Mar 31, 2015
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956 and Companies Act 2013.
The financial statements have been prepared on accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year .
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Inventories are valued at the lower of cost (on weighted average basis)
and the net realisable value after providing for obsolescence and other
losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of sale, including octroi and other
levies, transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads and excise
duty, where applicable.
1.4 Cash and cash equivalents ( for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks being highly
liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.
1.5 Depreciation and amortisation
Depreciation has been provided on the written down value method as per
the rates prescribed in Schedule II to the Companies Act, 2013 over
their estimated useful life.
The estimated useful life of the tangible assets and the amortisation
period are reviewed at the end of each financial year.
1.6 Cash Flow Statement
Cash Flows are reported using the indirect method, whereby profit
/(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.7 Revenue Recognition.
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty where applicable but exclude sales tax and value
added tax.
1.8 Other income
Interest income is accounted on accrual basis.
1.9 Tangible fixed assets
Fixed Assets are carried at cost less accumulated depreciation and
impairment losses, if any.
1.10 Intangible Fixed Assets
Intangible Fixed Assets are carried at cost less accumulated
amortisation and impairment losses where applicable.
1.11 Foreign Currency Transactions and Translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss.
1.12 Employee benefits
Employee benefits include provident fund,E.S.I. and compensated
absences.
1.13 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares
1.14 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use.
1.15 Provisions and Contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the 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.
1.16 Previous year's figures
The Revised Schedule VI has become effective from 1 April, 2011 for the
preparation of financial statements. This has significantly impacted
the disclosure and presentation made in the financial statements.
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards noti fied under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956 and Companies Act 2013.
The financial statements have been prepared on accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the repoted amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Inventories are valued at the lower of cost (on weighted average basis)
and the net realisable value after providing for obsolescence and other
losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of sale, including octroi and other
levies, transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads and excise
duty, where applicable.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.5 Depreciation and amortisation
Depreciation has been provided on the written down value method as per
the rates prescribed in Schedule XIV to the Companies Act, 1956.
Intangible assets are amortised over their estimated useful life.
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation method is revised to reflect the changed pattern.
1.6 Cash Flow Statement
Cash Flows are reported using the indirect method, whereby profit
/(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.7 Revenue Recognition.
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty where applicable but exclude sales tax and value
added tax.
1.8 Other income
Interest income is accounted on accrual basis.
1.9 Tangible fixed assets
Fixed Assets are carried at cost less accumulated depreciation and
impairment losses, if any.
1.10 Intangible Fixed Assets
Intangible Fixed Assets are carried at cost less accumulated
amortisation and impairment losses. The cost of an intangible asset
comprises its purchase price, including any import duties and other
taxes and any directly attributable expenditure on making the asset
ready for its intended use and net of any trade discounts and rebates.
1.11 Foreign Currency Transactions and Translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss.
1.12 Employee benefits
Employee benefits include provident fund,E.S.I. and compensated
absences.
Defined contribution plans
The Company''s contribution to provident fund and superannuation fund
are cdonsidered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
1.13 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (includi ng the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares
1.14 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. When there is
indication that an impairment loss recognised for an asset in earlier
accounting periods no longer exists or may have decreased, such
reversal of impairment loss is recognised in the Statement of Profit
and Loss, except in case of revalued.
1.15 Provisions and Contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the 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.
1.16 Previous year''s figures
The Revised Schedule VI has become effective from 1 April, 2011 for the
preparation of financial statements. This has significantly impacted
the disclosure and presentation made in the financial statements.
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
The Revised Schedule VI does not require presentation of a
reconciliation explaining the impact of the reclassification of the
previous year figures in the financial statements. However, the company
may consider giving an appropriate reconciliation in the Notes as an
additional information as it would help in clarifying the impact of the
reclassification of the previous year figures.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year .
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Inventories are valued at the lower of cost (weighted average basis)
and the net realisable value after providing for obsolescence and other
losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of sale, including octroi and other
levies, transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads and excise
duty, where applicable.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balance (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.5 Depreciation and amortisation
Depreciation has been provided on the written-down value method as per
the rates prescribed in Schedule XIV to the Companies Act, 1956 .
Intangible assets are amortised over their estimated useful life.
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation method is revised to reflect the changed pattern.
1.6 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.7 Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty where applicable but exclude sales tax and value
added tax.
1.8 Other income
Interest income is accounted on accrual basis.
1.9 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any.
1.10 Intangible fixed assets
Intangible Fixed Assets are carried at cost less accumulated
amortisation and impairment losses. The cost of an intangible asset
comprises its purchase price, including any import duties and other
taxes and any directly attributable expenditure on making the asset
ready for its intended use and net of any trade discounts and rebate.
1.11 Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss.
1.12 Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
fund and compensated absences.
Defined contribution plans
The Company''s contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
1.13 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items of any
by the weighted average number of equity shares outstanding during the
year. Diluted earnings per share is computed by dividing the profit /
(loss) after tax as adjusted for dividend, interest and other charges
to expense or income relating to the dilutive potential equity shares,
by the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares.
1.14 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. When there is
indication that an impairment loss recognised for an asset in earlier
accounting periods no longer exists or may have decreased, such
reversal of impairment loss is recognised in the Statement of Profit
and Loss, except in case of revalued
1.15 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the 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.
