Mar 31, 2015
A) Basis of preparation of financial statements
The financial statement have been prepared and presented under the
historical cost convention on an accrual basis of accounting and in
accordance with the accounting principles generally accepted in India
and comply with the accounting standards referred in the Companies
(Accounting Standards) Rules 2006 which continue to apply under section
133 of the Companies Act, 2013 read with rule 7 of the Companies
(Account) rules, 2014 and other relevant provisions of the Companies
Act, 1956 to the extent applicable.
b) Uses of Estimates
The preparation of financial statements in conformity with Generally
accepted Accounting Principles (GAAP) in India requires management to
make estimates and assumptions that affect the application of the
accounting policies and the reported amount of asserts, liabilities,
income and expenses and the disclosure of contingent liabilities on the
date of financial statement. Actual results could differ from those
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods. Estimates and underlying
assumptions are review on an ongoing basis.
c) Current and Non-current classification
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in schedule III of the Companies Act, 2013. Based on
the nature of it's activates and the time between the acquisition of
assets for processing and their realization in cash or cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current or non-current classification of
assets and liabilities.
d) Revenue Recognition
Revenue from sale of goods in the course of ordinary activities is
recognized when the significant risk and rewards in respect of
ownership are transferred to the customer and no significant
uncertainty exists regarding the amount of the consideration that will
be derived from the sale of the goods as well as regarding its
collection. Revenue is net of excise duty & sales tax.
Export incentive entitlements are recognized as income when the right
to receive credit as per the terms of the scheme is established in
respect of the exports made, and where there is no significant
uncertainty regarding the ultimate collection of the relevant export
proceeds.
e) Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at the cost of acquisition or
construction, less accumulated depreciation and impairment losses, if
any. The cost of an item or tangible fixed asset comprises its purchase
price excluding cenvat credit but including of non-refundable taxes or
levies and any attributable cost of bringing the asset to its working
condition for its intended use. Advances paid towards acquisition of
tangible fixed assets outstanding at each Balance sheet date, are shown
in fixed assets schedule as advances paid.
Depreciation on fixed assets upto 31st March 2014 was provided on
straight line method at the higher of the rates determined by the
Company based on the estimated useful life of the assets or the rates
specified in Schedule XIV of the Companies Act, 1956.
Pursuant to the notification of the Schedule II of the Companies Act,
2013 with effect from 01st April, 2014, depreciation for the year has
been provided as per the rates determined in Part C of Schedule II or
based on estimated useful life of the assets determined by the
management. Accordingly, for assets which has no residual life as at
1st April, 2014, the book value has been adjusted against Surplus (net
of deferred tax)
The policy of company is to provide depreciation on the Building, Plant
& Machinery and Other Fixed Assets from the date of commercial
production/put to use.
f) Impairment of Assets
In accordance with Accounting Standard 28(AS 28) an "Impairment of
assets" where there is an indication of impairment of the Company's
assets, the carrying amounts of the Company's assets are reviewed at
each balance sheet date to determine whether there is any impairment.
An impairment loss is recognized whenever the carrying amount of an
asset or a cash generating unit exceeds its recoverable amount.
Impairment loss is recognized in the statement of profit & loss.
g) Borrowing Costs
Borrowing costs are interest and other costs incurred by the Company in
connection with the borrowing of funds. Borrowing cost directly
attributable to acquisition or construction of those fixed assets which
necessarily take a substantial period of time to get ready for their
intended use is capitalised. All other borrowing costs are treated as
period cost and charged to the profit and loss account in the year in
which it was incurred.
h) Inventories
Inventories comprises raw materials, work-in-progress, finished goods,
stock-in-trade and stores and spares are carried at the lower of cost
and net realizable value. Cost of inventories comprises all costs of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition In case of
manufactured inventories and WIP, fixed production overheads are
allocated on the basis of normal capacity of production facilities.
Excise duty liability is included in the valuation of closing inventory
of finished goods.
Net realizable value is the estimated selling prices in the ordinary
course of business, less the estimated costs of completion and the
estimated costs necessary to make the sale.
i) Employee Retirement Benefits
1. Defined contribution plan: Company's contribution paid/payable
during the year to provident fund, ESIC and labour welfare fund are
charged to statement of profit and loss account on due basis.
