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Accounting Policies of Fenoplast Ltd. Company

Mar 31, 2015

A) Basis of preparation :

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP") to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1. Revenue Recognition:

a) Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer.

b) Revenue from product sales is stated inclusive of excise duty applicable, trade discounts and allowances.

2. Tangible Fixed Assets:

a) Fixed assets are stated at cost of acquisition less depreciation except for certain fixed assets which have been stated at revalued costs as of 31.03.2001. Cost of acquisition includes freight, duties (net of cenvat wherever applicable), taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. The revalued fixed assets are restated at their estimated current replacement values as on date of revaluation as determined by the valuers.

b) During the year, depreciation is provided on the straight line method and at the useful life and in the manner specified in Schedule II of the Companies Act, 2013 for the assets acquired on or after 01.04.1993 and on the written down value and at the useful life and in the manner specified in Schedule II of the Companies Act, 2013 for the assets acquired before 01.04.1993.Depreciation for the year arising on revaluation of fixed assets is withdrawn from Revaluation Reserve.

3. Intangible Assets:

Costs relating to software, which are acquired, are capitalized and amortized on a straight-line at the useful life and in the manner specified in Schedule II of the Companies Act, 2013

4. Use of estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

5. Borrowing Costs:

Borrowing costs includes interest, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

6. Investments:

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

7. Foreign Currency Transactions:

a) Foreign currency transactions in case of purchase of materials and sale of goods, the exchange gain/losses on settlements during the year are adjusted to respective accounts.

b) Current Assets, Loans & Other Liabilities denominated in foreign currencies are translated at the rate prevailing on the date of Balance Sheet or on the basis of Forward contracts. Exchange gain/loss on those assets & liabilities including fixed assets are dealt with in the Statement of Profit and Loss.

8. Inventories:

a) Raw materials, Stores and Spares are valued at lower of cost or net realizable value.

b) Work-in-Progress are valued at cost based on technical estimate made by the company.

c) Finished goods are valued at lower of cost or net realisable value.

9. Employee Benefits:

a) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation and projected unit credit method. The company has created an approved gratuity fund which has taken a group gratuity cum insurance policy with Life Insurance Corporation of India, for future payment on gratuity to employees. The Company accounts for gratuity liability of its employees on the basis of actuarial valuation carried out at the year end by an independent actuary.

b) Leave encashment is accounted on the basis of actuarial valuation carried out at the year end by an independent actuary. Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Statement of Profit and Loss.

c) Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Statement of Profit and Loss

10. Taxes on Income:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arisen during the year and reverse in subsequent periods.

11. Earnings Per Share:

Basic earnings per share is computed by dividing the net profit after-tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earning per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

12. Impairment of Assets:

The company assesses at each balance sheet date whether there is any indication that any asset may be repaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

13. Provisions, Contingent Liabilities and Contingent Assets:

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.


Mar 31, 2014

1. Accounting Convention:

The financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention on the accrual basis and mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions for the Companies Act, 1956 read with General Circular 8/2014 dated 4th April, 2014 issued by Ministry of Corporate Affairs.

2. Revenue Recognition:

a) Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer.

b) Revenue from product sales is stated inclusive of excise duty applicable trade discounts and allowances.

3. Tangible Fixed Assets:

a) Fixed assets are stated at cost of acquisition less depreciation except for certain fixed assets which have been stated at revalued costs as of 31.03.2001. Cost of acquisition includes freight, duties (net of cenvat wherever applicable), taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. The revalued fixed assets are restated at their estimated current replacement values as on date of revaluation as determined by the valuers.

b) Depreciation is provided on Written Down Value Method for assets commissioned before 01.04.1993; and on Straight Line Method for assets acquired on or after 01.04.1993 as per the provisions of Schedule XIV of the Companies Act, 1956. Depreciation for the year arising on revaluation of fixed assets is withdrawn from Revaluation Reserve.

4. Intangible Assets:

Costs relating to software, which are acquired, are capitalized and amortized on a straight-line basis over their useful l ives of five years.

