Home  »  Company  »  Alchemist  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Alchemist Ltd. Company

Mar 31, 2015

(i) Basis of Preparation

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(ii) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Estimate and assumptions used in the accompanying financial statement are based upon management evaluation of relevant facts and circumstances as at the date of the financial statements, which in its opinion are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current & future periods.

(iii) Fixed Assets

Fixed assets are stated at their original cost of acquisition/revaluation, including taxes, freight, and other incidental expenses related to acquisition and installation of the concerned assets. Internally fabricated assets are valued at cost. Interest on borrowed funds attributable to acquisition/construction of fixed assets & related preoperative expenses up to the date of commencement of commercial production, are capitalized.

(iv) Capital Work In Progress

Project under commissioning and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

(v) Depreciation

Depreciation on tangible fixed assets is provided on Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Saplings have been written off at the rate of 1/7th of the cost as per management estimates of useful life and the residual value is estimated to be nil, as the same does not have a mention in the Schedule II of the Companies Act, 2013.

(vi) Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine

- the provision for impairment loss, if any, required or

- the reversal, if any, required of impairment loss recognised in previous periods.

Impairment loss is recognised when the carrying amount of assets exceeds its recoverable amount.

(vii) Government Grants

Grants in the nature of promoter's contribution and in which repayment is ordinarily not expected are treated as a part of shareholders funds and credited to Capital Reserve.

Grants in relation to specific fixed assets are deducted from the cost of the fixed assets.

(viii) Inventories

The basis of valuation of inventories is as under:

Raw material, semi-finished goods and finished goods are valued at lower of cost or net realizable value. The raw material costs are based on FIFO method. Further, in respect of the manufactured inventories i.e. process stock and finished goods; cost includes raw material cost plus conversion cost and other relatable manufacturing overheads.

Stores, spares and scrap are valued at lower of cost or under. In Compliance with AS-2 Prescribed by ICAI, the company has included excise duty on stock of finished goods; however this has no impact on profit of the company for the year under review

(ix) Foreign Currency Transaction

Transaction in foreign currency is recorded at the exchange rate prevailing at the time of transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the profit and loss account.

In the case of assets and liabilities standing at the year end date, the balances are stated at the rates prevailing at the year end and the exchange difference there on are adjusted in the profit and loss account.

In respect of forward contracts taken by the Company, the difference between the forward rate and the exchange rate at the end of transaction is recognised as income/expense over the life of the forward contract.

(x) Intangible Assets and its Amortisation

The R&D expenditure on revenue account and capital accounts had been capitalised under the head Fixed Assets and are being amortised over a period of 10 Years

Intangible assets recognised in the financial statements are amortised over the useful life of the asset.

(xi) 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 measured.

- Sales:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with ownership; and No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

- Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding held and the interest rate applicable.

- Dividend:

Dividend income is recognized as income when the right to receive the payment is established.

- Insurance and other claims:

Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized and the ultimate collection thereof.

(xii) Employee Benefits

- Provident fund

The Company makes contribution to statutory provident fund in accordance with Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

- Employees State Insurance

The Company makes contribution to Employees State Insurance scheme in accordance with Employees' State Insurance Act, 1948. The scheme is a self-financing social security and health insurance scheme for workers and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

- Gratuity

Gratuity is a post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

- Compensated absences

Compensated absences are post-employment benefit and are in the nature of defined benefit plans. The liability recognized in the balance sheet in respect of compensated absences is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

(xiii) Taxation

The tax expense comprises of current taxes and deferred taxes. Current Tax is the amount of income tax determined to be payable in respect of taxable income for a period as per the provisions of Income Tax, 1961. Deferred tax is the effect of timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are reviewed at each balance sheet date and recognized/ derecognized only to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient future taxable income

will be available against which such deferred tax assets can be realized.

(xiv) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended uses. All other borrowing costs are charged to revenue.

