Mar 31, 2016
Note 1: Significant Accounting Policies.
1.1 System of Accounting:
These financial statements have been prepared to comply with the Generally Accepted Accounting Principal (Indian GAAP), including the Accounting Standard notified under the relevant provision of the Companies Act, 2013.
The financial statements have been prepared under historical cost basis adjusted by revaluation of certain fixed assets and on the accounting principles of a going concern.
The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.
1.2 Use of Estimates:
The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.
Difference between the actual and the estimates are recognized in the period in which the results are known / materialized.
1.3 Fixed Assets:
Tangible Assets
Fixed Assets are stated at cost of acquisition inclusive of incidental expenses related to acquisition but net of CENVAT and includes amounts added on revaluation, less accumulated depreciation.
In respect of Major projects involving constructions, related pre-operational expenses form part of the assets capitalized. Book value of fixed assets, which appreciate significantly, are reviewed from time to time and revalued to relate them more closely to current replacement value.
Project under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and impairment loss, if any. The cost comprises purchase price and any cost directly attributable to bringing the assets to its working condition for the intended use.
1.4 Impairment:
The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
1.5 Borrowing costs:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.
1.6 Leases:
Assets leased under operating leases are shown as fixed assets. Rental income is recognized on accrual basis over the lease term.
Lease rentals in respect of assets acquired under leases are charged to Profit and Loss Account.
1.7 Depreciation:
Tangible Assets
Depreciation on Fixed assets other than leasehold land has been provided on straight line method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
Depreciation on increased value of fixed assets due to revaluation is computed on the basis of the remaining useful life as estimated by the Value on straight-line method and adjusted to Revaluation Reserve Account. Premium on leasehold land is amortized over the duration of lease and proportionate amount of premium written off is being charged to Statement of profit and loss.
Intangible Assets
These are amortized over a period of 3 years.
1.8 Investments:
Long term Investments are stated at cost. Provision for diminution in the value is made only if such a decline is other than temporary in the opinion of the management.
1.9 Inventories:
Inventories are valued at lower of cost and net realizable value. Cost is computed on the first-in-first-out basis and net of Canvas, wherever applicable. Finished goods and work in process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition and excise duty paid/payable on such goods.
1.10 Export Benefits
Consumption of raw material is arrived at after adjusting the difference between the cost of indigenous / duty paid imported raw materials and international cost of raw materials entitled to be imported / imported under Duty Exemption Scheme of the Government of India against direct/indirect exports made/to be made by the company during the year. Export Incentive under Duty Entitlement Scheme and Duty Free Entitlement Certificate under EXIM Policy are accounted for in the year of export. Profit /Loss on sale of DEPB/Import License is accounted for in the year of such sale .
1.11 Sales:
Sale of goods is recognized on dispatch to customers. Sales are inclusive of Excise Duty and net of Sales-Tax. 1.12Foreign Exchange Transactions:
a) Transactions in foreign currencies are accounted for at prevailing exchange rates. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment/realization in the Statement of profit and loss. The Current Assets and Current liabilities related to foreign currency transactions, other than those covered by forward contracts, remaining unsettled at the end of the year are adjusted at the rates prevailing at the year end, except for Pre-Shipment Credits in Foreign Currencies (PCFCs) which have been stated at the amounts received on the date of disbursement, since the PCFCs are liquidated against future export proceeds, at the rate of exchange at which the loans were disbursed.
b) Monetary items denominated in foreign currencies at the yearend are restated at year end rates. In case of items which are covered by forward contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contract is recognized over the life of the contract. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.
1.13Employee Benefits:
a) Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of profit and loss of the year in which the related service is rendered.
b) Post employment and other long term employee benefits are recognized as an expense in the Statement of profit and loss for the year in which the employee has rendered services. The expenses are recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to the profit and loss account.
1.14Deferred tax:
Deferred tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversible in one or more subsequent years.
Deferred tax assets in respect of unabsorbed depreciation and carry forward of business losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to absorb such losses.
1.15Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the company.
