Mar 31, 2013
A. Basis of preparation of financial statements
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India, Accounting Standards
issued by the Institute of Chartered Accountants of India and the
relevant provisions of the Companies Act, 1956. These are based on the
historical cost convention Method. The Company generally follows
mercantile system of accounting and recognizes items of income and
expenditure on accrual basis, except in case of significant
uncertainties. The accounting policies adopted in the preparation of
financial statements are consistent with those of previous year, except
for the change in accounting policies explained below.
b. Revenue Recognition
Sales are net of Excise Duty, Sales Tax, Trade discount & returns.
Income from Conversion of job work is accou nted for on the basis of
dispatches made.
Interest & other incomes are accounted on accrual basis.
Dividend income is accounted for when the right to receive it is
established.
c. Cash & Cash Equivalents
Cash comprises of cash-on-hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
d. Foreign Currency transactions
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of
transaction. Transactions in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction. Realised gains and
losses on foreign exchange transactions during the year are recognised
in the Profit and Loss account Exchange differences in respect of
foreign currency loans/liabilities relating to Fixed Assets are
accounted in the Profit and Loss Account
Foreign currency current assets and current liabilities are translated
at year end rates. In circumstances, where the year end rate is not
stable/ highly volatile, monetary items shall be reported based on the
subsequent actual realisation rate. Resulting gains/ losses are
recognised in the profit and loss account. However resulting gains /
losses relating to 100 % subsidiary (considered as Non - Integral
Foreign Operation) are accumulated in Foreign Currency Translation
Reserve.
Non monetary items such as Investments / Fixed Assets, denominated in
foreign currency are stated at exchange rate prevailing on me date of
transaction.
In respect of forward foreign exchange contracts, realized gain or loss
on cancellation of forward contracts is recognized in the profit & loss
account of the year in which they are cancelled.
e. Tangible Fixed assets
Fixed Assets are stated at cost including central sales tax, freight
and other incidental expenses incurred in relation to acquisition &
installation of the same, net of modvat and VAT.
The Foreign Exchange differences, in respect of Foreign Currency Loans/
Liabilities relating to acquisition of Fixed Assets, are accounted in
the Profit and Loss Account.
Capital Work in Progress includes the cost of Fixed Assets that are not
ready for use at the Balance Sheet date.
Physical verification of fixed assets is carried out in phase manner in
three years. Shortage/excess, if any, is provided for in the year of
identification.
Borrowing cost on New ACR Plant has been capitalized as per AS -16,
Borrowing costs.
f. Depreciation on Tangible Fixed assets
The Depreciation is provided on fixed assets on written down value
method at the rates specified in the Schedule XIV of the Companies Act,
1956 on pro-rata basis for additions/deductions.
g. Intangible Assets
Intangible assets acquired separately are measured on initial
recognition on cost.
h. Leases
Finance leases, which effectively transfer to the company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized at the inception of the lease term. .
i. Borrowing Costs
Borrowing costs includes interest, amortization of ancillary cost
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost. Borrowing costs
directly attributable to the acquisition, construction or production of
an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalized as part of the cost
of the respective asset. All other borrowing costs are expensed in the
period they occur.
j. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. During the financial year 2010-11,
company had invested in NC Middle East FZE which is its 100 %
subsidiary situated in UAE.
k. Inventories
Raw Materials, Stores & Spares, and Packing Materials are valued at
lower of cost or net realisable value under the FIFO method.
Stocks in Process are valued at lower of cost or net realizable value
under the FIFO method. The cost is arrived at on full absorption basis
as per Accounting Standard AS 2 -Valuation of Inventories.
Finished Goods are valued at lower of cost or net realizable value,
under the FIFO method. The cost is arrived at on full absorption basis
as per Accounting Standard AS 2 - Valuation of Inventories. Scraps are
accounted for on realization.
