Mar 31, 2014
A) Basis of preparation of Financial Statements
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956.
b) Use of Estimates
The preparation of financial statements require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
c) Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation. Cost is inclusive of purchase price and any other
directly attributable cost to bring the asset to their working
condition for intended use.
d) Depreciation
Depreciation on fixed assets has been provided on pro-rata basis at the
STRAIGHT LINE METHOD in accordance with the Schedule XIV of the
Companies Act, 1956.
e) Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss ft charged to the Statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount. Post impairment, depreciation is provided on the revised
carrying value of the asset over its remaining useful life.
f) Inventories
Inventories are valued at lower of Cost and Net Realizable Value. The
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. The cost is
computed on FIFO basis.
g) CENVAT
CENVAT credit, wherever available, on Excise Duty paid inputs and
capital assets is accounted for by reducing the purchase cost of the
related inputs or the- capital assets, as the case may be.
h) Investments
Current investments are carried at lower of cost or quoted/fair value.
Long term investments are carried at cost less provisions, if any, for
permanent diminution In value.
i) Provisions and Contingent Liabilities
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the company.
j) Revenue Recognition Sales
Revenue on sale of products is recognized at the point of dispatch of
goods to the customers. All incomes and expenses are accounted for on
accrual basis.
Interest
Revenue for interest is recognized on time proportion basis taking into
account the amount outstanding and the rate applicable.
k) Employee Benefits:
i) Short Term Employee Benefits: Short Term Employee Benefits are
recognized as an expense on an undiscounted basis in the statement of
profit and loss of the year in which the related services is rendered.
ii) Post Employment Benefits: DEFINED CONTRIBUTION PLANS : Provident
Fund : Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund & Miscellaneous Provisions
Act, 1952 and is charged to the Statement of Profit & Loss.
DEFINED BENEFIT PLANS :
Gratuity:
Provision for Gratuity Liability to Employees is made on the basis of
Actuarial Valuation as at the close of the year.
L) Borrowing Cost
Borrowing cost that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of the assets. Other borrowing costs are recognized as
an expense in the year in which they are incurred.
m) Foreign Currency Transactions
Foreign currency transactions are accounted for at equivalent rupee
value converted at the rates prevalent at the time of transaction
and/or at the forward contract rate, if so applicable. However, where
there is no forward contract and the payments are pending, the rate
prevailing at the year-end are considered. Any income or expense on
account of exchange difference either on settlement or on transaction
is recognized in the Statement of Profit and Loss.
n) Accounting for Taxes on Income
Provision for taxation for the year comprises of current tax and
deferred tax.
i) Current tax is the amount of Income Tax ascertained on the basis of
assessable profit computed in accordance with the provisioh of Income
Tax Act, 1961.
ii) Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
incomes and accounting income that originate in one period, and are
capable of reversal in one or more subsequent periods.
Mar 31, 2010
A) Accounting Conventions
The financial statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards
referred to in sub section (3C) of Section 211 of the Companies Act,
1956 and relevant provisions of the said Act.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation. Cost is inclusive of purchase price and any other
directly attributable cost to bring the asset to their working
condition for intended use.
Fixed Assets are reviewed for impairment losses whenever events or
changes in circumstances indicate that .carrying amount may not be
recoverable. An impairment loss is then recognised for the amount by
which the carrying amount of assets exceeds its recoverable amount,
which is the higher of an assets net selling price and value in use.
For the purpose of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows.
c) Depreciation
Depreciation, on fixed assets has been provided on pro-rata basis at
the STRAIGHT LINE METHOD in accordance with the Schedule XIV of the
Companies Act, 1956.
d) Inventories
Inventories are valued at cost or net realisable value whichever is
lower. The cost in respect of the following items is computed as under:
Raw Material : At FIFO Basis plus Direct Expenses.
Stores & Spares : At FIFO Basis plus Direct Expenses.
Finished Goods : At Raw Material Cost plus Conversion Cost
Byproducts : At Net Realisable Value.
e) CENVATA/AT
CENVATA/AT credit, wherever available, on Excise Duty/VAT paid inputs
and capital assets is accounted for by reducing the purchase cost of
the related inputs or the capital assets, as the case may be.
f) Sales
Sales are Net of returns, Value Added Tax and Excise Duty.
g) Investments
Investments are stated at cost and where there is permanent diminution
in the value of investments, a provision is made, wherever applicable.
Dividend is accounted for as and when received.
h) Revenue Recognition
Revenue on sale of products is recognized at the point of dispatch of
goods to the customers. i) Employee Benefits:
i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Short Term
Employee Benefits are recognized as an expense on an undiscounted basis
in the profit and loss account of the year in which the related
services is rendered.
ii) Post Employment Benefits:
DEFINED CONTRIBUTION PLANS :
Provident Fund :
Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund & Miscellaneous Provisions
Act, 1952 and is charged to the Profit & Loss Account.
DEFINED BENEFIT PLANS:
Gratuity:
Provision for Gratuity Liability to Employees is made on the basis of
Actuarial Valuation made at the end of the each financial year. The
actuarial valuation is made on Projected Unit Credit Method.
j) Foreign Currency Transactions
i) Monetary Assets and Liabilities related to Foreign Currency
Transactions and outstanding, except assets and liabilities hedged by a
hedge contract, at the close of the year, are expressed in Indian
rupees at the rate of exchange prevailing on the date of the Balance
Sheet.
ii) Monetary Assets and Liabilities hedged by a hedge contract are
expressed in Indian rupees at the rate of exchange prevailing on the
date of the Balance Sheet adjusted to the rates in the hedge contracts.
The exchange difference arising either on settlement or at reporting
date is recognized in the profit and loss account except in cases where
they relate to acquisition of fixed assets, in which case they are
adjusted to the carrying cost of such asset.
iii) Transactions in foreign currency are recorded in the books of
account in Indian rupees at the rate of exchange prevailing on the date
of transaction.
k) Borrowing Cost
Borrowing cost that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalised as a
part of the cost of the assets. Other borrowing costs are recognised as
an expense in the year in which they are incurred..
l) Accounting for Taxes on Income
Provision for taxation for the year comprises of current tax and
deferred tax.
i) Current tax is the amount of Income Tax ascertained on the basis of
assessable profit computed in accordance with the provision of Income
Tax Act, 196,1.
ii) Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
incomes and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
m) Provisions and Contingent Liabilities
Provisions are recognised in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the company.