Mar 31, 2015
The Accounts of the company have been prepared in accordance with the
historical cost convention (except specifically excluded treatment)
under accrual basis of accounting as per Indian GAAP. Accounts and
disclosures thereon comply with the Accounting Standards referred to
under section 133 of Companies Act, 2013, other pronouncement of ICAI,
provisions of the Companies Act, 2013 and guidelines issued by SEBI as
applicable.
Indian GAAP enjoins management to make estimates and assumptions that
affect reported amount of assets, liabilities, revenue, expenses and
contingent liabilities pertaining to years, the financial statement
relate to Actual result could differ from such estimates. Any revision
in accounting estimates is recognised prospectively from current year
and material revision, including its impact on financial statement, is
reported in notes to accounts in the year of incorporation of revision.
All assets and liabilities have been classified as current or
non-current as per the company's nonnal operating cycle and other
criteria set out in Revised Schedule III of Companies Act, 2013.
(a) (i) FIXED ASSETS : (Tangible)
(i) Fixed Assets (except free hold Land) are valued at cost (net of
CENVAT) less depreciation/amortisation and impairment loss, if any.
except for those revalued which are presented in terms of revalued
figuresÂnet of depreciation thereon and impairment loss if any. Land
is valued at cost which includes expense on account of development.
(ii) Assets acquired under Hire Purchase are shown under fixed assets
and are depreciated at the rate specified under schedule II of the
Companies Act, 2013.
iii) Cost includes purchase price. finance charges in case of major
expansion or modernisation and other attributable expenses for bringing
the Assets to their working condition for the intended use, duly
certified by the engineers of the concerned departments.
(ii) FIXED ASSETS : (Intangible)
Intangible fixed assets i.e.: software is carried at actual cost of
acquision including cost incidental thereonÂnet of amortisation.
(b) DEPRECIATION
1. Depreciation is considered on Straight Line Method in terms of life
span of different assets specified under schedule II of Companies Act,
2013.
2. Depreciation on additions/deletion during the year is charged on
pro rata basis from/upto the date of such addition/deletion.
3. In respect of revalued depreciable assets, the differential
depreciation on the amounts added on revaluation is set off against
Revaluation Reserve forming part of Capital Reserve.
4. Depreciation on increase in value of assets arising out of
variations in the exchange rates, is charged prospectively over the
remaining life of the assets.
5. Leasehold land is amortised over the period of lease.
6. Intangible fixed assets i.e; software is amortised over a period of
5 years on straight line basis since the date of bringing the same in
use.
(c) IMPAIRMENT OF FIXED ASSETS
Exigency of provisions, if any, for impairment loss has been assessed
in the context of cash generating units (CGU) in due cognizance of
indications thereof based on external/internal sources of information.
Impairment loss is provided against Short fall of recoverable value of
CGU's vis-a-vis written down value of conesponding fixed assets.
Recoverable value is the higher of value in use and net selling price
of the fixed assets relevant to a CGU.
(d) INVENTORIES
All items of inventories are valued at lower of cost and net realisable
value except for scrap which is considered at estimated net realisable
value.
Cost includes all costs of purchase, conversion and other costs
incurred in bringing the inventories to their present location and
condition. The basis of determining cost for different categories of
inventories:
(a) Stores, Raw materials and Packing MaterialsÂWeighted average
basis.
(b) Work in Progress and Finished goodsÂMaterial cost and appropriate
share of production overhead.
(c) Purchased goodsÂpurchase price.
(e) INVESTMENTS
Long term investments are stated at cost less provision, if any,
against permanent diminution in carrying cost of investment. Current
investments are carried at lower of cost and Net Asset Value/market
price.
(f) REVENUE RECOGNITION
1. Sales and services are accounted for when the sale of goods or
services are completed on accrual basis. Sales is net of sales tax /
VAT but gross of excise duty.
2. All items of income and expenses are recognized on accrual basis
unless stated otherwise.
3. Export benefits are accounted for on the basis of realization.
(g) RECOGNITION OF PROFIT ON LONG TERM CONTRACTS
Contract revenue and Contract costs are recognized as revenue and
expenses respectively by reference to the stage of completion of
contract activity up to the date of balance sheet when construction
contract stage can be estimated reliably. Expected loss on construction
contract, based on possibility of total cost of construction exceeds
contract revenue, is recognized as an expense. Stage of completion is
arrived at on the basis of agreed billing schedule vis-a-vis total
contract value.