I. Retirement benefits and leave wages
Company''s contribution to Provident Fund, Pension Scheme & Workman
compensation Funds are charged to the Profit & Loss Account on an
accrual basis.
Calculation of provision forgratuity for the current year has been done
on the basis of own valuation.
Provision for accrued leave encashment is made on the basis of own
valuation and charged to profit & loss account of the year.
m. Preliminary Expenditure
Expenses relating to the issue of GDR are accounted under the head
Preliminary Expenditure as Preliminary Expenses. Preliminary Expenses &
Share Issue Expenses are amortised over a period of ten years. A
preliminary expense related to ACR Plant has been amortized overa
period of five years.
n. Accounting for Taxes on Income
Tax expense comprises of current and deferred tax. Provision for
Current Tax is made on the assessable income at the tax rate applicable
to the relevant assessment year. Deferred Tax is recognised, subject to
the consideration of prudence, on timing differences, being the
difference between taxable income & accounting income that originates
in one period and are capable of reversal in one or more subsequent
periods.
o. Earning per share
Basic earnings per share is computed by dividing the net profit
attributable to equity share holders for the year, by weighted average
number of equity shares outstanding during the year. Diluted earning
per share is computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding at the year end.
p. Provisions & Contingencies
The company creates a provision when there is present obligation as a
result of past event that probably requires an outflow of resources and
a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
q. Contingent Liability:
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.
r. Events occurring after Balance Sheet date:
Assets and Liabilities are adjusted for significant events occurring
after the Balance Sheet date that provide additional evidences to
assist the estimation of accounts relating fo conditions existing at
the Balance Sheet date.
Mar 31, 2012
A. Presentation & Disclosure of Financial Statements
During the year ended 31st March 2012, the Revised Schedule VI notified
under the Companies Act, 1956 has become applicable to the company, for
the preparation and presentation of its financial statements. The
adoption of revised schedule VI does not impact the recognition and
measurement principles followed for preparation of financial
statements. The company has also classified previous year figures in
accordance with the requirements applicable in the current year.
b. Revenue Recognition
Sales are net of Excise Duty, Sales Tax, Trade discount & returns.
Income from Conversion of job work is accounted for on the basis of
dispatches made.
Interest & other incomes are accounted on accrual basis.
Dividend income is accounted for when the right to receive it is
established.
c. Cash & Cash Equivalents
Cash comprises of cash-on-hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
d. Foreign Currency transactions
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of
transaction. Transactions in foreign currency are recorded at the
exchange rate prevailing on the date of transaction. Realised gains and
losses on foreign exchange transactions during the year are recognised
in the Profit and Loss account. Exchange differences in respect of
foreign currency loans/liabilities relating to Fixed Assets are
accounted in the Profit and Loss Account.
Foreign currency current assets and current liabilities are translated
at year end rates. In circumstances, where the year end rate is not
stable / highly volatile, monetary items shall be reported based on the
subsequent actual realisation rate. Resulting gains / losses are
recognised in the profit and loss account. However resulting gains /
losses relating to 100 % subsidiary (considered as Non Integral Foreign
Operation) are accumulated in Foreign Currency Translation Reserve.
Non monetary items such as Investments/ Fixed Assets, denominated in
foreign currency are stated at exchange rate prevailing on the date of
transaction.
In respect of forward foreign exchange contracts, realized gain or loss
on cancellation of forward contracts is recognized in the profit & loss
account of the year in which they are cancelled.
e. Tangible Fixed assets
Fixed Assets are stated at cost including central sales tax, freight
and other incidental expenses incurred in relation to acquisition &
installation of the same, net of modvat and VAT.
The Foreign Exchange differences, in respect of Foreign Currency Loans
/ Liabilities relating to acquisition of Fixed Assets, are accounted in
the Profit and Loss Account.
Capital Work in Progress includes the cost of Fixed Assets that are not
ready for use at the Balance Sheet date.
Physical verification of fixed assets is carried out in phase manner in
three years. Shortage/excess, if any, is provided for in the year of
identification.
