Mar 31, 2015
1. 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, the provisions of the companies Act, 1956 and the
applicable accounting standards. The company follows mercantile system
of accounting and recognizes income and expenditure on accrual basis.
2. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of Assets and Liabilities
on the date of the financial statements and the reported amount of
Revenues and Expenses during the reporting period. Difference between
the actual results and the estimates are recognized in the period in
which the same are known/ materialized.
3. FIXED ASSETS:
1. Fixed Assets are stated at cost of acquisition or construction ( net
of CENVAT/VAT credit availed) less accumulated
depreciation/amortization and impairment loss, if any.
2. Cost comprises of purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
3. Exchanges differences arising on liabilites relating to acquisation
of depreciable fixed assets are adjusted to the cost of respective
assets and depreciated over the remaing useful life of such assets
4. foreign currency TRANSACTIONS/TRANSLATION:
Foreign currency transactions denominated in foreign currencies are
recorded at the rate of exchange prevailing on the date of transaction.
Exchange differences, if any, arising out transactions settled during
the quarter are recognized in the profit & loss account.
Monetary items denominated in foreign currency as at the balance sheet
date are translated at the closing exchange rate on that date. The
Exchange differences, if any, are recognized in the profit & loss
account. Non monetary foreign currency items are carried at cost.
The premium in respect of forward exchange contract is amortized over
the life of the contract. The net gain or loss on account of any
exchange difference, cancellation or renewal of such forward exchange
contracts is recognized in the Profit & Loss Account in the reporting
period.
5. CASH Flow Statements
Cash flows are reported using indirect method, whereby profit/(loss) is
adjusted for the effects of the transation are adjusted with non cash
transaction and any difference or accuruals of past or future cash
reciepts or payments. The cash flows from operating, investing and
finacing activites of the company are segregated based on available
information
6. INvENTORIES :
1. Raw Material
The company is valuing Raw material, packing material and stores stock
by taking costs of purchase consist of the purchase price including
duties and taxes (other than those subsequently recoverable by the
enterprise from the taxing authorities), freight inwards and other
expenditure directly attributable to the acquisition. Trade discounts,
rebates, duty drawbacks, finance cost and other similar items are
deducted in determining value of the stock of Raw materials. In
determining the cost the First In First Out (FIFO) method is used.
2. Finished Goods and Work in process
Finished Goods and Work in process are valued at cost or net realizable
value, whichever is lower. The cost is determined by reducing from the
sales value of inventory the appropriate percentage of gross margin
depending on the stage of completion.
7. REVENUE RECOGNITION:
1. Revenue from sale of goods is recognized when the significant risks
and rewards in respect of ownership of products are transferred by the
company.
2. Revenue from product sale is stated net of returns, sales tax/VAT
and applicable trade discounts and allowances.
3. Interest income is recognized on time accrual basis.
8. INVESTMENTS:
1. Investments that are readily realisable and intended to be held for
not more than one year from the date of investment are classified as
current investments. All other investments are classified as long-term
investments.
2. Current investments are carried at the lower of cost and realisable
value, determined on an individual investment basis.
3. Long-term investments are carried at cost less any
other-than-temporary diminution in value, determined separately in
respect of each category of investment.
9. EXPORT BENEFITS:
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
10. excise DuTY/cuSTOM duty:
Excise duty / Customs duty has been accounted on the basis of payments
made in respect of goods cleared. Modvat credit on raw materials and
capital goods has been accounted for, by reducing the purchase cost of
raw materials and capital goods respectively.
11. DEpREcIATION/AMORTIZATION :
1. Intangible Assets :
The intangible assets (Other than computer software) are amortized over
a period of 10 years.
2. Tangible Assets :
Depreciation on tangible assets is provided on the straight line method
over the useful lives of assets as prescribed under Part C of Schedule
II of the Companies Act 2013. Depreciation for assets purchased/sold
during a period is proportionately charged.
Cost of leasehold land is amortized over the period of lease.
12. EMpLOYEE Benefits:
1. Short Term Employee Benefits:
All short- term employee benefits such as salaries, wages, bonus,
special awards, medical benefits which fall due within twelve months of
the period in which the employee renders the related services which
entitles him to avail such benefits and non-accumulating compensated
absences are recognized on an undiscounted basis charged to the profit
and loss account.
2. Provision for Gratuity is made and provided on actuarial valuation
basis.
Other retirement benefits are accounted as per company's policy.
13. taxes on income
Income Taxes are accounted for in accordance with Accounting Standard
22 (AS 22) "Accounting for Taxes on Income". Tax expense comprises
of Current Tax and Deferred Tax:
1. Current Tax is determined as the amount of tax payable in respect of
taxable income for the year.
2. Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to Timing Differences, between the
taxable income and accounting income, that originate in one period and
are capable of reversal in one or more periods. Deferred tax assets are
recognised only to the extent there is reasonable certainty that the
assets can be realized in the future, however when there is unabsorbed
depreciation or carry forward loss under taxation laws, deferred tax
assets are recognised only if there is a virtual certainty of
realisation of such assets. Deferred tax assets are reviewed as at each
balance sheet date and written down or written-up to reflect the amount
that is reasonably / virtually certain (as the case may be) to be
realised."
14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
Notes to Accounts. Contingent Assets are neither recognized nor
disclosed in the financial statements.
15. BORROWING COST:
Borrowing cost attributable to acquisitions and construction of capital
goods are capitalized as a part of cost of such assets up to the date
when such assets are ready for its intended use and all other borrowing
costs are charged to profit & loss Account.
16. IMPAIRMENT OF Assets:
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit and Loss account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
17. Research and development costs:
Revenue expenditure on research and development is expensed out under
the respective heads of account in the year in which it is incurred.
Expenditure on development activities, whereby research findings are
applied to a plan or design for the production of new or substantially
improved products and processes, is capitalised, if the cost can be
reliably measured, the product or process is technically and
commercially feasible and the Company has sufficient resources to
complete the development and to use and sell the asset. The expenditure
capitalised includes the cost of materials, direct labour and an
appropriate proportion of overheads that are directly attributable to
preparing the asset for its intended use. Other development expenditure
is recognised in the Profit and Loss account as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated
amortisation and impairment losses. Fixed assets used for research and
development are depreciated in accordance with the Company's policy.
18. LOANS AND ADVANcES:
Loans and advances are stated net of provision for bad and doubtful
items if any and recoveries are written back to the profit and loss
account when received.
19. security premium account:
Any expensed incurred for raising of funds from securities are adjusted
against security premium account.
20. changes IN accounting policies :
There are no changes in the accounting policies during the reported
period.
Mar 31, 2014
1. 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, the provisions of the companies Act, 1956 and the
applicable accounting standards. The company follows mercantile system
of accounting and recognizes income and expenditure on accrual basis.
2. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of Assets and Liabilities
on the date of the financial statements and the reported amount of
Revenues and Expenses during the reporting period. Difference between
the actual results and the estimates are recognized in the period in
which the same are known/materialized.
3. FIXED ASSETS:
1. Fixed Assets are stated at cost of acquisition or construction (
net of CENVAT/VAT credit availed) less accumulated
depreciation/amortization and impairment loss, if any.
2. Cost comprises of purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
3. Exchanges differences arising on liabilites relating to acquisation
of depreciable fixed assets are adjusted to the cost of respective
assets and depreciated over the remaining useful life of such assets.
4. FOREIGN CURRENCY TRANSACTIONS/TRANSLATION:
Foreign currency transactions denominated in foreign currencies are
recorded at the rate of exchange prevailing on the date of transaction.
Exchange differences, if any, arising out of transactions settled
during the quarter are recognized in the profit & loss account.
Monetary items denominated in foreign currency as at the balance sheet
date are translated at the closing exchange rate on that date. The
Exchange differences, if any, are recognized in the profit & loss
account. Non monetary foreign currency items are carried at cost.
The premium in respect of forward exchange contract is amortized over
the life of the contract. The net gain or loss on account of any
exchange difference, cancellation or renewal of such forward exchange
contracts is recognized in the Profit & Loss Account in the reporting
period.
5. CASH FLOW STATEMENTS
Cash flows are reported using indirect method, whereby profit/(loss) is
adjusted for the effects of the transaction are adjusted with non cash
transaction and any difference or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the company are segregated based on available
information.
6. INVENTORIES :
1. Raw Material
The company is valuing Raw material, packing material and stores stock
by taking costs of purchase consist of the purchase price including
duties and taxes (other than those subsequently recoverable by the
enterprise from the taxing authorities), freight inwards and other
expenditure directly attributable to the acquisition. Trade discounts,
rebates, duty drawbacks, finance cost and other similar items are
deducted in determining value of the stock of Raw materials. In
determining the cost the First In First Out (FIFO) method is used.
2. Finished Goods and Work in process
Finished Goods and Work in process are valued at cost or net realizable
value, whichever is lower. The cost is determined by reducing from the
sales value of inventory the appropriate percentage of gross margin
depending on the stage of completion.
7. REVENUE RECOGNITION:
1. Revenue from sale of goods is recognized when the significant risks
and rewards in respect of ownership of products are transferred by the
company.
