Mar 31, 2014
1.1 Basis of preparation of financial statements
(a) The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as specified in the companies (Accounting Standards) Rules
2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities and Exchange Board of India. Accounting policies have
been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use.
(b) The Management evaluates all recently issued or revised accounting
standards on an on-going basis.
1.2 Use of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimates of carrying value of work in
progress, provision of doubtful debts and useful life of fixed assets.
Actual results could differ from estimates.
1.3 Fixed Assets and Depreciation
(a) Fixed Assets are stated at cost, less accumulated depreciation less
impairment, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets are also included to the extent they relate to the period till
such assets are ready to be put to use.
(b) Depreciation is provided on straight line method on pro rata basis
on the rates prescribed under schedule XIV of the Companies Act, 1956.
1.4 Treatment of foreign currency transactions:
(a) Foreign Exchange transactions denominated in foreign currency are
recorded at the rate of the date, on which such transactions are
initially recognized.
(b) Current Assets & Current Liabilities receivable / payable in
Foreign Currency and outstanding in the books of account as at the
close of the year are reflected on the basis of the Foreign Exchange
rates prevailing as on that date.
(c) Gains and losses on Foreign Exchange transactions relating to the
Foreign Exchange rate difference account to be charged to the Profit
and Loss Account as far as possible.
1.5 Sales
Net Sales are exclusive of Excise duty net of sales returns. Export
sales are recognized on the basis of the Airway bills date.
1.6 Purchases
Imported raw material is accounted for at the date of receipt of such
goods in the factory and is booked at the rate mentioned in the Bill of
Entry. Provisions for the all-outstanding bills as on 31st March are
accounted for at the rate prevailing on that date.
1.7 Inventory valuation
(a) Stocks of raw materials are valued according to Weighted Average
Cost method as prescribed for the valuation of inventory at purchase
cost or net realisable value whichever is low. The quantity and
valuation of stocks of Raw Material is taken as physically verified,
valued and certified by the management at the end of the year.
(b) Finished goods are valued at lower of cost or net realizable value.
Cost for the purpose is determined on the basis of absorption costing
method. The quantity and valuation of finished goods is taken as
physically verified, valued and certified by the management as at the
end of the year.
(c) The stock of Work in progress is valued at the estimated cost to
the Company. The quantity and valuation of Inventory of
work-in-progress is taken as physically verified, valued and certified
by the management as at the end of the year.
1.8 Treatment of excise duty
The Excise Duty is accounted for as and when the same is paid on
dispatch of goods from the factory/bonded premises and provision made
for goods lying in the factory at the year end and included in the
value of such-stocks.
1.9 Revenue Recognition
a) The income is recognized on the accrual basis.
b) Export incentives are accounted on accrual basis and included
estimated realizable values / duty exemption pass book schemes,
wherever applicable.
1.10 Retirement Benefits
a) Provident Fund: - Employees receive benefits from a Provident Fund,
which is a defined Contribution plan. Both the Employee and the Company
make monthly contributions to the regional Provident Fund equal to a
specified percentage of the covered employee''s salary. The Company has
no further obligations under the plan beyond its monthly contributions.
b) Gratuity: - In accordance with the payment of Gratuity Act, 1972,
the Company provides for gratuity a non funded defined benefit
retirement plan covering all employees, The plan, subject to the
provisions of the Act, provides a lump sum payment to vested employees
at retirement or termination of employment of an amount based on the
respective employees salary and the years of employment with the
Company. The Company estimates its liability on adhoc basis in the
interim financial reports and on an actuarial valuation basis as at the
end of the year carried out by an independent actuary, and is charged
to Profit and Loss Account in accordance with AS-15(revised).
c) Leave encashment:- cost is a defined benefit, and is accrued on
adhoc basis in the interim financial reports and on an actuarial
valuation basis as at end of the year, carried out by an independent
actuary, and is charged to Profit and Loss Account in accordance with
AS- 15(revised).
1.11 Taxes on Income
In the view of accumulated losses and erosion in the value of net worth
Deferred Tax Assets has not been provided in the books of accounts
keeping in view of the prudence concept as per Accounting Standards 22
issued by the Institute of Chartered Accountants of India.
1.12 Contingent liabilities
All liabilities have been provided for in the accounts except
liabilities of contingent nature, which have been disclosed at their
estimated value in the notes on accounts.
1.13 Earning per share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholder by (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share net profit or
loss for the period attributable to equity shareholder and the weighted
average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
1.14 Provisions
A provision is recognized when a present obligation was 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 their present
value and are determined based on management estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet and adjusted to reflect the current best management
estimates.