(xv) Earning per Share

Basic earnings per share are 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. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(xvi) Common Expenses

Common expenses relating to Head office and other administrative offices have been allocated to various profit centres on a reasonable basis.

(xvii) Investments

Investments that are readily realizable and intended to be held for not more than one year are classified as current investments; all other investments are classified as long term investments. Long term Investment is carried at cost less provision (if any) for decline in value which is other than temporary in nature. Current investments are carried at lower of cost and fair market value.

(xviii) Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalised.

If there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Leases, where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease receipt/payments are recognized as an income/expense in the Statement of Profit and Loss account.

(xix) Rounding Off

Amounts have been rounded off to the nearest Rupee.

(xx) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

Equity Shares: The company has only one class of equity shares having a par value of Rs. 10/- per shares. Each holder of equity Shares is entitled to one vote per share.

Redeemable Preference Shares: The Preference Shares are in the nature of redeemable preference shares having a par value of Rs. 100/- per share.


Mar 31, 2014

(i) Basis of Preparation

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under historical cost convention on the accrual basis, GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013 (to the extent notified), the Companies Act, 1956 (to the extent applicable), and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Estimate and assumptions used in the accompanying financial statement are based upon management evaluation of relevant facts and circumstances as at the date of the financial statements, which in its opinion are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current & future periods.

(iii) Fixed Assets

Fixed assets are stated at their original cost of acquisition/revaluation, including taxes, freight, and other incidental expenses related to acquisition and installation of the concerned assets. Internally fabricated assets are valued at cost. Interest on borrowed funds attributable to acquisition/construction of fixed assets & related preoperative expenses up to the date of commencement of commercial production, are capitalized.

(iv) Capital Work In Progress

Project under commissioning and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

(v) Depreciation

Depreciation on fixed assets is provided on straight-line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 and on the re-valued cost wherever applicable. The difference of the deprecation between the revalued cost and historical cost has been charged to Profit & Loss Account. Saplings and Flower Beds have been written off at the rate of 1/7th & 1/10th of the cost respectively as per management estimates of useful life.

(vi) Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine

* the provision for impairment loss, if any, required or

* the reversal, if any, required of impairment loss recognised in previous periods.

Impairment loss is recognised when the carrying amount of assets exceeds its recoverable amount.

(vii) Government Grants

Grants in the nature of promoter''s contribution and in which repayment is ordinarily not expected are treated as a part of shareholders funds and credited to Capital Reserve.

Grants in relation to specific fixed assets are deducted from the cost of the fixed assets.

(viii) Inventories

The basis of valuation of inventories is as under:

* Raw material, semi-finished goods and finished goods are valued at lower of cost or net realizable value. The raw material costs are based on FIFO method. Further, in respect of the manufactured inventories i.e. process stock and finished goods; cost includes raw materia! cost plus conversion cost and other relatable manufacturing overheads.

* Stores, spares and scrap are valued at lower of cost or under.

* In Compliance with AS-2 Prescribed by ICAI, the company has included excise duty on stock of finished goods; however this has no impact on profit of the company for the year under review

(ix) Foreign Currency Transaction

Transaction in foreign currency is recorded at the exchange rate prevailing at the time of transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the profit and loss account.

In the case of assets and liabilities standing at the year end date, the balances are stated at the rates prevailing at the year end and the exchange difference there on are adjusted in the profit and loss account.

In respect of forward contracts taken by the Company, the difference between the forward rate and the exchange rate at the end of transaction is recognised as income/expense over the life of the forward contract.

(x) Intangible Assets and its Amortisation

The R&D expenditure on revenue account and capita! accounts had been capitalised under the head Fixed Assets and are being amortised over a period of 10 Years Intangible assets recognised in the financial statements are amortised over the useful life of the asset.

(xi) 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 measured.

* Sales:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with ownership; and No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding held and the interest rate applicable.

* Dividend:

Dividend income is recognized as income when the right to receive the payment is established.

* Insurance and other claims:

Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized and the ultimate collection thereof.

