Mar 31, 2016
a. Basis of Preparation
These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting (to the extent notified) and guidelines issued by the Securities and Exchange Standards prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act Board of India (SEBI). Accounting policies have been consistently applied.
b. Use of Estimates
The preparation of the financial statements in conformity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
c. Revenue Recognition
Sales are stated inclusive of rebate and trade discount and excluding Central Sales Tax, State Value Added Tax. With regard to sale of products, income is reported when practically all risks and rights connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.
Export Benefits are accounted on accrual basis.
d. Fixed Assets
(a) Fixed assets are stated at cost (net off of Cenvat & VAT), less accumulated depreciation (other than land and goodwill, where no depreciation is charged).
(b) Capital Work in Progress is stated at cost.
(c) Intangible assets are recorded at the consideration paid for acquisition.
e. Depreciation
i) Depreciation on fixed assets (other than land & goodwill, where no depreciation is provided) has been provided on Straight Line method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
ii) Depreciation on additions to Assets during the year is being provided on pro-rata basis with reference to month of acquisition/installation as required by Schedule II of the Companies Act, 2013.
iii) Intangible assets are amortized over a period of 8 years
iv) No depreciation has been provided on the assets where the accumulated depreciation has exceeded 95% of its original cost
v) No depreciation has been provided in respect of Capital Work In Progress
vi) No depreciation has been provided on self generated intangible assets.
f. Excise Duty
Excise duty is accounted on the bases of both, payment made in respect of goods cleared and also provision made for goods lying in bonded warehouses. Excise duties in respect of Finished Goods lying in stock are shown separately as an item of Other Expenses.
g. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The Cash flows from operating, investing and financing activities of the Group are segregated.
Cash and Cash equivalents presented in the Cash Flow Statement consists of cash on hand and demand deposits with banks.
h. Foreign Currency Transactions
Transactions in the foreign currency which are covered by forward contracts are accounted for at the contracted rate; the difference between the forward rate and the exchange rate at the date of transaction is recognized in the statement of profit & loss over the life of the contract. Foreign currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of Profit and Loss. Non-monetary assets and nonmonetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non- monetary liabilities denominated in foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.
i. Investments
Current investment if any are carried at the lower of cost or quoted/fair value. Long Term Investments are stated at cost of acquisition. Provision for diminution in the value of long term investment is made only if such a decline is other than temporary
j. Valuation of Inventories
i) Raw materials are valued at lower of cost or net realizable value.
ii) Work in progress has been valued at cost of materials and labour charges together with relevant factory overheads.
iii) Finished Goods are valued at lower of cost or net realizable value.
iv) Stores & Fuel are valued at lower of cost or net realizable value. k. Employee Benefits:
(i) Short Term
Short Term employee benefits are recognized as an expense at the undiscounted amount expected to be paid over the period of services rendered by the employees to the company.
(ii) Long Term
The Company has both defined contribution and defined benefit plans. These plans are financed by the Company in the case of defined contribution plans.
(iii) Defined Contribution Plans
These are plans in which the Company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to Employees Provident Fund. The Company''s payments to the defined contribution plans are reported as expenses during the period in which the employees perform the services that the payment covers.
(iv) Defined Benefit Plans
Expenses for defined benefit gratuity payment plans are calculated as at the balance sheet date by independent actuaries in the manner that distributes expenses over the employees working life. These commitments are valued at the present value of the expected future payments, with consideration for calculated future salary increases, using a discounted rate corresponding to the interest rate estimated by the actuary having regard to the interest rate on Government Bonds with a remaining term i.e. almost equivalent to the average balance working period of employees.
(v) Other Employee Benefits
Compensated absences which accrue to employees and which can be carried to future periods but are expected to be encased or availed in twelve months immediately following the year end are reported as expenses during the year in which the employees perform the services that the benefit covers and the liabilities are reported at the undiscounted amount of the benefits after deducting amounts already paid.
l. Earnings per Share:
Basic Earnings per share is calculated by dividing the net profit after tax for the year attributable to Equity Shareholders of the Company by the weighted average number of Equity Shares in issue during the year. Diluted earnings per Share is calculated by dividing net profit attributable to equity Shareholders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.
m. Taxation
Income tax expense comprises of current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets arising mainly on account of brought forward business losses, capital losses and unabsorbed depreciation under tax laws, are recognized, only if there is a virtual certainly of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.
n. Impairment
The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset other than goodwill is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss recognized. The carrying amount of an asset other than goodwill is increased to its revised recoverable amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment losses been recognized for the asset in prior years.
o. Provisions & Contingencies
A provision is recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding long term benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes to the Financial Statements. A contingent asset is neither recognized nor disclosed.
p. Borrowing Cost
Borrowing costs are recognized in the period to which they relate, regardless of how the funds have been utilized, except where it relates to the financing of construction or development of assets requiring a substantial period of time to prepare for their intended future use. Interest on borrowings if any is capitalized up to the date when the asset is ready for its intended use. The amount of interest capitalized for the period is determined by applying the interest rate applicable to appropriate borrowings.
q. Research & Development Expenditure
Research & Development Expenditure is charged to revenue. Capital expenditure on research and development is reported as fixed assets under the relevant head. Depreciation on research and development fixed assets are not classified as research and development expenses and instead included under depreciation expenses.
