Mar 31, 2015
1. a) Basis of Financial Statements:
The financial statements have been prepared to comply in all material
respects with the notified Accounting Standards by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 2013. The financial statements have
been prepared in accordance with the generally accepted Accounting
Principles in India under the historical cost convention and on accrual
basis, except in case of assets for which provision for impairment is
made and revaluation is carried out. The accounting policies are
consistent with those used in the previous year.
b) Change in accounting policy: Presentation and disclosure of
financial statements:
During the year ended 31st March, 2015, the relevant provisions of the
Companies Act 2013, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements. The company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
c) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the results of operations during the
reporting period. Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from these estimates.
2. a) Fixed Assets
i) Fixed assets are stated at cost Net of CENVAT wherever applicable,
less accumulated depreciation, amortization and impairment losses, if
any. Cost comprises the purchase price and other attributable costs to
bring the asset to its working condition for its intended use.
ii) Direct overhead expenditure incurred on projects under
implementation is treated as unallocated capital expenditure pending
allocation to the assets and are included under Capital
work-in-progress.
iii) Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
b) Depreciation
i) Depreciation on the Fixed Assets of the Company is provided on the
basis of the useful lives of the fixed assets on straight line method
in accordance with Schedule II of the Companies Act, 2013.
ii) Fixed Assets costing rupees five thousand or less are fully
depreciated in the year of acquisition.
3. 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 Non Current Investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value of each long term
investment is made to recognize a decline other than temporary in
nature.
4. Inventories
a). Raw materials are valued at cost on FIFO Basis, Stores and Spares
are valued at cost on weighted Average Basis.
b). Finished Goods are valued at lower of cost of production or
realizable Value and Work in Process is valued at cost of Production.
The cost of production includes value of material, stores, direct and
indirect expenses.
5. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically the following basis is adopted:
a). Sale of Goods:
Revenue is recognized when the significant risks and rewards of
ownership of goods have passed to the buyer, which generally coincides
with delivery. Sales are inclusive of excise duty and value added
tax/sales tax and is net of sales returns and discounts. Revenue from
export sales is recognized on the date of bill of lading.
b). Interest :
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable. c). Export Benefits:
Export Entitlements in the form of Duty Drawback and Focus Point
Schemes on accrual basis. d). Other Sundry incomes Insurance claims
are accounted for on realization.
6. Foreign Exchange Transactions:
a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
b) Monetary Items denominated in Foreign Currency not covered by
Forward Contracts and remaining unsettled at the end of the year are
translated at year end rates.
c) Monetary Items denominated in Foreign Currency covered by Forward
Cover are recorded at the Forward Cover contract rate.
7. Employee Benefits :
a) Defined Contribution Plans
Contributions paid/payable to defined contribution plan comprises
provident fund and is charged on accrual basis to the Profit and Loss
Account Each Year.
b) Defined Benefit Plans
Gratuity for employees is covered under a scheme of Life Insurance
Corporation of India and contributions in respect of such scheme are
recognized in the Statement of Profit and Loss. The liability as at the
Balance Sheet date is provided for based on the actuarial valuation in
accordance with the requirements of revised Accounting Standard
(revised 2005) on " Employees Benefits" notified under Section 211 (3C)
of the Act ( 'revised AS 15') as at the end of the year.
c) Other Long term employee benefits
Other Long term employee benefits comprise of leave encashment which is
provided as and when it occurred.
8. Borrowing Costs :
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalized.
Other Borrowing costs are recognized as an expense in the year in which
they are incurred.
9. Contingent Liabilities :
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
10. Provision for Current and Deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between book and
taxable profit is accounted by using the tax rates and laws that are
enacted or substantially enacted as on the balance sheet date. The
deferred tax asset is recognized and carried forward only to the extent
that there is a reasonable certainty that the asset will be realized in
future.
11. Earnings Per Share
The earnings considered in ascertaining the Company's Earnings Per
Share (EPS) comprise of the net profit after tax less dividend
(including dividend distribution tax) on preference shares. The number
of shares used for computing the basic EPS is the weighted average
number of shares outstanding during the year.