Mar 31, 2013
1.1 Basis of preparation of financial statements
a) The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as specified in the companies (Accounting Standards) Rules
2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities and Exchange Board of India. Accounting policies have
been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use.
b) The Management evaluates all recently issued or revised accounting
standards on an on- going basis.
1.2 Use of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimates of carrying value of work in
progress, provision of doubtful debts and useful life of fixed assets.
Actual results could differ from estimates.
1.3 Fixed Assets and Depreciation
(a) Fixed Assets are stated at cost, less accumulated depreciation less
impairment, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets are also included to the extent they relate to the period till
such assets are ready to be put to use.
(b) Depreciation is provided on straight line method on pro rata basis
on the rates prescribed under schedule XIV of the Companies Act, 1956.
1.4 Treatment of foreign currency transactions:
(a) Foreign Exchange transactions denominated in foreign currency are
recorded at the rate of the date, on which such transactions are
initially recognized
(b) Current Assets & Current Liabilities receivable / payable in
Foreign Currency and outstanding in the books of account as at the
close of the year are reflected on the basis of the Foreign Exchange
rates prevailing as on that date.
(c) Gains and losses on Foreign Exchange transactions relating to the
Foreign Exchange rate difference account to be charged to the Profit
and Loss Account as far as possible.
1.5 Sales
Net Sales are exclusive of Excise duty net of sales returns. Export
sales are recognized on the basis of the Airway bills date.
1.6 Purchases
Imported raw material is accounted for at the date of receipt of such
goods in the factory and is booked at the rate mentioned in the Bill of
Entry. Provisions for the all-outstanding bills as on 31s'' March are
accounted for at the rate prevailing on that date.
1.7 Inventory valuation
(a) Stocks of raw materials are valued according to Weighted Average
Cost method as prescribed for the valuation of inventory at purchase
cost or net realisable value whichever is low. The quantity and
valuation of stocks of Raw Material is taken as physically verified,
valued and certified by the management at the end of the year.
(b) Finished goods are valued at lower of cost or net realizable value.
Cost for the purpose is determined on the basis of absorption costing
method. The quantity and valuation of finished goods is taken as
physically verified, valued and certified by the management as at the
end of the year.
(c) The stock of Work in progress is valued at the estimated cost to
the Company. The quantity and valuation of Inventory of
work-in-progress is taken as physically verified, valued and certified
by the management as at the end of the year.
1.8 Treatment of excise duty
The Excise Duty is accounted for as and when the same is paid on
dispatch of goods from the factory/bonded premises and provision made
for goods lying in the factory at the year end and included in the
value of such-stocks.
1.9 Revenue Recognition
a) The income is recognized on the accrual basis.
b) Export incentives are accounted on accrual basis and included
estimated realizable values / duty exemption pass book schemes,
wherever applicable.
1.10 Retirement Benefits
a) Provident Fund: - Employees receive benefits from a Provident Fund,
which is a defined Contribution plan. Both the Employee and the Company
make monthly contributions to the regional Provident Fund equal to a
specified percentage of the covered employee''s salary. The Company has
no further obligations under the plan beyond its monthly contributions.
b) Gratuity: - In accordance with the payment of Gratuity Act, 1972,
the Company provides for gratuity a non funded defined benefit
retirement plan covering all employees, The plan, subject to the
provisions of the Act, provides a lumpsum payment to vested employees
at retirement or termination of employment of an amount based on the
respective employees salary and the years of employment with the
Company. The Company estimates its liability on adhoc basis in the
interim financial reports and on an actuarial valuation basis as at the
end of the year carried out by an independent actuary, and is charged
to Profit and Loss Account in accordance with AS-15(revised).
c) Leave encashment > Cost is a defined benefit, and is accrued on
adhoc basis in the interim financial reports and on an actuarial
valuation basis as at end of the year carried out by an independent
actuary, and is charged to Profit and Loss Account in accordance with
AS-15(revised).
1.11 Taxes on Income
In the view of accumulated losses and erosion in the value of net worth
Deferred Tax Assets has not been provided in the books of accounts
keeping in view of the prudence concept as per Accounting Standards 22
issued by the Institute of Chartered Accountants of India.
1.12 Contingent liabilities
All liabilities have been provided for in the accounts except
liabilities of contingent nature, which have been disclosed at their
estimated value in the notes on accounts.
1.13 Earning per share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholder by (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share net profit or
loss for the period attributable to equity shareholder and the weighted
average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
1.14 Provisions
A provision is recognized when a present obligation was 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 their present
value and are determined based on management estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet and adjusted to reflect the current best management
estimates.