1.16 Previous year''s figures
The Revised Schedule VI has become effective from 1 April, 2011 for the
preparation of financial statements. This has significantly impacted
the disclosure and presentation made in the financial statements.
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
The Revised Schedule VI does not require presentation of a
reconciliation explaining the impact of the reclassification of the
previous year figures in the financial statements. However, the company
may consider giving an appropriate reconciliation in the Notes as an
additional information as it would help in clarifying the impact of the
reclassification of the previous year figures.
Mar 31, 2012
A. Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention except for categories of fixed assets acquired before 1
April, 2012, that are carried at revalued amounts. The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year .
b. Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known/materialise.
c. Inventories
Inventories are valued at the lower of cost (weighted average basis)
and the net realisable value after providing for obsolescence and other
losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of sale, including octroi and other
levies, transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads and, where
applicable, excise/customs duty.
d. Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are highly liquid investments that are readily convertible
into known amounts of cash and which are subject to insignificant risk
of changes in value.
e. Cash flow statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.
f. Depreciation and amortisation
Depreciation has been provided on the written-down value method as per
the rates prescribed in Schedule XIV to the Companies Act, 1956 .
g. Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty where applicable but exclude sales tax and value
added tax.
h. Other income
Interest income is accounted on accrual basis.
i. Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any.
j. Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Treatment of exchange differences
Exchange differences arising on settlement/restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss.
k. Government grants, subsidies and export incentives:- not applicable.
I. Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
fund and compensated absences.
Defined contribution plans
The Company's contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
m. Earnings per share
Basic earnings per share is computed by dividing the profit/(loss)
after tax by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the
profit/(loss) after tax as adjusted for dividend, interest and other
charges to expense or income relating to the dilutive potential equity
shares, by the weighted average number of equity shares considered for
deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all
dilutive potential equity shares.
n. Impairment of assets
The carrying values of assets/cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. When there is
indication that an impairment loss recognised for an asset in earlier
accounting periods no longer exists or may have decreased, such
reversal of impairment loss is recognised in the Statement of Profit
and Loss, except in case of revalued.
o. Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the 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.
p. The Revised Schedule VI has become effective from 1st April, 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped/reclassified
wherever necessary to correspond with the current year's
classification/disclosure.
Mar 31, 2011
A. Fixed Assets & Depreciation
(i) Fixed Assets are stated at cost of acquisition or construction less
Depreciation. All costs, attributable to bring the Fixed Assets to
working condition are capitalised.
(ii) Depreciation on all Fixed Assets is provided at Written Down Value
Method at the rate specified in Schedule XIV of the Companies Act, 1956
excluding damaged Plant & Machinery.
b. Inventories
(i) Raw Materials, Components, Stores and Consumables are valued at
weighted average cost.
(ii) Finished Goods & Work-In-Progress are valued at weighted average
cost of raw materials & the cost of conversion thereof for bringing the
inventories upto the present condition or net realisable value,
whichever is low.
c. Secured Loans
(i) Working Capital & Packing Credit
Borrowing for Working Capital is secured by hypothecation of
Stock-In-Trade, Book debts.
(ii) Working Capital Term Loan
A part of the Working Capital has been converted by the Bank as
W.C.T.L.
2. Cash Flow Statement (AS-3)
The Cash flow statement for the year under audit has been set out in
this report separately.
3. Revenue Recognition (AS-9)
(i) All Income and Expenditure are accounted for on accrual basis
except otherwise stated in consonance with the generally accepted
accounting principles.
(ii) The Company has no system for actuarial valuation of gratuity and
not provided for accrued liabilities as on 31st March, 2011 in respect
of future payment of gratuity to employees.
4. Foreign Currency Transactions (AS-11)
Foreign Currency transactions are recorded at the exchange rates
prevailing on the respective date of transactions. All other foreign
currency transactions are restated at the rates ruling at the period
end and all exchange losses/gains arising therefrom are accounted for
in the Profit and Loss Account.
5. Contingent Liabilities
Contingent Liabilities are not provided for and are disclosed by way of
notes below :
i) Bank Guarantee outstanding Rs. 4.42 lacs against 100% margin (Rs.
6.38 lacs as on 31.03.2010)
6. Additional information pursuant to the provision of paragraph 3, 4C
and 4D of part II of Schedule VI of the Companies Act, 1956.
7. Figure for the previous years were regrouped/rearranged wherever
necessary.
Mar 31, 2010
A. Fixed Assets & Depreciation
(i) Fixed Assets are stated at cost of acquisition or construction less
Depreciation. All costs, attributable to bring the Fixed Assets to
working condition are capitalised.
(ii) Depreciation on all Fixed Assets is provided at Written Down Value
Method at the rate specified in Schedule XIV of the Companies Act, 1956
excluding damaged Plant & Machinery.
b. Inventories
(i) Raw Materials, Components, Stores and Consumables are valued at
weighted average cost.
(ii) Finished Goods & Work-in-Progress are valued at weighted average
cost of raw materials & the cost of conversion thereof for bringing the
inventories upto the present condition or net realisable value,
whichever is low.
c. Secured Loans
(i) Working Capital & Packing Credit
Borrowing for Working Capital is secured by hypothecation of
Stock-ln-Trade, Book debts & Fixed Deposits. (ii) Working Capital Term
Loan A part of the Working Capital has been converted by the Bank as
W.C.T.L. payable in 29 quaterly instalments since June 2007.