r. Proposed Dividend & Corporate Dividend Tax
Dividend proposed by the Board of Directors (including dividend of preference shares) along with corporate dividend tax are provided in the books of accounts. Approval in the General Meeting is pending for the same.
s. Current and Non Current classification
All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of activities and time between the activities performed and their subsequent realization in cash or cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities
Mar 31, 2013
A. Method of Accounting
The Financial Statements are prepared as per historical cost convention
and in accordance with the Generally Accepted Accounting Principles in
India, the provisions of the Companies Act 1956 , and the applicable
Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006. All Income and Expenditures having material
bearing on the Financial Statements are recognized on accrual basis.
b. Use of Estimates
The preparation of the financial statements in conformity with GAPP
requires the Management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and reported amounts of income and expenses during the
period. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in
estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
c. Revenue Recognition
Sales are stated inclusive of rebate and trade discount and excluding
Central Sales Tax, State Value Added Tax. With regard to sale of
products, income is reported when practically all risks and rights
connected with the ownership have been transferred to the buyers. This
usually occurs upon dispatch, after the price has been determined.
Export Benefits are accounted on accrual basis.
d. Fixed Assets
Tangible Fixed Assets acquired by the Company are reported at
acquisition value, with deductions for accumulated depreciation [other
than freehold land''where no depreciation is charged] and impairmen t
losses, if any. The acquisition value includes the purchase price
(excluding refundable taxes), and expenses directly attributable to
assets to bring it to the factory and in the working condition for its
intended use. Where the construction or development of any such asset
requiring a substantial period of time to set up for its intended use,
is funded by borrowings if any, the corresponding borrowing cost are
capitalized up to the date when the asset is ready for its intended
use.
Capital work in progress is stated at Cost.
Pre-operativeexpenditure &trial run expenditure on theProject is
capitalized amongst the various heads of fixed assets on the
commencement of commercial production of respective project.
e. Depreciation
i) Depreciation on Fixed Assets is provided on Straight Line Basis in
accordance with the provisions of Section 205(2)(b) of the Companies
Act, 1956 in the manner and at the rates specified under Schedule XIV
to the said Act.
ii) Depreciation on additions to Assets during the year is being
provided on pro-rata basis with reference to month of
acquisition/installation as required by Schedule XIV to the Companies
Act, 1956.
iii) Depreciation on assets sold, scrapped or demolished during the
year is provided at their respective rates up to the date on which such
assets are sold, scrapped or demolished, as required by Schedule XIV of
the Companies Act, 1956.
iv) No depreciation has been provided in respect of Capital Work in
Progress.
f. Excise Duty
Excise Duties recovered are included in the sale of products. Excise
duties in respect of Finished Goods lying in stock are shown separately
as an item of Manufacturing & Other Expenses and included in the
valuation of finished goods.
g. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows.. The Cash flows from operating,
investing and financing activities of the Group are segregated.
Cash and Cash equivalents presented in the Cash Flow Statement consists
of cash on hand and demand deposits with banks.
h. Foreign Currency Transactions
Transactions in the foreign currency which are covered by forward
contracts are accounted for at the contracted rate; the difference
between the forward rate and the exchange rate at the date of
transaction is recognized in the profit & loss account over the life of
the contract. Foreign currency denominated monetary assets and
liabilities are translated into the relevant functional currency at
exchange rates in effect at the Balance Sheet date. The gains or losses
resulting from such translations are included in the Statement of
Profit and Loss. Non- monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair value are
translated at the exchange rate prevalent at the date when the fair
value was determined. Non-monetary assets and non-monetary liabilities
denominated in foreign currency and measured at historical cost are
translated at the exchange rate prevalent at the date of transaction.
Revenue, expense and cash-flow items denominated in foreign currencies
are translated into the relevant functional currencies using the
exchange rate in effect on the date of the transaction. Transaction
gains or losses realized upon settlement of foreign currency
transactions are included in determining net profit for the period in
which the transaction is settled.
i. Investments
Investments are classified as Long Term & Current Investments. Long
Term Investments are valued at cost less provision for diminution other
than temporary, in value, if any. Current Investments are valued at
cost or fair value whichever is lower.
j. Valuation of Inventories
i) Raw materials are valued at cost or net realizable value whichever
is lower.
ii) Work in progress has been valued at cost of materials and labour
charges together with relevant factory overheads.
iii) Finished Goods are valued at cost or net realizable value
whichever is lower. (Inclusive Excise Duty).
iv) Stores & Fuel are valued at cost or net realizable value whichever
is lower.
k. Employee Benefit: (i) Short Term
Short Term employee benefits are recognized as an expense at the
undiscounted amount expected to be paid over the period of services
rendered by the employees to the company.
(ii) Long Term
The Company has both defined contribution and defined benefit plans.
These plans are financed by the Company in the case of defined
contribution plans.
(iii) Defined Contribution Plans
These are plans in which the Company pays pre-defined amounts to
separate funds and does not have any legal or informal obligation to
pay additional sums. These comprise of contributions to Employees
Provident Fund. The Companys payments to the defined contribution plans
are reported as expenses during the period in which the employees
perform the services that the payment covers.