Mar 31, 2012
1.1 Basis of preparation of financial statements
a) The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention on accrual basis. GAAP comprises mandatory
accounting standards as specified in the companies (Accounting
Standards) Rules 2006, the provisions of the Companies Act, 1956 and
guidelines issued by the Securities and Exchange Board of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
b) The Management evaluates all recently issued or revised accounting
standards on an on-going basis.
1.2 Use of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimates of carrying value of work in
progress, provision of doubtful debts and useful life of fixed assets.
Actual results could differ from estimates.
1.3 Fixed Assets and Depreciation
(a) Fixed Assets are stated at cost, less accumulated depreciation less
impairment, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets are also included to the extent they relate to the period till
such assets are ready to be put to use.
(b) Depreciation is provided on straight line method on pro rata basis
on the rates prescribed under schedule XIV of the Companies Act, 1956.
1.4 Treatment of foreign currency transactions:
(a) Foreign Exchange transactions denominated in foreign currency are
recorded at the rate of the date, on which such transactions are
initially recognised.
(b) Current Assets & Current Liabilities receivable / payable in
Foreign Currency and outstanding in the books of account as at the
close of the year are reflected on the basis of the Foreign Exchange
rates prevailing as on that date.
(c) Gains and losses on Foreign Exchange transactions relating to the
Foreign Exchange rate difference account to be charged to the Profit
and Loss Account as far as possible.
1.5 Sales
Net Sales are exclusive of Excise duty net of sales returns. Export
sales are recognised on the basis of the Airway bills date.
1.6 Purchases
Imported raw material is accounted for at the date of receipt of such
goods in the factory and is booked at the rate mentioned in the Bill of
Entry. Provisions for the all-outstanding bills as on 31st March are
accounted for at the rate prevailing on that date.
1.7 Inventory valuation
( a ) Stocks of raw materials are valued according to Weighted Average
Cost method as prescribed for the valuation of inventory at purchase
cost or net realisable value whichever is low. The quantity and
valuation of stocks of Raw Material is taken as physically verified,
valued and certified by the management at the end of the year.
( b ) Finished goods are valued at lower of cost or net realizable
value. Cost for the purpose is determined on the basis of absorption
costing method. The quantity and valuation of finished goods is taken
as physically verified, valued and certified by the management as at
the end of the year.
( c ) The stock of Work in progress is valued at the estimated cost to
the Company. The quantity and valuation of Inventory of
work-in-progress is taken as physically verified, valued and certified
by the management as at the end of the year.
1.8 Treatment of excise duty
The Excise Duty is accounted for as and when the same is paid on
dispatch of goods from the factory/bonded premises and provision made
for goods lying in the factory at the year end and included in the
value of such-stocks.
1.9 Revenue Recognition
a) The income is recognised on the accrual basis.
b) Export incentives are accounted on accrual basis and included
estimated realisable values / duty exemption pass book schemes,
wherever applicable.
1.10 Retirement Benefits
a) Provident Fund: - Employees receive benefits from a Provident Fund,
which is a defined Contribution plan. Both the Employee and the Company
make monthly contributions to the regional Provident Fund equal to a
specified percentage of the covered employee's salary. The Company has
no further obligations under the plan beyond its monthly contributions.
b) Gratuity: - In accordance with the payment of Gratuity Act, 1972,
the Company provides for gratuity a non funded defined benefit
retirement plan covering all employees, The plan, subject to the
provisions of the Act, provides a lump sum payment to vested employees
at retirement or termination of employment of an amount based on the
respective employees salary and the years of employment with the
Company. The Company estimates its liability on adhoc basis in the
interim financial reports and on an actuarial valuation basis as at the
end of the year carried out by an independent actuary, and is charged
to Profit and Loss Account in accordance with AS- 15(revised).
c) Leave encashment :- cost is a defined benefit, and is accrued on
adhoc basis in the interim financial reports and on an actuarial
valuation basis as at end of the year carried out by an independent
actuary, and is charged to Profit and Loss Account in accordance with
AS- 15(revised).
1.11 Taxes on Income
In the view of accumulated losses and erosion in the value of net worth
Deferred Tax Assets has not been provided in the books of accounts
keeping in view of the prudence concept as per Accounting Standards 22
issued by the Institute of Chartered Accountants of India.
1.12Contingent liabilities
All liabilities have been provided for in the accounts except
liabilities of contingent nature, which have been disclosed at their
estimated value in the notes on accounts.
1.13Earning per share
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholder by (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share net profit or
loss for the period attributable to equity shareholder and the weighted
average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
1.14Provisions
A provision is recognized when 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 their present value and are
determined based on management estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet and adjusted to reflect the current best management
estimates.
