Mar 31, 2015
I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013/Companies Act, 1956 as applicable. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies have been consistently applied
by the Company and are consistent with those followed in the previous
year.
Accounting policies not specifically referred to otherwise are
consistently applied by the company and are in consonance with
generally accepted accounting principles recognized in the form of
accounting standards.
II. USE OF ESTIMATES
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make judgments, estimates and
assumptions that affect the application of accounting policies and
reported amounts of assets and liabilities (including contingent
liabilities) and the reported income and expenses during the year.
Examples of such estimates include transfer pricing related
adjustments, provision against litigations and regulatory actions,
provision of future obligation under employee benefit plans, useful
lives of fixed assets, provision in respect of non-current investments,
provision for sales return, recoverability of tax assets, provision for
customer claims, provision for inventory obsolescence and impairment of
assets. The Management believes that the estimates used in preparation
of the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known/materialize. Any revision to accounting estimates
is recognized prospectively in the current and future periods.
III. REVENUE RECOGNITION
Revenue is recognized to the extent it can be reliably measured and
probable that economic benefits will flow to the company. Revenues
considered receivable are accounted for on accrual basis except for the
Disposal of Sundry items & Scraps etc., which are accounted for on cash
basis.
SALES
Revenue from sale of goods is recognized when the significant risk and
reward of ownership of the goods are transferred to the customer and
are recognized net of claims. Sales are stated net of sales returns and
indirect taxes.
INTEREST
Income is recognized on a time proportion basis taking into account
outstanding amount and the applicable rate of interest.
DIVIDEND
Income from dividend is recognized when the right to dividend has been
established.
OTHER OPERATING INCOME
Other operating revenue is recognized on accrual basis.
IV. CURRENT/ NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Revised Schedule III to the Companies Act,
2013.
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a. it is expected to be realised in, or is intended for sale or
consumption in, the Company's normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within 12 months after the reporting
date; or
d. it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria:
a. it is expected to be settled in the Company's normal operating
cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within 12 months after the reporting date;
or
d. the Company does not have an unconditional right to defer
settlement of the liability for at least 12 months after the reporting
date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current
financial assets/ liabilities respectively. All other assets/
liabilities are classified as non-current.
Operating cycle
Based on the nature of products/activities of the Company and the
normal time between acquisition of assets and their realization in cash
or cash equivalents, the company has determined its operating cycle as
12 months for the purpose of classification of its assets and
liabilities as current and non-current.
V. Fixed Assets (Tangible/Intangible)
Fixed assets are stated at cost of acquisition or construction
[including directly attributable expenditure on making the asset ready
for its intended use, other incidental expenses and interest on
borrowings attributable to acquisition of qualifying fixed assets upto
the date the asset is ready for its intended use, less accumulated
depreciation, impairment losses and specific grants received, if any]
except assets revalued on 31st March, 1999. In respect of projects
involving institutional loans, related pre-operative and
pre-operational expenses like up-front fees and appraisal fees have
been capitalized. Interest paid on loans borrowed from institutions,
which are attributable to construction or acquisition of fixed assets
for the period up to the completion of construction or acquisition of
fixed assets, has also been capitalized.
Subsequent expenditures related to an item of fixed asset are added to
its book value only if such expenditure results in an increase in the
future benefits from such asset beyond its previously assessed standard
of performance. Losses arising from the retirement of or gains or
losses arising from disposal of fixed assets are recognized in the
Statement of Profit and Loss.
BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized as part
of the cost of such assets. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
REVALUTION OF FIXED ASSETS
All fixed assets of the company were revalued on 31st March 1999 as per
the valuation report of Chartered Engineers / approved valuers.
As and when the fixed assets are revalued, the provision for
depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional
diminution in the value.
DEPRECIATION
Depreciation on fixed assets has been provided on the straight line
method as per the useful life prescribed in Schedule II to the
Companies Act, 2013.
VI. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 ' 'Impairment of Assets" (AS-28)
issued by the Institute of Chartered Accountants of India, impairment
is ascertained at each balance sheet date in respect of each of the
company's fixed assets. An impairment loss will be recognized whenever
the carrying amount of an asset exceeds its estimated recoverable
amount. The recoverable amount is the greater of the asset's net
selling price and value in use. In assessing the value in use, the
estimated future cash flows are discounted to their present value based
on an appropriate discount factor.
