Mar 31, 2016
1. Significant accounting policies
a) Method of Accounting
i) The accounts of the company are prepared under the historical cost convention using the accrual method of accounting unless otherwise stated hereinafter.
ii) Accounting policies are consistent with generally accepted accounting principles.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition, inclusive of inward freight, duties, taxes and incidental expenses related to acquisition and is net of modvat/cenvat wherever applicable. In respect of projects involving construction, related pre-operational expenses are capitalized and form part of the value of the assets capitalized. As per practice and on the basis of technical evaluation/ report, expenses incurred on trial runs/know-how development / relocation / modernization / debottlenecking / relining / revamping of plant and machinery are capitalized. Fixed assets taken on lease are not reflected in the accounts and the lease rent is charged to profit & loss account as and when accrued.
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the greater of the net selling price and value in use.
c) Inventories
Inventories are valued at cost or net realizable value, whichever is lower. Cost is determined on first in first out (FIFO) basis.
d) Foreign currency transactions
All foreign currency liabilities relating to acquisition of fixed assets are restated at the rates ruling at the year end and exchange differences arising on such transactions are adjusted in the cost of assets.
Other foreign currency assets and liabilities outstanding at the close of the year are valued at year end exchange rates. The fluctuations are reflected under the appropriate revenue head.
e) Depreciation
Depreciation is calculated on fixed assets on straight line method in accordance with Schedule II of The Companies Act, 2013 except for machines in press section. For press section the life of the asset has been considered as 8 years instead of 25 years on technical evaluation.
Depreciation on amount of additions made to fixed assets on account of foreign exchange fluctuation is provided for over the residual life of the fixed assets.
f) Research & Development
Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure on research and development is shown as an addition to fixed assets.
g) Retirement benefits
i) Short Term Employee Benefits
All employee benefits payable only within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages etc. and the expected cost of bonus, excreta, and incentives are recognized in the year during which the employee renders the related service.
ii) Post Employment Benefits
a) State provident fund scheme is a defined contribution plan. The contribution paid /payable under the scheme is recognized in the profit & loss account during the year during which the employee renders the related service
b) The company has a separate super annotation fund in respect of certain categories of employees. Contributions paid /payable during the year are recognized in the profit & loss account
c) The employee gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation under such defined benefit plan is determined based on actuarial valuation under the project unit credit method which recognizes each year of service as giving rise to additional unit of employee benefits entitlement each unit separately to build up the final obligation.
The obligation is measured at the present value of future cash flow. The discount rates used for determining the present value of the obligation under defined benefit plans is based on the market yields on government securities as at balance sheet date, having maturity years approximated to the returns of related obligations.
Actuarial gains and lesser are recognized immediately in the profit& loss account.
In case of funded plans the fair value of the planned assets is reduced from the gross obligation under the defined benefit plans to recognize the obligation on net basis.
d) Other long term employee''s benefits including leave encashment are recognized in the same manner as defined benefit plans.
h) Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred. Capitalization of borrowing costs ceases when substantially all activities necessary to prepare the qualifying asset for its intended use or sale are complete.
i) Excise & Other Duties
Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in customs bonded warehouse are provided and included in the valuation of inventory. Modvat benefit is accounted for by reducing the purchase cost of the materials/fixed assets.
j) Claims and benefits
Claims receivable and export benefits are accounted on accrual basis to the extent considered receivable.
k) Revenue recognition
Export sales are accounted on the basis of the date of bill of lading / airway bill. Other sales are accounted for ex-factory on dispatch. Sales are net of returns, excise duty and include export incentives/benefits.
l) Income from Investments/Deposits
Income is credited to revenue in the year in which it accrues. Income is stated in full with the tax thereon being accounted for under Income tax deducted at source.
m) Taxation
Provision for taxation is based on assessable profits of the company as determined under Income Tax Act, 1961.
