Jun 30, 2011
1. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:
The Financial statements have been prepared under the historical cost
convention, on an accrual basis of accounting, to comply in all the
material respects with the notified accounting standards by the
Companies Accounting Standard Rules, 2006 and the relevant provisions
of the Companies Act,1956. The Accounting principles discussed more
fully below are consistent with those used in the previous year.
2. REVENUE RECOGNITION:
Sales of products are recognized when risk and rewards of ownership of
the products are passed on to the customers, which is generally on
dispatch of goods. Exports sale are recognized on the basis of
Shipping/ Airway Bills. Sales stated are excluding sales tax and net of
returns.
3. USE OF ESTIMATES:
The presentation of financial statement in conformity with the
generally accepted principles requires estimates and assumptions to be
made, that affect the reported amount of assets and liabilities as on
the date of financial statements and the reported amount of revenues
and expenses during the period. Difference between the actual result
and estimates are recognized in the period in which the results are
known/materialized.
4. FIXED ASSETS:
a) Fixed Assets are stated at their historical cost, adjusted by
revaluation of certain land & building less provision for impairment
losses, if any, depreciation, amortization and adjustments on account
of foreign exchange fluctuations in respect of changes in rupee
liability of foreign currency loans used for acquisition of fixed
assets.
b) Borrowing cost eligible for Capitalization, incurred in respect of
acquisition/construction of the qualifying assets, till the asset is
substantially ready for use, are capitalized as part of the cost of
that assets.
c) Pre operative, Trial run and incidental expenses relating to the
projects are carried forward to be capitalized and apportioned to
various assets on commissioning of the Project.
5. CAPITAL WORK IN PROGRESS:
Advance paid towards acquisition of fixed assets which have not been
installed or put to use, and the cost of assets not put to use, before
the year end are disclosed under Capital Work in Progress .
6. DEPRECIATION:
Depreciation on fixed assets is provided using the written down value
method and as per rate provided in the XIV schedule of the Companies
Act, 1956, based on the useful life as estimated by the management.
Depreciation is charged on the pro-rata basis for assets purchased/sold
during the year.
7. INVENTORIES:
Items of inventories are valued on the basis given below:
Raw Materials and Packing Materials: At Cost net of CENVAT/VAT computed
on first in-first out method.
Work in process and Finished Goods: At Cost including material cost net
of CENVAT, labour cost and all overheads other than selling and
distribution overheads for work-in- process and the same or realizable
value, whichever is lower in case of finish goods except physician
samples which are valued at cost as computed above.
Stores and Spares: Stores and spares parts are valued at purchase cost.
8. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency assets and liabilities are translated at exchange rate
prevailing on the last working day of the accounting year. Gain or loss
on the restatement of foreign currency transaction or on cancellation
of forward contract if any, is reflected in the Profit and Loss account
except gain or loss relating to acquisition of fixed assets which is
adjusted to the carrying cost of fixed assets.
Transaction in Foreign Currency is recorded in the Books of Account in
Indian Rupee at the rate of exchange prevailing on the date of
transaction.
9. INVESTMENTS:
Long Term Investments are Valued at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary, in the opinion of the Management.
10. BORROWING COST:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of times to get ready for it's intend use. All other
borrowing costs are charged to revenue.
11. EARNINGS PER SHARE:
The Company reports basic and diluted earnings per share in accordance
with Accounting Standard 20 on Earnings per Share. Basic earning per
share is computed by dividing the net Profit or Loss for the period by
the weighted average number of Equity shares outstanding during the
period. Diluted earnings per share is computed by dividing the net
profit or loss for the period by the weighted average number of Equity
shares during the period as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
This includes employee stock options granted and outstanding.
12. TAXATION:
Current Tax: Current Tax is calculated as per the provisions of the
Income Ta x Act, 1961
Deferred Tax: Deferred tax is recognized on timing differences being
the differences between taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more
subsequent period. Deferred tax assets are subject to the consideration
of prudence are recognized and carried forward only to the extent that
there is reasonably certainly that sufficient taxable income will be
available against which such deferred tax assets can be realized. The
tax effect is calculated on the accumulated timing difference at the
year end based on the tax rates and law enacted or substantially
enacted on balance sheet date.
