Home  »  Company  »  J L Morison (India)  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of J L Morison (India) Ltd. Company

Mar 31, 2015

A) Basis of Preparation

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies act 2013. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policy has been consistently applied by the Company.

The Company follows the mercantile system of accounting in general and recognizes income and expenditure on accrual basis except as otherwise stated.

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:

Tangible assets

Tangible assets are capitalised on the day they are ready for use and are stated at cost less accumulated depreciation. Cost includes the purchase price and all identifiable cost incurred to bring the assets to its working condition and location. Borrowing costs relating to acquisition of fixed assets which takes 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.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Assets which are not ready for their intended use are disclosed under Capital Work-in-Progress.

Intangible assets

Intangible assets comprising software are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use.

d) Depreciation:

Tangible assets

Depreciation is provided using the straight line method on a pro-rata basis as per useful lives as prescribed under Part C of Schedule II of Companies Act, 2013. Individual assets costing rupees five thousand or less considered low value assets are depreciated in full in the year of purchase.

Intangible assets

Computer Software amortised over a period of 5 years

e) Impairment of Fixed Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factor. An impairment loss is recognised whenever 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. If at the Balance Sheet date there is any evaluation that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

f) Investments:

Long term investments are stated at cost less provision for diminution in value, which is other than temporary. Current investments are carried at lower of cost or fair value. In respect of current investments, the shortfall in the book value when compared to market value of said investment on individual basis is charged to Revenue account.

g) Inventory Valuation:

Traded Goods

Stock in trade are valued at lower of cost and net realizable value. For this purpose cost is determined on first in first out basis. Cost includes cost of purchase and other direct costs incurred.

h) Foreign Currency Transactions:

The transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in Profit and Loss Account. Monetary Assets and liabilities denominated in foreign currencies are stated at the exchange rate prevailing on the date of the Balance Sheet.

i) Forward Contracts:

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year.

j) Revenue Recognition:

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which normally coincides with dispatch of goods. Sales are net of returns, trade discounts, and sales tax and include excise duty.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Commission

Commission is recognized when right to receive the same from principal is established on sale.

Dividend

Dividend Income is recognized when right to receive the same is established.

Others

Subsidy from governments, Sales Tax assessment dues, Insurance claims are accounted for when reasonable certainty of receipt is established.

k) Employee Benefits:

(i) Defined benefit plans Gratuity

Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company makes annual contribution to the Employees'' Group Gratuity Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

Leave Encashment

Leave Encashment liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company allows to encash the privilege leave up to maximum of 15 days per annum from the maximum accumulated leaves of 84 days of qualifying employees. The company provides for unencashed portion of leave of qualified employees at each year end and the same is unfunded.

(ii) Defined contribution plans

These are Plans in which the company pays predefined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to the employees provident fund with the government and certain state plans like Employees State Insurance. The Company''s payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

l) Taxes on Income:

Income tax is accounted in accordance with AS22 ''Accounting for taxes on income'', issued by The Institute of Chartered Accountants of India (ICAI), which includes current taxes and deferred taxes. Deferred income taxes reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier year Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same and are recognized using the tax rates and tax laws that have been enacted or substantively enacted.

Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

Credit entitlement in respect of Minimum Alternate Tax (MAT) is considered on management estimation of regular taxation in future

Wealth tax is accounted in accordance with Wealth Tax Act, 1957.

m) Cash & Cash Equivalent:

Cash and Cash Equivalent comprises Cash, Fixed deposit and Short Term deposit which matured in less than three months.

n) Borrowing Cost:

Interest and other costs related to borrowing are considered as part of cost of qualifying fixed assets upto the date asset is ready for use. Other borrowing costs are charged to revenue.

o) Earnings Per Share:

Basic earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

p) Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilites, if material are disclosed by way of notes to accounts. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

A) Basis of Preparation:

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policy has been consistently applied by the Company.

The Company follows the mercantile system of accounting in general and recognizes income and expenditure on accrual basis except as otherwise stated.

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 takes 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:

Depreciation is provided using the Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

Leasehold land/building is amortized over the lease period.

Fixed assets costing each Rs. 5000/- or less are fully depreciated in the year of purchase.

