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Accounting Policies of Gujarat Themis Biosyn Ltd. Company

Mar 31, 2015

A) Basis of preparation

The Financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (GAAP) under historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014, the provision of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

b) Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the financial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon management's knowledge of current event and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

c) Revenue Recognition

i) The Company recognizes revenue from sales as when the transfer of ownership of the goods to the buyer takes place and revenue from Job work on completion of the assigned job.

ii) The revenue in respect of job work completed as at the end of the reporting period for which no bills have been raised is classified as Unbilled Revenue.

iii) Revenue is being recognised when there is reasonable certainty of ultimate realization.

iv) Income on investments is accounted for on accrual basis.

d) Fixed Assets and Depreciation A Fixed Assets

i) Fixed Assets are stated at Cost of acquisition, net of Modvat, including any cost attributable for bringing the asset to its working condition for its intended use, less accumulated depreciation. Cost of specific borrowing is capitalised and included in the cost to Fixed Assets.

ii) Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, less the cost of disposal.

iii) The carrying amount of assets are reviewed at each balance sheet date for impairment, so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous period.

B Depreciation

i) Leasehold Land is amortised over the remaining period of the lease.

ii) Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method except in case of Factory Buildings and Plant and Machinery where depreciation is provided on Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

e) Technical Know-how

Technical Know how is written off over a period of its useful life.

iii) Any income or expense on account of exchange difference between the date of transaction and settlement or translation is recognised in the statement of profit and loss as income or expense.

g) Investments

Long-term investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

h) Inventory Valuation

A Finished Goods and Work-In-Process

i) Finished Goods are stated at Cost or Market Value whichever is lower.

ii) Work-in-Process is stated at their cost or market value whichever is lower.

iii) Cost includes materials, labour, expenses directly & indirectly including depreciation attributable to production.

B Raw Materials

Raw materials are stated at their Historical Costs (Net of modvat) applying the First in First out (FIFO) or the net realisable value whichever is lower.

C Stores and Spares

Stores and spares are stated at their Historical Costs, (Net of modvat) applying the First in First out (FIFO) or the net realisable value, whichever is lower.

D Materials In Transit

Materials in Transit are valued at cost incurred to date.

i) Material Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

j) Employee Benefits

i) Defined Contribution Plan

The Company's monthly contribution towards Provident Fund, Employee's State Insurance scheme, Labour Welfare Fund and Employee's Deposit Linked Insurance are accounted for on accrual basis.

ii) Defined Benefit Plan

Liabilities on account of Gratuity and Leave Salary are accounted for on the basis of Actuarial Valuation at the end of each year.

iii) Other Short Term Employee Benefits

Other Short Term Employee Benefits are charged to revenue in the year in which the related services are rendered.

k) CENVAT CREDIT

i) CENVAT benefit availed on purchase of Fixed Assets is reduced from the carrying cost of the respective assets.

ii) CENVAT benefit availed on purchase of materials is adjusted against the Cenvat payable on sale of material.

l) Export Incentives

Export Benefits (DEPB) are accounted on accrual basis.

m) Prior Period Items

Prior Period Expense/Income is accounted under the head Prior Period Adjustment Account. Material item if any, are disclosed separately by way of a note.

n) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or productions of qualifying assets are capitalized as part of cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

o) Earning Per Share (EPS)

In accordance with the Accounting Standard -20 (AS-20) " Earning Per Share" as prescribed under section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014.

i) Basic earnings per share is computed using the weighted average number of shares outstanding during the period. The earnings considered in ascertaining the Company's earning per share comprise the net profit after tax (and includes the post tax effect of any extra ordinary items).

ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

ii) Deferred Tax Assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Statement of Profit & Loss of the respective year of change.

iii) Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

q) Provisions

Provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimate.




