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Accounting Policies of Oriental Aromatics Ltd. Company

Mar 31, 2022

1 Statement of Significant Accounting Policies and Practices :I. Background and Operations

Oriental Aromatics Limited is a Public limited Company and based at Mumbai, Maharashtra, India. It is incorporated under Companies Act, 1956 and its shares are listed on BSE Limited and National Stock Exchange Limited. The Company is having 3 manufacturing facilities at Ambernath - Maharashtra, Bareilly - Uttarpradesh, Vadodara - Gujarat and they are engaged in the manufacturing and sale of Fine chemicals i.e. camphor, perfumery & speciality aroma chemicals, fragrances and flavour in India.

II. Significant accounting policies(a) Basis of preparation of Financial Statements(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with of the Companies (Indian Accounting standards) Rules,2015 and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) certain financial assets and liabilities that is measured at fair value;

2) assets held for sale - measured at fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value;

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months)and other criteria set out in the Schedule III to the Companies Act, 2013.

(b) Use of estimates and judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/ materialised. Any revision to accounting estimates is recognised prospectively in current and future periods.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

The estimates and judgments that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:

i. Provisions and contingent liabilities - refer note (k)

ii. Measurement of defined benefit obligations - refer note (m)

iii. Impaiment of goodwill on amalgamation - refer note (w)

(c) Property, plant and equipment

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Capital Work-in-progress

Property, Plant and Equipment which are not ready for intended use on the date of balance sheet are disclosed as capital work-in-progress. It is carried at cost, less any recognised impairment loss. Such properties are classified and capitalised to the appropriate categories of Property, Plant and Equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for intended use.

Expenditure incurred during developmental and preliminary stages of the Company''s new projects, are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is so abandoned.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a Straight Line Method, over the estimated useful lives of assets. Leasehold land is amortised over of period lease. Leasehold improvements are amortised over the period of lease or estimated useful lives which ever is lower.

Depreciation is provided on the straight-line method applying the useful lives as prescribed in part C of Schedule II to the Companies Act, 2013. The range of estimated useful lives of Property, Plant & Equipment''s are as under:

Category

Useful Life

Buildings (including roads)

5 - 60 Years

Plant & Equipment

5 - 25 Years

Furniture & Fixture

10 Years

Office Equipment

2 - 5 Years

Vehicles

8 - 10 Years

Computer

2 - 6 Years

The management believes that the useful life as given above the best represent the period over which the management expects to use these assets. The Company reviews the useful lives and residual value at each reporting date.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(d) Intangible assets

Intangible assets are stated at cost, less accumulated amortisation and impairments, if any.

Amortisation method

The group amortizes Intangible assets with a useful life using the straight-line method over the period of 3 to 5 years from the date of acquisition.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(e) Lease

As a lessee

The Company''s leased asset primarily consist of leases for Land and Buildings. The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short term leases) and leases of low value assets. For these short term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made. A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

(f) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts.

(g) Contract balances:

Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e. only a passage of time is required to before payment of the consideration is due). Trade receivables are recognised at the value of sales less allowance for bad and doubtful debts and expected credit loss.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfer goods and services to the customer, a contract liability is recognised when the payment is made or the payment is due, whichever is earlier. Contract liabilities are recognised as revenue when the Company performs under the contract.

(h) Inventories

Inventories include Raw Material, Work-in-Progress, finished goods, Stores & spares, Consumables and Packing Materials are valued at lower of cost and net realisable value. Materials in transit is valued at cost incurred till date.

Raw Materials - Cost include cost of purchases and other costs incurred in bringing the inventories to their present location and condition. Cost is determined using First in first out (FIFO) basis.

Finished/Semi-Finished Goods - cost includes cost of direct material, labour, other direct cost and a proportion of fixed manufacturing overheads allocated based on the normal operating capacity but excluding borrowing costs. Cost is determined on weighted moving average cost basis.

Stores, Spare Parts, Consumables, Packing Materials etc. - cost is determined on FIFO basis.

(i) Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

* those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

* those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in the Statement of Profit and Loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value . Transaction costs of financial assets carried at fair value through the Statement of Profit and Loss are expensed in the Statement of Profit and Loss.

Debt instruments:

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

* Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in other income using the effective interest rate method.

* Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment losses, interest revenue which are recognised in the Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to the Statement of Profit and Loss and recognised in other income/expense. Interest income from these financial assets is included in other income using the effective interest rate method.

* Fair value through profit and loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through Statement of Profit and Loss. Interest income from these financial assets is included in other income.

Equity instruments:

The Company subsequently measures all equity investments at fair value. Where the Company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognised in the Statement of Profit and Loss as other income when the Company''s right to receive payments is established.

(iii) Impairment of financial assets

The Company recognises a loss allowance for Expected Credit Losses (ECL) on financial assets that are measured at amortised cost and at FVOCI. The credit loss is difference between all contractual cash flows that are due to an entity in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate. This is assessed on an individual or collective basis after considering all reasonable and supportable including that which is forwardlooking.

The Company''s trade receivables or contract revenue receivables do not contain significant financing Branch and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall, being simplified approach for recognition of impairment loss allowance.

Under simplified approach, the Company does not track changes in credit risk. Rather it recognizes impairment loss allowance based on the lifetime ECL at each reporting date right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables.

The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forwardlooking estimates are analysed. For financial assets other than trade receivables, the Company recognises 12-month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition.

The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. If, in a subsequent period, credit quality of the instrument improves such that there is no longer significant increase in credit risks since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12 months ECL. Impairment loss allowance including ECL or reversal recognized during the period is recognized as income/ expense in the Statement of Profit and Loss.

(iv) De-recognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities

Initial Recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair value through profit or loss. The Company''s financial liabilities includes trade and other payables, loans and borrowings including bank overdrafts and derivative instruments."

Subsequent measurement

Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss."

Derivative financial instruments

Derivative financial instruments such as forward currency contracts, option contract and cross currency swap, to hedge its foreign currency risks are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value with changes in fair value recognised in the Statement of Profit and Loss in the period when they arise.

Borrowings

Borrowings are initially recognised at net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.

(j) Borrowing costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue.

(k) Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events.

(l) Revenue from Contracts with Customers

The Company recognizes revenue, whenever control over distinct goods or services is transferred to the customer; i.e. when the customer is able to direct the use of the transferred goods or services and obtains substantially all of the remaining benefits, provided a contract with enforceable rights and obligations exists and amongst others collectability of consideration is probable taking into account customer ''s creditworthiness.

Revenue is the transaction price the Company expects to be entitled to. In determining the transaction price, the Company considers effects of variable consideration, the existence of significant financing contracts, noncash consideration and consideration payable to the customer, if any. The Company considers whether there are other promises in the contract that are separate performance obligations to which the transaction price needs to be allocated.

Sale of goods -

Revenues are recognized at a point in time when control of the goods passes to the buyer, usually upon either at the time of dispatch or delivery. In case of export sale, it is usually recognised based on the shipped-on board date as per bill of lading. Revenue from sale of goods is net of taxes and recovery of charges collected from customers like transport, packing etc.

Other operating revenue - Export incentives -

Export Incentives under the, “Duty Draw back Scheme” , etc. are accounted in the year of export.

Other Income Dividend income on investments is recognised when the right to receive dividend is established. Interest income is recognized on a time proportionate basis taking into account the amounts invested and the rate of interest. For all financial instruments measured at amortised cost, interest income is recorded using the Effective interest rate method to the net carrying amount of the financial assets.

(m) Employee benefits

Defined Contribution Plans such as Provident Fund etc., are charged to the Profit and Loss Account as incurred.

Defined Benefit Plans - The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of defined benefit obligations at the end of the reporting period less fair value of plan assets. The defined benefit obligations is calculated annually by actuaries through actuarial valuation using the projected unit credit method.

The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

a) Service costs comprising current service costs, past-service costs, gains and losses on curtailment and nonroutine settlements; and

(b) Net interest expense or income"

Re-measurement comprising of actuarial gains and losses arising from:

(a) Re-measurement of Actuarial(gains)/losses

(b) Return on plan assets, excluding amount recognized in effect of asset ceiling

(c) Re-measurement arising because of change in effect of asset ceiling are recognised in the period in which they occur directly in Other comprehensive income. Re-measurement are not reclassified to profit or loss in subsequent periods.

Other Long term Employee Benefits are recognised in the same manner as Defined Benefit Plans.

Termination benefits are recognised as and when incurred. However, the termination benefits which fall due more than twelve months after the Balance Sheet date are discounted using the yield on Government Bonds.

(n) Foreign currency transactions

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.

(o) Income tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are off set where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively

(p) Earnings Per Share Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(q) Research and Development

Revenue expenditure, including overheads on Research and Development, is charged out as an expense through the natural heads of account in the year in which incurred. Expenditure which results in the creation of capital assets is taken as Fixed Assets and depreciation is provided on such assets as are depreciable.

(r) Cash Flow Statement

Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated

(s) Exceptional Items

When an item of income or expense within profit or loss from ordinary activity is of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the year, the nature and amount of such items is disclosed as exceptional items.

(t) Dividend

The Company recognizes a liability to pay dividend when the distribution is authorised and the distribution is no longer at the discretion of the Company i.e. when the dividend distribution is being approved by the shareholders. A corresponding amount is recognized directly in equity.