VII. INVESTMENTS
i. Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as Non-current investments.
ii. Non-current investments are carried at cost. However, provision
for diminution in value is made to recognize a decline, other than
temporary, in the value of investments, on an individual basis.
iii. Current Investments are carried at the lower of cost and fair
value determined on a category-wise basis.
VIII. VALUATION OF INVENTORIES
The inventories are recorded as under:
i. Raw Materials Components, At Cost or net realizable value
Stores & Spare parts & whichever is less.
Packing Material.
ii. Finished Goods. At Cost or net realizable value
whichever is less.
iii. Goods in Progress. At Estimated Cost.
iv. By-Products. At Estimated Cost
Cost of inventories is computed on a weighted average basis.
IX. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances on hand, cash balance
with bank, and liquid investments with original maturities, at the date
of purchase/ investment, of three months or less.
X. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time the transactions are affected. In case of
forward contracts, if any, the difference between the forward rates and
the exchange rates on the transaction dates is recognized as income or
expense over the tenure of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward
exchange contracts are recorded as income/ expense for the period.
At the year end, monetary items demonetized in foreign currency are
reported using the closing rates of exchange. Exchange rate
differences arising on realization / payment of foreign exchange are
accounted in the year of realisation / payment.
XI. EMPLOYEE / RETIREMENT BENEFITS
i. Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit & Loss of the year in
which the related services are rendered.
ii. Contributions to Defined Contribution Plans (Employees Provident
Fund and Employees State Insurance Scheme) are made in accordance with
the respective statutes, to the extent applicable, and are recognized
as an expense in the period in which the employees have rendered
service.
iii. Liability for defined benefit plans is recognized based on
provisions of relevant applicable statutes and company policies in the
year in which the employees have rendered service.
XII. ACCOUNTING FOR TAXES ON INCOME
i. Current tax is the amount of Income Tax payable on taxable income
determined as per the provisions of Income Tax Act, 1961.
Minimum Alternate Tax (MAT) credit is accounted for by the company in
the case where MAT payable is higher than tax payable under normal
provisions of the Income Tax Act, 1961. Such credit availed is adjusted
in future years where the tax under normal provisions is higher than
MAT payable to the extent of such difference.
ii. The difference that results between the profit offered for income
tax and the profit as per the financial statements is identified and,
thereafter, a deferred tax asset or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being considered.
iii. The carrying amount of the deferred tax assets are reviewed at
each balance sheet date. The company writes down the carrying amount of
a deferred tax asset to the extent that it is no longer reasonable
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such written down carrying amount is
reversed to the extent that it becomes reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will
be available.
XIII. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND CONTINGENT
ASSETS
Provisions are recognized in terms of Accounting Standard-29
"Provisions, Contingent Liabilities and Contingent Assets" (AS-29)
issued by the Institute of Chartered Accountants of India, when there
is a present legal or statutory obligation as a result of past events,
where it is probable that there will be outflow of resources to settle
the obligation and a reliable estimate of the amount of the obligation
can be made.
Contingent liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis
and only those having a largely probable outflow of resources are
provided for.
Contingent assets are not recognised in the financial statements.
XIV. LEASE AGREEMENTS
The Company's significant leasing arrangements are in respect of
operating leases for premises (office, stores, go downs etc.) These
leasing arrangements which are not non-cancellable range between 6
months and 1 year generally or longer and are usually renewable by
mutual consent on mutually agreeable terms. The aggregate lease rentals
payable are charged as Rent/ Storage Charges in the Statement of Profit
and Loss on a straight line basis over the lease term.
XIV. EARNING PER SHARE
In determining the earning per share, the company considers the net
profit after tax. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during
the year.
XV. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
The books of accounts and other records have been designed to
facilitate compliance with the relevant provisions of the Companies
Act, 1956 on one and and meet the internal requirements of information
and systems for planning, review and internal control on the other.
XVI. SEGMENT REPORTING
The accounting policies adopted for segment reporting are in conformity
with the accounting policies adopted by the Company. Further,
a. Inter segment revenue has been accounted for based on the
transaction price agreed to between segments which is primarily market
based
b. Revenue and expenses have been identified to segments on the basis
of their relationship to the operating activities of the segment.
