Mar 31, 2015
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT
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 ("the Act"), as applicable. The financial
statements have been prepared on accrual basis under historical cost
convention and going concern basis. The accounting policies adopted in
the preparation of the financial statements are consistent with those
followed in the previous year.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with Indian GAAP
requires management to make estimates and assumptions that affect the
reported accounts of assets and liabilities (including contingent
liabilities) on the date of the financial statements and reported
income and expenses during the year. The Management believes that the
estimates used in the 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 recognised in the periods in which the results are
known/materialise.
3. INVENTORIES
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of Raw Material,
Packing material, Chemicals, Stores and Consumables, Finished goods,
trading and other products are ascertained on FIFO basis.
4. CASH FLOW STATEMENT
(a) Cash & Cash Equivalents (for the purpose of cash flow statement)
Cash Comprises cash on hand and demand deposits with banks. Cash
Equivalents are short-term balances (with original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
(b) Cash Flow Statement
Cash Flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments.
5. PRIOR PERIOD AND EXCEPTIONAL ITEMS
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period items". Exceptional items
are general non-recurring items of income and expense within profit or
loss from ordinary activities, which are of such size, nature or
incidence that their disclosure is relevant to explain the performance
of the company for the year.
6. FIXED ASSETS/INTANGIBLE ASSETS & DEPRECIATION
i. Fixed assets are stated at their original cost of acquisition
including respective taxes duties freight and other incidental expenses
related to acquisition and installation of the respective assets.
Addition in Fixed Assets is stated at cost net of CENVAT credit (where
applicable).
ii. Intangible Assets are recognized as per the principle laid down in
Accounting Standard 26 - Intangible Assets, as specified in the
Companies (Accounting Standard) Rules, 2006 (as amended).
iii. Depreciation on tangible fixed assets has been provided on
Straight Line Method as per the useful life prescribed in the Schedule
II to the Companies Act, 2013. However the depreciation on addition
made during the year have been provided on pro-rata basis from the date
of their purchase/use. Intangible assets are amortized over its
expected useful life on straight line method. The estimated useful life
of the intangible assets and amortization period are reviewed at the
end of each financial year and the amortization period is revised to
reflect the changed patter, if any.
7. REVENUE RECOGNITION
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Dividend income is recognized
when the right to receive is established. Interest income is recognized
on time proportion basis taking into account the amount outstanding and
the rate applicable.
8. FOREIGN CURRENCYTRANSACTIONS Initial Recognition
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
Conversion
Monetary items denominated in foreign currencies at the year-end are
restated at the year-end rates. Non monetary foreign currency items are
stated at cost.
Exchange Differences
Any income or expense arising on account of exchange difference either
on settlement or on translation is recognized in the Profit & Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
9. INVESTMENTS
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. Long term
investments are stated at cost. Provision for diminution in the value
of long-term investments is made only if such a decline is other than
temporary in the opinion of the management. Current investments are
carried at the lower of cost and quoted/fair value, computed category
wise.
10. EMPLOYEE BENEFITS
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss account of the year in which
the related service is rendered. Post employment and other long term
employee benefits are recognized as an expense in the Profit and Loss
account for the year in which the employee has rendered services. The
expense is recognized at the present value of the amounts payable
determined using actuarial valuation techniques. Actuarial gains and
losses in respect of post employment and other longterm benefits are
charged to Profit and Loss account.
11. BORROWING COST
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to the Statement of Profit &
Loss.
12. SEGMENT REPORTING
The company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive management
in deciding howto allocate resources and in accessing performance.
13. RELATED PARTY TRANSACTIONS
Disclosure of transactions with related parties, as required by
Accounting Standard 18 - "Related Party Disclosure" as specified in
Companies (Accounting Standards) Rules, 2006 (as amended), have been
set out in a separate note forming part of the financial statements.
Related party as defined under clause 3 of the Accounting Standard 18
have been identified on the basis of representation made by key
managerial personnel and information available with the company.
14. EARNING PERSHARE
The Company reports basic and diluted Earnings Per Share (EPS) in
accordance with the Accounting Standard 20 as specified in the
Companies (Accounting Standard) Rules, 2006 (as amended). The basic EPS
has been computed by dividing the income available to Equity
Shareholders by the weighted average number of Equity Shares
outstanding during the accounting year. The diluted E.P.S. has been
computed using the weight average number of equity shares and dilutive
potential equity shares outstanding at the end of the year.
