Mar 31, 2014
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
Section 211(3C) of the Companies Act, 1956 ("the 1960 Act") (which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated
13 September, 2013 of the Ministry of Corporate Affairs, Government of
lndia) and the relevant provisions of the 1956 Act/2013 Act, as
applicable. The financial statements are prepared under the historical
cost convention on going concern and on accrual basis.The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year.
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.
3. REVENUE RECOGNITION
i. Revenue from the sale of goods is recognised in the statement of
profit and loss when the significant risks and rewards of ownership
have been transferred to the buyer. Revenue includes consideration
received or receivable, excise duty, but net of discounts and other
sales related taxes.
ii. Dividend income is recognized when the company''s right to receive
dividend is established, interest Income is recognized on a time
proportion basis based on the amount outstanding and the rate
applicable.
iii. Other Incomes are generally accounted on accrual basis as they are
earned.
4. FIXED ASSETS
Tangible and intangible fixed assets are stated at cost of acquisition
(net of CENVAT, wherever applicable), less accumulated depreciation.
Cost is inclusive of freight, duties, levies and any directly
attributable cost of bringing the assets to their working condition for
intended use. Direct costs are capitalized till the assets are ready to
be put to use. Interest on borrowings; wherever applicable,
attributable to new projects is capitalized and included in the cost of
fixed assets as appropriate.
5. DEPRECIATION AND AMORTIZATION
Depreciation in respect of Fixed Assets, is provided adopting Straight
Line Method over the useful life of the Assets as estimated by the
Management. Depreciation for assets purchased/sold during the period
is proportionately charged.
6. INVENTORIES
i. Raw Materials are valued at cost comprising purchase price,
freight and handling, non refundable taxes and duties and other
directly attributable costs
ii. Finished Products are valued at lower of cost and net realizable
value.
iii.Scrap & By Products are valued at net realizable value.
iv. Stores and Spares are valued at cost comprising of purchase price,
freight and handling, non refundable taxes and duties and other
directly attributable costs.
7. EMPLOYEE BENEFITS
i. Short Term Employee Benefits : Benefits payable to employees within
12 months of rendering services such as wages, salaries, bonus, paid
annual leave, etc are classified as Short Term Employee Benefits and
are recognized in the period in which the employee renders related
services
ii. Long Term/Post Employment/Termlnatiort Benefits The Company
has taken an Employees Group Gratuity of LIC for meeting out the
liability of Gratuity Premium paid is debited as and when due.
Actuarial Valuation is also kept in view for determining the
liabilities, if any. Leave Encashment, if any, is accounted for on
accrual basis.
iii. Provident Fund : On the basis of payments/contributions made to
the concerned Provident Fund authorities.
8. INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value.
Long Term investments are stated at cost. Provision for diminution in
the value of long-term investments is made only if such a decline is
other than temporary.
9. CASH AND CASH EQUIVALENTS
Cash comprises of cash on hand and demand deposits with Bank. Cash
Equivalents'' are short term, highly liquid investment, that are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
10. EXPENDITURE
Expenses are accounted on the accrual basis and provisions are made for
all known losses and liabilities.
11. TAXATION
Deferred Tax is recognized, subject to the consideration of prudence in
respect of deferred tax, assets or liabilities, on timing differences,
being the difference between taxable income and accounting income that
originate in one period, and is reversible in one or more subsequent
periods.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in the future;
however where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets and are reviewed for the
appropriateness of their respective carrying values at each reporting
date.
Income Taxes are accrued in the same period the related revenue and
expenses arise. A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances and
exemptions Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
Alternate Tax (MAT) paid in accordance with the tax laws, which gives
rise to future economic benefits in the form of tax credit against
future income tax liability is recognized as an asset in the Balance
Sheet if there is convincing evidence that the company will pay normal
tax in future and the resultant asset can be measured reliably.
12. IMPAIRMENT
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value An impairment loss, if any, is charged to
the Statement of Profit and Loss in the period in which an asset is
identified as impaired.The impairment loss, if any, recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount
13. BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
of qualifying assets are capitalized as part of the cost of such assets
till such time the. asset is ready for its intended use or sale. 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 recognized as an expense in the statement of profit and loss
in the period in which they are incurred.