Mar 31, 2014
I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
i. The financial statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting and on
the accounting principles of going concern except as stated hereinafter
and except where impairment of assets is made and revaluation of assets
is carried out, in accordance with all the applicable accounting
principles generally accepted in India and comply with the mandatory
applicable accounting standards notified under Sub-Section (3C) of
Section 211 of the Companies Act, 1956 and other relevant provisions of
the Companies Act, 1956 and the rules, regulations and guidelines made
there under.
ii. Accounting policies not specifically referred to otherwise are
consistently applied by the company and are in consonance with
generally accepted accounting principles recognized in the form of
accounting standards.
iii. The Board of Directors of the company approved the change in the
financial year of the Company from October- September to April- March
effective April 01 2014. In view of this, the current financial year is
for a period of 18 months i.e. 01 October 2012 to 31 March, 2014.
II. USE OF ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
judgments, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income
and expenses and disclosure of contingent liabilities on the date of
the financial statements. Examples of such estimates include transfer
pricing related adjustments, provision against litigations and
regulatory actions, provisions of future obligation under employee
benefit plans, useful lives of fixed assets, provision in respect of
non-current investments, provision for sales return, recoverability of
tax assets, provision for customer claims, provision for inventory
obsolescence including expiry of drugs and impairment of assets. Actual
results could differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Any revision to
accounting estimates is recognized prospectively in the current and
future periods.
III. REVENUE RECOGNITION
Revenues recognized to the extent it can be reliably measured and is
probable that economic benefits will flow to the company. Revenues are
considered receivable are accounted for on accrual basis except for the
Disposal of Sundry items & Scraps etc., which are accounted for on cash
basis:
SALES
Revenue from sales of goods is recognized when the significant risk and
reward of ownership of the goods are transferred to the customer. Sales
are stated net of sales returns and indirect taxes.
INTEREST
Income is recognized on a time proportion basis taking into account
outstanding amount and the applicable rate of interest.
DIVIDEND
Income from dividend is recognized when the right to dividend has been
established.
OTHER OPERATING INCOME
Other operating revenue is recognized on accrual basis.
IV. CURRENT/ NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a. it is expected to be realised in, or is intended for sale or
consumption in, the Company''s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within 12 months after the reporting
date; or
d. it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria:
a. it is expected to be settled in the Company''s normal operating
cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within 12 months after the reporting date;
or
d. the Company does not have an unconditional right to defer
settlement of the liability for at least 12 months after the reporting
date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current
financial assets/ liabilities respectively. All other assets/
liabilities are classified as non-current.
Operating cycle
Operating cycle is the time between the acquisition of assets for
processing and their realisation in cash or cash equivalents.
V. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction
[including attributable interest and financial costs till such assets
are ready for intended use, less accumulated depreciation, impairment
losses and specific grants received, if any] except assets revalued on
31st March, 1999. In respect of projects involving institutional loans,
related pre-operative and pre-operational expenses like up-front fees
and appraisal fees have been capitalized. Interest paid on loans
borrowed from institutions, which are attributable to construction or
acquisition of fixed assets for the period up to the completion of
construction or acquisition of fixed assets, has also been capitalized.
TANGIBLE FIXED ASSETS AND DEPRECIATION
Tangible fixed assets are stated at the cost of acquisition or
construction, less accumulated depreciation and impairment losses, if
any. The cost of an item of tangible fixed asset comprises its purchase
price, including import duties and other non-refundable taxes or levies
and any attributable costs of bringing the asset to its working
condition for its intended use.
INTANGIBLE ASSETS AND AMORTIZATION
Intangible fixed assets comprise brands, trademarks and computer
software, which are stated at cost less accumulated amortization and
impairment losses, if any. The cost of an item of intangible fixed
asset comprises its purchase price, including import duties and other
non-refundable taxes or levies and any attributable costs of bringing
the asset to its working condition for its intended use. Any trade
discount and rebates are deducted in arriving at the purchase price.
BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of
asset.
REVALUTION OF FIXED ASSETS
All fixed assets of the company were revalued on 31st March 1999 as per
the valuation report of Chartered Engineers / approved valuers.
As and when the fixed assets are revalued, the provision for
depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional
diminution in the value.
DEPRECIATION
Depreciation is provided, pro-rata, on Straight Line Method by applying
rates and in the manner as given in Schedule XIV of the Companies Act,
1956.
As per the Accounting Standard-6 "Depreciation Accounting" (AS-6)
issued by the Institute of Chartered Accountants of India, depreciation
on revalued assets has been adjusted with the revaluation reserve
amount.
