Mar 31, 2018
1. Significant Accounting Policies
(a) Basis of Preparation
These Financial Statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)Amendment Rules, 2016. These financial statements for the year ended March 31,2018 are prepared by the company under Ind AS for the first time. For all periods up to and including the year ended March 31,2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (hereinafter referred to as ''Previous GAAP'') used for its statutory reporting requirement in India immediately before adopting Ind AS. The financial statements for the year ended March 31,2017 and the opening Balance Sheet as at April 01,2016 have been restated in accordance with Ind AS for comparative information.
The Financial Statements have been prepared on the historical cost convention on going concern basis and on accruals basis unless otherwise stated.
The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at April 01,2016 being the'' date of transition to Ind AS''.
(b) Use of Estimates and Judgments
The preparation of Financial Statements requires management to make certain assumptions and estimates that affect the reported amount, the Financial Statements and Notes thereto. Difference between actual results and estimates are recognized in the period in which they materialize.
(c) Property, Plant and Equipment
The Company has adopted revaluation model for land & building. All the assets belonging to these classes of assets are carried at revalued amount being its fair value at the date of revaluation less subsequent depreciation. The Company shall carry out the revaluation of these assets periodically after every3to5 years.
Property, Plant & Equipment under all other classes are stated at cost of acquisition/installation inclusive of freight, duties, and taxes and all incidental expenses and net of accumulated depreciation. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as âCapital work-in-progressâ and stated at the amount spent up to the date of balance sheet.
Intangible assets are stated at their cost of acquisition.
(d) Depreciation
Depreciation on Property, Plant & Equipment is provided on written down value method, in terms of useful life of the Assets as prescribed in Schedule II to the Companies Act 2013. The depreciation rates which are different from the principal rates specified in Schedule-II are as follows: -
Tarpaulin 100% p.a.
Wooden & Plastic Crates 100% p.a.
(e) Financial Instruments
(1) Financial Assets
Initial recognition and measurement
All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.
Subsequent measurement
i) Financial assets carried at amortised cost
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
ii) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
iii) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL.
Investment in Subsidiaries, Associates and Joint Ventures
The Company has accounted for its investments in Subsidiaries, Associates and Joint Venture at cost.
Other Equity Investments
All other equity investments are measured at fair value. Investments which are not held for trading purposes and where the Company has exercised the option to classify the investment as Fair Value through other comprehensive income (''FVTOCI''), all fair value changes on the investment are recognised in OCI.
(2) Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
(3) Derivative financial instruments
Derivative financial instruments such as forward contracts, option contracts and cross currency swaps, to hedge its foreign currency risks are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value with changes in fair value recognised in the Statement of Profit and Loss in the period when they arise.
(f) Fair value measurement
The Company classifies the fair value of its financial instruments, FVTPL and FVTOCI, in the following hierarchy, based on the inputs used in their valuation:
i) Level 1 - The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet date.
ii) Level 2 - The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable market data. Such valuation techniques include discounted cash flows, standard valuation models based on market parameters for interest rates, yield curves or foreign exchange rates, dealer quotes for similar instruments and use of comparable arm''s length transactions.
iii) Level 3 - The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs).
(g) Dividend to Equity Shareholders
Dividend to Equity Shareholders is recognised as a liability and deducted from shareholders'' equity, in the period in which the dividends are approved by the equity shareholders in the general meeting.
(h) Inventories
Raw materials, traded and finished goods are stated at the lower of cost and net realisable value. Stores and spares are carried at cost.
Cost is determined on FIFO (First in First out) basis for raw material, and on weighted average method for all other categories of inventories. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to its present location and condition, where applicable, include appropriate overheads based on normal level of activity.
(i) Cash and Cash Equivalents
Cash and cash equivalents are short-term, highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.
(j) Revenue Recognition
Revenue is measured at fair value of the consideration received or receivable, net of discount, rebate, returns and value added taxes. The Company recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Company activities.
Revenue from sale of goods is recognised when all the significant risk and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, there is no continuing managerial involvement with the goods and the amount of revenue can be measured reliably. On recognition of revenue the Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.
Interest income is recognized using the effective interest method. Revenue in respect of Insurance / others claims, Commission, etc. is recognized only when it is reasonably certain that the ultimate collection will be made.
Revenue in respect of sale of licenses, duty drawback and other incentives is recognized on realization basis.
(k) Research and Development
Research expenditure is recognised in the statement of profit and loss as incurred. Development expenditure is capitalised only if the costs can be reliably measured, future economic benefits are probable, the product is technically feasible and the Company has the intent and the resources to complete the project. Development assets are amortised based on the estimated useful life, as appropriate.
(l) Employee Benefits
Contributions to defined provident fund are charged to the statement of profit and loss on accrual basis. Present liability for future payment of gratuity is determined on the basis of actuarial valuation at the balance sheet date and the expenses is charged to the statement of profit and loss.
(m) Foreign Currency Transactions
Transactions in foreign currencies are recognized at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.
Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognized in the Statement of Profit and Loss.
Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.
(n) Government Grant
Grants from the government are recognised when there is reasonable assurance that the grant will be received and the Company will comply with all attached conditions. Grant received from government towards property, plant &equipment''s acquired/constructed by the Company is deducted out of gross value of the asset acquired/ constructed and depreciation is charged accordingly.
(o) Borrowing Costs
Borrowing costs consist of interest, ancillary and other costs that the Company incurs in connection with the borrowing of funds and interest relating to other financial liabilities. Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing costs.
Interest and other borrowing costs attributable to qualifying assets are capitalised as a part of such assets till such time the assets are ready for use. Other interest and borrowing costs are charged to Statement of Profit and Loss.
(p) Income tax
Current -Income Tax:
Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961.
Deferred Tax:
Deferred tax is provided using the balance sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. The tax rates and tax laws used to compute the tax are those that are enacted or substantively enacted at the reporting date.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.
Current and Deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity.
Minimum Alternate Tax:
According to section 115JAA of the Income Tax Act, 1961, Minimum Alternative Tax (''MAT'') paid over and above the normal income tax in a subject year is eligible for carry forward for fifteen succeeding assessment years for set-off against normal income tax liability. The MAT credit asset is assessed against the Company''s normal income tax during the specified period.
(q) Leases
Lease of assets, where the Company, as a lessee, has substantially assumed all the risks and rewards of ownership are classified as finance leases. Assets acquired on finance lease are capitalised and depreciated as per Company''s policy on Property, Plant and Equipment. Finance lease are measured at the lease''s inception at the lower of fair value of the leased property and the present value of the minimum lease payments. The corresponding lease rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each year.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to statement of profit and loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
(r) Provisions, Contingent Liability and Contingent Assets
The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Adisclosure of contingent liability is made when there is a possible obligation or a present obligation that will probably not require outflow of resources or where a reliable estimate of the obligation cannot be made. Contingent Assets are neither recognised nor disclosed in the Financial Statements.
(s) Impairment of Financial Assets
Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category.
(t) Impairment of Non-Financial Assets
The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such Indication exists; the Company estimates the recoverable amount of assets. If such recoverable amount of the assets or the recoverable amount of the cash generating unit to which the assets belong is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of Profit & Loss. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at recoverable amount.
