Mar 31, 2014
1.1 Basis of preparation of Financial statements:
a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 2013 as adopted
consistently by the Company. There is no change in the accounting
policies as compared to the preceding year.
b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis, if determinable.
1.2 Fixed Assets and Capital work-in-progress
a) Tangible assets are stated at their original cost of acquisition
including taxes, duties, freight, and other incidental expenses related
to acquisition and installation of the concerned assets less
accumulated depreciation and impairment losses, if any.
b) Subsequent expenditure related to an item of tangible asset is added
to its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day to day
repair and maintenance expenditure are charged to the statement of
profit and loss for the period during which such expenses are incurred.
c) Pre-operative expenses including eligible borrowing cost incurred
during construction period are charged to Capital Work-in-Progress and
on completion, the cost is allocated to the respective fixed assets in
the year of commencement of commercial production.
d) Capital work-in-progress comprises cost of fixed assets that are not
yet ready for their intended use at the balance sheet date.
1.3 Intangible Assets:
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization/Depletion. All costs, including
financing costs till commencement of commercial production, net changes
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalized.
1.4 Depreciation and Amortization:
In respect of Fixed Assets, depreciation is provided Block wise on
Straight Line Method in accordance with the provisions of schedule XIV
of the Companies Act, 1956. Depreciation on fixed assets added/disposed
off during the year is provided on pro-rata basis.
1.5 Impairment of Asset:
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, the company subjects such assets
to a test of recoverability, based on discounted cash flows expected
from use or disposal thereof. If the assets are impaired, the company
recognizes an impairment loss as a difference between the carrying
value and fair value net of cost of sale in accordance with AS-28
"Impairment of Assets", issued by the Institute of Chartered
Accountants Of India. None of the company''s fixed assets are considered
for impairment as on the Balance Sheet date.
1.6 Inventory:
(i) Raw materials, consumables stores and spares are valued at lower of
cost and net realizable value. Work in progress and finished goods are
valued at lower of cost and net realizable value.
(ii) The costs of work in progress and finished goods include costs of
raw material, conversion cost and other costs incurred in bringing the
inventories to their present location and condition. Cost of
inventories is computed on weighted average/FIFO/specific
identification, as applicable.
1.7 Cash Flow Statement:
a) The statement has been prepared under indirect method except in case
of dividends, sale/purchase of investments and taxes which have been
considered on the basis of actual movement of case, with corresponding
adjustments in assets and liabilities as set out in the Accounting
Standard 3 issued by ICAI.
b) Cash and Cash equivalents represent Cash and Bank balances only.
1.8 (i) Foreign Currency Transactions:
All income or expense on account of exchange difference between the
date of transaction and on settlement date or translation is recognized
in the Profit & Loss account as income or expense except in cases where
they relate to the acquisition of fixed assets.
(ii) Conversion and exchange differences
Monetary Assets and Liabilities denominated in foreign currency are
translated at the rate of exchange at the Balance Sheet date and
resultant gain or loss is recognized in the Statement of Profit and
Loss. Non monetary assets and liabilities denominated in foreign
currency are carried at historical cost using the exchange rate at the
date of transaction.
(iii) Forward exchange contracts
The premium or discount arising at the inception of forward exchange
contract is amortized and recognized as an expense/income over the life
of the contract. Exchange differences on such contracts are recognized
in the Statement of Profit and Loss in the period in which the exchange
rates change.
1.9 Provisions and Contingencies:
The company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
1.10 Revenue Recognition:
Sales of goods are recognized at the point of dispatch of Finished
Goods to Customers net of returns.
1.11 Retirement Benefits:
Provision of gratuity has been made in the books but there is no amount
of leave encashment or any other retirement benefits for which the
company may be made liable to pay. Hence no provision for the same has
been made, except provision for the gratuity as on the date of Balance
sheet.
1.12 Prior Period Items:
Prior Period expenses, if any significant, are charged to Profit and
Loss Account and shown in Notes to Accounts.