1.16Derivatives:
The Company uses foreign exchange forward contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward contracts reduces the risk or cost to the company and the company does not use the foreign exchange contracts for trading or speculation purposes. The company records the gain or loss on effective hedges in the profit and loss account of that period.
Mar 31, 2015
1.1 System of Accounting:
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principal (Indian GAAP), including the
Accounting Standard notified under the relevant provision of the
Companies Act, 2013.
The financial statements have been prepared under historical cost basis
adjusted by revaluation of certain fixed assets and on the accounting
principles of a going concern.
The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual basis.
1.2 Use of Estimates:
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual and the estimates are recognized in the period in which
the results are known / materialized.
1.3 Fixed Assets: Tangible Assets
Fixed Assets are stated at cost of acquisition inclusive of incidental
expenses related to acquisition but net of CENVAT and includes amounts
added on revaluation, less accumulated depreciation.
In respect of Major projects involving constructions, related
pre-operational expenses form part of the assets capitalized. Book
value of fixed assets, which appreciate significantly, are reviewed
from time to time and revalued to relate them more closely to current
replacement value.
Project under which assets are not ready for their intended use are
disclosed under Capital Work-in- Progress.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/ depletion and impairment loss, if
any. The cost comprises purchase price and any cost directly
attributable to bringing the assets to its working condition for the
intended use.
1.4 Impairment:
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment based on internal/external factors. An
impairment loss is recognized whenever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
1.5 Borrowing costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
1.6 Leases:
Assets leased under operating leases are shown as fixed assets. Rental
income is recognized on accrual basis over the lease term.
Lease rentals in respect of assets acquired under leases are charged
To Profit and Loss Account.
1.7 Depreciation: Tangible Assets
Depreciation on Fixed assets other than leasehold land has been
provided on straight line method based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.
Depreciation on increased value of fixed assets due to revaluation is
computed on the basis of the remaining useful life as estimated by the
Value on straight-line method and adjusted to Revaluation
Reserve Account. Premium on leasehold land is amortised over the
duration of lease and proportionate amount of premium written
off is being charged to Statement of profit and loss.
Intangible Assets
These are amortised overaperiodof3years.
1.8 Investments:
Long term Investments are stated at cost. Provision for diminution in
the value is made only if such a decline is other than temporary in the
opinion of the management.
1.9 Inventories:
Inventories are valued at lower of cost and net realisable value. Cost
is computed on the first-in-first- out basis and net of CENVAT,
wherever applicable. Finished goods and work in process include cost
of conversion and other costs incurred in bringing the inventories to
their present location and condition and excise duty paid/payable on such
goods.
1.10Export Benefits
Consumption of raw material is arrived at after adjusting the
difference between the cost of indigenous / duty paid imported raw
materials and international cost of raw materials entitled to be
imported / imported under Duty Exemption Scheme of the Government of
India against direct/indirect exports made/to be made by the company
during the year. Export Incentive under Duty Entitlement Scheme and
Duty Free Entitlement Certificate under EXIM Policy are accounted for
in the year of export. Profit /Loss on sale of DEPB/Import Licenseis
accounted for in the year of such sale.
1.11Sales:
Sale of goods is recognised on dispatch to customers. Sales are
Inclusive of Excise Duty and net of Sales-Tax.
1.12Foreign Exchange Transactions:
a) Transactions in foreign currencies are accounted for at prevailing
exchange rates. Gains and losses arising out of subsequent fluctuations
are accounted for on actual payment/realization in the Statement of
profit and loss. The Current Assets and Current liabilities related to
foreign currency transactions, other than those covered by forward
contracts, remaining unsettled at the end ofthe year are adjusted at
the rates prevailing at the year end, except for Pre-Shipment Credits
in Foreign Currencies (PCFCs) which have been stated at the amounts
received on the date of disbursement, since the PCFCs are liquidated
against future export proceeds, at the rate of exchange at which the
loans were disbursed. b) Monetary items denominated in foreign
currencies at the year end are restated at year end rates. In case of
items which are covered by forward contracts, the difference between
the year end rate and rate on the date of the contract is recognized as
exchange difference and the premium paid on forward contract is
recognized over the life of the contract. Any income or expense on
account of exchange difference either on settlement or on trans-
lation is recognized in the profit and loss account.
