Mar 31, 2017
a. Basis of Preparation of Financial Statements:
i) The Financial Statements have been prepared to comply in all material respects with the notified accounting standards by the Companies Accounting Standards Rules, 2006 specified in 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 financial statements have been prepared under the historical cost convention, on an accrual basis of accounting. The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Schedule III to the Companies Act, 2013.
ii) Change in Accounting Policy: The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year.
b. Use of Estimates:
The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the period. The estimates and assumptions used in the financial statements are based upon the managementâs evaluation of the relevant facts and circumstances as on the date of financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates.
c. Revenue Recognition:
i) Revenue from sale of goods is recognized net of returns on transfer of significant risk and rewards in respect of ownership to the buyer which is generally on dispatch of goods. Local sales includes excise duty.
ii) Revenue in respect of insurance/other claims, commission, etc. are recognized only when it is reasonably certain that ultimate collection will be made.
iii) Interest income is recognized on time proportion basis.
iv) Dividend income is accounted when the right to receive the same is established.
d. Fixed Assets:
i) Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized till the assets are ready for use and include financing costs relating to any borrowing attributable to the acquisition of qualifying fixed assets. Capital work in progress and intangible assets in progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.
ii) Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.
e. Depreciation / Amortization / Impairment:
i) Depreciation on Fixed Assets is provided on the useful lives of the assets in the manner prescribed in Schedule II of Companies Act, 2013 on Straight Line Method at Dombivli and Head Office and on Written Down Value Method at Ahmedabad. Depreciation for asset purchased/sold during a period is proportionately charged. Intangible Asset are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.
ii) Impairment of assets is ascertained at each balance sheet date in respect of the Companyâs Fixed Assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
iii) Fixed Assets individually costing up to Rs. 5,000/- are fully depreciated in the year of purchase.
f. Leased Asset :- Operating Leases:
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease payments under operating leases are recognized as an expenses with reference to lease terms and other considerations.
g. Foreign Currency Transactions:
Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.
h. Investments:
Long term investment are stated at cost. Diminution in the value of investment is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.
i. Inventories:
j. Employee Benefits:
i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.
ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them
iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.
iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.
k. Taxation:
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.
Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
l. Cash Flow Statement:
Cash flows are reported using indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.
m. Cash and Cash Equivalent:
Cash and cash equivalents in the Balance Sheet comprise cash at bank, cheques on hand, cash in hand and short term investments with an original maturity of three months or less.
n. Earnings Per Share:
The earnings considered in ascertaining the Companyâs earnings per share comprise the net profit after tax and include the post-tax effect of any extra-ordinary items. The number of shares used in computing basic earnings per share, is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the shares considered for deriving basic earnings per share and also number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.
o. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.
p. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when the Company has a present obligation as a result of past event and its probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. The provisions (excluding retirement benefits) 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 current best estimates. Contingent liabilities are not recognized in the financial statements but disclosed in Notes to Accounts. A contingent asset is neither recognized nor disclosed in the financial statements.
Mar 31, 2016
a. Basis of Preparation of Financial Statements:
i) The Financial Statements have been prepared to comply in all material respects with the notified accounting standards by the Companies Accounting Standards Rules, 2006 specified in 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 financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.
The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Schedule III to the Companies Act, 2013.
ii) "Change in Accounting Policy: The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year."
b. Use of Estimates:
The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the period. The estimates and assumptions used in the financial statements are based upon the management''s evaluation of the relevant facts and circumstances as on the date of financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates
c. Revenue Recognition:
i) Revenue from sale of goods is recognized net of returns on transfer of significant risk and rewards in respect of ownership to the buyer which is generally on dispatch of goods. Local sales includes excise duty.
ii) Revenue in respect of insurance/other claims, commission, etc. are recognized only when it is reasonably certain that ultimate collection will be made.
iii) Interest income is recognized on time proportion basis.
iv) Dividend income is accounted when the right to receive the same is established.
d. Fixed Assets:
Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized till the assets are ready for use and include financing costs relating to any borrowing attributable to the acquisition of qualifying fixed assets. Capital work in progress and Intangible assets in progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.
Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.
e. Depreciation / Amortization / Impairment:
Depreciation on Fixed Assets is provided on the useful lives of the assets in the manner prescribed in Schedule II of Companies Act, 2013. Depreciation for asset purchased/sold during a period is proportionately charged. Intangible Asset are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the company for its use.
Impairment of assets is ascertained at each balance sheet date in respect of the Company''s Fixed assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
f. Leased Asset :- Operating Leases:
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease payments under operating leases are recognized as an expenses with reference to lease terms and other considerations.
g. Foreign Currency Transactions:
Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.
h. Investments:
Long term Investment are stated at cost. Diminution in the value of Investment is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.
i. Inventories:
Item of inventories are valued on the basis given below:
Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First-Out
-method.
Work- in- process and Finished Goods : At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realizable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.
Stores & Spares : Stores and spare parts are valued at purchase cost.
j. Employee Benefits:
i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.
ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them
iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.
iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.
k. Taxation:
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.
Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods
l. Cash Flow Statement:
Cash flows are reported using indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.
m. Cash and Cash Equivalent:
Cash and cash equivalents in the Balance Sheet comprise cash at bank, cheques on hand, cash in hand and short term investments with an original maturity of three months or less.
n. Earnings Per Share:
The earnings considered in ascertaining the Company''s earnings per share comprise the net profit after tax and include the post-tax effect of any extra-ordinary items. The number of shares used in computing basic earnings per share, is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the shares considered for deriving basic earnings per share and also number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.
o. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.
p. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when the Company has a present obligation as a result of past event and its probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. The provisions (excluding retirement benefits) 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 current best estimates. Contingent liabilities are not recognized in the financial statements but disclosed in Notes to Accounts.
Mar 31, 2015
A. 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 ("the 2013 Act") / Companies Act, 1956 ("the
1956 Act"), as applicable. The financial statements have been
prepared on accrual basis under the historical cost convention. The
accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year
except for change in the accounting policy for depreciation as more
fully described in point no. 2 (e) below.
b. Use of Estimates:
The preparation of the financial statements in conformity with GAAP
requires the management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of financial
statements and reported amounts of Income and Expenses during the
period. The estimates and assumptions used in the financial statements
are based upon the management's evaluation of the relevant facts and
circumstances as on the date of financial statements. Accounting
estimates could change from period to period. Actual results could
differ from those estimates
c. Revenue Recognition:
i) Revenue from sale of goods is recognised net of returns on transfer
of significant risk and rewards in respect of ownership to the buyer
which is generally on dispatch of goods. Local sales includes excise
duty.
ii) Revenue in respect of insurance/other claims, commission, etc. are
recognised only when it is reasonably certain that ultimate collection
will be made.
iii) Interest income is recognised on time proportion basis.
iv) Dividend income is accounted when the right to receive the same is
established.
d. Fixed Assets:
Tangible assets are stated at cost, less accumulated depreciation and
impairment, if any. Direct costs are capitalized till the assets are
ready for use and include financing costs relating to any borrowing
attributable to the acquisition of qualifying fixed assets. Capital
work in progress and Intangible assets in progress comprises the cost
of fixed assets that are not yet ready for their intended use at the
reporting date.
Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment.
e. Depreciation / Amortization / Impairment:
Depreciation on Fixed Assets is provided on the useful lives of the
assets in the manner prescribed in Schedule II of Companies Act, 2013.
Depreciation for asset purchased/sold during a period is
proportionately charged. Intangible Asset are amortized over their
respective individual estimated useful lives on a straight-line basis,
commencing from the date the asset is available to the Company for its
use.
I mpairment of assets is ascertained at each balance sheet date in
respect of the Company's Fixed assets. An impairment loss is
recognised whenever carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use, the estimated future cash flows are discounted to
their present value based on an appropriate discount factor.
f. Leased Asset :- Operating Leases:
Lease arrangements where the risks and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognized as
operating lease. Lease payments under operating leases are recognized
as an expenses with reference to lease terms and other considerations.
g. Foreign Currency Transactions:
Transactions denominated in foreign currency settled / negotiated
during a month are recorded at exchange rate on the date of settlement
/ negotiation. Foreign currency transaction remaining not settled /
negotiated at the end of each month are converted into rupees at the
month end rates. All gains or losses on foreign exchange transaction
are recognised in the Statement of Profit and Loss.
h. Investments:
Long term Investment are stated at cost. Diminution in the value of
Investment is provided for by reducing the value of investments and
charging the same to Statement of Profit & Loss.
i. Inventories:
Item of inventories are valued on the basis given below:
Raw Materials and Packing Materials
At cost net of CENVAT computed on First-In-First-Out -method.