(h) TRANSACTIONS IN FOREIGN CURRENCIES
Foreign currency assets and outside liabilities (other than fixed
assets and those covered by forward contracts) as on the Balance Sheet
date are converted at the year end exchange rates and loss or gain
arising thereon, is adjusted in the carrying amount of fixed assets or
charged to Profit & Loss Account, as the case may be.
Transactions in foreign currencies other than those covered by forward
contracts, are recorded at the rate prevailing on the date of
transaction. Impact of exchange fluctuation between the date of the
transaction and that of payment is accounted for separately as exchange
gain or loss.
(i) RETIREMENT BENEFITS
(i) Defined Contribution PlanÂ
Provident Fund, Employees Pension and Employees State Insurance are
provided on accrual basis. The accrued amount being deposited to the
respective Trust / Authority.
(ii) Defined Benefit PlanÂ
Gratuity, Leave salary and Superannuation benefit form part of defined
benefit plan schemes existing in the company.
The above benefits have been accounted for on the basis of acturial
computation under unit projected cost method in terms of AS-15 mandated
by Ministry of Corporate Affairs (MCA) at year end. Interim liabilities
are provided for in this regard on estimated basis.
(iii) Short term benefit PlanÂ
Benefits payable within a year has been accounted for on accrual basis
in terms of non discounted value.
(j) GOVERNMENT GRANTS
Revenue grants are recognised in the Profit and Loss Account. Capjtal
grants are credited to Capital Reserves.
(k) RESEARCH & DEVELOPMENT EXPENSES
Research and Development Expenditure is charged to profit and loss
account in the year of incurrence.
(l) CONTINGENT LIABILITIES
Where there is reliably estimable amount of present obligation that
warrant to be settled as a result of past event with possible outflow
of resources embodying economic benefit, provision is recognised in
account therefore.
Otherwise no provision is made against contingent liabilities which are
disclosed in notes to accounts.
(m) MISCELLANEOUS EXPENDITURE
Preliminary expenses are written off in the year in which they are
incurred.
Share issue expenses and payment made towards Voluntary Retirement
Scheme are written off over a period of 60 months in equal
installments.
(n) TAXATION
Income Tax is provided as per provisions of Income Tax Act, 1961.
Deferred tax is recognized only at year end subject to consideration of
prudence on timing difference being the difference between the taxable
income and accounting income that originate in one year and capable of
reversal in one or more subsequent period/periods.
(o) INTEREST IN JOINT VENTURE
Income, Expenses & stake in venture the company has undertaken with a
third party have been accounted for in terms of AS-27 mandated by MCA.
(p) GENERAL
Items of income, expenses, assets and liabilities not being
specifically referred to herein are accounted for consistently in terms
of generally accepted accounting practices in due adherence of
Accounting Standards mandated under act and in it's absence those
issued under International Accounting Standards.
Mar 31, 2014
Basis of preparation of Accounts
The Accounts of the company have been prepared in accordance with the
historical cost convention (except specifically excluded treatment)
under accrual basis of accounting as per Indian GAAP.Accounts and
disclosures thereon comply with the Accounting Standards specified in
Companies (Accounting Standard) Rules, other pronouncement of ICAI,
provisions of the Companies Act, 1956 and guidelines issued by S''EBI as
applicable.
Indian GAAP enjoins management to make estimates and assurhptlons that
affect reported amount of assets, liabilities, revenue, expenses and
cflntlngent liabilities pertaining to years, the financial statement
relate to Actual result could differ from such estimates. Any revision
in accounting estimates Is recognised prospectively from current year
and material revision, Including its impact on financial statement is
reported in notes to accounts In the year of incorporation of revision.
.
All assets and liabilities have been classified as Current or
non-current as per the company''s nonnal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
(a) (i) FIXED ASSETS : (Tangible)
(i) Fixed Assets (except free hold Land) are valued at cost (net of
CENVAT) less depreciation/amortisation and impairment loss, if any.
except tor those revalued which are presented in terms of revalued
figuresÂnet of depreciation thereon and Impairment loss if any. Land
is valued at cost which includes expense on account of development.
(ii) Assets acquired under Hire Purchase are shown under fixed assets
and are depreciated at the rate specified under schedule XIV of
the Companies Act, 1956.
iii) Cost includes purchase price, finance charges in case of major
expansion or modernisation and other attributable expenses for bringing
the Assets to their working condition for the intended use, duly
certified by the engineers of the concerned departments.
(ii) FIXED ASSETS: (Intangible)
Intangible fixed assets i.e.: software is carried at actual cost of
acquision including cost incidental thereonÂnet of amortisation.
