisions and contingent liabilities
The Company creates a provision when there is present obligation, legal or constructive, as a result of past events that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events. Contingent assets are neither recognised nor disclosed in the financial statements.
t. Earnings Per Share
(i) Basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
(ii) For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
u. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the operating decision makers. The decision makers regularly monitor and review the operating result of the whole Company. The activities of the Company primarily falls under a single segment of "manufacturing and trading of kitchen sinks and other appliances" in accordance with the Ind AS 108 "Operating Segments".
1.3 First-time adoption of Ind AS:
a. Transition to Ind AS
These are the Company''s first financial statements prepared in accordance with Ind AS.
The accounting policies as set out in note no. 1.2 above have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of an opening Ind AS balance sheet as at 1st April 2016 (the transition date). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in the financial statements prepared in accordance with the Accounting Standards notified under the Companies (accounting Standards) Rules, 2006 and other relevant provisions of the Act. An explanation of how transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.
b. Exemption and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS, which are considered to be material and significant.
(i) The Company has elected to measure items of property, plant and equipment at its Previous GAAP carrying value as on the date of transition to Ind AS except for certain class of assets which are measured at fair value as deemed cost.
(ii) Ind AS provides a one time option to a firsttime adopter either to measure its investment in subsidiaries companies as per previous GAAP carrying value or at fair value on the date of transition. The Company has elected to measure its investment in subsidiaries as per previous GAAP carrying value as on the date of transition to Ind AS.
(iii) On assessment of the estimates made under the previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those statements. However, estimates that were required under Ind AS but not required under previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.
(iv) Under Ind AS, remeasurements of postemployment benefit obligations, i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expenses on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the Previous GAAP, these remeasurements were forming part of the statement of profit and loss for the year. There is no impact on the total equity.
(v) Under Ind AS, all items of income and expenses recognised in a period should be included in the statement of profit and loss for the period, unless a standard requires or permits otherwise. Items of income and expenses that are not recognised in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans and tax effects thereon. The concept of other comprehensive income did not exist under the Previous GAAP.
c. Recent accounting pronouncements
Standards issued but not yet effective
In March, 2018 the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendments Rules, 2018, notifying Ind AS 115, Revenue from Contract with Customers, Appendix B to Ind AS 21, Foreign Currency transactions and advance consideration and amendments to certain other standards. These amendments are applicable to the Company from 1st April, 2018. The Company will be adopting the amendments from their effective date.
1) Ind AS 115, Revenue from Contract with Customers :
Ind AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity to report information regarding nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with customers. The principle of Ind AS 115 is that an entity should recognize revenue that demonstrates the transfer of promised goods and services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard can be applied retrospectively to each prior reporting period presented or can be applied retrospectively with recognition of cumulative effect of contracts that are not completed contracts at the date of initial application of the standard.
2) Appendix B to Ind AS 21, Foreign Currency Transactions and Advance Consideration:
The Appendix clarifies that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the asset, expense or income (or part of it) is the date on which an entity initially recognises the non-monetary liability arising from the payment or receipts in advance consideration towards such assets, expenses or income. If there are multiple payments or receipts in advance, then an entity must determine transaction date for each payment or receipts of advance consideration.
The Company is in the process of making an assessment of these amendments.
d. Reconciliations between previous GAAP and Ind AS
The following reconciliations provide the explanations and quantification of the differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:
(i) Reconciliation of equity as reported under previous GAAP to Ind AS;
(ii) Reconciliation of profit or loss and total comprehensive income as reported under previous GAAP to Ind AS; and
(iii) Adjustments to statement of cash flows.
Mar 31, 2016
NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31st MARCH, 2016
Note No. 1
SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements have been prepared in accordance with the recognition and measurement principles laid down in the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India and are based on historical cost convention on accrual basis.
Use of Estimates
The preparation of financial statement in conformity with GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.
Fixed Assets
All tangible assets are stated at cost less depreciation. All the costs incurred till the date the assets are put to use, have been capitalized and included in the cost of the respective assets. Depreciation is provided on Written Down Value method expect for buildings, plant & equipment and dies & moulds where depreciation is provided on Straight Line Method at the rates and in the manner specified in the Schedule II in accordance with the provisions of section 123(2) of the Companies Act, 2013.