1.13Employee Benefits:
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of profit and loss of the year in
which the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the Statement of profit and loss for the year in which
the employee has rendered services. The expenses are recognized at the
present value of the amount payable determined using actuarial
valuation techniques. Actuarial gain and losses in respect of post
employment and other long term benefits are charged tothe profit and
loss account.
1.14Deferred tax:
Deferred tax is recognized on timing differences; being the difference
between taxable income and accounting income that originate in one
period and are capable of reversible in one or more subsequent years.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of business losses are recognized if there is virtual certainty
that there will be sufficient future taxable income available to absorb
such losses.
1.15 Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations , the amount of which can be reliably estimated .
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence of one or more uncertain future events not wholly within the
controlof the company.
1.16 Derivatives:
The Company uses foreign exchange forward contracts to hedge its
exposure to movements in foreign exchange rates. The use of these
foreign exchange forward contracts reduces the risk or cost to the
company and the company does not use the foreign exchange contracts for
trading or speculation purposes. The company records the gain or loss on
effective hedges in the profit and loss account of that period.
Mar 31, 2014
1.1 System of Accounting:
The financial statements have been prepared under historical cost basis
adjusted by revaluation of certain fixed assets and on the accounting
principles of a going concern.
The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
1.2 Use of Estimates:
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual and the estimates are recognized in the
period in which the results are known / materialized.
1.3 Fixed Assets:
Fixed Assets are stated at cost of acquisition inclusive of incidental
expenses related to acquisition but net of CENVAT and includes amounts
added on revaluation, less accumulated depreciation.
In respect of Major projects involving constructions, related
pre-operational expenses form part of the assets capitalized. Book
value of fixed assets, which appreciate significantly, are reviewed
from time to time and revalued to relate them more closely to current
replacement value.
1.4 Impairment:
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment based on internal/external factors. An
impairment loss is recognized whenever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
1.5 Borrowing costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
1.6 Leases:
Assets leased under operating leases are shown as fixed assets. Rental
income is recognized on accrual basis over the lease term.
Lease rentals in respect of assets acquired under leases are charged to
Profit and Loss Account.
1.7 Depreciation:
Depreciation on Fixed assets other than leasehold land has been
provided on straight line method at the rates and in
the manner specified in Schedule XIV to the Companies Act 1956.
Depreciation on increased value of fixed assets due to revaluation is
computed on the basis of the remaining useful life as estimated by the
Valuer on straight-line method and adjusted to Revaluation Reserve
Account.
Premium on leasehold land is amortised over the duration of lease and
proportionate amount of premium written off is being charged to
Statement of profit and loss.
1.8 Investments:
Long term Investments are stated at cost. Provision for diminution in
the value is made only if such a decline is other than temporary in the
opinion of the management.
1.9 Inventories:
Inventories are valued at lower of cost and net realisable value. Cost
is computed on the first-in-first-out basis and net of CENVAT, wherever
applicable. Finished goods and work in process include cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition and excise duty paid/payable on
such goods.
1.10 Export Benefits
Consumption of raw material is arrived at after adjusting the
difference between the cost of indigenous / duty paid imported raw
materials and international cost of raw materials entitled to be
imported / imported under Duty Exemption Scheme of the Government of
India against direct/indirect exports made/to be made by the company
during the year. Export Incentive under Duty Entitlement Scheme and
Duty Free Entitlement Certificate under EXIM Policy are accounted for
in the year of export. Profit /Loss on sale of DEPB/Import License is
accounted for in the year of such sale .
1.11 Sales:
Sale of goods is recognised on dispatch to customers. Sales are
inclusive of Excise Duty and net of Sales-Tax.
