Mar 31, 2015
I) Accounting Convention
The financial statements are prepared under the historical cost
convention in accordance with the Accounting Standards referred to in
Sub-section (3C) of Section 211 of the Companies Act 1956 and the
relevant presentational requirements of the Companies Act, 1956.
ii) Fixed Assets
Fixed assets are stated at cost (net of CENVAT) less accumulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses.
iii) Depreciation / Amortization
Depreciation on fixed assets provided as per the life of the asset,
provided in schedule-ll of the Company Act, 2013 (as notified on 26th
of March, 2014 and is made applicable from 1st of April 2014 by the
ministry of corporate affairs). In case of assets whose useful life
have ended as on 31st March, 2015, the carrying values as at 1st April,
2014 (after adjusting the 5% of Original cost as Scrap value) have been
adjusted to the opening reserves as on 1st March, 2014 pursuant to the
provisions of the schedule-ll of the Companies Act, 2013.
iv) Inventories
(a) Raw materials have been valued at cost on FIFO method.
(b) Stores & Spares and Packing material have been valued at cost on
FIFO method.
(c) Work in Process has been valued at Raw material cost plus
proportionate conversion cost.
(d) Finished Goods lying at factory have been valued at Raw material
cost plus conversion.
(e) Cost including Excise duty payable.
v) Transactions in Foreign Currency
Foreign Currency transactions are recorded at the exchange rate
prevailing at the date of transaction. The exchange fluctuation arising
is shown as "Foreign Exchange Fluctuation Gain / (Loss)".
Notes
employee Benefits
vi) The Company has various schemes of retirement benefits such as
provident fund, gratuity and leave encashment, which is dealt with as
under:-
(a) The Company has taken Group Gratuity Policy from LIC and the fund
value as on 31.03.2015 was Rs. 8569.59 Thousand.
(b) The provision for Leave Encashment has been taken on the basis of
actuarial valuation. As per the actuarial valuation report the
provision for leave encashment has been determined as Rs. 542.53
Thousand as on 31st March, 2015.
(c) Contribution to Provident Fund are made in accordance with the
provisions of Employee Provident Fund and Misc. Provisions Act, 1952
and charged to revenue every year and this is in conformity as per the
requirement of AS 15.
vii) Cenvat
The balance in the Service Tax and CENVAT account is shown under the
note " Short Term Loans and Advances".
viii) Revenue Recognition
(a) Revenue is recognised upon the sale of goods i.e. It is recognised
at the time of transfer of significant risks and rewards of ownership
to the buyer.
(b) Interest from bank is recognised on accrual basis.
ix) Recognition of Expenses
Expenses are recognised on accrual basis and provisions are made for
all known losses and liabilities.
x) Accounting for Taxes on Income
Provision for taxation for the year is ascertained on the basis of
assessable profits computed in accordance with the provisions of the
Income Tax Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the difference between the taxable income
and the accounting income that originates in one period and are capable
of reversal in one or more subsequent periods. In respect of carry
forward of losses and unabsorbed depreciation, deferred tax assets are
recognised based on virtual certainty that sufficient future taxable
income will be available against which such deferred tax asset can be
realized.
xi) Provision involving substantial degree of estimate in measurement
are recognised when there is a present obligation as result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
notes to the financial statements.
Mar 31, 2014
I) Accounting Convention
The financial statements are prepared under the historical cost
convention in accordance with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act 1956 and relevant
presentational requirements of the Companies Act, 1956.
ii) Fixed Assets
Fixed assets are stated at cost (net of CENVAT) less accumulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses.
iii) Depreciation / Amortization
Depreciation on fixed assets is provided on straight line method as per
schedule XIV of the Companies Act 1956 (as revised by the amending
notification vide Circular No. 14/93 dated 20.12.93 issued by
Department of Company Affairs, Ministry of Law, Justice & Company
Affairs). Depreciation is charged on a pro-rata basis for assets
purchased / sold during the year.
iv) Inventories
* Raw materials have been valued at cost on FIFO Method.
* Stores & Spares and Packing Material have been valued at cost on FIFO
Method.
* Work in process has been valued at raw material cost plus
proportionate of conversion cost.
* Finished goods lying at factory have been valued at raw material cost
plus conversion.
* Cost including excise duty payable.
v) Transactions in Foreign Currency
Foreign currency transactions are recorded at the exchange rate
prevailing as at the date of transactions. The exchange fluctuation
arising are shown as "Foreign Exchange Fluctuation" Gains/(Loss).
vi) Employee Benefits
The Company has various schemes of retirement benefits such as
provident fund, gratuity and leave encashment, which is dealt with as
under:
* The Company has taken Group Gratuity Policy from LIC and the fund
Value as on 31.03.2014 was Rs. 66,51,386/-.
