Mar 31, 2015
A Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. Pursuant to section 133 of the
Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules,
2014, till the standards of accounting or any addendum thereto are
prescribed by the Central Government in consultation and recommendation
of the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently, these financial statements have been prepared to
comply in all material aspects with the Accounting Standards notified
under section 211(3C) of the Companies Act, 1956 [Companies (Accounting
Standards) Rules, 2006, as amended] and other relevant provisions of
the Companies Act, 2013.
B System of accounting and Use of estimates
(i) The Company follows the mercantile system of accounting and
recognises income and expenditure on an accrual basis except in case of
significant uncertainties.
(ii) Financial statements are prepared under the historical cost
convention. These costs are not adjusted to reflect the impact of
changing value in the purchasing power of money.
(iii) Estimates and assumptions used in the preparation of the
financial statements and disclosures are based upon Management's
evaluation of the relevant facts and circumstances as of the date of
the financial statements, which may differ from the actual results at a
subsequent date.
C Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes cost of
purchase, cost of conversion and all other costs incurred in bringing
the goods to their respective present location and condition.
Work-in-progress and finished goods include appropriate proportion of
overheads and, where applicable, excise duty.
D Cash and Bank Balances
Cash and Bank Balances also include fixed deposits, margin money
deposits, earmarked balances with bank, other bank balances and cash on
hand. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.
E Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
F Depreciation and amortisation
(i) From the current year, depreciation is provided on a pro rata basis
on the straight line method (SLM method) over the useful lives of the
respective assets as defined in Schedule II-Part 'C' of the Companies
Act, 2013 as against the past practice of computing depreciation at
rates with reference to the life of the assets subject to the minimum
rates provided by Schedule XIV of the Companies Act,1956.
(ii) The Vitrified Ceramic Tile Plant and the allied Machineries have
been classified as a continuous process plant on technical assessment &
depreciation has been provided accordingly.
(iii) Depreciation on additions is being provided on a pro-rata basis
from the date of such additions.
(iv) Depreciation on assets sold, discarded or demolished during the
year is being provided at their rates upto the date on which such
assets are sold, discarded or demolished.
G Revenue recognition
(i) "Sales are recognised, net of returns and trade discounts, on
transfer of significant risks and rewards of ownership to the buyer,
which generally coincides with the delivery of goods to customers.
Sales include excise duty but exclude sales tax and value added tax.
(ii) Export Incentives on Advance License are recognised on accrual
basis.
(iii) Interest Income is recognized on accrual basis and dividend
income is accounted for when the right to receive the same is
established.
H Tangible fixed assets
(i) Fixed assets are stated at cost net of tax / duty credits availed
if any less accumulated depreciation.
(ii) The cost of fixed assets includes interest on borrowings
attributable to acquisition of qualifying fixed assets up to the date
the asset is ready for its intended use and other incidental expenses
incurred up to that date.
(iii) Exchange differences arising on restatement / settlement of
long-term foreign currency borrowings relating to acquisition of
depreciable fixed assets are adjusted to the cost of the respective
assets and depreciated over the remaining useful life of such assets.
(iv) Subsequent expenditure relating to fixed assets is capitalised
only if such expenditure results in an increase in the future benefits
from such asset beyond its previously assessed standard of performance.
(v) Tangible Assets which are not ready for their intended use
comprising direct cost, related incidental expenses and attributable
interest are disclosed under capital work-in-progress.
I Foreign currency transactions and translations
(i) Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction or the rate approximate to the
actual rate at the date of transaction. Exchange Rate fluctuation
between the transaction date and the settlement date in respect of
revenue transactions are recognized in Statement of Profit and Loss and
in respect of acquisition of the fixed assets are adjusted to the cost
of the respective assets.
(ii) Non-monetary foreign currency items are carried at cost.
(iii) Monetary Items of Current Assets & Liabilities denominated in
Foreign Currency are translated at year end exchange rates and the
Profit/Loss so determined is recognized in the Profit & Loss account.
(iv) The profit/loss on cancellation or renewal of derivative
instruments such as forward contract and option contract undertaken to
hedge exchange fluctuation/price risks are recognized as
income/expenses in the Statement of Profit and Loss for the year.
J Investments
Non-Current investments are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Cost of investments include acquisition charges such as
brokerage, fees and duties.