Depreciation on Power plant was claimed as usual as per "As-6"issued by
ICAI.
VI. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 "Impairment of Assets" (AS-28) issued
by the Institute of Chartered Accountants of India, impairment is
ascertained at each balance sheet date in respect of each of the
company''s fixed assets. An impairment loss will be recognized whenever
the carrying amount of an asset exceeds its estimated recoverable
amount. The recoverable amount is the greater of the asset''s net
selling price and value in use. In assessing the value in use, the
estimated future cash flows are discounted to their present value based
on an appropriate discount factor.
VII. INVESTMENTS
i. Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long term investments.
ii. Long term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline, other than
temporary, in the value of investments, on an individual basis.
iv. Current Investments are carried at the lower of cost and fair
value determined on a category-wise basis.
IX. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances on hand, cash balance
with bank, and highly liquid investments with original maturities, at
the date of purchase/ investment, of three months or less.
X. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time the transactions are affected. In case
of forward contracts, if any, the difference between the forward rates
and the exchange rates on the transaction dates is recognized as income
or expense over the tenure of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward
contracts are recorded as income / expense for the period.
At the year end, monetary items demonetized in foreign currency are
reported using the closing rates of exchange. Exchange rate differences
arising on realization / payment of foreign exchange are accounted in
the year of realisation / payment.
XI. EMPLOYEE / RETIREMENT BENEFITS
i. Contribution to defined provident fund schemes are being charged to
Revenue on accrual basis.
ii. The company is regularly making contributions to provident fund
schemes, to the extent as applicable to the company.
iii. Gratuity is being provided as required as per actuarial
valuation.
XII. TAXATION
i. Income tax is computed in accordance with Accounting Standard-22
"Accounting for Taxes on Income" (AS-22) issued by the Institute of
Chartered Accountants of India.
ii. Provision is made for income tax annually based on the tax
liability computed after considering tax allowances and exemptions.
iii. The difference that results between the profit offered for income
tax and the profit as per the financial statements is identified and,
thereafter, a deferred tax asset or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being considered.
iv. The carrying amount of the deferred tax assets are reviewed at
each balance sheet date. The company writes down the carrying amount of
a deferred tax asset to the extent that it is no longer reasonable
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such written down carrying amount is
reversed to the extent that it becomes reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will
be available.
XIII. PROVISIONS
A provision is recognised if, as a result of a past event, the Company
has a present obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are recognised at the best estimate
of the expenditure required to settle the present obligation at the
Balance Sheet date. The provisions are measured on an undiscounted
basis.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the
year in which it is incurred. Expenditure which results in creation of
assets is included in fixed assets and depreciation is provided thereon
on such assets, as applicable.
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND
CONTINGENT ASSETS
Provisions are recognized in terms of Accounting Standard-29
"Provisions, Contingent Liabilities and Contingent Assets" (AS-29)
issued by the Institute of Chartered Accountants of India, when there
is a present legal or statutory obligation as a result of past events,
where it is probable that there will be outflow of resources to settle
the obligation and a reliable estimate of the amount of the obligation
can be made.
Contingent liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the
control of the company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made. Obligations are assessed on
an ongoing basis and only those having a largely probable outflow of
resources are provided for.
Contingent assets are not recombined in the financial statements.
XVI. LEASE AGREEMENTS
The Company''s significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns etc.) These
leasing arrangements which are not non-cancellable range between 6
months and 1 year generally or longer and are usually renewable by
mutual consent on mutually agreeable terms. The aggregate lease rentals
payable are charged as Rent/ Storage Charges in the statement of Profit
and Loss.
XVI. EARNING PER SHARE
In determining the earning per share, the company considers the net
profit after tax. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during
the period.
XVIII. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
The books of accounts and other records have been designed to
facilitate compliance with the relevant provisions of the Companies
Act, 1956 on one hand and meet the internal requirements of information
and systems for planning, review and internal control on the other.
Sep 30, 2012
I. BASIS OF PREPARATION:
i. The financial statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting and on
the accounting principles of going concern except as stated hereinafter
and except where impairment of assets is made and revaluation of assets
is carried out, in accordance with all the applicable accounting
principles generally accepted in India and comply with the mandatory
applicable accounting standards notified under Sub-Section (3C) of
Section 211 of the Companies Act, 1956 and other relevant provisions of
the Companies Act, 1956 and the rules, regulations and guidelines made
thereunder.
ii. Accounting policies not specifically referred to otherwise are
consistently applied by the company and are in consonance with
generally accepted accounting principles recognized in the form of
accounting standards.
