Mar 31, 2015
A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except for tangible assets which are
being carried at revalued amounts, pursuant to section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
2014, till the standards of accounting or any addendum thereto are
prescribed by the Central Government in consultation and recommendation
of the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently, these financial statements have been prepared to
comply in all the material aspects with the accounting standards
notified under Section 211 (3C) of the Companies Act, 1956 (Companies
(Accounting Standards) Rules, 2006, as amended) and other relevant
provisions of the Companies Act, 2013.
b) USE OF ESTIMATES:
The preparation of the financial statements in conformity with the
Indian GAAP requires the management to make judgements, estimates and
assumptions that affect the reported amount of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities, at
the end of reporting period. Although these estimates are based on
management's best knowledge of current events and actions,
uncertainty about these assumption's and estimates could result in
the outcomes requiring a material adjustment to the carrying amount of
assets or liabilities in future periods.
Management believes that the estimates used in the presentation of the
financial statements are prudent and reasonable. Actual result could
differ from these estimates.
c) FIXEDASSETS:
i) Tangible Assets are stated at cost. The cost comprises price,
borrowing cost if capitalization criteria are met and directly
attributable cost of bringing the assets to its working condition for
the intended use. Any trade discounts and rebates are deducted in
arriving the purchase price.
Cost of fixed assets not ready to use before Balance Sheet date are
disclosed under Capital Work in Progress.
ii) Capital work in progress is stated at cost plus directly
attributable costs.
iii) Intangible Assets are stated at acquisition cost net of
accumulated amortization.
d) IMPAIRMENT OF TANGIBLE ASSETS:
The Company identifies impairable assets at the year end in accordance
with guiding principles of Accounting Standard - 28 issued by the
Institute of Chartered Accountants of India, for the purpose of
arriving at impairment loss thereon, being the difference in the book
value and recoverable value of the relevant assets. Impairment loss,
when crystallizes, are charged against revenues for the year.
e) INVENTORIES:
Raw Materials and Stores & Spares are valued at cost or net realizable
value whichever is lower. Cost of Inventories is net of CENVAT claim
wherever applicable and is ascertained on FIFO basis.
Finished Goods produced are valued at cost or net realizable value
whichever is lower.
Work in progress is valued at cost. Finished Goods and work in progress
includes cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Packing Materials are valued at cost.
Wastes are valued at net realizable value. '
f) DEPRECIATION:
Pursuant to the Companies Act, 2013 the Company has reassessed the
useful life of all tangible fixed assets based on the independent
technical evaluation by the approved Chartered Engineer.
The residual value of all assets for depreciation purpose is considered
as 5% of the original cost of the assets.
Depreciation on the assets added / disposed of during the year is
provided on pro-rata basis with reference to the month of addition /
disposal.
Value of land acquired on lease is amortised on the basis of the
balance life of the project. Value of leasehold land is amortised on
the basis of lease period or balance life of the project whichever is
earlier.
g) EMPLOYEE BENEFITS.
(i) Post Employment Benefit Plans Defined Contribution Plan:
Contribution as per the Employees' Provident Funds and Miscellaneous
Provisions Act, 1952 towards Provident Fund and Family Pension Fund are
provided for and payments in respect thereof are made to the relevant
authorities on actual basis.
SIGNIFICANT ACCOUNTING POLICIES - Continued Defined Benefit Plan:
Liability in respect of Employees' Group Gratuity Cash Accumulation
Cum-Life Assurance Scheme is funded by way of contribution t Life
Insurance Corporation of India.
(ii) Other Benefits
Provision has been made in respect of leave standing to the credit of
the employees on the basis of actuarial valuation method,
h) TAXES ON INCOME:
Tax Expense comprises of current and deferred tax. Current Income Tax
is measured at the amount expected to be paid to the ta: authorities in
accordance with the Indian Income Tax Act. Deferred income tax reflects
the impact of current year timing difference!
between taxable income and accounting Income for the year and reversal
of timing differences of earlier years.
Deferred Tax is calculated at current statutory Income Tax Rates as
applicable and is recognized on timing difference betweer taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period Deferred Tax
Assets subject to consideration to prudence are recognized and carried
forward only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
Deferred Tax Assets can be realized.
i) REVENUE RECOGNITION
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can bÂ
reliably measured. The following specific recognition has also been met
before revenue is recognized.