1.13 Borrowing Costs:
Borrowing cost attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such asset
up to the date when such asset is ready for its intended use. Other
borrowing costs are charged to the Profit & Loss account.
1.14 Preliminary Expenses:
Preliminary expenses are amortized over a period of five (5) years.
1.15 Taxation:
Tax expense for the year comprises of current tax and deferred tax.
i) Current tax is determined on the amount of tax payable in respect of
taxable income for the period, using the applicable tax rates and tax
laws in accordance with the provisions of Income Tax Act 1961. The
Company is eligible for deduction under section 80-IC of Income Tax
Act, 1961 in respect of income of the Unit situated in Roorkee
(Uttarakhand).
ii)Deferred tax is recognized, subject to consideration of prudence, on
timing differences, being difference between taxable and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax is accounted for using the tax
rates and laws that have been enacted or substantively enacted as on
the Balance Sheet date.
1.16 Other Accounting Policies
Accounting policies not referred to otherwise are consistent with
generally accepted Accounting principles.
Mar 31, 2013
1.1 Basis of preparation of Financial statements :
a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 as adopted
consistently by the Company. There is no change in the accounting
policies as compared to the preceding year.
b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis, if determinable.
1.2 Fixed Assets and Capital work-in-progress
a) Tangible assets are stated at their original cost of acquisition
including taxes, duties, freight, and other incidental expenses related
to acquisition and installation of the concerned assets less
accumulated depreciation and impairment losses, if any.
b) Subsequent expenditure related to an item of tangible asset is added
to its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day to day
repair and maintenance expenditure are charged to the statement of
profit and loss for the period during which such expenses are incurred.
c) Pre-operative expenses including eligible borrowing cost incurred
during construction period are charged to Capital Work-in-Progress and
on completion, the cost is allocated to the respective fixed assets in
the year of commencement of commercial production.
d) Capital work-in-progress comprises cost of fixed assets that are not
yet ready for their intended use at the balance sheet date.
1.3 Intangible Assets:
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization /Depletion. All costs, including
financing costs till commencement of commercial production, net changes
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are capitalized.
1.4 Depreciation and Amortization:
In respect of Fixed Assets, depreciation is provided Block wise on
Straight Line Method in accordance with the provisions of schedule XIV
of the Companies Act, 1956. Depreciation on fixed assets added/disposed
off during the year is provided on pro-rata basis.
1.5 Impairment of Asset:
Wherever events or changes in circumstances indicate that the carrying
value of fixed assets may be impaired, the company subjects such assets
to a test of recoverability, based on discounted cash flows expected
from use or disposal thereof. If the assets are impaired, the company
recognizes an impairment loss as a difference between the carrying
value and fair value net of cost of sale in accordance with AS-28
"Impairment of Assets", issued by the Institute of Chartered
Accountants Of India. None of the company''s fixed assets are
considered for impairment as on the Balance Sheet date.
1.6 Inventory:
(i) Raw materials, consumables stores and spares are valued at lower of
cost and net realizable value. Work in progress and finished goods are
valued at lower of cost and net realizable value.
(ii) The costs of work in progress and finished goods include costs of
raw material, conversion cost and other costs incurred in bringing the
inventories to their present location and condition. Cost of
inventories is computed on weighted average/FIFO/specific
identification, as applicable.
1.7 Cash Flow Statement:
a) The statement has been prepared under indirect method except in case
of dividends, sale / purchase of investments and taxes which have been
considered on the basis of actual movement of case, with corresponding
adjustments in assets and liabilities as set out in the Accounting
Standard 3 issued by ICAI.
1.9 Provisions and Contingencies:
The company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
The Company has given a corporate guarantee of Rs. 9 crores in on
behalf of M/s Apis India Incorporated, a proprietorship firm.