14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when the Company has a present obligation as
a result of past events; 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.
Contingent Liability is disclosed in case of a present obligation
arising from past events when it is not probable that an outflow of
resources will be required to settle the obligation, or a present
obligation when no reliable estimate is possible, or a possible
obligation arising from past events where the probability of outflow of
resources is remote.
Contingent Assets are neither recognized nor disclosed,
15. EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET
Material events occurring after date of Balance Sheet are taken into
cognizance.
16. CASH FLOW STATEMENT
Cash Flows are reported using the indirect method, whereby profit/loss
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The Cash Flows from regular revenue generating; financing
and investing activities of the company are segregated.
17. EARNING PER SHARE
The company reports basic and diluted earnings per share in accordance
with Accounting Standard (AS-20) - Earnings per Share. Basic earnings
per equity share have been computed by dividing net profit/loss after
tax attributable to equity share holders by the weighted average
numbers of equity shares outstanding during the year. Diluted earnings
during the year adjusted for the effects of all dilutive potential
equity shares per share is computed using the weighted average number
of equity shares and dilutive potential equity shares outstanding
during the year.
18. SEGMENT INFORMATION
The company is engaged primarily in the business of Rigid PVC Pipes.
The production facility is located at one place and the business is
fully concentrated in India. As the basic of nature of these activities
are governed by the same set of risks and returns, these have been
grouped as a single business segment. Accordingly, segment reporting
disclosure as envisaged in Accounting Standard (AS-17)
"Segment Reporting", issued by the Institute of Chartered Accountants
of India, is not applicable to the Company.
Mar 31, 2013
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 historical cost convention
and going concern basis. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year.
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 recognized in the periods in which
the results are known/ materialize.
3. REVENUE RECOGNITION
L Revenue from the sale of goods is recognized in the statement of
profit and loss when the significant risks and rewards of ownership
have been transferred to the buyer. Revenue includes consideration
received or receivable, excise duty but net of discounts and other
sales related taxes.
ii. Dividend Income is recognized when the company''s right to
receive dividend is established. Interest Income is recognized on a
time proportion basis based on the amount outstanding and the rate
applicable.
iii. Other Incomes are generally accounted on accrual basis as they are
earned.
4. FIXED ASSETS
Tangible and intangible fixed assets are stated at cost of acquisition
(net of CENVAT wherever applicable), less accumulated depreciation.
Cost is inclusive of freight, duties, levies and any directly
attributable cost of bringing the assets to their working condition for
intended use. Direct costs are capitalized till the assets are ready
to be put to use. Interest on borrowings, wherever applicable,
attributable to new projects is capitalized and included in the cost of
fixed assets as appropriate.
5. DEPRECIATION AND AMORTIZATION
Depreciation in respect of Fixed Assets, is provided adopting Straight
Line Method over the useful life of the Assets as estimated by the
Management. Depreciation for assets purchased/sold during the period
is proportionately charged.
6. INVENTORIES
i. Raw Materials are valued at cost comprising purchase price, freight
and handling, non refundable taxes and duties and other directly
attributable costs
ii. Finished Products are valued at lower of cost and net realizable
value.
iii. Scrap & By Products are valued at net realizable value.
iv. Stores and Spares are valued at cost comprising of purchase price,
freight and handling, non refundable taxes and duties and other
directly attributable costs.
7. EMPLOYEE Benders
i. Short Term Employee Benefits : Benefits payable to employees within
12 months of rendering services such as wages, salaries, bonus, paid
annual leave, etc are classified as Short Term Employee Benefits and
are recognized in the period in which the employee renders related
services, ii Long Term/Post Employment/Termination Benefits: The
Company has taken an Employees Group Gratuity of LIC for meeting out
the liability of Gratuity. Premium paid is debited as and when due.
Actuarial Valuation is also kept in view for determining the
liabilities, if any. Leave Encashment, if any, is accounted for on
accrual basis,
iii. Provident Fund: On the basis of payments/contributions made to the
concerned Provident Fund authorities.
8. INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value.
Long Term Investments are stated at cost. Provision for diminution in
the value of long-term investments is made only if such a decline is
other than temporary.
