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Accounting Policies of BSL Ltd. Company

Mar 31, 2016

i) Basis of Accounting

a) The financial statements are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles (GAAP) comprising of mandatory and recommendatory Accounting Standards, Guidance notes, etc. issued by ICAI.

ii) Use of Estimates

In preparation of the financial statements in confirmatory with Generally Accepted Accounting Principle in India, management is required to make estimates & assumptions that affects the reported amount of assets & liabilities and the disclosures of contingent liabilities as at the financial reporting date. The amount of revenue & expenditure during the reported period and that of actual results could be different from those of estimates. Any revision to such estimates is recognized in the period in which the same is determined.

iii) Revenue recognition

a) Sales comprise, sale of goods and is inclusive of excise duty and export incentives and after deduction of usual trade discount.

b) Income, Expenditure and Export Incentives/Benefits are accounted for on accrual basis.

c) Claims lodged with insurance companies are recognized as income on recognition by the Insurance Company.

iv) Government Grants

Government grants are recognized on the reasonable assurance of receipt. Interest subsidy under TUFS from Ministry of Textiles are recognized on accrual basis and adjusted against the respective expenses. The Capital Subsidy under TUFS from Ministry of Textiles on specified textile machinery is shown as a deduction from the gross value of the assets concerned in arriving at its book value by adopting ''Income approach'' as defined in AS-12.

v) Inventory Valuation

a) Inventories are valued at cost or net realizable value whichever is lower.

b) Cost is determined on FIFO / weighted average method as considered to the relevant stage of production.

c) Cost of finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

d) Processed value of goods on job is valued at contract rate.

vi) Fixed Assets, Intangible Assets and Capital Work-in progress.

a) Fixed assets are valued at cost with subsequent improvements thereto, except fixed assets of processing division existed on 30.09.2006, which are stated at revalued amount. Cost includes taxes (Net of refundable VAT), duties (Net of Cenvat), inward freight and installation expenses.

b) Expenditure incurred on intangible assets, on or after 1st April 2003, being the date when AS-26 became mandatory, has been accounted for as intangible assets, at their acquisition cost.

c) Preoperative Expenses

Trial run costs and other preoperative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalized up to the date of commissioning of the respective asset.

vii) Depreciation and Amortization

a) Depreciation for the year on fixed assets has been provided on straight line method as per useful life and in the manner specified in Schedule II of the Companies Act, 2013.

b) Useful life of assets used for double shift / triple shift has been reviewed and readjusted on each Balance Sheet date on the basis of shift used / depreciation charged.

c) Scrap value of the assets are determined at the rate of 5% of original cost.

d) Acquired Intangible assets are amortized over their estimated useful life as determined by the management at following rates on straight-line basis.

Computer Software : 16.21%

Enabling assets : 4.75%

viii) Foreign Exchange Transaction/Translation

a) (i) Transactions in foreign currency are accounted for at the prevailing conversion rates, on the transaction date.

(ii) Monetary items denominated in Foreign Currency (except financial instruments designated as Hedge Instruments) are translated at year end conversion rates, in financial statement.

(iii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the statement of profit & loss.

b) The Company had adopted the AS-30 “Financial Instruments: Recognition and Measurement” for accounting of financial instruments, to the extent that such adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, Company law and other regulatory requirements.

The Company uses various financial instruments to hedge its exposure to movements in foreign exchange rates. A financial instrument is designated as an effective hedge after the management objectively evaluates at the inception of each contract as to whether the instrument is effective in offsetting the cash flows attributable to the hedged risk.

Hedge effectiveness of financial instruments designated as Hedging instruments is evaluated at the end of each financial reporting period.

In the absence of such hedge being identified or being continued to be identified as an effective hedge, the value thereof is taken to statement of Profit & Loss.

The effective portion of change in spot component of such forward contracts is taken into hedging reserve and ineffective portion, not designated as hedge is taken into statement of profit & Loss.

Amounts from hedging reserve account are transferred to Statement of Profit & Loss when-

i) The forecast transaction materializes,

ii) The hedging instrument expires or is sold, terminated or exercised (except for the replacement or rollover of a hedging instrument into another hedging instrument where such replacement or rollover is part of the Company''s hedging strategy),

iii) The hedge no longer meets the criteria for hedge accounting in AS 30,

iv) The Company revokes the designation.

ix) Research and Development

Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure is shown as addition to fixed assets.

x) Employee Benefits

a) Defined Contribution Plan :

The Company makes defined contribution to Provident fund and Superannuation schemes in the statement of Profit & Loss on accrual basis, based on actual liability.

b) Defined Benefit Plan :

The Company''s Liabilities on account of Gratuity fund and Leave encashment fund for benefit on retirement of employees are determined at the end of each Financial Year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per revised AS-15. These liabilities are funded on year-to-year basis by contribution to respective funds.