K Employee benefits
(i) Short-term employee benefits
All employee benefits falling due wholly within twelve months of
rendering service are classified as short term employee benefits. The
benefits like salary, wages, short term compensated absences etc. and
the expected cost of bonus / performance incentives are recognised in
the period in which the employee renders the related service.
(ii) Defined contribution plans
The Company's contribution to provident fund and employees state
insurance scheme and other welfare funds are considered as defined
contribution plans and are charged as an expense as they fall due based
on the amount of contribution required to be made.
(iii) Defined benefit plans
The employees gratuity fund scheme managed by the trust is the
Company'e defined benefit plan. The present value of the obligation
under such plan is determined based on acturial valuation using the
projected unit credit method. In case such of funded plan, the fair
value of the plan assets is reduced from the gross obligation to
recognise such obligation on a net basis.
L Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing Costs attributable to acquisition and
construction of qualifying asset are capitalized as a part of the cost
of such asset up to the date when such asset is ready for its intended
use or sale. A qualifying asset is the one that necessarily takes a
substantial period to get ready for intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred.
M Segment reporting
(i) The Company identifies primary segments based on the dominant
source, nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
(ii) "The accounting policies adopted for segment reporting are in line
with the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
(iii) Inter-segment revenue is accounted on the basis of transactions
which are primarily determined based on market / fair value factors.
(iv) Revenue, expenses, assets and liabilities which relate to the
Company as a whole and are not allocable to segments on reasonable
basis have been included under "unallocated revenue / expenses / assets
/ liabilities".
N Earning Per Share
In determining the earnings per share, the Company considers the net
profit/loss after tax and post tax effect of any extra-
ordinary/exceptional item is shown separately. The number of shares
considered in computing basic earnings per share is the weighted
average number of shares outstanding during the year. The number of
shares considered for computing diluted earnings per share comprises
the weighted average number of shares used for deriving the basic
earnings per share and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares. The number of shares and potentially dilutive
equity shares are adjusted for any stock splits and bonus shares
issues.
O Taxes on income
(i) "Provision for taxation comprises of Current tax and Deferred Tax.
Current tax Provision has been made in accordance with the Income Tax
Act, 1961.
(ii) "Deferred tax for timing differences between the book and tax
profits for the period is accounted for, using the tax rates and laws
that have been substantively enacted as of the balance sheet date.
(iii) "Deferred tax assets arising from timing differences are
recognized to the extent there is reasonable certainty that these would
be realized in future.
(iv) Deferred tax assets are recognized on unabsorbed losses only if
there is virtual certainty that such deferred tax asset can be realized
against future taxable profit.
P Impairment of assets
An asset is treated as impaired when the carrying cost of such asset
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognised in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount.
Q Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes. Contingent assets are neither recognised
nor disclosed in the financial statements.
Mar 31, 2014
A. Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year unless stated otherwise. The financial statements have
been prepared on going concern basis.
B. Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known I materialise.
C. Inventories
Inventories are valued at the lower of cost (on FIFO I weighted average
basis) and the net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes cost of
purchase, cost of conversion and all other costs incurred in bringing
the goods to their respective present location and condition.
Work-in-progress and finished goods include appropriate proportion of
overheads and, where applicable, excise duty.
D. Cash and Bank Balances
Cash and Bank Balances also include fixed deposits, margin money
deposits, earmarked balances with bank, other bank balances and cash on
hand. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant riskof changes in value.
E. Cash flow statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.
F. Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956. The
Vitrified Ceramic Tile Plant and the allied Machineries have been
classified as a continuous process plant on technical assessment &
depreciation has been provided accordingly.
G. Revenue recognition
"Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax."
Export Incentives on Advance Licenses are recognized on accrual basis.
Interest Income is recognized on accrual basis and dividend income is
accounted for when the right to receive the same is established.
H. Tangible fixed assets
Fixed assets are stated at cost net oftax/duty credits availed if any
less accumulated depreciation and impairment losses, if any.
The cost of fixed assets includes interest on borrowings attributable
to acquisition of qualifying fixed assets up to the date the asset is
ready for its intended use and other incidental expenses incurred up to
that date.
Exchange differences arising on restatement I settlement of long-term
foreign currency borrowings relating to acquisition of depreciable
fixed assets are adjusted to the cost of the respective assets and
depreciated over the remaining useful life of such assets.
