Mar 31, 2011
A. Basis of Preparation of financial statements:
The financial statements have been prepared under historical cost
convention and in conformity with the generally accepted accounting
principles, applicable provisions of the Companies Act, 1956 and as per
the Accounting Standards issued by the Institute of Chartered
Accountants of India.
b. Income and Expenditure:
All items of income and expenditure shown in the statement having
material bearing on the accounts are accounted on accrual basis.
c. Fixed Assets:
Fixed Assets are stated at their original cost of acquisition,
including taxes, freight and their incidental expenses incurred in
connection with the erection/commission/construction of the said
assets, less accumulated depreciation.
d. Depreciation:
Depreciation is computed on Straight Line method basis in accordance
with the provision of Schedule XIV of the Companies Act, 1956.
e. Capital Work-in-Progress:
Includes advances given for capital goods and materials at site.
f. Investments:
Investments are stated at cost of acquisition and the same are
considered as long term investments.
g. Sales:
Sales as reported are exclusive of Excise Duty, Sales Tax, Insurance
and transport charges.
h. Inventories:
Raw materials, stores & spares, consumables and work-in-process are
valued at cost. Finished goods are valued at cost or net realizable
value whichever is lower. i. Miscellaneous expenses (to the extent not
written off) amounting to Rs.1127.49 Lakhs relating to Research and
Development and is considered as deferred revenue expenditure and
Written off over a period of 10 years, out of which, 10% is written off
during the financial year 2010- 2011 amounting to Rs.362.41 Lakhs.
During the financial year, the company has spent an amount of
Rs.1775.05 Lakhs towards its GDR issue and is considered as deferred
revenue expenditure and the same will be written off over a period of
10 years from the financial year 2011-2012.
j. Foreign Exchange Transactions:
The transactions in foreign exchange are accounted at the exchange rate
prevailing on the date of transaction. Any exchange gains or losses
arising out of subsequent fluctuations are accounted for in the Profit
and Loss account. Receivables and liabilities outstanding in foreign
currencies are translated at the exchange rates prevailing as at close
of the year. k. Taxation: Tax expenses comprises of current taxes,
i.e. Provision for current Income taxes is made on the taxable income
at the tax rate applicable to the relevant assessment year. The
Company has made current tax provision for Minimum Alternate Tax (MAT)
u/s 115 JB of the Income Tax Act, 1961. As per the provisions of
Section 115JAA, MAT. Credit receivable
has been recognized on the basis of return of Income filed for the
previous years and MAT provided for the current year. MAT Credit is
recognized as an asset to the extent there is convincing evidence that
the Company will pay normal income tax during the specified period. MAT
Credit is recognized as an asset in accordance with the recommendations
con- tained in guidance Note issued by the Institute of Chartered
Accountants of India. The said asset is created by way of a credit to
profit and loss account and shown as MAT Credit Entitlement. The
Company will review the same at each Balance Sheet date and write 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.
l. Deferred Income Tax:
The Company has accounted for Deferred Tax in accordance with the
Accounting Standard-22 "Accounting for Taxes on Income" issued by the
Institute of Chartered Accountants of India.
Deferred Tax resulting from timing differences between Book Profits and
Tax Profits is accounted for at the current rates of tax to the extent
the timing difference are expected to in case of deferred Tax
Liabilities with reasonable certainty and in case of Deferred Tax
Assets with virtual certainty that there would be adequate future
taxable income against which such deferred tax assets can be realized.
The deferred Tax liability for the current year amounting to Rs.234.65
Lakhs is shown in the Profit and Loss account under provision for
Deferred Tax. As at the year end, deferred Tax liability aggregates to
Rs.1684.39 Lakhs.
m. Employee Benefits:
Provident Fund: The company makes contribution to Provident Fund
administered by the Central Government under the Provident Fund Act,
1952.
n. Gratuity and Leave Encashment
The Company has created a Trust and has taken a Group Gratuity Life
Assurance Policy with Birla Sunlife Insurance Company Limited for
future payments of Gratuity to employees. The premium paid thereon on
actuarial valuation is charged to the Profit and Loss account. The
Company has made a provision of Rs.19,37,114/- towards Gratuity and
Rs.23,45,566/- towards Leave encashment of the employees.
o. Contingent Liabilities are generally not provided for in the
accounts and are shown separately if any in the notes on accounts.