Sale of Goods
Revenue from sale of goods is recognized when all significant risks and
rewards of ownership of the goods have been passed to the buyer,
usually on delivery of goods.
Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
j) EXPENDITURE RECOGNITION
All expenditures are accounted for on accrual basis.
k) PROVISIONS, CONTINGENT LIABILITIES AND CONTNIGENT ASSETS
A provision is recognized when the Company has a present obligation as
a result of past event. It is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting period. These estimates are reviewed at each reporting date
and adjusted to reflect the current based estimate.
Acontingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or non-
occurrence of one or more uncertain future events beyond the control of
the Company or a present obligation that is not recognized because it
is not probable that an outflow of resources will be required to settle
the obligation. The Company does not recognize a contingent liability
but discloses its existence in the financial statements by way of Note.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
c) Out of the above Shares, 81,58,950 Equity Shares of Rs. 10/- each have
been allotted as fully paid up Bonus Shares by capitalisation of
General Reserve on December 02,1993and January 16,1998.
d) 18,40,000 Equity Shares of Rs. 10/- each issued at par to Asset
Reconstruction Company (India) Limited, Mumbai against conversion of
Funded Interest Term Loan (FITL) into equity, as per terms of CDR.
e)The Company has only one dass of shares referred to as equity Shares
having at par value of Rs. 10/-each.
f) Each holder of Equity Shares is entitled to one vote per share.
g) The Equity Shareholders have the right to declare and approve
dividends, as proposed by the Board of Directors for any financial
year, to be paid to the members according to their rights and interest
in the profits. However, no larger dividend shall be declared than is
recommended by the Board of Directors.
h) In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of Equity Shares held
by the shareholders.
i) Name of the Shareholders holding more than 5% shares Equity Shares
As required to be disclosed under the Micro, Small and Medium
Enterprises Development Act, 2006 and to the extent such parties are
identified on the basis of information available with the Company,
there are no Micro enterprises or Small Scale Enterprises to whom the
Company owes any due which are outstanding as at 31 st March, 2015.
(Previous Period Rs. Nil)
Mar 31, 2014
Note No. 1
1.1 Basis of Preparation of Financial Statements:
The Financial Statements of the Company are prepared on going concern
under historical cost convention on accrual basis and in accordance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standard) Rules, 2006, (which continue to be applicable in
respect of Section 133, of Companies Act, 2013, in terms of General
Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate
Affairs) and the relevant provisions of the Companies Act, 1956. The
accounting policies have been consistently applied by the company.
1.2 Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumption that affect the reported amount of assets and
liabilities and disclosure of contingent liability at the date of
financial statement and the result of operations during the reporting
period. Although this estimates based upon the management''s best
knowledge and current events and actions, actual result could differ
from this estimates.
1.3 Revenue Recognition:
Sale of goods:
Sale are recognized at the time of dispatch of goods from factory and
are recorded including excise duty but exclusive of sales tax and trade
discounts, wherever applicable.
Interest from customer
Interest from customers on delayed payments are accounted on accrual
basis to the extent these are measurable and ultimate collection is
reasonably certain.
1.4 Basis of valuation of Fixed Assets:
(a) Leasehold land - at cost.
(b) Owned Fixed Assets - at cost less depreciation, cost includes all
costs incurred till the asset is put to use (including borrowing
costs).
1.5 Depreciation:
Depreciation on Fixed assets has been provided on straight line method
at the rates as specified in Schedule XIV of the Companies Act, 1956,
as amended vide notification GSR No. 756E dated December 16, 1993 and
subsequent notification GSR No. 101 (E) dated March 01,1995. Further
fixed assets whose aggregate cost is Rs 5000 or less are depreciated
fully in the year of acquisition.
1.6 Inventories:
Items of Inventories are measured at lower of cost or net realizable
value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including appropriate overheads. Cost of raw
materials is determined on first-in-first-out basis and stores and
packing materials are determined on weighted average basis.
1.7 Foreign Exchange Transactions:
Transactions in foreign exchange are accounted at exchange rates
prevailing on the date of transaction. Monetary items denominated in
foreign currencies at the year end are restated at year end rates. Any
income or expenses on account of exchange difference either on
settlement or on translation is recognized in the Statement of Profit
and Loss. Gains / Losses on forward exchange contracts are recognized
over the life of the contract.