2. Defined benefit plan : Company's liabilities towards gratuity and
long term compensated absences are generally provided for based on
actuarial valuation carried out at the close of each year.
j) Foreign Exchange Transactions
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction. Exchange
differences arising on foreign currency transaction settled during the
period are recognized in the statement of Profit & Loss.
Monetary assets and liabilities denominated in foreign currencies as at
the Balance Sheet date are transacted at period end rates. The
resultant exchange differences are recognised in the Statement of
Profit & Loss. Non - monetary assets are at the rate prevailing on the
date of transaction.
k) Income taxes
Current Tax: Income tax expense comprises current tax and deferred tax
charge or credit. Provision for current tax is based on the results for
the year, in accordance with the provisions of the Income Tax Act,
1961.
Minimum Alternate Tax (MAT) Credit: Minimum Alternate Tax credit is
recognized, as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the
specified period. In the year in which the MAT credit becomes eligible
to be recognized as an asset in accordance with the recommendations
contained in guidance note issued the Institute of Chartered
Accountants of India, the said asset is created by way of a credit to
the Profit & Loss Account and shown as MAT Credit Entitlement under
Loans & Advances. The Company reviews the same at each balance sheet
date and writes down the carrying amount of MAT Credit Entitlement to
the extent there is no longer convincing evidence to the effect that
Company will pay normal Income Tax during the specified period.
Deferred Tax: Deferred Tax is recognized, subject to the consideration
of prudence, as the tax effect of timing difference between the taxable
income & accounting income computed for the current accounting year and
reversal of earlier years' timing difference. Deferred Tax Assets are
recognized and carried forward to the extent that there is a reasonable
certainty, except arising from unabsorbed depreciation and carry
forward losses, which are recognized to the extent that there is
virtual certainty, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
l) Investments
Investments that are readily realizable and intended to be held for not
more than a year from the date of acquisition are classified as current
investments. All other investments are classified as long-term
investments. The provision for any diminution in the value of long
term investments is made only if such a decline is other than
temporary.
m) Cash Flow Statement
Cash flows are reported using the indirect method, whereby a profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, financing and investing
activities of the Company are segregated.
n) Provisions & Contingencies
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Liabilities which are material, and whose future outcome cannot be
ascertained with reasonable certainty, are treated as contingent, and
disclosed by way of notes to the account. Contingent Assets are neither
recognized nor disclosed in the financial statements.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimate.
o) Earning per share
Earnings per Share (EPS) is calculated by dividing the Net Profit or
Loss for the period attributable to equity shareholders by the Weighted
Average Number of equity shares outstanding during the period.
For the purpose of calculating Diluted Earnings per Share, the Net
Profit or Loss for the period attributable to equity shareholders is
divided by the Weighted Average Number of shares outstanding during the
period after adjusted for the effects of all dilutive potential equity
shares.
p) Other Accounting policies
Accounting Policies not specifically referred to are in accordance with
generally accepted accounting principles.
Mar 31, 2014
A) Basis of Accounting
These financial statements have been prepared and presented on the
accrual basis of accounting and comply with the Accounting Standards
prescribed in the Companies (Account Standards) rules 2006 issued by
the Central Government and in compliance with the applicable Accounting
Standards((AS) referred to in sub-section (3C) of Section 211 (read
with section 133 of Companies Act, 2013) of the said Act. The
accounting policies, except otherwise stated, have been consistently
applied by the Company.
All assets and liabilities have been classified as current or
non-current as per the company''s normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of the services and their realization in cash and
cash equivalents, the Company has ascertained its operating cycle as
twelve months for the purpose of current or non-current classification
of assets and liabilities.
b) Uses of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires management to
judgments, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income
and expenses and disclosure of contingent liabilities on the date of
the financial statements. Difference between the actual results and
estimates are recognized in the year in which the results are
known/materialized.
c) Revenue Recognition
Revenue from sale of goods in the course of ordinary activities is
recognized when the significant risk and rewards in respect of
ownership are transferred to the customer and no significant
uncertainty exists regarding the amount of the consideration that will
be derived from the sale of the goods as well as regarding its
collection. Revenue is net of excise duty & sales tax.