Subsequent expenditure relating to fixed assets is capitalised only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
Tangible Assets which are not ready for their intended use comprising
direct cost, related incidental expenses and attributable interest are
disclosed under capital work-in-progress.
I. Foreign currency transactions and translations
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction or the rate approximate to the
actual rate at the date of transaction. Exchange Rate fluctuation
between the transaction date and the settlement date in respect of
revenue transactions are recognized in Statement of Profit and Loss and
in respect of acquisition of the fixed assets are adjusted to the cost
of the respective assets.
Non-monetary foreign currency items are carried at cost.
All export proceeds I import payables not realized at the year end are
restated at the rate prevailing at the year end. The exchange
difference arising there on has been recognized as income I expenses in
the current year''s Statement of Profit and Loss.
Monetary Assets & Liabilities denominated in Foreign Currency are
translated at year end exchange rates and the Profit/Loss so determined
is recognized in the Profit & Loss account.
The profit/loss on cancellation or renewal of derivative instruments
such as forward contract and option contract undertaken to hedge
exchange fluctuation/price risks are recognized as income/expenses in
the Statement of Profit and Loss for the year.
J. Investments
Long-term investments are carried individually at costless provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Cost of investments include acquisition charges such as
brokerage, fees and duties.
K. Employee benefits
Short-term employee benefits
All employee benefits falling due wholly within twelve months of
rendering service are classified as short term employee benefits. The
benefits like salary, wages, short term compensated absences etc. and
the expected cost of bonus / performance incentives are recognised in
the period in which the employee renders the related service.
Defined contribution plans
The Company''s contribution to provident fund and employees state
insurance scheme and other welfare funds are considered as defined
contribution plans and are charged as an expense as they fall due based
on the amount of contribution required to be made.
Defined benefit plans
The employees gratuity fund scheme managed by the trust is the
company''e defined benefit plan. The present value of the obligation
under such plan is determined based on acturial valuation using the
projected unit credit method. In case such of funded plan, the
fairvalue of the plan assets is reduced from the gross obligation to
recognise such obligation on a net basis.
L. Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing Costs attributable to acquisition and
construction of qualifying asset are capitalized as a part of the cost
of such asset up to the date when such asset is ready for its intended
use or sale. A qualifying asset is the one that necessarily takes a
substantial period to get ready for intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred.
M. Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
"The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment. "
Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market/fair value factors.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/expenses/assets/liabilities".
N. Earning Per Share
"In determining the earnings per share, the Company considers the net
profit/loss after tax and post tax effect of any extra- ordinary/
exceptional item is shown separately. The number of shares considered
in computing basic earnings per share is the weighted average number of
shares outstanding during the year. The number of shares considered for
computing diluted earnings per share comprises the weighted average
number of shares used for deriving the basic earnings per share and
also the weighted average number of equity shares that could have been
issued on the conversion of all dilutive potential equity shares which
includes potential CCD conversions. The number of shares and
potentially dilutive equity shares are adjusted for any stock splits
and bonus shares issues."
O. Taxes on income
"Provision for taxation comprises of Current tax and Deferred Tax.
Current tax Provision has been made in accordance with the Income Tax
Act, 1961.
Deferred tax for timing differences between the book and tax profits
for the period is accounted for, using the tax rates and laws that have
been 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 these would be realized
in future.
Deferred tax assets are recognized on unabsorbed losses only if there
is virtual certainty that such deferred tax asset can be realized
against future taxable profit."
P. Impairment of assets
An asset is treated as impaired when the carrying cost of such asset
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognised in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount.
Q. Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes. Contingent assets are neither recognised
nor disclosed in the financial statements.
R. Derivative contracts
"The Company enters into derivative contracts in the nature of foreign
currency swaps, currency options, forward contracts with an intention
to hedge its existing assets and liabilities, firm commitments and
highly probable transactions. Derivative contracts which are closely
linked to the existing assets and liabilities are accounted as per the
policy stated for Foreign Currency Transactions and Translations.
Derivative contracts designated as a hedging instrument for highly
probable forecast transactions are accounted as per the policy stated
for Hedge Accounting.
All other derivative contracts are marked-to-market and losses are
recognised in the Statement of Profit and Loss. Gains arising on the
same are not recognised, until realised, on grounds of prudence."