Work- in- process and Finished Goods
At cost including material cost net of CENVAT, labour cost and
production overheads incurred till the stage of completion of
production for Work-In-Process and the same or net realisable value
whichever is lower in case of Finished Goods. Excise duty is considered
as cost of finished goods wherever applicable
Stores & Spares
Stores and spare parts are valued at purchase cost.
j. Employee Benefits:
i) Contribution to Provident Fund and Family Pension Fund are charged
to Statement of Profit & Loss.
ii) Gratuity is charged to revenue on actuarial valuation by Life
Insurance Corporation of India under the Employees Group Gratuity
policy with them
iii) Leave encashable on retirement has been provided for on the basis
of actuarial valuation.
iv) Leave Travel Assistance (LTA) Liability has been accounted based on
actual accumulated obligation.
k. Taxation:
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the applicable tax rates and the
provisions of the Income Tax Act, 1961 and other applicable tax laws.
Deferred Tax is recognised on timing differences being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
l. Cash Flow Statement:
Cash flows are reported using indirect method, whereby net profits
after tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
m. Cash and Cash Equivalent:
Cash and cash equivalents in the Balance Sheet comprise cash at bank,
cheques on hand, cash in hand and short term investments with an
original maturity of three months or less.
n. Earnings Per Share:
The earnings considered in ascertaining the Company's earnings per
share comprise the net profit after tax and include the post-tax effect
of any extra-ordinary items. The number of shares used in computing
basic earnings per share, is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted earnings per share comprises the shares considered for deriving
basic earnings per share and also number of equity shares that could
have been issued on the conversion of all dilutive potential equity
shares.
o. Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as a part of such assets. All other
borrowing costs are charged to revenue in the year in which they are
incurred.
p. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when the Company has a present obligation as
a result of past event and its probable that an outflow of resources
will be required to settle the obligation, in respect of which reliable
estimate can be made. The provisions (excluding retirement benefits)
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 current best estimates. Contingent liabilities are not
recognized in the financial statements but disclosed in Notes to
Accounts. A contingent asset is neither recognized nor disclosed in the
financial statements.
Note: i) Employer's contribution includes payments made by the
Company directly to its past employees.
ii) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
iii) The Company's Gratuity fund is managed by Life Insurance
Corporation of India. The plan assets under the fund are deposited
under approved securities.
Note : In accordance with the provisions of Schedule II to the
Companies Act, 2013, effective from 1st April,2014, the Company has
revised the useful lives of its fixed assets. As a consequence of such
revision the charge for depreciation for the year is higher than the
previously applied rates by Rs. 52,16,109/-. For assets that have
completed the useful lives as a consequence of the aforesaid revision,
the carrying value as on 1st April,2014 of Rs. 5,78,545/- has been
charged to the opening balance of the surplus in Statement of Profit &
Loss net of deferred tax effect thereon of Rs. 2,00,000/-.
Mar 31, 2013
A) Accounting Convention
The financial statements have been prepared to comply in all material
respects with the notified accounting standards by the Companies
(Accounting Standards) Rules 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention, on an accrual basis
of accounting.
The classification of assets and liabilities of the Company is done
into current and non-current based on the operating cycle of the
business of the Company. The operating cycle of the business of the
Company is less than twelve months and therefore all current and
non-current classifications are done based on the status of
reliability and expected settlement of the respective asset and
liability within a period of twelve months from the reporting date as
required by Revised Schedule VI to the Companies Act, 1956
The accounting policies adopted in the preparation of financial
statements are consistent with those used in the previous year.
b) Use of Estimates
The preparation of the financial statements in conformity with the
Generally Accepted Accounting Principles applicable in India and the
provisions of the Companies Act,1956 requires that the Management makes
estimates and assumptions that affect the reported amounts of the
assets and liabilities, disclosure of the contingent liabilities as at
the date of the Financial Statements and reported amount of the revenue
and expenses during the reported year. Actual results could differ from
those Estimates.