(u) Segment Report

Operating segments are reported in a manner consistent with the internal reporting provided to Chief Operating Decision Maker(CODM).

The Company has identified its Managing Director as CODM who is responsible for allocating resources and assessing performance of the operating segments and makes strategic decisions.

(v) Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. Government grants related to revenue are recognised on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. When the grant relates to an asset, it is recognized as income over the expected useful life of the asset. In case a non-monetary asset is given free of cost it is recognised at a fair value. When loan or similar assistance are provided by government or related institutions, with an interest rate below the current applicable market rate, the effect of this favorable interest is recognized as government grant. The loan or assistance is initially recognized and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received.

(w) Impairment of Non-Financial Assets

The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non financial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognised in profit or loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss.

(x) Recent Accounting Developments

The Ministry of Corporate Affairs (“MCA”) notifies new standards / amendments under Companies (Indian

Accounting Standards) Rules as issued from time to time. On 23rd March, 2022, MCA amended the Companies

(Indian Accounting Standards) Amendment Rules, 2022, as below :

(a) Ind AS 16 - Property, plant and equipment - The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022.

(b) Ind AS 37 - Provisions, contingent liabilities and contingent assets - The amendment specifies that the ‘cost of fulfilling'' a contract comprises the ‘costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022, although early adoption is permitted.

(c) Ind AS 103 - Business combinations - The amendment adds a new exception in Ind AS 103 for liabilities and contingent liabilities.

(d) Ind AS 109 - Financial instruments - The amendment clarifies which fees an entity includes when it applies the ‘10%'' test in assessing whether to derecognise a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other''s behalf.

The Company is in the process of evaluating the impact of these amendments.


Mar 31, 2018

(a) Basis of preparation of Financial Statements

(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting standards) Rules,2015 and other relevant provisions of the Act.

These financial statements for the year ended 31st March 2018 are the first financials with comparatives prepared under Ind AS. For all previous periods including the year ended 31st March 2017, the company prepared its financial statements in accordance with the accounting standards notified under companies (Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the act (hereinafter referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India.

The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the date of transition to Ind AS.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) certain financial assets and liabilities that is measured at fair value;

2) assets held for sale - measured at fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value;

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the company’s normal operating cycle (twelve months)and other criteria set out in the Schedule III to the Companies Act, 2013.

(b) Use of estimates and judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

The estimates and judgments that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:

(i) Contingent Liabilities and Contingent Assets

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets: Contingent Assets are neither recognised or disclosed in the financial statements.

(ii) Measurement of defined benefit obligations

The present value of the defined benefit obligations depends on a number of factors that are determined on an actuarial basis. The assumptions used in determining the net interest cost/(income) for defined benefit plans include the discount rate. Any changes in these assumptions will impact the carrying amount of defined benefit obligations.

(c) Property, plant and equipment

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Capital Work-in-progress

Property, Plant and Equipment which are not ready for intended use on the date of balance sheet are discolsed as capital work-in-progress. It is carried at cost, less any recognised impairment loss. Such properties are classified and capitalised to the appropriate categories of Property, Plant and Equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for intended use.

Expenditure incurred during developmental and preliminary stages of the Company’s new projects, are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is so abandoned.

Transition to Ind AS

On transition to Ind AS, company has elected to continue with the carrying value of all of its property , plant and equipment recognised as at 1 April, 2016, measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a Straight Line Method, over the estimated useful lives of assets. Leasehold land is amortised over of period lease. Leasehold improvements are amortised over the period of lease or estimated useful lives which ever is lower.

The company depreciates its property, plant and equipment over the useful life in the manner prescribed in Schedule II of the Act, and management believe that useful lives of assets are same as those prescribed in schedule II of the Act.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(d) Intangible assets

Intangible assets are stated at cost, less accumulated amortisation and impairments, if any.

Amortisation method

The Company amortizes Intangible assets with a useful life using the straight-line method over the period of 5 years from the date of acquisition.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

Transition to Ind AS

On transition to Ind AS the company has elected to continue with the carrying value of all of intangible assets recognised as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

(e) Lease

As a lessee Operating Lease

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases.

(f) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts.

(g) Trade receivables

Trade receivables are recognised at the value of sales less allowance for bad and doubtful debts and expected credit loss.

(h) Inventories

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods :

i. Principal products are valued at lower of cost and net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Costs of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs incurred in bringing the inventories to their present location & condition.

(i) Investments and other financial assets

(i) Classification

The company classifies its financial assets in the following measurement categories:

* those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

* those measured at amortised cost.

The classification depends on the company’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in the Statement of Profit and Loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

(ii) Measurement

At initial recognition, the company measures a financial asset at its fair value . Transaction costs of financial assets carried at fair value through the Statement of Profit and Loss are expensed in the Statement of Profit and Loss.

Debt instruments:

Subsequent measurement of debt instruments depends on the company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

* Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in other income using the effective interest rate method.

* Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition

of impairment losses, interest revenue which are recognised in the Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to the Statement of Profit and Loss and recognised in other income/expense. Interest income from these financial assets is included in other income using the effective interest rate method.

* Fair value through profit and loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through Statement of Profit and Loss. Interest income from these financial assets is included in other income.

Equity instruments:

The company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognised in the Statement of Profit and Loss as other income when the Company’s right to receive payments is established.

(iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

(j) Derivative financial instruments

Derivative financial instruments such as forward currency contracts, option contract and cross currency swap, to hedge its foreign currency risks are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value with changes in fair value recognised in the Statement of Profit and Loss in the period when they arise.

(k) Borrowings

Borrowings are initially recognised at net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.

Preference shares, which are mandatorily redeemable on a specific date are classified as liabilities. The dividends on these preference shares are recognised in Statement of Profit and Loss as finance costs.

(l) Borrowing costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue.

(m) Provisions and contingent liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events.

(n) Revenue recognition

Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates, discounts, loyalty discount, value added taxes and amounts collected on behalf of third parties.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the company and specific criteria have been met for each of the company’s activities as described below.

Sale of goods -

Sales are recognised when substantial risk and rewards of ownership are transferred to customer, in case of domestic sales take place when goods are dispatched or delivery in handed over to transporter/customers, in case of export sales place when goods are shipped onboard based on bill of lading.

Other operating revenue - Export incentives -

Export Incentives under the, “Duty Draw back Scheme” , etc. is accounted in the year of export.

(o) Employee benefits

Defined Contribution Plans such as Provident Fund etc., are charged to the Profit and Loss Account as incurred.

Defined Benefit Plans - The present value of the obligation under such plan, is determined based on an actuarial valuation using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Profit and Loss Account. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis. The Company has an obligation to make good the shortfall, if any.

Other Long term Employee Benefits are recognised in the same manner as Defined Benefit Plans.

Termination benefits are recognised as and when incurred. However, the termination benefits which fall due more than twelve months after the Balance Sheet date are discounted using the yield on Government Bonds.

(p) Foreign currency transactions

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.

(q) Income tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences arrising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determind using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related defferd income tax assets is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are off set where the company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the company will pay normal income tax during the specified period.

(r) Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

-the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

-the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(s) Research and Development

Revenue expenditure, including overheads on Research and Development, is charged out as an expense through the natural heads of account in the year in which incurred. Expenditure which results in the creation of capital assets is taken as Fixed Assets and depreciation is provided on such assets as are depreciable.

(t) New standards and interpretations not yet adopted Ind AS 115 Revenue from Contracts with Customers:

Ind AS 115, Revenue from Contracts with Customers was initially notified under the Companies (Indian Accounting Standards) Rules, 2015.

The standard applies to contracts with customers. The core principle of the new standard is that an entity should recognize revenue to depict transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, timing and uncertainty of revenues and cash flows arising from the entity’s contracts with customers. The new standard offers a range of transition options. An entity can choose to apply the new standard to its historical transactions - and retrospectively adjust each comparative period. Alternatively, an entity can recognize the cumulative effect of applying the new standard at the date of initial application and make no adjustments to its comparative information. The chosen transition option can have a significant effect on revenue trends in the financial statements. A change in the timing of revenue recognition may require a corresponding change in the timing of recognition of related costs.

(u) Amendment to Ind AS 21, Foreign currency transactions and advance consideration:

On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 effective from April 1, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The standard is applicable from 1st April 2018 i.e. Financial Year 2018-19 and there is no material impact expected on the financial statements.


Mar 31, 2017

25. SIGNIFICANT ACCOUNTING POLICIES:

a. Basis of Preparation of Financial Statements

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

D. PROPERTY, PLANT AND EQUIPMENT:

(i) Property, Plant and Equipment are capitalized at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Property, Plant and Equipment are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on Property, Plant and Equipment is provided on the Straight Line Method (S.L.M.) by writing off 95% of the cost of the assets over the ‘Useful Life’ of the assets in accordance with the provisions of Section 123(2) read with part C of Schedule II of the Companies Act, 2013.