Mar 31, 2013
A Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year unless stated otherwise. The financial statements have
been prepared on going concern basis.
B Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
C inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes cost of
purchase, cost of conversion and all other costs incurred in bringing
the goods to their respective present location and condition.
Work-in-progress and finished goods include appropriate proportion of
overheads and, where applicable, excise duty.
D Cash and Bank Balances
Cash and Bank Balances also include fixed deposits, margin money
deposits, earmarked balances with bank, other bank balances and cash on
hand. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.
E Cash flow statement
Cash flows are reported using the indirect method, whereby profit/
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
F Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956. The
Vitrified Ceramic Tile Plant and the allied Machineries have been
classified as a continuous process plant on technical assessment &
depreciation has been provided accordingly.
G Revenue recognition
"Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax."
Export Incentives on Advance Licenses are recognized on accrual basis.
Interest Income is recognized on accrual basis and dividend income is
accounted for when the right to receive the same is established.
H Tangible fixed assets
Fixed assets are stated at cost net of tax / duty credits availed if
any less accumulated depreciation and impairment losses, if any.
The cost of fixed assets includes interest on borrowings attributable
to acquisition of qualifying fixed assets up to the date the asset is
ready for its intended use and other incidental expenses incurred up to
that date.
Exchange differences arising on restatement / settlement of long-term
foreign currency borrowings relating to acquisition of depreciable
fixed assets are adjusted to the cost of the respective assets and
depreciated over the remaining useful life of such assets.
Subsequent expenditure relating to fixed assets is capitalised only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
Tangible Assets which are not ready for their intended use comprising
direct cost, related incidental expenses and attributable interest are
disclosed under capital work-in-progress.
I Foreign currency transactions and translations
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction or the rate approximate to the
actual rate at the date of transaction. Exchange Rate fluctuation
between the transaction date and the settlement date in respect of
revenue transactions are recognized in Statement of Profit and Loss and
in respect of acquisition of the fixed assets are adjusted to the cost
of the respective assets.
Non-monetary foreign currency items are carried at cost.
All export proceeds / import payables not realized at the year end are
restated at the rate prevailing at the year end. The exchange
difference arising there on has been recognized as income / expenses in
the current year''s Statement of Profit and Loss.
Monetary Assets & Liabilities denominated in Foreign Currency are
translated at year end exchange rates and the Profit/Loss so determined
is recognized in the Profit & Loss account.
The profit/loss on cancellation or renewal of derivative instruments
such as forward contract and option contract undertaken to hedge
exchange fluctuation/price risks are recognized as income/expenses in
the Statement of Profit and Loss for the year.
J Investments
Long-term investments are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Cost of investments include acquisition charges such as
brokerage, fees and duties.
K Employee benefits
Short-term employee benefits
All employee benefits falling due wholly within twelve months of
rendering service are classified as short term employee benefits. The
benefits like salary, wages, short term compensated absences etc. and
the expected cost of bonus / performance incentives are recognised in
the period in which the employee renders the related service.
Defined contribution plans
The Company''s contribution to provident fund and employees state
insurance scheme and other welfare funds are considered as defined
contribution plans and are charged as an expense as they fall due based
on the amount of contribution required to be made.
Defined benefit plans
The employees gratuity fund scheme managed by the trust is the
company''s defined benefit plan. The present value of the obligation
under such plan is determined based on acturial valuation using the
projected unit credit method. In case such of funded plan, the fair
value of the plan assets is reduced from the gross obligation to
recognise such obligation on a net basis.
L Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing Costs attributable to acquisition and
construction of qualifying asset are capitalized as a part of the cost
of such asset up to the date when such asset is ready for its intended
use or sale. A qualifying asset is the one that necessarily takes a
substantial period to get ready for intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred.
M Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
"The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment."
Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market / fair value factors.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue / expenses / assets
/liabilities".
N Earning Per Share
In determining the earnings per share, the Company considers the net
profit/loss after tax and post tax effect of any extra-
ordinary/exceptional item is shown separately. The number of shares
considered in computing basic earnings per share is the weighted
average number of shares outstanding during the year. The number of
shares considered for computing diluted earnings per share comprises
the weighted average number of shares used for deriving the basic
earnings per share and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares which includes potential CCD conversions. The
number of shares and potentially dilutive equity shares are adjusted
for any stock splits and bonus shares issues.