Borrowing cost on New ACR Plant has been capitalized as per AS -16,
Borrowing costs.
f. Depreciation on Tangible Fixed assets
The Depreciation is provided on fixed assets on written down value
method at the rates specified in the Schedule XIV of the Companies Act,
1956 on pro-rata basis for additions/deductions.
g. Intangible Assets
Intangible assets acquired separately are measured on initial
recognition on cost.
h. Leases
Finance leases, which effectively transfer to the company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized atthe inception of the lease term.
i. Borrowing Costs
Borrowing costs includes interest, amortization of ancillary cost
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost. Borrowing costs
directly attributable to the acquisition, construction or production of
an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalized as part of the cost
of the respective asset. All other borrowing costs are expensed in the
period they occur.
j. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. During the financial year
2010-11, company had invested in NC Middle East FZE which is its 100%
subsidiary situated in UAE.
k. Inventories
Raw Materials, Stores & Spares, and Packing Materials are valued at
lower of cost or net realisable value under the FIFO method. Stocks in
Process are valued at lower of cost or net realizable value under the
FIFO method. The cost is arrived at on full absorption basis as per
Accounting Standard AS 2 Valuation of Inventories.
Finished Goods are valued at lower of cost or net realizable value,
under the FIFO method. The cost is arrived at on full absorption basis
as per Accounting Standard AS 2 Valuation of Inventories.
Scraps are accounted for on realization.
I. Retirement benefits and leave wages
Company's contribution to Provident Fund, Pension Scheme & Workman
compensation Funds are charged to the Profit
& Loss Account on an accrual basis.
Calculation of provision for gratuity for the current year has been
done on the basis of own valuation.
Provision for accrued leave encashment is made on the basis of own
valuation and charged to profit & loss account of the year, m.
Preliminary Expenditure
Expenses relating to the issue of GDR are accounted under the head
Preliminary Expenditure as Preliminary Expenses. Preliminary Expenses
& Share Issue Expenses are amortised over a period often years.
Preliminary expenses related to ACR Plant has been amortized over a
period of five years.
n. Accounting for Taxes on Income
Tax expense comprises of current and deferred tax. Provision for
Current Tax is made on the assessable income at the tax rate applicable
to the relevant assessment year. Deferred Tax is recognised, subject to
the consideration of prudence, on timing differences, being the
difference between taxable income & accounting income that originates
in one period and are capable of reversal in one or more subsequent
periods.
o. Earning per share
Basic earnings per share is computed by dividing the net profit
attributable to equity share holders for the year, by weighted average
number of equity shares outstanding during the year. Diluted earning
per share is computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding at the year end.
p. Provisions & Contingencies
The company creates a provision when there is present obligation as a
result of past event that probably requires an outflow of resources and
a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
q. Contingent Liability:
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. Contingent liabilties are disclosed
in Notes forming part of financial statements.
r. Events occurring after Balance Sheet date:
Assets and Liabilities are adjusted for significant events occurring
after the Balance Sheet date that provide additional evidences to
assist the estimation of accounts relating to conditions existing at
the Balance Sheet date.
Face Value per share at the beginning of the F Y 2010-11 was Rs. 10/-.
Pursuant to the Shareholders approval on 16th Day of September, 2010,
your Company subdivided its equity share of the Face Value of Rs. 10/-
(Rupees Ten) each into Ten Equity Shares of Re.1/- (Rupee One) each,
which was effected from the record date 28th September, 2010. The
shares issued during the FY 2010-11, consists of 2,50,00,000 shares of
Rs.10 per share alloted against GDR and 8,87,90,000 Equity Shares
alloted on conversion of Equity Warrants. During the FY2011-12, your
Company has consolidated 10 Equity shares of face value of Re. 1/-
(Rupee One) each into One Equity share of the face value Rs.10/-
(Rupees Ten) each. pursuant to Shareholders approval on 16th Day of
September 2011, and was effected from the Record Date i.e. 3rd Day of
October 2011.