12. Impairment :
a). The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on internal/
external factors. An impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the asset over its remaining useful life.
b). Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset are no longer exist or have decreased.
Mar 31, 2014
1 . a) Basis of Financial Statements:
The financial statements have been prepared to comply in all material
respects with the notified Accounting Standards by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared in accordance with the generally accepted Accounting
Principles in India under the historical cost convention and on accrual
basis, except in case of assets for which provision for impairment is
made and revaluation is carried out. The accounting policies are
consistent with those used in the previous year.
b) Change in accounting policy: Presentation and disclosure of
financial statements:
During the year ended 31st March, 2014, the revised Schedule VI
notified under the Companies Act 1956, has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
c ) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the results of operations during the
reporting period. Although these estimates are based upon management''s
best knowledge of current events and actions, actual results could
differ from these estimates.
2. a) Fixed Assets
i) Fixed assets are stated at cost Net of CENVAT wherever applicable,
less accumulated depreciation, amortisation and impairment losses, if
any. Cost comprises the purchase price and other attributable costs to
bring the asset to its working condition for its intended use.
ii) Direct overhead expenditure incurred on projects under
implementation is treated as unallocated capital expenditure pending
allocation to the assets and are included under Capital
work-in-progress.
iii) Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
b) Depreciation
i) Depreciation on the Fixed Assets of the Company is provided on
straight line method at the rates and in the manner specified in
Schedule XIV of the Companies Act, 1956.
ii) Fixed Assets costing rupees five thousand or less are fully
depreciated in the year of acquisition.
3. Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as Non Current Investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value of each long term
investment is made to recognise a decline other than temporary in
nature.
4. Inventories
a) Raw materials are valued at cost on FIFO Basis, Stores and Spares
are valued at cost on weighted Average Basis.
b) Finished Goods are valued at lower of cost of production or
realisable Value and Work in Process is valued at cost of Production.
The cost of production includes value of material, stores, direct and
indirect expenses.
5. Revenue Recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically the following basis is adopted:
a) Sale of Goods:
Revenue is recognised when the significant risks and rewards of
ownership of goods have passed to the buyer, which generally coincides
with delivery. Sales are inclusive of excise duty and value added
tax/sales tax and is net of sales returns and discounts. Revenue from
export sales is recognised on the date of bill of lading.
b) Interest :
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
c) Export Benefits:
Export Entitlements in the form of Duty Drawback and Duty Entitlement
Pass Book (DEPB) / Focus Point Schemes on accrual basis.
d) Other Sundry incomes
Insurance claims are accounted for on realisation.
6. Foreign Exchange Transactions:
a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
b) Monetary Items denominated in Foreign Currency not covered by
Forward Contracts and remaining unsettled at the end of the year are
translated at year end rates.
c) Monetary Items denominated in Foreign Currency covered by Forward
Cover are recorded at the Forward Cover contract rate.
7. Employee Benefits :
a) Defined Contribution Plans
Contributions paid/payable to defined contribution plan comprises
provident fund and is charged on accural basis to the Profit and Loss
Account Each Year.
b) Defined Benefit Plans
Gratuity for employees is covered under a scheme of Life Insurance
Corporation of India and contributions in respect of such scheme are
recognised in the Statement of Profit and Loss. The liability as at the
Balance Sheet date is provided for based on the actuarial valuation in
accordance with the requirements of revised Accounting Standard
(revised 2005) on " Employees Benefits" notified under Section 211 (3C)
of the Act ( ''revised AS 15'') as at the end of the year.
c) Other Long term employee benefits
Other Long term employee benefits comprise of leave encashment which is
provided for based on the actuarial valuation carried out in accordance
with revised AS15 at the end of the year
8. Borrowing Costs :
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalised.
Other Borrowing costs are recognised as an expense in the year in which
they are incurred.
9. Contingent Liabilities :
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
10. Provision for Current and Deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between book and
taxable profit is accounted by using the tax rates and laws that are
enacted or substantially enacted as on the balanace sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
future.
