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revaluation of fixed assets is withdrawn from Revaluation Reserve.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.