1.8 Employee Benefits
(i) Post Employment Benefit Plans :
Defined Contribution Plan:
Contribution as per the Employees'' Provident Funds and Miscellaneous
Provisions Act, 1952 towards Provident Fund and Family Pension Fund are
provided for and payments in respect thereof are made to the relevant
authorities on actual basis.
Defined Benefit Plan:
Liability in respect of Employees'' Group Gratuity Cash Accumulation
Cum-Life Assurance Scheme and Group Superannuation Scheme are funded by
way of contribution to Life Insurance Corporation of India.
(ii) Other Benefits
Provision has been made in respect of leave standing to the credit of
the employees on the basis of their current salaries and not on the
basis of actuarial valuation method.
1.9 Taxation:
(a) Provision for Taxation:
Provision for current tax is made on the estimated taxable income at
the rate applicable to the relevant assessment year.
(b) Deferred Taxation:
In accordance with Accounting Standard- 22 on "Accounting for Taxes on
Income", the deferred tax for timing differences is accounted for,
using the tax rates and laws that have been enacted or substantially
enacted by the Balance Sheet date. Deferred tax assets arising from
timing differences are recognized only on the consideration of
prudence.
1.10 Impairment of Assets:
If internal / external indications suggest that an Asset of the Company
may be impaired, the recoverable amount of Asset / cash generating unit
is determined on the Balance Sheet date and if it is less than its
carrying amount, the carrying amount of the Asset / cash generating
unit is reduced to the said recoverable amount. Subsequently, if there
is a change in the indication, since the last impairment was
recognized, so that recoverable amount of an Asset exceeds its carrying
amount, an impairment recognized for an Assets in prior accounting
period is reversed. The recoverable amount is measured as the higher
of the net selling price and value in use of such Assets / cash
generating unit, which is determined by the present value of the
estimated future cash flows.
1.11 Provisions, Contingent Liabilities and Contingent Assets:
a. The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
b. Contingent liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c. Contingent Assets are neither recognized nor disclosed.
Sep 30, 2013
1.1 Basis of Preparation of Financial Statements:
The Financial Statements of the Company are prepared on going concern
under historical cost convention on accrual basis and in accordance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standard) Rules, 2006, and the relevant provisions of the
Companies Act, 1956. The accounting policies has been consistently
applied by the company.
1.2 Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumption that affect the reported amount of assets and
liabilities and disclosure of contingent liability at the date of
financial statement and the result of operations during the reporting
period. Although this estimates based upon the management''s best
knowledge and current events and actions, actual result could differ
from this estimates.
1.3 Revenue Recognition: Sale of goods''.
Sale are recognized at the time of dispatch of goods from factory and
are recorded including excise.duty but exclusive of sales tax and trade
discounts, wherever applicable.
Interest from customer
Interest from customers on delayed payments are accounted on accrual
basis to the extent these are measurable and ultimate collection is
reasonably certain.
1.4 Basis of valuation of Fixed Assets:
(a) Leasehold land-at cost.
(b) Owned Fixed Assets - at cost less depreciation, cost includes all
costs incurred till the asset is put to use (including borrowing
costs).
1.5 Depreciation:
Depreciation on Fixed assets has been provided on straight line method
at the rates as specified in Schedule XIV of the Companies Act, 1956,
as amended vide notification GSR No. 756E dated 16.12.1993 and
subsequent notification GSR No. 101 (E) dated 1.3.1995. Further fixed
assets whose aggregate cost is X 5000 or less are depreciated fully in
the year of acquisition.
1.6 Inventories:
Items of Inventories are measured at lower of cost or net realizable
value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including appropriate overheads. Cost of raw
materials is determined on first-in-first-out basis and stores and
packing materials are determined on weighted average basis.
1.7 Foreign Exchange Transactions:
Transactions in foreign exchange are accounted at exchange rates
prevailing on the date of transaction. Monetary items denominated in
foreign currencies at the year end are restated at year end rates. Any
income or expenses on account of exchange difference either on
settlement or on translation is recognized in the profit and loss
account. Gains / Losses on forward exchange contracts are recognized
over the life of the contract.