O Taxes on income ''
Provision for taxation comprises of Current tax and Deferred Tax.
Current tax Provision has been made in accordance with the Income Tax
Act, 1961 .Deferred tax for timing differences between the book and tax
profits for the period is accounted for, using the tax rates and laws
that have been 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 these would be realized
in future. Deferred tax assets are recognized on unabsorbed losses
only if there is virtual certainty that such deferred tax asset can be
realized against future taxable profit.
P Impairment of assets
An asset is treated as impaired when the carrying cost of such asset
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognised in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount.
Q Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes. Contingent assets are neither recognised
nordisclosed in the financial statements.
R Derivative contracts
The Company enters into derivative contracts in the nature of foreign
currency swaps, currency options, forward contracts with an intention
to hedge its existing assets and liabilities, firm commitments and
highly probable transactions. Derivative contracts which are closely
linked to the existing assets and liabilities are accounted as per the
policy stated for Foreign Currency Transactions and Translations.
Derivative contracts designated as a hedging instrument for highly
probable forecast transactions are accounted as per the policy stated
for Hedge Accounting. All other derivative contracts are marked-
to-market and losses are recognised in the Statement of Profit and
Loss. Gains arising on the same are not recognised, until realised, on
grounds of prudence.
Mar 31, 2012
A Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year unless stated otherwise.
B Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known I materialise.
C Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes cost of
purchase, cost of conversion and all other costs incurred in bringing
the goods to their respective present location and condition.
Work-in-progress and finished goods include appropriate proportion of
overheads and, where applicable, excise duty.
D Cash and Bank Balances
Cash and Bank Balances also include fixed deposits, margin money
deposits, earmarked balances with bank, other bank balances and cash on
hand. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.
E Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
F Depreciation and amortisation .
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956. The
Vitrified Ceramic Tile Plant and the allied Machineries have been
classified as a continuous process plant on technical assessment &
depreciation has been provided accordingly.
G Revenue recognition
"Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax."
Export Incentives on Advance Licenses are recognized on accrual basis.
Interest Income is recognized on accrual basis and dividend income is
accounted for when the right to receive the same is established.
H Tangible fixed assets
Fixed assets are stated at cost net of tax /duty credits availed if any
less accumulated depreciation and impairment losses, if any.
The cost of fixed assets includes interest on borrowings attributable
to acquisition of qualifying fixed assets upto the date the asset is
ready for its intended use and other incidental expenses incurred up to
that date.
Exchange differences arising on restatement/ settlement of long-term
foreign currency borrowings relating to acquisition of
depreciable fixed assets are adjusted to the cost of the respective
assets and depreciated over the remaining useful life of such assets.
Subsequent expenditure relating to fixed assets is capitalised only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
Tangible Assets which are not ready for their intended use comprising
direct cost, related incidental expenses and attributable interest are
disclosed under capital work-in-progress.
I Foreign currency transactions and translations
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction or the rate approximate to the
actual rate at the date of transaction. Exchange Rate fluctuation
between the transaction date and the settlement date in respect of
revenue transactions are recognized in Statement of Profit and Loss and
in respect of acquisition of the fixed assets are adjusted to the cost
of the respective assets.
Non-monetary foreign currency items are carried at cost.
All export proceeds / import payables not realized at the year end are
restated at the rate prevailing at the year end. The exchange
difference arising there on has been recognized as income / expenses in
the current year's Statement of Profit and Loss
Monetary Assets & Liabilities denominated in Foreign Currency are
translated at year end exchange rates and the Profit/Loss so determined
is recognized in the Profit & Loss account.
The profit/loss on cancellation or renewal of derivative instruments
such as forward contract and option contract undertaken to hedge
exchange fluctuation/price risks are recognized as income/expenses in
the Statement of Profit and Loss for the year.
J Investments
Long-term investments are carried individually at costless provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Cost of investments include acquisition charges such as
brokerage, fees and duties.
K Employee benefits
Short-term employee benefits
All employee benefits falling due wholly within twelve months of
rendering service are classified as short term employee benefits. The
benefits like salary, wages, short term compensated absences etc. and
the expected cost of bonus / performance incentives are recognised in
the period in which the employee renders the related service.
