Mar 31, 2015
I. Basis of Accounting
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) The company has
prepared these financial statements to comply in all material respects
with accounting standards notified under the Companies (Accounting
Standard) Rules, 2006 and other relevant provisions of the Companies
Act, 1956 and guidelines issued by the Security Exchange Board of India
as adopted consistently by the Company.
ii. Uses of Estimates
The financial statements are prepared using estimates and assumptions
that effect the reported balances of the assets and liabilities and
disclosures relating to contingent assets and liabilities as at the
date of balance sheet and the statement of profit and loss during the
year. Contingencies are recorded when it is probable that a liability
has been incurred and amount can be reasonably estimated. Actual
results could differ from these estimates. The actual results are
recognized in the year in which the results are known/materialised.
iii. Fixed Assets
- Fixed Assets are stated at cost, less accumulated depreciation.
- Leasehold Land is shown at Cost less amortisation.
iv. Method of Depreciation & Amortisation
a) Depredation is provided at the rates calculated on the basis of
life(s) specified in the Schedule II of the Companies Act, 2013 by
using the Straight Line Method.
b) Depredation on additions to Fixed Assets is calculated prorata from
the date of such addition.
c) Assets costing less than 5,000/-has been depredated fully in the
year of purchase.
d) Leasehold Improvements have been written off on prorata basis during
the period of lease.
v. Inventories
Valuation of Inventories Method of Valuation
a) Raw Material At Lower of Cost or Net realisable
value.*
The cost is determined on Weighted
Average basis.
b) Finished Goods At Lower of Cost or Net realisable
value.
c) Stock-in-Process At Cost
d) Stores & Spares At Cost
* Cost comprises expenditure incurred in the normal course of business
in bringing such inventories to the present location and condition.
Finished Goods and Work- in Progress includes cost of conversion.
vi. Foreign Currency Transactions
a) Transactions denominated in Foreign Currencies are recorded at the
exchange rate prevailing at the time of the transaction.
b) Monetary Items denominated in foreign currency at the year end and
not covered by forward exchange contracts are translated at year end
rates and those covered by forward exchange contracts are translated at
the rate ruling on the date of transaction as increased or decreased by
the proportionate difference between the forward rate and exchange rate
on the date of transaction, such difference having been recognised over
the life of the contract.
c) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the statement of profit
and loss.
vii. Employee Benefits
Expenses and Liabilities in respect of employee benefits are recorded
in accordance with Revised Accounting Standard 15
- Employees Benefits (Revised 2005).
a) Post Employment Benefit Plans
Payments to Defined Contribution Retirements Benefit Schemes are
charged as an expense as they fall due.
For Defined Benefit Shemes: the cost of providing benefits is
determined using the Projected Unit Credit Method, with actuarial
valuation being carried out at each balance sheet date. Actuarial gains
and losses are recognized in full in the statement of profit and loss
for the period in which they occur. Past service cost is recognized
immediately to the extent that the benefits are already vested.
The retirement benefit obligation recognised in the balance sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognized past service cost, plus the present value of
available refunds and reductions in future contributions to the scheme.
b) Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee renders the service.
viii. Revenue Recognition
a) Export Sales are booked on the basis of date of Foreign Cargo
Receipt.
b) Domestic sales are recognised (net of sales tax, sales returns and
trade discount) at the point of despatch of goods.
c) Duty Drawbacks, DEPB and Other exports benefits are recognised in
the Statement of Profit & Loss on accrual basis.
d) Interest income is recognized on accrual basis.
ix. Purchases
Purchases are booked at the time of receipt of material at Factory
Gate.
x. Investments
a) Current Investments are stated at lower of cost and fair value.
b) Long Term Investments are stated at Cost unless there is a
diminution of permanent nature, if any in the opinion of the
management.
xi. Earnings Per Share
a) Basic earnings per share are calculated by dividing the net profit
or loss for the year attributable to equity shareholders by weighted
average number of equity shares outstanding during the year.
b) For calculating diluted earnings per share, the net profit or loss
for the year attributable to equity shareholders and the weighted
average number of options outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
xii. Cash Flow Statement
Cash flow Statement is made as per the indirect method prescribed under
Accounting Standard - 3" Cash Flow Statement notified under Companies
(Accounting Standard) Rules, 2006.
xiii. Taxes on Income Current Tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax Act,
1961.