(u) Exceptional Items
Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the company. These are material items of income or expense that have to be shown separately due to their nature or incidence.
(v) Earnings per share
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects ofall dilutive potential ordinary shares.
(w) Events after the reporting period
Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such events before authorisation for issue.
Non-adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non adjusting events after the reporting date are not accounted, but disclosed.
3. First time adoption of Ind AS
The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 01,2017, with a transition date of April 01,2016. These financial statements for the year ended March 31,2018 are the first financial statements the Company has prepared under Ind AS. For all periods up to and including the year ended March 31,2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP'').
The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended March 31,2018, together with the comparative information as at and for the year ended March31,2017and the opening Ind AS Balance Sheet as at April 01,2016, the date of transition to Ind AS.
In preparing these Ind AS financial statements, the Company has availed certain exemptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under IndAS and Previous GAAP have been recognised directly in retained earnings.
Exemptions availed on First Time Adoption
(i) Investments in subsidiaries, joint ventures and associates
The Company has elected to adopt the carrying value under previous GAAP as on the date of transition i.e. April 1,2016 in its separate financial statements.
(ii) Property, Plant and Equipment
The Company has elected to adopt the carrying value under previous GAAP as deemed costs as on the date of transition i.e. April 1,2016 except the Land & Building for which the company has elected to adopt revaluation model.
(iii) Estimates
On transition, the company did not revise the estimates previously made under IGAAP except where required by Ind AS.
Mar 31, 2016
1. Significant Accounting Policies (a) Basis of Preparation of Financial Statements:
The financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and comply with the generally accepted Accounting Principles in India including Accounting Standards notified under the relevant provisions of the Companies Act, 2013 to the extent applicable, as adopted consistently by the company.
(b) Use of Estimates and Judgments:
The preparation of financial statements are in conformity with the Accounting Standards which requires Management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as on the date of balance sheet and the reported amount of revenues and expenditures during the reporting period. The estimates and assumptions used in the Financial Statements are based upon Management''s best evaluation of the relevant facts and circumstances as of the date of the Financial Statements. Examples of such estimates include useful life of fixed assets, creation of deferred tax asset, lease rentals and write off of deferred revenue expenditure. Actual results may differ from those estimates.
(c) Revenue Recognition:
The company follows the mercantile system of accounting and recognizes the income and expenditures on accrual basis except in case of significant uncertainties. Certain items of income such as insurance claim, market fees refund ,overdue interest from customers etc have been considered to the extent the amount is accepted by the parties. The principles of the revenue recognition are given
Sales are recognized as follows:
Domestic Sales -At the point of dispatches to customers.
Export Sales -At the time of issue of Bill of Lading.
Sales are recorded net of sales returns, price differences and sales tax.
Sale of license and duty draw back are recognized on realization basis.
(d) Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. All costs, including financing cost till commencement of commercial production, net charges on foreign exchange contracts, if capitalization criteria are met.
Capital work in progress is stated at cost. Capital WIP includes the cost of fixed assets that are not yet ready for their intended use, as on the balance sheet date.
(e) Depreciation:
Depreciation is provided on written down value basis at rates provided in Schedule II to the Companies Act, 2013. The depreciation rates which are different from the principal rates specified in Schedule-II are as follows:-
Tarpaulin: 100% p.a.
Wooden & Plastic Crates: 100% p.a.
Depreciation on addition to fixed assets is provided on pro-rata basis from the date the assets are acquired/installed. Depreciation on sale/deduction from fixed assets is provided for up to the date of sale, deduction and discernment as the case maybe.
In case of items having value of Rs. 5,000/- or below, acquired during the year have been charged to profit & loss account at 100% in the year of purchase.
(f) Impairment of 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 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.
(g) Expenditure Incurred during Construction Period:
Expenditure directly relating to construction activity is capitalized, Indirect expenditure incurred during construction period is capitalized as part of the indirect construction cost to the extent to which the expenditure indirectly related to construction or is incidental thereto. Other indirect expenditure (including borrowing costs) incurred during the construction period which is not related to the construction activity nor is incidental thereto is charged to the Statement of Profit and Loss. Income earned during construction period is deducted from the total of the indirect expenditure.
All direct capital expenditure on expansion are capitalized. As regards indirect expenditure on expansion, only that portion is capitalized which represents the marginal increase in such expenditure involved as a result of capital expansion. Both direct and indirect expenditure are capitalized only if they increase the value of the asset beyond its original standard of performance.
(h) Leases:
(a) Finance Lease:
(I) Assets taken on finance lease are capitalized at fair value or net present value of the minimum lease payments, whichever is less.
(ii) Lease payments are apportioned between the finance charges and outstanding liability in respect of assets taken on lease.
(b) Operating Lease:
Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating lease. Charges are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease term.
(i) Government Grants:
Grants in the nature of capital contribution towards setting up of projects in backward area is adjusted from the cost of the related fixed assets. Grants related to revenue are deducted from the related expense.
(j) Income Taxes:
(I) Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961. Deferred income tax reflects the impact of current year timing differences between taxable income that originates in one period and are capable of reversal in one or more subsequent periods
(ii) Minimum Alternate Tax (MAT) paid in accordance with Income Tax Act, 1961 gives rise to future economic benefits in the form of adjustments of future income tax liability against such payments.
(iii) 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 recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.
(k) Provisions, Contingent Liabilities and Contingent Assets:
Provisions
A provision is recognized when the company has a present obligation as a result of past event; it is probable that an outflow of resources 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.
Contingent Liability
Contingent liability is disclosed where, as a result of past events, there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets
Contingent assets are neither recognized nor disclosed.
(l) Employees Benefits:
The Company has adopted the Accounting Standard 15- Employee Benefits prescribed under the Companies (Accounting Standards) Rules, 2006 with effect from 1 January 2008. The Companyâs obligation towards various employee benefits has been recognized as follows:
Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are short-term employee benefits. Benefits such as salaries, wages and bonus wages, etc, are recognized in the Profit and Loss statement in the period in which the employee renders the related service.
Defined Benefit Plan
Gratuity cost is a defined benefit plan. The present value of obligations under such defined benefit plan is determined based on actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, years approximating to the terms of related obligations. Actuarial gains and losses are recognized immediately in the profit and loss statement. Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the settlement occurs.
(m) Borrowing Cost:
Borrowing cost includes:
a) Interest and commitment charges on bank borrowings and other short term and long term borrowings;
b) Amortization of discounts and premiums relating to the borrowings;
c) Amortization of ancillary costs incurred in connection with the arrangement of borrowing;
d) Finance charges in respect of assets acquired under finance lease and under other similar arrangements; and
e) Exchange difference arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.
Borrowing cost attributable to the fixed assets during construction/ exploration, renovation and modernization are capitalized. Such borrowing costs are apportioned on the average balance of capital work in progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.
(n) Investments:
Long Term Investments
Long term Investments are stated at cost.
(o) Inventories:
Inventories are valued at cost or net realizable value whichever is lower, as taken, valued and certified by the management. The basis for determining cost for various categories of inventories are as under:
Raw Material - Accustom FIFO Basis
Finished Stock - At material cost appropriate share of production overhead. Other cost to the extent they
are incurred in bringing the inventory to the present location and condition.