(xii) Employee Benefits

* Provident fund

The Company makes contribution to statutory provident fund in accordance with Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

* Employee State Insurance

The Company makes contribution to Employee State insurance scheme in accordance with Employees'' State insurance Act, 1948. The scheme is a self-financing social security and health insurance scheme for workers and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

* Gratuity

Gratuity is a post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

* Compensated absences

Compensated absences are post-employment benefit and are in the nature of defined benefit plans. The liability recognized in the balance sheet in respect of compensated absences is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

(xiii) Taxation

The tax expense comprises of current taxes and deferred taxes. Current Tax is the amount of income tax determined to be payable in respect of taxable income for a period as per the provisions of Income Tax, 1961. Deferred tax is the effect of timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are reviewed at each balance sheet date and recognized/ derecognized only to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(xiv) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended uses. Ail other borrowing costs are charged to revenue.

(xv) Deferred Revenue Expenditure

Expenses incurred by Company under various head for Brand building /launching of new projects have been charged to deferred expenditure. These expenditure are written off over a period of three year as the benefit of theses expenditure will be available to the company during this period.

(xvi) Earning per Share

Basic earnings per share are 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. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(xvii) Common Expenses

Common expenses relating to Head office and other administrative offices have been allocated to various profit centres on a reasonable basis.

(xviii) Investments

Investments that are readily realizable and intended to be held for not more than one year are classified as current investments; all other investments are classified as long term investments. Long term Investment is carried at cost less provision (if any) for decline in value which is other than temporary in nature. Current investments are carried at lower of cost and fair market value,

(xix) Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalised.

If there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Leases, where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease receipt/payments are recognized as an income/expense in the Statement of Profit and Loss account.

(xx) Rounding Off

Amounts have been rounded off to the nearest Rupee.

(xxi) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

(i) Basis of Preparation

The financial statements have been prepared to comply with the Accounting Standards referred to in Companies (Accounting Standards) Rule 2006 issued by the Central Government in exercise of the power conferred under sub-section (1) (a) of section 642 and the relevant provisions of the Companies Act, 1956 (the ''Act''). The financial statements have been prepared under the historical cost convention on the accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(ii) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Estimate and assumptions used in the accompanying financial statement are based upon management evaluation of relevant facts and circumstances as at the date of the financial statements, which in its opinion are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current & future periods.

(iii) Fixed Assets

Fixed assets are stated at their original cost of acquisition/revaluation, including taxes, freight, and other incidental expenses related to acquisition and installation of the concerned assets. Internally fabricated assets are valued at cost. Interest on borrowed funds attributable to acquisition/construction of fixed assets & related preoperative expenses up to the date of commencement of commercial production, are capitalized.

(iv) Capital Work In Progress

Project under commissioning and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

(v) Depreciation

Depreciation on fixed assets is provided on straight-line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 and on the re-valued cost wherever applicable. The difference of the depreciation between the revalued cost and historical cost has been charged to Profit & Loss Account. Saplings and Flower Beds have been written off at the rate of 1/7th & 1/10th of the cost respectively as per management estimates of useful life.

(vi) Impairment Of Assets

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine

- the provision for impairment loss, if any, required or

- the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of assets exceeds its recoverable amount.

(vii) Government Grants

Grants in the nature of promoter''s contribution and in which repayment is ordinarily not expected are treated as a part of shareholders funds and credited to Capital Reserve.

Grants in relation to specific fixed assets are deducted from the cost of the fixed assets.

(viii) Inventories

The basis of valuation of inventories is as under:

- Raw material, semi-finished goods and finished goods are valued at lower of cost or net realizable value. The raw material costs are based on FIFO method. Further, in respect of the manufactured inventories i.e. process stock and finished goods; cost includes raw material cost plus conversion cost and other relatable manufacturing overheads.

- Stores, spares and scrap are valued at lower of cost or under.