(iv) Defined Benefit Plans
Expenses for defined benefit gratuity payment plans are calculated as
at the balance sheet date by independent actuaries in the manner that
distributes expenses over the employees working life. These commitments
are valued at the present value of the expected future payments, with
consideration for calculated future salary increases, using a
discounted rate corresponding to the interest rate estimated by the
actuary having regard to the interest rate on Government Bonds with a
remaining term i.e. almost equivalent to the average balance working
period of employees.
(v) Other Employee Benefit
Compensated absences which accrue to employees and which can be carried
to future periods but are expected to be encashed or availed in twelve
months immediately following the year end are reported as expenses
during the year in which the employees perform the services that the
benefit covers and the liabilities are reported at the undiscounted
amount of the benefits after deducting amounts already paid.
l. Earning per Share :
Basic earning per share is calculated by dividing the net profit after
tax for the year attributable to Equity Shareholders of the Company by
the weighted average number of Equity Shares in issue during the year.
Diluted earning per Share is calculated by dividing net profit
attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding
during the year.
m. Taxation
Income -tax expense comprises of current tax, and deferred tax charge
or credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
arising mainly on account of brought forward business losses, capital
losses and unabsorbed depreciation under tax laws, are recognized, only
if there is a virtual certainly of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized only to the extent there is a reasonable
certainty of its realization. At each balance sheet date, the carrying
amount of deferred tax assets is reviewed to reassure realizati on.
n. Impairment
The Management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. The recoverable amount is higher
of the assets net selling price an d value in use, which means the
present value of future cash flows expected to arise from the
continuing use of the asset and its eventual disposal. An impairment
loss for an asset other than goodwill is reversed if, and only if, the
reversal can be related objectively to an event significant occurring
after the impairment loss recognized. The carrying amount of an asset
other than goodwill is increased to its revised recoverable amount that
would have been determined (net of any accumulated amortization or
depreciation) had no impairment losses been recognized for the asset in
prior years.
o. Provisions & Contingencies
A provision is recognized when the Company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(excluding long term benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognized but are disclosed in the
notes to the Financial Statements. A contingent asset is neither
recognized nor disclosed.
p. Borrowing Cost
Borrowing costs are recognized in the period to which they relate,
regardless of how the funds have been utilized, except where it relates
to the financing of construction or development of assets requiring a
substantial period of time to prepare for their intended future use.
Interest on borrowings if any is capitalized up to the date when the
asset is ready for its intended use. The amount of interest capitalized
for the period is determined by applying the interest rate applicable
to appropriate borrowings.
q. Research & Development Expenditure
Research & Development Expenditure is charged to revenue. Capital
expenditure on research and development is reported as fixed assets
under the relevant head. Depreciation on research and development fixed
assets are not classified as research and development expenses and
instead included under depreciation expenses.
r. Proposed Dividend & Corporate Dividend Tax
Dividend proposed by the Board of Directors along with corporate
dividend tax is provided in the books of accounts. Approval in the
General Meeting is pending for the same.
Mar 31, 2012
A. Method of Accounting
The Financial Statements are prepared as per historical cost convention
and in accordance with the Generally Accepted Accounting Principles in
India, the provisions of the Companies Act 1956, and the applicable
Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006. All Income and Expenditures having material
bearing on the Financial Statements are recognized on accrual basis.
b. Use of Estimates
The preparation of the financial statements in conformity with GAPP
requires the Management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and reported amounts of income and expenses during the
period. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in
estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
c. Revenue Recognition
Sales are stated inclusive of rebate and trade discount and excluding
Central Sales Tax, State Value Added Tax. With regard to sale of
products, income is reported when practically all risks and rights
connected with the ownership have been transferred to the buyers. This
usually occurs upon dispatch, after the price has been determined.
Export Benefits are accounted on accrual basis.
d. Fixed Assets
Tangible Fixed Assets acquired by the Company are reported at
acquisition value, with deductions for accumulated depreciation [other
than "freehold land" where no depreciation is charged] and
impairment losses, if any. The acquisition value includes the purchase
price (excluding refundable taxes), and expenses directly attributable
to assets to bring it to the factory and in the working condition for
its intended use. Where the construction or development of any such
asset requiring a substantial period of time to set up for its intended
use, is funded by borrowings if any, the corresponding borrowing cost
are capitalized up to the date when the asset is ready for its intended
use.
Capital work in progress is stated at Cost.
Pre-operative expenditure & trial run expenditure on the Project is
capitalized amongst the various heads of fixed assets on the
commencement of commercial production of respective project.
e. Depreciation
i) Depreciation on Fixed Assets is provided on Straight Line Basis in
accordance with the provisions of Section 205(2)(b) of the Companies
Act, 1956 in the manner and at the rates specified under Schedule XIV
to the said Act.
ii) Depreciation on additions to Assets during the year is being
provided on pro-rata basis with reference to month of
acquisition/installation as required by Schedule XIV to the Companies
Act, 1956.
iii) Depreciation on assets sold, scrapped or demolished during the
year is provided at their respective rates up to the date on which such
assets are sold, scrapped or demolished, as required by Schedule XIV of
the Companies Act, 1956.
iv) No depreciation has been provided in respect of Capital Work in
Progress.
f. Excise Duty
Excise Duties recovered are included in the sale of products. Excise
duties in respect of Finished Goods lying in stock are shown separately
as an item of Manufacturing & Other Expenses and included in the
valuation of finished goods.
g. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows.. The Cash flows from operating,
investing and financing activities of the Group are segregated.