MAT Credit: MAT Credit entitlement is recognized only when the company
actually avails MAT credit based on its annual tax computation.
13. PROVISIONS AND CONTINGENT LIABILITIES:
Provisions are recognized for present obligations, of uncertain timing
or amount, arising as a result of past event where reliable estimate
can be made and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligations. Where it
is not probable that an outflow of resources embodying economic benefit
will be required or the amount cannot be estimated reliably, the
obligation is disclosed as a contingent liability unless the
probability of outflow of resources embodying economic benefit is
remote.
Possible obligations, whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain future events,
are so also disclosed as contingent liabilities unless the probability
of outflow of resources embodying economic benefit is remote.
14. EMPLOYEE BENEFITS:
a. Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service, are classified as short term employee 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 employee renders the related service.
b. Long Term Employee Benefits
- Retirement Benefit in the form of provident fund is a defined
contribution scheme and contributions are charged to the Profit and
Loss account for the year/period when the contributions are due.
- Leave Encashment is recognized on the basis of payment at the end of
the year.
15. CENVAT and Service Tax Credit:
CENVAT and Service Tax credit utilized during the year is accounted in
excise duty and unutilized CENVAT/ Service Ta x balance at the year end
is considered as advance excise duty.
16. MISCELLANEOUS EXPENDUTURE:
- Expenditure on formation of company being in the nature of
preliminary expenses is amortized over the period of ten years.
- The expenditure incurred in respect of IPO have been treated as
deferred revenue expenditure and amortized over a period of 10 years.
Jun 30, 2010
1. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:
The financial statements have been prepared under the historical cost
convention on accrual basis in accordance with the generally accepted
accounting principles as adopted consistently by the Company and the
provisions of the Companies Act 1956.
2. REVENUE RECOGNITION:
Items of Income and Expenditure are recognized on accrual basis except
duty draw back, insurance claims and Dividend which are being accounted
for on cash basis, as it is not possible to ascertain the exact amount
with reasonable accuracy.
3. FIXED ASSETS:
Fixed Assets are recorded at cost of acquisition or construction less
CENVAT credit avail. Interest during the period of acquisition or
construction is added to the cost of the assets. Revalued assets are
recorded at revalued amounts less Depreciation.
4. EMPLOYEE STOCK OPTION SCHEME:
Employee Stock Options are evaluated and accounted on intrinsic value
method as per the accounting treatment prescribed by Guidance Note on
ÃAccounting for Employee Share-based paymentsà issued by ICAI read with
SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme)
Guidelines 1999 issued by SEBI. The excess of market value, if any, of
the stock options as on the date of grant over the exercise price of
the options is recognised as deferred employee compensation and is
charged to the profit and loss account on vesting basis over the
vesting period of the options. The un-amortized portion of the deferred
employee compensation is reduced from Employee Stock Option
Outstanding, which is shown under Reserves and Surplus
5. CAPITAL WORK IN PROGRESS:
Advance paid towards acquisition of fixed assets which have not been
installed or put to use, and the cost of assets not put to use, before
the year end are disclosed under Capital Work in Progress
6. DEPRECIATION:
Depreciation on fixed assets is provided using the written down value
method and as per rate provided in the XIV schedule of the Companies
Act, 1956,based on the useful life as estimated by the management.
Depreciation is charged on a pro-rata basis for assets purchased/sold
during the year.
7. INVENTORIES:
Raw material/Packing material : At cost net off CENVAT computed on
first in first out method.
Finished Goods & Work In Process : At cost including material cost net
of CENVAT, Labour cost and all overheads other than selling and
distribution overheads for work in process and the same or realizable
value, which ever is lower in case of finished goods.
8. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are recorded at the rate of exchange
prevailing to the date of transaction. At the year end all monetary
assets and liabilities denominated in foreign currency are restated at
the year end exchange rates.
The premium or discount on forward contracts are amortised over the
period of the contract. Exchange differences on arising on actual
payment/realisation and year end reinstatement referred to the above
are adjusted:
i In. respect of fixed assets acquired outside the country to the
related cost of fixed assets and
ii All other cases in the profit and loss account.
9. RETIREMENT BENEFITS:
The retirement benefits such as contribution of provident fund, leave
encashment, etc. are accounted for on accrual basis and charge to
profit and loss account as per applicable rules/statutes.