II. REVENUE RECOGNITION
Expenses and Income considered payable and receivable respectively are
accounted for on accrual basis except for the following items, which
are accounted for on cash basis:
Disposal of Sundry items & Scraps etc.
III. SALES
i Sales are net of returns and shortage allowed to customers.
ii. Consignment Sales are recognized on confirmation from consignees.
IV. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction
[including attributable interest and financial costs till such assets
are ready for intended use, less accumulated depreciation, impairment
losses and specific grants received, if any] except assets revalued on
31st March, 1999. In respect of projects involving institutional loans,
related pre-operative and pre-operational expenses like up-front fees
and appraisal fees have been capitalized. Interest paid on loans
borrowed from institutions, which are attributable to construction or
acquisition of fixed assets for the period up to the completion of
construction or acquisition of fixed assets, has also been capitalized.
V. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of
asset.
VI. REVALUTION OF FIXED ASSETS
All fixed assets of the company were revalued on 31" March 1999 as
per the valuation report of Chartered Engineers / approved valuers.
As and when the fixed assets are revalued, the provision for
depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional
diminution in the value.
VII. DEPRECIATION
i. Depreciation is provided, pro-rata, on Straight Line Method by
applying rates and in the manner as given in Schedule XIV of the
Companies Act, 1956.
ii. As per the Accounting Standard-6 "Depreciation Accounting"
(AS-6) issued by the Institute of Chartered Accountants of India,
depreciation on revalued assets has been adjusted with the revaluation
reserve amount.
iii. Depreciation on Power plant was claimed as usual as per
"AS-6"issued by ICAI. As power plant was in operation during the year
resulting 20684000 units of electricity, Out of which 30% units were
sold and 70% units were captively consumed by the company.
VIII. IMPAIRMENT OFASSETS
As per the Accounting Standard-28 "Impairment of Assets" (AS-28)
issued by the Institute of Chartered Accountants of India, impairment
is ascertained at each balance sheet date in respect of each of the
company''s fixed assets.An impairment loss will be recognized whenever
the carrying amount of an asset exceeds its estimated recoverable
amount.The recoverable amount is the greater of the asset''s net selling
price and value in use. In assessing the value in use, the estimated
future cash flows are discounted to their present value based on an
appropriate discount factor.
IX. VALUATION OF INVENTORIES
i. Raw Materials Components, Stores & Spare parts & Packing Material.
At Cost or net realisable value, whichever is less.
ii. Finished Goods. At Cost or net realisable value, whichever is
less.
iii. Goods in Progress. At Estimated Cost.
iv. By-Products. At Estimated Cost
X. INVESTMENTS
i. Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments.All other
investments are classified as long term investments.
ii. Long term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline, other than
temporary, in the value of investments, on an individual basis.
iii. Current Investments are carried at the lower of cost and fair
value determined on a category-wise basis.
XI. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time the transactions are affected. In case
of forward contracts, if any, the difference between the forward rates
and the exchange rates on the transaction dates is recognized as income
or expense over the tenure of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward
exchange contracts are recorded as income / expense for the period.
At the year end, monetary items demonetized in foreign currency are
reported using the closing rates of exchange. Exchange rate differences
arising on realization / payment of foreign exchange are accounted in
the year of realisation / payment.
XII. RETIREMENT BENEFITS
I. Contribution to defined provident fund schemes are being charged to
Revenue on accrual basis.
ii. The company is regularly making contributions to provident fund
schemes, to the extent as applicable to the company.
iv. Gratuity is being provided as required as per actuarial valuation.
XIII. TAXATION
i. Income tax is computed in accordance with Accounting Standard-22
'' ''Accounting for Taxes on Income" (AS-22) issued by the
Institute of Chartered Accountants of India.
ii. Provision is made for income tax annually based on the tax
liability computed after considering tax allowances and exemptions.
iii. The difference that results between the profit offered for income
tax and the profit as per the financial statements is identified and,
thereafter, a deferred tax asset or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being considered.
iv) The carrying amount of the deferred tax assets are reviewed at each
balance sheet date. The company writes down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonable
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such written down carrying amount is
reversed to the extent that it becomes reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will
be available.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the
year in which it is incurred. Expenditure which results in creation of
assets is included in fixed assets and depreciation is provided thereon
on such assets, as applicable.