* The provision for Leave Encashment is on actuarial valuation basis.
As per the actuarial valuation report the provision for leave
encashment has been determined as Rs. 6,62,435/- as on 31.03.2014 and
provision of Rs. 4,67,811 has been made during the year to match the
actuarial valuation liability of Rs. 6,62,435/-.
* Contribution to Provident Fund are made in accordance with the
provisions of Employees'' Provident Fund and misc. provisions act, 1952
and charged to revenue every year, and this is conformity as per the
requirements of AS 15.
vii) Cenvat
The balance in the Service Tax and Cenvat account is shown under note
"Short Term Loans and Advances."
viii) Revenue Recognition
* Revenue is recognised upon the sale of goods i.e. it is recognised at
the time of transfer of significant risks and rewards of ownership to
the buyer.
* Interest from bank is recognized on accrual basis.
ix) Recognition of Expenses
Expenses are accounted for on accrual basis and provisions are made for
all known losses and liabilities.
x) Accounting for Taxes on Income
Provision for taxation for the year is ascertained on the basis of
assessable profits computed in accordance with the provisions of the
Income Tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originates in one period and are capable of
reversal in one or more subsequent periods. In respect of carry forward
of losses and unabsorbed depreciation, deferred tax assets are
recognized based on virtual certainty that sufficient future taxable
income will be available against which such deferred tax asset can be
realized.
xi) Provision involving substantial degree of estimate in measurement
are recognized when there is a present obligation as result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2010
(i) Basis of preparation
The accompanying financial statements are prepared on the accrual basis
of accounting, under the historical cost convention, in accordance with
the Generally Accepted Accounting Principles ("GAAP") in India,
accounting standards issued by the Institute of Chartered Accountants
of India and the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
(ii) Use of estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Examples of such estimates include future obligations under employee
benefit plans, inventory and estimated useful life of fixed assets. Any
changes in estimates are adjusted prospectively in the future periods.
Actual results could differ from these estimates.
(iii) Revenue recognition
Revenue is recognised upon the sale of goods i.e. it is recognised at
the time of transfer of significant risks and rewards of ownership to
the buyer.
(iv) Expenditure
Expenses are accounted for on accrual basis and provisions are made for
all known losses and liabilities.
(v) Retirements benefits
i) Contribution to Provident and Family Pension Funds are funded as a
percentage of salary/wages. ii) Gratuity liability is funded as per
group gratuity scheme of Life Insurance Corporation of India. iii)
Leave encashment liability is provided on estimated basis.
(vi) Earnings per share
Basic earnings per share are computed using the weighted average number
of the equity shares outstanding during the period. Diluted earning
per share is computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year end.
except where the results would be anti- dilutive. There are no
potentially dilutive equity shares outstanding as on 31st March, 2010.
(vii) Fixed assets
Fixed assets are stated at the cost of acquisition including incidental
costs related to acquisition and installation. Cenvat Credit available
is deducted from the cost of Fixed Assets.
(viii) Depreciation
Depreciation on fixed assets is provided on straight line method as per
schedule XIV of the Companies Act 1956 (as revised by the amending
notification vide Circular no. 14/93 dated 20.12.93 issued by
Department of Company Affairs, Ministry of Law, Justice & Company
Affairs). Depreciation is charged on a pro-rata basis for assets
purchased / sold during the year.
(ix) Inventories
Raw material, packing material, stock in process, stores and spares are
valued at actual cost excluding CENVAT where available. Finished goods
are valued at cost inclusive of excise duty or net realisable value
whichever is lower. The claims for CENVAT are provided on actual
receipt basis.
(x) Taxation
According to the Accounting Standard 22 on Accounting of Taxes on
Income, differences that result between the taxable profit and the
profit as per the financial statements are identified and thereafter
deferred tax asset / liability is recorded as timing difference; namely
the difference that originate in one accounting period and reverse in
another, based on the tax effect of the aggregate amount being
considered. The tax effect is calculated on accumulated timing
differences at the end of an accounting period based on tax rates that
have been enacted or substantially enacted by the Balance Sheet date.
Deferred tax asset is reviewed at each Balance Sheet date and written
down or written up to reflect the amount that is reasonably/ virtually
certain (as the case may be) to be realised.
(xi) Contingencies
Loss contingencies arising from claims, litigation, assessment, fines,
penalties, etc. are recorded when it is probable that a liability has
been incurred, and the amount can be reasonably estimated.
(xii) Interest
Interest to be received on securities shall be accounted for as and
when received.