Mar 31, 2015
A. 1 REVENUE RECOGNITION
i. Revenues/ Incomes and Costs/ Expenditures are generally accounted
on accrual basis as they are earned or incurred.
ii. Sales are recognized on the date of dispatch of materials to
customers. Services are recognized on completion. Sales are net of
Excise Duty and Value Added Tax.
iii. Revenue recognition in respect of price escalation is carried out
in the year of settlement of claims / bills.
iv. Dividend income from investment is accounted, when the right to
receive is established.
v. Duty draw back and other benefits receivable on eligible export of
goods manufactured are shown under "Other Income" as per rates
applicable thereon.
2 FIXED ASSETS
i. Fixed Assets other than those which have been revalued are stated
at cost which includes all direct expenses including attributable
borrowing cost incurred up to the date of installation of assets less
accumulated depreciation (other than "Leasehold Land" where no
depreciation is charged).
ii. Revalued assets are shown at the revalued cost less accumulated
depreciation as per the Accounting policy no. 3(ii).
iii. Discarded fixed assets are de-capitalized and included under
inventories at 5% of value of assets being estimated realizable value.
iv. The cost of fixed assets not ready for use before such date are
disclosed under capital work-in-progress.
3 DEPRECIATION
i. Depreciation on Fixed Assets (Other than revalued assets) is
provided on Straight Line Method in accordance with the rates specified
under Schedule II to the Companies Act, 2013.
ii. Depreciation on revalued assets is calculated on their respective
revalued amount on Straight Line Method over the balance useful life as
determined by the valuers or the balance remaining useful life as per
Schedule - II whichever is lower.
iii. Leasehold land is not amortized since the period of lease is 99
years.
iv. Items costing Rs. 5000/- or less are fully depreciated in the year
of purchase.
v. Depreciation on additions to assets and on sale/ discard of assets
is calculated pro-rata from the date of such additions or up to the
date of such sale/ discard, as the case may be.
vi. The charge over and above the depreciation calculated on the
original cost of the revalued assets is transferred from Fixed Asset
Revaluation Reserve to General Reserve and shown as a deduction from
Revaluation Reserve.
4 BORROWING COST:
Borrowing costs relating to the acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete.
A qualifying asset is one that necessarily takes substantial period of
time to get ready for its intended use.
All other borrowing costs are charged to revenue.
5 INVESTMENT
Long Term investments are carried at cost less provision, if any, for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and market value.
6 INVENTORIES
i. Stock of Raw Materials,Components and stores are valued at lower of
cost and net realizable value . Cost of raw material is determined on
weighted average method, excluding CENVAT paid on purchases. Scrap is
valued at estimated realisable value.
ii. Stock of Materials-in-Process and Finished Goods are valued at
lower of cost and net realizable value.Cost excludes CENVAT paid on
inputs but includes excise duty payable on completion of manufacture of
the Finished Goods.
7 FOREIGN CURRENCY TRANSACTION
i. Receipts and Payments are recorded at actual rates prevailing on
the date of transaction.
ii. Balances in the form of Current Assets and Current Liabilities
(including for procurement of Fixed Assets) in foreign currency,
outstanding at the close of the year, are converted (in Indian
Currency) at the appropriate rates of exchange prevailing on the date
of Balance Sheet and the resultant loss or gain is taken to exchange
variation account which gets charged in or credited to the Profit and
Loss Account.
iii. Forward Exchange Contracts not intended for trading or speculation
purpose : The premium or discount arising at the inception of forward
exchange contracts is amortized as expenses or income over the life of
the respective contracts. Exchange differences on such contracts are
recognized in the statement of profit and loss on the period in which
the exchange rates change. Any profit or loss arising on cancellation
or renewal of forward exchange contract is recognized as income or
expense for the year.
8 RESEARCH AND DEVELOPMENT
Revenue expenditure including overheads on Research and Developments
are charged off as an expense through the natural heads of account in
the year in which incurred. Expenditure which results in the creation
of capital assets is taken to Intangible assets and amortisation is
provided on such assets as applicable.
9 EMPLOYEE BENEFITS
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
service are classified as short term employees benefits. Benefits such
as salaries, wages, short term compensated absences, etc and the
expected cost of bonus, ex-gratia are recognized in the period in which
the employees render the related service.
(ii) Defined Contribution Plans.
Provident Fund, Superannuation Fund and Employees State Insurance
Scheme are defined contribution plans. The contribution paid/ payable
under the schemes is recognized during the period in which the
employees renders the related services.