Deferred taxation is provided using the liability method in respect of taxation effect arising from all material timing difference between accounting and tax treatment of income and expenditure which are expected with reasonable probability to crystallize in the foreseeable future.
Deferred tax benefits are recognized in the financial statements only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realizable in the near future.
n) Earnings per share
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is calculated by dividing the net profits attributable to equity shareholders (after deducting dividend on redeemable preference shares) by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilutive options).
o) Contingent Liabilities
Contingent Liabilities as defined in Accounting Standard-29 are disclosed by way of notes to accounts Provision is made if it becomes probable that an outflow of future economic benefit will be required for an item previously dealt with as a contingent liability.
Mar 31, 2015
A) Method of Accounting
i) The accounts of the company are prepared under the historical cost
convention using the accrual method of accounting unless otherwise
stated hereinafter.
ii) Accounting policies are consistent with generally accepted
accounting principles.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition, inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition
and is net of modvat/ cenvat wherever applicable. In respect of
projects involving construction, related pre-operational expenses are
capitalised and form part of the value of the assets capitalised. As
per practice and on the basis of technical evaluation/ report, expenses
incurred on trial runs/know-how development / relocation /
modernisation / debottlenecking / relining / revamping of plant and
machinery are capitalised. Fixed assets taken on lease are not
reflected in the accounts and the lease rent is charged to profit &
loss account as and when accrued.
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
company's fixed assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. Recoverable amount is the greater of the net selling price and
value in use.
c) Inventories
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on first in first out (FIFO) basis.
d) Foreign currency transactions
All foreign currency liabilities relating to acquisition of fixed
assets are restated at the rates ruling at the year end and exchange
differences arising on such transactions are adjusted in the cost of
assets.
Other foreign currency assets and liabilities outstanding at the close
of the year are valued at year end exchange rates. The fluctuations are
reflected under the appropriate revenue head.
e) Depreciation
Depreciation is calculated on fixed assets on straight line method in
accordance with Schedule II of Companies Act, 2013. Except for machine
inpress section. In press section the life of the asset has been
considered as 8 year instead of 25 years on technical evalution.
Depreciation on amount of additions made to fixed assets on account of
foreign exchange fluctuation is provided for over the residual life of
the fixed assets.
f) Research & Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to fixed assets.
g) Retirement benefits
i) Short Term Employee Benefits
All employee benefits payable only within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages etc. and the expected cost of bonus, exgratia,
and incentives are recognized in the year during which the employee
renders the related service.
ii) Post Employment Benefits
a) State provident fund scheme is a defined contribution plan. The
contribution paid /payable under the scheme is recognized in the profit
& loss account during the year during which the employee renders the
related service
b) The company has a separate super annuation fund in respect of
certain categories of employees. Contributions paid /payable during the
year are recognized in the profit & loss account
c) The employee gratuity fund scheme managed by a trust is a defined
benefit plan. The present value of obligation under such defined
benefit plan is determined based on actuarial valuation under the
project unit credit method which recognizes each year of service as
giving rise to additional unit of employee benefits entitlement each
unit separately to build up the final obligation.
The obligation is measured at the present value of future cash flow.
The discount rates used for determining the present value of the
obligation under defined benefit plans is based on the market yields on
government securities as at balance sheet date, having maturity years
approximated to the returns of related obligations.
Actuarial gains and lesser are recognized immediately in the profit&
loss account.