9. CASH AND CASH EQUIVALENTS
''Cash'' comprises of cash on hand and demand deposits with Bark. ''Cash
Equivalents'' are short term, highly liquid investment, that are
readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
10. EXPENDITURE
Expenses are accounted on the accrual basis and provisions are made for
all known fosses and liabilities
11. TAXATION
Deferred Tax is recognized, subject to the consideration of prudence,
in respect of deferred tax assets or liabilities, on timing
differences, being the difference between taxable income and accounting
income that originate in one period, and is reversible in one or more
subsequent periods.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in the future;
however where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets and are reviewed for the
appropriateness of their respective carrying values at each reporting
date
Income Taxes are accrued in the same period the related revenue and
expenses arise A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable Minimum
Alternate Tax (MAT) paid in accordance with the tax laws, which gives
rise to future economic benefits in the form of tax credit against
future income tax liability, is recognized as an asset in the Balance
Sheet if there is convincing evidence that the company will pay normal
tax in future and the resultant asset can be measured reliably.
12. IMPAIRMENT
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value An impairment Joss, if any, is charged to
the Statement of Profit and Loss in the period in which an asset is
identified as impaired. The impairment loss, if any, recognized in
prior accounting periods is reversed if there has been a change in the
estimate of recoverable amount
13. BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
of qualifying assets are capitalized as part of the cost of such assets
till such time the asset is ready for its intended use or sale. 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 recognized as an expense in the statement of profit and loss
in the period in which they are incurred,
14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when the Company has a present obligation as
a result of past events; 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.
Contingent Liability is disclosed in case of a present obligation
arising from past events when it is not probable that an outflow of
resources will be required to settle the obligation, or a present
obligation when no reliable estimate is possible, or a possible
obligation arising from past events where the probability of outflow of
resources is remote.
Contingent Assets are neither recognized nor disclosed.
15. EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET
Material events occurring after date of Balance Sheet are taken into
cognizance.
16. CASH FLOW STATEMENT
Cash Flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The Cash Flows from regular revenue generating; financing and
investing activities of the company are segregated.
17. EARNING PER SHARE
The company reports basic and diluted earnings per share in accordance
with Accounting Standard (AS-20) - Earnings per Share, Basic earnings
per equity share have been computed by dividing net profit after-tax
attributable to equity share holders by the weighted average numbers of
equity shares outstanding during the year. Diluted earnings during the
year adjusted for the effects of all dilutive potential equity shares
per share is computed using the weighted average number of equity
shares and dilutive potential equity shares outstanding during the
year,
18. SEGMENT INFORMATION
The company is engaged primarily in the business of Rigid PVC Pipes.
The production facility is located at one place and the business is
fully concentrated in India. As the basic of nature of these activities
are governed by the same set of risks and returns, these have been
grouped as a single business segment. Accordingly, segment reporting
disclosure as envisaged in Accounting Standard (AS-17) -Segment
Reporting", issued by the Institute of Chartered Accountants of
India, is not applicable to the Company.
Mar 31, 2012
1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS
The financial statements of the company have been prepared on accrual
basis under the historical cost convention in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) to
comply with the Accounting Standards notified under section 211 (3C) of
the Companies Act, 1956 and the relevant provisions thereof.
2. USE OF ESTIMATES
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognized in the
period in which the results are known/materialized.
3. REVENUE RECOGNITION
i. Sales Revenues are recognized when goods are invoiced and
dispatched to customers, and are recorded inclusive of Excise Duty, but
are net of Sales Returns, Trade Discounts and Sales Tax.
ii. Dividend Income is recognized when the company's right to
receive dividend is established. Interest Income is recognized on a
time proportion basis based on the amount outstanding and the rate
applicable.
iii. Other Incomes are generally accounted on accrual basis as they are
earned.
4. FIXED ASSETS
Tangible and intangible fixed assets are stated at cost of acquisition
(net of CENVAT, wherever applicable), less accumulated depreciation.
Cost is inclusive of freight, duties, levies and any directly
attributable cost of bringing the assets to their working condition for
intended use. Direct costs are capitalized till the assets are ready to
be put to use. Interest on borrowings, wherever applicable,
attributable to new projects is capitalized and included in the cost of
fixed assets as appropriate.