5. Investments:

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost.

However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

6. Foreign Currency Transactions:

a) Foreign currency transactions in case of purchase of materials and sale of goods, the exchange gain/losses on settlements during the year are adjusted to respective accounts.

b) Current Assets, Loans & Other Liabilities denominated in foreign currencies are translated at the rate prevailing on the date of Balance Sheet or on the basis of Forward contracts. Exchange gain/loss on those assets & liabilities including fixed assets are dealt with in the Statement of Profit and Loss.

7. Inventories:

a) Raw materials, Stores and Spares are valued at lower of cost or net realizable value.

b) Work-in-Progress are valued at cost based on technical estimate made by the Company.

c) Finished goods are valued at lower of cost or net realisable value.

8. Employee Benefits:

a) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation and projected unit credit method. The Company has created an approved gratuity fund which has taken a group gratuity cum insurance policy with Life Insurance Corporation of India, for future payment on gratuity to employees. The Company accounts for gratuity liability of its employees on the basis of actuarial valuation carried out at the year end by an independent actuary.

b) Leave encashment is accounted on the basis of actuarial valuation carried out at the year end notes on financial statements by an independent actuary. Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Statement of Profit and Loss.

c) Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Statement of Profit and Loss

9. Taxes on Income: The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arisen during the year and reverse in subsequent periods.

10. Earnings Per Share:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earning per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

11. Impairment of Assets:

The Company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

12. Provisions, Contingent Liabilities and Contingent Assets:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not , require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.


Mar 31, 2013

1. Accounting Convention:

The financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention on the accrual basis and mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions for the Companies Act, 1956.

2. Revenue Recognition:

a) Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer.

b) Revenue from product sales is stated inclusive of excise duty applicable trade discounts and allowances.

3. Tangible Fixed Assets:

a) Fixed assets are stated at cost of acquisition less depreciation except for certain fixed assets which have been stated at revalued costs as of 31.03.2001. Cost of acquisition includes freight, duties (net of cenvat wherever applicable), taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. The revalued fixed assets are restated at their estimated current replacement values as on date of revaluation as determined by the valuers.

b) Depreciation is provided on Written Down Value Method for assets commissioned before 01.04.1993; and on Straight Line Method for assets acquired on or after 01.04.1993 as per the provisions of Schedule XIV of the Companies Act, 1956. Depreciation for the year arising on revaluation of fixed assets is withdrawn from Revaluation Reserve.

4. Intangible Assets:

Costs relating to software, which are acquired, are capitalized and amortized on a straight-line basis over their useful lives of five years.

5. Investments:

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

6. Foreign Currency Transactions:

a) Foreign currency transactions in case of purchase of materials and sale of goods, the exchange gain/losses on settlements during the year are adjusted to respective accounts.

b) Current Assets, Loans & Other Liabilities denominated in foreign currencies are translated at the rate prevailing on the date of Balance Sheet or on the basis of Forward contracts. Exchange gain/loss on those assets & liabilities including fixed assets are dealt with in the Statement of Profit and Loss.

7. Inventories:

a) Raw materials, Stores and Spares are valued at lower of cost or net realizable value.

b) Work-in-Progress are valued at cost based on technical estimate made by the company.

c) Finished goods are valued at lower of cost or net realisable value.

8. Employee Benefits:

a) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation and projected unit credit method. The company has created an approved gratuity fund which has taken a group gratuity cum insurance policy with Life Insurance Corporation of India, for future payment on gratuity to employees. The Company accounts for gratuity liability of its employees on the basis of actuarial valuation carried out at the year end by an independent actuary.

b) Leave encashment is accounted on the basis of actuarial valuation carried out at the year end by an independent actuary. Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Statement of Profit and Loss. c) Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Statement of Profit and Loss

9. Taxes on Income:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arisen during the year and reverse in subsequent periods.