(On weighted average cost basis).
Work in Progress - At material cost appropriate share of production overhead.
(On weighted average cost basis).
Packing Material - At cost
Stores & Spares - At cost
(p) Foreign Exchange Transactions:
Transactions in foreign currency are converted at the exchange rate prevailing at the date of the transaction. Foreign currency monetary assets and liabilities not covered by forward exchange contracts are restated at the yearend rates and the resultant gains or losses are recognized in the Profit and Loss account. Non-monetary items are carried in terms of historical cost denominated in foreign currency using the exchange rates at the date of transaction.
Forward contracts other than those entered into to hedge foreign currency risk on unexecuted firm commitment or of highly probable forecast transactions are treated as foreign currency transactions and accounted accordingly. Any profit or loss arising on cancellation of a forward contract is recognized as income or expense in the period in which they arise..
Mark to Market exposure arising out of derivative contracts are provided except for those contracts which have been challenged in the court of law and disclosed under contingent liabilities.
The Company follows the Accounting Standards which are made mandatory. It is in the process of formulating the requisite mechanism/systems to meet prescribed requirements under Accounting Standards 30, 31 & 32. It shall be following the accounting policy of recognition, presentation & disclosure of forward exchange transactions including Derivative/ Hedging/ Currency Swaps & Interest Swaps etc as prescribed under these Accounting Standards with effect from the date these are made mandatory by ICAI. Unhinged balances of receivables and payables are disclosed on net basis.
(q) Research & Development:
Revenue Expenditure on Research & Development is charged as an expense in the year in which it is incurred.
Capital expenditure is included in respective heads under fixed assets.
(r) Earnings per share:
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. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting year. The weighted average numbers of equity shares outstanding during the year are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
(s) Cash and Cash Equivalents:
Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term investments with an original maturity of three months or less. Earmarked balances with bank, margin money or security against borrowings, guarantees and other commitments ,if any shall be treated separately from cash and cash equivalent.
Mar 31, 2015
(a) Basis of Preparation of Financial Statements :
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and
comply with the generally accepted Accounting Principles in India
including Accounting Standards notified under the relevant
provisions of the Companies Act, 2013 to the extent applicable, as
adopted consistently by the company.
(b) Use of Estimates and Judgments:
The preparation of financial statements are in conformity with the
Accounting Standards which requires Management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosures relating to the contingent liabilities as on the date
of balance sheet and the reported amount of revenues and expenditures
during the reporting period. The estimates and assumptions used in the
Financial Statements are based upon Management's best evaluation of the
relevant facts and circumstances as of the date of the Financial
Statements. Examples of such estimates include useful life of fixed
assets, creation of deferred tax asset, lease rentals and write off of
deferred revenue expenditure. Actual results may differ from those
estimates.
(c) Revenue Recognition :
The company follows the mercantile system of accounting and recognizes
the income and expenditures on accrual basis except in case of
significant uncertainties. Certain items of income such as insurance
claim, market fees refund ,overdue interest from customers etc have
been considered to the extent the amount is accepted by the parties.
The principles of the revenue recognition are given below:- Sales are
recognized as follows : Domestic Sales ÂAt the point of dispatches to
customers. Export Sales -At the time of issue of Bill of Lading. Sales
are recorded net of sales returns, price differences and sales tax.
Sale of license and duty draw back are recognized on realization basis.
(d) Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
directly attributable cost of bringing the asset to its working
condition for its intended use. All costs, including financing cost
till commencement of commercial production, net charges on foreign
exchange contracts, if capitalization criteria are met.
Capital work in progress is stated at cost. Capital WIP includes the
cost of fixed assets that are not yet ready for their intended
use,as on the balance sheet date.
(e) Depreciation:
Depreciation is provided on written down value basis at rates provided
in Schedule II to the Companies Act, 2013. The depreciation rates which
are different from the principal rates specified in Schedule-II are as
follows:-
Tarpaulin : 100% p.a.
Wooden & Plastic Crates : 100% p.a.
Depreciation on addition to fixed assets is provided on pro-rata basis
from the date the assets are acquired/installed. Depreciation on
sale/deduction from fixed assets is provided for up to the date of sale,
deduction and discernment as the case may be.
(f) Impairment of 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 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.
(g) Expenditure Incurred during Construction Period:
Expenditure directly relating to construction activity is capitalized,
Indirect expenditure incurred during construction period is capitalized
as part of the indirect construction cost to the extent to which the
expenditure indirectly related to construction or is incidental thereto.
Other indirect expenditure (including borrowing costs) incurred during the
construction period which is not related to the construction activity nor
is incidental thereto is charged to the Statement of Profit and Loss. Income
earned during construction period is deducted from the total of the indirect
expenditure.
All direct capital expenditure on expansion are capitalized. As regards
indirect expenditure on expansion, only that portion is capitalized
which represents the marginal increase in such expenditure involved as
a result of capital expansion. Both direct and indirect expenditure are
capitalized only if they increase the value of the asset beyond its
original standard of performance.
(h) Leases:
(a) Finance Lease:
(i) Assets taken on finance lease are capitalised at fair value or net
present value of the minimum lease payments, whichever is less.
(ii) Lease payments are apportioned between the finance charges and
outstanding liability in respect of assets taken on lease.
(b) Operating Lease:
Leases, where the less or effectively retains substantially all the
risks and benefits of ownership of the leased term are classified as
operating lease. Charges are recognized as an expense in the Statement
of Profit and Loss on a straight line basis over the lease term.
(i) Government Grants:
Grants in the nature of capital contribution towards setting up of
projects in backward area is adjusted from the cost of the related
fixed assets. Grants related to revenue are deducted from the related
expense.
(j) Income Taxes:
(i) Tax expense comprises current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with Income Tax Act, 1961. Deferred income tax reflects the
impact of current year timing differences between taxable income that
originates in one period and are capable of reversal in one or more
subsequent periods.
(ii) Minimum Alternate Tax (MAT) paid in accordance with Income Tax Act,
1961 gives rise to future economic benefits in the form of adjustments
of future income tax liability against such payments.
(iii) 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 recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. Deferred tax
assets are recognized on carry forward of unabsorbed depreciation and
tax losses only if there is virtual certainty that such deferred tax
assets can be realized against future taxable profits. Unrecognized
deferred tax assets of earlier years are re-assessed and recognized to
the extent that it has become reasonably certain that future taxable
income will be available against which such deferred tax assets can be
realized.
(k) Provisions, Contingent Liabilities and Contingent Assets :
Provisions
A provision is recognised when the company has a present obligation as
a result of past event; 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.
Contingent Liability
A contingent liability is disclosed where, as a result of past events,
there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a
possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure
is made.
Contingent assets
Contingent assets are neither recognized nor disclosed.
(l) Employees Benefits :
The Company has adopted the Accounting Standard 15- Employee Benefits
prescribed under the Companies (Accounting Standards) Rules, 2006 with
effect from 1 January 2008. The Company's obligation towards various
employee benefits has been recognized as follows:
Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are short-term employee benefits. Benefits such as salaries,
wages and bonus wages, etc, are recognized in the Profit and Loss statement
in the period in which the employee renders the related service.