11. Earnings Per Share
The earnings considered in ascertaining the Company''s Earning Per Share
(EPS) comprise of the net profit after tax less dividend ( including
dividend distribution tax) on preference shares. The number of shares
used for computing the basic EPS is the weighted average number of
shares outstanding during the year.
12. Impairment :
a). The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on internal/
external factors. An impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the asset over its remaining useful life.
b). Reversal of impairment losses recognised in prior years is
recorded when there is an indication that the impairment losses
recognised for the asset are no longer exist or have decreased.
Mar 31, 2013
1. a) Basis of Financial Statements:
The financial statements have been prepared to comply in all material
respects with the notified Accounting Standards by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared in accordance with the generally accepted Accounting
Principles in India under the historical cost convention and on accrual
basis, except in case of assets for which provision for impairment is
made and revaluation is carried out. The accounting policies are
consistent with those used in the previous year.
b) Change in accounting policy: Presentation and disclosure of
financial statements:
During the year ended 31st March, 2013, the revised Schedule VI
notified under the Companies Act 1956, has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
c) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the results of operations during the
reporting period. Although these estimates are based upon management''s
best knowledge of current events and actions, actual results could
differ from these estimates.
2. a) Fixed Assets
i) Fixed assets are stated at cost Net of CENVAT wherever applicable,
less accumulated depreciation, amortisation and impairment losses, if
any. Cost comprises the purchase price and other attributable costs to
bring the asset to its working condition for its intended use.
ii) Direct overhead expenditure incurred on projects under
implementation is treated as unallocated capital expenditure pending
allocation to the assets and are included under Capital
work-in-progress.
iii) Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
b) Depreciation
i) Depreciation on the Fixed Assets of the Company is provided on
straight line method at the rates and in the manner specified in
Schedule XIV of the Companies Act, 1956.
ii) Fixed Assets costing rupees five thousand or less are fully
depreciated in the year of acquisition.
3. Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as Non Current Investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value of each long term
investment is made to recognise a decline other than temporary in
nature.
4. Inventories
a). Raw materials are valued at cost on FIFO Basis, Stores and Spares
are valued at cost on weighted Average Basis.
b). Finished Goods are valued at lower of cost of production or
realisable Value and Work in Process is valued at cost of Production.
The cost of production includes value of material, stores, direct and
indirect expenses.
5. Revenue Recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically the following basis is adopted:
a). Sale of Goods:
Revenue is recognised when the significant risks and rewards of
ownership of goods have passed to the buyer, which generally coincides
with delivery. Sales are inclusive of excise duty and value added
tax/sales tax and is net of sales returns and discounts. Revenue from
export sales is recognised on the date of bill of lading.
b). Interest :
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
c). Export Benefits:
Export Entitlements in the form of Duty Drawback and Duty Entitlement
Pass Book (DEPB) / Focus Point Schemes on accrual basis.
d). Other Sundry incomes
Insurance claims are accounted for on realisation.
6. Foreign Exchange Transactions:
a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
b) Monetary Items denominated in Foreign Currency not covered by
Forward Contracts and remaining unsettled at the end of the year are
translated at year end rates.
c) Monetary Items denominated in Foreign Currency covered by Forward
Cover are recorded at the Forward Cover contract rate.
7. Employee Benefits :
a) Defined Contribution Plans
Contributions paid/payable to defined contribution plan comprises
provident fund and is charged on accural basis to the Profit and Loss
Account Each Year.
b) Defined Benefit Plans
Gratuity for employees is covered under a scheme of Life Insurance
Corporation of India and contributions in respect of such scheme are
recognised in the Statement of Profit and Loss. The liability as at the
Balance Sheet date is provided for based on the actuarial valuation in
accordance with the requirements of revised Accounting Standard
(revised 2005) on " Employees Benefits" notified under Section 211 (3C)
of the Act ( ''revised AS 15'') as at the end of the year.
c) Other Long term employee benefits
Other Long term employee benefits comprise of leave encashment which is
provided for based on the actuarial valuation carried out in accordance
with revised AS15 at the end of the year
8. Borrowing Costs :
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalised.
Other Borrowing costs are recognised as an expense in the year in which
they are incurred.