Inventories
Inventories are valued at cost or net realizable value, whichever is lower. Cost is determined on the following basis:
- Raw materials, traded goods and stores and spares - on a first-in first-out (FIFO) basis;
- Finished and semi-finished goods - at material cost plus direct expenses and appropriate value of overheads; cost of finished goods includes excise duty.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably be measured.
Revenue from sale of goods are recognized when significant risks and rewards of ownership are passed to the buyer, which generally coincides with dispatch of goods. Sales taxes and value added taxes, wherever applicable, are collected on behalf of the Government and therefore, excluded from the revenue.
Excise and Custom Duty
Excise duty in respect of goods manufactured by the Company is, according to the method consistently followed by the Company, accounted for at the time of removal of goods from the factory for sale.
However, excise duty payable on the closing stock of Finished Goods is provided for in the account. Purchases of goods and fixed assets are accounted for net of excise cenvat credit availed. Custom duty paid on import of materials is dealt with in respective materials accounts.
Employee Benefits Post-employment benefit plans
i. Defined Contribution Plan: Contribution for provident fund are accrued in accordance with applicable statutes and deposited with the Regional Provident Fund Commissioner. Contribution for Superannuation in respect of certain employees of the Company is made in accordance with the scheme with Life Insurance Corporation of India.
ii. Defined Benefit Plan: The liabilities in respect of gratuity and leave encashment are determined using Projected Unit Credit Method with actuarial valuation carried out as at balance sheet date. Actuarial gains and losses are recognized in full in the profit and loss account for the period in which they occur.
Contributions in respect of gratuity are made to the Group Gratuity Scheme with Life Insurance Corporation of India. Employee benefits recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost and as reduced by the fair value of respective fund.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered by employees is recognized during the period when the employee renders the service.
Foreign Currency Transactions
Foreign currency transactions are accounted for at the rates prevailing on the date of transaction. Differences arising out of foreign exchange rates are dealt with in the profit and loss account. Current assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the closing rates and profit or loss arising there from is dealt with in the profit and loss account.
Borrowing Costs
Net costs of borrowed funds for the projects are capitalized and included in the cost of fixed assets till its completion and other borrowing costs are recognized as expenses in the period in which they are incurred.
Taxation
Provisions are made for current income tax based on tax liability computed in accordance with relevant tax rates and tax laws.
Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Earning Per Share
Basic Earning per Share (EPS) is computed by dividing the net profit for the year attributable to the equity shareholders, by weighted average number of equity shares outstanding during the year. Diluted earning per share is computed using the weighted number of equity and dilutive equity equivalent shares outstanding at the year-end, if any.
Provision and Contingencies
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made.
Mar 31, 2015
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with the
recognition and measurement principles laid down in the Accounting
Standards specified under Section 133 of the Companies Act, 2013 read
with Rule 7 of the Companies (Accounts) Rules, 2014 and other
accounting principles generally accepted in India and are based on
historical cost convention on accrual basis.
USE OF ESTIMATES
The preparation of financial statement in conformity with GAAP requires
the management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
FIXED ASSETS
All tangible assets are stated at cost less depreciation. All the costs
incurred till the date the assets are put to use, have been capitalized
and included in the cost of the respective assets. Depreciation is
provided on Written Down Value method expect for buildings, plant &
equipment and dies & moulds where depreciation is provided on Straight
Line Method at the rates and in the manner specified in the Schedule II
in accordance with the provisions of section 123(2) of the Companies
Act, 2013.
INVENTORIES
Inventories are valued at cost or net realizable value, whichever is
lower. Cost is determined on the following basis:
Raw materials, traded goods and stores and spares - on a first-in
first-out (FIFO) basis;
Finished and semi-finished goods - at material cost plus direct
expenses and appropriate value of overheads; cost of finished goods
includes excise duty.
REVENUE RECOGNITION
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably be measured.
