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Accounting Policies of BDH Industries Ltd. Company

Mar 31, 2016

1 GENERAL INFORMATION

BDH INDUSTRIES LIMITED is a public limited company, incorporated in 1990 under the Companies Act, 1956 having its registered office in Mumbai. The company is engaged in manufacturing of therapeutic formulations covering wide range of pharmaceuticals. Its shares are listed on the Bombay Stock Exchange. The company caters to both domestic as well as international market.

2 SIGNIFICANT ACCOUNTING POLICIES

i) BASIS OF PREPARATION

a. The financial statements of the Company have been prepared and presented in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 and Companies Act, 1956 as applicable. The financial statements have been prepared and presented on accrual basis under the historical cost convection.

The classification of assets and liabilities of Company is done into current and non-current based on operating cycle of the business of the Company. The operating cycle of the business of the company is less than twelve months and therefore all current and non-current classifications are done based on status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule III to the Companies Act, 2013.

b. The accounting policies adopted in the preparation of financial statements are consistent with those used in previous year.

ii) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) at the date of the financial statements and the results of operations during the reporting period end. 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 estimates are recognized in the periods in which the results are known/materialize.

iii) FIXED ASSETS

a. Fixed assets, are carried at cost less accumulated depreciation/amortization. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, duties and taxes (other than those subsequently recoverable from the tax authorities), freight and other incidental expenses directly to make the asset ready for its intended use.

b. The cost of assets not ready for their intended use before the yearend is disclosed under Capital Work in Progress. Capital work-in-progress are carried at cost, comprising of direct costs, related incidental expenses.

iv) DEPRECIATION

a. Depreciation on all assets of the Company is charged on Straight Line Method over the useful life of the assets mentioned in Schedule II to the Companies Act, 2013.

b. On an annual basis the Company makes an assessment of any indicator that may lead to impairment of assets. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. The recoverable amount is higher of an asset''s net selling price and value in use. Value is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

c. Assets costing individually up to Rs. 5,000 are fully depreciated in the year of purchase.

d. Leasehold land is not amortized.

v) INVENTORIES

a) RAW MATERIAL

Raw Materials are valued at lower of cost or net realizable value.

b) PACKING MATERIAL

Packing Materials are valued at lower of cost or net realizable value.

c) WORK IN PROCESS

Work in Process are valued at cost. The cost of Stock-in-process comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to its present location and condition.

d) FINISHED GOODS

Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to its present location and condition.Net realizable value is the estimate of the selling price in ordinary course of business as applicable.

vi) EMPLOYEE BENEFITS

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, bonus, short term compensated absences, ex-gratia, leave encashment and leave travel allowance is recognized in the period in which the employees renders related services.

b) Long Term Employee Benefits

i) Defined Contribution Plan

The Company''s contribution to Provident Fund Scheme, Employee''s State Insurance Scheme are considered as defined contribution plans and are recognized as an expense to the statement of profit and loss, based on the amount of contribution required to be made and when services are rendered by employees.

ii) Defined Benefit Plan

Gratuity being a defined benefit obligation is provided at the end of each year/period.

vii) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded at the exchange rate on the date of transaction. The exchange gain/loss on settlement/negotiation during year is recognized in the Statement of Profit and Loss.

viii) REVENUE RECOGNITION

a) Revenue from sale of product net of returns is recognized on transfer of all significant risk and rewards of ownership of the products on to the customers, which is generally after dispatch of goods and reflected in the accounts at gross realizable value i.e. inclusive of Excise Duty and VAT.

b) Revenue from service is recognized as and when services are rendered and related costs are incurred.

c) Interest income is recognized on time proportion method basis taking into account the amounts outstanding and the rate applicable.

d) The Export Incentive are disclosed under Other Operating Revenue.

ix) RESEARCH & DEVELOPMENT

Revenue expenditure on research and development is charged to Statement of Profit and Loss in the year in which it is incurred. Capital expenditure on research and development is considered as an addition to fixed assets.

x) TAXATION

a) CURRENT TAX

Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

b) DEFERRED TAX

Deferred Tax is recognized on timing differences being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable rights exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities related to the taxes on income levied by same governing taxation laws.