Deferred Tax
Deferred Tax resulting from timing difference between book and taxable
profit is accounted for using the tax rate and laws that have been
enacted or substantively enacted as on the Balance Sheet Date. Deferred
Tax assets subject to consider- ation of prudence, are recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
xiv. Provision, Contingent Liabilities and Contingent Assets
Provision 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 there 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.
xv. Leases
a) In respect of lease transactions entered into prior to April 1,
2001, lease rentals of assets acquired are charged to statement of
profit & loss.
b) Lease transactions entered into on or after April 1,2001:
Assets acquired under leases where the company has substantially all
the risks and rewards of ownership are classi- fied as finance leases.
Such assets are capitalised at the inception of the lease at the lower
of the value or the present value of minimum lease payments and a
liability is created for an equivalent amount .Each lease rental paid
is allocated between the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the liability for each
period.
Assets acquired under leases where a significant portion of all risks
and rewards of ownership are retained by the lessor are classified as
operating leases. Lease rentals are charged to the statement of profit
& loss on accrual basis.
Mar 31, 2014
I. Basis of Accounting
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) The company has
prepared these financial state- ments to comply in all material
respects with accounting standards notified under the Companies
(Accounting Stan- dard) Rules, 2006 and other relevant provisions of
the Companies Act, 1956 and guidelines issued by the Security &
Exchange Board of India as adopted consistently by the Company.
ii. Uses of Estimates
The financial statements are prepared using estimates and assumptions
that effect the reported balances of the assets and liabilities and
disclosures relating to contingent assets and liabilities as at the
date of balance sheet and the statement of profit and loss during the
year. Contingencies are recorded when it is probable that a liability
has been incurred and amount can be reasonably estimated. Actual
results could differ from these estimates. The actual results are
recognized in the year in which the results are known/materialised.
iii. Fixed Assets
* Fixed Assets are stated at cost, less accumulated depreciation.
* Leasehold Land is shown at Cost less amortisation.
iv. Method of Depreciation & Amortisation
a) Depreciation is provided at the rates specified in the Schedule XIV
of the Companies Act,1956 by using the Straight Line Method.
b) Depreciation on additions to Fixed Assets is calculated prorata from
the date of such addition.
c) Assets costing less than Rs. 5,000/- has been depreciated fully in
the year of purchase.
d) Leasehold Improvements have been written off on prorata basis during
the period of lease.
v. Inventories
Valuation of Inventories Method of Valuation
a) Raw Material At Lower of Cost or Net realisable value.*
*The cost is determined on Weighted Average
basis.
b) Finished Goods At Lower of Cost or Net realisable value.
c) Stock-in-Process At Cost
d) Stores & Spares At Cost
* Cost comprises expenditure incurred in the normal course of business
in bringing such inventories to the present location and condition.
Finished Goods and Work- in Progress includes cost of conversion.
vi. Foreign Currency Transactions
a) Transactions denominated in Foreign Currencies are recorded at the
exchange rate prevailing at the time of the transaction.
b) Monetary Items denominated in foreign currency at the year end and
not covered by forward exchange contracts are trans-
lated at year end rates and those covered by forward exchange contracts
are translated at the rate ruling on the date of transaction as
increased or decreased by the proportionate difference between the
forward rate and exchange rate on the date of transaction, such
difference having been recognised over the life of the contract.
c) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the statement of profit
and loss.
vii. Employee Benefits
Expenses and Liabilities in respect of employee benefits are recorded
in accordance with Revised Accounting Stan- dard 15 - Employees
Benefits (Revised 2005).
a) Post Employment Benefit Plans
Payments to Defined Contribution Retirements Benefit Schemes are
charged as an expense as they fall due.
For Defined Benefit Shemes: the cost of providing benefits is
determined using the Projected Unit Credit Method, with actuarial
valuation being carried out at each balance sheet date. Actuarial gains
and losses are recognized in full in the statment of profit and loss
for the period in which they occur. Past service cost is recognized
immediately to the extent that the benefits are already vested.