Export incentive entitlements are recognized as income when the right
to receive credit as per the terms of the scheme is established in
respect of the exports made, and where there is no significant
uncertainty regarding the ultimate collection of the relevant export
proceeds.
d) Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at the cost of acquisition or
construction, less accumulated depreciation and impairment losses, if
any. the cost of an item or tangible fixed asset comprises its purchase
price excluding cenvat credit but including of non refundable taxes or
levies and any attributable cost of bringing the asset to its working
condition for its intended use. Advances paid towards acquisition of
tangible fixed assets outstanding at each Balance sheet date, are shown
in fixed assets schedule as advances paid.
Depreciation on tangible fixed assets, is provided on a pro-rata basis,
using the straight-line method and at the rates specified in
Schedule-XIV to the Companies Act, 1956. Depreciation on fixed assets
costing upto Rs. 5000/- is provided @ 100% over a period of one(1)
year. The policy of company is to provide depreciation on the Building,
Plant & Machinery and Other Fixed Assets from the date of commercial
production/put to use.
e) Impairment of Assets
An asset is impaired if there is sufficient indication that the
carrying cost would exceed the recoverable amount of cash generating
asset. In that event an impairment loss so computed would be recognized
in the accounts in the relevant year.
f) Borrowing Costs
Borrowing costs are interest and other costs incurred by the Company in
connection with the borrowing of funds. Borrowing cost directly
attributable to acquisition or construction of those fixed assets which
necessarily take a substantial period of time to get ready for their
intended use is capitalised. All other borrowing costs are treated as
period cost and charged to the profit and loss account in the year in
which it was incurred.
g) Inventories
Inventories comprises raw materials, work-in-progress, finished goods,
stock-in-trade and stores and spares are carried at the lower of cost
and net realizable value. Cost of inventories comprises all costs of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition In case of
manufactured inventories and WIP, fixed production overheads are
allocated on the basis of normal capacity of production facilities.
Excise duty liability is included in the valuation of closing inventory
of finished goods.
Net realizable value is the estimated selling prices in the ordinary
course of business, less the estimated costs of completion and the
estimated costs necessary to make the sale.
h) Employee Retirement Benefits
1. Defined contribution plan: Company''s contribution paid/payable
during the year to provident fund, ESIC and labour welfare fund are
charged to statement of profit and loss account on due basis.
2. Defined benefit plan : Company''s liabilities towards gratuity and
long term compensated absences are provided for based on actuarial
valuation carried out at the close of each year. The actuarial
valuation is done by an Independent Actuary as per projected unit
credit method.
i) Foreign Exchange Transactions
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction. Exchange
differences arising on foreign currency transaction settled during the
period are recognized in the statement of Profit & Loss.
Monetary assets and liabilities denominated in foreign currencies as at
the Balance Sheet date are transacted at period end rates. The
resultant exchange differences are recognised in the Statement of
Profit & Loss. Non Âmonetary assets are at the rate prevailing on the
date of transaction.
j) Income taxes
Current Tax: Provision for Taxation is ascertained on the basis of
assessable profit computed in accordance with the provisions of Income
Tax Act, 1961.
Minimum Alternate Tax (MAT) Credit: Minimum Alternate Tax credit is
recognized, as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the
specified period. In the year in which the MAT credit becomes eligible
to be recognized as an asset in accordance with the recommendations
contained in guidance note issued the Institute of Chartered
Accountants of India, the said asset is created by way of a credit to
the Profit & Loss Account and shown as MAT Credit Entitlement under
Loans & Advances. The Company reviews the same at each balance sheet
date and writes down the carrying amount of MAT Credit Entitlement to
the extent there is no longer convincing evidence to the effect that
Company will pay normal Income Tax during the specified period.