1.12 Foreign Exchange Transactions:
a) Transactions in foreign currencies are accounted for at prevailing
exchange rates. Gains and losses arising out of subsequent fluctuations
are accounted for on actual payment/realization in the Statement of
profit and loss. The Current Assets and Current liabilities related to
foreign currency transactions, other than those covered by forward
contracts, remaining unsettled at the end of the year are adjusted at
the rates prevailing at the year end, except for Pre-Shipment Credits
in Foreign Currencies (PCFCs) which have been stated at the amounts
received on the date of disbursement, since the PCFCs are liquidated
against future export proceeds, at the rate of exchange at which the
loans were disbursed.
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward contracts, the difference between the year end rate and rate on
the date of the contract is recognized as exchange difference and the
premium paid on forward contract is recognized over the life of the
contract. Any income or expense on account of exchange difference
either on settlement or on translation is recognized in the profit and
loss account.
1.13 Employee Benefits:
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of profit and loss of the year in
which the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the Statement of profit and loss for the year in which
the employee has rendered services. The expenses are recognized at the
present value of the amount payable determined using actuarial
valuation techniques. Actuarial gain and losses in respect of post
employment and other long term benefits are charged to the profit and
loss account.
1.14 Deferred tax:
Deferred tax is recognized on timing differences; being the difference
between taxable income and accounting income that originate in one
period and are capable of reversible in one or more subsequent years.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of business losses are recognized if there is virtual certainty
that there will be sufficient future taxable income available to absorb
such losses.
1.15 Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations , the amount of which can be reliably estimated .
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence of one or more uncertain future events not wholly within the
control of the company.
1.16 Derivatives:
The Company uses foreign exchange forward contracts to hedge its
exposure to movements in foreign exchange rates. The use of these
foreign exchange forward contracts reduces the risk or cost to the
company and the company does not use the foreign exchange contracts for
trading or speculation purposes. The company records the gain or loss
on effective hedges in the profit and loss account of that period.
Out of the above-
i) 5069745 Equity shares of Rs. 10/- each are issued as fully paid up to
Financial Institutions/ Bank against simple Interest dues as on 31st
March, 2003 as per restructuring package approved by CDR Cell of RBI.
ii) 459474 Equity shares of Rs. 10/- each are issued as fully paid up on
Net present value (NPV) basis on account of 1% reduction in the rate of
interest payable in future to Financial Institution/Bank, in terms of
re-workout package approved by CDR Cell of RBI.
Total 2,856.00 2,944.17
NOTES :
1) Term Loans from Banks/Financial Institutionsare secured by way of
first charge on parri-passu basis on Company''s movable and immovable
assets both present and future subject to prior charge on inventories
and Book debts in favour of Company''s Bankers.
2) Vehicles loans are secured by hypothecation of vehicles acquired out
of proceeds of the loans.
3) Term Loans from Banks and Financial Institutions as shown above are
personally guaranteed by the Managing Director.
4) Maturity profile of Secured Term Loan
Between 1-2 years 1006.00 Lacs
Between 2-3 years NIL
Between 3-4 years NIL
Beyond 4 Years NIL
5) Interest on above said term loan ranging between 7.5% to 9.00%.
25. a) In the opinion of the Company, the Current Assets,
Loans and Advances are approximately of the value stated, if realized
in the ordinary course of business and all known liabilities have been
accounted for.
b) Debit and Credit balances of Trade Receivable and Trade Payable are
subject to confirmation and Reconciliation of Accounts.
Mar 31, 2013
1.1 System of Accounting:
The financial statements have been prepared under historical cost basis
adjusted by revaluation of certain fixed assets and on the accounting
principles of a going concern. The Company generally follows
mercantile system of accounting and recognizes significant items of
income and expenditure on accrual basis.
1.2 Use of Estimates:
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual and the estimates are recognized in the
period in which the results are known / materialized.
1.3 Fixed Assets:
Fixed Assets are stated at cost of acquisition inclusive of incidental
expenses related to acquisition but net of CENVAT and includes amounts
added on revaluation, less accumulated depreciation.