(iii) Defined Benefits Plans
Gratuity on account of services gratuity is covered under
Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of
India. Annual premium paid for the scheme is charged to Statement of
Profit and Loss .
Provision for leave encashment benefit is done on the basis of
actuarial valuation.
10 LIQUIDATED DAMAGES
Liquidated damages are accounted only when finally agreed upon and
settled with the parties.
11 TAXATION :
Income Tax provision comprises Current tax and Deferred Tax charge or
credit. The Deferred Tax assets and Deferred Tax Liabilities are
calculated by applying tax rate and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred tax assets
arising from timing differences are recognized to the extent there is a
reasonable certainty that the assets can be realized in future.
12 IMPAIRMENT OF ASSETS
The carrying amounts of assets are reviewed at each balance sheet date
to determine if there is any indication of impairment based on
external/internal factors. An impairment loss is recognised wherever
the carrying amount of an asset exceeds its recoverable amount which
represents the greater of the net selling price and "Value in use" of
the assets. The estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and risks specific to the
asset.
In case of impairment, if any depreciation is provided on the revised
carrying amount of the assets over their remaining useful life.
A previous recognised impairment loss is increased or reversed
depending on changes in circumstances. However the carrying value after
reversal is not increased beyond the carrying value that would have
prevailed by charging usual depreciation if there was no impairment.
13 PROVISIONS, CONTINGENT LIABILITIES & CONTIGENT ASSETS.
(a) The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount
of the obligation.
(b) Liabilities contingent upon happening of future event are disclosed
by way of a note in the accounts. Claims against the Company where a
demand has been raised by any authority or disputed in arbitration are
recognized as Contingent Liability, if contested.
(c) Contingent assets are not recognized.
(d) Provision is made regarding disputed statutory levies only when the
appeal is decided by the Appellate Tribunal.
Mar 31, 2014
A. 1 REVENUE RECOGNITION
i. Revenues/ Incomes and Costs/ Expenditures are generally accounted
on accrual basis as they are earned or
incurred. ii. Sales are recognized on the date of dispatch of
materials to customers. Services are recognized on completion. iii.
Revenue recognition in respect of price escalation is carried out in
the year of settlement of claims / bills. iv. Dividend income from
investment is accounted, when the right to receive is established. v.
Duty draw back and other benefits receivable on eligible export of
goods manufactured are shown under
"Other Income" as per rates applicable thereon.
2 FIXED ASSETS
i. Fixed Assets other than those which have been revalued are stated
at cost which includes all direct expenses including attributable
borrowing cost incurred up to the date of installation of assets less
accumulated depreciation (other than "Leasehold Land" where no
depreciation is charged). ii. Revalued assets are shown at the
revalued cost less accumulated depreciation as per the Accounting
policy no. 3(ii).
iii. Discarded fixed assets are de-capitalized and included under
inventories at 5% of value of assets being estimated realizable value.
iv. The cost of fixed assets not ready for use before such date are
disclosed under capital work-in-progress.
3 DEPRECIATION
i. Depreciation on Fixed Assets (Other than revalued assets) is
provided on Straight Line Method in accordance with the rates specified
under Schedule XIV to the Companies Act, 1956.
ii. Depreciation on revalued assets is calculated on their respective
revalued amount on Straight Line Method over the balance useful life as
determined by the valuers or the balance remaining useful life as per
Schedule - XIV whichever is lower.
iii. Leasehold land is not amortized since the period of lease is 99
years.
iv. Items costing Rs. 5000/- or less are fully depreciated in the year
of purchase.
v. Depreciation on additions to assets and on sale/ discard of assets
is calculated pro-rata from the date of such additions or up to the
date of such sale/ discard, as the case may be.
vi. The charge over and above the depreciation calculated on the
original cost of the revalued assets is transferred from Fixed Asset
Revaluation Reserve to Profit and Loss Account and shown as a deduction
from Revaluation Reserve.
4 BORROWING COST:
Borrowing costs relating to the acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.
5 INVESTMENT
Long Term investments are carried at cost less provision, if any, for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and market value.
6 INVENTORIES
i. Stock of Raw Materials,Components and stores are valued at lower of
cost and net realizable value . Cost of raw material is determined on
weighted average method, excluding CENVAT paid on purchases. Scrap is
valued at estimated realisable value. ii. Stock of
Materials-in-Process and Finished Goods are valued at lower of cost and
net realizable value.Cost excludes CENVAT paid on inputs but includes
excise duty payable on completion of manufacture of the Finished Goods.
