Mar 31, 2016
SIGNIFICANT ACCOUNTING POLICIES
Accounting Convention
The financial statement are prepared under the historical cost convention on the âAccrual Conceptâ of accountancy in accordance with the accounting principles generally accepted in India and comply with the accounting standards issued by the institute of Chartered Accountants of India to the extent applicable and with the relevant provisions of the Companies Act, 2013.
Use Of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in witch results are known/materialized.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises of all expenses incurred to bring the assets to its present location and condition. Borrowing cost directly attributable to the acquisition /construction are included in the cost of fixed assets. Adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure incurred during construction / preoperative period including interest and finance charge on specific / general purpose loans, prior to commencement of commercial production are capitalized. The same are allocated to the respective fixed assets on completion of construction / erection of the capital project / fixed assets.
Capital assets (including expenditure incurred during the construction period) under erection / installation are stated in the Balance Sheet as âCapital Work in Progress.â
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amount of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assetâs net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the assets.
Depreciation
All fixed assets, except capital work in progress, are depreciated on a written down value method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to / deletions from fixed assets made during the period is provided on pro-rata basis from / up to the date of such addition / deletion as the case may be.
Investments
Long term investments are stated at cost. Current investments are stated at lower of cost and market price. 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.
Inventories
Inventories are measured at lower of cost and net realizable value. Cost of raw materials, stores & spares parts are ascertained on FIFO basis. Cost of finished goods and process stock is ascertained on full absorption cost basis. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing in them to their present location & condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other items is recognized when no significant uncertainty as to its determination or realization exists.
Borrowing Cost
Borrowing cost that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.
Employee Benefits
Short - term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.
Post employment and other long term employee benefits are recognized as an expense in the profit & loss account for the year in which the liabilities are crystallized
Taxes on Income.
Income tax expenses for the year comprises of current tax and deferred tax. Current tax provision is determined on the basis of taxable income computed as per the provisions of the Income Tax Act. Deferred tax is recognized for all timing differences that are capable of reversal in one or more subsequent periods subject to conditions of prudence and by applying tax rates that have been substantively enacted by the balance sheet date.
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial statements.
Mar 31, 2015
Accounting Convention :
The financial statement are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act, 2013.
Use Of Estimates :
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in witch results are known/materialized.
Fixed Assets :
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing cost
directly attributable to the acquisition /construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure
incurred during construction / preoperative period including interest
and finance charge on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same are
allocated to the respective fixed assets on completion of construction
/ erection of the capital project / fixed assets.
Capital assets (including expenditure incurred during the construction
period) under erection / installation are stated in the Balance Sheet
as "Capital Work in Progress."
Impairment of Assets :
At each balance sheet date, the Company reviews the carrying amount of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset's net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the assets.
Depreciation :
All fixed assets, except capital work in progress, are depreciated on a
written down value method. Depreciation is provided based on useful
life of the assets as prescribed in Schedule II to the Companies Act,
2013. Depreciation on additions to / deletions from fixed assets made
during the period is provided on pro-rata basis from / up to the date
of such addition / deletion as the case may be.
Investments :
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. 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.
Inventories :
Inventories are measured at lower of cost and net realizable value.
Cost of raw materials, stores & spares parts are ascertained on FIFO
basis. Cost of finished goods and process stock is ascertained on full
absorption cost basis. Cost of inventories comprises of cost of
purchase, cost of conversion and other costs incurred in bringing in
them to their present location & condition.
Revenue Recognition :
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other items is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost :
Borrowing cost that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits :
Short - term employee benefits are recognized as an expense at the
undiscounted amount in the profit & loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the profit & loss account for the year in which the
liabilities are crystallized
Taxes on Income :
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable income
computed as per the provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by
applying tax rates that have been substantively enacted by the balance
sheet date.
Provision, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2014
Accounting Convention
The financial statement are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act, 1956.
Use Of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in witch results are known/materialized.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing cost
directly attributable to the acquisition /construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure
incurred during construction / preoperative period including interest
and finance charge on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same are
allocated to the respective fixed assets on completion of construction
/ erection of the capital project / fixed assets.
Capital assets (including expenditure incurred during the construction
period) under erection / installation are stated in the Balance Sheet
as "Capital Work in Progress."
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amount of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset''s net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the assets.
Depreciation
All fixed assets, except capital work in progress, are depreciated on a
written down value method at the rates and in the manner prescribed in
Schedule XIV of the Companies'' Act, 1956. Depreciation on additions to
/ deletions from fixed assets made during the period is provided on
pro-rata basis from / up to the date of such addition / deletion as the
case may be.