Revenue from sale of goods are recognized when significant risks and
rewards of ownership are passed to the buyer, which generally coincides
with dispatch of goods. Sales taxes and value added taxes, wherever
applicable, are collected on behalf of the Government and therefore,
excluded from the revenue.
EXCISE AND CUSTOM DUTY
Excise duty in respect of goods manufactured by the Company is,
according to the method consistently followed by the Company, accounted
for at the time of removal of goods from the factory for sale.
However, excise duty payable on the closing stock of Finished Goods is
provided for in the account. Purchases of goods and fixed assets are
accounted for net of excise cenvat credit availed. Custom duty paid on
import of materials is dealt with in respective materials accounts.
EMPLOYEE BENEFITS Post-emplovment benefit plans
i. Defined Contribution Plan: Contribution for provident fund are
accrued in accordance with applicable statutes and deposited with the
Regional Provident Fund Commissioner. Contribution for Superannuation
in respect of certain employees of the Company is made in accordance
with the scheme with Life Insurance Corporation of India.
ii. Defined Benefit Plan: The liabilities in respect of gratuity and
leave encashment are determined using Projected Unit Credit Method with
actuarial valuation carried out as at balance sheet date. Actuarial
gains and losses are recognized in full in the profit and loss account
for the period in which they occur.
Contributions in respect of gratuity are made to the Group Gratuity
Scheme with Life Insurance Corporation of India. Employee benefits
recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized past service
cost and as reduced by the fair value of respective fund.
SHORT-TERM EMPLOYEE BENEFITS
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for services rendered by employees is recognized
during the period when the employee renders the service.
FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are accounted for at the rates prevailing
on the date of transaction. Differences arising out of foreign exchange
rates are dealt with in the profit and loss account. Current assets and
liabilities relating to foreign currency transactions remaining
unsettled at the end of the year are translated at the closing rates
and profit or loss arising therefrom is dealt with in the profit and
loss account.
BORROWING COSTS
Net costs of borrowed funds for the projects are capitalized and
included in the cost of fixed assets till its completion and other
borrowing costs are recognized as expenses in the period in which they
are incurred.
TAXATION
Provisions are made for current income tax based on tax liability
computed in accordance with relevant tax rates and tax laws.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
EARNING PER SHARE
Basic Earning per Share (EPS) is computed by dividing the net profit
for the year attributable to the equity shareholders, by weighted
average number of equity shares outstanding during the year. Diluted
earning per share is computed using the weighted number of equity and
dilutive equity equivalent shares outstanding at the year-end, if any.
PROVISION AND CONTINGENCIES
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation can
not be made.
Mar 31, 2014
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with the
recognition and measurement principles laid down in the Companies
(Accounting Standards) Rules, 2006 (which continue to be applicable in
respect of section 133 of the Companies Act, 2013 in terms of general
circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs) as per Section 211(3C) of the Companies Act, 1956 and other
accounting principles generally accepted in India.
USE OF ESTIMATES
The preparation of financial statement in conformity with GAAP requires
the management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
FIXED ASSETS
All tangible assets are stated at cost less depreciation. All the costs
incurred till the date the assets are put to use, have been capitalized
and included in the cost of the respective assets.
Depreciation is provided on Written Down Value method except for
Buildings, Plant and Machinery and Dies and Moulds where depreciation
is provided on Straight Line Method at the rates and in the manner
specified in Schedule XIV in accordance with the provisions of section
205(2)(b) of the Companies Act, 1956.
INVENTORIES
Inventories are valued at cost or net realizable value, whichever is
lower. Cost is determined on the following basis:
Raw materials, traded goods and stores and spares - on a first-in
first-out (FIFO) basis;
Finished and semi-finished goods - at material cost plus direct
expenses and appropriate value of overheads; cost of finished goods
includes excise duty.
REVENUE RECOGNITION
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably be measured.
Revenue from sale of goods are recognized when significant risks and
rewards of ownership are passed to the buyer, which generally coincides
with dispatch of goods. Sales taxes and value added taxes, wherever
applicable, are collected on behalf of the Government and therefore,
excluded from the revenue.