Mar 31, 2014

A) Basis of preparation

The Financial statements are prepared under historical cost convention, on accrual basis, in accordance with the Generally Accepted Accounting Principles in India and comply in all material aspects with the accounting standards notified under Section 211(3C) (which continues to be applicable in terms of General circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and the other relevant provisions of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the financial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon management''s knowledge of current event and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

c) Revenue Recognition

i) The Company recognizes revenue from sales as when the transfer of ownership of the goods to the buyer takes place and revenue from Job work on completion of the assigned job.

ii) The revenue in respect of job work completed as at the end of the reporting period for which no bills have been raised is classified as Unbilled Revenue.

iii) Revenue is being recognised when there is reasonable certainty of ultimate realization.

iv) Income on investments is accounted for on accrual basis.

d) Fixed Assets and Depreciation A Fixed Assets

i) Fixed Assets are stated at Cost of acquisition, net of Modvat, including any cost attributable for bringing the asset to its working condition for its intended use, less accumulated depreciation. Cost of specific borrowing is capitalised and included in the cost to Fixed Assets.

ii) Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

iii) The carrying amount of assets are reviewed at each balance sheet date for impairment, so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous period.

B Depreciation

i) Leasehold Land is amortised over the remaining period of the lease.

ii) The Company provides depreciation on Factory Buildings and Plant and Machinery on the "Straight Line Method" (SLM) at the rates specified in Schedule XIV to the Companies Act, 1956, as amended vide notification GSR No. 756 dated 16-12-93.

iii) Depreciation on all other Fixed Assets is provided on the "Written Down Value" (WDV) Method at the rates specified in Schedule XIV to the Companies Act, 1956.

e) Technical Know-how

Technical Know how is written off over a period of its useful life.

f) Foreign Currency Transactions

i) The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

ii) Monetary items denominated in foreign currency at the year end are translated at the exchange rates prevailing on the date of Balance Sheet.

iii) Any income or expense on account of exchange difference between the date of transaction and settlement or translation is recognised in the statement of profit and loss as income or expense.

g) Investments

Long-term investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

h) Inventory Valuation

A Finished Goods and Work-In-Process

i) Finished Goods are stated at Cost or Market Value whichever is lower.

ii) Work-in-Process is stated at their cost or market value whichever is lower.

iii) Cost includes materials, labour, expenses directly & indirectly including depreciation attributable to production.

B Raw Materials

Raw materials are stated at their Historical Costs (Net of modvat) applying the First in First out (FIFO) or the net realisable value whichever is lower.

C Stores and Spares

Stores and spares are stated at their Historical Costs, (Net of modvat) applying the First in First out (FIFO) or the net realisable value, whichever is lower.

v) Materials In Transit

Materials in Transit are valued at cost incurred to date.

i) Material Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

j) Employee Benefits

i) Defined Contribution Plan

The Company''s monthly contribution towards Provident Fund, Employee''s State Insurance scheme, Labour Welfare Fund and Employee''s Deposit Linked Insurance are accounted for on accrual basis.

ii) Defined Benefit Plan

Liabilities on account of Gratuity and Leave Salary are accounted for on the basis of Actuarial Valuation at the end of each year.

iii) Other Short Term Employee Benefits

Other Short Term Employee Benefits are charged to revenue in the year in which the related services are rendered.

k) CENVAT CREDIT

i) CENVAT benefit availed on purchase of Fixed Assets is reduced from the carrying cost of the respective assets.

ii) CENVAT benefit availed on purchase of materials is adjusted against the Cenvat payable on sale of material.

l) Export Incentives

Export Benefits (DEPB) are accounted on accrual basis.

m) Prior Period Items

Prior Period Expense/Income is accounted under the head Prior Period Adjustment Account. Material item if any, are disclosed separately by way of a note.

n) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or productions of qualifying assets are capitalized as part of cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

o) Earning Per Share (EPS)

In accordance with the Accounting Standard -20 (AS-20) " Earning Per Share" notified under the Companies (Accounting Standards) Rules, 2006,

i) Basic earnings per share is computed using the weighted average number of shares outstanding during the period. The earnings considered in ascertaining the Company''s earning per share comprise the net profit after tax (and includes the post tax effect of any extra ordinary items).

ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

ii) Deferred Tax Assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Statement of Profit & Loss of the respective year of change.

iii) Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

q) Provisions

Provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimate.