The retirement benefit obligation recognised in the balance sheet
represents the present value of the defined ben- efit obligation as
adjusted for unrecognized past service cost, plus the present value of
available refunds and reductions in future contributions to the scheme.
b) Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services ren- dered by employees is recognized
during the period when the employee renders the service.
viii. Revenue Recognition
a) Export Sales are booked on the basis of date of Foreign Cargo
Receipt.
b) Domestic sales are recognised (net of sales tax, sales returns and
trade discount) at the point of despatch of goods.
c) Duty Drawbacks, DEPB and Other exports benefits are recognised in
the Statement of Profit & Loss on accrual basis.
d) Interest income is recognized on accrual basis.
ix. Purchases
Purchases are booked at the time of receipt of material at Factory
Gate.
x. Investments
a) Current Investments are stated at lower of cost and fair value.
b) Long Term Investments are stated at Cost unless there is a
diminution of permanent nature, if any in the opinion of the
management.
xi. Earnings Per Share
a) Basic earnings per share are calculated by dividing the net profit
or loss for the year attributable to equity sharehold- ers by weighted
average number of equity shares outstanding during the year.
b) For calculating diluted earnings per share, the net profit or loss
for the year attributable to equity shareholders and the weighted
average number of options outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
xii. Cash Flow Statement
Cash flow Statement is made as per the indirect method prescribed under
Accounting Standard - 3 " Cash Flow State- ment notified under
Companies (Accounting Standard) Rules, 2006.
xiii. Taxes on Income Current Tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax Act,
1961.
Deferred Tax
Deferred Tax resulting from timing difference between book and taxable
profit is accounted for using the tax rate and laws that have been
enacted or substantively enacted as on the Balance Sheet Date. Deferred
Tax assets subject to consideration of prudence, are recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
xiv. Provision, Contingent Liabilities and Contingent Assets
Provision 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 there will be an outflow of resources.
Contingent Liablilities are not recog- nized but are disclosed in the
notes. contingent Assets are neither recognized nor disclosed in the
financial statements.
xv. Leases
a) In respect of lease transactions entered into prior to April 1,2001,
lease rentals of assets acquired are charged to statement of profit &
loss.
b) Lease transactions entered into on or after April 1,2001:
Assets acquired under leases where the company has substantially all
the risks and rewards of ownership are classified as finance
leases.Such assets are capitalised at the inception of the lease at the
lower of the value or the present value of minimum lease payments and a
liability is created for an equivalent amount .Each lease rental paid
is allocated between the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the liability for each
period.
Assets acquired under leases where a significant portion of all risks
and rewards of ownership are retained by the lessor are classified as
operating leases.Lease rentals are charged to the statement of profit &
loss on accrual basis.
Mar 31, 2013
I. Basis of Accounting
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) The company has
prepared these financial statements to comply in all material respects
with accounting standards notified under the Companies (Accounting
Standard) Rules, 2006 and other relevant provisions of the Companies
Act, 1956 and guidelines issued by the Securities & Exchange Board of
India as adopted consistently by the Company.
ii. Uses of Estimates
The financial statements are prepared using estimates and assumptions
that effect the reported balances of the assets .
and liabilities and disclosures relating to contingent assets and
liabilities as at the date of balance sheet and the statement of profit
and loss during the year. Contingencies are recorded when it is
probable that a liability has been incurred and amount can be
reasonably estimated. Actual results could differ from these estimates.
The actual results are recognized in the year in which the results are
known/materialized.
iii. Fixed Assets
- Fixed Assets are stated at cost, less accumulated depreciation.
- Leasehold Land is shown at Cost less amortization.
iv. Method of Depreciation & Amortization
a) Depreciation is provided at the rates specified in the Schedule XIV
of the Companies Act, 1956 by using the Straight Line Method.
b) Depreciation on additions to Fixed Assets is calculated prorata from
the date of such addition.
c) Assets costing less than Rs. 5,000/- has been depreciated fully in
the year of purchase.
d) Leasehold Improvements have been written off on prorata basis during
the period of lease.
v. Inventories
Valuation of Inventories Method of Valuation
a) Raw Material At Lower of Cost or Net realizable value.*
*The cost is determined on Weighted Average basis.
b) Finished Goods At Lower of Cost or Net realizable value.
c) Stock-in-Process At Cost
d) Stores & Spares At Cost
*Cost comprises expenditure incurred in the normal course of business
in bringing such inventories to the present location and condition.
Finished Goods and Work-in Progress includes cost of conversion.
vi. Foreign Currency Transactions
a) Transactions denominated in Foreign Currencies are recorded at the
exchange rate prevailing at the time of the transaction.
b) Monetary Items denominated in foreign currency at the year end and
not covered by forward exchange contracts are translated at year end
rates and those covered by forward exchange contracts are translated at
the rate ruling on the date of transaction as increased or decreased by
the proportionate difference between the forward rate and exchange rate
on the date of transaction, such difference having been recognized over
the life of the contract.
c) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the statement of profit
and loss.
vii. Employee Benefits
Expenses and Liabilities in respect of employee benefits are recorded
in accordance with Revised Accounting Standard 15 - Employees
Benefits (Revised 2005).
a) Post Employment Benefit Plans
Payments to Defined Contribution Retirements Benefit Schemes are
charged as an expense as they fall due.