Depreciation on the fixed Assets added/disposed off during the year provided on prorata basis.

e) Impairment of Fixed Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factor. An impairment loss is recognised whenever 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. If at the Balance Sheet date there is any evaluation that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

f) Investments:

Long term investments are stated at cost less provision for diminution in value, which is other than temporary. Current investments are carried at lower of cost or fair value. In respect of current investments, the shortfall in the book value when compared to market value of said investment on individual basis is charged to Revenue account.

g) Inventory Valuation:

Traded Goods

Stock in trade are valued at lower of cost and net realizable value. For this purpose cost is determined on first in first out basis. Cost includes cost of purchase and other direct costs incurred.

h) Foreign Currency Transactions:

The transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized

in Statment of Profit and Loss. Monetary Assets and Liabilities denominated in foreign currencies are stated at the exchange rate prevailing on the date of the Balance Sheet.

i) Forward Contracts:

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year.

j) Revenue Recognition:

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which normally coincides with dispatch of goods. Sales are net of returns, trade discounts, and sales tax and include excise duty.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Commission

Commission is recognized when right to receive the same from principal is established on sale.

Dividend

Dividend Income is recognized when right to receive the same is established.

Others

Subsidy from governments, Sales Tax assessment dues, Insurance claims are accounted for when reasonable certainty of receipt is established.

k) Employee Benefits:

(i) Defined benefit plans

Gratuity

Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company makes annual contribution to the Employees'' Group Gratuity Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

Leave Encashment

Leave Encashment liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company allows to encash the privilege leave up to maximum of 15 days per annum from the maximum accumulated leaves of 84 days of qualifying employees. The company provides for unencashed portion of leave of qualified employees at each year end and the same is unfunded.

(ii) Defined contribution plans

These are Plans in which the company pays predefined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to the employees provident fund with the government and certain state plans like Employees State Insurance. The Company''s payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

l) Taxes on Income:

Income tax is accounted in accordance with AS-22 ''Accounting for taxes on income'', issued by The Institute of Chartered Accountants of India (ICAI), which includes current taxes and deferred taxes. Deferred income taxes reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier year Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same and are recognized using the tax rates and tax laws that have been enacted or substantively enacted.

Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

Credit entitlement in respect of Minimum Alternate Tax (MAT) is considered on management estimation of regular taxation in future

Wealth tax is accounted in accordance with Wealth Tax Act, 1957.

m) Cash & Cash Equivalent:

Cash and Cash Equivalent comprises Cash, Fixed deposit and Short Term deposit which matured in less than three months.

n) Borrowing Cost:

Interest and other costs related to borrowing are considered as part of cost of qualifying fixed assets upto the date asset is ready for use. Other borrowing costs are charged to revenue.

o) Earnings Per Share:

Basic earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

p) Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilites, if material are disclosed by way of notes to accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

1 SHARE CAPITAL AUTHORISED

a) Rights of Equity Shareholders

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2014, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1 (31st March, 2013: Rs. 1)

In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

c) Share held by holding/ultimate holding company and / or their subsidiaries / associates

None of the equity shares are held by the holding/ ultimate holding company and/ or their subsidiaries / associates.

e) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date : Nil

f) Shares reserved for issue under options : Nil


Mar 31, 2013

A) Basis of Preparation:

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policy has been consistently applied by the Company.

The Company follows the mercantile system of accounting in general and recognizes income and expenditure on accrual basis except as otherwise stated.

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 takes 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:

Depreciation is provided using the Straight Line Method at the rates prescribed under schedule XIV of the Companies Act, 1956.

Leasehold land/building is amortized over the lease period.

Fixed assets costing each Rs. 5000/- or less are fully depreciated in the year of purchase.

Depreciation on the fixed Assets added/disposed off during the year provided on prorata basis.

e) Impairment of Fixed Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factor. An impairment loss is recognised whenever 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. If at the Balance Sheet date there is any evaluation that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

f) Investments:

Long term investments are stated at cost less provision for diminution in value, which is other than temporary. Current investments are carried at lower of cost or fair value. In respect of current investments, the shortfall in the book value when compared to market value of said investment on individual basis is charged to Revenue Account.

g) Inventory Valuation:

Traded Goods

Stock in trade are valued at lower of cost and net realizable value. For this purpose cost is determined on first in first out basis. Cost includes cost of purchase and other direct costs incurred.

h) Foreign Currency Transactions:

The transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in Statement of Profit & Loss. Monetary Assets and liabilities denominated in foreign currencies are stated at the exchange rate prevailing on the date of the Balance Sheet.

i) Forward Contracts:

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year.

j) Revenue Recognition:

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which normally coincides with dispatch of goods. Sales are net of returns, trade discounts, and sales tax and include excise duty.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Commission

Commission is recognized when right to receive the same from principal is established on sale.