1.8 Employee Benefits
(i) Post Employment Benefit Plans
Defined Contribution Plan:
Contribution as per the Employee''s Provident Funds and Miscellaneous
Provisions Act, 1952 towards Provident Fund and Family
Pension Fund are provided for and payments in respect thereof are made
to the relevant authorities on actual basis.
Defined Benefit Plan:
Liability in respect of Employee''s Group Gratuity Cash Accumulation
Cum-Life Assurance Scheme and Group Superannuation
Scheme are funded by way of contribution to Life Insurance Corporation
of India. (ii) Other Benefits
Provision has been made in respect of leave standing to the credit of
the employees on the basis of their current salaries and not on the
basis of actuarial valuation method.
1.9 Taxation:
(a) Provision for Taxation:
Provision for current tax is made on the estimated taxable income at
the rate applicable to the relevant assessment year.
(b) Deferred Taxation:
In accordance with Accounting Standard- 22 on "Accounting for Taxes on
Income", the deferred tax for timing differences is accounted for,
using the tax rates and laws that have been enacted or substantially
enacted by the balance sheet date. Deferred tax assets arising from
timing differences are recognized only on the consideration of
prudence.
1.10 Impairment of Assets:
If internal / external indications suggest that an Asset of the
"Company may be impaired, the recoverable amount of Asset / cash
generating unit is determined on the Balance Sheet date and if it is
less than its carrying amount, the carrying amount of the Asset / cash
generating unit is reduced to the said recoverable amount.
Subsequently, if there is a change in the indication, since the last
impairment was recognized, so that recoverable amount of an Asset
exceeds its carrying amount, an impairment recognized for an Assets in
prior accounting period is reversed. The recoverable amount is measured
as the higher of the net selling price and value in use of such Assets
/ cash generating unit, which is determined by the present value of the
estimated future cash flows.
1.11 Provisions, Contingent Liabilities and Contingent Assets:
a. The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
b. Contingent liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c. ContingentAssets are neither recognized nor disclosed.
Mar 31, 2012
1.1 Basis of Preparation of Financial Statements:
The Financial Statements of the Company are prepared on going concern
under historical cost convention on accrual basis and in accordance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standard) Rules, 2006, and the relevant provisions of the
Companies Act, 1956.The accounting policies has been consistently
applied by the company.
1.2 Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumption that affect the reported amount of assets and
liabilities and disclosure of contingent liability at the date of
financial statement and the result of operations during the reporting
period. Although this estimates based upon the management's best
knowledge and current events and actions, actual result could differ
from this estimates.
1.3 Revenue Recognition: Sale of goods
Sales are recognized at the time of dispatch of goods from factory and
are recorded including excise duty but exclusive of sales tax and trade
discounts, wherever applicable.
Interest from customer
Interest from customers on delayed payments are accounted on accrual
basis to the extent these are measurable and ultimate collection is
reasonably certain.
1.4 Basis of valuation of Fixed assets :
(a) Leasehold land - at cost.
(b) Owned Fixed Assets- at cost less depreciation, cost includes all
costs incurred till the asset is put to use (including borrowing
costs).
1.5 Depreciation :
Depreciation on Fixed assets has been provided on straight line method
at the rates as specified in Schedule XIV of the Companies Act, 1956,
as amended vide notification GSR No. 756E dated 16.12.1993 and
subsequent notification GSR No. 101 (E) dated 01.03.1995. Further
fixed assets whose aggregate cost is Rs. 5000 or less are depreciated
fully in the year of acquisition.
1.6 Inventories:
Items of Inventories are measured at lower of cost or net realizable
value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including appropriate overheads. Cost of raw
materials is determined on first-in-first-out basis and stores and
packing materials are determined on weighted average basis.
1.7 Foreign Exchange Transactions :
Transactions in foreign exchange are accounted at exchange rates
prevailing on the date of transaction. Monetary items denominated in
foreign currencies at the year end are restated at year end rates .Any
income or expenses on account of exchange difference either on
settlement or on translation is recognized in the profit and loss
account. Gains / Losses on forward exchange contracts are recognized
over the life of the contract.