Defined Benefit Plan
Gratuity cost is a defined Benefit Plan. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation. The
obligation is measured at the present value of estimated future cash
flows. The discount rates used for determining the present value
of obligation under defined benefit plans, is based on the market yields
on Government securities as at the balance sheet date, years approximating
to the terms of related obligations. Actuarial gains and
losses are recognised immediately in the profit and loss statement.
Gains or losses on the curtailment or settlement of any defined benefit
plan are recognized when the settlement occurs.
(m) Borrowing Cost:
Borrowing cost includes:
a) Interest and commitment charges on bank borrowings and other
short term and long term borrowings;
b)Amortization of discounts and premiums relating to the borrowings;
c)Amortization of ancillary costs incurred in connection with the
arrangement of borrowing;
d) Finance charges in respect of assets acquired under finance lease
and under other similar arrangements; and
e) Exchange difference arising from foreign currency borrowings to the
extent that they are regarded as an adjustment to interest costs.
Borrowing cost attributable to the fixed assets during construction/
exploration, renovation and modernization are capitalized. Such
borrowing costs are apportioned on the average balance of capital work
in progress for the year. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
(n) Investments:
Long Term Investments
Long term Investments are stated at cost.
(o) Inventories:
Inventories are valued at cost or net realizable value whichever is
lower, as taken, valued and certified by the management. The basis for
determining cost for various categories of inventories are as under:
Raw Material - At cost on FIFO Basis
Finished Stock - At material cost appropriate share of production
overhead. Other cost to the extent they
are incurred in bringing the inventory to the present
location and condition. (On weighted average cost
basis).
Work in
Progress - At material cost appropriate share of production
overhead.
(On weighted average cost basis).
Packing
Material - At cost
Stores &
Spares - At cost
(p) Foreign Exchange Transactions:
Transactions in foreign currency are converted at the exchange rate
prevailing at the date of the transaction. Foreign currency monetary
assets and liabilities not covered by forward exchange contracts are
restated at the year end rates and the resultant gains or losses are
recognized in the Profit and Loss account. Non-monetary items are
carried in terms of historical cost denominated in foreign currency
using the exchange rates at the date of transaction.
Forward contracts other than those entered into to hedge foreign
currency risk on unexecuted firm commitment or of highly probable
forecast transactions are treated as foreign currency transactions and
accounted accordingly. Any profit or loss arising on cancellation of a
forward contract is recognized as income or expense in the period in
which they arise.
Mark to Market exposure arising out of derivative contracts are provided
except for those contracts which have been challenged in the court of law
and disclosed under contingent liabilities.
The Company follows the Accounting Standards which are made mandatory.
It is in the process of formulating the requisite mechanism/systems to
meet prescribed requirements under Accounting Standards 30, 31 & 32. It
shall be following the accounting policy of recognition, presentation &
disclosure of forward exchange transactions including Derivative/ Hedging/
Currency Swaps & Interest Swaps etc as prescribed under these
Accounting Standards with effect from the date these are made mandatory
by ICAI. Un hedged balances of receivables and payables are disclosed on
net basis.
(q) Research & Development:
Revenue Expenditure on Research & Development is charged as an expense
in the year in which it is incurred. Capital expenditure is included
in respective heads under fixed assets.
(r) Earning per share:
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. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to a
fully paid equity share during the reporting year. The weighted average
numbers of equity shares outstanding during the year are adjusted for events
of bonus issue; bonus element in a rights issue to existing shareholders;
share split; and reverse share split (consolidation of shares). For the
purpose of calculating diluted earnings per share, the net profit or loss
for the year attributable to equity hare holders and the weighted average
number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
(s) Cash and Cash Equivalents:
Cash and cash equivalents in the balance sheet comprise of cash at bank
and in hand and short term investments with an original maturity of
three months or less. Earmarked balances with bank, margin money or
security against borrowings, guarantees and other commitments, if any
shall be treated separately from cash and cash equivalent.
Mar 31, 2013
(a) Basis of Preparation of Financial Statements:
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standard) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable, as adopted consistently by
the company.
(b) Use of Estimates and Judgments:
The preparation of financial statements are in conformity with the
Accounting Standards which requires Management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosures relating to the contingent liabilities as on the date
of balance sheet and the reported amount of revenues and expenditures
during the reporting period. The estimates and assumptions used in the
Financial Statements are based upon Management''s best evaluation of the
relevant facts and circumstances as of the date of the Financial
Statements. Examples of such estimates include useful life of fixed
assets, creation of deferred tax asset, lease rentals and write off of
deferred revenue expenditure. Actual results may differ from those
estimates.
(c) Revenue Recognition:
The company follows the mercantile system of accounting and recognizes
the income and expenditures on accrual basis except in case of
significant uncertainties. Certain items of income such as insurance
claim, market fees refund ,overdue interest from customers etc have
been considered to the extent the amount is accepted by the parties.
The principles of the revenue recognition are given below:-
Sales are recognized as follows:
Domestic Sales -At the point of dispatches to customers.
Export Sales -At the time of issue of Bill of Lading.
Sales are recorded net of sales returns, price differences and sales
tax.
Sale of license and duty draw back are recognized on realization basis.
(d) Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
directly attributable cost of bringing the asset to its working
condition for its intended use. All costs, including financing cost
till commencement of commercial production, net charges on foreign
exchange contracts, if capitalization criteria are met.
Capital work in progress is stated at cost. Capital WIP includes the
cost of fixed assets that are not yet ready for their intended use, as
on the balance sheet date.
(e) Depreciation:
Depreciation is provided on written down value basis at rates provided
in Schedule XIV to the Companies Act, 1956. The depreciation rates which
are different from the principal rates specified in Schedule-XIV
areas follows:-
Tarpaulin: 100%
Wooden & Plastic Crates: 100%
Depreciation on addition to fixed assets is provided on pro-rata basis
from the date the assets are acquired/installed. Depreciation on
sale/deduction from fixed assets is provided for up to the month of
sale, deduction and discernment as the case maybe.
In case of items having value of Rs. 5,000/- or below, acquired during
the year have been charged to profit & loss account at 100% in the year
of purchase.
(f) Impairment of 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 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.
(g) Expenditure Incurred during Construction Period:
Expenditure directly relating to construction activity is capitalized,
Indirect expenditure incurred during construction period is capitalized
as part of the indirect construction cost to the extent to which the
expenditure indirectly related to construction or is incidental
thereto. Other indirect expenditure (including borrowing costs)
incurred during the construction period which is not related to the
construction activity nor is incidental thereto is charged to the
Statement of Profit and Loss. Income earned during construction period
is deducted from the total of the indirect expenditure.
All direct capital expenditure on expansion are capitalized. As regards
indirect expenditure on expansion, only that portion is capitalized
which represents the marginal increase in such expenditure involved as
a result of capital expansion. Both direct and indirect expenditure are
capitalized only if they increase the value of the asset beyond its
original standard of performance.
