Mar 31, 2015
(a) Use of Estimates
The preparation of the Financial Statements in conformity with
Generally Accepted Accounting Principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees
benefits, income taxes, useful lives of fixed assets etc. Although
these estimates are based upon management's best knowledge of current
events and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
(b) Fixed Assets and Depreciation
i) Tangible Assets
Tangible assets are stated at their cost of acquisition net of
receivable CENVAT and VAT Credits. All costs, direct or indirect,
relating to the acquisition and installation of fixed assets and
bringing it to its working condition for its intended use are
capitalised and include borrowing costs and adjustments arising from
foreign exchange rate variations directly attributable to construction
or acquisition of fixed assets. Depreciation on fixed assets is
provided on straight line method (SLM) on a pro-rata-basis at the rates
and in the manner specified in Schedule II to the Companies Act, 2013.
In respect of assets acquired/sold during the year, depreciation has
been provided on pro-rata basis with reference to the days of
addition/put to use or disposal.
(ii) Intangible Assets
Intangible Assets are stated at their cost of acquisition, less
accumulated amortization and accumulated impairment losses thereon. An
intangible asset is recognized where it is probable that future
economic benefits attributable to the asset will flow to the enterprise
and where its cost can be reliably measured. The depreciable amount of
intangible assets is allocated based on the estimates of the useful
life of the asset not exceeding five years.
(c ) Impairment of Assets
An asset is treated as impaired when the carrying c ost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
d) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investment. Current investment
are carried at lower of cost and fair value determined on an individual
item basis. Long-term investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments.
(e) Inventories
(i) Finished and Semi-Finished products produced and purchased by the
Company are carried at lower of cost and net realisable value after
providing for obsolescence, if any.
(ii) Work-in-progress is carried at lower of cost and net realisable
value.
iii) Stock of raw materials, stores, spare parts and packing materials
are valued at lower of cost less CENVAT Credit/ VAT availed or net
realisable value.
iv) Cost of inventories comprises all costs of purchase, cost of
conversion and other costs incurred in bringing them to their
respective present location and condition.
Liability for excise duty in respect of goods manufactured by the
Company is accounted upon (v) removal of goods from the factory.
(f) Revenue Recognition
Income and expenditure is recognized and accounted for on accrual
basis. 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. Revenue from sale of goods is recognized on transfer
of significant risks and rewards of ownership to the customer and when
no significant uncertainty exists regarding realisation of the
consideration. Sales are recorded net of sales returns, sales tax/VAT,
cash and trade discounts.
(g) Foreign Currency Transactions
The company follows Accounting Standard 11 issued by the Institute of
Chartered Accountants of India to account for the foreign exchange
transactions.
(h) Government Grants and Subsidies
Grants and Subsidies from the Government are recognized when there is
reasonable certainty that the Grant/Subsidy will be received and all
attaching conditions will be complied with. When the Grant or Subsidy
relates to an expense item, it is recognized as income over the periods
necessary to match them on a systematic basis to the costs, which it is
intended to compensate. Where the Grant or Subsidy relates to an
asset, its value is deducted from the gross value of the asset
concerned in arriving at the carrying amount of the related asset.
Government Grants of the nature of Promoters' contribution are credited
to Capital Reserve and treated as a part of Shareholders' Funds.
(i) Retirement Benefits
Contributions to the provident fund and employees state insurance (if
any) is made monthly at a pre-determined rate to the Provident Fund
Commissioner and Employees State Insurance Fund respectively and
debited to the profit & loss account on an accrual basis.
Provision for outstanding Leave Encashment benefit and Gratuity (if
any) for employees, if any is accounted for on accrual basis.
(j) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying asset s are capitalised as part of the cost
of such assets. All other borrowing costs are charged to revenue.
(k) Lease Policy
(i) Finance Leases
Leases which effectively transfer to the company substantially all the
risks and benefits incidental to ownership of the leased item, are
capitalised at the inception of the lease term at the lower of the fair
value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance charges
are recognized as finance costs in the Statement of Profit and Loss.
A Leased Asset is depreciated on a straight-line basis over the useful
life of the asset or the useful life envisaged in Schedule II to the
Companies Act, 2013, whichever is lower.
(ii) Operating Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item, are classified as
Operating lease. Operating lease payments are recognised as an expense
in the statement of profit and loss on a straight-line basis over the
lease term.
(l) Earning Per Share
The Company reports Basic and Diluted earnings per equity share in
accordance with the Accounting Standard - 20 on Earning Per Share. In
determining earning per share, the Company considers the net profit
after tax and includes the post tax effect of any
extraordinary/exceptional items. The number of shares used in computing
basic earning per share is the weighted avergae number of equity shares
outstanding during the period. The numbers of shares used in computing
diluted earning per share comprises the weighted average number of
equity shares that would have been issued on the conversion of all
potential equity shares. Dilutive potential equity shares have been
deemed converted as of the beginning of the period, unless issued at a
later date.