In case of funded plans the fair value of the planned assets is reduced
from the gross obligation under the defined benefit plans to recognize
the obligation on net basis.
d) Other long term employee's benefits including leave encashment are
recognized in the same manner as defined benefit plans.
h) Borrowing costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. Other borrowing costs are recognised as
an expense in the year in which they are incurred. Capitalisation of
borrowing costs ceases when substantially all activities necessary to
prepare the qualifying asset for its intended use or sale are complete.
i) Excise & Other Duties
Excise duty in respect of finished goods lying in factory premises and
custom duty on goods lying in customs bonded warehouse are provided and
included in the valuation of inventory. Modvat benefit is accounted for
by reducing the purchase cost of the materials/ fixed assets.
j) Claims and benefits
Claims receivable and export benefits are accounted on accrual basis to
the extent considered receivable.
k) Revenue recognition
Export sales are accounted on the basis of the date of bill of lading /
airway bill. Other sales are accounted for ex-factory on dispatch. Sales
are net of returns, excise duty and include export incentives/benefits.
l) Income from Investments/Deposits
Income is credited to revenue in the year in which it accrues. Income
is stated in full with the tax thereon being accounted for under Income
tax deducted at source.
m) Taxation
Provision for taxation is based on assessable profits of the company as
determined under Income Tax Act, 1961.
Deferred taxation is provided using the liability method in respect of
taxation effect arising from all material timing difference between
accounting and tax treatment of income and expenditure which are
expected with reasonable probability to crystallize in the foreseeable
future.
Deferred tax benefits are recognized in the financial statements only
to the extent of any deferred tax liability or when such benefits are
reasonably expected to be realizable in the near future.
n) Earnings per share
Basic earning per share is calculated by dividing the net profit for
the year attributable to equity shareholders (after deducting the
redeemable preference share dividend) by the weighted average number of
equity shares outstanding during the year.
Diluted earning per share is calculated by dividing the net profits
attributable to equity shareholders (after deducting dividend on
redeemable preference shares) by the weighted average number of equity
shares outstanding during the year (adjusted for the effects of
dilutive options).
o) Contingent Liabilities
Contingent Liabilities as defined in Accounting Standard-29 are
disclosed by way of notes to accounts Provision is made if it becomes
probable that an outflow of future economic benefit will be required
for an item previously dealt with as a contingent liability.
Mar 31, 2014
A) Method of Accounting
i) The accounts of the company are prepared under the historical cost
convention using the accrual method of accounting unless otherwise
stated hereinafter.
ii) Accounting policies are consistent with generally accepted
accounting principles.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition, inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition
and is net of modvat/ cenvat wherever applicable. In respect of
projects involving construction, related pre-operational expenses are
capitalised and form part of the value of the assets capitalised. As
per practice and on the basis of technical evaluation/ report, expenses
incurred on trial runs/know-how development / relocation /
modernisation / debottlenecking / relining / revamping of plant and
machinery are capitalised. Fixed assets taken on lease are not
reflected in the accounts and the lease rent is charged to profit &
loss account as and when accrued.
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. Recoverable amount is the greater of the net selling price and
value in use.
c) Investments
Long term investments are stated at cost of acquisition. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
d) Inventories
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on first in first out (FIFO) basis.
e) Foreign currency transactions
All foreign currency liabilities relating to acquisition of fixed
assets are restated at the rates ruling at the year end and exchange differences arising on such transactions are adjusted in the cost of
assets.
Other foreign currency assets and liabilities outstanding at the close
of the year are valued at year end exchange rates. The fluctuations are
reflected under the appropriate revenue head.
f) Depreciation
Depreciation is calculated on fixed assets on straight line method in
accordance with Schedule XIV of Companies Act, 1956.
Depreciation on amount of additions made to fixed assets on account of
foreign exchange fluctuation is provided for over the residual life of
the fixed assets.
g) Research & Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to fixed assets.
h) Retirement benefits
i) Short Term Employee Benefits
All employee benefits payable only within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages etc. and the expected cost of bonus, exgratia,
and incentives are recognized in the year during which the employee
renders the related service.
ii) Post Employment Benefits
a) State provident fund scheme is a defined contribution plan. The
contribution paid /payable under the scheme is recognized in the profit
& loss account during the year during which the employee renders the
related service
b) The company has a separate super annuation fund in respect of
certain categories of employees. Contributions paid /payable during the
year are recognized in the profit & loss account
c) The employee gratuity fund scheme managed by a trust is a defined
benefit plan. The present value of obligation under such defined
benefit plan is determined based on actuarial valuation under the
project unit credit method which recognizes each year of service as
giving rise to additional unit of employee benefits entitlement each
unit separately to build up the final obligation.