xi) Prior year Adjustments

Besides the debit / credit in previous year adjustment account, amounts related to previous year, arised / settled during the year have been debited / credited to respective heads of accounts.

xii) Replenishment

In respect of exports, indigenous raw material had to be used on occasions to be replenished subsequently by quantities allowed to be imported, under Duty Exemption scheme of the Government of India. Therefore, the cost of indigenous raw material consumed for export has been stated at its estimated import/duty free prices.

xiii) Impairment of Assets

Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 “Impairment of Assets” issued by ICAI.

xiv) Taxes on Income

a) The Tax payable method is followed for providing current tax liability. The difference between provision and payments, if any, are recognized in the year in which assessment is completed.

b) Credits available for Minimum Alternative Tax (MAT) of earlier years are adjusted against Income Tax payable for current year as per provisions of the Income Tax Act, 1961.

c) Deferred taxation liabilities are measured in respect of taxable temporary differences, calculated at prevailing enacted or substantially enacted regulations at the Balance Sheet date. Deferred tax assets are recognized subject to prudence only, if there is reasonable certainty that they will be realized. Deferred tax liability is recognized net of MAT credit available on balance sheet date.

xv) Provisions and Contingent Liabilities/Assets

a) Provisions are recognized when the present obligation or past event gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.

c) Provisions and contingent liabilities/assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

xvi) Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders among the equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xvii) Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank, Cash in hand, cheques in hand and other permissible instruments as per Accounting Standard AS 3.


Mar 31, 2015

I) Basis of Accounting

a) The financial statements are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles(GAAP) comprising of mandatory and recommendatory Accounting Standards, Guidance notes, etc. issued by ICAI.

ii) Use of estimates

In preparation of the financial statements in confirmatory with Generally Accepted Accounting Principle in India, management is required to make estimates & assumptions that affects the reported amount of assets & liabilities and the disclosures of contingent liabilities as at the financial reporting date. The amount of revenue & expenditure during the reported period and that of actual results could be different from those of estimates. Any revision to such estimates is recognised in the period in which the same is determined.

iii) Revenue recognition

a) Sales comprise, sale of goods and is inclusive of excise duty and export incentives and after deduction of usual trade discount.

b) Income, Expenditure and Export Incentives/Benefits are accounted for on accrual basis.

c) Claims lodged with insurance companies are recognised as income on recognition by the Insurance Company.

iv) Government Grants

Government grants are recognised on the reasonable assurance of receipt. Interest subsidy under TUFS from Ministry of Textiles are recognised on accrual basis and adjusted against the respective expenses. The Capital Subsidy under TUFS from Ministry of Textiles on specified textile machinery is shown as a deduction from the gross value of the assets concerned in arriving at its book value by adopting 'Income approach' as defined in AS-12.

v) Inventory Valuation

a) Inventories are valued at cost or net realizable value whichever is lower.

b) Cost is determined on FIFO / weighted average method as considered to the relevant stage of production.

c) Cost of finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

d) Processed value of goods on job is valued at contract rate.

vi) Fixed assets, Intangible assets and Capital Work-in progress.

a) Fixed assets are valued at cost with subsequent improvements thereto, except fixed assets of processing division existed on 30.09.2006, which are stated at revalued amount. Cost includes taxes (Net of refundable VAT), duties (Net of Cenvat), inward freight and installation expenses.

b) Expenditure incurred on intangible assets, on or after 1st April'2003, being the date when AS-26 became mandatory, has been accounted for as intangible assets, at their acquisition cost.

c) Preoperative Expenses

Trial run costs and other preoperative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalized upto the date of commissioning of the respective asset.

vii) Depreciation and amortization

a) Depreciation for the year on fixed assets has been provided on straight line method as per useful life and in the manner specified in Schedule II of the Companies Act, 2013.

b) Useful life of assets used for double shift / triple shift has been reviewed and readjusted on each Balance Sheet date on the basis of shift used / depreciation charged.

c) Scrap value of the assets are determined at the rate of 5% of original cost.

d) Acquired Intangible assets are amortized over their estimated useful life as determined by the management at following rates on straight-line basis.

i) Computer Software : 16.21%

Enabling assets : 4.75%

viii) Foreign Exchange Transaction/Translation

a) (i) Transactions in foreign currency are accounted for at the prevailing conversion rates, on the transaction date.

(ii) Monetary items denominated in Foreign Currency (except financial instruments designated as Hedge Instruments) are translated at year end conversion rates, in financial statement.

(iii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the statement of profit & loss.

b) The Company had adopted the AS-30 "Financial Instruments: Recognition and Measurement" for accounting of financial instruments, to the extent that such adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, Company law and other regulatory requirements.