(iii) Continuous Process Plant as defined in the said Schedule has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other than temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Costs of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid in terms of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and the same is reviewed at each balance sheet date.

i . BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of exchange prevailing at the year end and resulted gains / losses are recognized in the profit & loss account except in case of long term borrowings, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. FINANCIAL DERIVATIVE INSTRUMENTS OTHER THAN FORWARD FOREIGN EXCHANGE CONTRACTS:

The Company enters into interest rate swap contracts that is not in the nature of forward contracts designated under AS 11, to hedge its risks with respect to interest rate exposure arising using foreign currency loan. In accordance with the ICAI announcement, at every year end, all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company, keeping in view the principle of prudence as enunciated in AS 1, ‘Disclosure of Accounting Policies’. Any reduction to fair value and any reversal of such reductions are included in the Statement of Profit and Loss of the year.

l. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

m. EMPLOYEE BENEFITS:

Short Term Employee Benefits-

All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Defined Contribution plans:

Company’s contributions paid / payable during the year to Provident and Family pension Funds, Super annotation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Defined Benefits plans:

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

n. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

o. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, such reimbursement is recognized to the extent of provision or contingent liability as the case may be, only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are not recognized or disclosed in the financial statements.

26. Contingent liabilities (to the extent not provided for (Net of interest, if any, as may be levied on conclusion of relevant cases) and Commitments :-

a. Contingent liabilities:

i) Disputed Income Tax matters (including interest up to the date of demand, if any), Rs, 163.03 Lakh (Previous year Rs, 352.26 Lakh) which has been paid and shown under Note no. 15.

ii) Disputed Labour claim made by ex-employees estimated amounting to Rs, 9.96 Lakh approx.

(Previous year Rs, 9.96 Lakh).

iii) Pine Chemicals Limited which was amalgamated with the Company had earlier filed a Writ Petition challenging the retrospective rescission by the Government of Jammu & Kashmir, of the Backward Area Incentive Scheme in respect of Sales Tax paid on Gum Resin for the period five years ending 31st March, 1984. The High Court of Jammu & Kashmir has passed an order directing the Sales Tax Department to review the Company’s claim in the light of Supreme Court decision on a similar issue. The Company had filed Writ Petition before the Hon. High Court at Jammu which is still pending disposal.

In the event of the claim being decided in favour of the Company, the Company would be entitled to refund of ‘ 59.03 Lakh in respect of two years ended 31/03/1984 and in the event of it being decided against the Company, the Company will be liable to repay Rs, 98.11 Lakh in respect of three years ended 31st March, 1982, which Pine Chemicals Limited had accounted for as income in earlier years. The refund or payment as the case may be will be accounted for after the final outcome of the petition.

iv) The Company’s pending litigations comprise of claims against the Company and proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.


Mar 31, 2016

a. Basis of Preparation of Financial Statements

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

d. FIXED ASSETS:

(i) Fixed assets are capitalized at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on Fixed Assets is provided on the Straight Line Method (S.L.M.) by writing off 95% of the cost of the assets over the ‘Useful Life'' of the assets in accordance with the provisions of Section 123(2) read with part C of Schedule II of the Companies Act, 2013.

(iii) Continuous Process Plant as defined in the said Schedule has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other than temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Costs of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid in terms of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and the same is reviewed at each balance sheet date.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of exchange prevailing at the year end and resulted gains / losses are recognized in the profit & loss account except in case of long term borrowings, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. FINANCIAL DERIVATIVE INSTRUMENTS OTHER THAN FORWARD FOREIGN EXCHANGE CONTRACTS:

The Company enters into interest rate swap contracts that is not in the nature of forward contracts designated under AS 11, to hedge its risks with respect to interest rate exposure arising using foreign currency loan. In accordance with the ICAI announcement, at every year end, all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company, keeping in view the principle of prudence as enunciated in AS 1, ‘Disclosure of Accounting Policies''. Any reduction to fair value and any reversal of such reductions are included in the Statement of Profit and Loss of the year.

l. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

m. EMPLOYEE BENEFITS:

Short Term Employee Benefits-

All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Defined Contribution plans:

Company''s contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Defined Benefits plans:

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

n. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

o. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if


Mar 31, 2015

A. Basis of Preparation of Financial Statements

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

d. FIXED ASSETS:

(i) Fixed assets are capitalised at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on Fixed Assets is provided on the Straight Line Method (S.L.M.) by writing off 95% of the cost of the assets over the ''Useful Life'' of the assets in accordance with the provisions of Section 123(2) read with part C of Schedule II of the Companies Act, 2013.

(iii) Continuous Process Plant as defined in the said Schedule has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other than temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Costs of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid in terms of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and the same is reviewed at each balance sheet date.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of ex-change prevailing at the year end and resulted gains / losses are recognized in the profit & loss account except in case of long term borrowings, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. FINANCIAL DERIVATIVE INSTRUMENTS OTHER THAN FORWARD FOREIGN EXCHANGE CONTRACTS:

The Company enters into interest rate swap contracts that is not in the nature of forward contracts designated under AS 11, to hedge its risks with respect to interest rate exposure arising using foreign currency loan. In accordance with the ICAI announcement, at every year end, all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company, keeping in view the principle of prudence as enunciated in AS 1, ''Disclosure of Accounting Policies''. Any reduction to fair value and any reversal of such reductions are included in the Statement of Profit and Loss of the year.

l. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

m. EMPLOYEE BENEFITS:

Short Term Employee Benefits- All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Defined Contribution plans:

Company''s contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Defined Benefits plans:

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

n. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

o. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, such reimbursement is recognized to the extent of provision or contingent liability as the case may be, only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are not recognised or disclosed in the financial statements.


Mar 31, 2014

A. Basis of Preparation of Financial Statements

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

d. FIXED ASSETS:

(i) Fixed assets are capitalised at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner as specified in Schedule XIV to the Companies Act, 1956.

(iii) Continuous Process Plant as defined in the said Schedule has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other than temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value. ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Costs of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Tax credit is recognized in respect of Minimum Alternate Tax (MAT) paid in terms of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and the same is reviewed at each balance sheet date.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of ex-change prevailing at the year end and resulted gains / losses are recognized in the profit & loss account except in case of long term borrowings, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. FINANCIAL DERIVATIVE INSTRUMENTS OTHER THAN FORWARD FOREIGN EXCHANGE CONTRACTS:

The Company enters into interest rate swap contracts that is not in the nature of forward contracts designated under AS 11, to hedge its risks with respect to interest rate exposure arising using foreign currency loan. In accordance with the ICAI announcement, at every year end, all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company, keeping in view the principle of prudence as enunciated in AS 1, ''Disclosure of Accounting Policies''. Any reduction to fair value and any reversal of such reductions are included in the Statement of Profit and Loss of the year.

l. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

m. EMPLOYEE BENEFITS:

Short Term Employee Benefits- All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Defined Contribution plans:

Company''s contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Defined Benefits plans:

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

n. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

o. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and c) the amount of the obligation can be reliably estimated.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, such reimbursement is recognized to the extent of provision or contingent liability as the case may be, only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote. Contingent assets are not recognised or disclosed in the financial statements.


Mar 31, 2013

A. Basis of Preparation of Financial Statements

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established.

d. FIXED ASSETS:

(i) Fixed assets are capitalised at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner as specified in Schedule XIV to the Companies Act, 1956.

(iii) Continuous Process Plant as defined in the said Schedule has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other then temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value. ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Tax credit is recognised in respect of Minimum Alternate Tax (MAT) paid in terms of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and the same is reviewed at each balance sheet date.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of ex-change prevailing at the year end and resulted gains / losses are recognized in the profit & loss account except in case of long term borrowings, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. FINANCIAL DERIVATIVE INSTRUMENTS OTHER THAN FORWARD FOREIGN EXCHANGE CONTRACTS:

The Company enters into interest rate swap contracts that is not in the nature of forward contracts designated under AS 11, to hedge its risks with respect to interest rate exposure arising using foreign currency loan. In accordance with the ICAI announcement, at every year end, all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company, keeping in view the principle of prudence as enunciated in AS 1, Disclosure of Accounting Policies''. Any reduction to fair value and any reversal of such reductions are included in the Statement of Profit and Loss of the year.

l. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

m. EMPLOYEE BENEFITS:

Short Term Employee Benefits- All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Define Contribution plans:

Company''s contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Define Benefits plans:

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

n. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

o. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, such reimbursement is recognized to the extent of provision or contingent liability as the case may be, only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are not recognised or disclosed in the financial statements.


Mar 31, 2012

A. Basis of Preparation of Financial Statements

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

d. FIXED ASSETS:

(i) Fixed assets are capitalised at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner as specified in Schedule XIV to the Companies Act, 1956.

(iii) Continuous Process Plant as defined in the said Schedule has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other then temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

- Tax credit is recognised in respect of Minimum Alternate Tax (MAT) paid in terms of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and the same is reviewed at each balance sheet date.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of ex-change prevailing at the year end and resulted gains / losses are recognized in the profit & loss account except in case of long term borrowings, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. FINANCIAL DERIVATIVE INSTRUMENTS OTHER THAN FORWARD FOREIGN EXCHANGE CONTRACTS:

In respect of derivative instruments. other than forward foreign exchange contracts, premium paid, gains / losses on settlement and losses on restatement are recognized in statement of profit and loss as and when they arise except in cases where they relate to acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

l. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

m. EMPLOYEE BENEFITS:

Short Term Employee Benefits-

All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Define Contribution plans:

Company's contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Define Benefits plans:

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

n. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

o. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, such reimbursement is recognized to the extent of provision or contingent liability as the case may be, only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

contingent assets are not recognised or disclosed in the financial statements.


Mar 31, 2011

A. GENERAL:

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

d. FIXED ASSETS:

(i) Fixed assets are capitalised at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner as specified in Schedule XIV to the Companies Act, 1956.