Defined contribution plans
The Company's contribution to provident fund and employees state
insurance scheme and other welfare funds are considered as defined
contribution plans and are charged as an expense as they fall due based
on the amount of contribution required to be made.
Defined benefit plans
The employees gratuity fund scheme managed by the trust is the
company'e defined benefit plan. The present value of the obligation
under such plan is determined based on acturial valuation using the
projected unit credit method. In case such of funded plan, the fair
value of the plan assets is reduced from the gross obligation to
recognise such obligation on a net basis.
L Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing Costs attributable to acquisition and
construction of qualifying asset are capitalized as a part of the cost
of such asset up to the date when such asset is ready for its intended
use or sale. A qualifying asset is the one that necessarily takes a
substantial period to get ready for intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred.
M Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market/fair value factors.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue / expenses / assets /
liabilitiesÃ.
N Earning Per Share
In determining the earnings per share, the Company considers the net
profit/loss after tax and post tax effect of any extra-
ordinary/exceptional item is shown separately. The number of shares
considered in computing basic earnings per share is the weighted
average number of shares outstanding during the year. The number of
shares considered for computing diluted earnings per share comprises
the weighted average number of shares used for deriving the basic
earnings per share and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares which includes potential CCD conversions. The
number of shares and potentially dilutive equity shares are adjusted
for any stock splits and bonus shares issues.
O Taxes on income
Provision for taxation comprises of Current tax and Deferred Tax.
Current tax Provision has been made in accordance with the Income Tax
Act, 1961 .Deferred tax for timing differences between the book and tax
profits for the period is accounted for, using the tax rates and laws
that have been 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 these would be realized
in future. Deferred tax assets are recognized on unabsorbed losses
only if there is virtual certainty that such deferred tax asset can be
realized against future taxable profit.
P Impairment of assets
An asset is treated as impaired when the carrying cost of such asset
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognised in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount.
Q Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes. Contingent assets are neither recognised
nor disclosed in the financial statements.
R Derivative contracts
The Company enters into derivative contracts in the nature of foreign
currency swaps, currency options, forward contracts with an intention
to hedge its existing assets and liabilities, firm commitments and
highly probable transactions. Derivative contracts which are closely
linked to the existing assets and liabilities are accounted as per the
policy stated for Foreign Currency Transactions and Translations.
Derivative contracts designated as a hedging instrument for highly
probable forecast transactions are accounted as per the policy stated
for Hedge Accounting. All other derivative contracts are marked-
to-market and losses are recognised in the Statement of Profit and
Loss. Gains arising on the same are not recognised, until realised, on
grounds of prudence.
Mar 31, 2011
I BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Financial statements are prepared under the historical cost
convention, on an accrual basis, and in accordance with the relevant
provisions of the Companies Act, 1956 and the applicable mandatory
Accounting Standards issued by the Institute Of Chartered Accountants
Of India.
II FIXEDASSETS
Fixed Assets are stated at historical cost (net of CENVAT credit
availed) less accumulated Depreciation/Amortization thereon and/or
recoverable value in case of Impairment, if any. Cost comprises the
purchase price and any attributable cost of bringing the asset to its
working condition for its intended use and also comprises of borrowing
costs attributable to acquisition and construction of assets up to the
date when such asset is ready for its intended use.
III DEPRECIATION
a) Depreciation is provided on Straight Line Method at the rates and in
the manner specified in the Schedule XIV of the Companies Act, 1956.
b) The Ceramic Plant and the allied Machineries have been classified as
a continuous process plant on technical assessment & depreciation has
been provided accordingly.
c) Depreciation on the Fixed Assets added/disposed off /discarded
during the period has been provided on pro-rata basis with reference to
the month of addition/disposal/discarding.
d) Depreciation on the amounts capitalized on account of foreign
exchange fluctuation is provided prospectively over residual life of
the assets.
IV BORROWING COST
a) Borrowing Costs attributable to acquisition and construction of
qualifying asset are capitalized as a part of the cost of such asset up
to the date when such asset is ready for its intended use. A qualifying
asset is the one that necessarily takes a substantial period to get
ready for intended use.
b) Other borrowing costs are recognized as an expense in the period in
which they are incurred.