c) Inflation
Assets and Liabilities are shown at historical cost and no adjustments
are made for changes in purchasing power of money.
d) Fixed Assets
i) Fixed Assets are recorded at cost of acquisition or construction
less CENVAT / Service Tax Credit availed.
ii) Intangible assets are recorded at cost of acquisition.
e) Depreciation, Amortization and Impairment
Depreciation on fixed assets is charged on straight line method at
Dombivli and Head Office and on Written Down Value method at Ahmadabad
in accordance with the rates and in the manner specified in Schedule
XIV to the Companies Act,1956.
Intangible assets are amortized over the economic useful life estimated
by the Management.
Impairment of assets is ascertained at each balance sheet date in
respect of the Company''s Fixed assets. An impairment loss is
recognized whenever carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use, the estimated future cash flows are discounted to
their present value based on an appropriate discount factor.
f) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as a part of such assets. All other
borrowing costs are charged to revenue in the year in which they are
incurred.
g) Investments
Long term Investments are stated at cost. Diminution in the value of
Investments is provided for by reducing the value of investments and
charging the same to Statement of Profit & Loss.
h) Inventories
Item of inventories are valued on the basis given below:
Raw Materials and Packing
Materials : At cost net of CENVAT computed on
First-In-First-Out method.
Work- in- process and
Finished Goods : At cost including material cost net
of CENVAT, labour cost and production
overheads incurred till the stage of
completion of production for Work-In-
Process and the same or net realizable
value whichever is lower in case of
Finished Goods. Excise duty is
considered as cost of finished goods
wherever applicable.
Stores & Spares : Stores and spare parts are
valued at purchase cost.
i) Cash and Cash Equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at
bank,cheques on hand, cash in hand and short term investments with an
original maturity of three months or less.
j) CENVAT Credit
CENVAT Credit utilized during the year is accounted for in excise duty
expenses account and unutilized CENVAT balance at the year end is
considered as advance excise duty.
k) Service Tax Credit
Service Tax credit utilized during the year towards excise liability is
accounted in Excise duty and unutilized Service Tax credit at the year
end is considered as advance excise duty.
l) Sales
Local Sales include Excise duty.
m) Revenue Recognition
Revenue in respect of insurance / other claims, interest, commission
etc. are recognized only when it is reasonably certain that the
ultimate collection will be made.
n) Contingent Liabilities
These are disclosed by way of notes to the accounts . Provision is made
in respect of those liabilities which are likely to materialize after
the year end, till the finalization of accounts and have material
effect on the position stated in the Balance Sheet.
o) Retirement Benefits
i) Contribution to Provident Fund and Family Pension Fund are charged
to Statement of Profit & Loss.
ii) Gratuity is charged to revenue on actuarial valuation by Life
Insurance Corporation of India under the Employees Group Gratuity
policy with them
iii) Leave encashable on retirement has been provided for on the basis
of actuarial valuation.
iv) Leave Travel Assistance (LTA) Liability has been accounted based on
actual accumulated obligation.
p) Research & Development
Revenue expenditure on research & development is charged to Statement
of Profit & Loss in the year in which it is incurred. Capital
expenditure on Research & Development is considered as addition to
fixed assets.
q)Foreign Exchange Transactions
Transactions denominated in foreign currency settled / negotiated
during a month are recorded at exchange rate on the date of settlement
/ negotiation. Foreign currency transaction remaining not settled /
negotiated at the end of each month are converted into rupees at the
month end rates. All gains or losses on foreign exchange transaction
are recognized in the Statement of Profit and Loss.
r) Taxation
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax
Act,1961. Deferred Tax is recognized on timing differences being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
Mar 31, 2012
A) Accounting convention
The financial statements have been prepared to comply in all material
respects with the notified accounting standards by the Companies
(Accounting Standards) Rules 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention, on an accrual basis
of accounting.
The classification of assets and liabilities of the Company is done
into current and non-current based on the operating cycle of the
business of the Company. The operating cycle of the business of the
Company is less than twelve months and therefore all current and
non-current classifications are done based on the status of
reliability and expected settlement of the respective asset and
liability within a period of twelve months from the reporting date as
required by Revised Schedule VI to the Companies Act, 1956.