Dividend

Dividend Income is recognized when right to receive the same is established.

Others

Subsidiary from governments, Sales Tax assessment dues, Insurance claims are accounted for when reasonable certainty of receipt is established.

k) Employee Benefits:

(i) Defined benefit plans

Gratuity

Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company makes annual contribution to the Employees'' Group Gratuity Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

Actuarial gains/losses are immediately taken to Statement of Profit & Loss and are not deferred.

Leave Encashment

Leave Encashment liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company allows to encash the privilege leave up to maximum of 15 days per annum from the maximum accumulated leaves of 84 days of qualifying employees. The company provides for unencashed portion of leave of qualified employees at each year end and the same is unfunded.

(ii) Defined contribution plans

These are plans in which the company pays predefined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to the employees provident fund with the government and certain state plans like Employees State Insurance. The Company''s payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

l) Taxes on Income:

Income tax is accounted in accordance with AS-22 ''Accounting for taxes on income'', issued by The Institute of Chartered Accountants of India (ICAI), which includes current taxes and deferred taxes. Deferred income taxes reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier year Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same and are recognized using the tax rates and tax laws that have been enacted or substantively enacted.

Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the Minimum Alternative Tax (MAT) credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit & Loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

Wealth tax is accounted in accordance with Wealth Tax Act, 1957.

m) Cash & Cash Equivalent:

Cash and Cash Equivalent comprises Cash, Fixed deposit and Short Term deposit which matured in less than three months.

n) Borrowing Cost:

Interest and other costs related to borrowing are considered as part of cost of qualifying fixed assets upto the date asset is ready for use. Other borrowing costs are charged to revenue.

o) Earnings Per Share:

Basic earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

p) Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilites, if material are disclosed by way of notes to accounts. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

A) Basis of Preparation:

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policy has been consistently applied by the Company.

The Company follows the mercantile system of accounting in general and recognizes income and expenditure on accrual basis except as otherwise stated.

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 takes 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:

Depreciation is provided using the Straight Line Method at the rates prescribed under schedule XIV of the Companies Act, 1956.

Leasehold land/building is amortized over the lease period.

Fixed assets costing each Rs. 5,000/- or less are fully depreciated in the year of purchase.

Depreciation on the fixed Assets added/disposed off during the year provided on pro-rata basis.

e) Impairment of Fixed Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factor. An impairment loss is recognised whenever 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. If at the Balance Sheet date there is any evaluation that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

f) Investments:

Long term investments are stated at cost less provision for diminution in value, which is other than temporary. Current investments are carried at lower of cost or fair value. In respect of current investments, the shortfall in the book value when compared to market value of said investment on individual basis is charged to Revenue account.

g) Inventory Valuation:

Traded Goods

Stock in trade are valued at lower of cost and net realizable value. For this purpose cost is determined on first in first out basis. Cost includes cost of purchase and other direct costs incurred.

h) Foreign Currency Transactions:

The transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognised in statement of profit and loss. Monetary Assets and liabilities denominated in foreign currencies are stated at the exchange rate prevailing on the date of the Balance Sheet.

i) Forward Contracts:

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year.

j) Revenue Recognition:

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which normally coincides with dispatch of goods. Sales are net of returns, trade discounts, and sales tax and include excise duty.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Commission

Commission is recognized when right to receive the same from principal is established on sale.

Dividend

Dividend Income is recognized when right to receive the same is established.

Others

Subsidiary from governments, Sales Tax assessment dues, Insurance claims are accounted for when reasonable certainty of receipt is established.

k) Employee Benefits:

(i) Defined benefit plans Gratuity

Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company makes annual contribution to the Employees' Group Gratuity Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

Actuarial gains/losses are immediately taken to statement of profit and loss and are not deferred.

Leave Encashment

Leave Encashment liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company allows to encash the privilege leave up to maximum of 15 days per annum from the maximum accumulated leaves of 84 days of qualifying employees. The company provides for unencashed portion of leave of qualified employees at each year end and the same is unfunded.

