Mar 31, 2009
A) Basis of preparation of Financial Statements :
The accounts are preparer under the historical cost convention and materially comply with the mandatory Accounting Standards referred under section 211 (3C) of the Companies Act 1956 ana in the formal prescribed under Schedule VI of the Companies Act 1956 along with the required disclosures therein
b) Uso of estimates :
The preparation of financial statements requires management of the company to make estimates and assumptions that at affect the reported balances of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the year reported. Examples of such estimates include provision for doubtful debts, income taxes and future obligations under employee retirement benefit plans Actual results could other from those estimates Any revision to accounting estimates is recognised in accordance with the requirements of the respective Accounting Standard.
c) Fixed Assets :
Fixed assets are staled at historical cost including directly attributable costs Of bringing the assets to their working condition
d) Depreciation :
Depreciation on Fixed Assets is provided on straight line method in accordance with the rates and in the manner prescribed in Schedule XIV of the Companies Act 195E on pro-rata basis Intangible assets are being amortised over their useful life of 5 years
Investments that are readily realisable and intended to be held for not more than a year are classified as current investments and are earned at ower of cost and fair value determined on an individual investment oasis whereas all other investments are classified as long term investments and are earned at cost except provision for diminution in value is made to recognize a decline other than temporary as specified in Accounting Standard (AS-13) on Accounting for Investments.
f) Investments ;
Inventories are valued as under ;
Raw Material is valued at lower of cost arrived on FIFO basis and net realisable value Stocks process is valued at lower of cost and net market realisable value Cost is taken upto the slage of completion of product inclusive of appropriate portion of overheads.
Finished manufactured Goods is valued at lower of cast and net market realisable value. Traded Goods is valued at lower of cost arrived on FIFO basis and net market realisable value
g) Revenue Recognition :
Sales of products are recognised when the products are dispatched Revenue from Service operations is recognised when the services are rendered Other revenue/income and cost/expenditure are accounted for on accrual basis
h) Foreign Currency Transaction :
Transactions in foreign currency are recorded at the foreign exchange rate prevailing on the date of the transactions Liabilities denominated in foreign currency are restated at the rate as on the dale of Balance Sheet and resulting difference is transferred to profit &, Loss account or the assets account as the case may be However as prescribed by the Notification of the Companies (Accounting Standards) Amendment Rules 2006 on 31.03.2009 on AS-11 the foreign exchange difference relating to long term monetary items which are in relation to the acquisition of a depreciable capital asset are are addede/deducied with the cost of asset and is depreciated over the balance life of the asset and in other cases the differences are accumulated in a "Foreign Currency Monetary Item Translation Difference Account " and amortised to the Profit & Loss account over the balance life of the long term monetary item but not exceeding 31st March 2011
i> Employees Benefits :
Liability is provided for employees benefits of provident fund, gratuity, earned leave in respect of eligible employees. Contributions under the defined contribution scheme are charged to revenue The liability in respect of defined benefit scheme like gratuity and earned leaves is provided in the accounts on the basis of actual valuation as on the balance sheet date in accordance with Accounting Standard (AS-15) on Employee Benefits"
(Revised) issued by the institute of Chartered Accountants of india
j) Borrowing Costs :
Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are changed to revenue
k> Premises Taken on Lease :
For premises taken on lease, lease rentals payable are charged to revenue
l) Taxes on Income :
Tax expense comprises current income lax. wealth tax, deferred tax and fringe benefit tax(including interest payable) Current income tax,wealth tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the provision of Income Tax Act 1961 Deferred lax is recognised, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods Where there is unabsorbed depreciation or carried forward tosses, deferred tax assets are recognised only it there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future
m) Earnings per Share (EPS) :
Basic and Dilutee earning per shares are calculated by dividing the net profit or loss for the period attributable to the equity share holders by the weighted average number of equity shares outstanding during the period
n) Miscellaneous Expenditure :
Expenses incurred in connection with further issue of share capital are being amortised in three equal instalments.
o) GDRIFCCB Issue :
Expenses incurred in connection with the issue of GDR/FCCB have been charged with Securities Premium Account as permitted by section 78 of the Companies Act 1956 Premium payable on redemption of FCCB is provided over the life of the bonds from Securities Premium Account On conversion of the bonds in equity the provision for the redemption premium is reversed
Mar 31, 2000
A) Accounting Convention:
The accounts are prepared under the historical cost convention and materially comply with the mandatory accounting standards.
b) Fixed Assets:
Fixed Assets are stated at historical cost including directly attributable costs of bringing the assets to their working condition.
c) Depreciation :
Depreciation is provided on fixed assets on straight line method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.
d) Investments :
All Investments are stated at cost.
Inventories are valued as under:
Raw Materials and packing materials at Cost on FIFO basis.
Stock-in-process at net adjusted selling price method.
Finished manufactured goods at net adjusted selling price method.
Finished traded goods (domestic) at Cost on FIFO basis.
Finished traded goods (imported) at net adjusted selling price method.
f) Revenue Recognition:
Sales of products are recognised when the products are shipped. Revenue/Income and Cost/ Expenditure are generally accounted for on accrual basis. However, Gratuity, Leave Encashment and certain periodic payments such as Rates & Taxes and Insurance are accounted for on cash basis.
g) Miscellaneous Expenditure:
Preliminary expenses and expenses incurred on public issue of equity shares are being amortised in ten equal instalments.