9. Contingent Liabilities :
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
10. Provision for Current and Deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between book and
taxable profit is accounted by using the tax rates and laws that are
enacted or substantially enacted as on the balanace sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
future.
11. Earnings Per Share
The earnings considered in ascertaining the Company''s Earning Per Share
(EPS) comprise of the net profit after tax less dividend (including
dividend distribution tax) on preference shares. The number of shares
used for computing the basic EPS is the weighted average number of
shares outstanding during the year.
12. Impairment :
a). The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on internal/
external factors. An impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the asset over its remaining useful life.
b). Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
Mar 31, 2012
1. a) Basis of Financial Statements:
The financial statements have been prepared to comply in all material
respects with the notified Accounting Standards by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared in accordance with the generally accepted Accounting
Principles in India under the historical cost convention and on accrual
basis, except in case of assets for which provision for impairment is
made and revaluation is carried out. The accounting policies are
consistent with those used in the previous year.
b) Change in accounting policy: Presentation and disclosure of
financial statements:
During the year ended March 31, 2012, the revised Schedule VI notified
under the Companies Act, 1956, has become applicable to the Company,
for preparation and presentation of its financial statements. The
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year's figures in accordance with the
requirements applicable in the year under review.
c) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the results of operations during the
reporting period. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from these estimates.
2. a) Fixed Assets
i) Fixed assets are stated at cost Net of CENVAT wherever applicable,
less accumulated depreciation, amortisation and impairment losses, if
any. Cost comprises the purchase price and other attributable costs to
bring the asset to its working condition for its intended use.
ii) Direct overhead expenditure incurred on projects under
implementation is treated as unallocated capital expenditure pending
allocation to the assets and are included under Capital
work-in-progress.
iii) Borrowing costs relating to acquisition of fixed assets which take
substantial period of time to get ready for its intended use are also
included to the extent they relate to the period till such assets are
ready to be put to use.
b) Depreciation
i) Depreciation on the Fixed Assets of the Company is provided on
straight line method at the rates and in the manner specified in
Schedule XIV of the Companies Act, 1956.
ii) Fixed Assets costing rupees five thousand or less are fully
depreciated in the year of acquisition.
3. Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as Non Current Investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value of each long term
investment is made to recognise a decline other than temporary in
nature.
4. Inventories
a) Raw materials are valued at cost on FIFO Basis, Stores and Spares
are valued at cost on Weighted Average Basis.
b) Finished Goods are valued at lower of cost of production or
realisable Value and Work in Process is valued at cost of Production.
The cost of production includes value of material, stores, direct and
indirect expenses.
5. Revenue Recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically the following basis is adopted:
a) Sale of Goods:
Revenue is recognised when the significant risks and rewards of
ownership of goods have passed to the buyer, which generally coincides
with delivery. Sales are inclusive of excise duty and value added
tax/sales tax and is net of sales returns and discounts. Revenue from
export sales is recognised on the date of bill of lading.
b) Interest :
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
c) Export Benefits:
Export Entitlements in the form of Duty Drawback and Duty Entitlement
Pass Book (DEPB) Schemes on accrual basis.
d) Other sundry incomes:
Insurance claims are accounted for on realisation.
6. Foreign Exchange Transactions:
a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
b) Monetary Items denominated in Foreign Currency not covered by
Forward Contracts and remaining unsettled at the end of the year are
translated at year end rates.
c) Monetary Items denominated in Foreign Currency covered by Forward
Cover are recorded at the Forward Cover contract rate.
7. Employee Benefits :
a) Defined Contribution Plans
Contributions paid/payable to defined contribution plan comprises of
Provident Fund and is charged on accural basis to the Profit and Loss
Account each Year.
b) Defined Benefit Plans
Gratuity for employees is covered under a scheme of Life Insurance
Corporation of India and contributions in respect of such scheme are
recognised in the Statement of Profit and Loss. The liability as at the
Balance Sheet date is provided for based on the actuarial valuation in
accordance with the requirements of revised Accounting Standard
(revised 2005) on "Employees Benefits" notified under Section 211
(3C) of the Act ('Revised AS 15') as at the end of the year.
c) Other Long term employee benefits
Other Long term employee benefits comprise of leave encashment which is
provided for based on the actuarial valuation carried out in accordance
with revised AS15 at the end of the year.