Mar 31, 2013

A) Basis of preparation

The Financial statements are prepared under historical cost convention, on accrual basis, in accordance with the Generally Accepted Accounting Principles in India and comply with Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the provisions of the Companies Act, 1956, (the ''Act'') to the extent applicable.

b) Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the financial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon management''s knowledge of current event and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

c) Revenue Recognition

i) The Company recognizes revenue from sales as when the transfer of ownership of the goods to the buyer takes place and revenue from Job work on completion of the assigned job.

ii) The revenue in respect of job work completed as at the end of the reporting period for which no bills have been raised is classified as Unbilled Revenue.

iii) Revenue is being recognised when there is reasonable certainty of ultimate realization.

iv) Income on investments is accounted for on accrual basis.

d) Fixed Assets and Depreciation

A Fixed Assets

i) Fixed Assets are stated at Cost of acquisition, net of Modvat, including any cost attributable for bringing the asset to its working condition for its intended use, less accumulated depreciation. Cost of specific borrowing is capitalised and included in the cost to Fixed Assets.

ii) Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling pripe and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

iii) The carrying amount of assets are reviewed at each balance sheet date for impairment, so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous period.

B Depreciation

i) Leasehold Land is amortised over the remaining period of the lease.

ii) The Company provides depreciation on Factory Buildings and Plant and Machinery on the "Straight Line Method" (SLM) at the rates specified in Schedule XIV to the Companies Act, 1956, as amended vide notification GSR No. 756 dated 16-12-93.

iii) Depreciation on all other Fixed Assets is provided on the "Written Down Value" (WDV) Method at the rates specified in Schedule XIV to the Companies Act, 1956.

e) Technical Know-how

Technical Know how is written off over a period of its useful life.

f) Foreign Currency Transactions

i) The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

ii) Current Assets and Current Liabilities in Foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

iii) The resulting Exchange Difference, if any, is charged to the Statement of Profit & Loss.

g) Investments

Long-term investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

h) Inventory Valuation

A Finished Goods and Work-In-Process

i) Finished Goods are stated at Cost or Market Value whichever is lower.

ii) Work-in-Process is stated at their cost or market value whichever is lower.

iii) Cost includes materials, labour, expenses directly & indirectly including depreciation attributable to production.

B Raw Materials

Raw materials are stated at their Historical Costs (Net of modvat) applying the First in First out (FIFO) or the net realisable value whichever is lower.

C Stores and Spares

Stores and spares are stated at their Historical Costs, (Net of modvat) applying the First in First out (FIFO) or the net realisable value, whichever is lower.

v) Materials In Transit

Materials in Transit are valued at cost incurred to date.

i) Material Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

j) Employee Benefits

i) Defined Contribution Plan

The Company''s monthly contribution towards Provident Fund, Employee''s State Insurance scheme, Labour Welfare Fund and Employee''s Deposit Linked Insurance are accounted for on accrual basis.

ii) Defined Benefit Plan

Liabilities on account of Gratuity and Leave Salary are accounted for on the basis of Actuarial Valuation at the end of each year.

iii) Other Short Term Employee Benefits

Other Short Term Employee Benefits are charged to revenue in the year in which the related services are rendered.

k) CENVAT CREDIT

i) CENVAT benefit availed on purchase of Fixed Assets is reduced from the carrying cost of the respective assets.

ii) CENVAT benefit availed on purchase of materials is adjusted against the Cenvat payable on sale of material. I) Export Incentives

Export Benefits (DEPB) are accounted on accrual basis.

m) Prior Period Items

Prior Period Expense/Income is accounted under the head Prior Period Adjustment Account. Material item if any, are disclosed separately by way of a note.

n) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or productions of qualifying assets are capitalized as part of cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

o) Earning Per Share (EPS)

In accordance with the Accounting Standard -20 (AS-20) "Earning Per Share" notified under the Companies (Accounting Standards) Rules, 2006,

i) Basic earnings per share is computed using the weighted average number of shares outstanding during the period. The earnings considered in ascertaining the Company''s earning per share comprise the net profit after tax (and includes the post tax effect of any extra ordinary items).

ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

ii) Deferred Tax Assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Statement of Profit & Loss of the respective year of change.

iii) Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

q) Provisions

Provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimate.