The Company uses various financial instruments to hedge its exposure to movements in foreign exchange rates. A financial instrument is designated as an effective hedge after the management objectively evaluates at the inception of each contract as to whether the instrument is effective in offsetting the cash flows attributable to the hedged risk.

Hedge effectiveness of financial instruments designated as Hedging instruments is evaluated at the end of each financial reporting period.

In the absence of such hedge being identified or being continued to be identified as an effective hedge, the value thereof is taken to statement of Profit & Loss.

The effective portion of change in spot component of such forward contracts is taken into hedging reserve and ineffective portion, not designated as hedge is taken into statement of profit & Loss.

Amounts from hedging reserve account are transferred to Statement of Profit & Loss when-

i) The forecast transaction materializes,

ii) The hedging instrument expires or is sold, terminated or exercised (except for the replacement or rollover of a hedging instrument into another hedging instrument where such replacement or rollover is part of the Company's hedging strategy),

iii) The hedge no longer meets the criteria for hedge accounting in AS 30,

iv) The Company revokes the designation.

ix) Research and Development

Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure is shown as addition to fixed assets.

x) Employee Benefits

a) Defined Contribution Plan :

The Company makes defined contribution to Provident fund and Superannuation schemes in the statement of Profit & Loss on accrual basis, based on actual liability.

b) Defined Benefit Plan :

The Company's Liabilities on account of Gratuity fund and Leave encashment fund for benefit on retirement of employees are determined at the end of each Financial Year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per revised AS-15. These liabilities are funded on year-to-year basis by contribution to respective funds.

xi) Prior year Adjustments

Besides the debit / credit in previous year adjustment account, amounts related to previous year, arised / settled during the year have been debited / credited to respective heads of accounts.

xii) Replenishment

In respect of exports, indigenous raw material had to be used on occasions to be replenished subsequently by quantities allowed to be imported, under Duty Exemption scheme of the Government of India. Therefore, the cost of indigenous raw material consumed for export has been stated at its estimated import/duty free prices.

xiii) Impairment of Assets

Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 "Impairment of Assets" issued by ICAI.

xiv) Taxes on Income

a) The Tax payable method is followed for providing current tax liability. The difference between provision and payments, if any, are recognised in the year in which assessment is completed.

b) Credit available for Minimum Alternative Tax (MAT) of earlier years are adjusted against Income Tax payable for current year as per provisions of the Income Tax Act, 1961.

c) Deferred taxation liabilities are measured in respect of taxable temporary differences, calculated at prevailing enacted or substantially enacted regulations at the Balance Sheet date. Deferred tax assets are recognised subject to prudence only, if there is reasonable certainty that they will be realized.

xv) Provisions and Contingent Liabilities/Assets

a) Provisions are recognized when the present obligation or past event gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.

c) Provisions and contingent liabilities/assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

xvi) Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders among the equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xvii) Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank, cash in hand, cheques in hand and other permissible instruments as per Accounting Standard AS 3.


Mar 31, 2014

I) General

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles(GAAP) comprising of mandatory Accounting Standards, Guidance notes, etc. issued by ICAI.

ii) Revenue recognition

a) Sales comprise, sale of goods and is inclusive of excise duty and export incentives and after deduction of usual trade discount.

b) Income, Expenditure and Export Incentives/Benefits are accounted for on accrual basis.

c) Claims lodged with insurance companies are recognised as income on recognition by the Insurance Company.

iii) Government Capital Grant The Capital Subsidy under TUFS from Ministry of Textiles on specified textile machinery is shown as a deduction from the gross value of the assets concerned in arriving at its book value by adopting ''Income approach'' as defined in AS-12.

iv) Inventory Valuation

a) Inventories are valued at cost or net realizable value whichever is lower.

b) Cost is determined on FIFO / weighted average method as considered to the relevant stage of production.

c) Cost of finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

d) Processed value of goods on job is valued at contract rate.

v) Fixed Assets, Intangible Assets and Capital Work-in progress.

a) Fixed assets are valued at cost with subsequent improvements thereto, except fixed assets of processing division existed on 30.09.2006, which are stated at revalued amount. Cost includes taxes (Net of VAT), duties (Net of Cenvat), inward freight and installation expenses.

b) Expenditure incurred on intangible assets, on or after 1st April''2003, being the date when AS-26 became mandatory, has been accounted for as intangible assets, at their acquisition cost.

vi) Preoperative Expenses Trial run costs and other preoperative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalized upto the date of commissioning of the respective asset.

vii) Depreciation and Amortization

a) Depreciation for the year on fixed assets other than revalued assets has been provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 as amended vide Notification No. GSR 756(E) dated 16th December, 1993 issued by the Department of Company Affairs.

b) Depreciation for the year on revalued assets of processing division has been provided on revalued amount on the basis of remaining useful life of the assets considered by the valuer.

c) Incremental carrying amounts on account of exchange fluctuation on foreign currency loans for acquisition of fixed assets are depreciated over the residual life of the related fixed asset.

d) Assets costing upto Rs. 5000/- are fully depreciated in the year of purchase.

e) Acquired Intangible assets are amortized over their estimated useful life as determined by the management at following rates on straight-line basis.

i) Computer Software : 16.21% Enabling assets : 4.75%

viii) Foreign Exchange Transaction/Translation

a) (i) Transactions in foreign currency are accounted for at the prevailing conversion rates, on the transaction date.