(h) Leases:
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased term are classified as
operating lease. Charges are recognized as an expense in the Statement
of Profit and Loss on a straight line basis over the lease term.
(I) Government Grants:
Grants in the nature of capital contribution towards setting up of
projects in backward area is adjusted from the cost of the related
fixed assets. Grants related to revenue are deducted from the related
expense.
(j) Income Taxes:
(I) Tax expense comprises current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with Income Tax Act, 1961. Deferred income tax reflects the
impact of current year timing differences between taxable income that
originates in one period and are capable of reversal in one or more
subsequent periods.
(ii) Minimum Alternate Tax (MAT) paid in accordance with Income Tax
Act, 1961 gives rise to future economic benefits in the form of
adjustments of future income tax liability against such payments.
(iii) 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 recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. Deferred tax
assets are recognized on carry forward of unabsorbed depreciation and
tax losses only if there is virtual certainty that such deferred tax
assets can be realized against future taxable profits. Unrecognized
deferred tax assets of earlier years are re-assessed and recognized to
the extent that it has become reasonably certain that future taxable
income will be available against which such deferred tax assets can be
realized.
(k) Provisions, Contingent Liabilities and Contingent Assets:
Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event; 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.
Contingent Liability
Contingent liability is disclosed where, as a result of past events,
there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a
possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure
is made.
Contingent assets
Contingent assets are neither recognized nor disclosed.
(l) Employees Benefits:
The Company has adopted the Accounting Standard 15- Employee Benefits
prescribed under the Companies (Accounting Standards) Rules, 2006 with
effect from 1 January 2008. The Company''s obligation towards various
employee benefits has been recognized as follows:
Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are short-term employee benefits. Benefits such as
salaries, wages and bonus wages, etc, are recognized in the Profit and
Loss statement in the period in which the employee renders the related
service.
Defined benefit plan
Gratuity cost is a defined benefit plan. The present value of
obligations under such defined benefit plan is determined based on
actuarial valuation carried out by an independent actuary using the
Projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation. The
obligation is measured at the present value of estimated future cash
flows. The discount rates used for determining the present value of
obligation under defined benefit plans, is based on the market yields
on Government securities as at the balance sheet date, years
approximating to the terms of related obligations. Actuarial gains and
losses are recognized immediately in the profit and loss statement.
Gains or losses on the curtailment or settlement of any defined benefit
plan are recognized when the settlement occurs.
(m) Investments:
Long Term Investments
Long term Investments are stated at cost.
(n) Inventories:
Inventories are valued at cost or net realizable value whichever is
lower, as taken, valued and certified by the management. The basis for
determining cost for various categories of inventories are as under:
Raw Material - At cost on FIFO Basis
Finished Stock - At material cost appropriate share of production
overhead. (On weighted average cost basis).
Work in Progress - At material cost appropriate share of production
overhead. (On weighted average cost basis).
Packing Material - At cost
Stores & Spares - At cost
(o) Foreign Exchange Transactions:
Transactions in foreign currency are converted at the exchange rate
prevailing at the date of the transaction. Foreign currency monetary
assets and liabilities not covered by forward exchange contracts are
restated at the yearend rates and the resultant gains or losses are
recognized in the Profit and Loss account. Non-monetary items are
carried in terms of historical cost denominated in foreign currency
using the exchange rates at the date of transaction.
Forward contracts other than those entered into to hedge foreign
currency risk on unexecuted firm commitment or of highly probable
forecast transactions are treated as foreign currency transactions and
accounted accordingly. Any profit or loss arising on cancellation of
forward contract is recognized as income or expense in the period in
which they arise.
Derivative transactions are considered as off balance sheet items and
cash flows arising there from are recognized in the books of accounts
as and when paid in accordance with the terms of the respective
contracts over the tenor thereof. Mark to market exposure arising out
of derivative contracts has not been reflected in the financial
statements.
The Company follows the Accounting Standards which are made mandatory.
It is in the process of formulating the requisite mechanism/systems to
meet prescribed requirements under Accounting Standards 30, 31 & 32. It
shall be following the accounting policy of recognition, presentation &
disclosure of forward exchange transactions including Derivative/
Hedging/ Currency Swaps & Interest Swaps etc as prescribed under these
Accounting Standards with effect from the date these are made mandatory
by ICAI.
(p) Research & Development:
Revenue Expenditure on Research & Development is charged as an expense
in the year in which it is incurred.
Capital expenditure is included in respective heads under fixed assets.
(q) Earning per share:
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. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting year. The weighted
average numbers of equity shares outstanding during the year are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares).
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
(r) Cash and Cash Equivalents:
Cash and cash equivalents in the balance sheet comprise of cash at bank
and in hand and short term investments with an original maturity of
three months or less. Earmarked balances with bank, margin money or
security against borrowings, guarantees and other commitments ,if any
shall be treated separately from cash and cash equivalent.
Mar 31, 2012
Basis of Preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standard) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable, as adopted consistently
by the company.
Use of Estimates and Judgments
The preparation of financial statements are in conformity with the
Accounting Standards which requires Management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosures relating to the contingent liabilities as on the date
of balance sheet and the reported amount of revenues and expenditures
during the reporting period. The estimates and assumptions used in the
Financial Statements are based upon Management's best evaluation of the
relevant facts and circumstances as of the date of the Financial
Statements. Examples of such estimates include useful life of fixed
assets, creation of deferred tax asset, lease rentals and write off of
deferred revenue expenditure. Actual results may differ from those
estimates.
Revenue Recognition :
The company follows the mercantile system of accounting and recognizes
the income and expenditures on accrual basis except in case of
significant uncertainties. Certain items of income such as insurance
claim, market fees refund ,overdue interest from customers etc have
been considered to the extent the amount is accepted by the parties.
The principles of the revenue recognition are given below :
Sales are recognized as follows :
Domestic Sales - At the point of dispatches to customers.
Export Sales - At the time of issue of Bill of Lading.
Sales are recorded net of sales returns, price differences and sales
tax.
Sale of license and duty draw back are recognized on realization basis.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
assets to its working condition for its intended use.
Capital work in progress is stated at cost. Capital WIP includes the
cost of fixed assets that are not yet ready for their intended use, as
on the balance sheet date.
Depreciation
Depreciation is provided on written down value basis at rates provided
in Schedule XIV to the Companies Act, 1956. The depreciation rates
which are different from the principal rates specified in Schedule-XIV
are as follows:-
Tarpaulin 100%
Wooden & Plastic Crates 100%
In case of items having value of Rs. 5,000/- or below, acquired during
the year have been charged to profit & loss account at 100% in the year
of purchase.
Leases
In respect of Operating lease, lease rentals are accounted on accrual
basis in accordance with the respective lease agreements. Government
Grants
Grants in the nature of capital contribution towards setting up of
projects in backward area is adjusted from the cost of the related
fixed assets. Grants related to revenue are deducted from the related
expense.
Taxes on Income
Current Tax:
Provision is made for current Income Tax Liability estimated to arise
on the results for the year at the current rate of tax in accordance
with Income Tax Act 1961.