7 FOREIGN CURRENCY TRANSACTION
i. Receipts and Payments are recorded at actual rates prevailing on
the date of transaction.
ii. Balances in the form of Current Assets and Current Liabilities
(including for procurement of Fixed Assets) in foreign currency,
outstanding at the close of the year, are converted (in Indian
Currency) at the appropriate rates of exchange prevailing on the date
of Balance Sheet and the resultant loss or gain is taken to exchange
variation account which gets charged in or credited to the Profit and
Loss Account.
iii. Forward Exchange Contracts not intended for trading or speculation
purpose : The premium or discount arising at the inception of forward
exchange contracts is amortized as expenses or income over the life of
the respective contracts. Exchange differences on such contracts are
recognized in the statement of profit and loss on the period in which
the exchange rates change. Any profit or loss arising on cancellation
or renewal of forward exchange contract is recognized as income or
expense for the year.
8 RESEARCH AND DEVELOPMENT
Revenue expenditure including overheads on Research and Developments
are charged off as an expense through the natural heads of account in
the year in which incurred. Expenditure which results in the creation
of capital assets is taken to fixed assets and depreciation is provided
on such assets as applicable.
9 EMPLOYEE BENEFITS
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
service are classified as short term employees benefits. Benefits such
as salaries, wages, short term compensated absences, etc and the
expected cost of bonus, ex-gratia are recognized in the period in which
the employees rendered the related service.
(ii) Defined Contribution Plans.
Provident Fund, Superannuation Fund and Employees State Insurance
Scheme are defined contribution plans. The contribution paid/ payable
under the schemes is recognized during the period in which the
employees renders the related services.
(iii) Defined Benefits Plans
Gratuity on account of services gratuity is covered under
Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of
India. Annual premium paid for the scheme is charged to Profit and Loss
Account. Provision for leave encashment benefit is done on the basis
of actuarial valuation.
10 LIQUIDATED DAMAGES
Liquidated damages are accounted only when finally agreed upon and
settled with the parties.
11 TAXATION :
Income Tax provision comprises Current tax and Deferred Tax charge or
credit. The Deferred Tax assets and Deferred Tax Liabilities are
calculated by applying tax rate and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred tax assets
arising from timing differences are recognized to the extent there is a
reasonable certainty that the assets can be realized in future.
12 IMPAIRMENT OF ASSETS
The carrying amounts of assets are reviewed at each balance sheet date
to determine if there is any indication of impairment based on
external/internal factors. An impairment loss is recognised wherever
the carrying amount of an asset exceeds its recoverable amount which
represents the greater of the net selling price and "Value in use" of
the assets. The estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and risks specific to the
asset.
In case of impairment, if any depreciation is provided on the revised
carrying amount of the assets over their remaining useful life.
A previous recognised impairment loss is increased or reversed
depending on changes in circumstances. However the carrying value after
reversal is not increased beyond the carrying value that would have
prevailed by charging usual depreciation if there was no impairment.
13 PROVISIONS, CONTINGENT LIABILITIES & CONTIGENT ASSETS.
(a) The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount
of the obligation.
(b) Liabilities contingent upon happening of future event are disclosed
by way of a note in the accounts. Claims against the Company where a
demand has been raised by any authority or disputed in arbitration are
recognized as Contingent Liability, if contested.
(c) Contingent assets are not recognized.
(d) Provision is made regarding disputed statutory levies only when the
appeal is decided by the Appellate Tribunal.
Mar 31, 2013
1 REVENUE RECOGNITION
i. Revenues/ Incomes and Costs/ Expenditures are generally accounted
on accrual basis as they are earned or incurred.
ii. Sales are recognized on the date of dispatch of materials to
customers. Services are recognized on completion. iii. Revenue
recognition in respect of price escalation is carried out in the year
of settlement of claims / bills. iv. Dividend income from investment
is accounted, when the right to receive is established. v. Duty draw
back and other benefits receivable on eligible export of goods
manufactured are shown under "Other Income" as per rates applicable
thereon.
2 FIXED ASSETS
i. Fixed Assets other than those which have been revalued are stated
at cost which includes all direct expenses including attributable
borrowing cost incurred up to the date of installation of assets less
accumulated depreciation (other than "Leasehold Land" where no
depreciation is charged). ii. Revalued assets are shown at the
revalued cost less accumulated depreciation as per the Accounting
policy no. 3(ii).
iii. Discarded fixed assets are de-capitalized and included under
inventories at 5% of value of assets being estimated realizable value.
iv. The cost of fixed assets not ready for use before such date are
disclosed under capital work-in-progress.
