Mar 31, 2018
1(a) Significant Accounting policies
(a) Basis of preparation
(i) The financial statements have been prepared in compliance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
(ii) The financial statements have been prepared on the historical cost basis except for the following assets and liabilities which have been measured at fair value:
1. Financial instruments measured at fair value through profit and loss
2. Defined benefit plans - plan assets measured at fair value
(b) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (âthe functional currencyâ). The financial statements are presented in Indian rupee O, which is the companyâs functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates.
(c) Revenue recognition Sale of goods
Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of goods is recognised when the significant risks and rewards in respect of ownership of products are transferred by the Company. The entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold and no significant uncertainty exist regarding the amount of consideration that will be derived from the sale of goods as well as regarding its ultimate collection. Amounts disclosed as revenue are inclusive of excise duty and net of returns.
The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity.
Dividend income
Dividend is recognized as revenue when the right to receive payment has been established.
Interest income
Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.
(d) Property, Plant and Equipment (PPE)
i. Recognition and measurement
All items of PPE are measured at cost less accumulated depreciation and any accumulated impairment losses, if any.
The cost of an item of PPE comprises:
a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognised in profit or loss.
The Company has elected to continue with the carrying value of all its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as the deemed cost as at the transition date pursuant to the exemption under Ind AS 101.
Any gain or loss on disposal of an item of PPE is recognised in profit and loss.
ii. Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
iii. Depreciation
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.
Depreciation on PPE (other than leasehold land) has been provided based on useful life of the assets in accordance with Schedule II to the Companies Act, 2013, on written down value method except, useful lives and residual value for the following assets, based on independent technical evaluation, which is different from the useful lives and residual values as per Schedule II of the Companies Act, 2013, as under:
Leasehold land (other than perpetual leasehold land) are amortised over the lease period.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Profit and loss on disposals are determined by comparing proceeds with carrying amount. These are included in statement of profit and loss.
(e) Intangible assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/ depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalised.
The Company has elected to continue with the carrying value of all its intangible assets as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as the deemed cost as at the transition date pursuant to the exemption under Ind AS 101
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific to which it relates.
(f) Impairment of non-financial assets
Assets that have a definite useful life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired.
The recoverable amount is higher of the assetâs net selling price or 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 is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
(g) Borrowing cost
Borrowing costs attributable to the acquisition/construction of qualifying assets are capitalized and form part of the cost of the qualifying assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue as an expense.
(h) Operating lease
Lease payments for assets taken on operating lease are recognised in the Statement of Profit and Loss over the lease term.
(i) Income Tax
Provision for income tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on the assessable income. The Company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statements and in estimating its current tax provision. Deferred tax assets are recognized where there is certainty that there will be sufficient future taxable income available against which such deferred tax assets can be realized.
(j) Inventories
Inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, work-in-progress, packing materials, trading and other products are determined on first-in-first-out basis.
(k) Research and development
Revenue expenditure on Research and Development is charged to Profit and Loss Account as incurred. Capital expenditure on assets acquired for Research and Development is added to PPE.
(l) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets Classification
The Company shall classify financial assets as subsequently measured at amortised cost and fair value through profit and loss (FVTPL) on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through profit or loss
Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in statement of profit and loss.
Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g. Bonds, securities and deposits.
b) Trade receivables - The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
Financial liabilities
Classification
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit and loss.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss.
The Companyâs financial liabilities include trade and other payables, loans and borrowings.
(m) Employee benefits
i. Short term employee benefits
Short term employee benefits consisting of wages, salaries, social security contributions, ex-gratia and accrued leave, are benefits payable and recognised in 12 months. Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the year as the related service are rendered by the employee.
ii. Defined contribution plans
Companyâs contribution for the year paid/payable to defined contribution retirement benefit schemes are charged to Statement of Profit and Loss.
The Companyâs contribution towards provident fund and employee state insurance scheme for certain eligible employees are considered to be defined contribution plan for which the Company made contribution on monthly basis.
iii. Defined benefit plans
Companyâs liabilities towards defined benefit plans and other long term benefits viz. gratuity and compensated absences expected to occur after twelve months, are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recognised in the Statement of other comprehensive income in the period of occurrence of such gains and losses. The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets, if any.