The obligation is measured at the present value of future cash flow.
The discount rates used for determining the present value of the
obligation under defined benefit plans is based on the market yields on
government securities as at balance sheet date, having maturity years
approximated to the returns of related obligations.
Actuarial gains and lesser are recognized immediately in the profit&
loss account.
In case of funded plans the fair value of the planned assets is reduced
from the gross obligation under the defined benefit plans to recognize
the obligation on net basis.
d) Other long term employee''s benefits including leave encashment are
recognized in the same manner as defined benefit plans.
i) Borrowing costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. Other borrowing costs are recognised as
an expense in the year in which they are incurred. Capitalisation of
borrowing costs ceases when substantially all activities necessary to
prepare the qualifying asset for its intended use or sale are complete.
j) Excise & Other Duties
Excise duty in respect of finished goods lying in factory premises and
custom duty on goods lying in customs bonded warehouse are provided and
included in the valuation of inventory. Modvat benefit is accounted for
by reducing the purchase cost of the materials/ fixed assets.
k) Claims and benefits
Claims receivable and export benefits are accounted on accrual basis to
the extent considered receivable.
l) Revenue recognition
Export sales are accounted on the basis of the date of bill of lading /
airway bill. Other sales are accounted for ex-factory on dispatch.
Sales are net of returns, excise duty and include export incentives/
benefits.
m) Income from Investments/Deposits
Income from investments is credited to revenue in the year in which it
accrues. Income is stated in full with the tax thereon being accounted
for under Income tax deducted at source.
n) Taxation
Provision for taxation is based on assessable profits of the company as
determined under Income Tax Act, 1961.
Deferred taxation is provided using the liability method in respect of
taxation effect arising from all material timing difference between
accounting and tax treatment of income and expenditure which are
expected with reasonable probability to crystallize in the foreseeable
future.
Deferred tax benefits are recognized in the financial statements only
to the extent of any deferred tax liability or when such benefits are
reasonably expected to be realizable in the near future.
o) Earnings per share
Basic earning per share is calculated by dividing the net profit for
the year attributable to equity shareholders (after deducting the
redeemable preference share dividend) by the weighted average number of
equity shares outstanding during the year.
Diluted earning per share is calculated by dividing the net profits
attributable to equity shareholders (after deducting dividend on
redeemable preference shares) by the weighted average number of equity
shares outstanding during the year (adjusted for the effects of
dilutive options).
p) Contingent Liabilities
Contingent Liabilities as defined in Accounting Standard-29 are
disclosed by way of notes to accounts Provision is made if it becomes
probable that an outflow of future economic benefit will be required
for an item previously dealt with as a contingent liability.
Notes:-
The above preference shares are non convertible, cumulative and
redeemable at end of 10 years from the date of allotment i.e.
29.01.2014 or earlier at the option of the company. Dividend @ 10% is
payable on these shares.
Details of shares in the company held by each shareholder holding more
than 5% of shares is as under:
* Rupee Term Loans are secured by first equitable mortgage of immovable
assets both present and future and hypothecation of moveable assets
(save and except book debts) charged to rank pari-passu inter se and
subject to prior charges created in favour of the company''s for working
capital loans and assets exclusively charged. Corporate loan is further
secured by pledge of shares of promoters.
** Assets purchased under Hire Purchase Finance schemes are
hypothecated to the financiers.
The above loans are repayable as follows:
* Secured by hypothecation of inventories and book debts and further
secured by way of second charge on fixed assets both present and
future.
Buyers credit includes liabilites of Rs. 64.81 lacs ( previous year Rs.
285.58 lacs) in respect of capital goods.