10. MISCELLANEOUS EXPENDUTURE:
Expenditure on formation of company being in the nature of preliminary
expenses is amortized over the period of five years.
The expenditure incurred in respect of IPO have been treated as
deferred revenue expenditure and amortized over a period of 10 years.
11. CASH FLOW STATEMENTS:
The Cash flow statement is prepared by the indirect method set out in
Accounting Standard 3 on cash flow statements and present cash flows by
operating, investing & financing activities of the company.
12. TAXATION:
Provision for current tax is made on the basis of Tax liability
computed in accordance with the relevant tax rates and tax laws.
Provision for deferred tax is made for timing differences arising
between the taxable incomes and accounting income computed using the
tax rates and the laws enacted as on the date of balance sheet.
13. IMPAIRMENT OF FIXED ASSETS:
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
companyÃs fixed assets. If any indication exists, an assets recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds recoverable amount.
Jun 30, 2009
1. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:
The financial statements have been prepared under the historical cost
convention on accrual basis in accordance with the generally accepted
accounting principles as adopted consistently by the Company and the
provisions of the Companies Act 1956.
2. REVENUE RECOGNITION:
Items of Income and Expenditure are recognized on accrual basis except
duty draw back, insurance claims and Dividend which are being accounted
for on cash basis, as it is not possible to ascertain the exact amount
with reasonable accuracy.
3. FIXED ASSETS:
Fixed Assets are recorded at cost of acquisition or construction less
CENVAT credit avail. Interest during the period of acquisition or
construction is added to the cost of the assets. Revalued assets are
recorded at revalued amounts less Depreciation.
4. CAPITAL WORK IN PROGRESS:
Advance paid towards acquisition of fixed assets which have not been
installed or put to use, and the cost of assets not put to use, before
the year end are disclosed under Capital Work in Progress
5. DEPRECIATION:
Depreciation on fixed assets is provided using the written down value
method and as per rate provided in the IV schedule of the Companies
Act, 1956,based on the useful life as estimated by the management.
Depreciation is charged on a pro-rata basis for assets purchased/sold
during the year.
6. INVENTORIES:
Raw material/Packing material : At cost net off CENVAT computed on
first in first out method.
Finished Goods & Work In Process : At cost including material cost net
of CENVAT, Labour cost and all overheads other than selling and
distribution overheads for work in process and the same or realizable
value, which ever is lower in case of finished goods.
7. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are recorded at the rate of exchange
prevailing to the date of transaction. At the year end all monetary
assets and liabilities denominated in foreign currency are restated at
the year end exchange rates. The premium or discount on forward
contracts are amortised over the period of the contract. Exchange
differences on arising on actual payment/realisation and year end
reinstatement referred to the above are adjusted:
i In. respect of fixed assets acquired outside the country to the
related cost of fixed assets and
ii All other cases in the profit and loss account.
8. RETIREMENT BENEFITS :
The retirement benefits such as contribution of provident fund, leave
encashment, etc. are accounted for on accrual basis and charge to
profit and loss account as per applicable rules/statutes.
9. MISCELLANEOUS EXPENDUTURE :.
i. Expenditure on formation of company being in the nature of
preliminary expenses is amortized over the period of ten years.
ii. The expenditure incurred in respect of IPO have been treated as
deferred revenue expenditure and amortized over a period of 5 years.
10. CASH FLOW STATEMENTS
The Cash flow statement is prepared by the indirect method set out in
Accounting Standard 3 on cash flow statements and present cash flows by
operating, investing & financing activities of the company.
11. TAXATION :
Provision for current tax is made on the basis of Tax liability
computed in accordance with the relevant tax rates and tax laws.
Provision for deferred tax is made for timing differences arising
between the taxable income and accounting income computed using the tax
rates and the laws enacted as on the date of balance sheet.
12. FRINGE BENEFIT TAX:
Fringe benefit tax (FBT) payable under the provisions of section 115WC
of the Income tax Act, 1961 is in accordance with the guidance note on
accounting for Fringe Benefit Tax issued by the ICAI regarded as an
additional income tax and considered in determination of the
profits/losses for the year.
13. IMPAIRMENT OF FIXED ASSETS :
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
companys fixed assets. If any indication exist, an assets recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an assets exceeds recoverable amount.