(ii) Monetary items denominated in Foreign Currency (except financial instruments designated as Hedge Instruments) are translated at year end conversion rates, in financial statement.

(iii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the statement of profit & loss.

b) The Company had adopted the AS-30 "Financial Instruments: Recognition and Measurement" for accounting of financial instruments, to the extent that such adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, Company law and other regulatory requirements.

The Company uses various financial instruments to hedge its exposure to movements in foreign exchange rates. A financial instrument is designated as an effective hedge after the management objectively evaluates at the inception of each contract as to whether the instrument is effective in offsetting the cash flows attributable to the hedged risk.

Hedge effectiveness of financial instruments designated as Hedging instruments is evaluated at the end of each financial reporting period.

In the absence of such hedge being identified or being continued to be identified as an effective hedge, the value thereof is taken to statement of Profit & Loss.

The effective portion of change in spot component of such forward contracts is taken into hedging reserve and ineffective portion, not designated as hedge is taken into statement of profit & Loss.

Amounts from hedging reserve account are transferred to Statement of Profit & Loss wheni)

i) The forecast transaction materializes,

ii) The hedging instrument expires or is sold, terminated or exercised (except for the replacement or rollover of a hedging instrument into another hedging instrument where such replacement or rollover is part of the Company''s hedging strategy),

iii) The hedge no longer meets the criteria for hedge accounting in AS 30,

iv) The Company revokes the designation.

ix) Research and Development

Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure is shown as addition to fixed assets.

x) Employee Benefits

a) Defined Contribution Plan :

The Company makes defined contribution to Provident fund and Superannuation schemes in the statement of Profit & Loss on accrual basis, based on actual liability.

b) Defined Benefit Plan :

The Company''s Liabilities on account of Gratuity fund and Leave encashment fund for benefit on retirement of employees are determined at the end of each Financial Year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per revised AS-15. These liabilities are funded on year-to-year basis by contribution to respective funds.

xi) Prior year Adjustments

Besides the debit/credit in previous year adjustment account, amounts related to previous year, arised / settled during the year have been debited / credited to respective heads of accounts.

xii) Replenishment

In respect of exports, indigenous raw material had to be used on occasions to be replenished subsequently by quantities allowed to be imported, under Duty Exemption scheme of the Government of India. Therefore, the cost of indigenous raw material consumed for export has been stated at its estimated import/duty free prices.

xiii) Impairment of Assets

Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 "Impairment of Assets" issued by ICAI.

xiv) Taxes on Income

a) The Tax payable method is followed for providing current tax liability. The difference between provision and payments, if any, are recognised in the year in which assessment is completed.

b) Credit available for Minimum Alternative Tax (MAT) of earlier years are adjusted against Income Tax payable for current year as per provisions of the Income Tax Act, 1961.

c) Deferred taxation liabilities are measured in respect of taxable temporary differences, calculated at prevailing enacted or substantially enacted regulations at the Balance Sheet date. Deferred tax assets are recognised subject to prudence only, if there is reasonable certainty that they will be realized.

xv) Contingent Liabilities/Assets

a) Provisions are recognized when the present obligation or past event gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.

c) Provisions and contingent liabilities/assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.


Mar 31, 2013

I) General

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles(GAAP) comprising of mandatory Accounting Standards, Guidance notes, etc. issued by ICAI.

ii) Revenue recognition

a) Sales comprise, sale of goods and is inclusive of excise duty and export incentives and after deduction of usual trade discount.

b) Income, Expenditure and Export Incentives/Benefits are accounted for on accrual basis.

c) Claims lodged with insurance companies are recognised as income on recognition by the Insurance Company. iii) Inventory Valuation

a) Inventories are valued at cost or net realizable value whichever is lower.

b) Cost is determined on FIFO / weighted average method as considered to the relevant stage of production.

c) Cost of finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

d) Processed value of goods on job is valued at contract rate. iv) Fixed Assets, Intangible Assets and Capital Work-in progress

a) Fixed assets are valued at cost with subsequent improvements thereto, except fixed assets of processing division which are stated at revalued amount. Cost includes taxes (Net of VAT), duties (Net of Cenvat), inward freight and installation expenses.

b) Expenditure incurred on intangible assets, on or after 1 st April''2003, being the date when AS-26 became mandatory, has been accounted for as intangible assets, at their acquisition cost.