Deferred Tax: Deferred Tax is recognized, subject to the consideration
of prudence, as the tax effect of timing difference between the taxable
income & accounting income computed for the current accounting year and
reversal of earlier years'' timing difference. Deferred Tax Assets are
recognized and carried forward to the extent that there is a reasonable
certainty, except arising from unabsorbed depreciation and carry
forward losses, which are recognized to the extent that there is
virtual certainty, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
k) Investments
Investments that are readily realizable and intended to be held for not
more than a year from the date of acquisition are classified as current
investments. All other investments are classified as long-term
investments. The provision for any diminution in the value of long term
investments is made only if such a decline is other than temporary.
l) Cash Flow Statement
Cash flows are reported using the indirect method, whereby a profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, financing and investing
activities of the Company are segregated.
m) Provisions & Contingencies
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Liabilities which are material, and whose future outcome cannot be
ascertained with reasonable certainty, are treated as contingent, and
disclosed by way of notes to the account. Contingent Assets are neither
recognized nor disclosed in the financial statements.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimate.
n) Earning per share
Earnings per Share (EPS) is calculated by dividing the Net Profit or
Loss for the period attributable to equity shareholders by the Weighted
Average Number of equity shares outstanding during the period.
For the purpose of calculating Diluted Earnings per Share, the Net
Profit or Loss for the period attributable to equity shareholders is
divided by the Weighted Average Number of shares outstanding during the
period after adjusted for the effects of all dilutive potential equity
shares.
o) Other Accounting policies
Accounting Policies not specifically referred to are in accordance with
generally accepted accounting principles.
Pursuant to approval of shareholders by way of Special Resolution
accorded in compliance with provisions of Section 81(1A) and other
applicable provisions, if any, of the Companies Act, 1956 (including
any amendment(s) or re-enactment thereof), and in-principle approval
received from BSE Limited, copies of which are placed before the
meeting and initialed by the Chairman for the purpose of identification
thereof, and subject to the provisions of the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009 (hereinafter referred to as "SEBI (ICDR)
Regulations") and in accordance with other existing Guidelines, rules
and regulations of the Securities and Exchange Board of India ("SEBI")
including the SEBI (Substantial Acquisition of Shares & Takeovers)
Regulations, 2011 and subject to enabling provisions of the Memorandum
and Articles of Association of the Company, the Board of Directors
hereby allot 56,75,350 (Fifty Six Lakhs Seventy Five Thousand Three
Hundred and Fifty Only) Equity Shares of Rs. 10/- (Rupees Ten Only)
each and 40,82,650 (Forty Lakhs Eighty Two Thousand Six Hundred and
Fifty Only) Warrants, to be convertible at the option of warrant
holders in one or more tranches, within 18 months from the date of
allotment into equivalent number of fully paid up Equity Share of face
value of Rs.10/- each for cash at an exercise price of Rs. 10/- (Rupees
Ten only) each or such other price as may be determined in accordance
with the provisions of SEBI (ICDR) Regulations, 2009, on Preferential
basis to the persons belonging to the Promoters and Non-Promoter. In
Principal Approval of the above mentioned Equity Shares & Shares
Warrants has been received from BSE on 21.11.2013.
A. The company has only one class of shares having a par value of
Rs10/- per share. Each holder of equity shares is entitled to one vote
per share. The dividend proposed by the Board of Directors is subject
to the approval of the shareholder''s in the ensuring General Meeting.
B. In the event of liquidation of the company, the holder of equity
shares will be entitled to receive remaining assets of the company in
proportion to their number of equity shares after distribution of all
preferential amounts.
(a) Term loan from Indian Overseas Bank of Rs. 90,65,098/- which
carries interest base rate 3.75% and is repayable in 60 installments of
Rs. 2,06,000/- from October, 2012. The loan is secured by all
immovable & movable fixed assets of the company.
(b) Term loan from Indian Overseas Bank of Rs. 1,95,59,433/- which
carries interest base rate 3.75% and is repayable in 84 installments of
Rs. 3,28,000/- from October, 2012. The loan is secured by all
immovable & movable fixed assets of the company.
(c) Term loan includes Working Capital Term Loan of Rs. 1,24,72,000/-
from Indian Overseas Bank which carries interest base rate 3.75% and
is repayable in 60 monthly installments of Rs. 2,83,000/- from October,
2012. The loan is secured by 1st charge on the current and fixed assets
of the company.
(d) Vehicle Finance loan carries interest @ 10% p.a. and repayable in
36 equal monthly installments. The loan is secured by hypothecation of
vehicle.