There is no default as on the Balance Sheet date in repayment of loans
and interest.
Mar 31, 2013
A) Method of Accounting
i) The accounts of the company are prepared under the historical cost
convention using the accrual method of accounting unless otherwise
stated hereinafter.
ii) Accounting policies are consistent with generally accepted
accounting principles.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition, inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition
and is net of modvat/cenvat wherever applicable. In respect of projects
involving construction, related pre-operational expenses are
capitalised and form part of the value of the assets capitalised. As
per practice and on the basis of technical evaluation/ report, expenses
incurred on trial runs/know-how development/re location/modernisation/
debottlenecking/relining/revamping of plant and machinery are
capitalised. Fixed assets taken on lease are not reflected in the
accounts and the lease rent is charged to profit & loss account as and
when accrued.
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. Recoverable amount is the greater of the net selling price and
value in use.
c) Investments
Long term investments are stated at cost of acquisition. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
d) Inventories
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on first in first out (FIFO) basis.
e) Foreign currency transactions
All foreign currency liabilities relating to acquisition of fixed
assets are restated at the rates ruling at the year end and exchange
differences arising on such transactions are adjusted in the cost of
assets..
Other foreign currency assets and liabilities outstanding at the close
of the year are valued at year end exchange rates. The fluctuations are
reflected under the appropriate revenue head.
f) Depreciation
Depreciation is calculated on fixed assets on straight line method in
accordance with Schedule XIV of Companies Act, 1956.
Depreciation on amount of additions made to fixed assets on account of
foreign exchange fluctuation is provided for over the residual life of
the fixed assets.
g) Research & Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to fixed assets.
h) Retirement benefits
i) Short Term Employee Benefits
All employee benefits payable only within twelve months of rendering
the service are classified as short term employee benfits.Benefits such
as salaries, wages etc. and the expected cost of bonus, exgratia,
incentives are recognized in the year during which the employee renders
the related service.
ii) Post Employment Benefits
a) State provident fund scheme is a defined contribution plan. The
contribution paid /payable under the scheme is recognized in the profit
& loss account during the year during which the employee renders the
related service
b) The company has a separate super annuation fund in respect of
certain categories of employees. Contributions paid /payable during
the year are recognized in the profit & loss account
c) The employee gratuity fund scheme managed by a trust is a defined
benefit plan. The present value of obligation under such defined
benefit plan is determined based on actuarial valuation under the
project unit credit method which recognizes each year of service as
giving rise to additional unit of employee benefits entitlement each
unit separately to build up the final obligation.
The obligation is measured at the present value of future cash flow.
The discount rates used for determining the present value of the
obligation under defined benefit plans is based on the market yields on
government securities as at balance sheet date, having maturity years
approximated to the returns of related obligations.
Actuarial gains and lesser are recognized immediately in the profit&
loss account.
In case of funded plans the fair value of the planned assets is reduced
from the gross obligation under the defined benefit plans to recognize
the obligation on net basis.
d) Other long term employees benefits including leave encashment are
recognized in the same manner as defined benefit plans.
i) Borrowing costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. Other borrowing costs are recognised as
an expense in the year in which they are incurred. Capitalisation of
borrowing costs ceases when substantially all activities necessary to
prepare the qualifying asset for its intended use or sale are complete.
j) Excise & Other Duties
Excise duty in respect of finished goods lying in factory premises and
custom duty on goods lying in customs bonded warehouse are provided and
included in the valuation of inventory. Modvat benefit is accounted
for by reducing the purchase cost of the materials/fixed assets.
k) Claims and benefits
Claims receivable and export benefits are accounted on accrual basis to
the extent considered receivable.
I) Revenue recognition
Export sales are accounted on the basis of the date of bill of lading /
airway bill. Other sales are accounted for ex-factory on despatch.