In respect of Major projects involving constructions, related
pre-operational expenses form part of the assets capitalized. Book
value of fixed assets, which appreciate significantly, are reviewed
from time to time and revalued to relate them more closely to current
replacement value.
1.4 Impairment:
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment based on internal/external factors. An
impairment loss is recognized whenever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
1.5 Borrowing costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to statement of Profit & Loss.
1.6 Leases:
Assets leased under operating leases are shown as fixed assets. Rental
income is recognized on accrual basis over the lease term.
Lease rentals in respect of assets acquired under leases are charged to
statement of Profit & Loss.
1.7 Depreciation:
Depreciation on Fixed assets other than leasehold land has been
provided on straight line method at the rates and in the manner
specified in Schedule XIV to the Companies Act 1956.
Depreciation on increased value of fixed assets due to revaluation is
computed on the basis of the remaining useful life as estimated by the
Valuer on straight-line method and adjusted to Revaluation Reserve
Account. Premium on leasehold land is amortised over the duration of
lease and proportionate amount of premium written off is being charged
to Statement of profit and loss.
1.8 Investments:
Long term Investments are stated at cost. Provision for diminution in
the value is made only if such a decline is other than temporary in the
opinion of the management.
1.9 Inventories:
Inventories are valued at lower of cost and net realisable value. Cost
is computed on the first-in-first-out basis and net of CENVAT, wherever
applicable. Finished goods and work in process include cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition and excise duty paid/payable on
such goods.
1.10 Export Benefits
Consumption of raw material is arrived at after adjusting the
difference between the cost of indigenous / duty paid imported raw
materials and international cost of raw materials entitled to be
imported / imported under Duty Exemption Scheme of the Government of
India against direct/indirect exports made/to be made by the company
during the year. Export Incentive under Duty Entitlement Scheme and
Duty Free Entitlement Certificate under EXIM Policy are accounted for
in the year of export. Profit /Loss on sale of DEPB/lmport License is
accounted for in the year of such sale .
1.11 Sales:
Sale of goods is recognised on dispatch to customers. Sales are
inclusive of Excise Duty and net of Sales-Tax.
1.12 Foreign Exchange Transactions:
a) Transactions in foreign currencies are accounted for at prevailing
exchange rates. Gains and losses arising out of subsequent fluctuations
are accounted for on actual payment/realization in the Statement of
profit and loss. The Current Assets and Current liabilities related to
foreign currency transactions, other than those covered by forward
contracts, remaining unsettled at the end of the year are adjusted at
the rates prevailing at the year end, except for Pre-Shipment Credits
in Foreign Currencies (PCFCs) which have been stated at the amounts
received on the date of disbursement, since the PCFCs are liquidated
against future export proceeds, at the rate of exchange at which the
loans were disbursed.
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward contracts, the difference between the year end rate and rate on
the date of the contract is recognized as exchange difference and the
premium paid on forward contract is recognized over the life of the
contract. Any income or expense on account of exchange difference
either on settlement or on translation is recognized in the profit and
loss account.
1.13 Employee Benefits:
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of profit and loss of the year in
which the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the Statement of profit and loss for the year in which
the employee has rendered services. The expenses are recognized at the
present value of the amount payable determined using actuarial
valuation techniques. Actuarial gain and losses in respect of post
employment and other long term benefits are charged to statement of
Profit & Loss.
1.14 Deferred tax:
Deferred tax is recognized on timing differences; being the difference
between taxable income and accounting income that originate in one
period and are capable of reversible in one or more subsequent years.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of business losses are recognized if there
is virtual certainty that there will be sufficient future taxable
income available to recoup such losses.
1.15 Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations , the amount of which can be reliably estimated .
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence of one or more uncertain future events not wholly within the
control of the company.
1.16 Derivatives:
The Company uses foreign exchange forward contracts to hedge its
exposure to movements in foreign exchange rates. The use of these
foreign exchange forward contracts reduces the risk or cost to the
company and the company does not use the foreign exchange contracts for
trading or speculation purposes. The company records the gain or loss
on effective hedges in statement of Profit & Loss of that period.