Working capital loan availed from Indian overseas bank are secured by
hypothecation of inventories and book debts ( present & future) also
first charge by way of mortgage on all immovable properties and by way
of hypothecation on all the fixed assets of the company both present &
future and guaranteed by director/promoter. The said facility is
repayable on demand.
Mar 31, 2013
A) Basis of Preparation of Financial Statements
The Financial statements of the company have been prepared to comply
with all material aspects of the applicable Accounting Principles in
India, the Accounting Standards issued by The Institute of Chartered
Accountants of India and the relevant provision of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention and on the basis of going concern basis. The company
follows the mercantile system of accounting and recognizes income and
expenditure on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the company''s normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of the services and their realization in cash and
cash equivalents, the Company has ascertained its operating cycle as
twelve months for the purpose of current or non-current classification
of assets and liabilities.
b) Uses of Estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets and liabilities, revenues and expenses and disclosure of
contingent liabilities. Such estimates and assumptions are based on
management''s evaluation of relevant facts and circumstances as on the
date of financial statements. The actual outcome may diverge from these
estimates.
c) Fixed Assets & Depreciation
1. Fixed Assets
i. Fixes Assts are stated at cost of acquisition less accumulated
depreciation. Cost includes all expenses, borrowing cost and other
incidental expenses incurred up to the date of installation/put to use.
ii) Convert Credit/Value Added tax availed on purchase of fixed assets
are reduced from the cost of respective assets.
2. Depreciation
Depreciation is provided on straight line method at the rates specified
in schedule XIV of the Companies Act, 1956 on pro rata basis. The
policy of company is to provide depreciation on the Building, Plant &
Machinery and Other Fixed Assets from the date of commercial
production/put to use.
d) Impairment of Assets
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statements of Profit & Loss in the year in which an asset is identified
as impaired. The impairment loss recognized in prior accounting period
is increase/reverses where there has been change in the estimate o
recoverable value. The recoverable value is the higher of the assets
net selling prices and value in use.
e) Borrowing Costs
Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalized as part of the cost of the
assets, upto the date the assets is put to use. Other costs are charged
to the statement of profit and loss account in the year in which they
are incurred.
f) Inventories
Inventories are valued at lower of cost or net realizable value (Cost
is determined on weighted average basis). The Cost of work-in-progress
and finished goods comprises of raw materials, direct labour, other
direct costs and related production overheads & Excise duty as
applicable. Net realizable value is the estimate of the selling price
in the ordinary course of business as applicable.
g) Employee Retirement Benefits
1. Defined contribution plan : Company''s contribution paid/payable
during the year to provident fund, ESIC and labor welfare fund are
charged to statement of profit and loss account.
2. Defined benefit plan : Company''s liabilities towards gratuity and
leave encashment are determined using the projected unit credit method
which considers each period of service as giving rise to an additional
unit of benefit entitlement and measures each unit separately to build
up the final obligation. Past services are recognized on a straight
line basis over the average period until the amended benefits become
vested. Actuarial gain and losses are recognized immediately in the
statement of profit and loss account as income or expenses. Obligations
is measured at the present value of estimated future cash flow using a
discounted rate that is determined by the reference to market yields at
the balance sheet date on government bonds where the currency and terms
of government bonds are consistent with the currency and estimated
terms of the defined benefit obligation.
h) Foreign Currency Transactions
1. Transactions in foreign currency are recorded at the exchange rate
prevailing as on date of transaction.
2. Foreign currency assets/liabilities as on the balance sheet date are
translated at the exchange rate prevailing on the date of balance
sheet.
I) Taxes on Income
Tax expenses comprised of current tax, deferred tax charge or credit.