Cash and Cash equivalents presented in the Cash Flow Statement consists
of cash on hand and demand deposits with banks.
h. Foreign Currency Transactions
Transactions in the foreign currency which are covered by forward
contracts are accounted for at the contracted rate; the difference
between the forward rate and the exchange rate at the date of
transaction is recognized in the profit & loss account over the life of
the contract. Foreign currency denominated monetary assets and
liabilities are translated into the relevant functional currency at
exchange rates in effect at the Balance Sheet date. The gains or losses
resulting from such translations are included in the Statement of
Profit and Loss. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair value are
translated at the exchange rate prevalent at the date when the fair
value was determined. Non- monetary assets and non-monetary liabilities
denominated in foreign currency and measured at historical cost are
translated at the exchange rate prevalent at the date of transaction.
Revenue, expense and cash- flow items denominated in foreign currencies
are translated into the relevant functional currencies using the
exchange rate in effect on the date of the transaction. Transaction
gains or losses realized upon settlement of foreign currency
transactions are included in determining net profit for the period in
which the transaction is settled.
i. Investments
Investments are classified as Long Term & Current Investments. Long
Term Investments are valued at cost less provision for diminution other
than temporary, in value, if any. Current Investments are valued at
cost or fair value whichever is lower.
j. Valuation of Inventories
i) Raw materials are valued at cost or net realizable value whichever
is lower.
ii) Work in progress has been valued at cost of materials and labour
charges together with relevant factory overheads.
iii) Finished Goods are valued at cost or net realizable value
whichever is lower. (Inclusive Excise Duty).
iv) Stores & Fuel are valued at cost or net realizable value whichever
is lower.
k. Employee Benefit:
(i) Short Term
Short Term employee benefits are recognized as an expense at the
undiscounted amount expected to be paid over the period of services
rendered by the employees to the company.
(ii) Long Term
The Company has both defined contribution and defined benefit plans.
These plans are financed by the Company in the case of defined
contribution plans.
(iii) Defined Contribution Plans
These are plans in which the Company pays pre-defined amounts to
separate funds and does not have any legal or informal obligation to
pay additional sums. These comprise of contributions to Employees
Provident Fund. The Company's payments to the defined contribution
plans are reported as expenses during the period in which the employees
perform the services that the payment covers.
(iv) Defined Benefit Plans
Expenses for defined benefit gratuity payment plans are calculated as
at the balance sheet date by independent actuaries in the manner that
distributes expenses over the employees working life. These commitments
are valued at the present value of the expected future payments, with
consideration for calculated future salary increases, using a
discounted rate corresponding to the interest rate estimated by the
actuary having regard to the interest rate on Government Bonds with a
remaining term i.e. almost equivalent to the average balance working
period of employees.
(v) Other Employee Benefit
Compensated absences which accrue to employees and which can be carried
to future periods but are expected to be encashed or availed in twelve
months immediately following the year end are reported as expenses
during the year in which the employees perform the services that the
benefit covers and the liabilities are reported at the undiscounted
amount of the benefits after deducting amounts already paid.
l. Earning per Share :
Basic earning per share is calculated by dividing the net profit after
tax for the year attributable to Equity Shareholders of the Company by
the weighted average number of Equity Shares in issue during the year.
Diluted earning per Share is calculated by dividing net profit
attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding
during the year.
m. Taxation
Income -tax expense comprises of current tax, and deferred tax charge
or credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
arising mainly on account of brought forward business losses, capital
losses and unabsorbed depreciation undertax laws, are recognized, only
if there is a virtual certainly of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized only to the extent there is a reasonable
certainty of its realization. At each balance sheet date, the carrying
amount of deferred tax assets is reviewed to reassure realization.
n. Impairment
The Management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. The recoverable amount is higher
of the asset's net selling price and value in use, which means the
present value of future cash flows expected to arise from the
continuing use of the asset and its eventual disposal. An impairment
loss for an asset other than goodwill is reversed if, and only if, the
reversal can be related objectively to an event occurring after the
impairment loss recognized. The carrying amount of an asset other than
goodwill is increased to its revised recoverable amount that would have
been determined (net of any accumulated amortization or depreciation)
had no impairment losses been recognized for the asset in prior years.
o. Provisions & Contingencies
A provision is recognized when the Company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(excluding long term benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognized but are disclosed in the
notes to the Financial Statements. A contingent asset is neither
recognized nor disclosed.
p. Borrowing Cost
Borrowing costs are recognized in the period to which they relate,
regardless of how the funds have been utilized, except where it relates
to the financing of construction or development of assets requiring a
substantial period of time to prepare for their intended future use.
Interest on borrowings if any is capitalized up to the date when the
asset is ready for its intended use. The amount of interest capitalized
for the period is determined by applying the interest rate applicable
to appropriate borrowings
q. Research & Development Expenditure
Research & Development Expenditure is charged to revenue. Capital
expenditure on research and development is reported as fixed assets
under the relevant head. Depreciation on research and development fixed
assets are not classified as research and development expenses and
instead included under depreciation expenses.
r. Leases
Lease Transactions entered into on or after April 1, 2001.