(n) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised if as a result of a past event, the Company has a present obligation (legal or constructive) that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.
(o) Earnings per share (EPS)
Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the results would be anti-dilutive.
(p) Key estimates and assumptions
The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have an effect on their recognition and measurement in the balance sheet and statement of profit and loss. The actual amounts realised may differ from these estimates.
Estimates and assumptions are required in particular for:
- Determination of the estimated useful lives of tangible assets and intangible assets and the assessment as to which components of the cost may be capitalized.
Useful lives of tangible assets and intangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on management estimate, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturersâ warranties and maintenance support. Assumptions also need to be made, when the Company assesses, whether an asset may be capitalized and which components of the cost of the asset may be capitalised.
- Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.
- Provisions and contingent liabilities
The Company exercises judgment in measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, arbitration or government regulation, as well as other contingent liabilities. Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision.
(q) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs (upto 2 decimal) as per the requirement of Schedule III, unless otherwise stated.
(r) Standards issued or modified but not yet effective up to the date of issuance of the companyâs financial statements:
Appendix B to Ind AS 21
Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs(âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from 1 April 2018. The Company is evaluating the requirement of the amendment and the impact on the financial statements. The effect on adoption of Ind AS 21 is expected to be insignificant.
Ind AS 115
In March 2018, the Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amended Rules, 2018 (âamended rulesâ). As per the amended rules, Ind AS 115 âRevenue from contracts with customersâ supersedes Ind AS 11, âConstruction contractsâ and Ind AS 18, âRevenueâ and is applicable for all accounting periods commencing on or after 1 April 2018.
Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies that revenue should be recognized when (or as) an entity transfer control of goods or services to a customer at the amount to which the entity expects to be entitled. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers. The new revenue standard is applicable to the Company from 1 April 2018.
The standard permits two possible methods of transition: Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors. Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach).
The effect on adoption of Ind AS 115 is expected to be insignificant.
Mar 31, 2015
1. METHOD OF ACCOUNTING:
The Financial Statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards and
the relevant provisions of the Companies Act, 1956 and/or Companies
Act, 2013. Further, the Company follows the mercantile system of
accounting and recognises income and expenditure on accrual basis
except in the case of significant uncertainties.
2. USE OF ESTIMATES:
The preparation of financial statements require estimates and
assumptions to be made that affects the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known/materialised.
3. INFLATION:
Assets and Liabilities are recorded at historical cost to the Company.
These costs are not adjusted to reflect the changing value of the
purchasing power of money.
4. FIXED ASSETS:
Fixed assets are stated at the cost of acquisition which includes
taxes, duties and other identifiable direct expenses net of modvat
credit availed less accumulated depreciation and amortisation.
5. DEPRECIATION AND AMORTIZATION:
5.1. Till March 31, 2014, Depreciation on Tangible Fixed Assets was
provided on pro-rata basis on the written down value method as per the
rates prescribed in Schedule XIV of the Companies Act, 1956.
5.2. From April 1, 2014, Depreciation on Tangible Fixed Assets is
provided on pro-rata basis on the written down value method over the
useful lives of assets as prescribed in Part C of Schedule II of the
Companies Act, 2013. The Management of the Company estimates the useful
lives and residual value for the following assets, based on independent
technical evaluation, which is different from the useful lives and
residual values as per Part C of Schedule II of the Companies Act,
2013, as under:
Category Useful Life Residual Value
Motor Car 5 years 25% of Cost
5. 3.In the case of Leasehold Land, amortization/depreciation has
been provided on pro-rata basis using the straight-line method over the
period of the lease.
5.4. Intangible Fixed Assets are amortized over their respective
individual estimated useful lives on a straight-line basis, commencing
from the date the asset is available to the Company for it use.
6. INTANGIBLE ASSETS
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/ depletion. All costs, including
financing costs till commencement of commercial production, net charges
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalised.
7. INVESTMENTS:
Long Term investments are stated at the cost of acquisition, except
where there is diminution in value other than temporary, in which case
the carrying value is reduced to recognize the decline. Current
Investments are stated at the cost of acquisition or fair value,
whichever is lower.
8. INVENTORIES:
Inventories are measured at lower of cost and net realisable value
after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other cost
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of raw materials,
work-in-progress, packing materials, trading and other products are
determined on first-in-first-out basis.
