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Accounting Policies of Hind Syntex Ltd. Company

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 b€ 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.