EXCISE AND CUSTOM DUTY
Excise duty in respect of goods manufactured by the Company is,
according to the method consistently followed by the Company, accounted
for at the time of removal of goods from the factory for sale.
However, excise duty payable on the closing stock of Finished Goods is
provided for in the account. Purchases of goods and fixed assets are
accounted for net of excise cenvat credit availed. Custom duty paid on
import of materials is dealt with in respective materials accounts.
EMPLOYEE BENEFITS Post-employment benefit plans
i. Defined Contribution Plan: Contribution for provident fund are
accrued in accordance with applicable statutes and deposited with the
Regional Provident Fund Commissioner. Contribution for Superannuation
in respect of certain employees of the Company is made in accordance
with the scheme with Life Insurance Corporation of India.
ii. Defined Benefit Plan: The liabilities in respect of gratuity and
leave encashment are determined using Projected Unit Credit Method with
actuarial valuation carried out as at balance sheet date. Actuarial
gains and losses are recognized in full in the profit and loss account
for the period in which they occur.
Contributions in respect of gratuity are made to the Group Gratuity
Scheme with Life Insurance Corporation of India. Employee benefits
recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized past service
cost and as reduced by the fair value of respective fund.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for services rendered by employees is recognized
during the period when the employee renders the service.
FOREIGN CURRENCY TRANSACTIONS
Foreign Currency Transactions are accounted for at the rates prevailing
on the date of transaction. Differences arising out of foreign exchange
rates are dealt with in the profit and loss account. Current assets and
liabilities relating to foreign currency transactions remaining
unsettled at the end of the year are translated at the closing rates
and profit or loss arising therefrom is dealt with in the profit and
loss account.
BORROWING COSTS
Net costs of borrowed funds for the projects are capitalized and
included in the cost of fixed assets till its completion and other
borrowing costs are recognized as expenses in the period in which they
are incurred.
TAXATION
Provisions are made for current income tax based on tax liability
computed in accordance with relevant tax rates and tax laws.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
EARNING PER SHARE
Basic Earning per Share (EPS) is computed by dividing the net profit
for the year attributable to the equity shareholders, by weighted
average number of equity shares outstanding during the year. Diluted
earning per share is computed using the weighted number of equity and
dilutive equity equivalent shares outstanding at the year-end, if any.
PROVISION AND CONTINGENCIES
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation can
not be made.
Mar 31, 2013
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with
Generally Accepted Accounting Principles ("GAAP") in India, the
Accounting Standards prescribed under the Companies (Accounting
Standards) Rules 2006 and the relevant provisions of the Companies Act,
1956 and are based on the historical cost convention on an accrual
basis.
USE OF ESTIMATES
The preparation of financial statement in conformity with GAAP requires
the management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
FIXED ASSETS
All tangible assets are stated at cost less depreciation. All the costs
incurred till the date the assets are put to use, have been capitalized
and included in the cost of the respective assets.
Depreciation is provided on Written Down Value method except for
Buildings, Plant and Machinery and Dies and Moulds where depreciation
is provided on Straight Line Method at the rates and in the manner
specified in Schedule XIV in accordance with the provisions of section
205(2)(b) of the Companies Act, 1956.
INVENTORIES
Raw Materials, Packing Materials and Stores & Spares are valued at cost
on FIFO basis. Semi-Finished Goods are valued at estimated cost. Traded
Goods and Finished Goods are valued at lower of the cost or net
realizable value.
SALES
Sales comprise sale of products and services net of excise duty.
EXCISE AND CUSTOM DUTY
Excise duty in respect of goods manufactured by the Company is,
according to the method consistently followed by the Company, accounted
for at the time of removal of goods from the factory for sale.
However, excise duty payable on the closing stock of Finished Goods is
provided for in the account. Purchases of goods and fixed assets are
accounted for net of excise cenvat credit availed. Custom duty paid on
import of materials is dealt with in respective materials accounts.