(b) DEPRECIATION
1. Depreciation is considered at the rates and in the manner specified
under schedule XIV of the Companies Act, 1956 as under:
(i) Straight Line Method at Baripada division and Plant & Machinery in
other divisions.
(ii) Written Down Value Method at other divisions in case of other
assets.
2. Depreciation on additions/deletion during the year is charged on pro
rata basis from/upfo the date of such addition/deletion.
3. In^ respect of revalued depreciable assets, the differential
depreciation on the amounts added on revaluation is set off against
Revaluation Reserve forming part of Capital Reserve.
4. Depreciation on increase in value of assets arising out of
variations in the exchange rates, is charged prospectively over the
remaining life of the assets.
5. Leasehold land is amortised over the period of lease.
6. Ihtangible fixed assets i.e; software is amortised over a period of
5 years on straight line basis since the date of bringing the same in
use.
(c) IMPAIRMENT OF FIXED ASSETS ''
Exigency of provisions, if any, for impairment loss has been assessed
in the context of cash generating units (CGU) in due cognizance of
indications thereof based on exfernal/lnternal sources of Information.
Impairment loss is provided against Short fall of recoverable value
ofCGU''s vis- a- vis written down volue of conesponding fixed assets.
Recoverable value is the higher of value in use and net selling price
of the fixed assets relevant to a CGU. Value In use when found to
exceed the written down value of fixed assets of CGU, the exercise of
further ascertaining net selling price therefor has been done away
with. ,
(d) INVENTORIES
All Items of Inventories are valued at lower of cost and net realisable
value except for scrap which Is considered at estimated net realisable
value. " ; .
Cost Includes all costs of purchase, conversion and other costs
Incurred in bringing the Inventories to their present location and
condition. The basis of determining cost for different categories of
Inventories: -
(a) Stores, Raw materials and Packing MaterialsÂWeighted average
basics
(b) Work in Progress and Finished goodsÂMaterial cost and appropriate
share of production overhead.
(c) Purchased goods''purchase price.
(e) INVESTMENTS
Long term investments are stated at cost less provision, if any,
against permanent diminution In carrying cost of Investment. Current
Investments are carried at lower of cost and Net Asset Value/market
price.
(f) REVENUE RECOGNITION
1. Sales and services are accounted for when the sale of goods or
seivices are completed on accrual basis. Sales is net of sales tax /
VAT but gross ofexcise duty. ,
2. All Items of income and expenses are recognized on accrual basis
unless stated otherwise.
3. Export benefits-are accounted for on the basis of realization.
(g) RECOGNITION OF PROFIT ON LONG TERM CONTRACTS
Contract revenue and Contract costs are recognized as revenue and
expenses respectively by reference to the stage of completion of
contract activity up to the date of balance sheet when construction
contract stage can be estimated reliably. Expected loss on construction
contract, based on possibility of total cost of construction exceeds
contract revenue, Is recognized as an expense. Stage of completion is
arrived at on the basis of agreed billing schedule vis-a-vis total
contract value.
(h) TRANSACTIONS IN FOREIGN CURRENCIES
Foreign currency assets and outside lidbilities (other than fixed
assets and those covered by forwdrd contracts) as on the Balance Sheet
date are convelted at the year end exchange rates and loss or gdin
arising thereon, is adjusted in the carrying amount of fixed assets or
charged to Profit & Loss Account, as the case may be.
Transactions in foreign currencies other than those covered by forward
contracts, are recorded at the rate prevailing on the date of
transaction. Impact of exchange fluctuation between the date of the
transaction and that of payment is accounted for separately as exchange
gain or loss.
(i) RETIREMENT BENEFITS
(i) Defined Contribution Plan
Provident Fund, Employees Pension and Employees State Insurance are
provided on accrual basis. The accrued amount being deposited to the
respective Trust / Authority.
(il) Defined Benefit Plan
Gratuity, Leave salary and Superannuation benefit form part of defined
benefit plan schemes existing in the company.
The above benefits have been accounted for on the basis of acturlal
computation under unit projected cost method in terms of AS-15 as
revised by ICAI.
(Ill) Short term benefit-Plan
Benefits payable within a year has been accounted for on accrual basis
in terms of non discounted value.
(j) GOVERNMENT GRANTS .
Revenue grants are recognised in the Profit and Loss Account. Capital
grants are credited to Capital Reseives. . .
(kj RESEARCH & DEVELOPMENT EXPENSES
Research and Development Expenditure is charged to profit and loss
account in the year of incurrence.