Deferred Tax
Deferred tax assets and liabilities are computed on the timing
differences at the balance sheet date between the carrying amount of
assets and liabilities and their respective tax bases. Deferred Tax
Assets (DTA) is recognized based on management estimates of virtual
certainty that sufficient future taxable income will be available
against which such DTA can be realized. The deferred tax charge or
credit is recognized using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date.
Employees Benefits
Defined Contribution Plans
Defined contribution plans are benefit plans under which the company
pays fixed contribution to state managed benefit schemes. The company
contributions to defined contribution plans are recognized in the
profit and loss account in the financial year to which they relate.
Defined Benefits Plan
The company has defined benefit plan in respect of its gratuity
liability and contributes to a Gratuity Fund. Provision for gratuity
has been made using the projected unit credit method on the basis of
actuarial valuation. Actuarial gains and losses in respect of gratuity
are charged to profit and loss account.
Investments
Long Term Investments
Long term Investments are stated at cost.
Investments in Wholly Owned subsidiary companies /Joint Venture Company
Investment in the wholly owned subsidiary companies/ joint venture
company have been stated at cost. No provisions for losses suffered by
the subsidiaries / joint venture company have been made in the
accounts. However consolidated financial statements have been prepared
in accordance with AS-21 prescribed by the Companies (Accounting
Standard) Rules, 2006.
Inventories
Inventories are valued at cost or net realizable value whichever is
lower, as taken, valued and certified by the management. The basis for
determining cost for various categories of inventories are as under:
Raw Material - At cost on FIFO Basis
Finished Stock - At material cost appropriate share of production
overhead
(On weighted average cost basis).
Work in Progress - At material cost appropriate share of production
overhead.
(On weighted average cost basis).
Packing Material - At cost
Stores & Spares - At cost
Foreign Exchange Transactions
Transactions in foreign currency are converted at the exchange rate
prevailing at the date of the transaction. Foreign currency monetary
assets and liabilities not covered by forward exchange contracts are
restated at the year end rates and the resultant gains or losses are
recognized in the Profit and Loss account. Non-monetary items are
carried in terms of historical cost denominated in foreign currency
using the exchange rates at the date of transaction.
Forward contracts other than those entered into to hedge foreign
currency risk on unexecuted firm commitment or of highly probable
forecast transactions are treated as foreign currency transactions and
accounted accordingly. Any profit or loss arising on cancellation of a
forward contract is recognized as income or expense in the period in
which they arise.
Mark to market exposure arising out of derivative contracts has been
provided except for those contracts which have been challenged in the
court of law and disclosed under contingent liabilities.
Research & Development
Revenue Expenditure on Research & Development is charged as an expense
in the year in which it is incurred.
Capital expenditure is included in respective heads under fixed assets.
Earning per share
Basic and diluted earning per share is calculated by dividing net
profit/loss for the year attributable to equity share holder by
weighted average number of equity share outstanding during the year.
b) Working Capital Loan from Banks are secured by hypothecation of
Inventory, book debts and other current assets of the company, both
present and future and the first charge on fixed assets of the company
(excluding of specific assets charged to Term lending Banks).
c) Buyers Credit has been availed from banks against lien on L.C limits
secured as descibed in para5(b) above for non fund based limits of
working capital loans.
c) During the year the company has invested a sum of Rs. 4220.85 to
acquire 15% share holding in Joint venture Company M/s Kohinoor
Speciality Foods India Pvt Ltd.
a) During the year the Company has transferred part of its business
purusant to consent of share holders obtained under section 293(1)(a)
of the Companies Act-1956. Other income includes profit of Rs.
335,97.72 Lacs on sale of the part of business.
Mar 31, 2011
1 Basis of Preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standard) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable, as adopted consistently
by the company.
2 Use of Estimates and Judgments
The preparation of financial statements are in conformity with the
Accounting Standards which requires Management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosures relating to the contingent liabilities as on the date
of balance sheet and the reported amount of revenues and expenditures
during the reporting period. The estimates and assumptions used in the
Financial Statements are based upon Management's best evaluation of the
relevant facts and circumstances as of the date of the Financial
Statements. Examples of such estimates include useful life of fixed
assets, creation of deferred tax asset, lease rentals and write off of
deferred revenue expenditure. Actual results may differ from those
estimates.
3 Revenue Recognition:
The company follows the mercantile system of accounting and recognizes
the income and expenditures on accrual basis except in case of
significant uncertainties. Certain items of income such as insurance
claim, market fees refund .overdue interest from customers etc have
been considered to the extent the amount is accepted by the parties.
The principles of the revenue recognition are given below:-
Sales are recognized as follows:
Domestic Sales -At the point of dispatches to customers.
Export Sales -At the time of issue of Bill of Lading.
Sales are recorded net of sales returns, price differences and sales
tax. Sale of license and duty draw back are recognized on realization
basis.
4 Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
assets to its working condition for its intended use.
Capital work in progress is stated at cost. Capital WIP includes the
cost of fixed assets that are not yet ready for their intended use, as
on the balance sheet date.
5 Depreciation
Depreciation is provided on written down value basis at rates provided
in Schedule XIV to the Companies Act, 1956. The depreciation rates
which are different from the principal rates specified in
Schedule-XIVare as follows:-
Tarpaulin 100%
Wooden & Plastic Crates 100%
In case of items having value of Rs. 5,000/- or below, acquired during
the year have been charged to profit & loss account at 100% in the year
of purchase.
6 Leases
In respect of Operating lease, lease rentals are accounted on accrual
basis in accordance with the respective lease agreements.
7 Government Grants
Grants in the nature of capital contribution towards setting up of
projects in backward area is adjusted from the cost of the related
fixed assets. Grants related to revenue are deducted from the related
expense.
8 Taxes on Income
Current Tax:
Provision of Income tax has not been made in view of losses incurred
during the year.
Deferred Tax:
Deferred tax assets and liabilities are computed on the timing
differences at the balance sheet date between the carrying amount of
assets and liabilities and their respective tax bases. Deferred Tax
Assets (DTA) is recognized based on management estimates of virtual
certainty that sufficient future taxable income will be available
against which such DTA can be realized. The deferred tax charge or
credit is recognized using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date.
9 Employees Benefits
9.1 Defined Contribution Plans
Defined contribution plans are benefit plans under which the company
pays fixed contribution to state managed benefit schemes. The company
contributions to defined contribution plans are recognized in the
profit and loss account in the financial year to which they relate.
9.2 Defined Benefits Plan
The company has defined benefit plan in respect of its gratuity
liability and contributes to a Gratuity Fund. Provision for gratuity
has been made using the projected unit credit method on the basis of
actuarial valuation. Actuarial gains and losses in respect of gratuity
are charged to profit and loss account.
10 Investments
Long Term Investments
Long term Investments are stated at cost.
Investments in Wholly Owned subsidiary companies /Joint Venture Company
Investment in the wholly owned subsidiary companies/joint venture
company have been stated at cost. No provisions for losses suffered by
the subsidiaries / joint venture company have been made in the
accounts. However consolidated financial statements have been prepared
in accordance with AS-21 prescribed by the Companies (Accounting
Standard) Rules, 2006.