1.8 Employee Benefits
(i) Post Employment Benefit Plans
Defined Contribution Plan:
Contribution as per the Employees' Provident Funds and Miscellaneous
Provisions Act, 1952 towards Provident Fund and Family Pension Fund are
provided for and payments in respect thereof are made to the relevant
authorities on actual basis.
Defined Benefit Plan:
Liability in respect of Employees' Group Gratuity Cash Accumulation
Cum-Life Assurance Scheme and Group Superannuation Scheme are funded by
way of contribution to Life Insurance Corporation of India.
(ii) Other Benefits
Provision has been made in respect of leave standing to the credit of
the employees on the basis of their current salaries and not on the
basis of actuarial valuation method.
1.9 Taxation:
(a) Provision for Taxation:
Provision for current tax is made on the estimated taxable income at
the rate applicable to the relevant assessment year.
(b) Deferred Taxation:
In accordance with Accounting Standard- 22 on "Accounting for Taxes on
Income", the deferred tax for timing differences is accounted for,
using the tax rates and laws that have been enacted or substantially
enacted by the balance sheet date. Deferred tax assets arising from
timing differences are recognized only on the consideration of
prudence.
1.10 Impairment of Assets:
If indications suggest that assets of the company may be impaired, the
recoverable amount of asset are determined on the Balance Sheet date
and if it is less than its carrying amount, the carrying amount of
assets are reduced to the said recoverable amount.
1.11 Provisions, Contingent Liabilities and Contingent Assets:
a. The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be;
measured only by using a substantial degree of estimation.
b. Contingent liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c. Contingent Assets are neither recognized nor disclosed.
Mar 31, 2011
1. Basis of Preparation of Financial Statements:
The Financial Statements of the Company are prepared on going concern
under historical cost convention on accrual basis and in accordance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standard) Rules, 2006, and the relevant provisions of the
Companies Act, 1956.The accounting policies has been consistently
applied by the company.
2. Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumption that affect the reported amount of assets and
liabilities and disclosure of contingent liability at the date of
financial statement and the result of operations during the reporting
period. Although this estimates based upon the management's best
knowledge and current events and actions, actual result could differ
from this estimates.
3. Revenue Recognition:
Sale of goods Sales are recognized at the time of dispatch of goods
from factory and are recorded including excise duty but exclusive of
sales tax and trade discounts, wherever applicable.
Interest from customer
Interest from customers on delayed payments are accounted on accrual
basis to the extent these are measurable and ultimate collection is
reasonably certain.
4. Basis of valuation of Fixed assets:
(a) Leasehold land - at cost.
(b) Owned Fixed Assets - at cost less depreciation, cost includes all
costs incurred till the asset is put to use (including borrowing
costs).
5. Depreciation :
Depreciation on Fixed assets has been provided on straight line method
at the rates as specified in Schedule XIV of the Companies Act, 1956,
as amended vide notification GSR No. 756E dated 16.12.1993 and
subsequent notification GSR No. 101 (E) dated 1.3.1995. Further fixed
assets whose aggregate cost is Rs. 5000 or less are depreciated fully
in the year of acquisition.
6. Inventories:
Items of Inventories are measured at lower of cost and net realizable
value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including appropriate overheads. Cost of raw
materials is determined on first-in-first-out basis and stores and
packing materials are determined on weighted average basis.
7. Foreign Exchange Transactions :
Transactions in foreign exchange are accounted at exchange rates
prevailing on the date of transaction. Monetary items denominated in
foreign currencies at the year end are restated at year end rates. Any
income or expenses on account of exchange difference either on
settlement or on translation is recognized in the profit and loss
account. Gains / Losses on forward exchange contracts are recognized
over the life of the contract.
8. Employee Benefits
(i) Post Employment Benefit Plans Defined Contribution Plan :
Contribution as per the Employees' Provident Funds and Miscellaneous
Provisions Act, 1952 towards Provident Fund and Family Pension Fund are
provided for and payments in respect thereof are made to the relevant
authorities on actual basis.
Defined Benefit Plan :
Liability in respect of Employees' Group Gratuity Cash Accumulation
Cum-Life Assurance Scheme and Group Superannuation Scheme are funded by
way of contribution to Life Insurance Corporation of India.