(l) CUSTOM DUTY
Custom duty payable on imported goods landed but not cleared are
accounted for at the time of clearance of Imported goods through
customs.
(m) CONTINGENT LIABILITIES
Where there is reliably estimable amount of present obligation that
warrant to be settled as a result of past event with possible outflow
of resources embodying economic benefit, provision is recognised In
account therefore,
Otherwise no provision Is made against contingent liabilities which are
disclosed in notes to accounts.
(n) MISCELLANEOUS EXPENDITURE
Preliminary expenses are written off In the year In which they are
Incurred. -
Share Issue expenses and payment made towards Voluntary Retirement
Scheme are written off over a period of 60 months in equal
installments.
(o) TAXATION
Income Tax is provided as per provisions of Income Tax Act, 1961.
Deferred tax is recognized only at year end subject to consideration of
prudence on timing difference being the difference between the taxable
income and accounting income that originate In one year and capable of
reversal in one or more subsequent period/periods.
(p) INTEREST IN JOINT VENTURE
income, Expenses & stake In venture the company has undertaken with a
third party have been accounted for In terms of AS-27 issued by ICAI.
(q) GENERAL
Items of Income, expenses, assets and liabilities not being
specifically referred to herein are accounted for consistently In terms
of generally accepted accounting practices in due adherence of
Accounting Standards Issued by ICAI and in It''s absence those issued
under International Accounting Standards.
Mar 31, 2013
A. ACCOUNTING POLICIES
The Accounts of the company are prepared on going concern assumption
under the historical cost convention (modified from time to time for
revaluation of assets) and on accrual basis, in accordance with the
applicable Accounting Standards except where otherwise stated.
The preparation of financial statements require estimates and
assumptions to be made that effects the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Difference between
the actual results and estimates are recognised in the period in which
the results are known/materialise.
(a) (i) FIXED ASSETS: (Tangible)
(i) Fixed Assets (except free hold Land) are valued at cost (net of
CENVAT) less depreciation/amortization and impairment loss, if any,
except for those revalued which are presented in terms of revalued
figuresÂnet of depreciation thereon and impairment loss, if any. Land
is valued at cost which Includes expense on account of development.
(ii) Assets acquired under Hire Purchase are shown under fixed assets
and are depreciated at the rate specified under Schedule XIV of the
Companies Act, 1956.
(iii) Cost includes purchase price, finance charges in case of major
expansion or modernisation and other attributable expenses for bringing
the Assets to their working condition for the intended use, duly
certified by the engineers of the concerned departments.
(ii) FIXED ASSETS : (Intangible)
Intangible fixed assets i.e.; software is carried at actual cost of
acauision including cost incidental thereonÂnet of amortisation.
(b) DEPRECIATION
1. Depreciation is considered at the rates and in the manner specified
under schedule XIV of the Companies Act, 1956 as under:
(i) Straight Line Method at Kalyanl, Baripada divisions and Plant &
Machinery in other divisions. (ii) Written down Value Method at other
divisions in case of other assets.
2. Depreciation on addition/deletion during the year is charged on pro
rata basis from the date of such addition/deletion.
3. In respect of revalued depreciable assets, the differential
depreciation on the amounts added on revaluation is set off against
Revaluation Reserve forming part of Capital Reserve.
4. Depreciation on increase in value of assets arising out of
variations in the exchange rates, is charged prospectively over the
remaining life of the assets.
5. Leasehold land is amortised over the period of lease.
6. Intangible fixed assets i.e.; software is amortised over a period
of 5 years on straight line basis since the date of bringing the same
in use.
(c) IMPAIRMENT OF FIXED ASSETS
Exigency of provisions, if any, for impairment loss has been assessed
in the context of Cash Generating Units (CGU) in due cognizance of
indications thereof based on external/internal sources of information.
Impairment loss is provided against short fall of recoverable value of
CGU''s vis-a-vis written down value of corresponding fixed assets.
Recoverable value is the higher of value in use and net selling price
of the fixed assets relevant to a CGU. Value in use when found to
exceed the written down value of fixed assets of CGU, the exercise of
further ascertaining net selling price therefor has been done away
with.
(d) INVENTORIES
All items of inventories are valued at lower of cost and net realisable
value except for scrap which is considered at estimated net reliasable
value.
Cost includes all costs of purchase, conversion and other costs
incurred in bringing the inventories to their present location and
condition.
The basis of determining cost for different categories of inventories:
(a) Stores, Raw Materials and Packaging MaterialsÂWeighted average
basis.
(b) Work-in-Progress and Finished GoodsÂMaterial cost and appropriate
share of-production overhead.