(iii) Continuous Process Plant' as defined in the said Schedule, has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other then temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on monthly weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock are determined using the absorption costing principles and determined on yearly weighted average. Costs include cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of ex-change prevailing at the year end and resulted gains / losses are recognized in the profit & loss account. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

l. EMPLOYEE BENEFITS:

Define Contribution plans:

Company's contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Define Benefits plans:

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

m. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

n. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and c the amount of the obligation can be reliably estimated.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, such reimbursement is recognized to the extent of provision or contingent liability as the case may be, only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote. Contingent assets are not recognised or disclosed in the financial statements.


Mar 31, 2010

A. GENERAL:

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

d. FIXED ASSETS:

(i) Fixed assets are capitalised at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner as specified in Schedule XIV to the Companies Act, 1956.

(iii) Continuous Process Plant as defined in the said Schedule, has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other then temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost and net realizable value. However, items of raw material are considered to be realizable at cost if finished products in which they will be used, are expected to be sold at or above cost. Cost is determined on weighted average.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost and net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock are determined using the absorption costing principles. Costs includes cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of ex-change prevailing at the year end and resulted gains / losses are recognized in the profit & loss account. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

l. EMPLOYEE BENEFITS:

Define Contribution plans :

Companys contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Define Benefits plans :

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

m. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

n. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Where some or all of the expenditure required to settle a provLion is expected to be reimbursed by another party, such reimbursement is recognized to the exter of provision or contingent liability as the case may be, only when it is virtually certain that the rf mbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent assets are not recognised or disclosed in the financial statements.


Mar 31, 2009

A. GENERAL:

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

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(iii) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

c. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the Customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT. Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established

d. FIXED ASSETS:

(i) Fixed assets are capitalised at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and net of Cenvat credit.

(ii) Fixed assets are stated at cost less accumulated depreciation.

e. DEPRECIATION / AMORTISATION:

(i) Premium on leasehold land is being amortized over the period of lease.

(ii) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner as specified in Schedule XIV to the Companies Act, 1956.

(iii) Continuous Process Plant as defined in the said Schedule, has been considered on technical assessment and depreciation provided accordingly.

f. INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for diminution being other then temporary.

g. INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost or net realizable value. However these items are considered to be realizable at cost if finished products in which they will be used, are expected to be sold at or above cost. Cost is determined on weighted average / FIFO basis.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost or net realizable value. ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock are determined using the absorption costing principles. Costs includes cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

h. ACCOUNTING FOR TAXES ON INCOME:

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the provisions as per Income-Tax Act, 1961.

The deferred tax for timing differences between book profits and tax profits for the year is accounted for using the tax rules and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

The provision for fringe benefit tax has been made in respect of employees benefits and other specified expenses as determined under the Income Tax Act, 1961.

i. BORROWING COST:

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other Borrowing costs are charged to Profit & Loss Account.

j. TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in Foreign currency are recorded at the rate of exchange in force at the date of the transactions. Foreign currency assets and liabilities are stated at the rate of exchange prevailing at the year end and resulted gains / losses are recognized in the profit & loss account. Premium / Discount in respect of Forward Foreign Exchange contracts is recognized over the life of the contract.

k. RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue Expenditure is charged to the Profit & Loss account and Capital Expenditure is treated as addition to Fixed Assets.

l. EMPLOYEE BENEFITS:

Define Contribution plans :

Companys contributions paid / payable during the year to Provident and Family pension Funds, Super annuation fund (wherever opted) and ESIC are recognized in the Profit and Loss Account.

Define Benefits plans :

Gratuity liability under the Payment of Gratuity Act, 1972 is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on Actuarial Valuation.

Actuarial gains/ losses are immediately taken to profit and loss account and are not deferred.

m. IMPAIRMENT OF ASSETS:

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

n. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) the probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, such reimbursement is recognized to the extent of provision or contingent liability as the case may be, only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote. Contingent assets are not recognised or disclosed in the financial statements.


Mar 31, 2008

A) Basis of Accounting

The Financial statements are prepared under the historical cost convention, in accordance with Generally Accepted Accounting Principles in India, theAccounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

b) Use of Estimates ,

The preparation of financial statements in conformity with generally accepted accounting principals requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3.2 Accounting policies adopted by the company are as under.

A) VALUATION OF FIXED ASSETS:

Fixed Assets are valued at the cost of acquisition or construction inclusive of inward freight, duties, taxes and incidental expenses, less Cenvat credit/excise incentive, related to such acquisition till such assets are put to use , less specific grants received.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets net of estimated realizable value of scrap is written off as Loss on Discarding of Assets.

B) DEPRECIATION

Depreciation has been provided on the Straight Line Method:

a. In respect of assets acquired before 3 I st December, 1987, at the rates prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired after 31 st December, 1987 at the rates and in the manner specified in the Schedule XIV of the Companies Act, 1956.

c. Depreciation on the Fixed Assets added/disposed of /discarded during the year has been provided on pro-rata basis with reference to the date of addition/disposal /discarding.

d. In respect of leasehold land and site development, at the yearly amortization rate arrived at on the basis of lease period.

C) VALUATION OF INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for permanent diminution in value.

D) VALUATION OF INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, Components, Stores & Spares are valued at lower of cost or net realizable value. However these items are considered to be realizable at cost if finished products in which they will be used, are expected to be sold at or above cost. Cost is determined on weighted average / FIFO basis.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock are determined using the absorption costing principles. Costs includes cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

E) FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded in rupees by applying the exchange rate at the date of the transaction. Gains or Losses on settlement of the transactions are recognized in the Profit and Loss Account.

At the Balance Sheet date, monetary assets and liabilities in foreign currency are restated by applying the closing rate, and the difference arising out of such conversion is recognized in the Profit and Loss Account.

F) REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established.

G) RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue expenditure is charged to the Profit & Loss account and capital expenditure is treated as addition to Fixed Assets.

H) EMPLOYEES BENEFITS :

Short Term

Short Term Employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Long Term

Post employment and other long-term employee benefits are charged off in the year in which the employee has rendered service. The expenses are recongnised at the present value of the amount payable determined using actuarial valuation techniques. Actual gain and losses in respect of post employment and other long-term benefits are charged to Profit and Loss account.

I) PROVISION FOR TAXATION :

Income Tax expense comprises of current tax, fringe benefit tax (FBT) and deferred tax charge or credit.

Provision for Income tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income Tax Act 1961.

Provision for Fringe Benefit Tax is made on the basis of fringe benefits provided /deemed to be provided during the year at rates and values applicable to the relevant assessment year.

The deferred tax for timing difference between book and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as pi the Balance Sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future and are reviewed for appropriateness of the respective carrying values at each Balance sheet date.

J) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions for statutory matters and other claims are recognized when:

The Company has a present legal or constructive obligation, the likelihood that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.

Provision is recognized when the company has recognized a present obligation as a result of past events and it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made based on technical evaluation and past experience.

A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements.

Provisions and contingencies are reviewed at each balance Sheet date and adjusted to reflect the correct management estimates.

K) IMPAIREMENT OF ASSETS

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised immediately as income in the profit and loss account.


Mar 31, 2007

1. We have audited the attached Balance Sheet of CAMPHOR & ALLIED

a) Basis of Accounting

The Financial statements are prepared under the historical cost convention, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principals requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3.2 Accounting policies adopted by the company are as under

A) VALUATION OF FIXED ASSETS:

Fixed Assets are valued at the cost of acquisition or construction inclusive of inward freight, duties, taxes and incidental expenses, less Cenvat credit/excise incentive, related to such acquisition till such assets are put to use , less specific grants received.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets net of estimated realizable value of scrap is written off as Loss on Discarding of Assets.

B) DEPRECIATION:

Depreciation has been provided on the Straight Line Method:

a. In respect of assets acquired before 31st December, 1987, at the rates prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired after 3 I st December, 1987 at the rates and in the manner specified in the Schedule XIV of the Companies Act, 1956.

c. Depreciation on the Fixed Assets added/disposed of/discarded during the year has been provided on pro-rata basis with reference to the date of addition/disposal /discarding.

d. In respect of leasehold land and site development, at the yearly amortization rate arrived at on the basis of lease period.

C) VALUATION OF INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for permanent diminution in value.

D) VALUATION OF INVENTORIES: Inventories are valued on the following basis:

a. Raw material, Stores & Spares are valued at lower of cost or net realizable value and packing materials are valued at cost. Cost is determined on weighted average basis.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost or net realizable value, ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock includes cost of conversion and other costs and excise duty as applicable incurred in bringing the inventories to their present location & condition.

E) FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded in rupees by applying the exchange rate at the date of the transaction. Gains or Losses on settlement of the transactions are recognized in the Profit and Loss Account.

At the Balance Sheet date, monetary assets and liabilities in foreign currency are restated by applying the closing rate, and the difference arising out of such conversion is recognized in the Profit and Loss Account.

F) REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risks and rewards of ownership are passed on to the customers, which is generally on dispatch of goods. Sales are stated inclusive of Excise duty but exclusive of discounts, returns and sales tax / VAT.

Interest income is recognized on time proportion basis. Dividend income is recognized when the right to receive the dividend is established.

G) RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue expenditure is charged to the Profit & Loss account and capital expenditure is treated as addition to Fixed Assets.