(1) Assets acquired under lease where the Company has substantially all
the risks and rewards incidental to ownership are classified as finance
leases. Such assets are capitalized at the inception of the Lease at
the lower of the fair value or the present value of minimum lease
payments and a liability is created for an equivalent amount. Each
lease rental paid is allocated between the liability and the interest
cost, so as to obtain a constant periodic rate of interest on the
outstanding liability for each period.
(2) Assets acquired on lease where a significant portion of risk and
rewards incidental to ownership is retained by the leaser are
classified as operating lease. Lease rental are charged to the profit
and loss account on accrual basis.
s. Proposed Dividend & Corporate Dividend Tax
Dividend proposed by the Board of Directors along with corporate
dividend tax is provided in the books of accounts. Approval in the
General Meeting is pending for the same.
Mar 31, 2011
A. Method of Accounting
The Financial Statements are prepared as per historical cost convention
and in accordance with the Generally Accepted Accounting Principles in
India, the provisions of the Companies Act, 1956, and the applicable
Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006. All Income and Expenditures having material
bearing on the Financial Statements are recognized on accrual basis.
b. Use of Estimates
The presentation of the Financial Statements in conformity with the
Generally Accepted Accounting policies requires, the management to make
estimates and assumptions that affect the reported amount of Assets and
Liabilities, Revenues and Expenses and disclosure of contingent
liabilities. Such estimation and assumptions are based on management's
evaluation of relevant facts and circumstances as on date of Financial
Statements. Difference between the actual results and estimates are
recognized in the period in which the results are known / materialized.
c. Revenue Recognition
Sales are stated inclusive of rebate and trade discount and excluding
Central Sales Tax, State Value Added Tax. With regard to sale of
products, income is reported when practically all risks and rights
connected with the ownership have been transferred to the buyers. This
usually occurs upon dispatch, after the price has been determined.
Export Benefits are accounted on accrual basis.
d. Fixed Assets
Tangible Fixed Assets acquired by the Company are reported at
acquisition value, with deductions for accumulated depreciation [other
than "freehold land" where no depreciation is charged] and impairment
losses, if any. The acquisition value includes the purchase price
(excluding refundable taxes), and expenses directly attributable to
assets to bring it to the factory and in the working condition for its
intended use. Where the construction or development of any such asset
requiring a substantial period of time to set up for its intended use,
is funded by borrowings if any, the corresponding borrowing cost are
capitalized up to the date when the asset is ready for its intended
use.
Capital work in progress is stated at Cost.
Pre-operative expenditure & trial run expenditure on the Project is
capitalized amongst the various heads of fixed assets on the
commencement of commercial production of respective project.
e. Depreciation
i) Depreciation on Fixed Assets is provided on Straight Line Basis in
accordance with the provisions of Section 205(2)(b) of the Companies
Act, 1956 in the manner and at the rates specified in Schedule XIV to
the said Act.
ii) Depreciation on additions to Assets during the year is being
provided on pro-rata basis with reference to month of
acquisition/installation as required by Schedule XIV to the Companies
Act, 1956.
iii) Depreciation on assets sold, scrapped or demolished during the
year is provided at their respective rates up to the date on which such
assets are sold, scrapped or demolished, as required by Schedule XIV of
the Companies Act, 1956.
iv) No depreciation has been provided in respect of Capital Work in
Progress.
f. Excise Duty
Excise Duties recovered are included in the sale of products. Excise
duties in respect of Finished Goods lying in stock are shown separately
as an item of Other Manufacturing Expenses and included in the
valuation of finished goods.
g. Cash Flow Statement
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash on hand and demand deposits with banks
h. Foreign Currency Transactions
Transactions in the foreign currency which are covered by forward
contracts are accounted for at the contracted rate; the difference
between the forward rate and the exchange rate at the date of
transaction is recognized in the profit & loss account over the life of
the contract. Transactions in the foreign currency other than those
covered by forward contract rates are translated to the reporting
currency based on the exchange rate on the date of the transaction.
Exchange differences arising on settlement thereof during the year are
recognized as income or expenses in the Profit and Loss Account.
Cash and bank balances, receivables and liabilities (monetary items) in
foreign currencies as at the yearend are translated at closing-date
rates, and unrealized translation differences are included in the
Profit and Loss Account
i. Investments
Investments are classified as Long Term & Current Investments. Long
Term Investments are valued at cost less provision for diminution other
than temporary, in value, if any. Current Investments are valued at
cost or fair value whichever is lower.
j. Valuation of Inventories
i) Raw materials are valued at cost or net realizable value whichever
is lower.
ii) Work in progress has been valued at cost of materials and labour
charges together with relevant factory overheads.
iii) Finished Goods are valued at cost or net realizable value
whichever is lower. (Inclusive Excise Duty).
iv) Stores & Fuel are valued at cost or net realizable value whichever
is lower.
k. Employee Benefit
(i) Short Term
Short Term employee benefits are recognized as an expense at the
undiscounted amount expected to be paid over the period of services
rendered by the employees to the company.
(ii) Long Term
The Company has both defined contribution and defined benefit plans.
These plans are financed by the Company in the case of defined
contribution plans.