Current tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act. The deferred
tax charged or credit is recognized using prevailing enacted or
substantively annexed tax rate where there is unabsorbed depreciation
or carry forward losses, deferred tax assets are recognized only if
there is virtual certainty or realization such assets. Other deferred
tax assets are recognized only to the extent there is reasonable
certainty of realization in future. Deferred tax assets/liabilities are
reviewed as at each balance sheet date based on developments during the
period. MAT Credit Entitlement is shown under the current Assets in the
Balance Sheet. The same will be charged to profit & loss account in
coming years as per provisions of Section 115JB of Income Tax Act,
1961.
j) Investments
Investments: Long term investments are stated at cost. Provision for
diminution in value is made only if, in the opinion of management such
a decline is other than temporary.
k) Revenue Recognition
Sales are recognized when goods are supplied and are recorded net of
returns, sales tax & excise duty. Expenses are accounted for on accrual
basis.
l) Provisions & Contingencies
A provision is recognized when the company has a present obligation as
a result of past event. It is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation in
respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on the best
estimate of the expenditure required to settle the obligation at the
balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimate.
m) Earning per share
In accordance with the Accounting Standard-20(AS-20) "Earning Per
Share" issued by the Institute of Chartered Accountants of India,
earning per share is computed by dividing the profit after tax with the
weighted average number of shares outstanding at the year end.
n) Other Accounting policies
Accounting Policies not specifically referred to are in accordance with
generally accepted accounting principles.
Mar 31, 2012
A) Basis of Preparation
The Financial Statements are prepared to comply in all material aspects
with applicable accounting principles 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 in
consonance with generally accepted accounting principles.
b) Fixed Assets
All Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. In case of fixed
assets acquired for new project/expansions, interest cost on borrowings
and other related expenses incurred up to the date of completion of
project are capitalized.
c) Depreciation on Fixed Assets
Depreciation is provided pro-rata to the period of use on the Straight
Line method at the rates prescribed under Schedule XIV to the Companies
Act, 1956 on fixed assets used for the purpose of business. No
Depreciation is provided if there is any deletion of assets during the
year.
d) Impairment of Assets
The Company assesses at each Balance sheet whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the assets. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit & Loss Account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
e) Inventories
Inventories are valued at lower of cost or net realizable value (Cost
is determined on weighted average basis). The Cost of work-in-progress
and finished goods comprises of raw materials, direct labor, other
direct costs and related production overheads & Excise duty as
applicable. Net realizable value is the estimate of the selling price
in the ordinary course of business as applicable.
f) Employee Retirement Benefits
Short Term Employee benefits- All employee benefits payable wholly
within twelve months of rendering the service are classified as short
term employee benefits. These benefits include compensated absences
such as paid annual leave and sickness leave. The undiscounted amount
of short term employee benefits expected to be paid in exchange for the
services rendered by employees are recognized as an expenses during the
months.
Long Term employee benefits plans: Provident Fund contributions are
made to Employee Provident Fund Organization framed by Govt. of India
in the year 1952. The company & eligible employees make monthly
contributions to the Provident Fund Organization equal to specified
percentage of the covered employee's salary. The Interest rate payable
by the Provident Fund organization to the beneficiaries every year is
being notified by the Government. The Company contributes to Employee's
State Insurance Fund & Employee's Pension Scheme 1995 & has no further
obligation to the plan beyond its monthly contribution.
Gratuity & Leave encashment plan: The Company has Defined Benefits Plan
comprising of Gratuity Fund & Leave Encashment Fund. The Liability for
the Gratuity & Leave Encashment plan is determined on the basis of an
independent actuarial valuation done at the year end. The actuarial
valuation method used for measuring the liability is the Projected Unit
Credit method. The obligations are measured as the present value of
estimated future cash flows discounted at rates reflecting the
prevailing market yields of Indian Government securities as at the
Balance Sheet date for the estimated term of the obligations. The
estimate of future salary increase considered takes into account the
inflation, seniority, promotion and other relevant factors. Actuarial
gains and losses are recognized immediately in the Profit & Loss
Account.
g. Taxes on Income
Income Tax & Deferred Tax : Provision for Tax is made on the basis of
taxable income for the year at current rates. Tax represents the amount
of Income Tax payable in respect of the taxable income for the
reporting period. Deferred Tax represents the effect of timing
difference between taxable income and accounting income for the
reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. The Deferred Tax Asset is
recognized and carried forward only to the extent that there is a
reasonable certainty that the assets will be realized in future.
h) Investments
Investments: Long term investments are stated at cost as reduced by
amounts written off/provision made for diminution in value. Current
investments are stated at cost or fair value, whichever is lower.
i) Revenue Recognition
Sales are recognized upon delivery of products and are recorded
exclusive of sales tax, excise duty & net of returned.
j) Provisions & Contingencies
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably required and outflow of
resource & a reliable estimate can be made of the amount of the
obligations. A disclose for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood or outflow of
resources' is remote, no provisions or disclosure is made.