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND CONTINGENT
ASSETS
Provisions are recognized in terms of Accounting Standard-29 ''
''Provisions, Contingent Liabilities and ContingentAssets" (AS-29)
issued by the Institute of Chartered Accountants of India, when there
is a present legal or statutory obligation as a result of past events,
where it is probable that there will be outflow of resources to settle
the obligation and a reliable estimate of the amount of the obligation
can be made.
Contingent liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the
control of the company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable
estimate of the obligation can not be made. Obligations are assessed on
an ongoing basis and only those having a largely probable outflow of
resources are provided for.
Contingent assets are not recombined in the financial statements.
XVI. LEASE AGREEMENTS
The Company''s significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns etc.) These
leasing arrangements which are not non-cancellable range between 6
months and I year generally or longer and are usually renewable by
mutual consent on mutually agreeable terms. The aggregate lease rentals
payable are charged as Rent/ Storage Charges in the Profit and Loss
Account.
XVII. EARNING PER SHARE
In determining the earning per share, the company considers the net
profit after tax. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during
the year.
XVIII. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
The books of accounts and other records have been designed to
facilitate compliance with the relevant provisions of the Companies
Act, I956 on one hand and meet the internal requirements of information
and systems for planning, review and internal control on the other.
Sep 30, 2010
I. The financial statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting and on
the accounting principles of going concern except as stated hereinafter
and except where impairment of assets is made and revaluation of assets
is carried out, in accordance with all the applicable accounting
principles generally accepted in Indiaand comply with the mandatory
applicable accounting standards notified under Sub-Section (3C) of
Section 211 of the Companies Act, 1956 and other relevant provisions of
the Companies Act, 1956 and the rules, regulations and guidelines made
thereunder.
ii. Accounting policies not specifically referred to otherwise are
consistently applied by the company and are in consonance with
generally accepted accounting principles recognised in the form of
accounting standards.
II. REVENUE RECOGNITION
Expenses and Income considered payable and receivable respectively are
accounted for on accrual basis except forthe following items, which are
accounted for on cash basis: Disposal of Sundry items & Scraps etc.
III. SALES
i Sales are net of returns and shortage allowed to customers.
II. Consignment Sales are recognised on confirmation from consignees.
IV. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction
[including attributable interest and financial costs till such assets
are ready for intended use, less accumulated depreciation, impairment
losses and specific grants received, if any] except assets revalued on
31st March, 1999. In respect of projects involving institutional loans,
related pre-operative and pre-operational expenses like up-front fees
and appraisal fees have been capitalized. Interest paid on loans
borrowed from institutions, which are attributable to construction or
acquisition of fixed assets for the period up to the completion of
construction or acquisition of fixed assets, has also been capitalised.
V. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of
asset.
VI. REVALUTION OF FIXED ASSETS
All fixed assets of the company were revalued on 31st March 1999 as per
the valuation report of Chartered Engineers/approved valuers.
As and when the fixed assets are revalued, the provision for
depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional
diminution in the value.
VII. DEPRECIATION
i. Depreciation is provided, pro-rata, on Straight Line Method by
applying rates and in the manner as given in Schedule XIV of the
Companies Act, 1956.
ii. As per the Accounting Standard-6 "Depreciation Accounting" (AS-6)
issued by the Institute of Chartered Accountants of India, depreciation
on revalued assets has been adjusted with the revaluation reserve
amount.
VI. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 "Impairment of Assets" (AS-28) issued
by the Institute of Chartered Accountants of India, impairment is
ascertained at each balance sheet date in respect of each of the
companys fixed assets. An impairment loss will be recognized whenever
the carrying amount of an asset exceeds its estimated recoverable
amount. The recoverable amount is the greater of the assets net selling
price and value in use. In assessing the value in use, the estimated
future cash flows are discounted to their present value based on an
appropriate discount factor.