The accounting policies adopted in the preparation of financial
statements are consistent with those used in the previous year, except
for the change in accounting policy explained herein below.
The Company was presenting local sales inclusive of sales tax and
excise duty, the same is now presented inclusive of excise duty only.
The impact of this change on the profit/loss for the year is Rs. Nil.
b) Use of Estimates
The preparation of the financial statements in conformity with the
Generally Accepted Accounting Principles applicable in India and the
provisions of the Companies Act,1956 requires that the Management makes
estimates and assumptions that affect the reported amounts of the
assets and liabilities, disclosure of the contingent liabilities as at
the date of the Financial Statements and reported amount of the revenue
and expenses during the reported year. Actual results could differ from
those Estimates.
c) Inflation
Assets and Liabilities are shown at historical cost and no adjustments
are made for changes in purchasing power of money.
d) Fixed Assets
i) Fixed Assets are recorded at cost of acquisition or construction
less CENVAT / Service Tax Credit availed.
ii) Intangible assets are recorded at cost of Acquisition.
e) Depreciation, Amortization and Impairment
Depreciation on fixed assets is charged on Straight Line method at
Dombivli and Head Office and on Written Down Value method at Ahmadabad
in accordance with the rates and in the manner specified in Schedule
XIV to the Companies Act,1956.
Intangible assets are amortized over the economic useful life estimated
by the Management. Impairment of assets is ascertained at each balance
sheet date in respect of the Company's Fixed Assets. An impairment
loss is recognized whenever carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the net
selling price and value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
f) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as a part of such assets. All other
borrowing costs are charged to revenue in the year in which they are
incurred.
g) Investments
Long term Investments are stated at cost. Diminution in the value of
Investments is provided for by reducing the value of investments and
charging the same to Statement of Profit & Loss.
h) Inventories
Item of inventories are valued on the basis given below:
Raw Materials and Packing
Materials : At cost net of CENVAT computed on
First-In-First- Out method.
Work- in- process and
Finished Goods : At cost including material cost
net of CENVAT, labour cost and
production overheads incurred till the
stage of completion of production for
Work-In-Process and the same or
net realizable value whichever is lower
in case of Finished Goods.
Excise duty is considered as cost
of finished goods wherever applicable.
Stores & Spares : Stores and spare parts are valued at
purchase cost.
i) Cash and Cash Equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at
bank,cheques on hand, cash in hand and short term investments with an
original maturity of three months or less.
j) CENVAT Credit
CENVAT Credit utilized during the year is accounted for in excise duty
expenses account and unutilized CENVAT balance at the year end is
considered as advance excise duty,
k) Service Tax Credit
Service Tax credit utilized during the year towards excise liability is
accounted in Excise duty and unutilized Service Tax credit at the year
end is considered as advance excise duty.
l) Sales
Local Sales include Excise duty.
m) Revenue Recognition
Revenue in respect of insurance / other claims, interest, commission
etc. are recognized only when it is reasonably certain that the
ultimate collection will be made.
n) Contingent Liabilities
These are disclosed by way of notes to the accounts . Provision is made
in respect of those liabilities which are likely to materialize after
the year end, till the finalization of accounts and have material
effect on the position stated in the Balance Sheet.
o) Retirement Benefits
i) Contribution to Provident Fund and Family Pension Fund are charged
to Statement of Profit & Loss.
ii) Gratuity is charged to revenue on actuarial valuation by Life
Insurance Corporation of India under the Employees Group Gratuity
policy with them
iii) Leave encashable on retirement has been provided for on the basis
of actuarial valuation.
iv) Leave Travel Assistance (LTA) Liability has been accounted based on
actual accumulated obligation.
p) Research & Development
Revenue expenditure on research & development is charged to Statement
of Profit & Loss in the year in which it is incurred. Capital
expenditure on Research & Development is considered as addition to
fixed assets.
q) Foreign Exchange Transactions
Transactions denominated in foreign currency settled / negotiated
during a month are recorded at exchange rate on the date of settlement
/ negotiation. Foreign currency transaction remaining not settled /
negotiated at the end of each month are converted into rupees at the
month end rates. All gains or losses on foreign exchange transaction
are recognized in the Statement of Profit and Loss.