8. Borrowing Costs :
Borrowing costs that are directly attributable to the acquisition,
construction or production of Fixed Assets, which take substantial
period of time to get ready for their intended use, are capitalised.
Other Borrowing costs are recognised as an expense in the year in which
they are incurred.
9. Contingent Liabilities :
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
financial statements.
10. Provision for Current and Deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between book and
taxable profit is accounted by using the tax rates and laws that are
enacted or substantially enacted as on the balanace sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
future.
11. Earnings Per Share :
The earnings considered in ascertaining the Company's Earning Per
Share (EPS) comprise of the net profit after tax less dividend
(including dividend distribution tax) on preference shares. The number
of shares used for computing the basic EPS is the weighted average
number of shares outstanding during the year.
12. Impairment :
a) The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on internal/
external factors. An impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital. After impairment, depreciation is provided on the
revised carrying amount of the asset over its remaining useful life.
b) Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset are no longer exist or have decreased.
Mar 31, 2010
1. Basis of Financial Statements:
a. The Financial Statements are prepared under the historical cost
convention in accordance with the Generally Accepted Accounting
Principles In India and the Provisions of Companies Act, 1956.
b. The Company follows Mercantile System of Accounting and recognises
significant items of income and expenditure on accrual basis.
2. Fixed Assets, Depreciation and Capital Work-in-Progress:
a. Fixed Assets are stated at cost Net of CEMVAT wherever applicable
less accumulated depreciation. All costs directly attributable to bring
the assets to their working conditions for the intended use are
capitalised
b. Depreciation on the Fixed Assets of the Company is provided on
straight line method at the rates and in the manner specified in
Schedule XIV of the Companies Act. 1956.
3. investments:
Investments are stated at cost.
4. Inventories are Vaiued as follows :
a. Raw-materials: At cost on FIFO basis and stores on weighted average
basis.
b Finished goods and Work-in-process:
Finished Goods at lower of cost of production or realisable Value and
Work in Process is vaiued at cost of Production. The cost of production
includes value of material, stores, direct and indirect expenses.
5. Foreign Exchange Transactions:
a. Transactions denominated in foreign currencies are recotded at the
exchange rate prevailing on the date of transaction.
b. Monetary Items denominated in Foreign Currency not covered by
Forward Contracts and remaining unsettled at the end of the year are
translated at year end rates.
c. Monetary Items denominated in Foreign Currency covered by Forward
Cover are recorded at the Forward Cover contract rate. d. Employee
Benefits :
a) Defined Contribution Plans
Contributions paid/payable to defined contribution plan comprises of
provident fund and is charged on accural basis to the Profit and Loss
Account Each Year.
b) Defined Benefit Plans
Gratuity for employees is covered under a scheme of Life Insurance
Corporation of India and contributions in respect of such scheme are
recognised in the Profit and Loss Account. The liability as at the
Balance Sheet date is provided for based on the actuarial valuation in
accordance with the requirements of revised Accounting Standard
(revised 2005) on " Employees Benefits" notified under Section 211 (3C)
of the Act ( revised AS 15) as at the end of the year.
c) Other Long term employee benefits
Other Long term employee benefits comprise of leave encashment which is
provided for based on the actuarial valuation carried out in accordance
with revised AS15 at the end of the year.
7. Contingent Liabilities:
Mentioned separately by way of notes to accounts.
8. Sales:
Sales includes Excise Duty and Sales Tax.
9 Provision for Current and Deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between book and
taxable profit is accounted by using the tax rates and iaws that are
enacted or substantially enacted as on tne balanace sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable certainty that the asset will be realised in
future.
10) Earnings Per Share
The earnings considered in ascertaining the Companys Earning Per Share
(EPS) comprise of the net profit after tax less dividend (including
divi- dend distribution tax) on preference shares. The number of shares
used for computing the basic EPS is the weighted average number of
shares outstanding during the year.