15. CENVAT CREDIT
Cenvat benefit is accounted for by reducing the purchase cost of
material / fixed assets. Cenvat Credit utilized during the year is
accounted in excise duty and utilized. Cenvat balance at the year end
is considered as advance excise duty.
16. PROVISION FOR BAD AND DOUBTFUL DEBTS
Provision is made in accounts for Bad Doubtful Debts/Advances which in
the opinion of the management are considered irrecoverable.
17. TAXES ON INCOME Deferred Taxation
In accordance with the Accounting Standard 22 - Accounting for Taxes on
Income, as specified in the Companies (Accounting Standard) Rules, 2006
(as amended), the deferred tax for timing difference between the book
and the income tax profit for the year is accounted for by using the
tax rate and laws that has been enacted and substantively enacted as of
the balance sheet date.
Deferred tax assets arising from timing difference are recognized to
the extent there is a virtual certainty that the assets can be realized
in future.
Net outstanding balance in deferred tax account is recognized as
deferred tax liability/assets. The deferred tax account is used solely
for reversing timing difference as and when crystallized.
Current taxation
Provision for taxation has been made in accordance with the income tax
laws prevailing for the relevant assessment year.
18. IMPAIRMENTOF FIXED ASSETS
The carrying amount of assets, other than inventories, is reviewed at
each balance sheet date to determine whether there is any indication of
impairment. If any such indication exists, the asset recoverable amount
is estimated.
The impairment loss is recognized whenever the carrying cost amount of
an asset or its cash generation unit exceed its recoverable amount. The
recoverable amount is the greater of the asset net selling price and
value in the use which is determined based on the estimated future cash
flow discounted to the present value all impairment losses are
recognize in the profit and loss account.
An impairment loss is reversed if there has been a change in the
estimates used to determined the recoverable amount and is recognized
in the Statement of profit and loss.
19. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurements
are recognized when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
20. 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.
Mar 31, 2014
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT
Financial Statements have been prepared under historical cost
convention on accrual basis, in accordance with the generally accepted
accounting principles in India and the provisions'' of the Companies
Act, 1956. Ail Income and Expenditure having a material bearing on the
Financial Statement are recognized on accrual basis.
2. USE OF ESTIMATES
The preparation of Financial Statement in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported accounts of Assets
and liabilities and disclosure of contingent liabilities on the date of
the financial statements. Actual results could differ from those
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
3. INVENTORY:
Items of inventories are measured at lower of cost and net realizable
value after providing for obsoience, if any. Cost of inventories
comprises of cost: of purchase, cost of conversion and other costs
including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost of Raw Material,
Packing material, Chemicals, Stores and Consumables, Finished goods,
trading and other products are ascertained on weighted average/FIFO
basis.
4. CASH FLOW STATEMENT
(a) Cash & Cash Equivalents (for the purpose of cash flow statement)
Cash Comprises cash on hand and demand deposits with banks. Cash
Equivalents are short-term balances (with original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible Into known amounts of cash and which are
subject to insignificant risk of changes in value. .
f
(b) Cash Flow Statement
Cash Flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accrua Is of
past or future cash receipts or payments.
5. PRIOR PERIOD AND EXCEPTIONAL ITEMS:
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period items". Exceptiona! items
are general non recurring items of income and expense within profit or
loss from ordinary activities, which are of such size, nature or
incidence that their disciosure is relevant to explain the performance
of the company for the year.
6. FIXED ASSETS/INTANGIBLE ASSETS & DEPRECIATION
i. Fixed assets are stated at their original cost of acquisition
including respective taxes duties freight and other incidental expenses
related to acquisition and installation of the respective assets. The
Company is providing depreciation on its assets at the rate prescribed
as per Schedule XIV of the Companies Act, 1956 at Straight Line Method.
However the depreciation on addition made during the year have been
provided on pro-rata basisfrom the date of their purchase/use.
ii. Addition in Fixed Assets is stated at cost net of CENVAT credit
(where applicable).
iii. Intangible Assets are recognized as per the principle laid down in
Accounting Standard 26- Intangible Assets, as specified in the
Companies (Accounting Standard) Rules, 2006 (as amended).