Mar 31, 2011
1. Basis for preparation
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as specified in the companies (Accounting Standards) Rules
2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities and Exchange Board of India. Accounting policies have
been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use.
The Management evaluates all recently issued or revised accounting
standards on an on- going basis.
2. Use of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimates of carrying value of work in
progress, provision of doubtful debts and useful life of fixed assets.
Actual results could differ from estimates.
3. FIXED ASSETS
(a) Fixed Assets are stated at cost, less accumulated depreciation less
impairment, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets are also included to the extent they relate to the period till
such assets are ready to be put to use.
DEPRECIATION
(b) Depreciation is provided on straight line method on pro rata basis
on the rates prescribed under schedule XIV of the Companies Act, 1956.
4. TREATMENTOF FOREIGN CURRENCY TRANSACTIONS:
(a) Foreign Exchange transactions denominated in foreign currency are
recorded at the rate of the date, on which such transactions are
initially recognised.
(b) Current Assets & Current Liabilities receivable/payable in Foreign
Currency and outstanding in the books of account as at the close of the
year are reflected on the basis of the Foreign Exchange rates
prevailing as on that date.
(c) Gains and losses on Foreign Exchange transactions relating to the
Foreign Exchange rate difference account to be charged to the Profit
and Loss Account as far as possible.
5. SALE
Net Sales are exclusive of Excise duty net of sales returns. Export
sales are recognised on the basis of the Airway bills date.
6. PURCHASE
Imported raw material is accounted for at the date of receipt of such
goods in the factory and is booked at the rate mentioned in the Bill of
Entry. Provisions for the all-outstanding bills as on 31st March are
accounted for at the rate prevailing on that date.
7. INVENTORY VALUATION
(a) Stocks of raw materials are valued according to Weighted Average
Cost method as prescribed for the valuation of inventory at purchase
cost or net realisable value whichever is low. The quantity and
valuation of stocks of Raw Material is taken as physically verified,
valued and certified by the management at the end of the year.
(b) Finished goods are valued at lower of cost or net realizable value.
Cost for the purpose is determined on the basis of absorption costing
method. The quantity and valuation of finished goods is taken as
physically verified, valued and certified by the management as at the
end of the year.
(c) The stock of Work in progress is valued at the estimated cost to
the Company. The quantity and valuation of Inventory of W.I.P. is taken
as physically verified, valued and certified by the management as at
the end of the year.
8. TREATMENT OF EXCISE DUTY
The Excise Duty is accounted for as and when the same is paid on
dispatch of goods from the factory/bonded premises and provision made
for goods lying in the factory at the year end and included in the
value of such-stocks.
9. REVENUE RECOGNITION
a) The income is recognised on the accrual basis.
b) Export incentives are accounted on accrual basis and included
estimated realisable values /duty exemption pass book schemes, wherever
applicable.
10. RETIREMENT BENEFITS
a) Provident Fund: - Employees receive benefits from a Provident Fund,
which is a defined Contribution plan. Both the Employee and the Company
make monthly contributions to the regional Provident Fund equal to a
specified percentage of the covered employee's salary. The Company has
no further obligations under the plan beyond its monthly contributions.
b) Gratuity: - In accordance with the payment of Gratuity Act, 1972,
the Company provides for gratuity a non funded defined benefit
retirement plan covering all employees, The plan, subject to the
provisions of the Act, provides a lump sum payment to vested employees
at retirement or termination of employment of an amount based on the
respective employees salary and the years of employment with the
Company. The Company estimates its liability on adhoc basis in the
interim financial reports and on an actuarial valuation basis as at the
end of the year carried out by an independent actuary, and is charged
to Profit and Loss Account in accordance withAS-15(revised).
c) Leave encashment cost is a defined benefit, and is accrued on adhoc
basis in the interim financial reports and on an actuarial valuation
basis as at end of the year carried out by an independent actuary, and
is charged to Profit and Loss Account in accordance with
AS-15(revised).
11. TAXES ON INCOME
In the view of accumulated losses and erosion in the value of net worth
Deferred Tax Assets has not been provided in the books of accounts
keeping in view of the prudence concept as per Accounting Standards 22
issued by the Institute of Chartered Accountants of India.
12. CONTINGENT LIABILITIES
All liabilities have been provided for in the accounts except
liabilities of contingent nature, which have been disclosed at their
estimated value in the notes on accounts.
13. EARNING PER SHARE
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholder by (after
deducting attributable taxes) by the weighted average numberof equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share net profit or
loss for the period attributable to equity shareholder and the weighted
average number of shares outstanding during the period are adjusted
forthe effects of all dilutive potential equity shares.