3 DEPRECIATION
i. Depreciation on Fixed Assets (Other than revalued assets) is
rovided on Straight Line Method in accordance
with the rates specified under Schedule XIV to the Companies Act, 1956.
ii. Depreciation on revalued assets is calculated on their respective
revalued amount on Straight Line Method over the balance useful life as
determined by the valuers or the balance remaining useful life as per
Schedule  XIV whichever is lower.
iii. Leasehold land is not amortized since the period of lease is 99
years.
iv. Items costing Rs. 5000/- or less are fully depreciated in the year
of purchase.
v. Depreciation on additions to assets and on sale/ discard of assets
is calculated pro-rata from the date of such additions or up to the
date of such sale/ discard, as the case may be.
vi. The charge over and above the depreciation calculated on the
original cost of the revalued assets is transferred from Fixed Asset
Revaluation Reserve to Profit and Loss Account and shown as a deduction
from Revaluation Reserve.
4 BORROWING COST :
Borrowing costs relating to the acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.
5 INVESTMENT
Long Term investments are carried at cost less provision, if any, for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and market value.
6 INVENTORIES
i. Stock of Raw Materials, Components and stores are valued at lower
of cost and net realizable value . Cost of raw material is determined
on weighted average method, excluding CENVAT paid on purchases. Scrap
is valued at estimated realisable value. ii. Stock of
Materials-in-Process and Finished Goods are valued at lower of cost and
net realizable value. Cost excludes CENVAT paid on inputs but includes
excise duty payable on completion of manufacture of the
Finished Goods.
7 FOREIGN CURRENCY TRANSACTION
i. Receipts and Payments are recorded at actual rates prevailing on
the date of transaction.
ii. Balances in the form of Current Assets and Current Liabilities
(including for procurement of Fixed Assets) in
foreign currency, outstanding at the close of the year, are converted
(in Indian Currency) at the appropriate rates of exchange prevailing on
the date of Balance Sheet and the resultant loss or gain is taken to
exchange variation account which gets charged in or credited to the
Profit and Loss Account. iii. Forward Exchange Contracts not intended
for trading or speculation purpose : The premium or discount arising at
the inception of forward exchange contracts is amortized as expenses or
income over the life of the respective contracts. Exchange differences
on such contracts are recognized in the statement of profit and loss on
the period in which the exchange rates change. Any profit or loss
arising on cancellation or renewal of forward exchange contract is
recognized as income or expense for the year.
8 RESEARCH AND DEVELOPMENT
Revenue expenditure including overheads on Research and Developments
are charged off as an expense through the natural heads of account in
the year in which incurred. Expenditure which results in the creation
of capital assets is taken to fixed assets and depreciation is provided
on such assets as applicable.
9 EMPLOYEE BENEFITS
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
service are classified as short term employees benefits. Benefits such
as salaries, wages, short term compensated absences, etc and the
expected cost of bonus, ex-gratia are recognized in the period in which
the employees rendered the related service.
(ii) Defined Contribution Plans.
Provident Fund, Superannuation Fund and Employees State Insurance
Scheme are defined contribution plans. The contribution paid/ payable
under the schemes is recognized during the period in which the
employees renders the related services.
(iii) Defined Benefits Plans
Gratuity on account of services gratuity is covered under
Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of
India. Annual premium paid for the scheme is charged to Profit and Loss
Account. Provision for leave encashment benefit is done on the basis
of actuarial valuation.
10 LIQUIDATED DAMAGES
Liquidated damages are accounted only when finally agreed upon and
settled with the parties.
11 TAXATION :
Income Tax provision comprises Current tax and Deferred Tax charge or
credit. The Deferred Tax assets and Deferred Tax Liabilities are
calculated by applying tax rate and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred tax assets
arising from timing differences are recognized to the extent there is a
reasonable certainty that the assets can be realized in future.
12 IMPAIRMENT OF ASSETS
(a) The Company has one product which is manufactured in and sold from
its factories located at Bhubaneswar and Vadodara and accordingly
entire Company is treated as Cash Generation Unit for carrying out
Impairment Test.
(b) Estimated future net inflows are made on the basis of estimated
growth in volumes considering the expected growth of power industry
based on current trends and the rise in input and other costs on past
experiences.
13 PROVISIONS, CONTINGENT LIABILITIES & CONTIGENT ASSETS.
(a) The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount
of the obligation.