- In Compliance with AS-2 Prescribed by ICAI, the company has included excise duty on stock of finished goods; however this has no impact on profit of the company for the year under review

(ix) Foreign Currency Transaction

Transaction in foreign currency is recorded at the exchange rate prevailing at the time of transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the profit and loss account.

In the case of assets and liabilities standing at the year end date, the balances are stated at the rates prevailing at the year end and the exchange difference there on are adjusted in the profit and loss account.

In respect of forward contracts taken by the Company, the difference between the forward rate and the exchange rate at the end of transaction is recognised as income/expense over the life of the forward contract.

(x) Intangible Assets and its Amortisation

The R&D expenditure on revenue account and capital accounts had been capitalised under the head

Fixed Assets and are being amortised over a period of 10 Years

Intangible assets recognised in the financial statements are amortised over the useful life of the asset.

(xi) 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 measured.

Sales:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with ownership; and No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding held and the interest rate applicable.

Dividend:

Dividend income is recognized as income when the right to receive the payment is established.

Insurance and other claims:

Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized and the ultimate collection thereof.

(xii) Employee Benefits

- Provident fund

The Company makes contribution to statutory provident fund in accordance with Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

- Gratuity

Gratuity is a post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

- Compensated absences

Provision for compensated absences when determined to be a long term benefit is made on the basis of actuarial valuation as at the end of the year. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

(xiii) Taxation

The tax expense comprises of current taxes and deferred taxes. Current Tax is the amount of income tax determined to be payable in respect of taxable income for a period as per the provisions of Income Tax, 1961. Deferred tax is the effect of timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are reviewed at each balance sheet date and recognized/ derecognized only to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(xiv) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended uses. All other borrowing costs are charged to revenue.

(xv) Deferred Revenue Expenditure

Expenses incurred by Company under various head for Brand building /launching of new projects have been charged to deferred expenditure. These expenditure are written off over a period of three year as the benefit of theses expenditure will be available to the company during this period

(xvi) Earning Per Share

Basic earnings per share are 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. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(xvii) Common Expenses

Common expenses relating to Head office and other administrative offices have been allocated to various profit centres on a reasonable basis.

(xviii) Investments

Investments that are readily realizable and intended to be held for not more than one year are classified as current investments; all other investments are classified as long term investments. Long term Investment is carried at cost less provision (if any) for decline in value which is other than temporary in nature. Current investments are carried at lower of cost and fair market value.

(xix) Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalised.

If there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Leases, where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease receipt/payments are recognized as an income/expense in the Statement of Profit and Loss.

(xx) Rounding Off

Amounts have been rounded off to the nearest Rupee.

(xxi) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

I) Accounting Convention

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

ii) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Estimate and assumptions used in the accompanying financial statement are based upon management evaluation of relevant facts and circumstances as at the date of the financial statements, which in its opinion are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current & future periods.

iii) Fixed Assets

Fixed assets are stated at their original cost of acquisition/revaluation, including taxes, freight, and other incidental expenses related to acquisition and installation of the concerned assets. Internally fabricated assets are valued at cost. Interest on borrowed funds attributable to acquisition/construction of fixed assets & related preoperative expenses up to the date of commencement of commercial production, are capitalized.

iv) Capital Work In Progress

Project under commissioning and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

v) Depreciation

Depreciation on fixed assets is provided on straight-line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 and on the re-valued cost wherever applicable. The difference of the deprecation between the revalued cost and historical cost has been charged to Profit & Loss Account. Saplings and Flower Beds have been written off at the rate of 1 /7th & 1 /1 Oth of the cost respectively.

vi) Government Grants

Grants in the nature of promoter's contribution and in which repayment is ordinarily not expected are treated as shareholders funds.

Grants in relation to specific fixed assets are deducted from the cost of the fixed assets. vii) Inventories

The basis of valuation of inventories is as under:

Raw material, semi finished goods and finished goods are valued at lower of cost or net realizable value. The raw material costs are based on weighted average method. Further, in respect of the manufactured inventories i.e. process stock and finished goods; cost includes raw material cost plus conversion cost and other relatable manufacturing overheads.