Sales are net of returns,excise duty and include export
incentives/benefits.
m) Income from Investments/Deposits
Income from investments is credited to revenue in the year in which it
accrues. Income is stated in full with the tax thereon being accounted
for under Income tax deducted at source.
n) Taxation
Provision for taxation is based on assessable profits of the company as
determined under Income Tax Act, 1961.
Deferred taxation is provided using the liability method in respect of
taxation effect arising from all material timing difference between
accounting and tax treatment of income and expenditure which are
expected with reasonable probability to crystallize in the foreseeable
future.
Deferred tax benefits are recognized in the financial statements only
to the extent of any deferred tax liability or when such benefits are
reasonably expected to be realizable in the near future.
o) Earnings per share
Basic earning per share is calculated by dividing the net profit for
the year attributable to equity shareholders (after deducting the
redeemable preference share dividend) by the weighted average number of
equity shares outstanding during the year.
Diluted earning per share is calculated by dividing the net profits
attributable to equity shareholders (after deducting dividend on
redeemable preference shares) by the weighted average number of equity
shares outstanding during the year (adjusted for the effects of
dilutive options).
p) Contingent Liabilities
Contingent Liabilities as defined in Accounting Standard-29 are
disclosed by way of notes to accounts Provision is made if it becomes
probable that an outflow of future economic benefit will be required
for an item previously dealt with as a contingent liability.
Mar 31, 2012
A) Method of Accounting
i) The accounts of the company are prepared under the historical cost
convention using the accrual method of accounting unless otherwise
stated hereinafter.
ii) Accounting policies are consistent with generally accepted
accounting principles.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition, inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition
and is net of modvat/cenvat wherever applicable. In respect of projects
involving construction, related pre-operational expenses are
capitalized and form part of the value of the assets capitalized. As
per practice and on the basis of technical evaluation/ report, expenses
incurred on trial runs/know-how development / relocation /
modernization / debottlenecking / relining / revamping of plant and
machinery are capitalized. Fixed assets taken on lease are not
reflected in the accounts and the lease rent is charged to profit &
loss account as and when accrued.
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
company's fixed assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. Recoverable amount is the greater of the net selling price and
value in use.
c) Investments
Long term investments are stated at cost of acquisition. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
d) Inventories
Inventories are valued at cost or netrealisable value, whichever is
lower. Cost is determined on first in first out (FIFO) basis.
e) Foreign currency transactions
All foreign currency liabilities relating to acquisition of fixed
assets are restated at the rates ruling at the year end and exchange
differences arising on such transactions are adjusted in the cost of
assets..
Other foreign currency assets and liabilities outstanding at the close
of the year are valued at year end exchange rates. The fluctuations are
reflected under the appropriate revenue head.
I) Deprecation
Depreciation is calculated on fixed assets on straight line method in
accordance with Schedule XIV of Companies Act, 1956.
Depreciation on amount of additions made to fixed assets on account of
foreign exchange fluctuation is provided for over the residual life of
the fixed assets.
g) Research & Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to fixed assets.
h) Retirement benefits
i) Short Term Employee Benefits
All employee benefits pa/able only within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages etc. and the expected cost of bonus, excreta,
incentives are recognized in the year during which the employee renders
the related service.
n) Post Employment Benefits
a) State provident fund scheme is a defined contribution plan. The
contribution paid /payable under the scheme is recognized in the profit
& loss account during the year during which the employee renders the
related service
b) The company has a separate super annotation fund in respect of
certain categories of employees. Contributions paid / payable during
the year are recognized in the profit & loss account
c) The employee gratuity fund scheme managed by a trust is a defined
benefit plan. The present value of obligation under such defined
benefit plan is determined based on actuarial valuation under the
project unit credit method which recognizes each year of service as
giving rise to additional unit of employee benefits entitlement each
unit separately to build up the final obligation.
The obligation is measured at the present value of future cash flow.
The discount rates used for determining the present value of the
obligation under defined benefit plans is based on the market yields on
government securities as at balance sheet date, having maturity years
approximated to the returns of related obligations.
