Mar 31, 2014
A) 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 liabilities at the date of the
financial statements and the'' results of operations during'' the
reporting period. Although these estimates are based upon management''s
best knowledge of current events and actions, actual results could
differ from these estimates.
b) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation, amortisation and impairment losses
if any. Cost comprises the purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
c) Depreciation
i. Depreciation on Fixed Assets is provided on Written down
Value/Straight Line method as per Schedule XIV of the Companies Act,
1956.
ii. Fixed Assets costing rupees Five thousand or less are fully
depreciated in the year of acquisition.
d) Intangible Assets:
Computer Software : Costs incurred towards purchase of Computer
software are amortised using straight line method based on Management''s
estimate of useful lives of such software, which ranges from 3 to 5
years.
e) Prior period items
All items of income/expenditure pertaining to prior period, which are
material, are accounted through "prior period adjustments" and the
others are shown under respective heads of account in the Profit and
Loss Account.
f) Inventories
i. Raw materials, components, stores and spares are valued at lower of
cost and net realizable value. However, raw materials and other items
held for use in the production of inventories are not written down
below cost if the finished products in which they will be incorporated
are expected to be sold at or above cost. Cost is determined on FIFO
basis.
ii. Finished goods, Work in progress, Scrap, by-products, loose tools
and other stock in trade are valued at lower of cost and net realizable
value.
iii. Cost includes direct materials, labor and a proportion of
manufacturing overheads based on normal operating capacity. Cost is
determined on a FIFO basis and Cost of finished goods includes excise
duty wherever applicable. Cost of traded goods includes purchase and
allied costs incurred to bring inventory to its present condition and
location.
iv. Net realisable value is the estimated selling price in the
ordinary course of business, less estimated selling costs.
g) 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 be
reliably measured. Specifically the following basis is adopted:
I. Sale of Goods: Revenue is recognized when the significant risks and
rewards of ownership of goods have passed to the buyer, which generally
coincides with delivery. Sales are inclusive of excise duty and value
added tax/sales tax and is net of sales returns and discounts.
II. Income from Services: Revenue is recognized as and the Services
rendered as per the terms of individual Service Contract. Income from
Services is accounted inclusive of service tax.
III. Interest: Revenue is recognised on a time proportion basis taking
into account the amount outstanding and the rate applicable.
h) Retirement and Other Employee Benefits
i. Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year.
ii. The Provident Fund is a defined contribution scheme and the
contributions are charged to the profit and loss account of the year
when the contributions to the respective funds are due. There are no
other obligations other than the contribution payable to the respective
trusts.
iii. Short term compensated absences are provided on an estimated
basis. Long term compensated absences are provided for based on
actuarial valuation on project unit credit method carried by an actuary
as at the end of the year.
iv. Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
i) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalized.
Other Borrowing costs are recognized as an expense in the year in which
they are incurred.
j) Segment Reporting Policies
i. Identification of Segments:
The Company''s operating businesses are organized and managed separately
according to the nature of products, with each segment representing a
strategic business unit that offers different products and serves
different markets.
The analysis of geographical segment is based on the geographical
location of the customers. The geographical segments considered for
disclosure are as follows:
" Sales within India include sales to customers located within India.
" Sales outside India include sales to customers located outside India.
ii. Allocation of Common Costs:
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
iii. Unallocated Items:
Includes general corporate income and expense items which are not
allocated to any business segment:
k) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments are recognised as an expense
in the profit and loss account on a straight-line basis over the lease
term and vice versa.
l) Earnings per Share (Basic and Diluted)
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
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.
m) Cash Flow Statement
Cash flows are reported using indirect method. Cash and Cash
equivalents in the Cash flow statement comprise cash at bank,
cash/cheques in hand and Fixed Deposits with Banks
n) Taxes on Income
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act 1961
enacted in India. Deferred income taxes reflects the impact of current
year timing differences between taxable income and accounting income
for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognised 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 realised. If the Company
has carry forward of unabsorbed depreciation and tax losses, deferred
tax assets are recognised only, if there is virtual certainty supported
by convincing evidence that such deferred tax assets can be realised
against future taxable profits.
o) Impairment
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset''s net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. After
impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
p) Provisions
A provision is recognised when there is a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
q) Contingent Liabilities
A contingent 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. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
Mar 31, 2013
A) 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 liabilities at the date of the
financial statements and the'' results of operations during'' the
reporting period. Although these estimates are based upon management''s
best knowledge of current events and actions, actual results could
differ from these estimates.
b) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation, amortisation and impairment losses
if any. Cost comprises the purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
c) Depreciation
i. Depreciation on Fixed Assets is provided on Written down
Value/Straight Line method as per Schedule XIV of the Companies Act,
1956.
ii. Fixed Assets costing rupees Five thousand or less are fully
depreciated in the year of acquisition.
d) Prior period items
All items of income/expenditure pertaining tp prior period, which are
material, are accounted through "prior period adjustments" and the
others are shown under respective heads of account in the Profit and
Loss Account.
e) Inventories
i. Raw materials, components, stores and spares are valued at lower of
cost and net realizable value. However, raw materials and other items
held for use in the production of inventories are not written down
below cost if the finished products in which they will be incorporated
are expected to be sold at or above cost. Cost is determined on FIFO
basis.
ii. Finished goods, Work in progress, Scrap, by-products, loose tools
and other stock in trade are valued at lower of cost and net realizable
value.
iii. Cost includes direct materials, labor and a proportion of
manufacturing overheads based on normal operating capacity. Cost is
determined on a FIFO basis and Cost of finished goods includes excise
duty wherever applicable. Cost of traded goods includes purchase and
allied costs incurred to bring inventory to its present condition and
location.
iv. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated selling costs.
f) 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 be
reliably measured. Specifically the following basis is adopted:
I. Sale of Goods: Revenue is recognized when the significant risks and
rewards of ownership of goods have passed to the buyer, which generally
coincides with delivery. Sales are inclusive of excise duty and value
added tax/sales tax and is net of sales returns and discounts.
II. Income from Services: Revenue is recognized as and the Services
rendered as per the terms of individual Service Contract. Income from
Services is accounted inclusive of service tax.
III. Interest: Revenue is recognised on a time proportion basis taking
into account the amount outstanding and the rate applicable.
g) Retirement and Other Employee Benefits
i. Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year.
ii. The Provident Fund is a defined contribution scheme and the
contributions are charged to the profit and loss account of the year
when the contributions to the respective funds are due. There are no
other obligations other than the contribution payable to the respective
trusts.
iii. Short term compensated absences are provided on an estimated
basis. Long term compensated absences are provided for based on
actuarial valuation on project unit credit method carried by an actuary
as at the end of the year.
iv. Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
h) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalized.
Other Borrowing costs are recognized as an expense in the year in which
they are incurred.
i) Segment Reporting Policies
i. Identification of Segments :
The Company''s operating businesses are organized and managed separately
according to the nature of products, with each segment representing a
strategic business unit that offers different products and serves
different markets.
The analysis of geographical segment is based on the geographical
location of the customers. The geographical segments considered for
disclosure are as follows: " Sales within India include sales to
customers located within India. " Sales outside India include sales to
customers located outside India.
ii. Allocation of Common Costs:
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
iii. Unallocated Items:
Includes general corporate income and expense items which are not
allocated to any business segment:
j) Leases Leases where the lessor effectively retains substantially all
the risks and benefits of ownership of the leased assets are classified
as operating leases. Operating lease payments are recognised as an
expense in the profit and loss account on a straight-line basis over
the lease term and vice versa.
k) Earnings per Share (Basic and Diluted)
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. 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.
I) Cash Flow Statement
Cash flows reported using indirect method. Cash and Cash equivalents in
the Cash flow statement comprise cash at bank, cash/cheques in hand and
Fixed Deposits with Banks
m) Taxes on Income
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act 1961
enacted in India. Deferred income taxes reflects the impact of current
year timing differences between taxable income and accounting income
for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognised 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 realised. If the Company
has carry forward of unabsorbed depreciation and tax losses, deferred
tax assets are recognised only, if there is virtual certainty supported
by convincing evidence that such deferred tax assets can be realised
against future taxable profits.
n) Impairment
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset''s net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. After
impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
o) Provisions
A provision is recognised when there is a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
p) Contingent Liabilities
A contingent 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. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
Mar 31, 2012
A) Change in accounting policy: Presentation and disclosure of
financial statements: During the year ended 31 March 2012, the revised
Schedule VI notified under the Companies Act 1956, has become
applicable to the company, for preparation and presentation of its
financial statements. The adoption of revised Schedule VI does not
impact recognition and measurement principles followed for preparation
of financial statements. However, it has significant impact on
presentation and disclosures made in the financial statements. The
company has also reclassified the previous year figures in accordance
with the requirements applicable in the current year
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 liabilities at the date of the
financial statements and the results of operations during' the
reporting period. Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from these estimates.
c) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation, amortisation and impairment losses
if any. Cost comprises the purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
d) Depreciation
i. Depreciation on Fixed Assets is provided on Written down
Value/Straight Line method as per Schedule XIV of the Companies Act,
1956.
ii. Fixed Assets costing rupees Five thousand or less are fully
depredated in the year of acquisition.
e) Inventories
i. Raw materials, components, stores and spares are valued at lower of
cost and net realizable value. However, raw materials and other items
held for use in the production of inventories are not written down
below cost if the finished products in which they will be incorporated
are expected to be sold at or above cost. Cost is determined on FIFO
basis.
ii. Finished goods. Work in progress. Scrap, by-products, loose tools
and other stock in trade are valued at lower of cost and net realizable
value.
iii. Cost includes direct materials, labor and a proportion of
manufacturing overheads based on normal operating capacity. Cost is
determined on a FIFO basis and Cost of finished goods includes excise
duty wherever applicable. Cost of traded goods includes purchase and
allied costs incurred to bring inventory to its present condition and
location.
iv. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated selling costs.
f) 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 be
reliably measured. Specifically the following basis is adopted:
I. Sale of Goods : Revenue is recognized when the significant risks
and rewards of ownership of goods have passed to the buyer, which
generally coincides with delivery. Sales are inclusive of excise duty
and value added tax/sales tax and is net of sales returns and
discounts.
II. Income from Services : Revenue is recognized as and the Services
rendered as per the terms of individual Service Contract. Income from
Services is accounted inclusive of service tax.
III. Interest: Revenue is recognised on a time proportion basis taking
into account the amount outstanding and the rate applicable.
g) Retirement and Other Employee Benefits
i. Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year.
ii. The Provident Fund is a defined contribution scheme and the
contributions are charged to the profit and loss account of the year
when the contributions to the respective funds are due. There are no
other obligations other than the contribution payable to the respective
trusts.
iii. Short term compensated absences are provided on an estimated
basis. Long term compensated absences are provided for based on
actuarial valuation on project unit credit method carried by an actuary
as at the end of the year.
iv. Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
h) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalized.
Other Borrowing costs are recognized as an expense in the year in which
they are incurred.
i) Segment Reporting Policies
i. Identification of Segments:
The Company's operating businesses are organized and managed separately
according to the nature of products, with each segment representing a
strategic business unit that offers different products and serves
different markets.
The analysis of geographical segment is based on the geographical
location of the customers. The geographical segments considered for
disclosure are as follows:
- Sales within India include sales to customers located within India.
- Sales outside India include sales to customers located outside India.
ii. Allocation of Common Costs:
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
iii. Unallocated Items:
Includes general corporate income and expense items which are not
allocated to any business segment:
j) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments are recognised as an expense
in the profit and loss account on a straight-line basis over the lease
term and vice versa.
k) Earnings per Share (Basic and Diluted)
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
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.
l) Taxes on Income
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act 1961
enacted in India. Deferred income taxes reflects the impact of current
year timing differences between taxable income and accounting income
for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognised 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 realised. If the Company
has carry forward of unabsorbed depreciation and tax losses, deferred
tax assets are recognised only, if there is virtual certainty supported
by convincing evidence that such deferred tax assets can be realised
against future taxable profits.
m) Impairment
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. After
impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
n) Provisions
A provision is recognised when there is a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
o) Contingent Liabilities
A contingent 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. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
p) Cash Flow Statement
Cash flows are reported using indirect method. Cash and cash
equivalents in the cash flow statement comprise cash at bank,
cash/cheques in hand and Fixed Deposits with Banks.
q) Prior period items
All items of income/expenditure pertaining to prior period, which are
material, are accounted through "prior period adjustments" and the
others are shown under respective heads of account in the Profit and
Loss Account.
Mar 31, 2010
A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the Notified accounting standards by Companies
(Accounting Standards) Rules 2006 (as amended) and relevant provisions
of the Companies Act, 1956. The financial statements have been prepared
in accordance with the generally accepted Accounting Principles in
India under the historical cost convention on accrual basis, except in
case of assets for which provision for impairment is made and
revaluation is carried out. The accounting policies are consistent with
those used in the previous year.
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 liabilities at the date of
financial statements and the results of operations during the
reporting period. Although these estimates are based upon managements
best knowledge of current events and actions, actual results could
differ from these estimates.
c) Fixed Assets
Fixed assests are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation and impairment losses if any. Cost
comprises the purchase price and any attributable cost to bring the
asset to its working condition for its intended use.
Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
d) Depreciation
i. Depreciation of Fixed Assets except Technical Know-how and Library
is provided on Written down Value / Straight Line method as per
Schedule XIV of the Companies Act, 1956. Technicial know-how fees and
cost of Library are written off over a period of 10 years equally
commencing from the year in which they are acquired.
ii. Fixed Assets costing rupees Five thousand or less are fully
depreciated in the year of acquistion.
e) Prior period items
All items of income / expenditure pertaining to prior period, which are
material, are accounted through "Prior period adjustments" and the
others are shown under respective heads of account in the Profit and
Loss Account.
f) Contingent Liabilities
The contingent liabilities are indicated by way of a note and will be
provided / paid on crystalisation.
g) Impairment
i. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on internal /
external factors. An impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use.
In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of
capital. After impairment, depreciation is provided on the? revised
carrying amount of the asset over its remaining useful life.
ii. Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
h) Inventories
i. Raw materials, components, stores and spares are valued at lower of
cost and net realisable value. However, raw materials and other items
held for use in the production of inventories are not written down
below cost if the finished products in which they will be incorporated
are expected to be sold at or above cost. Cost is determined on FIFO
basis.
ii. Finished goods, Work in progress, Scrap, by-products, loose tools
and other stock in trade are valued at lower of cost and net realizable
value.
iii. Cost includes direct materials, labour and a proportion of
manufacturing overheads based on normal operating capacity. Cost is
determined on a FIFO basis and cost of finished goods includes excise
duty wherever applicable. Cost of traded goods includes purchase and
allied costs incurred to bring inventory to its present condition and
location.
iv. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated selling costs.
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 be
reliably measured. Specifically the following basis is adopted.
i. Sale of Goods : Revenue is recognized when the significant risks and
rewards of ownership of goods have passed to the buyer, which generally
coincides with delivery. Sales are inclusive of excise duty and value
added tax / sales tax and is net of sales returns and discounts.
ii. Interest: Revenue is recognised on a time proporation basis taking
into account the amount outstanding and the rate applicable.
j) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substaintial
period of time to get ready for their intended use, are capitalized.
Other borrowing costs are recognized as an expense in the year in which
they are incurred.
k) Segment Reporting Policies
i. Identification of Segments:
The Companys operating businesses are organized and managed seperately
according to the nature of products, with each segment representing a
strategic business unit that offers different products and serves
different markets.
The analysis of geographical segment is based on the geographical
location of the customers. The geographical segments considered for
disclosure are as follows.
. Sales within india include sales to customers located within indja
. Sales outside india include sales to customers located outside india.
ii. Allocation of Common Costs :
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
iii. Unallocated Items :
Includes general corporate income and expense items which arenot
allocated to any business segment.
I) Retirement and Other Employee itenefits
i. Gratuity liabilty is a defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year.
ii. The Provident Fund is a defined contribution scheme and the
contributions are charged to the profit and loss account of the year
when the contributions to the respective funds are due. There are no
other obligations other than the contribution payable to the respective
trusts.
iii. Short term compensated absences are provided on an estimated
basis. Long term compensated absencees are provided for based on
actuarial valuation on project unit credit method carried by an actuary
as at the end of the year.
iv. Actuarial gains / losses are immediately taken to profit and loss
account and are not deferred.
m) Leases :
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease payments are recognised as an expense
in the profit and loss account on a straight - line basis over the
lease term.
n) Taxes on income :
Current income tax is measured at the amount expected to be paid to the
tax authoritites in accordance with the Indian Income Tax Act 1961
enacted in india. Deferred income taxes reflects the impact of current
year timing differences between taxable income and accounting income
for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and laws enacted or
substantively enacted at the Balance Sheet date. Defferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deffered tax assets can be realised. If the Company has carry
forward of unabsorbed depreciation and tax losses, deferred tax assets
are recognised only, if there is virtual certainty supported by
convincing evidence that such deferred tax assets can be realised
against future taxable profits.
o) Provisions :
A provision is recognsied when there is a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
p) Earnings per Share (Basic and Diluted) :
Basic earnings per share are calcuated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per-share, the net
profit or loss for the period attribuatble 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.
q) Cash Flow Statement;
Cash flows are reported using indirect method. Gash and cash
equivalents in the cash flow statement comprise cash at bank,
cash/cheques in hand and Fixed Deposits with Banks.
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