Mar 31, 2012
1.1 System of Accounting:
The financial statements have been prepared under historical cost basis
adjusted by revaluation of certain fixed assets and on the accounting
principles of a going concern.
The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
1.2 Use of Estimates:
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual and the estimates are recognized in the
period in which the results are known / materialized.
1.3 Fixed Assets:
Fixed Assets are stated at cost of acquisition inclusive of incidental
expenses related to acquisition but net of CENVAT and includes amounts
added on revaluation, less accumulated depreciation.
In respect of Major projects involving constructions, related
pre-operational expenses form part of the assets capitalized. Book
value of fixed assets, which appreciate significantly, are reviewed
from time to time and revalued to relate them more closely to current
replacement value.
1.4 Impairment:
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment based on internal/external factors. An
impairment loss is recognized whenever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
1.5 Borrowing costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
1.6 Leases:
Assets leased under operating leases are shown as fixed assets. Rental
income is recognized on accrual basis over the lease term.
Lease rentals in respect of assets acquired under leases are charged to
Profit and Loss Account.
1.7 Depreciation:
Depreciation on Fixed assets other than leasehold land has been
provided on straight line method at the rates and in the manner
specified in Schedule XIV to the Companies Act 1956.
Depreciation on increased value of fixed assets due to revaluation is
computed on the basis of the remaining
useful life as estimated by the Valuer on straight-line method and
adjusted to Revaluation Reserve Account. Premium on leasehold land is
amortised over the duration of lease and proportionate amount of
premium written off is being charged to Profit & Loss Account.
1.8 Investments:
Long term Investments are stated at cost. Provision for diminution in
the value is made only if such a decline is other than temporary in the
opinion of the management.
1.9 Inventories:
Inventories are valued at lower of cost and net realisable value. Cost
is computed on the first-in-first-out basis and net of CENVAT, wherever
applicable. Finished goods and work in process include cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition and excise duty paid/payable on
such goods.
1.10 Export Benefits
Consumption of Raw material is arrived at after adjusting the
difference between the cost of indigenous / duty paid imported raw
materials and international cost of raw materials entitled to be
imported / imported under Duty Exemption Scheme of the Government of
India against direct/indirect exports made/to be made by the company
during the year. Export Incentive under Duty Entitlement Scheme and
Duty Free Entitlement Certificate under EXIM Policy are accounted for
in the year of export. Profit /Loss on sale of DEPB/lmport License is
accounted for in the year of such sale .
1.11 Sales:
Sale of goods is recognised on dispatch to customers. Sales are
inclusive of Excise Duty and net of Sales-Tax.
1.12 Foreign Exchange Transactions:
a) Transactions in foreign currencies are accounted for at prevailing
exchange rates. Gains and losses arising out of subsequent fluctuations
are accounted for on actual payment/realization in the Profit and Loss
Account. The Current Assets and Current liabilities related to foreign
currency transactions, other than those covered by forward contracts,
remaining unsettled at the end of the year are adjusted at the rates
prevailing at the year end, except for Pre- Shipment Credits in Foreign
Currencies (PCFCs) which have been stated at the amounts received on
the date of disbursement, since the PCFCs are liquidated against future
export proceeds, at the rate of exchange at which the loans were
disbursed.
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward contracts, the difference between the year end rate and rate on
the date of the contract is recognized as exchange difference and the
premium paid on forward contract is recognized over the life of the
contract. Any income or expense on account of exchange difference
either on settlement or on translation is recognized in the profit and
loss account.
1.13 Employee Benefits:
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the profit and loss account for the year in which the
employee has rendered services. The expenses are recognized at the
present value of the amount payable determined using actuarial
valuation techniques. Actuarial gain and losses in respect of post
employment and other long term benefits are charged to the profit and
loss account.