v) Preoperative Expenses

Trial run costs and other preoperative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalized upto the date of commissioning of the respective asset.

vi) Depreciation and Amortization

a) Depreciation for the year on fixed assets other than revalued assets has been provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 as amended vide Notification No. GSR 756(E) dated 16th December, 1993 issued by the Department of Company Affairs.

b) Depreciation for the year on revalued assets of processing division has been provided on revalued amount on the basis of remaining useful life of the assets considered by the valuer.

c) Incremental carrying amounts on account of exchange fluctuation on foreign currency loans for acquisition of fixed assets are depreciated over the residual life of the related fixed asset.

d) Assets costing upto Rs. 5000/- are fully depreciated in the year of purchase.

e) Acquired Intangible assets are amortized over their estimated useful life as determined by the management at following rates on straight-line basis.

i) Computer Software : 16.21%

ii) Enabling Assets : 4.75%

vii) Foreign Exchange Transaction/Translation

a) (i) Transactions in foreign currency are accounted for at the prevailing conversion rates, on the transaction date.

(ii) Monetary items denominated in Foreign Currency (except financial instruments designated as Hedge Instruments) are translated at year end conversion rates, in financial statement.

(iii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the statement of profit & loss.

b) The Company had adopted the AS-30 "Financial Instruments: Recognition and Measurement" for accounting of financial instruments, to the extent that such adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, Company law and other regulatory requirements.

The Company uses various financial instruments to hedge its exposure to movements in foreign exchange rates. A financial instrument is designated as an effective hedge after the management objectively evaluates at the inception of each contract as to whether the instrument is effective in offsetting the cash flows attributable to the hedged risk.

Hedge effectiveness of financial instruments designated as Hedging instruments is evaluated at the end of each financial reporting period.

In the absence of such hedge being identified or being continued to be identified as an effective hedge, the value thereof is taken to statement of Profit & Loss.

The effective portion of change in spot component of such forward contracts is taken into hedging reserve and ineffective portion, not designated as hedge is taken into statement of profit & Loss.

Amounts from hedging reserve account are transferred to Statement of Profit & Loss when-

i) The forecast transaction materializes,

ii) The hedging instrument expires or is sold, terminated or exercised (except for the replacement or rollover of a hedging instrument into another hedging instrument where such replacement or rollover is part of the Company''s hedging strategy),

iii) The hedge no longer meets the criteria for hedge accounting in AS 30,

iv) The Company revokes the designation.

viii) Research and Development

Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure is shown as addition to fixed assets.

ix) Employee Benefits

a) Defined Contribution Plan :

The Company makes defined contribution to Provident fund and Superannuation schemes in the statement of Profit & Loss on accrual basis, based on actual liability.

b) Defined Benefit Plan :

The Company''s Liabilities on account of Gratuity fund and Leave encashment fund for benefit on retirement of employees are determined at the end of each Financial Year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per revised AS-15. These liabilities are funded on year-to-year basis by contribution to respective funds.

x) Prior year Adjustments

Besides the debit/credit in previous year adjustment account, amounts related to previous year, arised / settled during the year have been debited / credited to respective heads of accounts.

xi) Replenishment

In respect of exports, indigenous raw material had to be used on occasions to be replenished subsequently by quantities allowed to be imported, under Duty Exemption scheme of the Government of India. Therefore, the cost of indigenous raw material consumed for export has been stated at its estimated import/duty free prices.

xii) Impairment of Assets

Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 "Impairment of Assets" issued by ICAI.

xiii) Taxes on Income

a) The Tax payable method is followed for providing current tax liability. The difference between provision and payments, if any, are recognised in the year in which assessment is completed.

b) Credit available for Minimum Alternative Tax (MAT) of earlier years are adjusted against Income Tax payable for current year as per provisions of the Income Tax Act, 1961.

c) Deferred taxation liabilities are measured in respect of taxable temporary differences, calculated at prevailing enacted or substantially enacted regulations at the Balance Sheet date. Deferred tax assets are recognised subject to prudence only, if there is reasonable certainty that they will be realized.

xiv) Contingent Liabilities/Assets

a) Provisions are recognized when the present obligation of or past event gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.

c) Provisions and contingent liabilities/assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.