14. PROVISIONS
A provision is recognized when 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 their present value and are
determined based on management estimate required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet and adjusted to reflect the current best management
estimates.
Mar 31, 2010
1. Basis for preparation
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as specified in the companies (Accounting Standards) Rules
2006, the provisions of the Companies Act, 1956 and guidelines issued
by the Securities and Exchange Board of India. Accounting policies have
been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use.
The Management evaluates all recently issued or revised accounting
standards on an on- going basis.
2. Use of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimates of carrying value of work in
progress, provision of doubtful debts and useful life of fixed assets.
Actual results could differ from estimates.
3. FIXED ASSETS
(a) Fixed Assets are stated at cost, less accumulated depreciation less
impairment, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets are also included to the extent they relate to the period till
such assets are ready to be put to use.
DEPRECIATION
(b) Depreciation is provided on straight line method on pro rata basis
on the rates prescribed under schedule XIV of the Companies Act, 1956.
4. TREATMENT OF FOREIGN CURRENCY ITEMS:
(a) Foreign Exchange transactions denominated in foreign currency are
recorded at the rate of the date, on which such transactions are
initially recognised.
(b) Current Assets & Current Liabilities receivable/payable in Foreign
Currency and outstanding in the books of account as at the close of the
year are reflected on the basis of the Foreign Exchange rates
prevailing as on that date.
(c) Gains and losses on Foreign Exchange transactions relating to the
Foreign Exchange rate difference account to be charged to the Profit
and Loss Account as far as possible.
5. SALE
Net Sales are exclusive of Excise duty net of sales returns. Export
sales is recognised on the basis of the Airway bills date.
6. PURCHASE
Imported raw material is accounted for at the date of receipt of such
goods in the factory and is booked at the rate mentioned in the Bill of
Entry. Provisions for the all-outstanding bills as on 31stvlarch are
accounted for at the rate prevailing on that date.
7. INVENTORY VALUATION
(a) Stocks of raw materials are valued according to W eighted Average
Cost method as prescribed for the valuation of inventory at purchase
cost or net realisable value whichever is low. The quantity and
valuation of stocks of Raw Material is taken as physically verified,
valued and certified by the management at the end of the year.
(b) Finished goods are valued at lower of cost or net realisable value.
Cost for the purpose is determined on the basis of absorption costing
method. The quantity and valuation of finished goods is taken as
physically verified, valued and certified by the management as at the
end of the year.
é The stock of Work in progress is valued at the estimated cost to the
Co mpany. The quantity and valuation of Inventory of W.I.P. is taken
as physically verified, valued and certified by the management as at
the end of the year ,
8. TREATMENT OF EXCISE DUTY:
The Excise Duty is accounted for as and when the same is paid on
dispatch of goods from the factory/bonded premises and provision made
for goods lying in the factory at the year end and included in the
value of such-stocks.
9. REVENUE RECOGNITION:
a) The income is recognised on the accrual basis.
b) Export incentives are accounted on accrual basis and included
estimated realisable values/duty exemption pass book schemes, wherever
applicable.
10. RETIREMENT BENEFITS
a) Provident Fund:- Employees receive benefits from a Provident Fund,
which is a defined Contribution plan. Both the Employee and the Company
make monthly contributions to the regional Provident Fund equal to a
specified percentage of the covered employeess salary. The Company has
no further obligations under the plan beyond its monthly contributions.
b) Gratuity:- In accordance with the payment of Gratuity Act, 1972, the
Company provides for gratuity a non funded defined benefit retirement
plan covering all employees, The plan, subject to the provisions of the
Act, provides a lum sum payment to vested employees at retirement or
termination of employment of an amount based on the respective
employees salary and the years of employment with the Company. The
Company estimates its liability on adhoc basis in the interim financial
reports and on an actuarial valuation basis as at the end qf the year
carried out by an independent actuary, and is charged to Profit and
Loss Account in accordance with AS- 15(revised)
c) Leave encashment cost is a defined benefit, and is accured on adhoc
basis in the interim financial reports and on an actuarial valuation
basis as at end of the year carried out by an independent actuary, and
is charged to Profit and Loss Account in accordance with AS-15(revised)
11. TAXES ON INCOME
In the view of accumulated losses and erosion in the value of net worth
Deferred Tax Assets has not been provided in the books of accounts
keeping in view of the prudence concept as per Accounting Standards 22
issued by the Institute of Chartered Accountants of India.
12. CONTINGENT LIABILITIES:
All liabilities have been provided for in the accounts except
liabilities of contingent nature, which have been disclosed at their
estimated value in the notes on accounts.