EMPLOYEE BENEFITS
Post-employment benefit plans
i. Defined Contribution Plan: Contribution for provident fund are
accrued in accordance with applicable statutes and deposited with the
Regional Provident Fund Commissioner. Contribution for Superannuation
in respect of certain employees of the Company is made in accordance
with the scheme with Life Insurance Corporation of India.
ii. Defined Benefit Plan: The liabilities in respect of gratuity and
leave encashment are determined using Projected Unit Credit Method with
actuarial valuation carried out as at balance sheet date. Actuarial
gains and losses are recognized in full in the profit and loss account
for the period in which they occur.
Contributions in respect of gratuity are made to the Group Gratuity
Scheme with Life Insurance Corporation of India. Employee benefits
recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized past service
cost and as reduced by the fair value of respective fund.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for services rendered by employees is recognized
during the period when the employee renders the service.
FOREIGN CURRENCY TRANSACTIONS
Foreign Currency Transactions are accounted for at the rates prevailing
on the date of transaction. Differences arising out of foreign exchange
rates are dealt with in the profit and loss account. Current assets and
liabilities relating to foreign currency transactions remaining
unsettled at the end of the year are translated at the closing rates
and profit or loss arising therefrom is dealt with in the profit and
loss account.
BORROWING COSTS
Net costs of borrowed funds for the projects are capitalized and
included in the cost of fixed assets till its completion and other
borrowing costs are recognized as expenses in the period in which they
are incurred.
TAXATION
Provisions are made for current income tax based on tax liability
computed in accordance with relevant tax rates and tax laws.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
EARNINGS PER SHARE
Basic Earnings per Share (EPS) is computed by dividing the net profit
for the year attributable to the equity shareholders, by weighted
average number of equity shares outstanding during the year. Diluted
earnings per share is computed using the weighted number of equity and
dilutive equity equivalent shares outstanding at the year-end, if any.
PROVISION AND CONTINGENCIES
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
Mar 31, 2012
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with
Generally Accepted Accounting Principles ("GAAP") in India, the
Accounting Standards prescribed under the Companies (Accounting
Standards) Rules 2006 and the relevant provisions of the Companies Act,
1956 and are based on the historical cost convention on an accrual
basis.
USE OF ESTIMATES
The preparation of financial statement in conformity with GAAP requires
the management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
FIXED ASSETS
All tangible assets are stated at cost less depreciation. All the costs
incurred till the date the assets are put to use, have been capitalized
and included in the cost of the respective assets.
Depreciation is provided on Written Down Value method except for
Buildings, Plant and Machinery and Dies and Moulds where depreciation
is provided on Straight Line Method at the rates and in the manner
specified in Schedule XIV in accordance with the provisions of section
205(2)(b) of the Companies Act, 1956.
INVENTORIES
Raw Materials, Packing Materials and Stores & Spares are valued at cost
on FIFO basis. Semi-Finished Goods are valued at estimated cost.
Traded Goods and Finished Goods are valued at lower of the cost or net
realizable value.
SALES
Sales comprise sale of products and services net of excise duty.
EXCISE AND CUSTOM DUTY
Excise duty in respect of goods manufactured by the Company is,
according to the method consistently followed by the Company, accounted
for at the time of removal of goods from the factory for sale.
However, excise duty payable on the closing stock of Finished Goods is
provided for in the account. Purchases of goods and fixed assets are
accounted for net of excise cenvat credit availed. Custom duty paid on
import of materials is dealt with in respective materials accounts.
EMPLOYEE BENEFITS
Post-employment benefit plans
i. Defined Contribution Plan: Contribution for provident fund are
accrued in accordance with applicable statutes and deposited with the
Regional Provident Fund Commissioner. Contribution for Superannuation
in respect of certain employees of the Company is made in accordance
with the scheme with Life Insurance Corporation of India.
ii. Defined Benefit Plan: The liabilities in respect of gratuity and
leave encashment are determined using Projected Unit Credit Method with
actuarial valuation carried out as at balance sheet date. Actuarial
gains and losses are recognized in full in the profit and loss account
for the period in which they occur.
Contributions in respect of gratuity are made to the Group Gratuity
Scheme with Life Insurance Corporation of India. Employee benefits
recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized past service
cost and as reduced by the fair value of respective fund.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for services rendered by employees is recognized
during the period when the employee renders the service.