Mar 31, 2012

I) General

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles (GAAP) comprising of mandatory Accounting Standards, Guidance notes, etc. issued by ICAI.

ii) Revenue recognition

a) Sales comprise, sale of goods and is inclusive of excise duty and export incentives and after deduction of usual trade discount.

b) Income, Expenditure and Export Incentives/Benefits are accounted for on accrual basis.

c) Claims lodged with insurance companies are recognized as income on recognition by the Insurance Company.

iii) Inventory Valuation

a) Inventories are valued at cost or net realizable value whichever is lower.

b) Cost is determined on FIFO / weighted average method as considered to the relevant stage of production.

c) Cost of raw materials includes duties, net of canvas claims wherever applicable.

d) Processed value of goods on job is valued at contract rate.

iv) Fixed Assets, Intangible Assets and Capital Work-in progress

a) Fixed assets are valued at cost with subsequent improvements thereto, except fixed assets of processing division are stated at revalued amount. Cost includes taxes, duties (Net of Cenvat), inward freight and installation expenses.

b) Expenditure incurred on intangible assets, on or after 1st April'2003, being the date when AS-26 became mandatory, has been accounted for as intangible assets, at their acquisition cost.

v) preoperative Expenses

Trial run costs and other preoperative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalized up to the date of commissioning of the respective asset.

vi) Depreciation and Amortization

a) Depreciation for the year on fixed assets other than revalued assets has been provided in the manner specified in Schedule XIV to the Companies Act, 1956 as amended vide Notification No. GSR 756(E) dated 16th December,1993 issued by the Department of Company Affairs.

b) Depreciation for the year on revalued assets of processing division has been provided on revalued amount on the basis of remaining useful life of the assets considered by the value.

c) Incremental carrying amounts on account of exchange fluctuation on foreign currency loans for acquisition of fixed assets is depreciated over the residual life of the related fixed asset.

d) Assets costing up to Rs. 5000/- are fully depreciated in the year of purchase.

e) Acquired Intangible assets are mortised over their estimated useful life as determined by the management at following rates on straight-line basis.

Computer Software : 16.21%

Enabling Assets : 4.75%

vii) Foreign Exchange Transaction/Translation

a) (i) Transactions in foreign currency are accounted for at the prevailing conversion rates, on the transaction date.

(ii) Monetary items denominated in Foreign Currency (except financial instruments designated as Hedge Instruments) are translated at year end conversion rates, in financial statement.

(iii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the statement of profit & loss.

b) Pursuant to The Institute of Chartered Accountants of India (ICAI) announcement "Accounting for Derivatives" on the early adoption of Accounting Standard AS 30 "Financial Instruments: Recognition and Measurement", the Company had early adopted the AS-30 w.e.f 1st July, 2011 to the extent that such adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, Company law and other regulatory requirements.

The Company uses various financial instruments to hedge its exposure to movements in foreign exchange rates. A financial instrument is designated as an effective hedge after the management objectively evaluates at the inception of each contract as to whether the instrument is effective in offsetting the cash flows attributable to the hedged risk.

Hedge effectiveness of financial instruments designated as Hedging instruments is evaluated at the end of each financial reporting period.

In the absence of such hedge being identified or being continued to be identified as an effective hedge, the value thereof is taken to statement of Profit & Loss.

The effective portion of change in spot component of such forward contracts is taken into hedging reserve and ineffective portion, not designated as hedge is taken into statement of profit & Loss.

Amounts from hedging reserve account are transferred to Statement of Profit & Loss when.

i) The forecast transaction materializes,

ii) The hedging instrument expires or is sold, terminated or exercised (except for the replacement or rollover of a hedging instrument into another hedging instrument where such replacement or rollover is part of the Company's hedging strategy),

iii) The hedge no longer meets the criteria for hedge accounting in AS 30,

iv) The Company revokes the designation,

viii) Research and Development

Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure is shown as addition to fixed assets.

ix) Employee Benefits

a) Defined Contribution Plan :

The Company makes defined contribution to Provident fund and Superannuation schemes in the statement of Profit & Loss on accrual basis, based on actual liability.

b) Defined Benefit Plan :

The Company's Liabilities on account of Gratuity fund and Leave encashment fund for benefit on retirement of employees are determined at the end of each Financial Year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per revised AS-15. These liabilities are funded on year-to-year basis by contribution to respective funds.

x) prior year Adjustments

Besides the debit/credit in previous year adjustment account, amounts related to previous year, raised / settled during the year have been debited / credited to respective heads of accounts.

xi) Replenishment

In respect of exports, indigenous raw material had to be used on occasions to be replenished subsequently by quantities allowed to be imported, under Duty Exemption scheme of the Government of India. Therefore, the cost of indigenous raw material consumed for export has been stated at its estimated import/duty free prices.

xii) Impairment of Assets

Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 "Impairment of Assets" issued by ICAI.

xiii) Taxes on Income

a) The Tax payable method is followed for providing current tax liability. The difference between provision and payments, if any, are recognized in the year in which assessment is completed.

b) Credit available for Minimum Alternative Tax (MAT) of earlier years are adjusted against Income Tax payable for current year as per provisions of the Income Tax Act, 1961.

c) Deferred taxation liabilities are measured in respect of taxable temporary differences, calculated at prevailing enacted or substantially enacted regulations at the Balance Sheet date. Deferred tax assets are recognized subject to prudence only, if there is reasonable certainty that they will be realized.

xiv) Contingent Liabilities/Assets

a) Provisions are recognized when the present obligation of or past event gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.

c) Provisions and contingent liabilities/assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.