5. DEPRECIATION AND AMORTIZATION
Depreciation in respect of Fixed Assets, is provided adopting Straight
Line Method over the useful life of the Assets as estimated by the
Management.
Depreciation for assets purchased/sold during the period is
proportionately charged.
6. INVENTORIES
i. Raw Materials are valued at cost comprising purchase price, freight
and handling, non refundable taxes and duties and other directly
attributable costs.
ii. Finished Products are valued at lower of cost and net realizable
value.
iii. Scrap & By Products are valued at net realizable value.
iv. Stores and Spares are valued at cost comprising of purchase price,
freight and handling, non refundable taxes and duties and other
directly attributable costs.
7. EMPLOYEE BENEFITS
i. Short Term Employee Benefits ; Benefits payable to employees within
12 months of rendering services such as wages, salaries, bonus, paid
annual leave, etc are classified as Short Term Employee Benefits and
are recognized in the period in which the employee renders related
services.
ii. Long Term/Post Employment/Termination Benefits:The Company has
taken an Employees Group Gratuity of LIC for meeting out the liability
of Gratuity. Premium paid is debited as and when due. Actuarial
Valuation is also kept in view for determining the liabilities, if any.
Leave Encashment, if any, is accounted for on accrual basis.
iii. Provident Fund : On the basis of payments/contributions made to
the concerned Provident Fund authorities.
8. INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value.
Long Term Investments are stated at cost. Provision for diminution in
the value of long-term investments is made only if such a decline is
other than temporary.
9. CASH AND CASH EQUIVALENTS
'Cash' comprises of cash on hand and demand deposits with Bank.
'Cash Equivalents' are short term, highly liquid investment, that are
readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
10. EXPENDITURE
Expenses are accounted on the accrual basis and provisions are made for
all known losses and liabilities.
11. TAXATION
Deferred Tax is recognized, subject to the consideration of prudence,
in respect of deferred tax assets or liabilities, on timing
differences, being the difference between taxable income and accounting
income that originate in one period, and is reversible in one or more
subsequent periods.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in the future;
however where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets and are reviewed for the
appropriateness of their respective carrying values at each reporting
date.
Income Taxes are accrued in the same period the related revenue and
expenses arise. A provision is made for income tax annually, based on
the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
Alternate Tax (MAT) paid in accordance with the tax laws, which gives
rise to future economic benefits in the form of tax credit against
future income tax liability, is recognized as an asset in the Balance
Sheet if there is convincing evidence that the company will pay normal
tax in future and the resultant asset can be measured reliably.
12. IMPAIRMENT
Whether 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 of such assets. If the assets are impaired, the
company recognizes an impairment loss as the difference between the
carrying value and value in use.
13. BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
of qualifying assets are capitalized as part of the cost of such assets
till such time the asset is ready for its intended use or sale. 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 recognized as an expense in the statement of profit and loss
in the period in which they are incurred.
14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when the Company has a present obligation as
a result of past events; 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.
Contingent Liability is disclosed in case of a present obligation
arising from past events when it is not probable that an outflow of
resources will be required to settle the obligation, or a present
obligation when no reliable estimate is possible, or a possible
obligation arising from past events where the probability of outflow of
resources is remote.
Contingent Assets are neither recognized nor disclosed.
15. EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET
Material events occurring after date of Balance Sheet are taken into
cognizance.
16. CASH FLOW STATEMENT
Cash Flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The Cash Flows from regular revenue generating; financing and
investing activities of the company are segregated.
17. EARNING PER SHARE
The company reports basic and diluted earnings per share in accordance
with Accounting Standard (AS-20) - Earnings per Share. Basic earnings
per equity share have been computed by dividing net profit after tax
attributable to equity share holders by the weighted average numbers of
equity shares outstanding during the year. Diluted earnings during the
year adjusted for the effects of all dilutive potential equity shares
per share is computed using the weighted average number of equity
shares and dilutive potential equity shares outstanding during the
year.
18. SEGMENT INFORMATION
The company is engaged primarily in the business of Rigid PVC Pipes.