(b) Liabilities contingent upon happening of future event are disclosed
by way of a note in the accounts. Claims against the Company where a
demand has been raised by any authority or disputed in arbitration are
recognized as Contingent Liability, if contested.
(c) Contingent assets are not recognized.
(d) Provision is made regarding disputed statutory levies only when the
appeal is decided by the Appellate Tribunal.
Mar 31, 2012
A. 1 REVENUE RECOGNITION
i. Revenues/ Incomes and Costs/ Expenditures are generally accounted on
accrual basis as they are earned or incurred.
ii. Sales are recognized on the date of dispatch of materials to
customers. Services are recognized on completion.
iii. Revenue recognition in respect of price escalation is carried out
in the year of settlement of claims / bills.
iv. Dividend income from investment is accounted, when the right to
receive is established.
v. Duty draw back and other benefits receivable on eligible export of
goods manufactured are shown under "Other Income" as per rates
applicable thereon.
2 FIXED ASSETS
i. Fixed Assets other than those which have been revalued are stated at
cost which includes all direct expenses including attributable
borrowing cost incurred up to the date of installation of assets less
accumulated depreciation (other than "Leasehold Land" where no
depreciation is charged).
ii. Revalued assets are shown at the revalued cost less accumulated
depreciation as per the Accounting policy no. 3(ii).
iii. Discarded fixed assets are de-capitalized and included under
inventories at 5% of value of assets being estimated realizable value.
iv. The cost of fixed assets not ready for use before such date are
disclosed under capital work-in-progress.
3. DEPRECIATION
i. Depreciation on Fixed Assets (Other than revalued assets) is
provided on Straight Line Method in accordance with the rates specified
under Schedule XIV to the Companies Act, 1956.
ii. Depreciation on revalued assets is calculated on their respective
revalued amount on Straight Line Method over the balance useful life as
determined by the valuers or the balance remaining useful life as per
Schedule - XIV whichever is lower.
iii. Leasehold land is not amortized since the period of lease is 99
years.
iv. Items costing Rs. 5000/- or less are fully depreciated in the year
of purchase.
v. Depreciation on additions to assets and on sale/ discard of assets
is calculated pro-rata from the date of such additions or up to the
date of such sale/ discard, as the case may be.
vi. The charge over and above the depreciation calculated on the
original cost of the revalued assets is transferred from Fixed Asset
Revaluation Reserve to Profit and Loss Account and shown as a deduction
from Revaluation Reserve.
4 BORROWING COST:
Borrowing costs relating to the acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete.
A qualifying asset is one that necessarily takes substantial period of
time to get ready for its intended use.
All other borrowing costs are charged to revenue.
5 INVESTMENT
Long Term investments are carried at cost less provision, if any, for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and market value.
6 INVENTORIES
i. Stock of Raw Materials,Components and stores are valued at lower of
cost and net realizable value . Cost of raw material is determined on
weighted average method, excluding CENVAT paid on purchases. Scrap is
valued at estimated realisable value.
ii. Stock of Materials-in-Process and Finished Goods are valued at
lower of cost and net realizable value.Cost excludes CENVAT paid on
inputs but includes excise duty payable on completion of manufacture of
the Finished Goods.
7 FOREIGN CURRENCY TRANSACTION
i. Receipts and Payments are recorded at actual rates prevailing on the
date of transaction.
ii. Balances in the form of Current Assets and Current Liabilities
(including for procurement of Fixed Assets) in foreign currency,
outstanding at the close of the year, are converted (in Indian
Currency) at the appropriate rates of exchange prevailing on the date
of Balance Sheet and the resultant loss or gain is taken to exchange
variation account which gets charged in or credited to the Profit and
Loss Account.
iii. Forward Exchange Contracts not intended for trading or speculation
purpose : The premium or discount arising at the inception of forward
exchange contracts is amortized as expenses or income over the life of
the respective contracts. Exchange differences on such contracts are
recognized in the statement of profit and loss on the period in which
the exchange rates change. Any profit or loss arising on cancellation
or renewal of forward exchange contract is recognized as income or
expense for the year.
8 RESEARCH AND DEVELOPMENT
Revenue expenditure including overheads on Research and Developments
are charged off as an expense through the natural heads of account in
the year in which incurred. Expenditure which results in the creation
of capital assets is taken to fixed assets and depreciation is provided
on such assets as applicable.
9 EMPLOYEE BENEFITS
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
service are classified as short term employees benefits. Benefits such
as salaries, wages, short term compensated absences, etc and the
expected cost of bonus, ex-gratia are recognized in the period in which
the employees rendered the related service.