(c) Purchased GoodsÂPurchase price.
(e) INVESTMENTS
Long term investments are stated at cost less provision, if any,
against permanent diminution in carrying cost of investment. Current
investments are carried at lower of cost and Net Asset Value/market
price.
(f) REVENUE RECOGNITION
1. Sales and services are accounted for when the sale of goods or
services are completed on accrual basis. Sales is net of Sales Tax/VAT
but gross of excise duty. »
2. All items of income and expenses are recognized on accrual basis
unless stated otherwise.
3. Export benefits are accounted for on the basis of realization.
(g) RECOGNITION OF PROFIT ON
LONG TERM CONTRACTS:
Contract revenue and Contract costs are recognized as revenue and
expenses respectively by reference to the stage of completion of
contract activity up to the date of balance sheet when construction
contract stage can be estimated reliably. Expected loss on
construction contract, based on possibility of total cost of
construction exceeds contract revenue, is recognized as an expense.
Stage of completion is arrived at on the basis of agreed billing
schedule vis-a-vis total contract value. (H) TRANSACTIONS IN FOREIGN
CURRENCIES
¦ Foreign currency assets and outside liabilities (other than fixed
assets and those covered by forward contracts) as on the Balance Sheet
date are converted at the year end exchange rates and loss or gain
arising thereon, is adjusted in the carrying amount of fixed assets or
charged to Profit & Loss Account, as the case may be.''
Transactions in foreign curriencies other than those covered by forward
contracts, are recorded at the rate prevailing on the date of
transaction, Impact of exchange fluctuation between the date of the
transaction and that of payment is accounted for separately as exchange
gain or loss.
(i) RETIREMENT BENEFITS
(i) Defined Contribution Plan- Provident Fund, Employees Pension and
Employees State Insurance are provided on accrual basis. The accrued
amount being deposited to the respective Trust/Authority.
(ii) Defined Benefit Plan- Gratuity, Leave Salary and Superannuation
benefit form part of defined benefit plan schemes existing in the
company. The above benefits have been accounted for on the basis of-
actuarial computation under unit projected cost method in terms of
AS-15 as revised by ICAI.
(iii) Short Term Benefit Plan- Benefits payable within a year has been
accounted for on accrual basis in terms of non discounted value.
(j) GOVERNMENT GRANTS
Revenue grants are recognised in the Profit and Loss Account. Capital
grants are credited to Capital Reserves.
(k) RESEARCH AND DEVELOPMENT EXPENSES
Research and Development Expenditure is charged to Profit & Loss
Account in the year of incurrence.
(I) CUSTOM DUTY
Custom duty payable on imported goods landed but not cleared are
accounted for at the time of clearance of imported goods through
customs.
(m) CONTINGENT LIABILITIES
Where there is reliably estimable amount of present obligation that
warrant to be settled as a result of past event with possible outflow
of resources embodying economic benefit, provision is recognised in
account therefore. Otherwise no provision is made against contingent
liabilities which are disclosed in notes to accounts.
(n) MISCELLANEOUS EXPENDITURE
Preliminary expenses are written off in the year in which they are
incurred.
Share issue expenses and payment made towards Voluntary Retirement
Scheme are written off over a period of 60 months in equal
installments.
(o) TAXATION
Income Tax is provided as per provisions of Income Tax Act, 1961.
Deferred tax is recognized only at year end subject to consideration of
prudence on timing difference being the difference between the taxable
income and accounting income that originate in one year and capable of
reversal in one or more subsequent period/periods.
(p) '' INTEREST IN JOINT VENTURE
Income, Expenses and stake in venture of the Company has undertaken
with a third party have been accounted for in terms of AS-27 issued by
ICAI.
(q) GENERAL
Items of income, expenses, assets and liabilities not being
specifically referred to herein are accounted for consistently in terms
of generally accepted accounting practices in due adherence of
Accounting Standards issued by ICAI and in it''s absence those issued
under International Accounting Standards,
Mar 31, 2012
The Accounts of the company are prepared on going concern assumption
under the historical cost convention (modified from time to time for
revaluation of assets) and on accrual basis, in accordance with the
applicable Accounting Standards except where otherwise stated.
The preparation of financial statements require estimates and
assumptions to be made that effects the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Difference between
the actual results and estimates are recognised in the period in which
the results are known/materialise.