1.14 Deferred tax:
Deferred tax is recognized on timing differences; being the difference
between taxable income and accounting income that originate in one
period and are capable of reversible in one or more subsequent years.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of business losses are recognized if there is virtual certainty
that there will be sufficient future taxable income available to absorb
such losses.
1.15 Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations , the amount of which can be reliably estimated .
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence of one or more uncertain future events not wholly within the
control of the company.
1.16 Derivatives:
The Company uses foreign exchange forward contracts to hedge its
exposure to movements in foreign exchange rates. The use of these
foreign exchange forward contracts reduces the risk or cost to the
company and the company does not use the foreign exchange contracts for
trading or speculation purposes. The company records the gain or loss
on effective hedges in the profit and loss account of that period.
Mar 31, 2011
A. System of Accounting:
The financial statements have been prepared under historical cost basis
adjusted by revaluation of certain fixed assets and on the accounting
principles of a going concern.
The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
b. Use of Estimates:
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual and the estimates are recognized in the
period in which the results are known / materialized.
c. Fixed Assets:
Fixed Assets are stated at cost of acquisition inclusive of incidental
expenses related to acquisition but net of CENVAT and includes amounts
added on revaluation, less accumulated depreciation.
In respect of Major projects involving constructions, related
pre-operational expenses form part of the assets capitalized. Book
value of fixed assets, which appreciate significantly, are reviewed
from time to time and revalued to relate them more closely to current
replacement value.
d. Impairment:
The carrying amount of assets is reviewed at each balance sheet date
for any indication of impairment based on internal/ external factors.
An impairment loss is recognized whenever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount is the
greater of the assets net selling price and value in use. In assessing
value in use,
the estimated future cash flows are discounted to their present value
at the weighted average cost of capital.
e. Borrowing costs:
Borrowing costs are attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are
charged to revenue.
f. Leases:
Assets leased under operating leases are shown as fixed assets. Rental
income is recognized on accrual basis over the lease term.
Lease rentals in respect of assets acquired under leases are charged to
Profit and Loss Account.
g. Depreciation:
Depreciation on Fixed assets other than leasehold land has been
provided on straight line method at the rates and in the manner
specified in Schedule XIV to the Companies Act 1956.
Depreciation on increased value of fixed assets due to revaluation is
computed on the basis of the remaining useful life as estimated by the
Valuer on straight-line method and adjusted to Revaluation Reserve
Account.
Premium on leasehold land is amortised over the duration of lease and
proportionate amount of premium written off is being charged to Profit
& Loss Account.
h. Investments:
Long term Investments are stated at cost. Provision for diminution in
the value is made only if such a decline is other than temporary in the
opinion of the management.
i. Inventories:
Inventories are valued at lower of cost and net realisable value. Cost
is computed on the first-in-first-out basis and
net of CENVAT, wherever applicable. Finished goods and work in process
include cost of conversion and other costs incurred in bringing the
inventories to their present location and condition and excise duty
paid/payable on such goods.
j. Export Benefits
Consumption of Raw material is arrived at after adjusting the
difference between the cost of indigenous / duty paid imported raw
materials and international cost of raw materials entitled to be
imported / imported under Duty Exemption Scheme of the Government of
India against direct/indirect exports made/to be made by the company
during the year. Export Incentive under Duty Entitlement Scheme and
Duty Free Entitlement Certificate under EXIM Policy are accounted for
in the year of export. Profit /Loss on sale of DEPB/lmport License is
accounted for in the year of such sale .
k. Sales:
Sale of goods is recognised on dispatch to customers. Sales are
inclusive of Excise Duty and net of Sales-Tax.
I. Foreign Exchange Transactions:
a) Transactions in foreign currencies are accounted for at prevailing
exchange rates. Gains and losses arising out of subsequent fluctuations
are accounted for on actual payment/realization in the Profit and Loss
Account. The Current Assets and Current liabilities related to foreign
currency transactions, other than those covered by forward contracts,
remaining unsettled at the end of the year are adjusted at the rates
prevailing at the year end, except for Pre-Shipment Credits in Foreign
Currencies (PCFCs) which have been stated at the amounts received on
the date of disbursement, since the PCFCs are liquidated against future
export proceeds, at the rate of exchange at which the loans were
disbursed.