10. Earnings Per Share:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity snares considered for deriving basic earning per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

11. Impairment of Assets:

The company assesses at each balance sheet date whether there is any indication that any asset may be repaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

12. Provisions, Contingent Liabilities and Contingent Assets:

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.


Mar 31, 2012

1. ACCOUNTING CONVENTION:

The financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention on the accrual basis and mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions for the Companies Act, 1956.

2. PRESENTION AND DISCLOSURE OF FINANCIAL STATEMENTS:

During the year ended 31 March, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable for the current year.

3. REVENUE RECOGNITION:

a) Sale of goods is recognized at the point of dispatch of finished goods to customers.

b) Domestic: Sales value is inclusive of excise duty but does not include other recoveries such as handling charges, transport, octroi, sales tax, etc.

c) Exports: Sales value is inclusive of freight, insurance and finance charges wherever included in the invoice and exchange fluctuations on export receivables.

4. FIXED ASSETS:

a) Fixed assets are stated at cost of acquisition less depreciation except for certain fixed assets which have been stated at revalued costs as of 31.03.2001.

Cost of acquisition is inclusive of freight, duties (net of Cenvat/Modvat credit wherever applicable), taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. The revalued fixed assets are restated at their estimated current replacement values as on date of revaluation as determined by the values.

b) Capital Work-in-Progress: The Cost of fixed assets and expenses incurred for acquiring and which are under erection are shown under Capital Work-in- Progress. The advances given for acquiring/development of fixed assets are shown under Capital Work-in-Progress.

5. DEPRECIATION:

Depreciation is provided on Written Down Value Method for assets commissioned before 01.04.1993; and on Straight Line Method for assets acquired on or after 01.04.1993 as per the provisions of Schedule XIV of the Companies Act, 1956. Depreciation for the year arising on revaluation of fixed assets is withdrawn from Revaluation Reserves.

6. INVESTMENTS:

Long term investments are stated at cost. The diminution in the market value of such investments is not recognized unless such diminution is considered permanent in nature.

7. FOREIGN CURRENCY TRANSACTIONS:

a) Foreign currency transactions in case of purchase of materials and sale of goods, the exchange gain/losses on settlements during the year are adjusted to respective accounts.

b) Current Assets, Loans & Other Liabilities denominated in foreign currencies are translated at the rate prevailing on the date of Balance Sheet or on the basis of Forward contracts. Exchange gain/loss on those Assets & Liabilities including Fixed Assets are dealt with in the profit & loss account.

8. INVENTORIES:

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

b) Stocks in process are valued at cost based on technical estimate made by the company.

c) Finished goods are valued at cost (which includes average manufacturing overheads) or net realizable value whichever is lower. Finished goods value includes Excise Duty Paid / Payable on such goods.

9. EMPLOYEE BENEFITS:

a) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation and projected unit credit method. The company has created an approved gratuity fund which has taken a group gratuity cum insurance policy with Life Insurance Corporation of India (L.I.C of India.), for future payment on gratuity to employees. The Company accounts for gratuity liability of its employees on the basis of actuarial valuation carried out at the year end by an independent actuary.

b) Leave encashment is accounted on the basis of actuarial valuation carried out at the yearend by an independent actuary. Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss account.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.

11. TAXES ON INCOME:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which has arisen during the year and reverses in subsequent periods.

12. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

13. IMPAIRMENT OF ASSETS:

The company assesses at each balance sheet date whether there is any indication that any asset may be repaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.


Mar 31, 2011

1. ACCOUNTING CONVENTION:

The financial statements are prepared in accordance with Generally Accepted Accounting Principles under the historical cost convention on the accrual basis and mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION:

a) Sale of goods is recognized at the point of dispatch of finished goods to customers.

b) Domestic: Sales value is inclusive of excise duty but does not include other recoveries such as handling charges, transport, octroi, sales tax, etc.,

c) Exports: Sales value is inclusive of freight, insurance and finance charges wherever included in the invoice and exchange fluctuations on export receivables.