(ii) Defined Contribution Plans.
Provident Fund, Superannuation Fund and Employees State Insurance
Scheme are defined contribution plans. The contribution paid/ payable
under the schemes is recognized during the period in which the
employees renders the related services.
(iii) Defined Benefits Plans
Gratuity on account of services gratuity is covered under
Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of
India. Annual premium paid for the scheme is charged to Profit and Loss
Account. Provision for leave encashment benefit is done on the basis
of actuarial valuation.
10 LIQUIDATED DAMAGES
Liquidated damages are accounted only when finally agreed upon and
settled with the parties.
11 TAXATION:
Income Tax provision comprises Current tax and Deferred Tax charge or
credit. The Deferred Tax assets and Deferred Tax Liabilities are
calculated by applying tax rate and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred tax assets
arising from timing differences are recognized to the extent there is a
reasonable certainty that the assets can be realized in future.
12 IMPAIRMENT OF ASSETS
(a) The Company has one product which is manufactured in and sold from
its factories located at Bhubaneswar and Vadodara and accordingly
entire Company is treated as Cash Generation Unit for carrying out
Impairment Test.
(b) Estimated future net inflows are made on the basis of estimated
growth in volumes considering the expected growth of power industry
based on current trends and the rise in input and other costs on past
experiences.
13 PROVISIONS, CONTINGENT LIABILITIES & CONTIGENT ASSETS.
(a) The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount
of the obligation.
(b) Liabilities contingent upon happening of future event are disclosed
by way of a note in the accounts. Claims against the Company where a
demand has been raised by any authority or disputed in arbitration are
recognized as Contingent Liability, if contested.
(c) Contingent assets are not recognized.
(d) Provision is made regarding disputed statutory levies only when the
appeal is decided by the Appellate Tribunal.
Mar 31, 2011
A. REVENUE RECOGNITION
(i) Revenues/ Incomes and Costs/ Expenditures are generally accounted
on accrual basis as they are earned or incurred.
(ii) Sales are recognized on the date of dispatch of materials to
customers. Services are recognized on completion.
(iii)Revenue recognition in respect of price escalation is carried
out in the year of settlement of claims / bills.
(iv) Dividend income from investment is accounted, when the right
to receive is established.
(v)Duty draw back and other benefits receivable on eligible export
of goods manufactured are shown under "Other Income" as per rates
applicable thereon.
B. FIXED ASSETS
(i) Fixed Assets other than those which have been revalued are stated
at cost which includes all direct expenses including attributable
borrowing cost incurred up to the date of installation of assets
less accumulateddepreciation (other than "Leasehold Land" where no
depreciation is charged).
(ii) Revalued assets are shown at the revalued cost less
accumulated depreciation as per the Accounting policy
no. C (ii).
(iii) Discarded fixed assets are de-capitalized and
included under inventories at 5% of value of assets being
estimated realizable value.
(iv) Advance paid towards the acquisition of fixed assets outstanding
as of each date balance sheet date and the cost of fixed assets not
ready for use before such date are disclosed under capital work-in-
progress.
C. DEPRECIATION
(i) Depreciation on Fixed Assets (Other than revalued assets) is
provided on Straight Line Method in accordance
with the rates specified under Schedule XIV to the Companies Act, 1956.
(ii) Depreciation on revalued assets is calculated on their respective
revalued amount on Straight Line Method over
the balance useful life as determined by the valuers or the balance
remaining useful life as per Schedule - XIV whichever is lower.
(iii) Leasehold land is not amortized since the period of lease is
99 years.
(iv) Items costing Rs. 5000/- or less are fully depreciated in the year
of purchase.
(v) Depreciation on additions to assets and on sale/ discard of assets
is calculated pro-rata from the date of such additions or up to the
date of such sale/ discard, as the case may be.
(vi) The charge over and above the depreciation calculated on the
original cost of the revalued assets is transferred
from Fixed Asset Revaluation Reserve to Profit and Loss Account and
shown as a deduction from Revaluation Reserve.
D. BORROWING COST :
Borrowing costs relating to the acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.
E. INVESTMENT
Long Term investments are carried at cost less provision, if any, for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and market value.
F. INVENTORIES
(i) Stock of Raw Materials,Components and stores are valued at lower of
cost and net realizable value . Cost is arrived at on FIFO Basis,
excluding CENVAT paid on purchases.