V FOREIGN CURRENCYTRANSACTIONS
a) Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction. Exchange Rate fluctuation
between the transaction date and the settlement date in respect of
revenue transactions are recognized in Profit & Loss account and in
respect of acquisition of the fixed assets are adjusted to the cost of
the respective assets.
b) All export proceeds / import payables not realized at the year end
are restated at the rate prevailing at the year end. The exchange
difference arising there on has been recognized as income / expenses in
the current year's Profit & Loss account.
c) Monetary Assets & Liabilities denominated in Foreign Currency are
translated at year end exchange rates and the Profit/Loss so determined
is recognized in the Profit & Loss account.
d) As per the Provisions of the AS 11 of the ICAI, the profit/loss on
cancellation or renewal of derivative instruments such as forward
contract and option contract undertaken to hedge exchange
fluctuation/price risks are recognized as income/expenses in the
Profits Loss accountforthe year.
VI INVESTMENTS
Long Term Investments are stated at cost less provision, if any, for
permanent diminution in their value.
VII INVENTORIES
a) Raw Materials, components, stores and spares are valued at lowerof
cost and net realizable value.
b) Work in Progress and finished goods are valued at lower of cost and
net realizable value. Cost comprises of direct materials, direct
labour, other costs of conversion and other costs incurred in bringing
the inventories to their present location and condition.
c) Cost of inventories is computed on Weighted Average / FIFO basis.
VI REVENUE RECOGNITION
a) Sales are recorded net of returns.
b) Export Incentives on Advance License are recognized on accrual
basis.
c) Interest Income is recognized on accrual basis and dividend income
is accounted for when the right to receive the same is established.
d) As per the Provisions of the Accounting Standard-7 'Construction
Contracts' issued by the ICAI, Costs and progress payments received are
accumulated during the course of the project. Revenue is not
recognized until the project is substantially completed.
IX RETIREMENTBENEFITS
a) The Company's contributions in respect of Provident Fund are charged
to the profit & loss account each year.
b) The Company's contribution to Life Insurance Corporation of India
(LIC) and SBI Life Insurance Co. Ltd. for group gratuity policy is
charged off to Profit and Loss account eachi year. The contribution to
group gratuity policy is based on values as actuarially determined and
demanded by respective gratuity funds.
c) Liability for accumulated earned leave of employees is ascertained
and provided for as per Company Rules.
X TAXES ON INCOME
a) Provision for taxation comprises of Current tax, Deferred Tax and
Fringe Benefit Tax. Current tax Provision has been made in accordance
with the Income Tax Act, 1961.
b) Deferred tax for timing differences between the book and tax profits
for the period is accounted for, using the tax rates and laws that have
been substantively enacted as of the balance sheet date.
c) Deferred tax assets arising from timing differences are recognized
to the extent there is reasonable certainty that these would be
realized in future.
d) Deferred tax assets are recognized on unabsorbed losses only if
there is virtual certainty that such deferred tax asset can be realized
against future taxable profit.
XI IMPAIRMENT OF ASSETS
Factors giving rise to any indication of impairment of the carrying
amounts of the Company's Assets are appraised at each Balance Sheet
date to determine and provide / reverse an impairment loss. There is
no such impairment in the carrying amount of the Company's Assets.
XII PROVISIONS AND CONTINGENT LIABILITIES
a) Provisions are recognized when the Company has a legal and
constructive obligation as a result of a past event, for which it is
probable that a cash outflow will be required and a reliable estimate
can be made of the amount of the obligation.
b) Contingent Liabilities are disclosed when the Company has a possible
obligation or a present obligation and it is uncertain as to whether a
cash outflow will be required to settle the obligation.
Mar 31, 2010
I BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The Financial statements are prepared under the historical cost
convention, on an accrual basis, and in accordance with the relevant
provisions of the Companies Act, 1956 and the applicable mandatory
Accounting Standards issued by the Institute Of Chartered Accountants
Of India.
II FIXED ASSETS:
Fixed Assets are stated at historical cost (net of CENVAT credit
availed) less accumulated Depreciation/ amortization thereon and/or
recoverable value in case of Impairment, if any. Cost comprises the
purchase price and any attributable cost of bringing the asset to its
working condition for its intended use and also comprises of borrowing
costs attributable to acquisition and construction of assets up to the
date when such asset is ready for its intended use.