Stores, spares and scrap are valued at lower of cost or under.

In Compliance with AS-2 Prescribed by ICAI, the company has included excise duty on stock of finished goods, however this has no impact on profit of the company for the year under review

viii) Foreign Currency Transaction

Transaction in foreign currency is recorded at the exchange rate prevailing at the time of transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the profit and loss account.

In the case of assets and liabilities standing at the yearend date, the balances are stated at the rates prevailing at the year end and the exchange difference there on are adjusted in the profit and loss account.

In respect of forward contracts taken by the Company, the difference between the forward rate and the exchange rate at the end of transaction is recognised as income/expense over the life of the forward contract.

ix) Intangible Assets and its Amortisation

The R&D expenditure on revenue account and capital accounts had been capitalised under the head Fixed Assets and are being amortised over a period of 10 Years

Intangible assets recognised in the financial statements are amortised over the useful life of the asset.

(x) Revenue Recognition

Items of income & expenditure are recognised on accrual basis. Dividend is accounted for when the right to receive payment is established.

(xi) Retirement Benefits

Company's Contribution to Provident Fund and Family Pension fund are charged to Profit & Loss Account.

Contribution to Provident Fund is accounted for on accrual basis with corresponding contribution to recognised Fund.

Gratuity liability is defined benefit or obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. The liability so provided is unfunded.

Leave encashment is provided for on the basis of an actuarial valuation made at the end of each financial year.

(xii). Taxes On Income

Income Tax for the year comprises of current tax and deferred tax. Current tax provision is made on the tax liability computed after considering tax allowances and exemption in accordance with the I ncome Tax Act 1961.

Deferred tax charge or credit and the corresponding deferred tax liability or asset is recognised for timing differences between the profit/losses offered for income tax and profit/loss as per financial statements. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future.

(xiii) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of qualify assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended uses. All other borrowing costs are charged to revenue.

(xiv) Deferred Revenue Expenditure

Expenses incurred by Company under various head for Brand building /launching of new projects have been charged to deferred expenditure. These expenditure are written off over a period of 5 year as the benefit of theses expenditure will be available to the company during this period.

(xv) Earning Per Share

The earning considered in ascertaining the Company's EPS comprises as the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted EPS comprises the weighted average number of shares considered for deriving basic EPS & also the weighted average no of shares that could have been issued on the conversion of all diluted potential equity shares.

(xvi) Common Expenses

Common expenses relating to Head office and other administrative offices have been allocated to various profit centres on a reasonable basis.

(xvii) Investments

Long term investments are stated at cost. Provision is made for diminution in the value of long term investments, if such decline is other than temporary. Current Investment is carried at cost or fair value, which ever is lower.

(xviii) Operating Leases

Assests taken on lease under which all risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating leases are recognised as expenses.

(xix). Impairment Of Assets

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine the provision for impairment loss , if any , required or the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of assets exceeds its recoverable amount.

(xx) Rounding Off

Amounts have been rounded off to the nearest Rupee.

(xxi) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

1. ACCOUNTING CONVENTION

The Financial statements are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards issued by "The Institute of Chartered Accountants of India" and relevant presentational requirements of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of Financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known / materialised.

3. FIXED ASSETS

Fixed assets are stated at their original cost of acquisition/revaluation, including taxes, freight, and other incidental expenses related to acquisition and installation of the concerned assets. Internally fabricated assets are valued at cost. Interest on borrowed funds attributable to acquisition/construction of fixed assets & related preoperative expenses up to the date of commencement of commercial production, are capitalized.

4. CAPITAL WORK IN PROGRESS

Project under commissioning and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

5. DEPRECIATION

Depreciation on fixed assets is provided on straight-line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 and on the re-valued cost wherever applicable. The difference of the deprecation between the revalued cost and historical cost has been charged to Profit & Loss Account. Saplings and Flower Beds have been written off at the rate of 1/7* & 1/10* of the cost respectively.