(a) (i) FIXED ASSETS: (Tangible)
(i) Fixed Assets (except free hold Land) are valued at cost (net of
CENVAT) less depreciation/amortization and impairment loss, if any,
except for those revalued which are presented in terms of revalued
figuresÃnet of depreciation thereon and impairment loss, if any, Land
is valued at cost which includes expense on account of development,
(ii) Assets acquired under Hire Purchase are shown under fixed assets
and are depreciated at the rate specified under Schedule XIV of the
Companies Act, 1956.
(iii) Cost includes purchase price, finance charges in case of major
expansion or modernisation and other attributable expenses for bringing
the Assets to their working condition for the intended use, duly
certified by the engineers of the concerned departments.
(ii) FIXED ASSETS : (Intangible)
Intangible fixed assets i.e.; software is carried at actual cost of
acquision including cost incidental thereonÃnet of amortisation.
(b) DEPRECIATION
1. Depreciation is considered at the rates and in the manner specified
under schedule XIV of the Companies Act, 1956 as under:
(i) Straight Line Method at Kalyani, Baripada divisions and Plant &
Machinery in other divisions,
(ii) Written down Value Method at other divisions in case of other
assets. ,
2. Depreciation on addition/deletion during the year is charged on pro
rata basis from the date of such addition/deletion.
3. In respect of revalued depreciable assets, the differential
depreciation on the amounts added on revaluation is set off against
Revaluation Reserve forming part of Capital Reserve,
4. Depreciation on increase in value of assets arising out of
variations in the exchange rates, is charged prospectively over the
remaining life of the assets.
5. Leasehold land is amortised over the period of lease.
6. Intangible fixed assets i.e.; software is amortised over a period
of 5 years on straight line basis since the date of bringing the same
is use.
(c) IMPAIRMENT OF FIXED ASSETS
Exigency of provisions, if any, for impairment loss has been assessed
in the context of Cash Generating Units (CGU) in due cognizance of
indications thereof based on external/internal sources of information.
Impairment loss Is provided against short fall of recoverable value of
CGU's vis-a-vis written down value of corresponding fixed assets.
Recoverable value is the higher of value in use and net selling price
of the fixed assets relevant to a CGU. Value in use when found to
exceed the written down value of fixed assets of CGU, the exercise of
further ascertaining net selling price therefor has been done away
with.
(d) INVENTORIES
All items of inventories are valued at lower of cost and net realisable
value except for scrap which is considered at estimated net reliasable
value.
Cost includes all costs of purchase, conversion and other costs
incurred in bringing the inventories to their present location and
condition.
The basis of determining cost for different categories of inventories:
(a) Stores, Raw Materials and Packaging MaterialsÃWeighted average
basis.
(b) Work-in-Progress and Finished GoodsÃMaterial cost and appropriate
share of production overhead.
(c) Purchased GoodsÃPurchase price.
(e) INVESTMENTS
Long term investments are stated at cost less provision, if any,
against permanent diminution in carrying cost of investment. Current
investments are carried at lower of cost and Net Asset Value/market
price.
(0 REVENUE RECOGNITION
1. Sales and services are accounted for when the sale of goods or
services are completed on accrual basis. Sales is net of Sales Tax/VAT
but gross of excise duty.
2. All items of income and expenses are recognized on accrual basis
unless stated otherwise.
3. Export benefits are accounted for on the basis of realization.
(g) RECOGNITION OF PROFIT ON
LONG TERM CONTRACTS:
Contract revenue and Contract costs are recognized as revenue and
expenses respectively by reference to the stage of completion of
contract activity up to the date of balance sheet when construction
contract stage can be estimated reliably. Expected loss on
construction contract, based on possibility of total cost of
construction exceeds contract revenue, is recognized as an expense,
Stage of completion is arrived at on the basis of agreed billing
schedule vis-a-vis total contract value.
(H) TRANSACTIONS IN FOREIGN CURRENCIES
Foreign currency assets and outside liabilities (other than fixed
assets and those covered by forward contracts) as on the Balance Sheet
date are converted at the year end exchange rates and loss or gain
arising thereon, is adjusted in the carrying amount of fixed assets or
charged to Profit & Loss Account, as the case may be.
Transactions in foreign curriencies other than those covered by forward
contracts, are recorded at the rate prevailing on the date of
transaction. Impact of exchange fluctuation between the date of the
transaction and that of payment is accounted for separately as exchange
gain or loss._
(i) RETIREMENT BENEFITS
(i) Defined Contribution Plan-
Provident Fund, Employees Pension and Employees State Insurance are
provided on accrual basis. The accrued amount being deposited to the
respective Trust/Authority.