Mar 31, 2011

1) General

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles(GAAP) comprising of mandatory Accounting Standards, Guidance notes etc. issued by ICAI.

2) Revenue recognition

a) Sales comprise, sale of goods and is inclusive of excise duty and export incentives and after deduction of usual trade discount.

b) Income, Expenditure and Export Incentives/Benefits are accounted for on accrual basis.

c) Claims lodged with insurance companies are recognised as income on recognition by the Insurance Company.

3) Inventory Valuation

a) Inventories are valued at cost or net realisable value whichever is lower.

b) Cost is determined on FIFO / weighted average method as considered to the relevant stage of production.

c) Cost of raw materials includes duties, net of cenvat claims wherever applicable.

d) Processed value of goods on job is valued at contract rate.

4) Fixed Assets, Intangible Assets and Capital Work-in progress.

a) Fixed assets are valued at cost with subsequent improvements thereto. Fixed assets of Processing division are stated at revalued amount. Cost of acquisition includes taxes, duties (Net of Cenvat), inward freight and installation expenses.

b) Expenditure incurred on intangible assets, on or after 1st April, '2003, being the date when AS-26 became mandatory, has been accounted for as intangible assets, at their acquisition cost.

5) Preoperative Expenses

Trial run costs and other preoperative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalised upto the date of commissioning of the respective asset.

6) Depreciation and Amortisation

a) Depreciation for the year on fixed assets other than revalued assets has been provided in the manner specified in Schedule XIV to the Companies Act, 1956 as amended vide Notification No. GSR 756(E) dated 16th December,1993 issued by the Department of Company Affairs.

b) Depreciation for the year on revalued assets of processing division has been provided on revalued amount on the basis of remaining useful life of the assets considered by the valuer.

c) Incremental carrying amounts on account of exchange fluctuation on foreign currency loans for acquisition of fixed assets is depreciated over the residual life of the related fixed asset.

d) Assets costing upto Rs.5,000/- are fully depreciated in the year of purchase.

e) Acquired Intangible assets are amortised over their estimated useful life as determined by the management at following rates on straight-line basis.

i) Computer Software : 16.21 %

ii) Enabling assets: 4.75%

7) Foreign Exchange Transaction/Translation

a) Assets and liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of the Balance Sheet or at the contracted rates in case of forward contracts. The resulting difference arising out of said translations are adjusted as under :-

i) To the cost of assets where liabilities are in respect of acquisition of Fixed Assets.

ii) To Profit & Loss Account in respect of other transactions.

iii) In case of forward contracts other than for acquisition of fixed assets, the difference between the forward rate and the exchange rate on the date of the transaction is recognised as income or expense over the life of the contract.

b) Export sales are accounted for at the conversion rates as negotiated by banks and balance on actual realisation.

8) Research and Development

Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure is shown as addition to fixed assets.

9) Employee Benefits

a) Defined Contribution Plan :The Company makes defined contribution to Provident Fund and Superannuation schemes in the Profit & Loss Account on accrual basis, based on actual liability.

b) Defined Benefit Plan :The Company's Liabilities on account of Gratuity fund and Leave encashment fund for benefit on retirement of employees are determined at the end of each Financial Year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per revised AS-15. These liabilities are funded on year-to-year basis by contribution to respective funds.

10) Prior year Adjustments

Besides the debit/credit in previous year adjustment account, amounts related to previous year, arised / settled during the year have been debited/credited to respective heads of accounts.

11) Replenishment

In respect of exports, indigenous raw material had to be used on occasions to be replenished subsequently by quantities allowed to be imported, under Duty Exemption scheme of the Government of India. Therefore, the cost of indigenous raw material consumed for export has been computed at its estimated import duty free prices.

12) Repairs and Maintenance

Repairs of Plant & Machinery and Building do not include salaries and wages as these are debited under respective heads.

13) Impairment of Assets

Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 "Impairment of Assets" issued by ICAI.

14) Taxes on Income

a) The Tax payable method is followed for providing current tax liability. The difference between provision and payments, if any, are recognised in the year in which assessment is completed.

b) Credit available for Minimum Alternative Tax (MAT) of earlier years are adjusted against Income Tax payable for current year as per provisions of the Income Tax Act, 1961.

c) Deferred taxation liabilities are measured in respect of taxable temporary differences, calculated at prevailing enacted or substantially enacted regulations at the Balance Sheet date. Deferred tax assets are recognised subject to prudence only, if there is reasonable certainty that they will be realized.

15) Contingent Liabilities/Assets

a) Provisions are recognized when the present obligation of or past event gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.

c) Provisions and contingent liabilities/assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.