Investments
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. 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.
Inventories
Inventories are measured at lower of cost and net realizable value.
Cost of raw materials, stores & spares parts are ascertained on FIFO
basis. Cost of finished goods and process stock is ascertained on full
absorption cost basis. Cost of inventories comprises of cost of
purchase, cost of conversion and other costs incurred in bringing in
them to their present location & condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include Interdivisional sales.
Revenue in respect of other items is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost
Borrowing cost that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits
Short - term employee benefits are recognized as an expense at the
undiscounted amount in the profit & loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the profit & loss account for the year in which the
liabilities are crystallized
Taxes on Income.
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable income
computed as per the provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by
applying tax rates that have been substantively enacted by the balance
sheet date.
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2013
Accounting Convention
The financial statement are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act,1956.
Use Of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in witch results are known/materialized.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing cost
directly attributable to the acquisition /construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure
incurred during construction / preoperative period including interest
and finance charge on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same are
allocated to the respective fixed assets on completion of construction
/ erection of the capital project / fixed assets.
Capital assets (including expenditure incurred during the construction
period) under erection / installation are stated in the Balance Sheet
as " Capital Work in Progress."
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amount of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an assetÂs net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the assets.
Depreciation
All fixed assets, except capital work in progress, are depreciated on a
written down value method at the rates and in the manner prescribed in
Schedule XIV of the Companies Act, 1956. Depreciation on additions to
/ deletions from fixed assets made during the period is provided on
pro-rata basis from / up to the date of such addition / deletion as the
case may be.
Investments
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. 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.
Inventories
Inventories are measured at lower of cost and net realizable value.
Cost of raw materials, stores & spares parts are ascertained on FIFO
basis. Cost of finished goods and process stock is ascertained on full
absorption cost basis. Cost of inventories comprises of cost of
purchase, cost of conversion and other costs incurred in bringing in
them to their present location & condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other items is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost
Borrowing cost that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits
Short  term employee benefits are recognized as an expense at the
undiscounted amount in the profit & loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the profit & loss account for the year in which the
liabilities are crystallized
Taxes on Income.
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable income
computed as per the provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by
applying tax rates that have been substantively enacted by the balance
sheet date.
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2010
Accounting Convention :
The financial statement are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act, 1956.
Use Of Estimates :
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in witch results are known/materialized.
Fixed Assets :
Fixed assets are stated at cost iess accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition Borrowing cost
directly attributable to the acquisition /construction are included in
the cost of fixed assets.Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized. in case
of new projects / expansion of existing projects, expenditure incurred
during construction / preoperative period including interest and
finance charge on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same are
allocated to the respective fixed assets on completion of construction
/ erection of the capital project/fixed assets.
Capital assets (induing expenditure incurred during the construction
period) under erection / installation are stated in the Balance Sheet
as " Capital Work in Progress."
Impairment of Assets :
At each balance sheet date, the Company reviews the earring amount of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated ,n order to
determine the extent of impairment loss Recoverable amount is the
higher of an assets net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of mony and the risks specific
to the assets.
Depreciation ;
All fixed assets, except capital work ,n progress, are depreciated on a
written down value method at the rates and in the manner prescribed in
Schedule XIV of the CompaniesAct, 1956. Depreciation on additions to /
deletions from fixed assets made during the period is provided on
pro-rata basis from / up to the month of such addition / deletion as
the case may be.
Investments :
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. 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 magement.
Inventories :
Inventories are measured at lower of cost and net realizable value.
Cost of raw matenas,stores & spares parts are ascertained on FIFO
basis. Cost of finished goods and process stock is ascertained on full
absorption cost basis Cost of inventories comprises of cost of
purchase, cost of conversion and other costs incurred in bringing in
them to their present location & condition.
Revenue Recognition :
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisionsl sales.
Revenue in respect of other items is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost:
Borrowing cost that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying assets is one that necessarily takes a
substantial period of time to get ready for its intended use. Ail other
borrowing costs are charged to revenue.
Employee Benefits :
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit & loos account of the year in which
the related service is rendered Post employment and other long term
employee benefits are recognized as an expense , the profit & loos
account for the year in which the liabilities are crystallized
Taxes on Income :
Income tax expenses for the year comprises of current tax and deferred
tax Current tax provision determined on the basis of taxable income
computed as per the provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by
applying tax rates that have been substantively enacted by the balance
sheet date
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the in
the notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article