H) PROVISION FOR RETIREMENT BENEFIT:

Retirement benefits in the form of Provident Fund and Superannuation Schemes are charged to the Profit & Loss Account of the year when the contributions to the respective funds are accrued.

Gratuity liability under the Payment of Gratuity Act is provided and funded on the basis of an actuarial valuation made at the end of each financial year.

Leave encashment liability is provided on the basis of actuarial valuation made at the end of each financial year.

I) PROVISION FOR TAXATION :

Income Tax expense comprises of current tax, fringe benefit tax (FBT) and deferred tax charge or credit.

Provision for Income tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income Tax Act 1961,

Provision for Fringe Benefit Tax is made on the basis of fringe benefits provided /deemed to be provided during the year at rates and values applicable to the relevant assessment year.

The deferred tax for timing difference between book and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future and are reviewed for appropriateness of the respective carrying values at each Balance sheet date.

J) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS : Provisions for statutory matters and other claims are recognized when:

The Company has a present legal or constructive obligation, the likelihood that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.

Provision is recognized when the company has recognize a present obligation as a result of past events and it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimates can be made based on technical evaluation and past experience.

A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements.

Provisions and contingencies are reviewed at each balance Sheet dates and adjusted to reflect the correct management estimates. K) IMPAIRMENT OF ASSETS :

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised immediately as income in the profit and loss account.


Mar 31, 2006

1. Accounting Convention

The Financial statements are prepared under the historical cost convention, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Accounting policies adopted by the company are as under

2.1 VALUATION OF FIXED ASSETS:

Fixed Assets are valued at the cost of acquisition or construction inclusive of inward freight, duties, taxes and incidental expenses, less Cenvat credit/excise incentive, related to such acquisition till such assets are put to use less specific grants received.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets net of estimated realizable value of scrap is written off as Loss on Discarding of Assets.

2.2 DEPRECIATION

Depreciation has been provided on the Straight Line Method:

a. In respect of assets acquired before 31st December, 1987, at the rates prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired after 31st December, 1987 at the rates and in the manner specified in the Schedule XIV of the Companies Act, 1956.

c. Depreciation on the Fixed Assets added/disposed of/discarded during the year has been provided on pro-rata basis with reference to the date of addition/disposal/discarding.

d. In respect of leasehold land and site development, at the yearly amortization rate arrived at on the basis of lea-se period.

2.3 VALUATION OF INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for permanent diminution in value.

2.4 VALUATION OF INVENTORIES:

Inventories are valued on the following basis:

a. Raw material and Stores, Spares are valued at lower of cost or net realizable value and packing materials are valued at cost. Cost is determined on weighted average basis.

b. Finished Goods (inclusive of Excise Duty):

i. Principal products are valued at lower of cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock includes cost of conversion and other costs incurred in bringing the inventories to their present location & condition.

2.5 FOREIGN CURRENCY TRANSACTIONS:

All Foreign Currency transactions have been accounted at the rate prevailing on the date of transaction. All outstanding foreign currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the Profit and Loss Account, except those relating to acquisition of fixed assets which are adjusted to the cost of assets.

2.6 TURNOVER:

Sales are accounted for, on despatch of goods and are net of discounts returns, including excise duty.

2.7 RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue expenditure on Research & Development is charged to the Profit & Loss account and capital expenditure on Research & Developments treated as addition to Fixed Assets.

2.8 PROVISION FOR RETIREMENT BENEFIT:

Retirement benefits in the form of Provident fund and Superannuation schemes are charged to the Profit & Loss Account of the year when the contributions to the respective funds are accrued.

Gratuity liability under the Payment of Gratuity Act is provided and funded on the basis of an actuarial valuation made at the end of each financial year.

Leave encashment liability is provided on the basis of actuarial valuation made at the end of each financial year.

2.9 PROVISION FOR INCOME TAX AND DEFERRED TAX

Provision for Income tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income Tax Act 1961.

Deferred Tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws chat have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future.

2.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2005

1. Accounting Convention

The Financial statements are prepared under the historical cost convention, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956,

2. Accounting policies adopted by the company are as under.

2.1 VALUATION OF FIXED ASSETS:

Fixed Assets are valued at the cost of acquisition or construction inclusive of inward freight, duties, taxes and incidental expenses, less Cenvat credit/excise incentive, related to such acquisition till such assets are put to use less specific grants received.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets net of estimated realizable value of scrap is written off as Loss on Discarding of Assets.

2.2 DEPRECIATION

Depreciation has been provided on the Straight Line Method:

a. In respect of assets acquired before 31st December, 1987, at the rates prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner specified in the Schedule XIV of the Companies Act, 1956.

c. Depreciation on the Fixed Assets added/disposed off /discarded during the year has been provided on pro-rata basis with reference to the days of addition/disposal /discarding.

d. In respect of leasehold land and site development, at the yearly amortization rate arrived at on the basis of lease period.

2.3 VALUATION OF INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for permanent diminution in value.

2.4 VALUATION OF INVENTORIES:

Inventories are valued on the following basis:

a. Raw material and Stores. Spares are valued at lower of cost or net realizable value and packing materials are valued at cost. Cost is computed on the basis of weighted average method.

b. Finished Goods (Excise duty added to Stock):

i. Principal products are valued at lower of cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Process stock is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

d. Cost of Finished Goods & Process Stock includes cost of conversion and other costs incurred in bringing the inventories to their present location & condition.

2.5 FOREIGN CURRENCY TRANSACTIONS:

All Foreign Currency transactions have been accounted at the rate prevailing on the date of transaction. All outstanding foreign currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the Profit and Loss Account except those relating to acquisition of fixed assets which are adjusted to the cost of assets.

2.6 TURNOVER:-

Sales are accounted for on despatch of goods and are net off discounts returns, including excise duty.

2.7 RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue expenditure on Research & Development is charged to the Profit & Loss account and capital expenditure on Research & Development is treated as addition to Fixed Assets.

2.8 PROVISION FOR RETIREMENT BENEFIT:

Retirement benefits in the form of Provident Fund and Superannuation Schemes are charged to the Profit & Loss Account of the year when the contributions to the respective funds are accrued.

Gratuity liability under the Payment of Gratuity Act is provided and funded on the basis of an actuarial valuation made at the end of each financial year.

Leave encashment liability is provided on the basis of actuarial valuation made at the end of each financial year.

2.9 PROVISION FOR INCOME TAX AND DEFERRED TAX

Provision for Income tax is made on the basis of estimated taxable income for the current accounting period and in accordance With the provisions of the Income Tax Act 1961 Deferred Tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future.


Mar 31, 2004

1. Accounting Convention

The Financial statements are prepared under the historical cost convention, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Accounting policies adopted by the company are as under.

2.1 VALUATION OF FIXED ASSETS:

Fixed Assets are valued at the cost of acquisition or construction inclusive of inward freight, duties, taxes and incidental expenses, less Cenvat credit/excise incentive, related to such acquisition till such assets are put to use less specific grants received-In respect of assets scrapped, discarded or retired during the year, the book value of such assets net of estimated realizable value of scrap is written off as Loss on Discarding pf Assets.

2.2 DEPRECIATION

Depreciation has been provided on the Straight Line Method:

a. In respect of assets acquired before 31st December, 1987, at the rates prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner specified in the Schedule XIV of the Companies Act, 1956.

c. Depreciation on the Fixed Assets added/disposed off /discarded during the year has been provided on pro-rata basis with reference to the month of addition/disposal /discarding.

d. In respect of leasehold land and site development, at the yearly amortization race arrived at on the basis of lease period.

2.3 VALUATION OF INVESTMENTS:

Long term investments are valued at cost with an appropriate provision for permanent diminution in value.

2.4 VALUATION OF INVENTORIES:

Inventories are valued on the following basis:

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

b. Stores, spares and packing materials are valued at cost. Cost is computed on the basis of weighted average method.

c. Finished Goods (Excise duty added to Stock):

i. Principal products are valued at lower of cost or net realizable value.

ii. By-Products are valued at net realizable value.

d. Process stock is valued at cost and in cases Where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of process stock is made.

2.5 FOREIGM CURRENCY TRANSACTIONS:

All Foreign Currency transactions have been accounted at the rate prevailing on thedateoftransaction-Ail outstanding foreign currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the Profit and Loss Account except those relating to acquisition of fixed assets which are adjusted to the cost of assets.

2.6 TURNOVER:

1. Sales are accounted on despatch of goods and are net off discounts and returns including excise duty.

2. Inter unit transfers are included as sales and purchases of the respective unit at the prevailing market price including excise duty.

2.7 RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue expenditure on Research & Development is charged to the Profit & Loss account and capital expenditure on Research & Development is treated as addition to Fixed Assets.

2.8 PROVISION FOR RETIREMENT BENEFIT:

Retirement benefits in the form of Provident Fund and Superannuation Schemes are charged to the Profit & Loss Account of the year when the contributions to the respective funds are accrued.

Gratuity liability under the Payment of Gratuity Act is provided and funded on the basis of an actuarial valuation made at the end of each financial year.

Leave encashment liability is provided on the basis of actuarial valuation made at the end of each financial year,

2.9 PROVISION FOR INCOME TAX AND DEFERRED TAX

Provision for Income tax is made on,the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income Tax Act 1961, Deferred Tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantiate enacted as on the balance sheet date.

The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future.