6. GOVERNMENT GRANTS

Grants in the nature of promoter's contribution and in which repayment is ordinarily not expected are treated as shareholders funds.

Grants in relation to specific fixed assets are deducted from the cost of the fixed assets.

7. INVENTORIES

The basis of valuation of inventories is as under:

(i) Raw material, semi finished goods and finished goods are valued at lower of cost or net realizable value. The raw material costs are based on weighted average method

(ii) Stores and spares are valued at cost and scrap is valued at net realisable value

(iii) In compliance with AS-2 prescribed by ICAI, the company has included excise duty on stock of finished goods, however this has no impact on profit of the company for the year under review..

8. FOREIGN CURRENCY TRANSACTION

Transaction in foreign currency is recorded at the exchange rate prevailing at the time of transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the profit and loss account.

In the case of assets and liabilities standing at the year end date, the balances are stated at the rates prevailing at the year end and the exchange difference there on are adjusted in the profit and loss account.

In respect of forward contracts taken by the Company, the difference between the forward rate and the exchange rate at the end of transaction is recognised as expenses over the life of the forward contract.

9. INTANGIBLE ASSETS

The R&D expenditure on revenue account has been capitalised under the head fixed assets and are being amortised over a period of 10 years.

Intangible assets recognised in the financial statements are amortised over the useful life of the asset.

10. REVENUE RECOGNITION

Items of income & expenditure are recognised on accrual basis. Dividend is accounted for when the right to receive payment is established.

11. RETIREMENT BENEFITS

i) Company's Contribution to Provident Fund and Family Pension fund are charged to Profit & Loss Account.

ii) Contribution to Provident Fund is accounted for on accrual basis with corresponding contribution to recognised Fund.

iii) Gratuity liability is defined benefit or obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. The liability so provided is unfunded.

iv) Leave encashment is provided for on the basis of an actuarial valuation made at the end of each financial year.

12. MISCELLANEOUS EXPENDITURE

Miscellaneous expenditure not written off is amortised over a period of five years.

13. TAXES ON INCOME

Income Tax for the year comprises of current tax and deferred tax. Current tax provision has been determined on the basis of relief and deductions available under the Income Tax Act, 1961. Deferred tax is recognised for all timing differences, subject to the consideration of prudence, applying the tax rates that have been substantively enacted by the Balance Sheet date.

14. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for intended uses. All other borrowing costs are charged to revenue.

15. DEFERRED REVENUE EXPENDITURE

Expenses incurred by Company under various head for Brand building/launching of new projects have been charged to deferred expenditure. These expenditure are written off over a period of 10 year as the benefit of theses expenditure will be available to the company during this period.

16. EARNING PER SHARE

The earning considered in ascertaining the Company's EPS comprises as the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

17. COMMON EXPENSES

Common expenses relating to Head Office and other Administrative offices have been allocated to various profit centres on a reasonable basis.

18. INVESTMENTS

Long term investments are stated at cost. Provision is made for diminution in the value of long term investments, if such decline is other than temporary. Current Investment is carried at cost or fair value, which ever is lower.

19. OPERATING LEASES

Assets taken on lease under which all risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating leases are recognized as expenses.

20. IMPAIRMENT OF ASSETS

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine

a) the provision for impairment loss, if any, required or

b) the reversal, if any, required of impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of assets exceeds its recoverable amount.

21. ROUNDING OFF

Amounts have been rounded off to the nearest Rupee.

22. PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

1. ACCOUNTING CONVENTION

The Financial statements are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards issued by "The Institute of Chartered Accountants of India" and relevant presentational requirements of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of Financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known / materialised.