The tax effect is calculated on the accumulated timing difference at the yearend based on the tax rates and laws enacted or substantially enacted on balance sheet date.

xi) EXCISE DUTY, SERVICE TAX AND CENVAT

CENVAT credit utilized during the year is accounted in Excise Duty and unutilized balance at the year end is considered as advance excise duty.

xii) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents includes Cash in hand, deposits with bank and interest accrued thereon.

xiii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprise has a present obligation as a result of past event, 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 its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but disclosed in notes to accounts. Contingent Assets are neither recognized nor disclosed in financial statements.

xiv) EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the number of equity shares outstanding during the year.

xv) PROPOSED DIVIDEND

Dividend proposed by the Board of Directors is provided in books of account, pending approval of members in Annual General Meeting.


Mar 31, 2015

GENERAL INFORMATION

BDH INDUSTRIES LIMITED is a public limited company, incorporated in 1990 under the Companies Act, 1956 having its registered Office in Mumbai. The company is engaged in manufacturing of therapeutic formulations covering wide range of pharmaceuticals. Its shares are listed on the Bombay Stock Exchange. The company caters to both domestic as well as international market.

i) BASIS FOR ACCOUNTING

a. The financial statements of the Company have been prepared and presented in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 and Companies Act, 1956 as applicable. The financial statements have been prepared and presented on accrual basis under the historical cost convection.

The classification of assets and liabilities of Company is done into current and non-current based on operating cycle of the business of the Company. The operating cycle of the business of the company is less than twelve months and therefore all current and non-current classifications are done based on status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act, 1956.

b. The accounting policies adopted in the preparation of financial statements are consistent with those used in previous year.

ii) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) at the date of the financial statements and the results of operations during the reporting period end. 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 estimates are recognized in the periods in which the results are known/materialize.

iii) FIXED ASSETS

a. Fixed assets, are carried at cost less accumulated depreciation/amortization. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, duties and taxes (other than those subsequently recoverable from the tax authorities), freight and other incidental expenses directly to make the asset ready for its intended use.

b. The cost of assets not ready for their intended use before the yearend is disclosed under Capital Work in Progress. Capital work-in-progress are carried at cost, comprising of direct costs, related incidental expenses.

iv) DEPRECIATION

a. Depreciation on fixed assets up to 31st March, 2014 was provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

b. Pursuant to the notification of the Schedule II to the Companies Act, 2013 with effect from 1st April, 2014, depreciation for the year has been provided on the straight line method as per the useful life prescribed in Schedule II to the Companies Act, 2013. Accordingly, for assets which had no residual life as at 1st April 2014, the book value has been adjusted against Surplus (net of deferred tax).

c. Assets costing individually up to Rs, 5,000 are fully depreciated in the year of purchase.

d. Leasehold land is not amortized.

v) INVENTORIES

a) RAW MATERIAL

Raw Materials are valued at lower of cost or net realizable value.

b) PACKING MATERIAL

Packing Materials are valued at lower of cost or net realizable value.

c) WORK IN PROCESS

Work in Process are valued at cost. The cost of Stock-in-process comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to its present location and condition.

d) FINISHED GOODS

Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to its present location and condition.Net realizable value is the estimate of the selling price in ordinary course of business as applicable.

vi) EMPLOYEE BENEFITS

a) Short Term Employee Benefits

All employee Benefits payable wholly within twelve months of rendering the services are classified as short term employee Benefits. Benefits such as salaries, wages, bonus, short term compensated absences, ex-gratia, leave encashment and leave travel allowance is recognized in the period in which the employees renders related services.