2.10 CONTINGENT LIABILITIES

Contingent liabilities are disclosed by way of notes after a careful evaluation of the facts and legal aspects of the matter involved.


Mar 31, 2003

Significant Accounting Policies.

1. The financial statements have been prepared in accordance with applicable Accounting standards and relevant presentationai requirements of the Companies Act, 1956 and are based on the historical cost convention. The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires making of estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known/materialize.

2. Significant Accounting Policies presently followed by the Company are as under:

2.1 VALUATION OF FIXED ASSETS:

Fixed Assets are valued at the cost of acquisition or construction inclusive of inward freight, duties, taxes and incidental expenses, less Cenvat credit/excise incentive, related to such acquisition till such assets are put to use, less specific grants received. In respect of assets scrapped, discarded or retired during the year, the book value of such assets net of estimated realizable value of scrap is written off as Loss on Discarding of Assets.

2.2 DEPRECIATION:

Depreciation has been provided: On straight line method

a. In respect of assets acquired before 31st December, 1987, at the rates prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired thereafter but before 31.3.1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31.3.1993 at the rates specified in the notification GSR No.756E dated 16.12.1993. on prorata basis.

c. In respect of leasehold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

2.3 VALUATION OF INVESTMENTS:

Investments are valued at cost inclusive of all expenses incidental to their acquisition.

Provision for diminution in value of the investments is made to recognize a decline other than temporary in nature in long term investments.

2.4 VALUATION OF INVENTORIES:

Inventories are valued on the following basis:

a. Raw material, stores, spares and packing materials are valued at cost on the basis of weighted average.

b. Finished Goods (Excise duty added to Stock):

i. Principal products are valued at a lower of cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Work in progress is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made, Cost includes all taxes, duties and other items involved in bringing the inventory to their present location and condition.

2.5 FOREIGN CURRENCY TRANSACTIONS:

All Foreign Currency transactions have been accounted at the rate prevailing on the date of transaction. All outstanding foreign currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the Profit and Loss Account.

2.6 TURNOVER :

1. Sales are accounted on dispatch of goods and are net off discounts and returns but inclusive of excise duty.

2. Inter unit transfers are included as sales and purchases of the respective unit at the prevailing market price, excluding sales-tax and including excise duty

2.7 RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue expenditure on Research & Development is charged against the profit for year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed assets. Depreciation on the same is provided on straight line method as stated in para 2.2.

2.8 PROVISION FOR RETIREMENT BENEFIT:

Retirement/Post retirement benefits in respect of gratuity and leave encashment are provided on acturial valuation. Liability in respect of gratuity is paid off to the trust created for the said purpose.

2.9 REVENUE RECOGNITION:

1. Revenue is recognized only when measurability and realisibility is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisibility assured.

2. In keeping with the recommendations of the Accounting Standards Board of The Institute Of Chartered Accountants of India on Revenue Recognition (AS 9) the Company has disclosed Turnover in the manner recommended : Excise Duty has been reduced from Gross Turnover

2.10 Provision for Income Tax and Deferred Tax

Provision for Income tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provision of the Income Tax Act 1961.

Deferred Tax resulting from "Timing difference" between book and taxable profits for the year is accounted for using the tax rates and laws that have been enacted as on the balance sheet date.

2.1 Contingent Liabilities

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


Mar 31, 2002

1. The financial statements have been prepared in accordance with applicable Accounting standards and relevant presentational requirements of the Companies Act, 1956 and are based on the historical cost convention. The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires making of estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known/materialized.

2. Significant Accounting Policies presently followed by the Company are as under:

2.1 Valuation of Fixed Assets:

Fixed Assets are valued at the cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses, less modvat credit/excise incentive, related to such acquisition.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets net of estimated realizable value of scrap is written off as Loss on Discarding of Assets.

2.2 Depreciation:

Depreciation has been provided:

On straight line method

a) In respect of assets acquired thereafter but before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205 (2) (b) of the Companies Act, 1956.

b) In respect of assets acquired thereafter but before 31.3.1993, accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31.3.1993 at the rates specified in the notification GSR. No. 756 E dated 16.12.1993.

c) In respect of lease hold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

2.3 Valuation of Investments:

Investments are valued at cost inclusive of all expenses incidental to their acquisition.

Provision for diminution in value of the investment is made to recognize a decline other than temporary in nature in long term investment.

2.4 Valuation of Inventories:

Inventories are valued on the following basis:

a) Raw material, stores, spares and packing materials are valued at cost on the basis of weighted average.

b) Finished Goods:

i) Principal products are valued at a lower of cost or net realizable value.

ii) By-Products are valued at net realizable value.

c) Work in progress is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

2.5 Foreign Currency Transactions:

All Foreign Currency transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realised till date have been taken at the rates actually realised. All outstanding foreign currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the profit and Loss Account.

2.6 Turnover:

1. Sales are accounted on dispatch of goods and are net off discounts and returns but inclusive of excise duty.

2. Inter unit transfers are included as the sales and purchases of the respective unit at the prevailing market price excluding sales-tax and including excise duty.

2.7 Research & Development Expenditure:

Revenue expenditure on Research & Development is charged against the profit for the year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed asset. Depreciation on the same is provided on straight line method as stated in para 2.2.

2.8 Provision for Retirement Benefit:

Retirement/Post retirement benefits in respect of gratuity and leave encashment are provided on actuarial valuation. Liability in respect of gratuity is paid off to the trust created for the said purpose.

2.9 Revenue Recognition:

Revenue is recognized only when immeasurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.

2.10 Provision for Current & Deferred Tax

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provision of the Income Tax Act 1961.

Deferred Tax resulting from "Timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted as on the balance sheet date.


Mar 31, 2001

SIGNIFICANT ACCOUNTING POLICIES

1. The financial statements have been prepared in accordance with applicable Accounting standards and relevant presentational requirements of the Companies Act, 1956 and are based on the historical cost convention.

2. Significant Accounting Policies presently followed by the Company are as under :

2.1 VALUATION OF FIXED ASSETS :

Fixed Assets are valued at the cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses, less modvat credit/excise incentive, related to such acquisition.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets is written off as Loss on Discarding of Assets. The receipts on sate of such scrapped assets are accounted for as and when realized.

2.2 DEPRECIATION :

Depreciation has been provided :

On straight line method

a. In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired thereafter but before 31.3.1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31.3.1993 at the rates specified in the notification GSR No.756E dated 16.12.1993.

c. In respect of lease hold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

2.3 VALUATION OF INVESTMENT :

Investments are valued at cost inclusive of all expenses incidental to their acquisition.

2.4 VALUATION OF INVENTORIES :

Inventories are valued on the following basis :

a. Raw material, stores, spares and packing materials are valued at cost on the basis of weighted average.

b. Finished Goods:

i. Principal products are valued at a lower of the cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Work in progress is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

2.5 FOREIGN CURRENCY TRANSACTIONS :

All Foreign Currency transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realised till date have been taken at the rates actually realised. All outstanding foreign currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the Profit and Loss Account.

2.6 TURNOVER :

1. Sales are accounted on dispatch of goods and are net of discounts and returns but inclusive of excise duty.

2. Inter unit transfers are included as the sales and purchases of the respective unit at the prevailing market price excluding sales-tax.

2.7 RESEARCH & DEVELOPMENT EXPENDITURE :

Revenue expenditure on Research & Development is charged against the profit for the year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed assets. Depreciation on the same is provided on straight line method as stated in para 2.2.

2.8 PROVISION FOR RETIREMENT BENEFIT :

Retirement/Post retirement benefits in respect of gratuity and leave encashment are provided on actuarial valuation. Liability in respect of gratuity is paid off to the trusts created for the said purpose.

2.9 REVENUE RECOGNITION :

Revenue is recognized only when measurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.


Mar 31, 2000

1 The financial statements have been prepared in accordance with applicable Accounting standards and relevant presentational requirements of the Companies Act, 1956 and are based on the historical cost convention.

2 Significant Accounting Policies presently followed by the Company are as under :

2.1 VALUATION OF FIXED ASSETS :

Fixed Assets are valued at the cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses, less modvat credit/excise incentive, related to such acquisition.

In respect of assets, scrapped, discarded or retired during the year, the book value of such assets is written off as Loss on Discarding of Assets. The receipts on sale scrapped assets are accounted for as and when realized.

2.2 DEPRECIATION

Depreciation has been provided :

On straight line method

a. In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205(2) (b) of the Companies Act, 1956.

b. In respect of assets acquired thereafter but before 31.3.1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31.3.1993 at the rates specified in the notification GSR No.756E dated 16.12.1993.

c. In respect of lease hold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

2.3 VALUATION OF INVESTMENT :

Investments are valued at cost inclusive of all experiences incidental to their acquisition.

2.4 VALUATION OF INVENTORIES :

Inventories are valued on the following basis :

a. Raw materials, stores, spares and packing materials are valued at cost on the basis of weighted average.

b. Finished Goods :

i. Principal products are valued at a lower of the cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Work in progress is valued at cost and in cases where the net realizable value of the ultimated product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

2.5 FOREIGN CURRENCY TRANSACTIONS :

All Foreign Currency transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realised till date have been taken at the rates actually realised. All outstanding foreign currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the Profit and Loss Account.