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward contracts, the difference between the year end rate and rate on
the date of the contract is recognized as exchange difference and the
premium paid on forward contract is recognized over the life of the
contract. Any income or expense on account of exchange difference
either on settlement or on translation is recognized in the profit and
loss account.
m. Employee Benefits:
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the profit and loss account for the year in which the
employee has rendered services. The expenses are recognized at the
present value of the amount payable . determined using actuarial
valuation techniques. Actuarial gain and losses in respect of post
employment and other long term benefits are charged to the profit and
loss account.
n. Deferred tax:
Deferred tax is recognized on timing differences; being the difference
between taxable income and accounting income that originate in one
period and are capable of reversible in one or more subsequent years.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of business losses are recognized if there is virtual certainty
that there will be sufficient future taxable income available to absorb
such losses.
0. Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations , the amount of which can be reliably estimated .
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence of one or more uncertain future events not wholly within the
control of the company.
p. Derivatives:
The Company uses foreign exchange forward contracts to hedge its
exposure to movements in foreign exchange rates. The use of these
foreign exchange forward contracts reduces the risk or cost to the
company and the company does not use the foreign exchange contracts for
trading or speculation purposes. The company records the gain or loss
on effective hedges in the profit and loss account of that period.
Mar 31, 2010
A. Export Benefits
Consumption of Raw material is arrived at after adjusting the
difference between the cost of indigenous / duty paid imported raw
materials and international cost of raw materials entitled to be
imported / imported under Duty Exemption Scheme of the Government of
India against direct/indirect exports made/to be made by the company
during the year. Export Incentive under Duty Entitlement Pass Book
Scheme and Duty Free Entitlement Certificate under EXIM Policy are
accounted for in the year of export Profit /Loss on sale of DEPB/lmport
License is accounted for in the year of such sale .
B. Sales:
Sale of goods is recognised on dispatch to customers. Sales are
inclusive of Excise Duty and net of Sales-Tax.
C. Foreign Exchange Transactions:
a) Transactions in foreign currencies are accounted for at prevailing
exchange rates. Gains and losses arising out of subsequent fluctuations
are accounted for on actual payment/realization in the Profit and Loss
Account. The Current Assets and Current liabilities related to foreign
currency transactions, other than those covered by forward contracts,
remaining unsettled at the end of the year are adjusted at the rates
prevailing at the year end, except for Pre-Shipment Credits in Foreign
Currencies ( PCFCs ) which have been stated at the amounts received on
the date of disbursement, since the PCFCs are liquidated against future
export proceeds, at the rate of exchange at which the loans were
disbursed.
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward contracts, the difference between the year end rate and rate on
the date of the contract is recognized as exchange difference and the
premium paid on forward contract is recognized over the life of the
contract. Any income or expense on account of exchange difference
either on settlement or on translation is recognized in the profit and
loss account.
D. Employee Benefits:
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the profit and loss account for the year in which the
employee has rendered services. The expenses is recognized at the
present value of the amount payable determined using actuarial
valuation techniques. Actuarial gain and losses in respect of post
employment and other long term benefits are charged to the profit and
loss account.
E. Deferred tax:
Deferred tax is recognized on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversible in one or more subsequent years.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of business losses are recognized if there is virtual certainty
that there will be sufficient future taxable income available to absorb
such losses.
F. Provisions and Contingent Liabilities:
Provisions are recognized in the accounts in respect of present
probable obligations , the amount of which can be reliably estimated .
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence of one or more uncertain future events not wholly within the
control of the company.
G. Derivatives:
The Company uses foreign exchange forward contracts to hedge its
exposure to movements in foreign exchange rates. The use of these
foreign exchange forward contracts reduces the risk or cost to the
company and the company does not use the foreign exchange contracts for
trading or speculation purposes. The company records the gain or loss
on effective hedges in the profit and loss account of that period.