Mar 31, 2011
1. Basis of preparation of financial statements
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India, Accounting Standards
issued by the Institute of Chartered Accountants of India and the
relevant provisions of the Companies Act, 1956. These are based on the
historical cost convention method.
The Company generally follows mercantile system of accounting and
recognizes items of income and expenditure on accrual basis, except in
case of significant uncertainties.
2. Revenue Recognition
Sales are inclusive of excise duty but net of Sales Tax, Trade discount
& returns. Income from Conversion of job work is accounted for on the
basis of dispatches made. Interest & other incomes are accounted on
accrual basis.
3. Foreign Currency transactions
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Realised gains and losses on
foreign exchange transactions during the year are recognised in the
Profit and Loss account. Exchange differences in respect of foreign
currency loans/liabilities relating to Fixed Assets are accounted in
the Profit and Loss Account.
Foreign currency current assets and current liabilities are translated
at year end rates. In circumstances, where the year end rate is not
stable / highly volatile, monetary items shall be reported based on the
subsequent actual realisation rate. Resulting gains / losses are
recognised in the profit and loss account. However resulting gains /
losses relating to 100 % subsidiary (considered as Non à Integral
Foreign Operation) are accumulated in Foreign Exchange Translation
Reserve.
Non monetary items such as Investments / Fixed Assets, denominated in
foreign currency are stated at exchange rate prevailing on the date of
transaction.
In respect of forward foreign exchange contracts, realized gain or loss
on cancellation of forward contracts is recognized in the profit & loss
account of the year in which they are cancelled.
4. Fixed assets
Fixed Assets are stated at cost including central sales tax, freight
and other incidental expenses incurred in relation to acquisition &
installation of the same, net of modvat and VAT.
The Foreign Exchange differences, in respect of Foreign Currency Loans
/ Liabilities relating to acquisition of Fixed Assets, are accounted in
the Profit and Loss Account.
Capital Work in Progress includes the cost of Fixed Assets that are not
ready for use at the Balance Sheet date.
In respect of expenditure during construction of a new unit in a new
location in Silvassa, all direct capital expenditure as well as all
indirect expenditure incidental to construction is capitalized
allocating to various items of fixed assets on an appropriate basis.
Expansion programme involving construction concurrently run with normal
production activities in an existing unit, all direct capital
expenditure in relation to such expansion are capitalized but indirect
expenditure are charged to revenue.
Physical verification of fixed assets is carried out in phase manner in
three years. Shortage/excess, if any, is provided for in the year of
identification.
5. Depreciation
The Depreciation is provided on fixed assets on written down value
method at the rates specified in the Schedule XIV of the Companies Act,
1956 on pro-rata basis for additions/deductions.
Depreciation in respect of new plant will be charged after commencement
of commercial production.
6. Investments
Long Term Investments are stated at cost. During the year company has
invested in NC Middle east FZE which is its 100 % subsidiary situated
in UAE.
7. Inventories
a. Raw Materials, Stores & Spares, and Packing Materials are valued at
lower of cost or net realisable value under the FIFO method.
b. Stocks in Process are valued at lower of cost or net realizable
value under the FIFO method. The cost is arrived at on full absorption
basis as per Accounting Standard AS 2 Ã Valuation of Inventories.
c. Finished Goods are valued at lower of cost or net realizable value,
under the FIFO method. The cost is arrived at on full absorption basis
as per Accounting Standard AS 2 Ã Valuation of Inventories.
d. Scraps are accounted for on realization.
8. Retirement benefits and leave wages
a. Company's contribution to Provident Fund, Pension Scheme & Workman
compensation Funds are charged to the Profit & Loss Account on an
accrual basis.
b. Calculation of provision for gratuity for the current year has been
done on the basis of own valuation since actuarial valuation was not
available.
c. Provision for accrued leave encashment is made on accrual basis and
charged to Profit & Loss Account of the year.