r) Taxation
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax
Act,1961. Deferred Tax is recognized on timing differences being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
Mar 31, 2011
A) System of Accounting
The Company follows accrual system of accounting for all items of
revenue and costs.
b) Use of Estimates
The preparation of the financial statements in conformity with the
Generally Accepted Accounting Principles applicable in India and the
provisions of the Companies Act, 1956 requires that the Management
makes estimates and assumptions that affect the reported amounts of the
assets and liabilities, disclosure of the contingent liabilities as at
the date of the Financial Statements and reported amount of the revenue
and expenses during the reported year. Actual results could defer from
those Estimates.
c) Inflation
Assets and Liabilities are shown at historical cost and no adjustments
are made for changes in purchasing power of money.
d) Fixed Assets
i) Fixed Assets are recorded at cost of acquisition or construction
less CENVAT/ Service Tax Credit availed. ii) Intangible Assets are
recorded at cost of acquisition.
e) Depreciation, Amortisation and Impairment
Depreciation on fixed assets is charged on straight line method at
Dombivli and Head Office and on Written Down Value method at Ahmedabad
in accordance with the rates and in the manner specified in Schedule
XIV to the Companies Act, 1956.
Intangible assets are amortised over the economic useful life estimated
by the Management.
Impairment of assets is ascertained at each balance sheet date in
respect of the Companys fixed assets. An impairment loss is recognised
whenever carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the net selling price and
value in use, the estimated future cash flows are discounted to their
present value based on an appropriate discount factor.
f) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalised as a part of such assets. All other
borrowing costs are charged to revenue in the year in which they are
incurred.
g) Investments
Long term Investments are stated at cost. Diminution in the value of
Investments is provided for by reducing the value of investments and
charging the same to Profit & Loss Account.
h) Inventories
Item of inventories are valued on the basis given below:
Raw Materials and Packing Materials : At cost net of CENVAT computed on
First-In-First-Out method.
Work- in- process and Finished Goods: At cost including material cost
net of CENVAT, labour cost and
production overheads incurred
till the stage of completion of
production for Work-In-Process
and the same or net realisable
value whichever is lower in
case of Finished Goods.
Excise duty is considered
as cost of finished goods
wherever applicable.
Stores & Spares: Stores and spare parts are
valued at purchase cost.
i) CENVAT Credit
CENVAT Credit utilised during the year is accounted for in excise duty
expenses account and unutilised CENVAT balance at the year end is
considered as advance excise duty.
j) Service Tax Credit
Service Tax credit utilised during the year towards excise liability is
accounted in Excise duty and unutilised Service Tax credit at the year
end is considered as advance excise duty.
k) Sales
Local Sales include Excise duty & Sales tax. Export sales include
exchange difference on realisation / negotiation.
l) Revenue Recognition
Revenue in respect of insurance/ other claims, interest, commission
etc. are recognised only when it is reasonably certain that the
ultimate collection will be made.
m) Contingent Liabilities
These are disclosed by way of notes to the accounts. Provision is made
in respect of those liabilities which are likely to materialise after
the year end, till the finalisation of accounts and have material
effect on the position stated in the Balance Sheet.
n) Retirement Benefits
i) Contribution to Provident Fund and Family Pension Fund are charged
to Profit & Loss Account.
ii) Gratuity is charged to revenue on actuarial valuation by Life
Insurance Corporation of India under the Employees Group Gratuity
policy with them
iii) Leave encashable on retirement has been provided for on the basis
of actuarial valuation.
iv) Leave Travel Assistance (LTA) Liability has been accounted based on
actual accumulated obligation.
o) Research & Development
Revenue expenditure on research & development is charged to Profit &
Loss Account in the year in which it is incurred. Capital expenditure
on Research & Development is considered as addition to fixed assets.
p) Foreign Exchange Transactions
Transactions denominated in foreign currency settled / negotiated
during a month are recorded at exchange rate on the date of
settlement/negotiation. Foreign currency transaction remaining not
settled/negotiated at the end of each month are converted into rupees
at the month end rates. All gains or losses on foreign exchange
transaction are recognised in the Profit and Loss Account.
q) Taxation
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax
Act,1961.