3. FIXED ASSETS:

a) Fixed assets are stated at cost of acquisition less depreciation except for certain fixed assets which have been stated at revalued costs as of 31.03.2001. Cost of acquisition is inclusive of freight, duties (net of Cenvat/Modvat credit wherever applicable), taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. The revalued fixed assets are restated at their estimated current replacement values as on date of revaluation as determined by the valuers.

b) Capital Work-in-Progress: The Cost of fixed assets and expenses incurred for acquiring and which are under erection are shown under Capital Work-in-Progress. The advances given for acquiring/development of fixed assets are shown under Capital Work-in-Progress.

4. DEPRECIATION:

Depreciation is provided on Written Down Value Method for assets commissioned before 01.04.1993; and on Straight Line Method for assets acquired on or after 01.04.1993 as per the provisions of Schedule XIV of the Companies Act, 1956. Depreciation for the year arising on revaluation of fixed assets is withdrawn from Revaluation Reserves.

5. INVESTMENTS:

Long term investments are stated at cost. The diminution in the market value of such investments not recognized unless such diminution is considered permanent in nature.

6. FOREIGN CURRENCY TRANSACTIONS:

a) Foreign currency transactions in case of purchase of materials and sale of goods, the exchange gain/losses on settlements during the year are adjusted to respective accounts.

b) Current Assets, Loans & Other Liabilities denominated in foreign currencies are translated at the rate prevailing on the date of Balance Sheet or on the basis of Forward contracts. Exchange gain/loss on those Assets & Liabilities including Fixed Assets are dealt with in the profit & loss account.

7. INVENTORIES:

a) Raw materials and packing materials are valued at cost on First in First Out (FIFO) basis.

b) Stocks in process are valued at cost based on technical estimate made by the company.

c) Finished goods are valued at cost (which includes average manufacturing overheads) or net realisable value whichever is lower. Finished goods value includes Excise Duty Paid / Payable on such goods.

8. EMPLOYEE BENEFITS:

a) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation and projected unit credit method. The company has created an approved gratuity fund which has taken a group gratuity cum insurance policy with Life Insurance Corporation of India (L.I.C of India.), for future payment on gratuity to employees.

b) Leave encashment is accounted when it becomes due and payable. Contributions to Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss account.

9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.

10. TAXES ON INCOME:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arisen during the year and reverse in subsequent periods.

11. EARNINGS PER SHARE:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earning per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

12. IMPAIRMENT OF ASSETS:

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.


Mar 31, 2010

1. ACCOUNTING CONVENTION:

The financial statements are prepared in accordance with Generally Accepted Accounting Principles under the historical cost convention on the accrual basis and mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956.

2. FIXED ASSETS :

a) Fixed assets are stated at cost of acquisition less depreciation except for certain fixed assets which have been stated at revalued costs as of 31-03-2001. Cost of acquisition is inclusive of freight, duties (net of Cenvat/Modvat credit wherever applicable), taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. The revalued fixed assets are restated at their estimated current replacement values as on date of revaluation as determined by the valuers.

b) Capital Work-in-Progress: The Cost of fixed assets and expenses incurred for acquiring and which are under erection are shown under Capital Work-in-Progress. The advances given for acquiring/ development of fixed assets are shown under Capital Work-in-Progress.

3. DEPRECIATION;

Depreciation is provided on Written Down Value Method for assets commissioned before 01-04-93; and on Straight Line Method for assets acquired on or after 01 -04-93 as per the provisions of Schedule XIV of the Companies Act, 1956. Depreciation for the year arising on revaluation of fixed assets is withdrawn from Revaluation Reserves.

4. INVESTMENTS:

Long term investments are stated at cost. The diminution in the market value of such investments not recognized unless such diminution is considered permanent in nature.

5. FOREIGN CURRENCIES:

a) Foreign currency transactions in case of purchase of materials and sale of goods, the exchange gain/losses on settlements during the year are adjusted to respective accounts.

b) Current Assets, Loans & Other Liabilities denominated in foreign currencies are translated at the rate prevailing on the date of Balance Sheet or on the basis of Forward contracts. Exchange gain/ loss on those Assets & Liabilities including Fixed Assets are dealt with in the profit & loss account.