(ii) Defined Benefit PlanÃ
Gratuity, Leave Salary and Superannuation benefit form part of defined
benefit plan schemes existing in the company. The above benefits have
been accounted for on the basis of actuarial computation under unit
projected cost method in terms of AS-15 as revised by ICAI.
(iii) Short Term Benefit PlanÃ
Benefits payable within a year has been accounted for on accrual basis
in terms of non discounted value.
0) GOVERNMENT GRANTS
Revenue grants are recognised in the Profit and Loss Account. Capital
grants are credited to Capital Reserves.
(k) RESEARCH AND DEVELOPMENT EXPENSES
Research and Development Expenditure is charged to Profit & Loss
Account in the year of incurrence.
(I) CUSTOM DUTY
Custom duty payable on imported goods landed but not cleared are
accounted for at the time of clearance of imported gooas through
customs.
(m) CONTINGENT LIABILITIES
Where there is reliably estimable amount of present obligation that
warrant to be settled as a result of past event with possible outflow
of resources embodying economic benefit, provision is recognised in
account therefore.
Otherwise no provision is made against contingent liabilities which are
disclosed in notes to accounts.
(n) MISCELLANEOUS EXPENDITURE
Preliminary expenses are written off in the year in which they are
incurred.
Share issue expenses and payment made towards Voluntary Retirement
Scheme are written off over a period of 60 months in equal installments
(O) TAXATION
Income Tax is provided as per provisions of Income Tax Act, 1961.
Deferred tax is recognized only at year end subject to consideration of
prudence on timing difference being the difference between the taxable
income and accounting income that originate in one year and capable of
reversal in one or more subsequent period/periods.
(p) INTEREST IN JOINT VENTURE
Income, expenses arid stake in venture the Company has undertaken with
a third party have been accounted for in terms of AS-27 issued by ICAI.
(q) GENERAL
Items of income, expenses, assets and liabilities not being
specifically referred to herein are accounted for consistently in terms
of generally accepted accounting practices in due adherence of
Accounting Standards issued by ICAI and in it's absence those issued
under International Accounting Standards.
Mar 31, 2010
The Accounts of the company are prepared on going concern assumption
under the historical cost convention (modified from time to time for
revaluation of assets) and on accrual basis, in accordance with the
applicable Accounting Standards except where otherwise stated,
(a) (i) FIXED ASSETS: (Tangible)
(i) Fixed Assets (except Free hold Land) are valued at cost (net of
CENVAT) less depreciation/amortization and impairment loss, if any,
except for those revalued which are presented in terms of revalued
figuresÃnet of depreciation thereon and impairment loss, if any. Land
is valued at cost which includes expense on account of development.
(ii) Assets acquired under Hire Purchase are shown under fixed assets
and are depreciated at the rate specified under Schedule XIV of the
Companies Act, 1956.
(iii) Cost includes purchase price, finance charges in case of major
expansion or modernisation and other attributable expenses for bringing
the Assets to their working condition for the intended use, duly
certified by the engineers of the concerned departments,
(ii) FIXED ASSETS : (Intangible)
Intangible fixed assets i.e.; software is carried at actual cost of
acquision including cost incidental thereonÃnet of amortisation.
(b) DEPRECIATION
1. Depreciation is considered at the rates and in the manner specified
under schedule XIV of the Companies Act, 1956 as under:
(i) Straight Line Method at Kalyani, Baripada divisions and Plant &
Machinery in other divisions. (ii) Written down Value Method at other
divisions in case of other assets.
2. Depreciation on continuous process plants is considered at the
rates specified under Schedule XIV of the Companies Act, 1956 under
straight line method.
3. Depreciation on addition/deletion during the year is charged on pro
rata basis from the date of such addition/deletion.
4. In respect of revalued depreciable assets, the differential
depreciation on the amounts added on revaluation is set off against
Revaluation Reserve forming part of Capital Reserve.
5. Depreciation on increase in value of assets arising out of
variations in the exchange rates, is charged prospectively over the
remaining life of the assets.
6. Leasehold land is amortised over the period of lease.
7. Intangible fixed assets i.e.; software is amortised over a period
of 5 years on straight line basis since the date of bringing the same
in use.
(C) IMPAIRMENT OF FIXED ASSETS
Exigency of provisions, if any, for impairment loss has been assessed
in the context of Cash Generating Units (CGU) in due cognizance of
indications thereof based on external/internal sources of information.
Impairment loss is provided against short fall of recoverable value of
CGUs vis-a-vis written down value of corresponding fixed assets.