11 Inventories
Inventories are valued at cost or net realizable value whichever is
lower, as taken, valued and certified by the management. The basis for
determining cost for various categories of inventories are as under:
Raw Material - At cost on FIFO Basis
Finished Stock - At material cost appropriate share of production
overhead. -
(On weighted average cost basis).
Workin Progress - At material cost appropriate share of production
over head.
(On weighted average cost basis).
Packing Material - At cost
Stores & Spares - At cost
12 Foreign Exchange Transactions
Transactions in foreign currency are converted at the exchange rate
prevailing at the date of the transaction. Foreign currency monetary
assets and liabilities not covered by forward exchange contracts are
restated at the year end rates and the resultant gains or losses are
recognized in the Profit and Loss account. Non-monetary items are
carried in terms of historical cost denominated in foreign currency
using the exchange rates at the date of transaction.
Forward contracts other than those entered into to hedge foreign
currency risk on unexecuted firm commitment or of highly probable
forecast transactions are treated as foreign currency transactions and
accounted accordingly. Any profit or loss arising on cancellation of a
forward contract is recognized as income or expense in the period in
which they arise.
Derivative transactions are considered as off balance sheet items and
cash flows arising there from are recognized in the books of accounts
as and when paid in accordance with the terms of the respective
contracts over the tenor thereof. Mark to market exposure arising out
of derivative contracts has not been reflected in the financial
statements.
The Company follows the Accounting Standards which are made mandatory.
It is in the process of formulating the requisite mechanism/systems to
meet prescribed requirements under Accounting Standards 30, 31 & 32. It
shall be following the accounting policy of recognition, presentation &
disclosure of forward exchange transactions including Derivative/
Hedging/ Currency Swaps & Interest Swaps etc as prescribed under these
Accounting Standards with effect from the date these are made mandatory
by ICAI.
13 Research & Development
Revenue Expenditure on Research & Development is charged as an expense
in the year in which it is incurred. Capital expenditure is included in
respective heads under fixed assets.
14 Miscellaneous Expenditure
The issue expenditure of FCCB is treated as Deferred Revenue
expenditure. As all the FCCB have been redeemed during current year,
the un-amortized expenditure has been adjusted from opening balance of
General Reserve.
15 Earning per share
Basic and diluted earning per share is calculated by dividing net
profit/loss for the year attributable to equity share holder by
weighted average number of equity share outstanding during the year.
Mar 31, 2010
1 Basis of Preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standard) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable, as adopted consistently
by the company.
2 Use of Estimates and Judgements
The preparation of financial statements are in conformity with the
Accounting Standards which requires Management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosures relating to the contingent liabilities as on the date
of balance sheet and the reported amount of revenues and expenditures
during the reporting period. The estimates and assumptions used in the
Financial Statements are based upon Managements best evaluation of the
relevant facts and circumstances as of the date of the Financial
Statements.Examples of such estimates include useful life of fixed
assets, creation of deferred tax asset, lease rentals and write off of
deferred revenue expenditure. Actual results may differ from those
estimates.
3 Revenue Recognition
The company follows the mercantile system of accounting and recognises
the income and expenditures on accrual basis except in case of
significant uncertainties. Certain items of income such as insurance
claim, market fees refund .overdue interest from customers etc have
been considered to the extent the amount is accepted by the parties.
The principles of the revenue recognition are given below:
Sales are recognised as follows:
Domestic Sales - At the point of dispatches to customers. Export Sales
- At the time of issue of Bill of Lading.
Sales are recorded net of sales returns, price differences and sales
tax. Sale of license and duty draw back are recognised on realisation
basis.
4 Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
assets to its working condition for its intended use.
Capital work in progress is stated at cost. Capital WIP includes the
cost of fixed assets that are not yet ready for their intended use, as
on the balance sheet date.
5 Depreciation
Depreciation is provided on written down value basis at rates provided
in Schedule XIV to the Companies Act, 1956. The depreciation rates
which are different from the principal rates specified in Schedule-XIV
are as follows:
Tarpoline 100%
Wooden & Plastic Crates 100%
In case of items having value of Rs. 5,000/- or below, acquired during
the year have been charged to profit & loss account at 100% in the year
of purchase.
6 Leases
In respect of Operating lease, lease rentals are accounted on accrual
basis in accordance with the respective lease agreements.
7 Government Grants
Grants in the nature of capital contribution towards setting up of
projects in backward area is adjusted from the cost of the related
fixed assets.
8 Taxes on Income Current Tax
Provision of Income tax has been made in accordance with provision of
section 115JB of Income Tax Act and the MAT credit entitlement has been
recognised as an assets in accordance with guidance note issued by The
Institute of Chartered Accountants of India.
Deferred Tax
Deferred tax assets and liabilities are computed on the timing
differences at the balance sheet date between the carrying amount of
assets and liabilities and their respective tax bases. Deferred Tax
Assets (DTA) is recognised based on management estimates of virtual
certainty that sufficient future taxable income will be available
against which such DTA can be realised. The deferred tax charge or
credit is recognized using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date.
9 Employees Benefits
9.1 Defined Contribution Plans
Defined contribution plans are benefit plans under which the company
pays fixed contribution to state managed benefit schemes. The company
contributions to defined contribution plans are recognized in the
profit and loss account in the financial year to which they relate.
9.2 Defined Benefits Plans
The company has defined benefit plan in respect of its gratuity
liability and contributes to a Gratuity Fund. Provision for gratuity
has been made using the projected unit credit method on the basis of
actuarial valuation. Acturial gains and losses in respect of gratuity
are charged to profit and loss account.
10 Investments
Long Term Investmenst
Long term Investments are stated at cost.
Investments in Wholly Owned subsidiary companies /Joint Venture Company
Investment in the wholly owned subsidiary companies/ joint venture
company have been stated at cost. No provi- sions for losses suffered
by the subsidiaries / joint venture company have been made in the
accounts. However consolidated financial statements have been prepared
in accordance with AS-21 issued by The Institute of Char- tered
Accountants of India.
11 Inventories
Inventories are valued at cost or net realisable value whichever is
lower, as taken, valued and certified by the management. The basis for
determining cost for various categories of inventories are as under:"
Raw Material - At cost on FIFO Basis
Finished Stock - At material cost + appropriate share of production
overhead. -
(On weighted average cost basis).
Work in Progress - At material cost + appropriate share of production
overhead.
(On weighted average cost basis).
Packing Material - At Cost
Stores & Spares
Stores & spares are charged to profit & loss A/c in the year of
purchase.
12 Foreign Exchange Transactions
Transactions in foreign currency are converted at the exchange rate
prevailing at the date of the transaction. Foreign currency monetary
assets and liabilities not covered by forward exchange contracts are
restated at the year end rates and the resultant gains or losses are
recognised in the Profit and Loss account. Non-monetary items are
carried in terms of historical cost denominated in foreign currency
using the exchange rates at the date of transaction.
Forward contracts other than those entered into to hedge foreign
currency risk on unexecuted firm commitment or of highly probable
forecast transactions are treated as foreign currency transactions and
accounted accordingly. Premium on foreign exchange forward contracts
are recognised in the Profit and Loss Account over the life of the
contract. Any profit or loss arising on cancellation of a forward
contract is recognised as income or expense in the period in which they
arise.