IX. VALUATION OF INVENTORIES
i. Raw Materials Components, Stores & At moving average Cost
Spare parts & Packing Material.
ii. Finished Goods. At cost or net realisable
value, whichever is less.
iii. Goods in Progress. At Estimated Cost.
iv. By-Products. At Estimated Cost
X. INVESTMENTS
i. Investments that are readily reliasable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long term investments.
ii. Long term investments are carried at cost. However, provision for
diminution in value is made to recognise a decline, other than
temporary, in the value of investments, on an individual basis.
iii. Current lnvestments are carried at the lower of cost and fair
value determined on a category-wise basis.
XI. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time the transactions are effected. In case of
forward contracts, if any, the difference between the forward rates and
the exchange rates on the transaction dates is recognised as income or
expense over the lives of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward
exchange contracts are recorded as income / expense for the period.
At the year end, monetary items demonetised in foreign currency are
reported using the closing rates of exchange. Exchange rate
differences arising on realisation / payment of foreign exchange are
accounted in the year of realisation/payment.
XII. RETIREMENT BENEFITS
i. Contribution to defined provident fund schemes are being charged to
Revenue on accrual basis.
ii. The company is regularly making contributions to provident fund
schemes, to the extent as applicable to the company.
iii. Gratuity is being provided as required, as per actuarial
valuation.
XIII. TAXATION
i. Income tax is computed in accordance with Accounting Standard-22
"Accounting for Taxes on Income"
(AS-22) issued by the Institute of Chartered Accountants of India.
ii. Provision is made for income tax annually based on the tax
liability computed after considering tax allowances and exemptions.
iii. The difference that results between the profit offered for income
tax and the profit as per the financial statements is identified and,
thereafter, a deferred tax asset or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being considered.
iv. The carrying amount of the deferred tax assets are reviewed at
each balance sheet date. The company writes down the carrying amount of
a deferred tax asset to the extent that it is no longer reasonable
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realised. Any such written down carrying amount is
reversed to the extent that it becomes reasonably certain orvirtually
certain, as the case may be, that sufficient future taxable income will
be available.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the
year in which it is incurred. Expenditure which results in creation of
assets is included in fixed assets and depreciation is provided thereon
on such assets, as applicable.
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND CONTINGENT
ASSETS
Provisions are recognized in terms of Accounting Standard-29
"Provisions, Contingent Liabilities and Contingent Assets" (AS-29)
issued by the Institute of Chartered Accountants of India, when there
is a present legal or statutory obligation as a result of past events,
where it is probable that there will be outflow of resources to settle
the obligation and a reliable estimate of the amount of the obligation
can be made.
Contingent liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation can not be made. Obligations are assessed on an ongoing
basis and only those having a largely probable outflow of resources are
provided for.
Contingent assets are not recombined in the financial statements.
XVI. LEASE AGREEMENTS
The Companys significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns etc.) These
leasing arrangements which are not non-cancellable range between 6
months and 1 year generally, or longer and are usually renewable by
mutual consent on mutually agreeable terms. The aggregate lease rentals
payable are charged as Rent/ Storage Charges in the Profit and Loss
Account.
XVII. EARNING PER SHARE
In determining the earning per share, the company considers the net
profit after tax. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during
the year.
XVIII. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
The books of accounts and other records have been designed to
facilitate compliance with the relevant provisions of the Companies
Act, 1956 on one hand and meet the internal requirements of information
and systems for planning, review and internal control on the other.
Sep 30, 2009
BASIS OF PREPARATION:
I. The financial statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting and on
the accounting principles of going concern except as stated hereinafter
and except where impairment of assets is made and revaluation of assets
is carried out, in accordance with all the applicable accounting
principles generally accepted in India and comply with the mandatory
applicable accounting standards notified under Sub-Section (3C) of
Section 211 of the Companies Act, 1956 and other relevant provisions of
the Companies Act, 1956 and the rules, regulations and guidelines made
thereunder.
ii. Accounting policies not specifically referred to otherwise are
consistently applied by the company and are in consonance with
generally accepted accounting principles recognized in the form of
accounting standards.
II. REVENUE RECOGNITION
Expenses and Income considered payable and receivable respectively are
accounted for on accrual basis except for the following items, which
are accounted for on cash basis: Disposal of Sundry items & Scraps etc.
III. SALES
i . Sales are net of returns and shortage allowed to customers.
ii. Consignment Sales are recognized on confirmation from consignees.