Mar 31, 2012

A) Basis of preparation

The Financial statements are prepared under historical cost convention, on accrual basis, in accordance with the Generally Accepted Accounting Principles in India and comply with Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the provisions of the Companies Act, 1956, (the 'Act') to the extent applicable.

b) Use of estimates

The preparation of fnancial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the fnancial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon management's knowledge of current event and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

c) Revenue Recognition

i) The Company recognizes revenue from sales as when the transfer of ownership of the goods to the buyer takes place and revenue from Job work on completion of the assigned job.

ii) The revenue in respect of job work completed as at the end of the reporting period for which no bills have been raised is classifed as Unbilled Revenue.

iii) Revenue is being recognised when there is reasonable certainty of ultimate realization.

iv) Income on investments is accounted for on accrual basis.

d) Fixed Assets and Depreciation

A Fixed Assets

i) Fixed Assets are stated at Cost of acquisition, net of Modvat, including any cost attributable for bringing the asset to its working condition for its intended use, less accumulated depreciation. Cost of specifc borrowing is capitalised and included in the cost to Fixed Assets.

ii) Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash fows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, less the cost of disposal.

iii) The carrying amount of assets are reviewed at each balance sheet date for impairment, so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous period.

B Depreciation

i) Leasehold Land is amortised over the remaining period of the lease.

ii) The Company provides depreciation on Factory Buildings and Plant and Machinery on the "Straight Line Method" (SLM) at the rates specifed in Schedule XIV to the Companies Act, 1956, as amended vide notifcation GSR No. 756 dated 16-12-93.

iii) Depreciation on all other Fixed Assets is provided on the "Written Down Value" (WDV) Method at the rates specifed in Schedule XIV to the Companies Act, 1956.

e) Technical Know-how

Technical Know how is written off over a period of its useful life.

f) Foreign Currency Transactions

i) The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

ii) Current Assets and Current Liabilities in Foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

iii) The resulting Exchange Difference, if any, is charged to the Proft & Loss Account.

g) Investments

Long-term investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

h) Inventory Valuation

A Finished Goods and Work-In-Process

i) Finished Goods are stated at Cost or Market Value whichever is lower.

ii) Work-in-Process is stated at their cost or market value whichever is lower.

iii) Cost includes materials, labour, expenses directly & indirectly including depreciation attributable to production.

B Raw Materials

Raw materials are stated at their Historical Costs (Net of modvat) applying the First in First out (FIFO) or the net realisable value whichever is lower.

C Stores and Spares

Stores and spares are stated at their Historical Costs, (Net of modvat) applying the First in First out (FIFO) or the net realisable value, whichever is lower.

D Materials In Transit

Materials in Transit are valued at cost incurred to date.

i) Material Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts.

j) Employee Benefts

i) Defned Contribution Plan

The Company's monthly contribution towards Provident Fund, Employee's State Insurance scheme, Labour Welfare Fund and Employee's Deposit Linked Insurance are accounted for on accrual basis.

ii) Defned Beneft Plan

Liabilities on account of Gratuity and Leave Salary are accounted for on the basis of Actuarial Valuation at the end of each year.

iii) Other Short Term Employee Benefts

Other Short Term Employee Benefts are charged to revenue in the year in which the related services are rendered.

k) CENVAT CREDIT

i) CENVAT beneft availed on purchase of Fixed Assets is reduced from the carrying cost of the respective assets.

ii) CENVAT beneft availed on purchase of materials is adjusted against the Cenvat payable on sale of material.

l) Export Incentives

Export Benefts (DEPB) are accounted on accrual basis.

m) Prior Period Items

Prior Period Expense/Income is accounted under the head Prior Period Adjustment Account. Material item if any, are disclosed separately by way of a note.

n) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or productions of qualifying assets are capitalized as part of cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

o) Earning Per Share (EPS)

In accordance with the Accounting Standard -20 (AS-20) " Earning Per Share" notifed under the Companies (Accounting Standards) Rules, 2006,

i) Basic earnings per share is computed using the weighted average number of shares outstanding during the period. The earnings considered in ascertaining the Company's earning per share comprise the net proft after tax (and includes the post tax effect of any extra ordinary items).

ii) For the purpose of calculating diluted earnings per share, the net proft or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

ii) Deferred Tax Assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Proft & Loss account of the respective year of change.

iii) Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainly that suffcient future taxable income will be available against which such deferred tax assets can be realized.

q) Provisions

Provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outfow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to refect the current management estimate.