For Defined Benefit Shemes: the cost of providing benefits is
determined using the Projected Unit Credit Method, with actuarial
valuation being carried out at each balance sheet date. Actuarial gains
and losses are recognized in full in the statement of profit and loss
for the period in which they occur. Past service cost is recognized
immediately to the extent that the benefits are already vested.
The retirement benefit obligation recognized in the balance sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognized past service cost, plus the present value of
available refunds and reductions in future contributions to the scheme,
b) Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee renders the service
viii. Revenue Recognition
a) Export Sales are booked on the basis of date of Foreign Cargo
Receipt.
b) Domestic sales are recognized (net of sales tax, sales returns and
trade discount) at the point of dispatch of goods.
c) Duty Drawbacks, DEPB and Other exports benefits are recognized in
the Statement of Profit & Loss on accrual basis.
d) Interest income is recognized on accrual basis.
Ix. Purchases
Purchases are booked at the time of receipt of material at Factory
Gate.
x. Investments
a) Current Investments are stated at lower of cost and fair value.
b) Long Term Investments are stated at Cost unless there is a
diminution of permanent nature, if any in the opinion of the
management.
xl. Earnings Per Share
a) Basic earnings per share are calculated by dividing the net profit
or loss for the year attributable to equity shareholders by weighted
average number of equity shares outstanding during the year.
b) For calculating diluted earnings per share, the net profit or loss
for the year attributable to equity shareholders and the weighted
average number of options outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
xil. Cash Flow Statement
Cash flow Statement is made as per the indirect method prescribed under
Accounting Standard - 3 " Cash Flow Statement notified under
Companies (Accounting Standard) Rules, 2006.
xlll. Taxes on Income Current Tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax Act,
1961.
Deferred Tax
Deferred Tax resulting from timing difference between book and taxable
profit is accounted for using the tax rate and laws that have been
enacted or substantively enacted as on the Balance Sheet Date. Deferred
Tax assets subject to consideration of prudence, are recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
xiv. Provision, Contingent Liabilities and Contingent Assets
Provision 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 there 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.
xv. Leases
a) In respect of lease transactions entered into prior to April 1,
2001, lease rentals of assets acquired are charged to statement of
profit & loss.
b) Lease transactions entered into on or after April 1, 2001:
Assets acquired under leases where the company has substantially all
the risks and rewards of ownership are classified as finance
leases. Such assets are capitalized at the inception of the lease at the
lower of the value or the present value of minimum lease payments and a
liability is created for an equivalent amount .Each lease rental paid
is allocated between the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the liability for each
period.
Assets acquired under leases where a significant portion of all risks
and rewards of ownership are retained by the lessor are classified as
operating leases. Lease rentals are charged to the statement of profit &
loss on accrual basis.
Mar 31, 2010
1. Accounting Concepts :
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with the mandatory
Accounting Standards and relevant presentational requirements of the
Companies Act, 1956.
2. Uses of Estimates
The financial statements are prepared using estimates and assumptions
that effect the reported balances of the assets and liabilities and
disclosures relating to contingent assets and liabilities as at the
date of balance sheet and the profit and loss account during the year.
Contingencies are recorded when it is probable that a liability has
been incurred and amount can be reasonably estimated. Actual results
could differ from these estimates. The actual results are recognized in
the year in which the results are known/materialised.
3. Fixed Assets:
- Fixed Assets are stated at cost, less accumulated depreciation.
- Leasehold Land is shown at Cost less amortisation.
4. Method of Depreciation & Amortisation
a) Depreciation is provided at the rates specified in the Schedule XIV
of the Companies Act,1956 by using the Straight Line Method.
b) Depreciation on additions to Fixed Assets is calculated prorata from
the date of such addition.
c) Assets costing less than Rs. 5,000/- has been depreciated fully in
the year of purchase.
d) Leasehold Improvements have been written off on prorata basis during
the period of lease.
5. Valuation of Inventories Method of Valuation
a) Raw Material At Lower of Cost or Net
realisable value.*
*The cost is determined on
Weighted Average basis.
b) Finished Goods At Lower of Cost or Net
realisable value.
c) Stock-in-Process At Cost.
d) Stores & Spares At Cost
* Cost comprises expenditure incurred in the normal course of business
in bringing such inventories to the present location and condition.
Finished Goods and Work- in Progress includes cost of conversion.