(iii) Defined Contribution Plans
These are plans in which the Company pays pre-defined amounts to
separate funds and does not have any legal or informal obligation to
pay additional sums. These comprise of contributions to Employees
Provident Fund. The Company's payments to the defined contribution
plans are reported as expenses during the period in which the employees
perform the services that the payment covers.
(iv) Defined Benefit Plans
Expenses for defined benefit gratuity payment plans are calculated as
at the balance sheet date by independent actuaries in the manner that
distributes expenses over the employees working life. These commitments
are valued at the present value of the expected future payments, with
consideration for calculated future salary increases, using a
discounted rate corresponding to the interest rate estimated by the
actuary having regard to the interest rate on Government Bonds with a
remaining term i.e. almost equivalent to the average balance working
period of employees.
(v) Other Employee Benefit
Compensated absences which accrue to employees and which can be carried
to future periods but are expected to be encashed or availed in twelve
months immediately following the year end are reported as expenses
during the year in which the employees perform the services that the
benefit covers and the liabilities are reported at the undiscounted
amount of the benefits after deducting amounts already paid.
l. Earning per Share
Basic earning per share is calculated by dividing the net profit after
tax for the year attributable to Equity Shareholders of the Company by
the weighted average number of Equity Shares in issue during the year.
Diluted earning per Share is calculated by dividing net profit
attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding
during the year.
m. Taxation
Income Ãtax expense comprises of current tax, and deferred tax charge
or credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
arising mainly on account of brought forward business losses, capital
losses and unabsorbed depreciation under tax laws, are recognized, only
if there is a virtual certainly of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized only to the extent there is a reasonable
certainty of its realization. At each balance sheet date, the carrying
amount of deferred tax assets is reviewed to reassure realization.
n. Impairment
The carrying value of assets of the Company's cash generating units are
reviewed for impairment annually or more often if there is an
indication of decline in value based on internal/external factors. If
any indication of such impairment exists, the recoverable amounts of
those assets are estimated and impairment loss is recognized, if the
carrying amount of those assets exceeds their recoverable amount. The
recoverable amount is the greater of the net selling price and their
value in use. Value in use is arrived at by discounting the estimated
future cash flows to their present value based on appropriate discount
factor.
o. Provisions & Contingencies
A provision is recognized when the Company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions
(excluding long term benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognized but are disclosed in the
notes to the Financial Statements. A contingent asset is neither
recognized nor disclosed.
p. Borrowing Cost
Borrowing costs are recognized in the period to which they relate,
regardless of how the funds have been utilized, except where it relates
to the financing of construction or development of assets requiring a
substantial period of time to prepare for their intended future use.
Interest on borrowings if any is capitalized up to the date when the
asset is ready for its intended use. The amount of interest capitalized
for the period is determined by applying the interest rate applicable
to appropriate borrowings
q. Research & Development Expenditure
Research & Development Expenditure is charged to revenue. Capital
expenditure on research and development is reported as fixed assets
under the relevant head. Depreciation on research and development fixed
assets are not classified as research and development expenses and
instead included under depreciation expenses.
r. Leases
Lease Transactions entered into on or after April 1, 2001.
(1) Assets acquired under lease where the Company has substantially all
the risks and rewards incidental to ownership are classified as finance
leases. Such assets are capitalized at the inception of the Lease at
the lower of the fair value or the present value of minimum lease
payments and a liability is created for an equivalent amount. Each
lease rental paid is allocated between the liability and the interest
cost, so as to obtain a constant periodic rate of interest on the
outstanding liability for each period.
(2) Assets acquired on lease where a significant portion of risk and
rewards incidental to ownership is retained by the leaser are
classified as operating lease. Lease rental are charged to the profit
and loss account on accrual basis.
s. Proposed Dividend & Corporate Dividend Tax
Dividend proposed by the Board of Directors along with corporate
dividend tax is provided in the books of accounts. Approval in the
General Meeting is pending for the same.
Mar 31, 2010
A. Method of Accounting
The Financial Statements are prepared as per historical cost convention
and in accordance with the Generally Accepted Accounting Principles in
India, the provisions of the Companies Act 1956, and the applicable
Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006. All Income and Expenditures having material
bearing on the Financial Statements are recognized on accrual basis.
b. Use of Estimates
The presentation of the Financial Statements in conformity with the
Generally Accepted Accounting policies requires, the management to make
estimates and assumptions that affect the reported amount of Assets and
Liabilities, Revenues and Expenses and disclosure of contingent
liability. Such estimation and. assumptions are based on managements
evaluation of relevant facts and circumstances as on date of Financial
Statements, Difference between the actual results and estimates are
recognized in the period in which the results are known / materialized.
e. Revenue Recognition
Sales are stated inclusive of rebate and trade discount and excluding
Central Sales Tax, State Value Added Tax. With regard to sale of
products, income is reported when practically all risks and rights
connected with the ownership have been transferred to the buyers. This
usually occurs upon dispatch, after the price has been determined.
Export Benefits are accounted on accrual basis.
d. Fixed Assets
Tangible Fixed Assets acquired by the Company are reported at
acquisition value, with deductions for accumulated depreciation [other
than "freehold land" where no depreciation is charged] and impairment
losses, if any. The acquisition value includes the purchase price
(excluding refundable taxes), and expenses directly attributable to
assets to bring It to the factory and in the working condition for its
intended use. Where the construction or development of any such asset
requiring a substantial period of time to set up for its intended use,
is funded by borrowings if any, the corresponding borrowing cost are
capitalized up to the date when the asset is ready for. its intended
use.