Actuarial gains and lesser are recognized immediately in the prof11&
loss account.
In case of funded plans the fair value of the planned assets is reduced
from the gross obligation under the defined benefit plans to recognize
the obligation on net basis.
d) Other long term employees benefits including leave encashment are
recognized in the same manner as defined benefit plans.
i) Borrowing costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. Other borrowing costs are recognised as
an expense in the year in which they are incurred. Capitalization of
borrowing costs ceases when substantially all activities necessary to
prepare the qualifying asset for its intended use or sale are
complete.
l) Excise & Other Duties
Excise duty in respect of finished goods lying in factory premises and
custom duty on goods lying in customs bonded warehouse are provided and
included in the valuation of inventory. Modvat benefit is accounted for
by reducing the purchase cost of the materials/fixed assets.
k) Claims and benefits
Claims receivable and export benefits are accounted on accrual basis to
the extent considered receivable.
I) Revenue recognition
Export sales are accounted on the basis of the date of bill of lading /
airway bill. Other sales are accounted for ex-factory on dispatch.
Sales are net of returns, excise duty and include export
incentives/benefits.
mj Income from Investments/Deposits
Income from investments is credited to revenue in the year in which it
accrues. Income is stated in full with the tax thereon being accounted
for under Income tax deducted at source.
n) Taxation
Provision for taxation is based on assessable profits of the company as
determined under Income Tax Act, 1961.
Deferred taxation is provided using the liability method in respect of
taxation effect arising from all material timing difference between
accounting and tax treatment of income and expenditure which are
expected with reasonable probability to crystallize in the foreseeable
future.
Deferred tax benefits are recognized in the financial statements only
to the extent of any deferred tax liability or when such benefits are
reasonably expected to be realizable in the near future.
o) Earnings per share
Basic earnings per share is calculated by dividing the net profit for
the year attributable to equity shareholders (after deducting the
redeemable preference share dividend) by the weighted average number of
equity shares outstanding during the year.
Diluted earnings per share is calculated by dividing the net profits
attributable to equity shareholders (after deducting dividend on
redeemable preference shares) by the weighted average number of equity
shares outstanding during the year (adjusted for the effects of
dilutive options).
p) Contingent Liabilities
Contingent Liabilities as defined in Accounting Standard-29 are
disclosed by way of notes to accounts Provision is made if it becomes
probable that an outflow of future economic benefit will be required
for an item previously dealt with as a contingent liability.
Mar 31, 2010
A) Method of Accounting
i) The accounts of the company are prepared under the historical cost
convention using the accrual method of accounting unless otherwise
stated hereinafter.
ii) Accounting policies are consistent with generally accepted
accounting principles.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition, inclusive of inward
freight, duties, taxes and incidental expenses related to acquisition
and are net of modvat/cenvat wherever applicable. In respect of
projects involving construction, related pre-operational expenses are
capitalised and form part of the value of the assets capitalised. As
per practice and on the basis of technical evaluation/ report, expenses
incurred on trial runs/know-how development / relocation /
modernisation / debottlenecking / relining / revamping of plant and
machinery are capitalised. Fixed assets taken on lease are not
reflected in the accounts and the lease rent is charged to profit &
loss account as and when accrued.
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
companyÃs fixed assets. If any indication exists, an assetÃs
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. Recoverable amount is the greater of the net selling price and
value in use.
c) Investments
Long term investments are stated at cost of acquisition. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
d) Inventories
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on first in first out (FIFO) basis.
e) Foreign currency transactions
All foreign currency liabilities relating to acquisition of fixed
assets are restated at the rates ruling at the year end and exchange
differences arising on such transactions are adjusted in the cost of
assets..
Other foreign currency assets and liabilities outstanding at the close
of the year are valued at year end exchange rates. The fluctuations
are reflected under the appropriate revenue head.
f) Depreciation
Depreciation is calculated on fixed assets on straight line method in
accordance with Schedule XIV of Companies Act, 1956.