(ii) Defined contribution plans

These are Plans in which the company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to the employees provident fund with the government and certain state plans like Employees State Insurance. The Company's payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

I) Taxes on Income:

Income tax is accounted in accordance with AS-22 'Accounting for taxes on income', issued by The Institute of Chartered Accountants of India (ICAI), which includes current taxes and deferred taxes. Deferred income taxes reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier year Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation

and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same and are recognized using the tax rates and tax laws that have been enacted or substantively enacted.

Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the Minimum Alternative Tax (MAT) credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

Wealth tax is accounted in accordance with Wealth Tax Act, 1957.

m) Cash & Cash Equivalent:

Cash and Cash Equivalent comprises Cash, Fixed deposit and Short Term deposit which matured in less than three months.

n) Borrowing Cost:

Interest and other costs related to borrowing are considered as part of cost of qualifying fixed assets upto the date asset is ready for use. Other borrowing costs are charged to revenue.

Earnings Per Share:

Basic earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilites, if material are disclosed by way of notes to accounts. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

A) Basis of Preparation

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policy has been consistently applied by the Company.

The Company follows the mercantile system of accounting in general and recognizes income and expenditure on accrual basis except as otherwise stated.

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 takes 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.

Advances paid towards acquisition of the fixed assets which have not been installed or put to use and the cost of the assets not put to use before the year end are disclosed under capital work-in-progress.

d) Depreciation:

Depreciation is provided using the Straight Line Method at the rates prescribed under schedule XIV of the Companies Act, 1956.

Leasehold land/building is amortized over the lease period.

Fixed assets costing each Rs. 5000/- or less are fully depreciated in the year of purchase.

Depreciation on the fixed Assets added/disposed off during the year provided on pro-rata basis.

e) Impairment of Fixed Assets:

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 recognised whenever 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. If at the Balance Sheet date there is any evaluation that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

f) Investments:

Long term investments are stated at cost less provision for diminution in value, which is other than temporary. Current investments are carried at lower of cost or fair value. In respect of current investments, the shortfall in the book value when compared to market value of said investment on individual basis charged to Revenue A/c.

g) Inventory Valuation:

Inventories are valued as under:

Category Method of Valuation

Raw materials, packing materials, At lower of cost and net stores and spares realizable value. For this purpose cost is determined on moving weighted average basis.

Semi-finished goods and At lower of cost and net manufactured Goods realizable value. Cost includes material cost, direct and indirect labour cost, attributable factory overheads and excise duty.

Traded goods At lower of cost and net realizable value. For this purpose cost is determined on first in first out basis. Cost includes cost of purchase and other direct costs incurred.

h) Foreign Currency Transactions:

The transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in Profit and Loss Account. Monetary Assets and liabilities denominated in foreign currencies are stated at the exchange rate prevailing on the date of the Balance Sheet.

i) Forward Contracts

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year.

j) Revenue Regonition:

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which normally coincides with dispatch of goods. Sales are net of returns, trade discounts, and sales tax and include excise duty.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Commission

Commission is recognized when right to receive the same from principal is established on sale.

Dividend

Dividend Income is recognized when right to receive the same is established.

Others

Subsidiary from governments, Sales Tax assessment dues, Insurance claims are accounted for when reasonable certainty of receipt is established.

k) Employee Benefits

(i) Defined benefit plans

Gratuity:

Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company makes annual contribution to the Employees' Group Gratuity Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

Leave Encashment

Leave Encashment liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company allows to encash the privilege leave up to maximum of 15 days per annum from the maximum accumulated leaves of 84 days of qualifying employees. The company provides for unencashed portion of leave of qualified employees at each year end and the same is unfunded.

(ii) Defined contribution plans

These are Plans in which the company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to the employees provident fund with the government, superannuation fund and certain state plans like Employees State Insurance. The Company's payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

l) Taxes on Income:

Income tax is accounted in accordance with AS-22 'Accounting for taxes on income', issued by The Institute of Chartered Accountants of India (ICAI), which includes current taxes and deferred taxes. Deferred income taxes reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same and are recognized using the tax rates and tax laws that have been enacted or substantively enacted.

Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the Minimum Alternative Tax (MAT) credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

Wealth tax is accounted in accordance with Wealth Tax Act, 1957.

m) Cash & Cash Equivalent:

Cash and Cash Equivalent comprises Cash, Fixed deposit and Short Term deposit which matured in less than three months.

n) Borrowing Cost:

Interest and other costs related to borrowing are considered as part of cost of qualifying fixed assets upto the date asset is ready for use. Other borrowing costs are charged to revenue.

o) Earning Per share

Basis earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

p) Provisions, Contingent Liabilities and Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilites, if material are disclosed by way of notes to accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

q) Cenvat & Excise Duty and Service Tax:

Cenvat benefit on Raw Materials, Packing Materials, Tools and Stores and Spares is accounted for at the time of consumption by reducing the same from the respective costs, wherever applicable. Cenvat benefit on capita! goods is credited to the acquisition cost of the respective assets whenever they are available for adjustment against Central Excise duty payment. Service Tax on input service is accounted for at the time of availing the service by reducing the same from the respective cost of service, wherever applicable. It is adjusted against excise duty payment after the payment of the bill for services together with the Service Tax in line with the Cenvat Credit Rules 2004.


Mar 31, 2010

A) Basis of Preparation

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policy have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

The Company follows the mercantile system of accounting in general and recognizes income and expenditure on accrual basis except as otherwise stated.

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 managements 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 takes 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.

Advances paid towards acquisition of the fixed assets which have not been installed or put to use and the cost of the assets not put to use before the year end are disclosed undercapital work-in-progress.

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 recognised whenever 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. If at the Balance Sheet date there is any evaluation that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

d) Depreciation:

Depreciation is provided using the Straight Line Method at the rates prescribed under schedule XIV of the Companies Act, 1956.

Leasehold land/building is amortized over the lease period.

Fixed assets costing each Rs. 5000/-or less are fully depreciated in the year of purchase.

e) Investments:

Long term investments are stated at cost less provision for diminution in value, which is other than temporary. Current investments are carried at lower of carrying value or fair value.

g) Foreign Currency Transactions:

The transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in Profit and Loss Account. Assets and liabilities denominated in foreign currencies are stated at the exchange rate prevailing on the date of the Balance Sheet.

h) Forward Contracts

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year. None of the forward exchange contracts are taken for trading or speculation purpose.

i) Revenue Regonition:

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which normally coincides with dispatch of goods. Sales are net of returns, trade discounts, and sales tax and include excise duty.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Commission

Commission is recognized when right to receive the same from principal is established on sale to select party/ies.

Dividend

Dividend Income is recognized when right to receive the same is established.

Others

Subsidiary from governments, Sales Tax assessment dues, Insurance claims are accounted for when reasonable certainty of receipt is established.

j) Employee Benefits

(i) Defined benefit plans

Gratuity:

Gratuity liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company makes annual contribution to the Employees Group Gratuity Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

Leave Encashment

Leave Encashment liability is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

The Company encash the privilege leave up to maximum of 15 days per annum from the maximum accumulated leaves of 84 days of qualifying employees. The company provides for unencashed portion of leave of qualified employees at each year end and the same is unfunded..

(ii) Defined contribution plans

These are Plans in which the company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. These comprise of contributions to the employees provident fund with the government, superannuation fund and certain state plans like Employees State Insurance. The Companys payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

k) Taxes on Income:

Income tax is accounted in accordance with AS-22 Accounting for taxes on income, issued by The Institute of Chartered Accountants of India (ICAI), which includes current taxes and deferred taxes. Deferred income taxes reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same and are recognized using the tax rates and tax laws that have been enacted orsubstantively enacted.

Current tax is determined as the amount of tax payable in respect of taxable income using the applicable tax rates and tax laws for the year.

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the Minimum Alternative Tax (MAT) credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

Wealth tax is accounted in accordance with Wealth Tax Act, 1957.

l) Borrowing Cost:

Interest and other costs related to borrowing are considered as part of cost of qualifying fixed assets upto the date asset is ready for use. Other borrowing costs are charged to revenue.

m) Earning Pershare

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

n) Provisions, Contingent Liabilities and Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilites, if material are disclosed by way of notes to accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

o) Cenvat & Excise Duty and Service Tax:

Cenvat benefit on Raw Materials, Packing Materials, Tools and Stores and Spares is accounted for at the time of consumption by reducing the same from the respective costs, wherever applicable. Cenvat benefit on capital goods is credited to the acquisition cost of the respective assets whenever they are available for adjustment against Central Excise duty payment.

Service Tax on input service is accounted for at the time of availing the service by reducing the same from the respective cost of service, wherever applicable. It is adjusted against excise duty payment after the payment of the bill for services together with the Service Tax in line with the Cenvat Credit Rules 2004.