Capital work in progress is stated at Cost.
Pre-operative expenditure & trial run expenditure on the Project Is
capitalized amongst the various heads of fixed assets on the
commencement of commercial production of respective project.
e. Depreciation
i) Depreciation on Fixed Assets is provided on Straight Line Basis in
accordance with the provisions of Section 205(2)(b) of the Companies
Act, 1956 in the manner and at the rates specified in Schedule XIV to
the said Act
ii) Depreciation on additions to Assets during the year is being
provided on pro-rata basis with reference to month of
acquisition/installation as required by Schedule XIV to the Companies
Act,1956 .
iii) Depreciation on assets sold, scrapped or demolished during the
year is provided at their respective rates up to the date on which such
assets are sold, scrapped or demolished, as required by Schedule XIV of
the Companies Act, 1956.
f. Excise Duty
Excise Duties recovered are included in the sale of products. Excise
duties in respect of Finished Goods lying in stock are shown separately
as an item of Other Manufacturing Expenses and included in the
valuation of finished goods.
g. Cash Flow Statement
The Cash Row Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash on hand and demand deposits with banks
h. Foreign Currency Transactions
Transactions in the foreign currency which are covered by forward
contracts are accounted for at the contracted rate; the difference
between the forward rate and the exchange rate at the data of
transaction Is recognized in the profit & loss account over the life of
the contract. Transactions in the foreign currency other than those
covered by forward contract rates are translated to the reporting
currency based on the exchange rate on the date of the transaction.
Exchange differences arising on settlement thereof during the year are
recognised as income or expenses in the Profit and Loss Account.
Cash and bank balances, receivables and liabilities (monetary items) in
foreign currencies as at the year end are translated at closing-date
rates, and unrealized translation differences are, included in the
Profit and Loss Account.
I. investments
Investments are classified as Long Term & Current Investments. Long
Term investments are valued at cost less provision for diminution other
than temporary, in value, if any. Current Investments are valued at
cost or fair value whichever Is lower.
j. Valuation of Inventories
i) Raw materials are valued at cost or net realizable value whichever
is lower.
ii) Work in progress has been valued at cost of materials and labour
charges together with relevant factory overheads,
iii) Finished Goods are valued at cost or net realizable value which
ever is lower, (inclusive Excise Duty).
iv) Stores & Fuel are valued at cost or net realizable vaJue whichever
is lower.
k. Employee Benefit:
(i) Short Term
Short Term employee benefits are recognised as an expense at the
undiscounted amount expected to be paid over the period of services
rendered by the employees to the company.
(ii) Long Term
the Company has both defined contributiori and defined benefit plans.
These plans are financed by the Company In the case of defined
contribution plans,
(iii) Defined Contribution Plans
These are plans in which the Company pays pre-defined amounts to
separate fundRs. and does not have any legal or informal obligation to
pay additional sums. These comprise of contributions to Employees
Provident Fund, The Companys payments to the defined contribution
plans are reported as expenses during the period in which the employees
perform the services that the payment covers.
(iv) Defined Benefit Plans
Expenses for defined benefit gratuity payment plans are calculated as
at the balance sheet date by independent actuaries in the manner that
distributes expenses over the employees working life, These commitments
are valued at the present value of the expected future payments, with
consideration for calculated future salary increases, using a
discounted rate corresponding to the interest rate estimated by the
actuary having regard to the interest rate on Government Bonds with a
remaining term i.e. almost equivalent to the average balance working
period of employees.
(v) Other Employee Benefit
Compensated absences which accrue to employees and which can be carried
to future periods but are expected to be encashed or availed in twelve
months immediately following the year end are reported .is expenses
during the year in which the employees perform the services that the
benefit covers and the liabilities are reported at the undiscounted
amount of the benefits after deducting amounts already paid.
l. Earning per Share
Basic earning per shares is calculated by dividing the net profit after
tax for the year attributable to Equity Shareholders of the Company by
the weighted average number of Equity Shares in issue during the year.
Diluted earning per Share is calculated by dividing net profit
attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding
during the year.
m. Taxation
Income -tax expense comprises of current tax and deferred tax charge or
credit. Provision for current tax Is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
arising mainly on account of brought forward business losses, capital
losses and unabsorbed depreciation under tax laws, are recognized, only
if there is a virtual certainly of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized only to the extent there is -a reasonable
certainty of its realization. At each balance sheet data, the carrying
amount of deferred tax assets is reviewed to reassure realization.
n. Impairment
The carrying value of assets of the Companys cash generating units are
reviewed for impairment annually or more often if there is an
indication of decline in value based on internal/external factors. If
any indication of such impairment exists, the recoverable amounts of
those assets are estimated and impairment loss is recognized, if the
carrying amount of those assets exceeds their recoverable amount. The
recoverable amount is the greater of the net selling price and their
value in use. Value in use is arrived at by discounting the estimated
future cash flows to their present value based on appropriate discount
factor.
o. Provisions & Contingencies
A provision is recognized when the Company has a present legal or
constructive obligation as a result of past event and it is probable
that an outflow of resources will be required to settlî the obligation,
in respect of which reliable estimate can be made. Provisions
(excluding long term benefits) are not discounted to its present value
and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognized but are disclosed in the
notes to the Financial Statements. A contingent asset is neither
recognized nor disclosed.
p. Borrowing Cost
Borrowing costs are recognized in the period to which they relate,
regardless of how the funds have been utilized, except where if relates
to the financing of construction or development of assets requiring a
substantial period of time to prepare for their intended future use.