Mar 31, 2010

A. SYSTEM OF ACCOUNTING

The Company follows the mercantile system of accounting and generally recognizes income and expenditure on an accrual basis except those with significant uncertainties.

B. FIXED ASSETS AND DEPRECIATION

FIXED ASSETS

i. Fixed Assets are stated at Cost of acquisition, net of Modvat, including any cost attributable for bringing the asset to its working condition for its intended use, less accumulated depreciation. Cost of specific borrowing is capitalised and included in the cost to Fixed Assets.

ii. Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arms length transaction between knowledgeable, willing parties, less the cost of disposal.

iii. The carrying amount of assets are reviewed at each balance sheet date for impairment, so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous period.

DEPRECIATION

i. Leasehold Land is amortised over the remaining period of the lease.

ii. The Company provides depreciation on Factory Buildings and Plant and Machinery on the "Straight Line Method" (SLM) at the rates specified in Schedule XIV to the Companies Act, 1956, as amended vide notification GSR No. 756 dated 16-12-93.

iii. Depreciation on all other Fixed Assets is provided on the "Written Down Value" (WDV) Method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. TECHNICAL KNOW-HOW

Technical Know how is written off over a period of its useful life.

D. FOREIGN CURRENCY TRANSACTIONS

i. The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

ii. Current Assets and Current Liabilities in Foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

iii. The resulting Exchange Difference, if any, is charged to the Profit & Loss Account.

E. INVESTMENT

Long-term investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

F. INVENTORY VALUATION

I. FINISHED GOODS AND WORK-IN-PROCESS

i. Finished Goods are stated at Cost or Market Value whichever is lower.

ii. Work-in-Process is stated at their cost or market value whichever is lower.

iii. Cost includes materials, labour, expenses directly & indirectly including depreciation attributable to production.

II. RAW MATERIALS

Raw materials are stated at their Historical Costs (Net of modvat) applying the First in First out (FIFO) or the net realisable value whichever is lower.

III. STORES AND SPARES

Stores and spares are stated at their Historical Costs, (Net of modvat) applying the First in First out (FIFO) or the net realisable value, whichever is lower.

IV. MATERIALS IN TRANSIT

Materials in Transit are valued at cost incurred to date.

G. REVENUE RECOGNITION

The Company recognizes revenue from sales as when the transfer of ownership of the goods to the buyer takes place and revenue from Job work on completion of the assigned job.

The revenue in respect of job work completed as at the end of the reporting period for which no bills have been raised is classified as Unbilled Revenue.

H. EMPLOYEE BENEFITS

I DEFINED CONTRIBUTION PLAN

The Companys monthly contribution towards Provident Fund, Employees State Insurance scheme, Labour Welfare Fund and Employees Deposit Linked Insurance are accounted for on accrual basis

II DEFINED BENEFIT PLAN

Liabilities on account of Gratuity and Leave Salary are accounted for on the basis of Actuarial Valuation at the end of each year

III Other Short Term Employee Benefits are charged to revenue in the year in which the related services are rendered.

I. CENVAT

I. CENVAT benefit availed on purchase of Fixed Assets is reduced from the carrying cost of the respective assets.

II. CENVAT benefit availed on purchase of materials is adjusted against the Cenvat payable on sale of material.

J. EXPORT INCENTIVES

Export Benefits (DEPB) are accounted on accrual basis.

K. PRIOR PERIOD ITEMS

Prior Period Expense/Income is accounted under the head Prior Period Adjustment Account. Material item if any, are disclosed separately by way of a note.

L BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction or productions of qualifying assets are capitalized as part of cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

M. EARNING PER SHARE

In accordance with the Accounting Standard -20 (AS-20) " Earning Per Share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the period. The earnings considered in ascertaining the Companys earning per share comprise the net profit after tax (and includes the post tax effect of any extra ordinary items).

N. TAXES ON INCOME

(i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(ii) Deferred Tax Assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss account of the respective year of change.

(iii) Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

 
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