2.6 TURNOVER :

1. Sales are accounted on dispatch of goods and are net of discounts and returns but inclusive of excise duty.

2. Inter unit transfers are included as the sales and purchases of the respective unit.

2.7 RESEARCH & DEVELOPMENT EXPENDITURE :

Revenue expenditure on Research & Development is charged against the profit for the year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed assets, Depreciation on the same is provided on straight line method as stated in para 2.2.

2.8 PROVISION FOR RETIREMENT BENEFIT:

Retirement/Post retirement benefits in respect of pension, gratuity and leave encashment are provided on actuarial valuation. Liability in respect of gratuity, pension and provident fund are paid off to the respective trusts created for the said purpose.

2.9 REVENUE RECOGNITION :

Revenue is recognized only when measurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.


Mar 31, 1999

1. VALUATION OF FIXED ASSETS :

Fixed Assets are valued at the cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses, less modvat credit/excise incentive, related to such acquisition.

In respect of assets, scrapped, discarded or retired during the year, the book value of such assets is written off as Loss on Discarding of Assets. The receipts on sale of such scrapped assets are accounted for as and when realized.

2. DEPRECIATION :

Depreciation has been provided :

On straight line method

a. In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined In accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired thereafter but before 31.3.1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31.3.1993 at the rates specified in the notification GSR No.756E dated 16.12.1993.

c. In respect of lease hold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

3. VALUATION OF INVESTMENT :

Investments are valued at cost inclusive of all expenses incidental to their acquisition.

4. VALUATION OF INVENTORIES :

Inventories are valued on the following basis :

a. Raw material, stores, spares and packing materials are valued at cost on the basis of weighted average.

b. Finished Goods :

i. Principal products are valued at a lower of the cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Work in progress is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

d. Excise duty payable on finished goods held in factory is not included in the expenditure and consequently not taken into account for valuation of stock.

5. FOREIGN CURRENCY TRANSACTIONS :

All Foreign Currency transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign Currency realised till date have been taken at the rates actually realised. All Outstanding foreign Currency transactions are valued at the appropriate exchange rate at the close of financial year. The Loss or Gain due to fluctuations of exchange rates is charged to the Profit and Loss Account.

6. TURNOVER :

Inter unit transfers are included as the sales and purchases of the respective unit.

7. RESEARCH & DEVELOPMENT EXPENDITURE :

Revenue expenditure on Research & Development is charged against the profit for year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed assets, Depreciation on the same is provided on straight line method as stated in para 2.2.

8. PROVISION FOR RETIREMENT BENEFIT :

Retirement/Post retirement benefits in respect of pension, gratuity and leave encashment are provided on actuarial valuation. Liability in respect of gratuity, pension and provident fund are paid off to the respective trusts created for the said purpose.

9. REVENUE RECOGNITION :

Revenue is recognized only when measurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.


Mar 31, 1998

1. VALUATlON OF FIXED ASSETS :

Fixed Assets are valued at the cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses, less modvat credit/ excise incentive, related to such acquisition.

The original cost of the fixed assets acquired through foreign currency loan are adjusted at the end of each financial year to the extent of any change in the liability arising out of restatement of outstanding foreign currency loan at the rate of exchange prevailing as on the date of balance-sheet.

In respect of assets, scrapped, discarded or retired during the year, the book value of such assets is written off as Loss on Discarding of Assets. The receipts on sale of such scrapped assets are accounted for as and when realized.

2. DEPRECIATION :

Depreciation has been provided :

On straight line method

a. In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired thereafter but before 31.3.1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31.3.1993 at the rates specified in the notification GSR No. 756E dated 16.12.1993.

c. In respect of lease hold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

d. In respect of increase in the value of assets due to the change in foreign exchange rates, at the applicable rate from the date of installation of the assets.

3. VALUATION OF INVESTMENT :

Investments are valued at cost inclusive of all expenses incidental to their acquisition.

4. VALUATION OF INVENTORIES :

Inventories are valued on the following basis :

a. Raw material, stores, spares and packing materials are valued at cost on the basis of weighted average.

b. Finished Goods :

i. Principal products are valued at a lower of the cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Work in progress is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

d. Excise duty payable on finished goods held in factory is not included in the expenditure and consequently not taken into account for valuation of stock.

5. FOREIGN CURRENCY TRANSACTIONS :

Loans and liabilities payable in foreign currency are re-stated at the rate prevailing at the date of balance sheet. Receivables in foreign currency have been taken at the rate actually realized. In cases where realization has not come forth till date, the same are valued at the rate prevailing at the date of balance sheet.

6. TURNOVER :

Inter unit transfers are included as the sales and purchases of the respective unit.

7. RESEARCH & DEVELOPMENT EXPENDITURE :

Revenue expenditure on Research & Development is charged against the profit for year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed assets. Depreciation on the same is provided on straight line method as stated in para 1.2.

8. PROVISION FOR RETIREMENT BENEFIT :

Retirement/Post retirement benefits in respect of pension, gratuity and leave encashment are provided on actuarial valuation. Liability in respect of gratuity, pension and provident fund are paid off to the respective trust created for the said purpose.

9. REVENUE RECOGNITION :

Revenue is recognized only when measurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.


Mar 31, 1997

1. VALUATION OF FIXED ASSETS: Fixed Assets are valued at the cost of acquisition inclusive of inward, freight, duties, taxes and incidental expenses, less modvat credit/excise incentive, related to such acquisition.

The original cost of the fixed assets acquired through foreign currency loan are adjusted at the end of each financial year to the extent of any change in the liability arising out of restatement of outstanding foreign currency loan at the rate of exchange prevailing as on the date of balance-sheet.

In respect of assets, scrapped, discarded or retired during the year, the book value of such assets is written off as loss on Discarding of Assets. The receipts on sale of such scrapped assets are accounted for as and when realized.

2. DEPRECIATION: Depreciation has been provided: On straight line method a. In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired thereafter but before 31.3.1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31.3.1993 at the rates specified in the notification GSR No.756E dated 16.12.1993.

c. In respect of lease hold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

d. In respect of increase in the value of assets due to the change in foreign exchange rates, at the applicable rate from the date of installation of the assets.

3. VALUATION OF INVESTMENT: Investments are valued at cost inclusive of all expenses incidental to their acquisition.

4. VALUATION OF INVENTORIES: Inventories are valued on the following basis:

a. Raw material, stores, spares and packing materials are valued at cost on the basis of weighted average

b. Finished Goods: i. Principal products are valued at a lower of the cost or net realizable value. ii. By-Products are valued at net realizable value.

c. Work in progress is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

d. Excise duty payable on finished goods held in factory is not included in the expenditure and consequently not taken into account for valuation of stock.

5. FOREIGN CURRENCY TRANSACTIONS: Loans and liabilities payable in foreign currency are re-stated at the rate prevailing at the date of balance-sheet. Receivables in foreign currency have been taken at the rate actually realized. In cases where realization has not come forth till date, the same are valued at the rate prevailing at the date of balancesheet.

6 TURNOVER: Inter unit transfers are included as the sales and purchases of the respective unit.

7. RESEARCH & DEVELOPMENT EXPENDITURE: Revenue expenditure on Research & Development is charged against the profit for year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed assets. Depreciation on the same is provided on straight line method as stated in para-1.2.

8. PROVISION FOR RETIREMENT BENEFIT: Retirement/Post retirement benefits in respect of pension, gratuity and leave encashment are provided on actuarial valuation. Lability in respect on gratuity, pension and provident fund are paid off to the respective trusts created for the said purpose.

9. REVENUE RECOGNITION: Revenue is recognized only when measurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.


Mar 31, 1996

1.1 VALUATION OF FIXED ASSETS:

Fixed Assets are valued at the cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses, less modvat credit /excise incentive, related to such acquisition.

The original cost of the fixed assets acquired through foreign currency loan are adjusted at the end of each financial year to the extent of any change in the liability arising out of restatement of outstanding foreign currency loan at the rate of exchange prevailing as on the date of balance-sheet.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets is written off as Loss on Discarding of Assets. The receipts on sale of such scrapped assets are accounted for as and when realized.

1.2 DEPRECIATION:

Depreciation has been provided :

On straight line method

a. In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. in respect of assets acquired thereafter but before 31-3-1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31-3-1993 at the rates specified in the notification GSR No. 756E dated 16-12-1993.

c. in respect of lease hold land and site development, at the yearly amortization rate arrived at on the basis of lease periods.

d. In respect of increase in the value of assets due to the change in foreign exchange rates, at the applicable rate from the date of installation of the assets.

1.3 VALUATION OF INVESTMENT:

Investments are valued at cost inclusive of all expenses incidental to their acquisition.

1.4 VALUATION OF INVENTORIES :

Inventories are valued on the following basis :

a. Raw material, stores, spares and packing materials are valued at cost on the basis of weighted average.

b. Finished Goods:

i. Principal products are valued at a lower of the cost or net realizable value.

ii. By-Products are valued at net realizable value.

c. Work in progress is valued at cost and in cases where the net realizable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

d. Excise duty payable on finished goods held in factory is not included in the expenditure and consequently not taken into account for valuation of stock.

1.5 FOREIGN CURRENCY TRANSACTIONS:

Loans and liabilities payable in foreign currency are re-stated at the rate prevailing at the date of balance-sheet. Receivables in foreign currency have been taken at the rate actually realized. In cases where realization has not come forth till date, the same are valued at the rate prevailing at the date of balance-sheet.