9. FOREIGN CURRENCY TRANSACTIONS:
9.1. All transactions in foreign currency are recorded at the rates
of exchange prevailing on the dates when the relevant transactions take
place.
9.2. Monetary items in the form of Loans, Current Assets and Current
Liabilities in foreign currency, outstanding at the close of the year,
are converted in Indian Currency at the appropriate rates of exchange
prevailing on the date of the Balance Sheet. The resultant gain or loss
is accounted during the year.
9.3. In respect of Forward Exchange contracts entered into to hedge
foreign currency risks, the difference between the forward rate and
exchange rate at the inception of the contract is recognized as income
or expense over the life of the contract. Further, the exchange
differences arising on such contracts are recognised as income or
expense along with the exchange differences on the underlying assets/
liabilities.
10 REVENUE RECOGNITION:
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, excise duty, adjustment
for discounts (net), taxes and foreign exchange gain/loss on
corresponding hedge contract. Dividend income is recognized when the
right to receive is established. Interest income is recognized on time
proportion basis taking into account the amount outstanding and rate
applicable.
11 RETIREMENT BENEFITS:
Contribution to provident fund is charged to the Statement of Profit
and Loss as incurred. The liability for payment of gratuity is covered
through the Group Gratuity Scheme. Gratuity and Leave encashment
benefits are accounted for based on actuarial valuations.
12 TAXATION:
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made on the current tax rates based
on the assessable income. The Company provides for deferred tax based
on the tax effect of timing differences resulting from the recognition
of items in the financial statements and in estimating its current tax
provision. Deferred tax assets are recognized where there is certainty
that there will be sufficient future taxable income available against
which such deferred tax assets can be realized.
Provision for wealth tax is made based on the taxable assets.
13 IMPAIRMENT OF ASSETS:
At each Balance Sheet date, the Company reviews the carrying amounts of
its assets to determine whether there is any indication that those
assets suffered any impairment loss. If any such indication exists, the
recoverable amount of the asset 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 the value in
use, the estimated future cash flows expected from the continuing use
of the asset and from its disposal are discounted to its present value
using a discount rate that reflects the current market assessment of
the time value of money and the risks specific to the asset. An
impairment loss is recognised whenever the carrying amount of an asset
exceeds its recoverable amount. Reversal of impairment loss is
recognised immediately as income in the Statement of Profit and Loss.
14 SUNDRY DEBTORS AND LOANS AND ADVANCES:
Sundry debtors and loans and advances are stated after making adequate
provisions for doubtful balances.
15 GOVERNMENT GRANTS:
The Company recognises Special capital Incentive received from the
Government for setting up/expansion of an industrial undertaking as a
capital Reserve.
16 BORROWING COSTS:
Borrowing costs attributable to the acquisition/construction of
qualifying assets are capitalized and form part of the cost of the
qualifying assets. A qualifying asset is an asset that necessarily
takes a substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue as an expense.
17 PROVISIONS AND CONTINGENCIES:
A provision is recognised when the Company has a present 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 a
reliable estimate can be made. Provisions are not discounted to present
value and are determined based on best estimate required to settle the
obligation at Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.
Contingent assets and liabilities are not recognised.
18 RESEARCH AND DEVELOPMENT:
Revenue expenses on Research and Development is recognised as an
expenses in the year in which it is incurred and expenditure on capital
assets is depreciated over the useful life of an assets.
19 LEASES:
Lease payments for assets taken on operating lease are recognised in
the Statement of Profit and Loss over the lease term.
20 MATERIAL EVENTS:
Material events occurring after the balance sheet date are taken into
cognizance.
Mar 31, 2014
1. Method of Accounting:
The Financial Statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards and
the relevant provisions of the Companies Act, 1956. Further, the
Company follows the mercantile system of accounting and recognises
income and expenditure on accrual basis except in the case of
significant uncertainties.
2. Use of Estimates:
The preparation of financial statements require estimates and
assumptions to be made that affects the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known/materialised.
3. Inflation:
Assets and Liabilities are recorded at historical cost to the Company.
These costs are not adjusted to reflect the changing value of the
purchasing power of money.