(ii)Stock of Materials-in-Process and Finished Goods are valued at
lower of cost and net realizable value.Cost excludes CENVAT paid on
inputs but includes excise duty payable on completion of manufacture
of the Finished Goods.
G. FOREIGN CURRENCY TRANSACTION
(i) Receipts and Payments are recorded at actual rates prevailing on
the date of transaction.
(ii) Balances in the form of Current Assets and Current Liabilities
(including for procurement of Fixed Assets) in foreign currency,
outstanding at the close of the year, are converted (in Indian
Currency) at the appropriate rates of exchange prevailing on the date
of Balance Sheet and the resultant loss or gain is taken to exchange
variation account which gets charged in or credited to the Profit and
Loss Account.
(iii) Forward Exchange Contracts not intended for trading or
speculation purpose : The premium or discount arising at the inception
of forward exchange contracts is amortized as expenses or income over
the life of the respective contracts. Exchange differences on such
contracts are recognized in the statement of profit and loss on the
period in which the exchange rates change. Any profit or loss arising
on cancellation or renewal of forward exchange contract is recognized
as income or expense for the year.
H. RESEARCH AND DEVELOPMENT
Revenue expenditure including overheads on Research and Developments
are charged off as an expense through the natural heads of account in
the year in which incurred. Expenditure which results in the creation
of capital assets is taken to fixed assets and depreciation is provided
on such assets as applicable.
1. EMPLOYEE BENEFITS
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
service are classified as short term employees benefits. Benefits
such as salaries, wages, short term compensated absences, etc and the
expected cost of bonus, ex-gratia are recognized in the period in which
the employees rendered the related service.
(ii) Defined Contribution Plans.Provident Fund, Superannuation Fund and
Employees State Insurance Scheme are defined contribution plans.
The contribution paid/ payable under the schemes is recognized during
the period in which the employees renders the related services.
(iii) Defined Benefits Plans
a) Gratuity on account of services gratuity is covered under
Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of
India. Annual premium paid for the scheme is charged to Profit and Loss
Account.
b) Provision for leave encashment benefit is done on the basis of
actuarial valuation.
J. LIQUIDATED DAMAGES
Liquidated damages are accounted only when finally agreed upon and
settled with the parties.
K. TAXATION :
Income Tax provision comprises Current tax and Deferred Tax charge or
credit. The Deferred Tax assets and Deferred Tax Liabilities are
calculated by applying tax rate and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred tax assets
arising from timing differences are recognized to the extent there is a
reasonable certainty that the assets can be realized in future.
L. IMPAIRMENT OF ASSETS
(a) The Company has one product which is manufactured in and sold from
its factories located at Bhubaneswar and Vadodara and accordingly
entire Company is treated as Cash Generation Unit for carrying out
Impairment Test.
(b) Estimated future net inflows are made on the basis of estimated
growth in volumes considering the expected growth of power industry
based on current trends and the rise in input and other costs on past
experiences.
M. PROVISIONS, CONTINGENT LIABILITIES & CONTIGENT ASSETS.
(a) The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount
of the obligation.
(b) Liabilities contingent upon happening of future event are disclosed
by way of a note in the accounts. Claims against the Company where a
demand has been raised by any authority or disputed in arbitration are
recognized as Contingent Liability, if contested.
(c) Contingent assets are not recognized.
(d) Provision is made regarding disputed statutory levies only when the
appeal is decided by the Appellate Tribunal.
Mar 31, 2010
A. REVENUE RECOGNITION
(i) Revenues/ Incomes and Costs/ Expenditures are generally accounted
on accrual basis as they are earned or incurred.
(ii) Sales are recognized on the date of dispatch of materials to
customers. Services are recognized on completion.
(iii) Sales figure disclosed in the Profit and Loss Account is
inclusive of excise duty.
(iv) Revenue recognition in respect of price escalation is carried out
in the year of settlement of claims / bills.
(v) Dividend income from investment is accounted, when the right to
receive is established.
(vi) Duty draw back and other benefits receivable on eligible export
of goods manufactured are shown under "Other Income" as per rates
applicable thereon.
B. FIXED ASSETS
(i) Fixed Assets other than those which have been revalued are stated
at cost which includes all direct expenses including attributable
borrowing cost incurred up to the date of installation of assets less
accumulated depreciation (other than "Leasehold Land" where no
depreciation is charged).
(ii) Revalued assets are shown at the revalued cost less accumulated
depreciation as per the Accounting policy no. C (ii).
(iii) Discarded fixed assets are de-capitalized and included under
inventories at 5% of value of assets being estimated realizable value.