(m) Provision for Current and Deferred Tax
Provision for current Income Tax and Wealth Tax are made after taking
into consideration benefits admissible under the provisions of the
Income Tax Act, 1961. Deferred Tax resulting from "timing difference"
between book and taxable profit is accounted for using the tax rates
and laws that are enacted or substantively enacted as on the balance
sheet date. The deferred tax asset is recognized and carried forward
only to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
asset can be realized.
(o) Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognize d when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2014
A) Accounting Convention
The financial statements are prepared under the historic cost convention
bais and in accordance with the gererally accepted accounting principles
in india and the provisions of the compaies Act, 1956, except for
B) Fixed Asset & Depreciation
cost less depreciation. Depreciation on assets is on written down
value at the rates specified under the Income Tax Rules, 1962.
C) Revenue Recognition:
Items of incokme and items expenditure are of expenditues are recognised
on accorual basis. Dividend income are accounted for as and when the
right to receive the payment is established.
D) Investment
Investment are readily realisable and intended to be held not more than
a year ae classified as current investment current investments are
classied as Non Current Investments. Non current Investments.
E) Employee Benefits:
The provision of PF and ESI Act are not applicable to the Company as
the number of employees are below the prescribed statutory limit.
Termination expenses are recognised as an expense as and whenn
incurred.
F) Contingent Liabilities:
Blance sheet, provisions are made in the accounts in respect of and have
material effect on the position stated in the Balance Sheet.
G) Taxation:
Provision for current income tax is mode one, taking into consideration
the provisions of the income Act, 1961. There is no resulting liming
difference between book profit and taxable profit.
H) Earning per share
In determining basic earnings per share, the Company considers the net
profit after tax and includes the post tax affect of any extra ordinary
items. The number of shares used in computing basic earnings per share
is the weighted average number of shares outstanding during the period.
The number of shares used in computing diluted earnings per share
comprised the weighted average shares considered for deriving basic
earnings per share and also the weighted average number of equity shares
which could have ben issued on the conversion of all dilutive potential
equity shares. The diluted potentia, equity shares are adjusted tor the
proceeds recelavable, had the shares been actually issued at fair value.
Diluted potential equity shares are deemed converted as of the beginning
of the period, unless issued at a later date.
Mar 31, 2013
A) Accounting Convention:
The financial statements are prepared under the historic cost
convention on accrual basis and in accordance with the generally
accepted accounting principles in India and the provisions of the
Companies Act, 1956, except for
B) Fixed Assets & Depreciation:
Fixed Assets are stated at historical cost less depreciation.
Depreciation on assets is charged on written down value at the rates
specified under the income Tax Rules, 1962.
C) Revenue Recognition:
Items of Income and items of expenditures are recognised on accrual
basis. Dividend income are accounted for as and when the right to
receive the payment is established.
D) Investments:
Investments that are readily realisable and inteneded to be held not
more than a year are classified as Current Investments.Current
Investments are carried at cost or quoted/fair value, computed category
wise. Long term investments are classied as Non Current investments.
E) Employee Benefits:
The Provisions of PF and ESI Act are not applicable to the Company as
the number of employees are below the prescribed statutory limit.
Termination expenses are recognised as an expense as and whenn
incurred.
F) Contingent Liabilities:
These are disclosed by way of notes to the Balance Sheet, Provisions
are made in the accounts in respect of those contingencies which are
likely to materialise into liabilities after the year end, till the
finalisation of accounts and have material effect on the position
stated in the Balance Sheet.
G) Taxation :
Provision for current income tax is made after taking into
consideration the provisions of the income-tax Act, 1961. There is no
resulting timing difference between book profit and taxable profit.
H) Earnings Per Share:
In determining basic earnings per share, the Company considers the net
profit after tax and includes the post tax effct of any extra ordinary
items. The number of shares used in computing basic earnings per share
is the weighted average number of shares outstanding during the period.
The number of shares used in computing diluted earnings per share
comprised the weighted average shares considered for deriving basic
earnings per share, and also the weighted average number of equity
shares which could have ben issued on the conversion of all dilutive
potential equity shares. The diluted potential equity shares are
adjusted for the proceeds receivable, had the shares been actually
issued at fair value. Diluted potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later
date.