Recoverable value is the higher of value in use and net selling price
of the fixed assets relevant to a CGU. Value in use when found to
exceed the written down value of fixed assets of CGU, the exercise of
further ascertaining net selling price therefor has been done away
with.
(d) INVENTORIES
All items of inventories are valued at lower of cost and net realisable
value except for scrap which is considered at estimated net reliasable
value.
Cost includes all costs of purchase, conversion and other costs
incurred in bringing the inventories to their present location and
condition.
The basis of determining cost for different categories of inventories:
(a) Stores, Raw Materials and Packaging MaterialsÃWeighted average
basis.
(b) Work-in-Progress and Finished GoodsÃMaterial cost and appropriate
share of production overhead.
(c) Purchased GoodsÃPurchase price.
(e) INVESTMENTS
Long term investments are stated at cost less provision, if any,
against permanent diminution in carrying cost of investment. Current
investments are carried at lower of cost and Net Asset Value/market
price.
(f) REVENUE RECOGNITION
1. Sales and services are accounted for when the sale of goods or
services are completed on accrual basis. Sales is net of Sales Tax/VAT
but gross of excise duty.
2. All items of income and expenses are recognized on accrual basis
unless stated otherwise.
3. Export benefits are accounted for on the basis of
realization.
(g) RECOGNITION OF PROFIT ON LONG TERM CONTRACTS:
Contract revenue and Contract costs are recognized as revenue and
expenses respectively by reference to the stage of completion of
contract activity up to the date of balance sheet unless when
construction contract stage can be estimated reliably. Expected loss on
construction contract, based on possibility of total cost of
construction exceeds contract revenue, is recognized as an expense.
Stage of completion is arrived at on the basis of agreed billing
schedule vis-a-vis total contract value.
(H) TRANSACTIONS IN FOREIGN CURRENCIES
Foreign currency assets and outside liabilities (other than fixed
assets and those covered by forward contracts) as on the Balance Sheet
date are converted at the year end exchange rates and loss or gain
arising thereon, is adjusted in the carrying amount of fixed assets or
charged to Profit & Loss Account, as the case may be. Transactions in
foreign currencies other than those covered by forward contracts, are
recorded at the rate prevailing on the date of transaction. Impact of
exchange fluctuation between the date of the transaction and that of
payment is accounted for separately as exchange gain or loss.
(i) RETIREMENT BENEFITS
(i) Defined Contribution Plan- Provident Fund, Employees Pension and
Employees State Insurance are provided on accrual basis. The accrued
amount being deposited to the respective Trust/Authority.
(ii) Defined Benefit Plan- Gratuity, Leave Salary and Superannuation
benefit form part of defined benefit plan schemes existing in the
company.
The above benefits have been accounted for on the basis of actuarial
computation under unit projected cost method in terms of AS-15 as
revised by ICAI.
(iii) ShortTerm Benefit Plan- Benefits payable within a year have been
accounted for on accrual basis in terms of non discounted value.
(j) GOVERNMENT GRANTS
Revenue grants are recognised in the Profit and Loss Account. Capital
grants are credited to Capital Reserves.
(k) RESEARCH AND DEVELOPMENT EXPENSES
Research and Development Expenditure is charged to Profit & Loss
Account in the year of incurrence.
(l) CUSTOM DUTY
Custom duty payable on imported goods landed but not cleared are
accounted for at the time of clearance of imported goods through
customs.
(m) CONTINGENT LIABILITIES
Where there is reliably estimable amount of present obligation that
warrant to be settled as a result of past event with possible outflow
of resources embodying economic benefit, provision is recognised in
account therefor.
Otherwise no provision is made against contingent liabilities which are
disclosed in notes to accounts.
(n) MISCELLANEOUS EXPENDITURE
Preliminary expenses are written off in the year in which they are
incurred.
Share issue expenses and payment made towards Voluntary Retirement
Scheme are written off over a period of 60 months in equal
installments.
(o) TAXATION
Income Tax is provided as per provisions of Income Tax Act, 1961,
Deferred tax is recognized only at year end subject to consideration of
prudence on timing difference being the difference between the taxable
income and accounting income that originate in one year and capable of
reversal in one or more subsequent period/periods.
(p) INTEREST IN JOINT VENTURE
Income, Expenses and stake in venture the Company has undertaken with a
third party have been accounted for in terms of AS-27 issued by ICAI.
(q) GENERAL
Items of income, expenses, assets and liabilities not being
specifically referred to herein are accounted for consistently in terms
of generally accepted accounting practices in due adherence of
Accounting Standards issued by ICAI and in its absence those issued
under International Accounting Standards.