1.10 Revenue Recognition :
Sales of goods are recognized at the point of dispatch of Finished
Goods to Customers net of returns.
1.11 Retirement Benefits:
There is no amount of gratuity liability or leave encashment or any
other retirement benefits for which the company may be made liable to
pay. Hence no provision for the same has been made as on the date of
Balance sheet.
1.12 Prior Period Items:
Prior Period expenses, if any significant, are charged to Profit and
Loss Account and shown in Notes to Accounts.
1.13 Borrowing Costs:
Borrowing cost attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such asset
up to the date when such asset is ready for its intended use. Other
borrowing costs are charged to the Profit & Loss account.
1.14 Preliminary Expenses:
Preliminary expenses are amortized over a period of five (5) years.
1.15 Taxation:
Tax expense for the year comprises of current tax and deferred tax.
i) Current tax is determined on the amount of tax payable in respect of
taxable income for the period, using the applicable tax rates and tax
laws in accordance with the provisions of Income Tax Act 1961. The
Company is eligible for deduction under section 80-IC of Income Tax
Act, 1961 in respect of income of the new Unit situated in Roorkee
(Uttarakhand) which started its commercial production in March 2012.
ii) Deferred tax is recognized, subject to consideration of prudence,
on timing differences, being difference between taxable and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax is accounted for using the tax
rates and laws that have been enacted or substantively enacted as on
the Balance Sheet date.
1.16 Other Accounting Policies
Accounting policies not referred to otherwise are consistent with
generally accepted Accounting principles.
Mar 31, 2010
A. Basis of Preparation of financial statements
1) The Financial statements have been prepared under the historical
cost convention and in accordance with the normally accepted accounting
principles, mandatory accounting stan- dards and the provisions of the
Companies Act, 1956, as adopted consistently by the com- pany.
2) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
3) The preparation of financial statements requires the management to
make estimates and assumptions considered in the reported amounts of
assets and liabilities including the dis- closure of contingent
liabilities as of the date of the financial statements and the reported
income and expenses during the reporting period. Management believes
that the estimates used in preparation of the financial statements are
prudent and reasonable. Actual results could vary from these estimates.
Any revision to accounting estimates is recognised in the period in
which the results are known / materialized.
B. Fixed Assets
1) Fixed assets are stated at cost of acquisition less accumulated
depreciation.
2) Depreciation on fixed assets is provided on straight line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
3) Impairment is done when carrying cost of the assets exceeds its
recoverable amount; im- pairment loss is charged to the profit and loss
account in the year in which the assets are identified as impaired. An
impairment loss recognized in prior accounting periods is reversed if
there has been change in the estimate of the recoverable amount.
C. Sales
Sales of goods are recognized at the point of dispatch of Finished
Goods to customers but net of returns.
D. Inventories
1) Raw materials, Components, Stores and spares, packing materials and
work-in-progress are val- ued at cost.
2) Finished Goods are valued at cost or market price whichever is less.
E. Employment & Retirement Benefits
Contributions are made under the relevant rules/statues for provident
fund and family pension fund which are charged to the profit and loss
account on accrual basis. The liability for gratuity, leave with wages
& Bonus not been provided by the company.
F. Preliminary Expenses
Preliminary expenses are amortized over a period of five years.
G. Foreign Currency Transactions
All income or expenses on account of exchange difference between the
date of transaction and on settlement date or translation is recognized
in the profit and loss account as income or expense except in cases
where they relate to the acquisition of the fixed assets.
H. Taxation
1) In view of previous year losses, provision for previous years been
made for MAT payable U/s 115 JB, whereas current tax applicable at
Normal Rate adjusting previous years MAT Credit.
2) Deferred Tax resulting from Ãtiming differenceà between book profit
and taxable profit accounted for using the tax rates and laws that have
been enacted or substantively enacted as on the balance sheet date. The
deferred tax assets is recognized and carried forward only to extent
that there is a reasonable certainty that the assets will be realized
in future.