Depreciation on amount of additions made to fixed assets on account of
foreign exchange fluctuation is provided for over the residual life of
the fixed assets.
g) Research & Development
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to fixed assets.
h) Retirement benefits
i) Short Term Employee Benefits
All employee benefits payable only within twelve months of rendering
the service are classified as short term employee benfits.Benefits such
as salaries. wages etc. and the expected cost of bonus, exgratia,
incentives are recognized in the period during which the employee
renders the related service.
ii) Post Employment Benefits
a) State provident fund scheme is a defined contribution plan. The
contribution paid /payable under the scheme is recognized in the profit
& loss account during the period during which the employee renders the
related service
b) The company has a separate super annuation fund in respect of
certain categories of employees. Contributions paid /payable during the
year are recognized in the profit & loss account
c) The employee gratuity fund scheme managed by a trust is a defined
benefit plan. The present value of obligation under such defined
benefit plan is determined based on actuarial valuation under the
project unit credit method which recognizes each period of service as
giving rise to additional unit of employee benefits entitlement each
unit separately to build up the final obligation.
The obligation is measured at the present value of future cash flow.
The discount rates used for determining the present value of the
obligation under defined benefit plans is based on the market yields on
government securities as at balance sheet date, having maturity periods
approximated to the returns of related obligations.
Actuarial gains and lesser are recognized immediately in the profit&
loss account.
In case of funded plans the fair value of the planned assets is reduced
from the gross obligation under the defined benefit plans to recognize
the obligation on net basis.
d) Other long term employees benefits including leave encashment are
recognized in the same manner as defined benefit plans.
i) Miscellaneous expenditure Preliminary and share issue expenses are
being proportionately written off over a period of ten years.
j) Borrowing costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. Other
borrowing costs are recognised as an expense in the period in which
they are incurred. Capitalisation of borrowing costs ceases when
substantially all activities necessary to prepare the qualifying asset
for its intended use or sale are complete.
k) Excise & Other Duties
Excise duty in respect of finished goods lying in factory premises and
custom duty on goods lying in customs bonded warehouse are provided and
included in the valuation of inventory. Modvat benefit is accounted for
by reducing the purchase cost of the materials/fixed assets.
l) Claims and benefits
Claims receivable and export benefits are accounted on accrual basis to
the extent considered receivable.
m) Revenue recognition
Export sales are accounted on the basis of the date of bill of lading /
airway bill. Other sales are accounted for ex- factory on despatch.
Sales are net of returns,excise duty and include export
incentives/benefits.
n) Income from Investments/Deposits
Income from investments is credited to revenue in the year in which it
accrues. Income is stated in full with the tax thereon being accounted
for under Income tax deducted at source.
o) Taxation
Provision for taxation is based on assessable profits of the company as
determined under Income Tax Act, 1961.
Deferred taxation is provided using the liability method in respect of
taxation effect arising from all material timing difference between
accounting and tax treatment of income and expenditure which are
expected with reasonable probability to crystallize in the foreseeable
future.
Deferred tax benefits are recognized in the financial statements only
to the extent of any deferred tax liability or when such benefits are
reasonably expected to be realizable in the near future.
p) Earnings per share
Basic earning per share is calculated by dividing the net profit for
the year attributable to equity shareholders (after deducting the
redeemable preference share dividend) by the weighted average number of
equity shares outstanding during the year.
Diluted earning per share is calculated by dividing the net profits
attributable to equity shareholders (after deducting dividend on
redeemable preference shares) by the weighted average number of equity
shares outstanding during the year (adjusted for the effects of
dilutive options).
q) Contingent Liabilities
Contingent Liabilities as defined in Accounting Standard- 29 are
disclosed by way of notes to accounts Provision is made if it becomes
probable that an outflow of future
economic benefit will be required for an item previously dealt with as
a contingent liability.