Mar 31, 2010
I. Financial Statements: The Financial Statements are prepared to
comply in all material aspects with applicable accounting principles 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 in consonance with generally accepted accounting
principles.
II. Fixed Assets: All Fixed Assets are stated at cost less accumulated
depreciation. Cost comprises the purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use. In case of fixed assets acquired for new project/expansions,
interest cost on borrowings and other related expenses incurred upto
the date of completion of project are capitalized.
III. Depreciation: Depreciation is provided pro-rata to the period of
use on the Straight Line method at the rates prescribed under Schedule
XIV to the Companies Act, 1956 on fixed assets used for the purpose of
business. No Depreciation is provided if there is any deletion of
assets during the year.
IV. Impairments of Assets: The Company assesses at each Balance sheet
whether there is any indication that an asset may be impaired. If any
such indication exists, the company estimates the recoverable amount of
the assets. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the Profit & Loss Account. If at the Balance Sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount.
V. Inventories: Inventories are valued at lower of cost or net
realizable value (Cost is determined on weighted average basis). The
Cost of work-in-progress and finished goods comprises of raw materials,
direct labour, other direct costs and related production overheads &
Excise duty as applicable. Net realizable value is the estimate of the
selling price in the ordinary course of business as applicable.
VI. Employee Benefits:- Short Term Employee benefits- All employee
benefits payable wholly within twelve months of rendering the service
are classified as short term employee benefits. These benefits include
compensated absences such as paid annual leave and sickness leave. The
undiscounted amount of short term employee benefits expected to be paid
in exchange for the services rendered by employees are recognized as an
expenses during the months.
Long Term employee benefits plans: Provident Fund contributions are
made to Employee Provident Fund Organization framed by Govt. of India
in the year 1952. The company & eligible employees make monthly
contributions to the Provident Fund Organization equal to specified
percentage of the covered employees salary. The Interest rate payable
by the Provident Fund organization to the beneficiaries every year is
being notified by the Government. The Company contributes to Employees
State Insurance Fund & Employees Pension Scheme 1995 & has no further
obligation to the plan beyond its monthly contribution.
Gratuity & Leave encashment plan: The Company has Defined Benefits Plan
comprising of Gratuity Fund & Leave Encashment Fund. The Liability for
the Gratuity & Leave Encashment plan is determined on the basis of an
independent actuarial valuation done at the year end. The actuarial
valuation method used for measuring the liability is the Projected Unit
Credit method. The obligations are measured as the present value of
estimated future cash flows discounted at rates reflecting the
prevailing market yields of Indian Government securities as at the
Balance Sheet date for the estimated term of the obligations. The
estimate of future salary increase considered takes into account the
inflation, seniority, promotion and other relevant factors. Actuarial
gains and losses are recognized immediately in the Profit & Loss
Account.
VII. Income Tax & Deferred Tax : Provision for Tax is made on the
basis of taxable income for the year at current rates. Tax represents
the amount of Income Tax payable in respect of the taxable income for
the reporting period. Deferred Tax represents the effect of timing
difference between taxable income and accounting income for the
reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. The Deferred Tax Asset is
recognized and carried forward only to the extent that there is a
reasonable certainty that the assets will be realized in future.
VIII. Investments: Long term investments are stated at cost as reduced
by amounts written off/provision made for diminution in value. Current
investments are stated at cost or fair value, whichever is lower.
IX. Revenue Recognition: Sales are recognized upon delivery of
products and are recorded exclusive of sales tax, excise duty & net of
returned.
X. Contingent Liability: The Company recognizes a provision when there
is a present obligation as a result of a past event that probably
required and outflow of resource & a reliable estimate can be made of
the amount of the obligations. A disclose for a contingent liability is
made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. Where
there is a possible obligation or a present obligation that the
likelihood or outflow of resources is remote, no provisions or
disclosure is made.
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