The production facility is located at one place and the business is
fully concentrated in India. As the basic of nature of these activities
are governed by the same set of risks and returns, these have been
grouped as a single business segment. Accordingly, segment reporting
disclosure as envisaged in Accounting Standard (AS-17) "Segment
Reporting", issued by the Institute of Chartered Accountants of India,
is not applicable to the Company.
Mar 31, 2011
I) ACCOUNTING CONVENTION
The financial statements are prepared under the historical cost
convention, having due regard to fundamental accounting assumptions of
going concern, consistency and accrual, in compliance with the
accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956.
II) SALES
Sales comprise sale of goods and includes excise duty, wherever
applicable, but does not include sales tax.
III) FIXED ASSETS AND DEPRECIATION
a) Ail fixed assets are valued at cost less depreciation. All costs
relating to the acquisition and installation of fixed assets are
capitalised and include incidental expenses & financing costs relating
to borrowed funds attributable to construction or acquisition of fixed
assets upto the date, the asset is put to use.
b) Depreciation is provided under the "Straight Line Method" at the
rates provided in schedule XIV to the Companies Act, 1956.
c) Lease premium for leasehold land is amortised over the period of
lease.
IV) VALUATION OF INVENTORIES
a) Raw Materials, Stores and Spares and Loose Tools are valued at cost.
b) Finished Goods is valued at lower of estimated cost or net
realisable value.
c) Scrap is valued at net realisable value.
V) CENVAT CREDIT
Cenvat Credit of excise duty, service tax and education cess paid on
inputs and capital goods is accounted for by reducing the
purchase/service cost of the related inputs or the capital assets as
the case may be.
VI) RETIREMENT BENEFITS
The Company has taken an Employees Group Gratuity of LIC for meeting
out the liability of Gratuity. Premium paid is debited as and when due.
Actuarial Valuation is also kept in view for determining the
liabilities, if any. Leave Encashment, if any, is accounted for on
accrual basis.
VII) EVENTS OCCURRING AFTER BALANCE SHEET DATE
Events occurring after Balance Sheet date have been considered in the
preparation of Financial Statements.
VIII) CONTINGENT LIABILITIES
Contingent liabilities not provided for in the accounts are separately
disclosed.
Mar 31, 2010
I) GENERAL
a) The financial statements are prepared under the historical cost
convention and in accordance with the requirement of the Companies Act,
1956.
b) Accounting Policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
II) BASIS OF ACCOUNTING
The company follows the mercantile system of Accounting and recongnises
income and expenditure on accrual basis.
III) SALES
Sales comprise sale of goods and includes excise duty, wherever
applicable, but does not include sales tax.
IV) FIXED ASSETS AND DEPRECIATION
a) All fixed assets are valued at cost less depreciation. All costs
relating to the acquisition and installation of fixed assets are
capitalised and include incidental expenses & financing costs relating
to borrowed funds attributable to construction or acquisition of fixed
assets upto the date, the asset is put to use.
b) Depreciation is provided under the "Straight Line Method" at the
rates provided in schedule XIV to the Companies Act, 1956.
c) Lease premium for leasehold land is amortised over the period of
lease.
V) VALUATION OF INVENTORIES
a) Raw Materials, Stores and Spares and Loose Tools are valued at cost.
b) Finished Goods is valued at lower of estimated cost or net
realisable value.
c) Scrap is valued at net realisable value.
VI) CENVAT CREDIT
Cenvat Credit of excise duty service tax and education cess paid on
inputs and capital goods is accounted for by reducing the
purchase/service cost of the related inputs or the capital assets as
the case may be.
VII) RETIREMENT BENEFITS
The Company has taken an Employees Group Gratuity of LIC for meeting
out the liability of Gratuity. Premium paid is debited as and when due.
Actuarial Valuation is also kept in view for determining the
liabilities, if any. Leave Encashment, if any, is accounted for on
accrual basis.
VIII) EVENTS OCCURRING AFTER BALANCE SHEET DATE
Events occurring after Balance Sheet date have been considered in the
preparation of Financial Statements.
IX) CONTINGENT LIABILITIES
Contingent liabilities not provided for in (he accounts are separately
disclosed.