FOREIGN CURRENCY TRANSACTIONS
Foreign Currency Transactions are accounted for at the rates prevailing
on the date of transaction. Differences arising out of foreign exchange
rates are dealt with in the profit and loss account. Current assets and
liabilities relating to foreign currency transactions remaining
unsettled at the end of the year are translated at the closing rates
and profit or loss arising therefrom is dealt with in the profit and
loss account.
BORROWING COSTS
Net costs of borrowed funds for the projects are capitalized and
included in the cost of fixed assets till its completion and other
borrowing costs are recognized as expenses in the period in which they
are incurred.
TAXATION
Provisions are made for current income tax based on tax liability
computed in accordance with relevant tax rates and tax laws.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
EARNING PER SHARE
Basic Earning per Share (EPS) is computed by dividing the net profit
for the year attributable to the equity shareholders, by weighted
average number of equity shares outstanding during the year. Diluted
earning per share is computed using the weighted number of equity and
dilutive equity equivalent shares outstanding at the year-end.
PROVISION AND CONTINGENCIES
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
Mar 31, 2011
BASIS OF ACCOUNTING:
The financial statements have been prepared in accordance with
Generally Accepted Accounting Principles ("GAAP") in India, the
Accounting Standards prescribed under the Companies (Accounting
Standards) Rules 2006 and the relevant provisions of the Companies Act,
1956 and are based on the historical cost convention on an accrual
basis.
USE OF ESTIMATES:
The preparation of financial statement in conformity with GAAP requires
the management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
FIXED ASSETS:
All tangible assets are stated at cost less depreciation. All the costs
incurred till the date the assets are put to use, have been capitalized
and included in the cost of the respective assets.
Depreciation is provided on Written Down Value method except for
Buildings, Plant and Machinery and Dies and Moulds where depreciation
is provided on Straight Line Method at the rates and in the manner
specified in Schedule XIV in accordance with the provisions of section
205(2)(b) of the Companies Act, 1956.
INVENTORIES:
Raw Materials, Packing Materials and Stores & Spares are valued at cost
on FIFO basis. Semi-Finished Goods are valued at estimated cost. Traded
Goods and Finished Goods are valued at lower of the cost or net
realizable value.
SALES:
Sales comprise sale of products and services net of excise duty.
EXCISE AND CUSTOM DUTY:
Excise duty in respect of goods manufactured by the Company is,
according to the method consistently followed by the Company, accounted
for at the time of removal of goods from the factory for sale.
However, excise duty payable on the closing stock of Finished Goods is
provided for in the account. Purchases of goods and fixed assets are
accounted for net of excise cenvat credit availed. Custom duty paid on
import of materials is dealt with in respective materials accounts.
EMPLOYEE BENEFITS:
Post-employment benefit plans
i. Defined Contribution Plan: Contribution for provident fund are
accrued in accordance with applicable statutes and deposited with the
Regional Provident Fund Commissioner. Contribution for Superannuation
in respect of certain employees of the Company is made in accordance
with the scheme with Life Insurance Corporation of India.
ii. Defined Benefit Plan: The liabilities in respect of gratuity and
leave encashment are determined using Projected Unit Credit Method with
actuarial valuation carried out as at balance sheet date. Actuarial
gains and losses are recognized in full in the profit and loss account
for the period in which they occur.
Contributions in respect of gratuity are made to the Group Gratuity
Scheme with Life Insurance Corporation of India. Employee benefits
recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized past service
cost and as reduced by the fair value of respective fund.
Shprt-terrn employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for services rendered by employees is recognized
during the period when the employee renders the service.
FOREIGN CURRENCY TRANSACTIONS:
Foreign Currency Transactions are accounted for at the rates prevailing
on the date of transaction. Differences arising out of foreign exchange
rates are dealt with in the profit and loss account. Current assets and
liabilities relating to foreign currency transactions remaining
unsettled at the end of the year are translated at the closing rates
and profit or loss arising therefrom is dealt with in the profit and
loss account.
BORROWING COSTS:
Net costs of borrowed funds for the projects are capitalized and
included in the cost of fixed assets till its completion and other
borrowing costs are recognized as expenses in the period in which they
are incurred.