Deferred Tax is recognised on timing differences being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Mar 31, 2010
(a) System of Accounting
The Company follows accrual system of accounting for all items of
revenue and costs.
(b) Use of Estimates
The preparation of the financial statements in conformity with the
Generally Accepted Accounting Principles applicable in India and the
provisions of the Companies Act,1956 requires that the Management makes
estimates and assumptions that affect the reported amounts of the
assets and liabilities, disclosure of the contingent liabilities as at
the date of the Financial Statements and reported amount of the revenue
and expenses during the reported year. Actual results could defer from
those Estimates.
(c) Inflation
Assets and Liabilities are shown at historical cost and no adjustments
are made for changes in purchasing power of money.
(d) Fixed Assets
i) Fixed Assets are recorded at cost of acquisition or construction
less CENVAT/Service Tax Credit availed. ii) Intangible Assets are
recorded at cost of acquisition.
(e) Depreciation, Amortisation and Impairment
Depreciation on fixed assets is charged on straight line method in
accordance with the rates and in the manner specified in Schedule XIV
to the Companies Act, 1956.
Intangible assets are amortised over the economic useful life estimated
by the Management.
Impairment of assets is ascertained at each balance sheet date in
respect of the Companys Fixed assets. An impairment loss is recognised
whenever carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the net selling price and
value in use, the estimated future cash flows are discounted to their
present value based on an appropriate discount factor.
(f) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalised as a part of such assets. All other
borrowing costs are charged to revenue in the year in which they are
incurred.
(g) Investments
Long term Investments are stated at cost. Diminution in the value of
Investments is provided for by reducing the value of investments and
charging the same to Profit & Loss Account.
(g) Inventories
Item of inventories are valued on the basis given below:
Raw Materials and Packing Materials: At cost net of CENVAT computed on
First-In-First-Out -method.
Work- in- process and Finished Goods: At cost including material cost
net of CENVAT, labour cost and
production overheads incurred till the stage of completion of
production for Work-In-Process and the same or net realisable value
whichever is lower in case of Finished Goods. Excise duty is considered
as cost of finished goods wherever applicable.
Stores & Spares: Stores and spare parts are valued at purchase cost.
(i) CENVAT Credit
CENVAT Credit utilised during the year is accounted for in excise duty
expenses account and unutilised CENVAT balance at the year end is
considered as advance excise duty.
(j) Service Tax Credit
Service Tax credit utilised during the year towards excise liability is
accounted in Excise duty and unutilised Service Tax credit at the year
end is considered as advance excise duty.
(k) Sales
Local Sales include Excise Duty & Sales Tax. Export sales include
exchange difference on realisation / negotiation.
(l) Revenue Recognition
Revenue in respect of insurance/other claims, interest, commission
etc., are recognised only when it is reasonably certain that the
ultimate collection will be made.
(m) Contingent Liabilities
These are disclosed by way of notes to the accounts. Provision is made
in respect of those liabilities which are likely to materialise after
the year end, till the finalisation of accounts and have material
effect on the position stated in the Balance Sheet.
(n) Retirement Benefits
i) Contribution to Provident Fund and Family Pension Fund are charged
to Profit & Loss Account.
ii) Gratuity is charged to revenue on actuarial valuation by Life
Insurance Corporation of India under the Employees Group Gratuity
policy with them.
iii) Leave encashable on retirement has been provided for on the basis
of actuarial valuation.
iv) Leave Travel Assistance (LTA) Liability has been accounted based on
actual accumulated obligation.
(o) Research & Development
Revenue expenditure on research & development is charged to Profit &
Loss Account in the year in which it is incurred. Capital expenditure
on Research & Development is considered as addition to fixed assets.
(p) Foreign Exchange Transactions
Transactions denominated in foreign currency settled/negotiated during
a month are recorded at exchange rate on the date of
settlement/negotiation. Foreign currency transaction remaining not
settled/negotiated at the end of each month are converted into rupees
at the month end rates. All gains or losses on foreign exchange
transaction are recognised in the Profit and Loss Account.
(q) Taxation
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of Income Tax
Act,1961.
Deferred Tax is recognised on timing differences being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
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