4. Fixed Assets:
Fixed assets are stated at cost of acquisition which includes taxes,
duties and other identifiable direct expenses net of modvat credit
availed less accumulated depreciation and amortisation.
5. Depreciation and Amortization:
Depreciation is provided on pro-rata basis at the written down value
method as per the rates prescribed in Schedule XIV of the Companies
Act, 1956. However, in the case of Leasehold Land, depreciation has
been provided on pro-rata basis using the straight line method over the
period of the lease.
6. Intangible Assets:
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/ depletion. All costs, including
financing costs till commencement of commercial production, net charges
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalised.
7. Investments:
Long Term investments are stated at the cost of acquisition, except
where there is diminution in value other than temporary, in which case
the carrying value is reduced to recognize the decline. Current
Investments are stated at the cost of acquisition or fair value,
whichever is lower.
8. Inventories:
Inventories are measured at lower of cost and net realisable value
after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other cost
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of raw materials,
work-in-progress, packing materials, trading and other products are
determined on first-in-first-out basis.
9. Foreign Currency Transactions:
(i) All transactions in foreign currency are recorded at the rates of
exchange prevailing on the dates when the relevant transactions take
place.
(ii) Monetary items in the form of Loans, Current Assets and Current
Liabilities in foreign currency, outstanding at the close of the year,
are converted in Indian Currency at the appropriate rates of exchange
prevailing on the date of the Balance Sheet. The resultant gain or loss
is accounted during the year.
(iii) In respect of Forward Exchange contracts entered into to hedge
foreign currency risks, the difference between the forward rate and
exchange rate at the inception of the contract is recognized as income
or expense over the life of the contract. Further, the exchange
differences arising on such contracts are recognised as income or
expense along with the exchange differences on the underlying
assets/liabilities.
10. Revenue Recognition:
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, excise duty, adjustment
for discounts (net), taxes and foreign exchange gain/loss on
corresponding hedge contract. Dividend income is recognized when the
right to receive is established. Interest income is recognized on time
proportion basis taking into account the amount outstanding and rate
applicable.
11. Retirement Benefits:
Contribution to provident fund is charged to the Statement of Profit
and Loss as incurred. The liability for payment of gratuity is covered
through the Group Gratuity Scheme. Gratuity and Leave encashment
benefits are accounted for based on actuarial valuations.
12. Taxation:
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made on the current tax rates based
on the assessable income. The Company provides for deferred tax based
on the tax effect of timing differences resulting from the recognition
of items in the financial statements and in estimating its current tax
provision. Deferred tax assets are recognized where there is certainty
that there will be sufficient future taxable income available against
which such deferred tax assets can be realized.
Provision for wealth tax is made based on the taxable assets.
13. Impairment of Assets:
At each Balance Sheet date, the Company reviews the carrying amounts of
its assets to determine whether there is any indication that those
assets suffered any impairment loss. If any such indication exists, the
recoverable amount of the asset 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 the value in
use, the estimated future cash flows expected from the continuing use
of the asset and from its disposal are discounted to its present value
using a discount rate that reflects the current market assessment of
the time value of money and the risks specific to the asset. An
impairment loss is recognised whenever the carrying amount of an asset
exceeds its recoverable amount. Reversal of impairment loss is
recognised immediately as income in the Statement of Profit and Loss.
14. Sundry Debtors and Loans and Advances:
Sundry debtors and loans and advances are stated after making adequate
provisions for doubtful balances.
15. Borrowing Costs:
Borrowing costs attributable to the acquisition/construction of
qualifying assets are capitalized and form part of the cost of the
qualifying assets. A qualifying asset is an asset that necessarily
takes a substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue as an expense.
16. Provisions and Contingencies:
A provision is recognised when the Company has a present 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 a
reliable estimate can be made. Provisions are not discounted to present
value and are determined based on best estimate required to settle the
obligation at Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.
Contingent assets and liabilities are not recognised.
17. Research and Development:
Revenue expenses on Research and Development is recognised as an
expenses in the year in which it is incurred and expenditure on capital
assets is depreciated over the useful life of the assets.
18. Material Events:
Material events occurring after the balance sheet date are taken into
cognizance.
19. Other Accounting Policies:
These are consistent with the generally accepted accounting principles.