9. Miscellaneous expenditure
Expenses relating to the issue of GDR in the current year are accounted
under the head Miscellaneous Expenditure as Preliminary Expenses.
Preliminary Expenses & Share Issue Expenses are amortised over a period
of ten years.
10.Accounting for Taxes on Income
a. Provisions for Current Tax are made on the assessable income at the
tax rate applicable to the relevant assessment year.
b. Deferred Tax is recognised, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income & accounting income that originates in one period and are
capable of reversal in one or more subsequent periods.
11.Earning per share
Basic earning per share is computed by dividing the net profit
attributable to equity share holders for the year, by weighted average
number of equity shares outstanding during the year. Diluted earning
per share is computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding at the year end.
12.Provisions & Contingencies
The company creates a provision when there is present obligation as a
result of past event that probably requires an outflow of resources and
a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
13.General:
13.1 Contingent Liability:
Contingent Liabilities are disclosed in Notes forming part of accounts.
13.2 Events occurring after Balance Sheet date:
Assets and Liabilities are adjusted for significant events occurring
after the Balance Sheet date that provide additional evidences to
assist the estimation of accounts relating to conditions existing at
the Balance Sheet date.
Mar 31, 2010
1. Basis of preparation of financial statements
The financial statements have been prepared under historical cost
convention, in accordance with the generally accepted accounting
principles and accounting standards referred to in Section 211 (3C) of
the Companies Act, 1956.
2. Revenue recognition
a. The Company generally follows mercantile system of accounting and
recognises items of income and expenditure on accrual basis, except in
case of significant uncertainties.
b. Sales are inclusive of excise duty but net of Sales Tax,Trade
discount & returns.
3. Fixed assets
Fixed Assets are stated at cost including central sales tax, freight
and other incidental expenses incurred in relation to acquisition &
installation of the same, net of modvat and VAT.
4. Depreciation
The Depreciation is provided on fixed assets on written down value
method at the rates specified in the Schedule XIV of the Companies Act,
1956 on pro-rata basis for additions/deductions.
5. Investments
Long Term Investments are stated at cost.
6. Inventories
a. Raw Materials, Stores & Spares, and Packing Materials are valued at
lower of cost or net realisable value under the FIFO method.
b. Stocks in Process are valued at lower of cost or net realizable
value under the FIFO method.The cost is arrived at on full absorption
basis as per Accounting Standard AS 2 -Valuation of Inventories.
c. Finished Goods are valued at lower of cost or net realizable value,
under the FIFO method.The cost is arrived at on full absorption basis
as per Accounting Standard AS 2 -Valuation of Inventories.
7. Retirement benefits and leave wages
a. Companys contribution to Provident Fund, Pension Scheme & Workman
compensation Funds are charged to the Profit & Loss Account on an
accrual basis.
b. Gratuity benefit payable at the time of retirement is charged to
Profit & Loss Account on the basis of actuarial valuation.The Company
maintained Gratuity fund with LIC of India group gratuity scheme.
c. Provision for accrued leave encashment is made on accrual basis and
charged to Profit & Loss Account of the year.
8. Miscellaneous expenditure
Preliminary Expenses & Share Issue Expenses are amortised over a period
often years.
9. Foreign currency transactions
Foreign Currency transaction relating to Current Assets and Current
Liabilities outstanding at the close of the financial year are
revalorised at the appropriate exchange rates at the close of the year.
The gain or loss due to decrease/increase in rupee liability on account
of fluctuations in the rate of exchange is adjusted to Profit & Loss
Account.
10. Taxation
a. Provisions for Current Tax are made on the assessable income at the
tax rate applicable to the relevant assessment year.
b. Deferred Tax for Timing differences between the tax profit and book
Profit is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognised to the extent there is reasonable certainty
that these assets can be realised in future wherever applicable.