Mar 31, 2010
A. Basis of Preparation of financial statements:
The financial statements have been prepared under historical cost
convention and in conformity with the generally accepted accounting
principles, applicable provisions of the Companies Act, 1956 and as per
the Accounting Standards issued by the Institute of Chartered
Accountants of India.
b. Income and Expenditure:
All items of income and expenditure shown in the statement having
material bearing on the accounts are accounted on accrual basis.
c. Fixed Assets:
Fixed Assets are stated at their original cost of acquisition,
including taxes, freight and their incidental expenses incurred in
connection with the erection/commission/construction of the said
assets, less accumulated depreciation.
d. Depreciation:
Depreciation is computed on Straight Line method basis in accordance
with the provision of Schedule XIV of the Companies Act, 1956.
e. Capital Work-in-Progress:
Includes advances given for capital goods and materials at site.
f. Investments:
Investments are stated at cost of acquisition and the same are
considered as long term investments.
g. Sales:
Sales as reported are exclusive of Excise Duty, Sales Tax, Insurance
and transport charges.
h. Inventories:
Raw materials, stores & spares, consumables and work-in-process are
valued at cost. Finished goods are valued at cost or net realizable
value whichever is lower. i. Miscellaneous expenses (to the extent not
written off) amounting to Rs.1489.90 Lakhs relating to Research and
Development and is considered as deferred revenue expenditure and
Written off over a period of 10 years, out of which, 10% is written off
during the financial year 2009- 2010 amounting to Rs.362.41 Lakhs.
i. Foreign Exchange Transactions:
The transactions in foreign exchange are accounted at the exchange rate
prevailing on the date of transaction. Any exchange gains or losses
arising out of subsequent fluctuations are accounted for in the Profit
and Loss account. Receivables and liabilities outstanding in foreign
currencies are translated at the exchange rates prevailing as at close
of the year. k. Taxation: Tax expenses comprises of current taxes,
i.e. Provision for current Income taxes is made on the taxable income
at the tax rate applicable to the relevant assessment year. The
Company has made current tax provision for Minimum Alternate Tax (MAT)
u/s 115 JB of the Income Tax Act, 1961. As per the provisions of
Section 115JAA, MAT. Credit receivable has been recognized on the basis
of return of Income filled for the previous years and MAT provided for
the current year. MAT Credit is recognized as an asset to the extent
there is convincing evidence that the Company will pay normal income
tax during the specified period. MAT Credit is recognized as an asset
recommendations con- tained in guidance Note issued by the Institute of
Chartered Accountants of India. The said asset is created by way of a
credit to profit and loss account and shown as MAT Credit Entitlement.
The Company will review the same at each Balance Sheet date and write
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.
j. Deferred Income Tax:
The Company has accounted for Deferred Tax in accordance with the
Accounting Standard- 22 ÃAccounting for Taxes on Incomeà issued by the
Institute of Chartered Accountants of India.
Deferred Tax resulting from timing differences between Book Profits and
Tax Profits is accounted for at the current rates of tax to the extent
the timing difference are expected to in case of deferred Tax
Liabilities with reasonable certainty and in case of Deferred Tax
Assets with virtual certainty that there would be adequate future
taxable income against which such deferred tax assets can be realized.
The deferred Tax liability for the current year amounting to Rs.413.94
Lakhs is shown in the Profit and Loss account under provision for
Deferred Tax. As at the year end, deferred Tax liability aggregates to
Rs.1449.75 Lakhs.
k. Employee Benefits:
Provident Fund: The company makes contribution to Provident Fund
administered by the Central Government under the Provident Fund Act,
1952.
l. Gratuity and Leave Encashment
The Company has created a Trust and has taken a Group Gratuity Life
Assurance Policy with Birla Sunlife Insurance Company Limited for
future payments of Gratuity to employees. The premium paid thereon on
actuarial valuation is charged to the Profit and Loss account. The
Company has made a provision of Rs.9,70,905/- towards Gratuity and
Rs.7,09,105/- towards Leave encashment of the employees.
m. Contingent Liabilities are generally not provided for in the
accounts and are shown separately if any in the notes on accounts.
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