III DEPRECIATION
a. Depreciation is provided on Straight Line Method at the rates and
in the manner specifi ed in the Schedule XIV of the Companies Act,
1956.
b. The Ceramic Plant and the allied Machineries have been classifi ed
as a continuous process plant on technical assessment & depreciation
has been provided accordingly.
c. Depreciation on the Fixed Assets added/ disposed off /discarded
during the period has been provided on pro-rata basis with reference to
the month of addition/disposal/ discarding.
d. Depreciation on the amounts capitalized on account of foreign
exchange fluctuation is provided prospectively over residual life of
the assets.
IV BORROWING COST
a. Borrowing Costs attributable to acquisition and construction of
qualifying asset are capitalized as a part of the cost of such asset up
to the date when such asset is ready for its intended use. A qualifying
asset is the one that necessarily takes a substantial period to get
ready for intended use.
b. Other borrowing costs are recognized as an expense in the period in
which they are incurred.
V FOREIGN CURRENCY TRANSACTIONS
a. Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction. Exchange Rate fl uctuation
between the transaction date and the settlement date in respect of
revenue transactions are recognized in Profi t & Loss account and in
respect of acquisition of the fi xed assets are adjusted to the cost of
the respective assets.
b. All export proceeds / import payables not realized at the year end
are restated at the rate prevailing at the year end. The exchange
difference arising there on has been recognized as income / expenses in
the current years Profi t & Loss account.
c. Monetary Assets & Liabilities denominated in Foreign Currency are
translated at year end exchange rates and the Profi t/Loss so
determined is recognized in the Profi t & Loss account.
d. As per the Provisions of the AS 11 of the ICAI, the profi t/loss on
cancellation or renewal of derivative instruments such as forward
contract and option contract undertaken to hedge exchange fl
uctuation/price risks are recognized as income/expenses in the Profi t
& Loss account for the year.
VI INVESTMENTS
Long Term Investments are stated at cost less provision, if any, for
permanent diminution in their value.
VII INVENTORIES
a. Raw Materials, components, stores and spares are valued at lower of
cost and net realizable value.
b. Work in Progress and fi nished goods are valued at lower of cost
and net realizable value. Cost comprises of direct materials, direct
labour, other costs of conversion and other costs incurred in bringing
the inventories to their present location and condition.
c. Cost of inventories is computed on Weighted Average / FIFO basis.
VIII REVENUE RECOGNITION
a. Sales are recorded net of returns.
b. Export Incentives on Advance License are recognized on accrual
basis.
c. Interest Income is recognized on accrual basis and dividend income
is accounted for when the right to receive the same is established.
IX RETIREMENT BENEFITS
a. The Companys contributions in respect of Provident Fund are
charged to the profi t & loss account each year.
b. The Companys contribution to Life Insurance Corporation of India
(LIC) and SBI Life Insurance Co. Ltd. for group gratuity policy is
charged off to Profi t and Loss account each year. The contribution to
group gratuity policy is based on values as actuarially determined and
demanded by respective gratuity funds.
c. Liability for accumulated earned leave of employees is ascertained
and provided for as per Company Rules.
X TAXES ON INCOME
a. Provision for taxation comprises of Current tax, Deferred Tax and
Fringe Benefi t Tax. Current tax Provision has been made in accordance
with the Income Tax Act, 1961.
b. Deferred tax for timing differences between the book and tax profi
ts for the period is accounted for, using the tax rates and laws that
have been substantively enacted as of the balance sheet date.
c. Deferred tax assets arising from timing differences are recognized
to the extent there is reasonable certainty that these would be
realized in future.
d. Deferred tax assets are recognized on unabsorbed losses only if
there is virtual certainty that such deferred tax asset can be realized
against future taxable profit.
XI IMPAIRMENT OF ASSETS
Factors giving rise to any indication of impairment of the carrying
amounts of the Companys Assets are appraised at each Balance Sheet
date to determine and provide / reverse an impairment loss. There is no
such impairment in the carrying amount of the Companys Assets.
XII PROVISIONS AND CONTINGENT LIABILITIES
a. Provisions are recognized when the Company has a legal and
constructive obligation as a result of a past event, for which it is
probable that a cash outfl ow will be required and a reliable estimate
can be made of the amount of the obligation.
b. Contingent Liabilities are disclosed when the Company has a
possible obligation or a present obligation and it is uncertain as to
whether a cash outflow will be required to settle the obligation.