7. REVENUE RECOGNITION
Revenue is recognized only when it can be reliably measured a nd it is
reasonable to expect ultimate collection. Dividend income is recognized
when the right to receive is established. Interest income is recognized
on time proportion basis taking into account the amount outstanding and
the rate applicable.
8. FOREIGN CURRENCYTRANSACTIONS
Initial Recognition: Transactions denominated in foreign currencies are
recorded at the exchange rates prevailing on the date of the
transaction or that approximates the actual rate at the date of the
transaction.
Conversion : Monetary items denominated in foreign currencies at the
year-end are restated at the year-end rates. Non monetary foreign
currency items are stated at cost.
Exchange Differences: Any income or expense arising on account of
exchange difference either on settlement or on translation is
recognized in the Profit & Loss account except in case of longterm
liabilities, where they relate to acquisition of fixed assets, in which
case they are adjusted to the carrying cost of such assets.
9. INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. Ail other
investments are classified as long term investments. Long term
investments are stated at cost. Provision for diminution in the value
of long-term investments is made only if such a decline is other than
temporary in the opinion of the management. Current investments are
carried at the lower of costand quoted/fair value, computed category
wise.
10. EMPLOYEE BENEFITS
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss account of the year in which
the related service is rendered. Post employment and other longterm
employee benefits are recognized as an expense in the Profit and Loss
account for the year in which the employee has rendered services. The
expense is recognized at the present value of the amounts payable
determined using actuarial valuation techniques. Actuarial gains and
losses in respect of post employment and other long term benefits are
charged to Profit and Loss account.
11. BORROWING COST
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to statement of Profit & Loss.
12. RELATED PARTY TRANSACTIONS:
Disclosure of transactions with related parties, as required by
Accounting Standard 18 - "Related Party Disclosure" as specified in
Companies (Accounting Standards) Rules, 2006 (as amended), have been
set out in a separate note forming part of the financial statements.
Related party as defined under clause 3 of the Accounting Standard 18
have been identified on the basis of representation made by key
managerial personnel and information available with the company.
13. EARNING PER SHARE
The Company reports basic and diluted Earnings Per Share (EPS) in
accordance with the Accounting Standard 20 as specified in the
Companies (Accounting Standard) Rules, 2006 (as amended). The basic EPS
has been computed by dividing the income available to Equity
Shareholders by the weighted average number of Equity Shares
outstanding during the accounting year. The diluted E.P.S. has been
computed using the height average number of equity shares and dilutive
potential equity shares outstanding at the end of the year.
14. CENVATCREDIT
Cenvat benefit is accounted for by reducing the purchase cost of
material / fixed assets. Cenvat Credit utilized during the year is
accounted in excise duty and utilized. Cenvat bala nee at the year end
is considered as advance excise duty.
15. PROVISION FOR BAD AND DOUBTFUL DEBTS
Provision is made in accounts for Bad Doubtful Debts/Advances which in
the opinion of the management are considered irrecoverabie.
16. TAXES ON INCOME:
Deferred Taxation: In accordance with the Accounting Standard
22-Accounting forTaxes on Income, as specified in the Companies
(Accounting Standard) Rules, 2006 (as amended), the deferred tax for
timing difference between the book and the income tax profit for the
year is accounted for by using the tax rate and laws that has been
enacted and substantively enacted as of the balance sheet date.
Deferred tax assets arising from timing difference are recognized to
the extent thefe is a virtual certainty that the assets can be realized
in future.
Net outstanding balance in deferred tax account is recognized as
deferred tax liability/assets. The deferred tax account is used solely
for reversing timing difference as and when crystallized.
Current taxation : Provision for taxation has been made in accordance
with the income tax laws prevailing for the re leva nt assessment year.
17. IMPAIRMENT OF FIXED ASSETS:
The carrying amount of assets, other than inventories, is reviewed at
each balancefSheet date to determine whether there is any indication of
impairment. If any such indication exist, the asset recoverable amount
is estimated.
The impairment loss is recognized whenever the carrying cost amount of
an asset or its cash generation unit exceed its recoverable amount. The
recoverable amount is the greater of the asset net selling price and
value in the use which is determined based on the estimated future cash
flow discounted to the present value all impairment losses are
recognize in the profit and loss account.
An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount and its recognized
in the profit and loss account.
18. PROVISIONS, CONTINGENTLIABILITIES AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation in measurements
are recognized when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
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