(ii) Other Benefits
Provision has been made in respect of leave standing to the credit of
the employees on the basis of their current salaries and not on the
basis of actuarial valuation method.
9. Taxation:
(a) Provision for Taxation:
Provision for current tax is made on the estimated taxable income at
the rate applicable to the relevant assessment year.
(b) Deferred Taxation:
In accordance with Accounting Standard- 22 on "Accounting for Taxes on
Income", the deferred tax for timing differences is accounted for,
using the tax rates and laws that have been enacted or substantially
enacted by the balance sheet date. Deferred tax assets arising from
timing differences are recognized only on the consideration of
prudence.
10. Impairment of Assets :
If indications suggest that assets of the company may be impaired, the
recoverable amount of asset are determined on the Balance Sheet date
and if it is less than its carrying amount , the carrying amount of
assets are reduced to the said recoverable amount.
11. Provisions, Contingent Liabilities and Contingent Assets:
(a) The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
(b) Contingent liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognized nor disclosed.
Mar 31, 2010
1. Basis of Accounting:
The Financial Statements of the Company are prepared on going concern
under historical cost convention as also accrual basis and in
accordance with the Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956, which have been prescribed by the
Companies (Accounting Standard) Rules, 2006, and the relevant
provisions of the Companies Act, 1956.
2. Revenue Recognition:
Sales are recognized at the time of despatch of goods from the factory
and are recorded including excise duty but exclusive of Sales Tax and
Trade Discounts, wherever applicable.
3. Basis of valuation of Fixed assets :
(a) Leasehold land - at cost.
(b) Owned Fixed Assets - at cost less depreciation, cost includes all
costs incurred till the asset is put to use (including borrowing
costs).
4. Method of Depreciation:
Depreciation on Fixed assets has been provided on straight line method
at the rates as specified in Schedule XIV of the Companies Act, 1956,
as amended vide notification GSR No. 756E dated 16.12.1993 and
subsequent notification GSR No. 101 (E) dated 1.3.1995. Further fixed
assets whose aggregate cost is Rs 5000 or less are depreciated fully in
the year of acquisition.
5. Valuation of Inventories :
Inventories are valued at lower of cost and net realizable value. Cost
for manufactured goods comprise of materials, labour and other
appropriate overheads. Cost for raw materials is determined on
first-in-first-out basis and stores and packing materials are
determined on weighted average basis.
6. Foreign Exchange Transactions :
Transactions in foreign exchange are accounted at exchange rates
prevailing on the date of transaction. Gains / losses on foreign
exchange rate fluctuations relating to current assets and current
liabilities are translated at the rates of exchange ruling on the
Balance Sheet date. Gains / losses arising out of fluctuations in the
exchange rates are accounted for in the Profit and Loss Account. Gains
/ Losses on forward exchange contracts are recognised over the life of
the contract.
7. Employee Benefits:
(i) Post Employment Benefit Plans
Defined Contribution Plan:
Contribution as per the Employees Provident Funds and Miscellaneous
Provisions Act, 1952 towards Provident Fund and Family Pension Fund are
provided for and payments in respect thereof are made to the relevant
authorities on actual basis.
Defined Benefit Plan:
Liability in respect of Employees Group Gratuity Cash Accumulation
Cum-Life Assurance Scheme and Group Superannuation Scheme are funded by
way of contribution to Life Insurance Corporation of India.
(ii) Other Benefits
Provision has been made in respect of leave standing to the credit of
the employees on the basis of their current salaries and not on the
basis of actuarial valuation method.
8. Taxation:
(a) Provision for Taxation:
Provision for current tax is made on the estimated taxable income at
the rate applicable to the relevant assessment year.
(b) Deferred Taxation:
In accordance with Accounting Standard- 22 on "Accounting for Taxes on
Income", the deferred tax for timing differences is accounted for,
using the tax rates and laws that have been enacted or substantially
enacted by the balance sheet date. Deferred tax assets arising from
timing differences are recognized only on the consideration of
prudence.
9. Impairment of Assets:
In terms of Accounting Standard- 28 "Impairment of Assets" the Company
assesses impairment of the assets on the reporting date, as per
criteria prescribed in the Standard.
10. Provisions, Contingent Liabilities and Contingent Assets:
(a) The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
(b) Contingent liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognized nor disclosed.