3. FIXED ASSETS

Fixed assets are stated at their original cost of acquisition/revaluation, including taxes, freight, and other incidental expenses related to acquisition and installation of the concerned assets. Internally fabricated assets are valued at cost. Interest on borrowed funds attributable to acquisition/construction of fixed assets & related preoperative expenses up to the date of commencement of commercial production, net of any income arisen there from, are capitalized.

4. CAPITAL WORK IN PROGRESS

Project under commissioning and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

5. DEPRECIATION

Depreciation on fixed assets is provided on straight-line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 and on the revalued cost wherever applicable. The difference of the deprecation between the revalued cost and historical cost has been charged to Profit & Loss Account. Saplings and Flower Beds have been written off at the rate of 1 /7th & 1/10th of the cost respectively.

6. INVENTORIES

The basis of valuation of inventories is as under:

(i) Raw material, semi finished goods and finished goods are valued at lower of cost or net realizable value.

The raw material costs are based on weighted average method (ii) Stores and spares are valued at cost and scrap is valued at net realisable value (iii) In compliance with AS-2 prescribed by ICAI, the company has included excise duty on stock of finished goods, however this has no impact on profit of the company for the year under review..

7. FOREIGN CURRENCY TRANSACTION

Transaction in foreign currency is recorded at the exchange rate prevailing at the time of transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the profit and loss account except in the case of fixed assets, where the exchange difference is adjusted to the carrying amount of the related fixed asset.

In the case of current assets and current liabilities (not relating to fixed assets), the differences on conversion at the rates prevailing at the year end is adjusted in the profit and loss account. In the case of liabilities incurred for acquisition of fixed assets, the loss or gain on conversion, at the rates prevailing at the year end is adjusted to the carrying amount of the related fixed assets.

In respect of forward contracts taken by the Company, the difference between the forward rate and the exchange rate at the end of transaction is recognised as expenses over the life of the forward contract.

8. R&D EXPENDITURE

The R&D expenditure on revenue accounts and capital accounts had been capitalised under the head Fixed Assets and are being amortised over a period of 10 years.

9. REVENUE RECOGNITION

Items of income & expenditure are recognised on accrual basis. Dividend is accounted for when the right to receive payment is established.

10. RETIREMENTBENEFITS

i) Companys Contribution to Provident Fund and Family Pension fund are charged to Profit & Loss Account.

ii) Contribution to Provident Fund is accounted for on accrual basis with corresponding contribution to recognised Fund.

iii) Provision for Bonus, Earned leave and Gratuity is made on accrual basis.

11. MISCELLANEOUS EXPENDITURE

Miscellaneous expenditure not written off is amortised over a period of five years.

12 TAXES ON INCOME

Income Tax for the year comprises of current tax and deferred tax. Current tax provision has been determined on the basis of relief and deductions available under the Income Tax Act, 1961. Deferred tax is recognised for all timing differences, subject to the consideration of prudence, applying the tax rates that have been substantively enacted by the Balance Sheet date. $

13. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for intended uses. All other borrowing costs are charged to revenue.

14. DEFERRED REVENUE EXPENDITURE

Expenses incurred by Company under various head for Brand building /launching of new projects have been charged to deferred expenditure. These expenditure are written off over a period of 5 year as the benefit of theses expenditure will be available to the company during this period.

15. EARNING PER SHARE

The earning considered in ascertaining the Companys EPS comprises as the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

16. COMMON EXPENSES

Common expenses relating to Head Office and other divisions have been allocated on reasonable basis.

17. INVESTMENTS

Long term investments are stated at cost. Provision is made for diminution in the value of long term investments, if such decline is other than temporary. Current Investment is carried at cost or fair value , which ever is lower.

18. OPERATING LEASES

Assets taken on lease under which all risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating leases are recognized as expenses.

19. IMPAIRMENT OF ASSETS

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine

a) the provision for impairment loss, if any, required or

b) the reversal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of assets exceeds its recoverable amount.

20. ROUNDING OFF

Amounts have been rounded off to the nearest Rupee.

21. PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

 
Subscribe now to get personal finance updates in your inbox!