b) Long Term Employee Benefits

i) Defend Contribution Plan

The Company's contribution to Provident Fund Scheme, Employee's State Insurance Scheme are considered as defend contribution plans and are recognized as an expense to the statement of Profit and loss, based on the amount of contribution required to be made and when services are rendered by employees.

ii) Defend Benefit Plan

Gratuity being a defend Benefit obligation is provided at the end of each year/period.

vii) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded at the exchange rate on the date of transaction. The exchange gain/loss on settlement/negotiation during year is recognized in the Statement of Profit and Loss.

viii) REVENUE RECOGNITION

a) Revenue from sale of product net of returns is recognized on transfer of all significant risk and rewards of ownership of the products on to the customers, which is generally after dispatch of goods and reflected in the accounts at gross realizable value i.e. inclusive of Excise Duty and VAT.

b) Revenue from service is recognized as and when services are rendered and related costs are incurred.

c) Interest income is recognized on time proportion method basis taking into account the amounts outstanding and the rate applicable.

ix) RESEARCH & DEVELOPMENT

Revenue expenditure on research and development is charged to Statement of Profit and Loss in the year in which it is incurred. Capital expenditure on research and development is considered as an addition to fixed assets.

x) TAXATION

a) CURRENT TAX

Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

b) DEFERRED TAX

Deferred Tax is recognized on timing differences being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable rights exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities related to the taxes on income levied by same governing taxation laws.

The tax effect is calculated on the accumulated timing difference at the yearend based on the tax rates and laws enacted or substantially enacted on balance sheet date.

xi) EXCISE DUTY, SERVICE TAX AND CENVAT

CENVAT credit utilized during the year is accounted in Excise Duty and unutilized balance at the year end is considered as advance excise duty.

xii) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents includes Cash in hand, deposits with bank and interest accrued thereon.

xiii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when an enterprise has a present obligation as a result of past event, 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 its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but disclosed in notes to accounts. Contingent Assets are neither recognized nor disclosed in financial statements.

xiv) EARNING PER SHARE

Basic earnings per share is calculated by dividing the net Profit or loss for the year attributable to equity shareholders by the number of equity shares outstanding during the year.

xv) PROPOSED DIVIDEND

Dividend proposed by the Board of Directors is provided in books of account, pending approval of members in Annual General Meeting.


Mar 31, 2014

I) BASIS FOR ACCOUNTING

a. The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and Companies Act,2013 read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act,2013 and General Circular 08/2014 dated April 4, 2014 with respect to the Financial Statements. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of Company is done into current and non-current based on operating cycle of the business of the Company. The operating cycle of the business of the company is less than twelve months and therefore all current and non-current classifications are done based on status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act, 1956

b. The accounting policies adopted in the preparation of financial statements are consistent with those used in previous year.

ii) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contigent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual result could differ from these estimates.

iii) FIXED ASSETS

a. Fixed Assets are carried at cost less accumulated depreciation. Tangible Assets are recorded at cost of acquisition or construction. Cost of acquisition comprises its purchase price including inward freight, duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use.

b. The cost of assets not ready for their intended use before the year end is disclosed under Capital Work in Progress. Capital work-in-progress are carried at cost, comprising of direct costs, related incidental expenses.

iv) DEPRECIATION

Depreciation on fixed assets has been provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Assets costing Rs. 5000/- or less are depreciated at 100% rate on prorata basis in the year of purchase. The Company carries out exercise of assessment of any impairment to its fixed assets as at each balance sheet date.

v) INVENTORIES

a) RAW MATERIAL

Raw Materials are valued at lower of cost or net realizable value.

b) PACKING MATERIAL

Packing Materials are valued at lower of cost or net realizable value.

c) WORK IN PROCESS

Work in Process are valued at cost. The cost of Stock-in-process comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to it''s present location and condition.

d) FINISHED GOODS

Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to it''s present location and condition.Net realisable value is the estimate of the selling price in ordinary course of business as applicable.