Mar 31, 2010

1) General

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting pnnciples(GAAP) comprising of mandatory Accounting Standards, Guidance notes, etc. issued by ICAI.

2) Revenue recognition

a) Sales comprise, sale of goods and is inclusive of excise duty and export incentives and after deduction of usual trade discount.

b) Income, Expenditure and Export Incentives/Benefits are accounted for on accrual basis.

c) Claims lodged with insurance companies are recognised as income on recognition by the Insurance Company.

3) Inventory Valuation

a) Inventories are valued at cost or net realisable value whichever is lower.

b) Cost is determined on FIFO / weighted average method as considered to the relevant stage of production.

c) Cost of raw materials includes duties, net of cenvat claims wherever applicable.

d) Processed value of goods on job is valued at contract rate.

4) Investments

All investments are in nature of long term and are valued at cost.

5) Fixed Assets, Intangible Assets and Capital Work-in progress.

a) Fixed assets are valued at cost with subsequent improvements thereto. Fixed assets of Processing division are stated at revalued amount. Cost of acquisition includes taxes, duties (Net of Cenvat), inward freight and installation expenses.

b) Expenditure incurred on intangible assets, on or after 1st April2003, being the date when AS-26 became mandatory has been accounted for as intangible assets, at their acquisition cost.

6) Preoperative Expenses

Trial run costs and other preoperative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance fixed assets are capitalised upto the date of commissioning of the respective asset.

7) Depreciation and Amortisation

a) Depreciation for the year on fixed assets other than revalued assets has been provided in the manner specified in Schedule XIV to the Companies Act, 1956 as amended vide Notification No. GSR 756(E) dated 16th December,1993 issued by the Department of Company Affairs.

b) Depreciation for the year on revalued assets of processing division has been provided on revalued amount on the basis of remaining useful life of the assets considered by the valuer.

c) Incremental carrying amounts on account of exchange fluctuation on foreign currency loans for acquisition of fixed assets is depreciated over the residual life of the related fixed asset.

d) Assets costing upto Rs.5000/- are fully depreciated in the year of purchase.

e) Acquired Intangible assets are amortised over their estimated useful life as determined by the management at following rates on straight-line basis.

i) Computer Software : 16.21%

ii) Enabling assets : 4.75%

8) Foreign Exchange Transaction/Translation

a) Assets and liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of the Balance Sheet or at the contracted rates in case of forward contracts. The resulting difference arising out of said translations are adjusted as under :-

i) To the cost of assets where liabilities are in respect of acquisition of Fixed Assets. ii) To Profit & Loss Account in respect of other transactions.

iii) In case of forward contracts other than for acquisition of fixed assets, the difference between the forward rate and the exchange rate on the date of the transaction is recognised as income or expense over the life of the contract.

b) Export sales are accounted for at the conversion rates as negotiated by banks and balance on actual realisation.

9) Research and Development

Revenue expenditure on research and development is charged against the profit of the year in which it is incurred Capital expenditure is shown as addition to fixed assets.

10) Employee Benefits

a) Defined Contribution Plan -.

The Company makes defined contribution to Provident fund and Superannuation schemes in the Profit & Loss Account on accrual basis, based on actual liability.

b) Defined Benefit Plan :

The Companys Liabilities on account of Gratuity fund and Leave encashment fund for benefit on retirement of employees are determined at the end of each Financial Year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per revised AS-15. These liabilities are funded on year-to-year basis by contribution to respective funds.

11) Prior year Adjustments

Besides the debit/credit in previous year adjustment account, amounts related to previous year, arised / settled during the year have been debited/credited to respective heads of accounts.

12) Replenishment

In respect of exports, indigenous raw material had to be used on occasions to be replenished subsequently by quantities allowed to be imported, under Duty Exemption scheme of the Government of India. Therefore, the cost of indigenous raw material consumed for export has been computed at its estimated import/duty free prices.

13) Repairs and Maintenance

Repairs of Plant & Machinery and Building do not include salaries and wages as these are debited under respective heads.

14) Impairment of Assets

Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 "Impairment of Assets" issued by ICAI.

15) Taxes on Income

a) The Tax payable method is followed for providing current tax liability. The difference between provision and payments, if any, are recognised in the year in which assessment is completed.

b) Credit available for Minimum Alternative Tax (MAT) of earlier years are adjusted against Income Tax payable for current year as per provisions of the Income Tax Act, 1961.

c) Deferred taxation liabilities are measured in respect of taxable temporary differences, calculated at prevailing enacted or substantially enacted regulations at the Balance Sheet date. Deferred tax assets are recognised subject to prudence only, if there is reasonable certainty that they will be realised.

16) Contingent Liabilities/Assets

a) Provisions are recognized when the present obligation of or past event gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.

c) Provisions and contingent liabilities/assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

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