Derivative transactions are considered as off balance sheet items and
cash flows arising there from are recognized in the books of accounts
as and when paid in accordance with the terms of the respective
contracts over the tenor thereof. Mark to market exposure arising out
of derivative contracts has not been reflected in the financial state-
ments.
The Company follows the Accounting Standards which are made mandatory.
It is in the process of formulating the requisite mechanism/systems to
meet prescribed requirements under Accounting Standards 30,31 & 32. It
shall be following the accounting policy of recognition, presentation &
disclosure of forward exchange transactions including Derivative/
Hedging/ Currency Swaps & Interest Swaps etc as prescribed under these
Accounting Standards with effect from the date these are made mandatory
by ICAI.
13 Research & Development
Revenue Expenditure on Research & Development is charged as an expense
in the year in which it is incurred. Capital expenditure is included
in respective heads under fixed assets.
14 Miscellaneous Expenditure
The issue expenditure of FCCB is treated as Deferred Revenue
expenditure and is being written off over a period of ten years.
Mar 31, 2009
A) Basis of Preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standard) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable, as adopted consistently
by the company.
2 Use of Estimates and Judgements
The preparation of financial statements are in conformity with the
Accounting Standards which requires Management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosures relating to the contingent liabilities as on the date
of balance sheet and the reported amount of revenues and expenditures
during the reporting period. The estimates and assumptions used in the
Financial Statements are based upon Managements best evaluation of the
relevant facts and circumstances as of the date of the Financial
Statements.Examples of such estimates include useful life of fixed
assets, creation of deferred tax asset, lease rentals and write off of
deferred revenue expenditure. Actual results may differ from those
estimates.
3 Revenue Recognition
The company follows the mercantile system of accounting and recognises
the income and expenditures on accrual basis except in case of
significant uncertainties. Certain items of income such as insurance
claim, market fees refund overdue interest from customers etc have been
considered to the extent the amount is accepted by the parties. The
principles of the revenue recognition are given below:- Sales are
recognised as follows : Domestic Sales - At the point of dispatches to
customers. Export Sales - At the time of issue of Bill of Lading.
There are some instances of deviation where sales have been booked on
the date of negotiation. The deviation is as much of 3 days. The
differences arising out of these deviations are not material. Sales are
recorded net off sales returns, price differences and sales tax.
Sale of license and duty draw back are recognised on realisation basis.
4 Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
assets to its working condition for its intended use.
Capital work in progress is stated at cost. Capital WIP includes the
cost of fixed assets that are not yet ready for their intended use,
before the balance sheet date.
5 Depreciation
Depreciation is provided on written down value basis at rates provided
in Schedule XIV to the Companies Act, 1956.
The depreciation rates which are different from the principal rates
specified in Schedule-XIV are as follows:- Tarpoline 100% Wooden &
Plastic Crates 100%
In case of items having value of Rs. 5,000/- or below, acquired during
the year have been charged to profit & loss account at 100% in the year
of purchase.
6 Leases
In respect of Operating lease, lease rentals are accounted on accrual
basis in accordance with the respective lease agreements.
7 Government Grants
Grants in the nature of capital contribution towards setting up of
projects in backward area is adjusted from the cost of the related
fixed assets.
8 Taxes on Income Current Tax:
Provision for Income Tax has not been made due to the losses incurred
during the year.
Deferred Tax:
Deferred tax assets and liabilities are computed on the timing
differences at the balance sheet date between the carrying amount of
assets and liabilities and their respective tax bases. DTA is
recognised based on management estimates of virtual certainty that
sufficient future taxable income will be available against which such
DTA can be realised. The deferred tax charge or credit is recognized
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
9 Employees Benefits
9.1 Short Term Employees Benefits - Leave Encashment
All employees benefits payable within twelve months of rendering
service are classified as short term employee benefits and they are
recognized in the profit and loss account on actual payment basis.
9.2 Long Term Employees Benefits
9.2.1 Defined Post Employment Plan
Defined contribution plans are post employment benefit plans under
which the company pays fixed contribution to state managed benefit
schemes. The company contributions to defined contribution plans are
recognized in the profit and loss account in the financial year to
which they relate.
9.2.1 Defined Gratuity Plan
Provision for gratuity has been made using the projected unit credit
method on the basis of actuarial valuation. Acturial gains and losses
in respect of gratuity are charged to profit and loss account.
10 Investments
Long Term Investmenst
Long term Investments are stated at cost.
Investments in Wholly Owned subsidiary companies /Joint Venture Company
Investment in the wholly owned subsidiary companies/ joint venture
company have been stated at cost. No provisions for losses suffered by
the subsidiaries / joint venture company have been made in the
accounts. However consolidated financial statements have been prepared
for the information of the members.
11 Inventories
Inventories are valued at cost or net realisable value whichever is
lower, as taken, valued and certified by the management. The basis for
determining cost for various categories of inventories are as under:
Raw Material - At cost on FIFO Basis
Finished Stock - At material cost + appropriate share of production
overhead. (On weighted average cost basis).
Work in Progress - At material cost + appropriate share of production
overhead. (On weighted average cost basis).
Packing Material - At Cost
Stores & Spares
Stores & spares are charged to profit & loss A/c in the year of
purchase.
12 Foreign Exchange Transactions
Transactions in foreign currency are converted at the exchange rate
prevailing at the date of the transaction. Foreign currency monetary
assets and liabilities not covered by forward exchange contracts are
restated at the year end rates and the resultant gains or losses are
recognised in the Profit and Loss account. Non-monetary items are
carried in terms of historical cost denominated in foreign currency
using the exchange rates at the date of transaction.
Forward contracts other than those entered into to hedge foreign
currency risk on unexecuted firm commitment or of highly probable
forecast transactions are treated as foreign currency transactions and
accounted accordingly. Premium on foreign exchange forward contracts
are recognised in the Profit and Loss Account over the life of the
contract. Any profit or loss arising on cancellation of a forward
contract is recognised as income or expense in the period in which they
arise.
Derivative transactions are considered as off balance sheet items and
cash flows arising there from are recognized in the books of accounts
as and when paid in accordance with the terms of the respective
contracts over the tenor thereof.
The Company follows the Accounting Standards which are made mandatory.
It is in the process of formulating the requisite mechanism/systems to
meet prescribed requirements under Accounting Standards 30, 31 & 32. It
shall be following the accounting policy of recognition, presentation &
disclosure of forward exchange transactions including Derivative/
Hedging/ Currency Swaps & Interest Swaps etc as prescribed under these
Accounting Standards with effect from the date these are made mandatory
by ICAI.
13 Research & Development
Revenue Expenditure on Research & Development is charged as an expense
in the year in which it is incurred. Capital expenditure is included
in respective heads under fixed assets.
14 Miscellaneous Expenditure
The issue expenditure of FCCB is treated as Deferred Revenue
expenditure and is being written off over a period of ten years.
15 Earning per share
Basic and diluted earning per share is calculated by dividing net
profit/loss for the year attributable to equity share holder by
weighted average number of equity share outstanding during the year.