6. Foreign Currency Transactions
a) Transactions denominated in Foreign Currencies are recorded at the
exchange rate prevailing at the time of the transaction.
b) Monetary Items denominated in foreign currency at the year end and
not covered by forward exchange contracts are translated at year end
rates and those covered by forward exchange contracts are translated at
the rate ruling on the date of transaction as increased or decreased by
the proportionate difference between the forward rate and exchange rate
on the date of transaction, such difference having been recognised over
the life of the contract.
c) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the profit and loss
account.
7. Employee Benefits
Expenses and Liabilities in respect of employee benefits are recorded
in accordance with Revised Accounting Standard 15 - Employees Benefits
(Revised 2005).
(i) Post Employment Benefit Plans
Payments to Defined Contribution Retirements Benefit Schemes are
charged as an expense as they fall due. For Defined Benefit Shemes:
the cost of providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuation being carried out at each
balance sheet date. Actuarial gains and losses are recognized in full
in the profit and loss account for the period in which they occur. Past
service cost is recognized immediately to the extent that the benefits
are already vested.
The retirement benefit obligation recognised in the balance sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognized past service cost, plus the present value of
available refunds and reductions in future contributions to the scheme.
(ii) Short Term Employee Benefits.
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee renders the service
8. Revenue Recognition
a) Export Sales are booked on the basis of date of Foreign Cargo
Receipt.
b) Domestic sales are recognised (net of sales tax, sales returns and
trade discount) at the point of despatch of goods.
c) Duty Drawbacks, DEPB and Other exports benefits are recognised in
the Profit & Loss Account on accrual basis.
d) Interest income is recognized on accrual basis.
9. Purchases
Purchases are booked at the time of receipt of material at Factory
Gate.
10. Investments
a) Current Investments are stated at lower of cost and fair value.
b) Long Term Investments are stated at Cost unless there is a
diminution of permanent nature, if any in the opinion of the
management.
11. Earnings Per Share
a) Basic earnings per share are calculated by dividing the net profit
or loss for the year attributable to equity shareholders by weighted
average number of equity shares outstanding during the year.
b) For calculating diluted earnings per share, the net profit or loss
for the year attributable to equity shareholders and the weighted
average number of options outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
12. Cash Flow Statement
Cash flow Statement is made as per the indirect method prescribed under
Accounting Standard - 3 " Cash Flow Statement notified under Companies
( Accounting Standard) Rules, 2006.
13. Current Tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax Act,
1961.
Deferred Tax
Deferred Tax resulting from timing difference between book and taxable
profit is accounted for using the tax rate and laws that have been
enacted or substantively enacted as on the Balance Sheet Date. Deferred
Tax assets subject to consideration of prudence, are recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized .
14. Provision, Contingent Liabilities and Contingent Assets
Provision 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 there will be an outflow of resources.
Contingent Liablilities are not recognized but are disclosed in the
notes. contingent Assets are neither recognized nor disclosed in the
financial statements.
15. Leases
a) In respect of lease transactions entered into prior to April 1,
2001, lease rentals of assets acquired are charged to profit & loss
account.
b) Lease transections entered into on or after April 1, 2001:
- Assets acquired under leases where the company has substantially all
the risks and rewards of ownership are classified as finance
leases.Such assets are capitalised at the inception of the lease at the
lower of the value or the present value of minimum lease payments and a
liability is created for an equivalent amount .Each lease rental paid
is allocated beteen the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the liability for each
period.
- Assets acquired under leases where a significant portion of all risks
and rewards of ownership are retained by the lessor are classified as
operating leases.Lease rentals are charged to the profit & loss Account
on accrual basis.
Mar 31, 2009
1. Accounting Concepts :
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with the mandatory
Accounting Standards and relevant presentational requirements of the
Companies Act, 1956.
2. Uses of Estimates
The financial statements are prepared using estimates and assumptions
that effect the reported balances of the assets and liabilities and
disclosures relating to contingent assets and liabilities as at the
date of balance sheet and the profit and loss account during the year.
Contingencies are recorded when it is probable that a liability has
been incurred and amount can be reasonably estimated. Actual results
could differ from these estimates. The actual results are recognized in
the year in which the results are known/materialised.
3. Fixed Assets:
- Fixed Assets are stated at cost , less accumulated depreciation.
- Leasehold Land is shown at Cost less amortisation.