(iv) Advance paid towards the acquisition of fixed assets outstanding
as of each date balance sheet date and the cost of fixed assets not
ready for use before such date are disclosed under capital
work-in-progress.
C. DEPRECIATION
(i) Depreciation on Fixed Assets (Other than revalued assets) is
provided on Straight Line Method in accordance with the rates
specified under Schedule XIV to the Companies Act, 1956.
(ii) Depreciation on revalued assets is calculated on their respective
revalued amount on Straight Line Method over the balance
useful life as determined by the velures or the balance remaining
useful life as per Schedule - XIV whichever is lower.
(iii) Leasehold land is not amortized since the period of lease
is 99 years.
(iv) Items costing Rs. 5000/- or less are fully depreciated in the
year of purchase.
(v) Depreciation on additions to assets and on sale/ discard
of assets is calculated pro-rata from the date of such additions or
up to the date of such sale/ discard, as the case may be.
(vi) The charge over and above the depreciation calculated on the
original cost of the revalued assets is transferred from Fixed Asset
Revaluation Reserve to Profit and Loss Account and shown as a deduction
from Revaluation Reserve.
D. BORROWING COST:
Borrowing costs relating to the acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.
E. INVESTMENT
Long Term investments are carried at cost less provision, if any, for
permanent diminution in value of such investments. Current investments
are carried at lower of cost and market value.
F. INVENTORIES
(i) Stock of Raw Materials, Components and stores are valued at lower
of cost and net realizable value . Cost is arrived at on FIFO Basis,
excluding CENVAT paid on purchases.
(ii) Stock of Materials-in-Process and Finished Goods are valued at
lower of cost and net realizable value. Cost excludes CENVAT paid on
inputs but includes excise duty payable on completion of manufacture
of the Finished Goods.
G. FOREIGN CURRENCY TRANSACTION
(i) Receipts and Payments are recorded at actual rates prevailing on
the date of transaction. (ii) Balances in the form of Current Assets
and Current Liabilities (including for procurement of Fixed Assets) in
foreign currency, outstanding at the close of the year, are converted
(in Indian Currency) at the appropriate rates of exchange prevailing on
the date of Balance Sheet and the resultant loss or gain is taken to
exchange variation account which gets charged in or credited to the
Profit and Loss Account.
H. RESEARCH AND DEVELOPMENT
Revenue expenditure including overheads on Research and Developments
are charged off as an expense through the natural heads of account in
the year in which incurred. Expenditure which results in the creation
of capital assets is taken to fixed assets and depreciation is provided
on such assets as applicable.
I. EMPLOYEE BENEFITS
(i) Short Term Employee Benefits :
All employee benefits payable wholly within twelve months of rendering
service are classified as short term employees benefits. Benefits
such as salaries, wages, short term compensated absences, etc. and the
expected cost of bonus, ex-gratia are recognized in the period in which
the employees rendered the related service.
(ii) Defined Contribution Plans.
Provident Fund, Superannuation Fund and Employees State Insurance
Scheme are defined contribution plans.
The contribution paid / payable under the schemes is recognized during
the period in which the employees renders the related services.
(iii) Defined Benefits Plans
a) Gratuity on account of services gratuity is covered under
Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of
India. Annual premium paid for the scheme is charged to Profit and Loss
Account.
b) Provision for leave encashment benefit is done on the basis of
actuarial valuation.
J. LIQUIDATED DAMAGES
Liquidated damages are accounted only when finally agreed upon and
settled with the parties.
K. TAXATION:
Income Tax provision comprises Current tax and Deferred Tax charge or
credit. The Deferred Tax assets and Deferred Tax Liabilities are
calculated by applying tax rate and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred tax assets
arising from timing differences are recognized to the extent there is a
reasonable certainty that the assets can be realized in future.
L. IMPAIRMENT OF ASSETS
(a) The Company has one product which is manufactured in and sold from
its factories located at Bhubaneswar and Vadodara and accordingly
entire Company is treated as Cash Generation Unit for carrying out
Impairment Test.
(b) Estimated future net inflows are made on the basis of estimated
growth in volumes considering the expected growth of power industry
based on current trends and the rise in input and other costs on past
experiences.
M. PROVISIONS, CONTINGENT LIABILITIES & CONTIGENT ASSETS.
(a) The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount
of the obligation.
(b) Liabilities contingent upon happening of future event are disclosed
by way of a note in the accounts. Claims against the Company where a
demand has been raised by any authority or disputed in arbitration are
recognized as Contingent Liability, if contested.
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