8. INVENTORIES:

a) Raw materials and packing materials are valued at cost on First in First Out (FIFO) basis.

b) Stocks in process are valued at cost based on technical estimate made by the company.

c) Finished goods are valued at cost (which includes average manufacturing overheads) or net realisable value whichever is lower. Finished goods value includes Excise Duty Paid / Payable on such goods.

7. SALES;

a) Domestic; Sales value is inclusive of excise duty but does not include other recoveries such as handling charges, transport, octroi, sales tax, etc.,

b) Exports: Sales value is inclusive of freight, insurance and finance charges wherever included in the invoice and exchange fluctuations on export receivables.

8. EMPLOYEE BENEFITS;

Gratuity and Leave encashment are accounted when it becomes due and payable. Contributions to Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss account.

9. PROVISION AND CONTINGENT LIABILITIES:

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.

10. TAXATION:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arisen during the year and reverse in subsequent periods.

11. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earning per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

12. IMPAIRMENT OF ASSETS:

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.


Mar 31, 2009

1. ACCOUNTING CONVENTION:

The financial statements are prepared in accordance with Generally Accepted Accounting Principle: under the historical cost convention on the accrual basis and mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956.

2. FIXED ASSETS :

a) Fixed assets are stated at cost of acquisition less depreciation except for certain fixed assets which have been stated at revalued costs as of 31-03-2001. Cost of acquisition is inclusive of freight, duties (net of Cenvat/Modva. credit wherever applicable), taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. The revalued fixed assets are restated at their estimated current replacement values as on date of revaluation as determined by the valuers.

b) Capital Work-in-Progress: The Cost of fixed assets and expenses incurred for acquiring and which are under erection are shown under Capital Work-in-Progress. The advances given for acquiring/ development of fixed assets are shown under Capital Work-in-Progress.

3. DEPRECIATION:

Depreciation is provided on Written Down Value Method for assets commissioned before 01-04-93; and on Straight Line Method for assets acquired on or after 01 -04-93 as per the provisions of Schedule XIV of the Companies Act, 1956. Depreciation for the year arising on revaluation of fixed assets is withdrawn from Revaluation Reserves.

4. INVESTMENTS:

Long term investments are stated at cost. The diminution in the market value of such investments not recognized unless such diminution is considered permanent in nature.

5. FOREIGN CURRENCIES:

a) Foreign currency transactions in case of purchase of materials and sale of goods, the exchange gain/losses on settlements during the year are adjusted to respective accounts.

b) Current Assets, Loans & Other Liabilities denominated in foreign currencies are translated at the rate prevailing on the date of Balance Sheet or on the basis of Forward contracts. Exchange gain/ loss on those Assets & Liabilities including Fixed Assets are dealt with in the profit & loss account.

6. INVENTORIES:

a) Raw materials and packing materials are valued at cost on First in First Out (FIFO) basis.

b) Stocks in process are valued at cost based on technical estimate made by the company.

c) Finished goods are valued at cost (which includes average manufacturing overheads) or net realisable value whichever is lower. Finished goods value includes Excise Duty Paid / Payable on such goods.

7. SALES:

a) Domestic: Sales value is inclusive of excise duty but does not include other recoveries such as handling charges, transport, octroi, sales tax, etc.,

b) Exports: Sales value is inclusive of freight, insurance and finance charges wherever included in the invoice and exchange fluctuations on export receivables.

8. EMPLOYEE BENEFITS:

Gratuity and Leave encashment are accounted when it becomes due and payable. Contributions to Provident Fund and Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss account.

9. PROVISION AND CONTINGENT LIABILITIES:

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliaole estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of the resources is remote, no provision or disclosure is made.

10. TAXATION:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arisen during the year and reverse in subsequent periods.

11. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earning per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

12. IMPAIRMENT OF ASSETS:

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

 
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