4. Method of Depreciation & Amortisation
a) Depreciation is provided at the rates specified in the Schedule XIV
of the Companies Act,1956 by using the Straight Line Method.
b) Depreciation on additions to Fixed Assets is calculated prorata from
the date of such addition.
c) Assets costing less than Rs. 5,000/- has been depreciated fully in
the year of purchase.
d) Leasehold Improvements have been written off on prorata basis during
the period of lease.
5. Valuation of Inventories Method of Valuation
a) Raw Material At Lower of Cost or Net realisable value.*
*The cost is determined on Weighted Average basis.
b) Finished Goods At Lower of Cost or Net realisable value.
c) Stock-in-Process At Cost.
d) Stores & Spares At Cost
- Cost comprises expenditure incurred in the normal course of business
in bringing such inventories to the present location and condition.
Finished Goods and Work- in Progress includes cost of conversion.
6. Foreign Currency Transactions
a) Transactions denominated in Foreign Currencies are recorded at the
exchange rate prevailing at the time of the transaction.
b) Monetary Items denominated in foreign currency at the year end and
not covered by forward exchange contracts are translated at year end
rates and those covered by forward exchange contracts are translated at
the rate ruling on the date of transaction as increased or decreased by
the proportionate difference between the forward rate and exchange rate
on the date of transaction, such difference having been recognised over
the life of the contract.
c) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the profit and loss
account.
7. Employee Benefits
Expenses and Liabilities in respect of employee benefits are recorded
in accordance with Revised Accounting Standard 15 - Employees Benefits
(Revised 2005).
(i) Post Employment Benefit Plans
Payments to Defined Contribution Retirements Benefit Schemes are
charged as an expense as they fall due.
For Defined Benefit Shemes: the cost of providing benefits is
determined using the Projected Unit Credit Method, with actuarial
valuation being carried out at each balane sheet date. Actuarial gains
and losses are recognized in full in the profit and loss account for
the period in which they occur. Past service cost is recognized
immediately to the extent that the benefits are already vested.
The retirement benefit obligation recognised in the balance sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognized past service cost, plus the present value of
available refunds and reductions in future contributions to the scheme.
(ii) Short Term Employee Benefits.
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee renders the service
8. Revenue Recognition
a) Export Sales are booked on the basis of date of Foreign Cargo
Receipt.
b) Domestic sales are recognised (net of sales tax, sales returns and
trade discount) at the point of despatch of goods.
c) Duty Drawbacks, DEPB and Other exports benefits are recognised in
the Profit & Loss Account on accrual basis.
d) Interest income is recognized on accrual basis.
9. Purchases
Purchases are booked at the time of receipt of material at Factory
Gate.
10. Investments
a) Current Investments are stated at lower of cost and fair value.
b) Long Term Investments are stated at Cost unless there is a
diminution of permanent nature, if any in the opinion of the
management.
11. Earnings Per Share
a) Basic earnings per share are calculated by dividing the net profit
or loss for the year attributable to equity shareholders by weighted
average number of equity shares outstanding during the year.
b) For calculating diluted earnings per share, the net profit or loss
for the year attributable to equity shareholders and the weighted
average number of options outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
12. Cash Flow Statement
Cash flow Statement is made as per the indirect method prescribed under
Accounting Standard - 3 Ã Cash Flow Statement issued by the Institute
of Chartered Accountants of India.
13. Current Tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax Act,
1961.
Deferred Tax:
Deferred Tax resulting from timing difference between book and taxable
profit is accounted for using the tax rate and laws that have been
enacted or substantively enacted as on the Balance Sheet Date. Deferred
Tax assets subject to consideration of prudence, are recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
14. Provision, Contingent Liabilities and Contingent Assets
Provision 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 there will be an outflow of resources.
Contingent Liablilities are not recognized but are disclosed in the
notes. contingent Assets are neither recognized nor disclosed in the
financial statements.
15. Leases
a) In respect of lease transactions entered into prior to April 1,
2001, lease rentals of assets acquired are charged to profit & loss
account.
b) Lease transections entered into on or after April 1, 2001:
- Assets acquired under leases where the company has substantially all
the risks and rewards of ownership are classified as finance
leases.Such assets are capitalised at the inception of the lease at the
lower of the value or the present value of minimum lease payments and a
liability is created for an equivalent amount .Each lease rental paid
is allocated beteen the liability and the interest cost, so as to
obtain a constant periodic rate of interest on the liability for each
period.
- Assets acquired under leases where a significant portion of all risks
and rewards of ownership are retained by the lessor are classified as
operating leases.Lease rentals are charged to the profit & loss Account
on accrual basis.
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