TAXATION:
Provisions are made for current income tax based on tax liability
computed in accordance with relevant tax rates and tax laws.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subseguent periods.
EARNING PER SHARE:
Basic Earning Per Share (EPS) is computed by dividing the net profit
for the year attributable to the equity shareholders, by weighted
average number of equity shares outstanding during the year. Diluted
earning per share is computed using the weighted number of equity and
dilutive equity equivalent shares outstanding at the year-end.
PROVISION AND CONTINGENCIES:
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation can
not be made.
Mar 31, 2010
BASIS OF ACCOUNTING:
The financial statements have been prepared in accordance with
Generally Accepted Accounting Principles ("GAAP") in India, the
Accounting Standards issued by the Institute of Chartered Accountants
of India and the relevant provisions of the Companies Act, 1956 and are
based on the historical cost convention on an accrual basis.
USE OF ESTIMATES:
The preparation of financial statement in conformity with GAAP requires
the management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
FIXED ASSETS:
All tangible assets are stated at cost less depreciation. All the costs
incurred till the date the assets are put to use, have been capitalized
and included in the cost of the respective assets.
Depreciation is provided on Written Down Value method except for
Buildings, Plant and Machinery and Dies and Moulds where depreciation
is provided on Straight Line Method at the rates and in the manner
specified in Schedule XIV in accordance with the provisions of section
205(2)(b) of the Companies Act, 1956.
INVENTORIES:
Raw Materials, Packing Materials and Stores & Spares are valued at cost
on FIFO basis. Semi-Finished Goods are valued at estimated cost. Traded
Goods and Finished Goods are valued at lower of the cost or net
realizable value.
SALES:
Sales comprise sale of products and services net of excise duty.
EXCISE AND CUSTOM DUTY:
Excise duty in respect of goods manufactured by the Company is,
according to the method consistently followed by the Company, accounted
for at the time of removal of goods from the factory for sale.
However, excise duty payable on the closing stock of Finished Goods is
provided for in the account. Purchases of goods and fixed assets are
accounted for net of excise cenvat credit availed. Custom duty paid on
import of materials is dealt with in respective materials accounts.
EMPLOYEE BENEFITS:
Post-employment benefit plans
i. Defined Contribution Plan: Contribution for provident fund are
accrued in accordance with applicable statutes and deposited with the
Regional Provident Fund Commissioner. Contribution for Superannuation
in respect of certain employees of the Company is made in accordance
with the scheme with Life Insurance Corporation of India.
ii. Defined Benefit Plan: The liabilities in respect of gratuity and
leave encashment are determined using Projected Unit Credit Method with
actuarial valuation carried out as at balance sheet date. Actuarial
gains and losses are recognized in full in the profit and loss account
for the period in which they occur.
Contributions in respect of gratuity are made to the Group Gratuity
Scheme with Life Insurance Corporation of India. Employee benefits
recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized past service
cost and as reduced by the fair value of respective fund.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for services rendered by employees is recognized
during the period when the employee renders the service.
FOREIGN CURRENCY TRANSACTIONS:
Foreign Currency Transactions are accounted for at the rates prevailing
on the date of transaction. Differences arising out of foreign exchange
rates are dealt with in the profit and loss account. Current assets and
liabilities relating to foreign currency transactions remaining
unsettled at the end of the year are translated at the closing rates
and profit or loss arising therefrom is dealt with in the profit and
loss account.
BORROWING COSTS:
Net costs of borrowed funds for the projects are capitalized and
included in the cost of fixed assets till its completion and other
borrowing costs are recognized as expenses in the period in which they
are incurred.
TAXATION:
Provisions are made for current income tax based on tax liability
computed in accordance with relevant tax rates and tax laws.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
EARNING PER SHARE:
Basic Earning Per Share (EPS) is computed by dividing the net profit
for the year attributable to the equity shareholders, by weighted
average number of equity shares outstanding during the year. Diluted
earning per share is computed using the weighted number of equity and
dilutive equity equivalent shares outstanding at the year-end.
PROVISION AND CONTINGENCIES:
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation can
not be made.
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