Mar 31, 2013
1. Method of Accounting:
The Financial Statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards and
the relevant provisions of the Companies Act, 1956. Further, the
Company follows the mercantile system of accounting and recognises
income and expenditure on accrual basis except in the case of
significant uncertainties.
2. Use of Estimates:
The preparation of financial statements require estimates and
assumptions to be made that affects the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known/materialised.
3. Inflation:
Assets and Liabilities are recorded at historical cost to the Company.
These costs are not adjusted to reflect the changing value of the
purchasing power of money.
4. Fixed Assets:
Fixed assets are stated at cost of acquisition which includes taxes,
duties and other identifiable direct expenses net of modvat credit
availed less accumulated depreciation and amortisation.
5. Depreciation and Amortization:
Depreciation is provided on pro-rata basis at the written down value
method as per the rates prescribed in Schedule XIV of the Companies
Act, 1956. However, in the case of Leasehold Land, depreciation has
been provided on pro-rata basis using the straight line method over the
period of the lease.
6. Intangible Assets:
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/ depletion. All costs, including
financing costs till commencement of commercial production, net charges
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalised.
7. Investments:
Long Term investments are stated at the cost of acquisition, except
where there is diminution in value other than temporary, in which case
the carrying value is reduced to recognize the decline. Current
Investments are stated at the cost of acquisition or fair value,
whichever is lower.
8. Inventories:
Inventories are measured at lower of cost and net realisable value
after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other cost
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of raw materials,
work-in-progress, packing materials, trading and other products are
determined on first-in-first-out basis.
9. Foreign Currency Transactions:
(i) All transactions in foreign currency are recorded at the rates of
exchange prevailing on the dates when the relevant transactions take
place.
(ii) Monetary items in the form of Loans, Current Assets and Current
Liabilities in foreign currency, outstanding at the close of the year,
are converted in Indian Currency at the appropriate rates of exchange
prevailing on the date of the Balance Sheet. The resultant gain or loss
is accounted during the year.
(iii) In respect of Forward Exchange contracts entered into to hedge
foreign currency risks, the difference between the forward rate and
exchange rate at the inception of the contract is recognized as income
or expense over the life of the contract. Further, the exchange
differences arising on such contracts are recognised as income or
expense along with the exchange differences on the underlying
assets/liabilities.
10. Revenue Recognition:
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, excise duty, adjustment
for discounts (net), taxes and foreign exchange gain/loss on
corresponding hedge contract. Dividend income is recognized when the
right to receive is established. Interest income is recognized on time
proportion basis taking into account the amount outstanding and rate
applicable.
11. Retirement Benefits:
Contribution to provident fund is charged to the Statement of Profit
and Loss as incurred. The liability for payment of gratuity is covered
through the Group Gratuity Scheme. Gratuity and Leave encashment
benefits are accounted for based on actuarial valuations.
12. Taxation:
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made on the current tax rates based
on the assessable income. The Company provides for deferred tax based
on the tax effect of timing differences resulting from the recognition
of items in the financial statements and in estimating its current tax
provision. Deferred tax assets are recognized where there is certainty
that there will be sufficient future taxable income available against
which such deferred tax assets can be realized.
Provision for wealth tax is made based on the taxable assets.
13. Impairment of Assets:
At each Balance Sheet date, the Company reviews the carrying amounts of
its assets to determine whether there is any indication that those
assets suffered any impairment loss. If any such indication exists, the
recoverable amount of the asset 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 the value in
use, the estimated future cash flows expected from the continuing use
of the asset and from its disposal are discounted to its present value
using a discount rate that reflects the current market assessment of
the time value of money and the risks specific to the asset. An
impairment loss is recognised whenever the carrying amount of an asset
exceeds its recoverable amount. Reversal of impairment loss is
recognised immediately as income in the Statement of Profit and Loss.
14. Sundry Debtors and Loans and Advances:
Sundry debtors and loans and advances are stated after making adequate
provisions for doubtful balances.
15. Borrowing Costs:
Borrowing costs attributable to the acquisition/construction of
qualifying assets are capitalized and form part of the cost of the
qualifying assets. A qualifying asset is an asset that necessarily
takes a substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue as an expense.
16. Provisions and Contingencies:
A provision is recognised when the Company has a present 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 a
reliable estimate can be made. Provisions are not discounted to present
value and are determined based on best estimate required to settle the
obligation at Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.