IV. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction
[including attributable interest and financial costs till such assets
are ready for intended use, less accumulated depreciation, impairment
losses and specific grants received, if any] except assets revalued on
31st March, 1999.In respect of projects involving institutional loans,
related pre- operative and pre-operational expenses like up-front fees
and appraisal fees have been capitalized. Interest paid on loans
borrowed from institutions, which are attributable to construction or
acquisition of fixed assets for the period up to the completion of
construction or acquisition of fixed assets, has also been capitalized.
V. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of
asset.
VI. REVALUATION OF FIXED ASSETS
All fixed assets of the company were revalued on 31st March 1999 as per
the valuation report of Chartered Engineers / approved valuers.
As and when the fixed assets are revalued, the provision for
depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional
diminution in the value.
VII. DEPRECIATION
i. Depreciation is provided, pro-rata, on Straight Line Method by
applying rates and in the manner as given in Schedule XIV of the
Companies Act, 1956.
ii. As per the Accounting Standard-6 ÃDepreciation Accountingà (AS-6)
issued by the Institute of Chartered Accountants of India, depreciation
on revalued assets has been adjusted with the revaluation reserve
amount.
VIII. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 ÃImpairment of Assetsà (AS-28) issued
by the Institute of Chartered Accountants of India, impairment is
ascertained at each balance sheet date in respect of each of the
companys fixed assets. An impairment loss will be recognized whenever
the carrying amount of an asset exceeds its estimated recoverable
amount. The recoverable amount is the greater of the assets net
selling price and value in use. In assessing the value in use, the
estimated future cash flows are discounted to their present value based
on an appropriate discount factor.
X. INVESTMENTS
(i) Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long term investments.
(ii) Long term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline, other than
temporary, in the value of investments, on an individual basis.
(iii) Current Assets are carried at the lower of cost and fair value
determined on a category-wise basis.
XI. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of
exchange in force at the time the transactions are effected. In case of
forward contracts, if any, the difference between the forward rates and
the exchange rates on the transaction dates is recognized as income or
expense over the lives of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward
exchange contracts are recorded as income/ expense for the period.
At the year end, monetary items demonetized in foreign currency are
reported using the closing rates of exchange. Exchange rate
differences arising on realization / payment of foreign exchange are
accounted in the year of realization / payment.
XII. RETIREMENT BENEFITS
i. Contribution to defined provident fund schemes are being charged to
revenue on accrual basis.
ii. The company is regularly making contributions to provident fund
schemes, to the extent as applicable to the company.
iii. Gratuity is being provided as required.
XIII. TAXATION
(i) Income tax is computed in accordance with Accounting Standard-22
ÃAccounting for Taxes on Incomeà (AS-22) issued by the Institute of
Chartered Accountants of India.
(ii) Provision is made for income tax annually based on the tax
liability computed after considering tax allowances and exemptions.
(iii) The difference that results between the profit offered for income
tax and the profit as per the financial statements is identified and,
thereafter, a deferred tax asset or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being considered.
(iv) The carrying amount of the deferred tax asset are reviewed at each
balance sheet date. The company writes down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonable
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such written down carrying amount is
reversed to the extent that it becomes reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will
be available.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the
year in which it is incurred. Expenditure which results in creation of
assets is included in fixed assets and depreciation is provided thereon
on such assets, as applicable.
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT
ASSETS
Provisions are recognized in terms of Accounting Standard-29
ÃProvisions, Contingent Liabilities and Contingent Assetsà (AS-29)
issued by the Institute of Chartered Accountants of India, when there
is a present legal or statutory obligation as a result of past events,
where it is probable that there will be outflow of resources to settle
the obligation and a reliable estimate of the amount of the obligation
can be made.
Contingent liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation can not be made. Obligations are assessed on an ongoing
basis and only those having a largely probable outflow of resources are
provided for. Contingent assets are not recombined in the financial
statements.
XVI LEASE AGREEMENTS
The CompanyÃs significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns etc.) These
leasing arrangements which are not non-cancellable range between 6
months and 1year generally, or longer and are usually renewable by
mutual consent on mutually agreeable terms. The aggregate lease rentals
payable are charged as Rent/Storage Charges in the Profit and Loss
Account.
XVII. EARNING PER SHARE
In determining the earning per share, the company considers the net
profit after tax The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during
the year.
XVIII. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
The books of accounts and other records have been designed to
facilitate compliance with the relevant provisions of the Companies
Act, 1956 on one hand and meet the internal requirements of information
and systems for planning, review and internal control on the other.
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