Interest on borrowings if any is capitalized up to the date when the
asset is ready for its intended use. The amount of interest capitalized
for the period is determined by applying the interest rate applicable
to appropriate borrowings.
q, Research & Development Expenditure
Research & Development Expenditure is charged to revenue. Capital
expenditure on research and development is reported as fixed assets
under the relevant head. Depreciation on research and development fixed
assets are not classified as research and development expenses and
instead included under depreciation expenses.
r. Leases
Lease Transactions entered into on or after April 1, 2001.
(1) Assets acquired under lease where the Company has substantially all
the risks and rewards incidental to ownership are classified as finance
leases, Such assets are capitalized at the inception of the Lease at
the lower of the fair value or the present value of minimum lease
payments and a liability is created for an equivalent amount. Each
lease rental paid is allocated between the liability and the interest
cost, so as to obtain a. constant periodic rate of interest on the
outstanding liability for each period,
(2) Assets acquired on lease where a significant portion of risk and
rewards incidental to ownership is retained by the leasor are
classified as operating lease. Lease rental are charged to the profit
and loss account on accrual basis.
s. Proposed Dividend & Corporate Dividend Tax
Dividend proposed by the Board of Directors along with corporate
dividend tax is provided in the books of accounts. Approval in the
General Meeting is pending for the same,
Mar 31, 2002
1. System of Accounting :
i) The Company generally follows the mercantile system of accounting
and recognises income and expenditure on an accrual basis, except in
case of significant uncertainties.
ii) Financial statements are based on historical cost. These costs are
not adjusted to reflect the impact of the changing value in the
purchasing power of money.
2. Fixed Assets and Depreciation :
(A) Fixed Assets
Fixed Assets are carried at cost of acquisition or construction
including incidental expenses related to acquisition & installation on
concerned assets, less accumulated depreciation (except on free hold
land) and amortisation.
(B) Depreciation and Amortisation :
(a) Other Fixed Assets :
i) Depreciation on Fixed Assets is being provided on Straight Line
Basis in accordance with the provisions of Section 205(2)(b) of the
Companies Act,1956 in the manner and at the rates specified in Schedule
XIV to the said Act.
ii) Depreciation on additions to Plant and Machinery during the year is
being provided on pro-rata basis with reference to month of
acquisition/ installation as required by Schedule XIV to the Companies
Act,1956 where as the depreciation on additions to other assets is
being provided for the full year.
iii) Depreciation on assets sold, scrapped or demolished during the
year is being provided at their respective rates up to the the date on
which such assets are sold,scrapped or demolished, as required by
Schedule XIV of the Companies Act, 1956
3. Technical Know How Fees :
Expenditure on acquiring technical know how is being amortised over a
period of seven years.
4. Investments :
Investments are valued at cost of acquisition.
5. Inventories :
(i) Stores, Spares, Coal, etc, are stated at cost or net realisable
value whichever is lower
(ii) Raw Materials are stated at cost (including related expenses) or
net realisable value whichever is lower
(iii) Materials-in-process and Finished goods are stated at full
absorption cost or net realisable value which ever is lower, inclusive
of excise duty.
(iv) Goods in transit are stated at actual cost upto the date of the
Balance Sheet.
6. Exchange Fluctuations :
Current Assets and Liabilities in Foreign Currency outstanding at the
close of Financial year are valued at appropriate exchange rates at
close of the year. The loss or gain due to fluctuation of exchange
rates is charged to Profit & Loss A/c.
7. Sales :
Export sales are accounted on the basis of the date of Bill of lading .
8. Research & Development Expenditure :
Research &Development Expenditure is charged to revenue under the
natural heads of account in the year in which it is incurred. However
R&D expenditure on Fixed Assets is treated in the same way as
expenditure on other Fixed Assets.
9. Retirement Benefits :
i) Retirement benefit in the form of Provident Fund and Pension Scheme
is being ac- counted on accrual basis and charged to Profit and Loss
Account of the year.
ii) Gratuity Payment for Present Liability of future Payment of
Gratuity is being made to Gratuity Fund which fully covers the same
under Cash accumulation Policy of Life Insurance Corporation of India.
iii) Superannuation :
Contribution for Superannuation benefits is made on the basis of
Officers Superannuation Fund Scheme.
iv) Leave Encashment :
The Company has no retirement benefits consisting of "Leave Encashment
Benefit on Retirements" as the employees of the Company can encash
unavailed leave dur- ing the period of service in accordance with
companys rules and regulations, in this regard. The same is,
therefore, accounted on payment basis.
10. Miscellaneous Expenditure :
Expenditure of enduring benefits is treated as Deferred Revenue
Expenditure and is be- ing amortised over a period as estimated by the
Management. Preliminary expenses are written off equally over a period
of ten years.