Contingent assets and liabilities are not recognised.
17. Research and Development:
Revenue expenses on Research and Development is recognised as an
expenses in the year in which it is incurred and expenditure on capital
assets is depreciated over the useful life of the assets.
18. Material Events:
Material events occurring after the balance sheet date are taken into
cognizance.
19. Other Accounting Policies:
These are consistent with the generally accepted accounting principles.
Mar 31, 2012
1. Method of Accounting:
The Financial Statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards and
the relevant provisions of the Companies Act, 1956. Further, the
Company follows the mercantile system of accounting and recognises
income and expenditure on accrual basis except in the case of
significant uncertainties.
2. Use of Estimates:
The preparation of financial statements require estimates and
assumptions to be made that affects the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. Difference between
the actual results and estimates are recognised in the period in which
the results are known/materialised.
3. Inflation:
Assets and Liabilities are recorded at historical cost to the Company.
These costs are not adjusted to reflect the changing value of the
purchasing power of money.
4. Fixed Assets:
Fixed assets are stated at cost of acquisition which includes taxes,
duties and other identifiable direct expenses net of modvat credit
availed less accumulated depreciation and amortisation.
5. Depreciation:
Depreciation is provided on a pro-rata basis at the written down value
method as per the rates prescribed in Schedule XIV of the Companies
Act, 1956. However, in the case of Leasehold Land, depreciation has
been provided on pro-rata basis using the straight line method over the
period of the lease.
6. Investments:
Long Term investments are stated at the cost of acquisition, except
where there is diminution in value other than temporary in which case
the carrying value is reduced to recognize the decline. Current
Investments are stated at the cost of acquisition or fair value,
whichever is lower.
7. Inventories:
Inventories are measured at lower of cost and net realisable value
after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other cost
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of raw materials,
work-in-progress, packing materials, trading and other products are
determined on first-in-first-out basis.
8. Foreign Currency Transactions:
(i) All transactions in foreign currency are recorded at the rates of
exchange prevailing on the dates when the relevant transactions take
place.
(ii) Monetary items in the form of Loans, Current Assets and Current
Liabilities in foreign currency, outstanding at the close of the year,
are converted in Indian Currency at the appropriate rates of exchange
prevailing on the date of the Balance Sheet. Resultant gain or loss is
accounted during the year.
(iii) In respect of Forward Exchange contracts entered into to hedge
foreign currency risks, the difference between the forward rate and
exchange rate at the inception of the contract is recognized as income
or expense over the life of the contract. Further, the exchange
differences arising on such contracts are recognised as income or
expense along with the exchange differences on the underlying assets/
liabilities.
9. Revenue Recognition:
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, excise duty, adjustment
for discounts (net), taxes and foreign exchange gain/loss on
corresponding hedge contract. Dividend income is recognized when the
right to receive is established. Interest income is recognized on time
proportion basis taking into account the amount outstanding and rate
applicable.
10. Retirement Benefits:
Contribution to provident fund is charged to the Statement of Profit
and Loss as incurred. The liability for payment of gratuity is covered
through the Group Gratuity Scheme. Gratuity and Leave encashment
benefits are accounted for based on actuarial valuations.
11. Taxation:
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made on the current tax rates based
on the assessable income. The Company provides for deferred tax based
on the tax effect of timing differences resulting from the recognition
of items in the financial statements and in estimating its current tax
provision. Deferred tax assets are recognized where there is certainty
that there will be sufficient future taxable income available against
which such deferred tax assets can be realized.
Provision for wealth tax is made based on the taxable assets.
12. Impairment of Assets:
At each Balance Sheet date, the Company reviews the carrying amounts of
its assets to determine whether there is any indication that those
assets suffered any impairment loss. If any such indication exists, the
recoverable amount of the asset 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 the value in
use, the estimated future cash flows expected from the continuing use
of the asset and from its disposal are discounted to its present value
using a discount rate that reflects the current market assessment of
the time value of money and the risks specific to the asset. An
impairment loss is recognised whenever the carrying amount of an asset
exceeds its recoverable amount.
Reversal of impairment loss is recognised immediately as income in the
Statement of Profit and Loss.