Mar 31, 2012
A) Accounting Convention:
The financial statements are prepared under the historic cost
convention on accrual basis and in accordance with the generally
accepted accounting principles in India and the provisions of the
Companies Act, 1956, except for
B) Fixed Assets & Depreciation:
Fixed Assets are stated at historical cost less depreciation.
Depreciation on assets is charged on written down value at the rates
specified under the Income Tax Rules, 1962.
C) Revenue Recognition:
Items of Income and items of expenditures are recognised on accrual
basis. Dividend income are accounted for as and when the right to
receive the payment is established.
D) Investments:
Investments that are readily realisable and inteneded to be held not
more than a year are classified as Current Investments.Current
Investments are carried at cost or quoted/fair value, computed category
wise. Long term investments are classied as Non Current Investments.
E) Employee Benefits:
The Provisions of PF and ESI Act are not applicable to the Company as
the number of employees are below the prescribed statutory limit.
Termination expenses are recognised as an expense as and whenn
incurred.
F) Contingent Liabilities:
These are disclosed by way of notes to the Balance Sheet, Provisions
are made in the accounts in respect of those contingencies which are
likely to materialise into liabilities after the year end, till the
finalisation of accounts and have material effect on the position
stated in the Balance Sheet.
G) Taxation:
Provision for current income tax is made after taking into
consideration the provisions of the income-tax Act, 1961. There is no
resulting timing difference between book profit and taxable profit.
H) Earnings Per Share:
In determining basic earnings per share, the Company considers the net
profit after tax and includes the post tax effct of any extra ordinary
items. The number of shares used in computing basic earnings per share
is the weighted average number of shares outstanding during the period.
The number of shares used in computing diluted earnings per share
comprised the weighted average shares considered for deriving basic
earnings per share, and also the weighted average number of equity
shares which could have ben issued on the conversion of all dilutive
potential equity shares. The diluted potential equity shares are
adjusted for the proceeds receivable, had the shares been actually
issued at fair value. Diluted potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later
date.
I) Previous Year Figures:
The Financial Statetements for the year ended 31st March, 2011 had been
prepared as per the then applicable pre-revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of revised Schedule
VI under the Companies Act, 1956 the financial statements for the year
ended 31st March, 2012 are prepared as per revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
confirm to this year's classification. The adoption of revised Schedule
VI for the previous year figures does not impact recognition and
measurement principles followed for preparation fo financial
statements.
Mar 31, 2011
A) Accounting Convention:
The financial statements are prepared under the historic cost
convention on accrual basis and in accordance with the generally
accepted accounting principles in India and the provisions of the
Companies Act, 1956, except
B) Fixed Assets & Depreciation:
Fixed Assets are stated at historical cost less depreciation.
Depreciation on assets is charged on written down value at the rates
specified under the Income Tax Rules, 1962.
C) Revenue Recognition:
Items of Income and items of expenditures are recognised on accrual
basis. Dividend income are accounted for as and when the right to
receive the payment is established.
D) Investments:
Investments that are readily realisable and inteneded to be held not
more than a year are classified as Current Investments.Current
Investments are carried at cost or quoted/fair value, computed category
wise. Long term investments are classied as Non Current Investments.
E) Employee Benefits:
The Provisions of PF and ESI Act are not applicable to the Company as
the number of employees are below the prescribed statutory limit.
Termination expenses are recognised as an expense as and whenn
incurred.
F) Contingent Liabilities:
These are disclosed by way of notes to the Balance Sheet, Provisions
are made in the accounts in respect of those contingencies which are
likely to materialise into liabilities after the year end, till the
finalisation of accounts and have material effect on the position
stated in the Balance Sheet.
G) Taxation :
Provision for current income tax is made after taking into
consideration the provisions of the income-tax Act, 1961. There is no
resulting timing difference between book profit and taxable profit.
H) Earnings Per Share:
In determining basic earnings per share, the Company considers the net
profit after tax and includes the post tax effct of any extra ordinary
items. The number of shares used in computing basic earnings per share
is the weighted average number of shares outstanding during the period.
The number of shares used in computing diluted earnings per share
comprised the weighted average shares considered for deriving basic
earnings per share, and also the weighted average number of equity
shares which could have ben issued on the conversion of all dilutive
potential equity shares. The diluted potential equity shares are
adjusted for the proceeds receivable, had the shares been actually
issued at fair value. Diluted potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later
date.
I) Previous Year Figures:
The Financial Statetements for the year ended 31st March, 2010 had been
prepared as per the then applicable pre-revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of revised Schedule
VI under the Companies Act, 1956 the financial statements for the year
ended 31st March, 2011 are prepared as per revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
confirm to this year's classification. The adoption of revised Schedule
VI for the previous year figures does not impact recognition and
measurement principles folllowed for preparation fo financial
statements.