1.6 TURNOVER :

Inter unit transfers are included as the sales and purchases of the respective unit.

1.7 RESEARCH & DEVELOPMENT EXPENDITURE:

Revenue expenditure on Research & Development is charged against the profit for year in which it is incurred and capital expenditure on Research & Development is shown as addition to fixed assets, Depreciation on the same is provided on straight line method as stated in para-II.

1.8 PROVISION FOR RETIREMENT BENEFIT:

Retirement / Post retirement benefits in respect of pension, gratuity and leave encashment are provided on actuarial valuation. Liability in respect on gratuity, pension and provident fund are paid off to the respective trusts created for the said purpose.

1.9 REVENUE RECOGNITION:

Revenue is recognized only when measurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.


Mar 31, 1995

1. Valuation Of Fixed Assets:

Fixed Assets are valued at the cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses related to such acquisition.

The original cost of the fixed assets acquired through foreign currency loan are adjusted at the end of each financial year to the extent of any change in the liability arising out of restatement of outstanding foreign currency loan at the rate of exchange prevailing as on the date of balance-sheet.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets is written off as Loss on Discarding of Assets. The receipts on sale of such scrapped assets are accounted for as and when realised.

II. Depreciation

Depreciation has been provided:

i. On straight line method

a. In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b. In respect of assets acquired thereafter but before 31-3-1993, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on assets acquired after 31-3-1993 at the rates specified in the notification GSR No. 756E dated 16.12.1993.

c. In respect of lease hold land and site development, at the yearly amortization rate arrived on the basis of lease periods.

d. In respect of increase in the value of assets due to the change in rate of foreign exchanges, at the applicable rate from the date of installation of the assets.

III. Valuation of Investment:

Investments are valued at cost inclusive of all expenses incidental to their acquisition.

IV. Valuation of Inventories:

Inventories are valued on the following basis:

a. Raw Material, stores, spares and packing materials are valued at cost on the basis of weighted average.

b. Finished Goods:

i. Principal products are valued at a lower of the cost or net realisable value.

ii. By-Products are valued at net realisable value.

c. Work in progress in valued at cost & in cases where the net realisable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

d. Excise duty payable on finished goods held in factory is not included in the expenditure and consequently not taken into account for valuation of stock.

e. In accordance with the recommendation of Institute of Chartered Accountants of India, the company has changed system of valuation of closing stocks by not including interest as cost for the purpose of valuation.

V. Foreign Currency Transactions:

Loans and Liabilities payable in foreign currency are re-stated at the rate prevailing at the date of balance-sheet. Receivables in foreign currency have been taken at the rate actually realised. In cases where realisation has not come forth till date, same are valued at the rate prevailing at the date of balance-sheet.

VI. Turnover:

Inter unit transfers are included as the sales and purchases of the respective unit.

VII. Research & Development Expenditure:

Revenue Expenditure on Research & Development is charged against the profit of the year in which it is incurred and capital expenditure of Research & Development is shown as addition to fixed assets. Depreciation on the same is provided on straight line method as started in para II.

VIII. Provisions For Retirement Benefit:

Liabilities in respect of benefits to employees are provided by payment to gratuity fund, superannuation fund and provident fund. The amount of payment/charges to gratuity fund are determined based on actuarial valuation.

IX. Revenue Recognition:

Revenue is recognised only when measurability and realisability is certain. In case of uncertainties, revenue recognition is postponed to the year in which it is properly measured and realisability assured.


Mar 31, 1994

VALUATIO OF FIXED ASSETS Fixed assets are valued at the costt of acquisition inclusive of inward freight, duties, taxes and incidenttal expenses related to such acquisition.

The original cost of the fixed assets acquired through foreign currency loan are adjusted at the end of each financial year to the extent of any change in the liability arising out of restatement of outstanding foreign currency loan at the rate of exchange prevailing as on the date of balance-sheet.

Following the above policy during the current year, foreign currency loan has been increased by Rs.1.23 lacs (previous year Rs.25.66 lacs) and with the corresponding increase in the value of fixed assets.

In respect of assets scrapped, discarded or retired during the year, the book value of such assets is written off as Loss on Discarding of Assets. The receipts on sale of such scrappes assets are accounted for as and when realised.

DEPRECIATION: Depreciation has been provided: On straight line method a) In respect of assets acquired before 31st December, 1987 at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205 (2) (b) of the Companies Act, 1956.

b) In respect of assets acquired thereafter, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956 and on Assets acquired after 31.3.1993 at the rates specified in the notification GSR No.756E dated 16.12.1993.

c) In respect of lease hold land and site development, at the yearly amortization rate arrived on the basis of lease periods.

d) In respect of increase in the value of assets due to the change in rate of foreign exchange, at the applicable rate from the date of installation of the assets.

FOREIGN CURRENCY TRANSACTIONS: Loans and Liabilities payable in foreign currency are re-stated at the rate prevailing at the date of Balance Sheet. Receivables in foreign currency have been taken at the rate actually realised. In cases where realisation has not come forth till date, same are valued at the rate prevailing at the date of Balance Sheet.


Mar 31, 1993

DEPRECIATION: Depreciation has been provided: On straight line method a) In respect of assets acquired before 31st December, 1987 at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205 (2) (b) of the Companies Act, 1956.

b) In respect of assets acquired thereafter, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956.

c) In respect of lease hold land and site development, at the yearly amortization rate arrived on the basis of lease periods.

d) In respect of increase in the value of assets due to the change in rate of foreign exchange, at the applicable rate from the date of installation of the assets.

e) In respect of assets given on lease by Erstwhile PCL, at the rates prescribed in Schedule XIV of the Companies Act, 1956 on prorata basis, from the date of use by respective leases. The company also provides special lease depreciation towards capital recovery changes.

On Written down value method In respect of assets of chemical plant of Erstwhile PCL at Jammu as at the rates prescribed in Schedule XIV of the Companies Act 1956.

FOREIGN CURRENCY TRANSACTIONS: Loans and Liabilities payable in foreign currency are re-stated at the rate prevailing at the date of Balance Sheet. Receivables in foreign currency have been taken at the rate actually realised. In cases where realisation has not come forth till date, same are valued at the rate prevailing at the date of Balance Sheet.

VALUATION OF INVENTORIES: a). Raw material, Stores, Spares and Packing materials are valued at cost on the basis of weighted average.

b). Finished goods: i). Principle products are valued at a lower of the cost or net realisable value. ii). By-products & process scrap are valued at net realisable value.

c). Work in progess is valued at cost & in cases where net realisable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

d). Interest cost is included for the purpose of valuation of work in progress and finished goods as per the past practice consistently followed by the company.

e). Excise duty payable on finished goods held in the factory is not included in the expenditure and consistently not taken into account for valauation of stock. The amount of excise duty payable on finished goods not cleared from the factory as at 31.3.1993 is estimated at Rs.130.22 lakhs. This has no effect on the profits.


Mar 31, 1992

DEPRECIATION Depreciation has been provided on straight line method as follows :

a) In respect of assets acquired before 31st December, 1987, at the rate prevailing at the time of installation of assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

b) In respect of assets acquired thereafter, in accordance with the rates and requirements prescribed in Schedule XIV of the Companies Act, 1956.

c) In respect of lease hold land and site development, at the yearly amortization rate arrived on the basis of lease periods.

d) In respect of increase in the value of assets due to the change in rate of foreign exchanges, at the applicable rate from the date of installation of the assets.

FOREIGN CURRENCY TRANSACTIONS: Loans and Liabilities payable in foreign currency are re-stated at the rate prevailing at the date of Balance Sheet. Receivables in foreign currency have been taken at the rate actually realised. In cases where realisation has not come forth till date, same are valued at the rate prevailing at the date of Balance Sheet.

VALUATION OF INVENTORIES: a). Raw material, Stores, Spares and Packing materials are valued at cost on the basis of weighted average.

b). Finished goods: i). Principle products are valued at a lower of the cost or net realisable value. ii). By-products & process scrap are valued at net realisable value.

c). Work in progess is valued at cost & in cases where net realisable value of the ultimate product is lower than the cost of production, necessary adjustments in the cost of work in progress is made.

d). Excise duty payable on finished goods held in the factory is not included in the expenditure and consistently not taken into account for valauation of stock. The amount of excise duty payable on finished goods not cleared from the factory as at 31.3.1992 is estimated at Rs.56.94 lakhs. This has no effect on the profits.


Mar 31, 1991

Depreciation for the current year has been provided on Straight Line Method as follows :

i) In respect of Assets acquired upto 31st December, 1987 by Camphor Division and in respect of assets acquired upto 30th June, 1986, by Profeel Division, at the rates prevailing at the time of installation of the Assets and as determined in accordance with Section 205(2)(b) of the Companies Act, 1956.

ii) In respect of Assets acquired thereafter by both the divisions, in accordance with the rates and requirements prescribed in Schedule XIV to the Companies Act, 1956.

iii) In respect of Lease hold Land and Site Development, at the yearly amortization rate arrived at on the basis of Lease periods.

FOREIGN CURRENCY TRANSACTIONS: Foreign Currency Loan balances have been re-stated at the rates of exchange prevailing as at 31st. March 1991. Consequently, the liability has increased by Rs.27.71 lakhs with the corresponding increase of Rs.27.71 lakhs in the Fixed assets consistent with the past practice, Depreciation thereon has been provided from the year of the acquisition of the assets.

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