vi) EMPLOYEE BENEFITS

a) Retirement Benefit in the form of Provident Fund is a defined contribution scheme and contributions are charged to the Statement of Profit and Loss for the year/period when the contributions are due. Leave Encashment and Leave Travel Allowances paid has been charged to the Statement of Profit and Loss.

b) Gratuity being a defined benefit obligation is provided at the end of each year/period.

vii) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded at the exchange rate on the date of transaction. The exchange gain/loss on settlement/negotiation during year is recognised in the Statement of Profit and Loss.

viii) REVENUE RECOGNITION

a) Revenue from sale of product net of returns is recognized on transfer of all significant risk and rewards of ownership of the products on to the customers, which is generally after dispatch of goods and reflected in the accounts at gross realisable value i.e. inclusive of Excise Duty and VAT.

b) Interest income is recognised on time proportion method basis taking into account the amounts outstanding and the rate applicable.

ix) RESEARCH & DEVELOPMENT

Revenue expenditure on research and development is charged to Statement of Profit and Loss in the year in which it is incurred. Capital expenditure on research and development is considered as an addition to fixed assets.

x) TAXATION

a) CURRENT TAX

Current Tax is calculated as per the provisions of Income Tax Act, 1961.

b) DEFERRED TAX

Deferred Tax is recognized on timing differences being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and deferred tax liabilites are offset, if a legally enforceable rights exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities related to the taxes on income levied by same governing taxation laws. The tax effect is calculated on the accumulated timing difference at the year end based on the tax rates and laws enacted or substantially enacted on balance sheet date.

xi) EXCISE DUTY, SERVICE TAX AND CENVAT

CENVAT credit utilised during the year is accounted in Excise Duty and unutilised balance at the year end is considered as advance excise duty.

xii) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents includes Cash in hand, deposits with bank and interest accrued thereon.

xiii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when an enterprise has a present obligation as a result of past event, 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 its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognised but disclosed in notes to accounts. Contingent Assets are neither recognised nor disclosed in financial statements.

xiv) EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the number of equity shares outstanding during the year.

xv) PROPOSED DIVIDEND

Dividend proposed by the Board of Directors is provided in books of account, pending approval of members in Annual General Meeting.

3 Notes on Accounts

i) Disclosure as required by Accounting Standard -AS 17 "Segment Reporting" issued by Institute of Chartered Accountants of India

The entire operations of the Company relate only to one segment viz. pharmaceuticals. As such, there is no separate reportable segment under Accounting Standard -AS 17 on Segment Reporting.

ii) Disclosure as required by Accounting Standard - AS 18 "Related Parties" issued by Institute of Chartered Accountants of India

a) Key Management Personnels

Mrs. Jayashree Nair (Chairperson and Managing Director) Mr. S.C.Kachhara (Executive Director) Mrs. Karthika Nair (Director)

b) Relatives of Key Management Personnels

Name of Related Party Mr. G.L.Kachhara Mr. Ankit Kachhara

c) Others

Karthika Nair Smarak Samithi


Mar 31, 2013

I) BASIS FOR ACCOUNTING

a. The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of Company is done into current and non-current based on operating cycle of the business of the Company. The operating cycle of the business of the company is less than twelve months and therefore all current and non-current classifications are done based on status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act, 1956

b. The accounting policies adopted in the preparation of financial statements are consistent with those used in previous year.

ii) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contigent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual result could differ from these estimates.

iii) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition or construction less CENVAT/Service Tax/VAT credit availed.

iv) DEPRECIATION

Depreciation on fixed assets has been provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

v) INVENTORIES

a) RAW MATERIAL

Raw Materials are valued at lower of cost or net realizable value.

b) PACKING MATERIAL

Packing Materials are valued at lower of cost or net realizable value.

c) WORK IN PROCESS

Work in Process are valued at cost. The cost of Stock-in-process comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to it''s present location and condition.

d) FINISHED GOODS

Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to it''s present location and condition.Net realisable value is the estimate of the selling price in ordinary course of business as applicable.