13. Sundry Debtors and Loans and Advances:
Sundry debtors and loans and advances are stated after making adequate
provisions for doubtful balances.
14. Borrowing Costs:
Borrowing costs attributable to the acquisition/ construction of
qualifying assets are capitalized and form part of the cost of the
qualifying assets. A qualifying asset is an asset that necessarily
takes a substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue as an expense.
15. Provisions and Contingencies:
A provision is recognised when the Company has a present 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 a
reliable estimate can be made. Provisions are not discounted to present
value and are determined based on best estimate required to settle the
obligation at Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.
Contingent assets and liabilities are not recognised.
16. Material Events:
Material events occurring after the Balance Sheet date are taken into
cognizance.
17. Other Accounting Policies:
These are consistent with the generally accepted accounting principles.
Mar 31, 2011
1. Method of Accounting:
The Financial Statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards and
the relevant provisions of the Companies Act, 1956. Further, the
Company follows the mercantile system of accounting and recognises
income and expenditure on accrual basis except in the case of
significant uncertainties.
2. Inflation:
Assets and Liabilities are recorded at historical cost to the Company.
These costs are not adjusted to reflect the changing value of the
purchasing power of money.
3. Fixed Assets:
Fixed assets are stated at cost of acquisition which includes taxes,
duties and other identifiable direct expenses net of modvat credit
availed less accumulated depreciation.
4. Depreciation:
Depreciation is provided on a pro-rata basis at the written down value
method as per the rates prescribed in Schedule XIV of the Companies
Act, 1956. However, in the case of Leasehold Land, depreciation has
been provided on pro-rata basis using the straight line method over the
period of the lease.
5. Investments:
Long Term investments are stated at the cost of acquisition, except
where there is diminution in value other than temporary in which case
the carrying value is reduced to recognize the decline. Current
Investments are stated at the cost of acquisition or fair value,
whichever is lower.
6. Inventories:
Raw Materials and Packing Materials are stated at cost net of modvat
credit and sales tax setoff. Work in process and Finished Goods include
indirect production overheads. Finished goods lying in the factory are
valued inclusive of excise duty payable thereon. Finished goods are
valued at lower of cost or net realisable value.
7. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate
prevailing at the date of the transaction. Assets and liabilities
denominated in foreign currency are translated into rupees at the
exchange rate prevailing on the date of the Balance Sheet. Gain or loss
in the exchange rate is accounted on payment or realisation basis.
8. Sales:
Sale of products is recognized at the point of dispatch to the
customer. Gross Sales are inclusive of excise duty and exclusive of
taxes.
9. Retirement Benefits:
Contribution to provident fund is charged to the Profit & Loss Account
as incurred. The liability for payment of gratuity is covered through
the Group Gratuity Scheme. Gratuity and Leave encashment benefits are
accounted for based on actuarial valuations.
10. Taxation:
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made on the current tax rates based
on the assessable income. The Company provides for deferred tax based
on the tax effect of timing differences resulting from the recognition
of items in the financial statements and in estimating its current tax
provision. Deferred tax assets are recognized where there is certainty
that there will be sufficient future taxable income available against
which such deferred tax assets can be realized.
Provision for wealth tax is made based on the taxable assets.
11. Impairment of Assets:
At each Balance Sheet date, the Company reviews the carrying amounts of
its assets to determine whether there is any indication that those
assets suffered any impairment loss. If any such indication exists, the
recoverable amount of the asset 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 the value in
use, the estimated future cash flows expected from the continuing use
of the asset and from its disposal are discounted to its present value
using a discount rate that reflects the current market assessment of
the time value of money and the risks specific to the asset. An
impairment loss is recognised whenever the carrying amount of an asset
exceeds its recoverable amount. Reversal of impairment loss is
recognised immediately as income in the Profit & Loss Account.
12. Sundry Debtors and Loans and Advances:
Sundry debtors and loans and advances are stated after making adequate
provisions for doubtful balances.
13. Borrowing Costs:
Borrowing costs attributable to the acquisition/construction of
qualifying assets are capitalized and form part of the cost of the
qualifying assets. A qualifying asset is an asset that necessarily
takes a substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue as an expense.