vi) EMPLOYEE BENEFITS

a) Retirement benefit in the form of provident fund is a defined contribution scheme and contributions are charged to Statement of Profit and Loss for the year/period when the contributions are due.

b) Gratuity being a defined benefit obligation is provided at the end of each year/period.

vii) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded at the exchange rate on the date of transaction. The exchange gain/loss on settlement/negotiation during year is recognised in the Statement of Profit and Loss.

viii) REVENUE RECOGNITION

a) Revenue from sale of product net of returns is recognized on transfer of all significant risk and rewards of ownership of the products on to the customers, which is generally after dispatch of goods and reflected in the accounts at gross realisable value i.e. inclusive of Excise Duty and VAT.

b) Interest income is recognised on time proportion method basis taking into account the amounts outstanding and the rate applicable.

ix) TAXATION

a) CURRENT TAX

Current Tax is calculated as per the provisions of Income Tax Act, 1961.

b) DEFERRED TAX

Deferred Tax is recognized on timing differences being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and deferred tax liabilites are offset, if a legally enforceable rights exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities related to the taxes on income levied by same governing taxation laws.

The tax effect is calculated on the accumulated timing difference at the year end based on the tax rates and laws enacted or substantially enacted on balance sheet date.

x) EXCISE DUTY, SERVICE TAX AND CENVAT

CENVAT credit utilised during the year is accounted in Excise Duty and unutilised balance at the year end is considered as advance excise duty.

xi) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents includes Cash in hand, demand deposits with bank and interest accrued thereon.

xii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when an enterprise has a present obligation as a result of past event, 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 its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

xiii) PROPOSED DIVIDEND

Dividend proposed by the Board of Directors is provided in books of account, pending approval of members in Annual General Meeting.


Mar 31, 2010

1. BASIS OF ACCOUNTING

The Financial statements are prepared In accordance with the accounting principles generally accepted in India and comply with the Accounting Standards specified Qy the Institute of Chartered Accountants ot India under section 211 (3c) ol the Companies Act, 1956

2. METHOD OF ACCOUNTING

The Company is following accrual basis o accounting.

All expenses and income to the extent considered payable and receivable respectively are accounted on accrual basis

3. REVENUE RECOGNITION

Revenue on sales are recognized net ot returns and discounts. on dispatch ot goods to customers and reflected in the accounts at gross realizable value ie inclusive ol Excise duty and Sales tax.

4. FIXED ASSETS

Fixed assets acquired consequent to amalgamation are stated al the cost ol acquisition at the time ol amalgamanonThe lixed assets which were revalued during earlier year(s) are stated at their revalued pnce The other ttxed assets are stated at cost inclusive ol incidental expenses thereto All fixed assets are stated at value less accumulated depreciation

5. DEPRECIATION

Depredation on fixed assets has been provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956

6. INVENTORIES

inventories are valued at lower ol cost or net realizable valueThe cost ol Stock-in-process and Finished Goods comprises ol cost ol purchases, Cos! ol conversion and other cost incurred in bringing the inventories to Its present location and condition.Net realisable value is the estimate ol Ihe selling price in ordinary course ol business as applicable

7. PROVISION FOR TAXATION

Provision tor taxation has been made in accordance with the provisions of Income Tax Act, 1961 and the rules made thereunder applicable lor Ihe relevant Assessment Year

8. DEFERRED TAXATION

Deferred Tax resulting from timing differences between book profits and tax Profits is accounted lor under the liability method. at the current rates ot tax, to the extent thai the timing differences are expected to crystallise

9. FOREIGN CURRENCY TRANSACTIONS :

1 Transactions in Foreign Currency are accounted at the Exchange rale prevailing at the time ol transaction.

2 Balance in EEFC account with Central Bank of India, Sundry Debtors and Creditors denominated *i Foreign Currency nave been converted at the rates prevailing on the date ol the Balance Sheet.

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