14. Provisions and Contingencies:
A provision is recognised when the Company has a present 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 a
reliable estimate can be made. Provisions are not discounted to present
value and are determined based on best estimate required to settle the
obligation at Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.
Contingent assets and liabilities are not recognised.
15. Material Events:
Material events occurring after the Balance Sheet date are taken into
cognizance.
16. Other Accounting Policies:
These are consistent with the generally accepted accounting practices.
Mar 31, 2010
1. Method of Accounting:
The Financial Statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards and
the relevant provisions of the Companies Act, 1956. Further, the
Company follows the mercantile system of accounting and recognises
income and expenditure on accrual basis except in the case of
significant uncertainties.
2. Inflation:
Assets and Liabilities are recorded at historical cost to the Company.
These costs are not adjusted to reflect the changing value of the
purchasing power of money.
3. Fixed Assets:
Fixed assets are stated at cost of acquisition which includes taxes,
duties and other identifiable direct expenses net of modvat credit
availed less accumulated depreciation.
4. Depreciation:
Depreciation is provided on a pro-rata basis at the written down value
method as per the rates prescribed in Schedule XIV of the Companies
Act, 1956. However, in the case of Leasehold Land, depreciation has
been provided on pro-rata basis using the straight line method over the
period of the lease.
5. Investments:
Long Term investments are stated at the cost of acquisition, except
where there is diminution in value other than temporary in which case
the carrying value is reduced to recognize the decline. Current
Investments are stated at the cost of acquisition or fair value,
whichever is lower.
6. Inventories:
Raw Materials and Packing Materials are stated at cost net of modvat
credit and sales tax setoff. Work in process and Finished Goods include
indirect production overheads. Finished goods lying in the factory are
valued inclusive of excise duty payable thereon. Finished goods are
valued at lower of cost or net realisable value.
7. Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate
prevailing at the date of the transaction. Assets and liabilities
denominated in foreign currency are translated into rupees at the
exchange rate prevailing on the date of the Balance Sheet. Gain or loss
in the exchange rate is accounted on payment or realisation basis.
8. Sales:
Sale of products is recognized at the point of dispatch to the
customer. Gross Sales are inclusive of excise duty and exclusive of
taxes.
9. Retirement Benefits:
Contribution to provident fund is charged to the Profit & Loss Account
as incurred. The liability for payment of gratuity is covered through
the Group Gratuity Scheme. Gratuity and Leave encashment benefits are
accounted for based on actuarial valuations.
10. Taxation:
Provision for income tax is made for both current and deferred taxes.
Provision for current income tax is made on the current tax rates based
on the assessable income. The Company provides for deferred tax based
on the tax effect of timing differences resulting from the recognition
of items in the financial statements and in estimating its current tax
provision. Deferred tax assets are recognized where there is certainty
that there will be sufficient future taxable income available against
which such deferred tax assets can be realized.
Provision for wealth tax is made based on the taxable assets.
Provision for fringe benefit tax is made based on the fringe benefits
provided during the year.
11. Impairment of Assets:
At each Balance Sheet date, the Company reviews the carrying amounts of
its assets to determine whether there is any indication that those
assets suffered any impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in 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 the value in
use, the estimated future cash flows expected from the continuing use
of the asset and from its disposal are discounted to its present value
using a discount rate that reflects the current market assessment of
the time value of money and the risks specific to the asset. An
impairment loss is recognised whenever the carrying amount of an asset
exceeds its recoverable amount. Reversal of impairment loss is
recognised immediately as income in the Profit & Loss Account.
12. Sundry Debtors and Loans and Advances:
Sundry debtors and loans and advances are stated after making adequate
provisions for doubtful balances.
13. Borrowing Costs:
Borrowing costs attributable to the acquisition / construction of
qualifying assets are capitalized and form part of the cost of the
qualifying assets. A qualifying asset is an asset that necessarily
takes a substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue as an expense.
14. Provisions and Contingencies:
A provision is recognised when the Company has a present 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 a
reliable estimate can be made. Provisions are not discounted to present
value and are determined based on best estimate required to settle the
obligation at Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.
Contingent assets and liabilities are not recognised.
15. Material Events:
Material events occurring after the balance sheet date are taken into
cognizance.
16. Other Accounting Policies:
These are consistent with the generally accepted accounting practices.
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