2. Revenue from product sale is stated net of returns, sales tax/VAT
and applicable trade discounts and allowances.
3. Interest income is recognized on time accrual basis.
8. INVESTMENTS:
1. Investments that are readily realisable and intended to be held for
not more than one year from the date of investment are classified as
current investments. All other investments are classified as long-term
investments.
2. Current investments are carried at the lower of cost and realisable
value, determined on an individual investment basis.
3. Long-term investments are carried at cost less any
other-than-temporary diminution in value, determined separately in
respect of each category of investment.
9. EXPORT BENEFITS:
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
10. EXCISE DUTY/CUSTOM DUTY:
Excise duty / Customs duty has been accounted on the basis of payments
made in respect of goods cleared. Modvat credit on raw materials and
capital goods has been accounted for, by reducing the purchase cost of
raw materials and capital goods respectively.
11. DEPRECIATION/AMORTIZATION :
1. Intangible Assets :
The intangible assets (Other than computer software) are amortized over
a period of 10 years.
2. Tangible Assets :
Depreciation on all fixed assets is provided as per the provisions of
Companies Act, 1956 on Written Down Value Method. Depreciation is
calculated on pro-rata basis from month of installation till the month
of the assets are sold/ disposed off. Cost of leasehold land is
amortized over the period of lease.
12. EMPLOYEE BENEFITS:
1. Short Term Employee Benefits:
All short- term employee benefits such as salaries, wages, bonus,
special awards, medical benefits which fall due within twelve months of
the period in which the employee renders the related services which
entitles him to avail such benefits and nonÂaccumulating compensated
absences are recognized on an undiscounted basis charged to the profit
and loss account.
2. Provision for Gratuity is made and provided on actuarial valuation
basis. Other retirement benefits are accounted as per company''s
policy.
13. TAXES ON INCOME
Income Taxes are accounted for in accordance with Accounting Standard
22 (AS 22) "Accounting for Taxes on Income". Tax expense comprises of
Current Tax and Deferred Tax:
1. Current Tax is determined as the amount of tax payable in respect of
taxable income for the year.
2. Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to Timing Differences, between the
taxable income and accounting income, that originate in one period and
are capable of reversal in one or more periods. Deferred tax assets are
recognised only to the extent there is reasonable certainty that the
assets can be realized in the future, however when there is unabsorbed
depreciation or carry forward loss under taxation laws, deferred tax
assets are recognised only if there is a virtual certainty of
realisation of such assets. Deferred tax assets are reviewed as at each
balance sheet date and written down or written-up to reflect the amount
that is reasonably / virtually certain (as the case may be) to be
realised."
14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
Notes to Accounts. Contingent Assets are neither recognized nor
disclosed in the financial statements.
15. BORROWING COST:
Borrowing cost attributable to acquisitions and construction of capital
goods are capitalized as a part of cost of such assets up to the date
when such assets are ready for its intended use and all other borrowing
costs are charged to profit & loss Account.
16. IMPAIRMENT OF ASSETS:
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit and Loss account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
17. RESEARCH AND DEVELOPMENT COSTS:
Revenue expenditure on research and development is expensed out under
the respective heads of account in the year in which it is incurred.
Expenditure on development activities, whereby research findings are
applied to a plan or design for the production of new or substantially
improved products and processes, is capitalised, if the cost can be
reliably measured, the product or process is technically and
commercially feasible and the Company has sufficient resources to
complete the development and to use and sell the asset. The expenditure
capitalised includes the cost of materials, direct labour and an
appropriate proportion of overheads that are directly attributable to
preparing the asset for its intended use. Other development expenditure
is recognised in the Profit and Loss account as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated
amortisation and impairment losses. Fixed assets used for research and
development are depreciated in accordance with the Company''s policy.
18. LOANS AND ADVANCES:
Loans and advances are stated net of provision for bad and doubtful
items if any and recoveries are written back to the profit and loss
account when received.
19. SECURITY PREMIUM ACCOUNT:
Any expenses incurred for raising of funds from securities are adjusted
against security premium account.
20. CHANGES IN ACCOUNTING POLICIES :
There are no changes in the accounting policies during the reported
period.
Mar 31, 2013
1. BasIs of preparatIon of fInanCIal statements:
The fnancial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India, the provisions of the Companies Act, 1956 and the
applicable accounting standards. The company follows mercantile system
of accounting and recognizes income and expenditure on accrual basis.
2. use of estImates:
The preparation of fnancial statements requires estimates and
assumptions that affect the reported amount of Assets and Liabilities
on the date of the fnancial statements and the reported amount of
Revenues and Expenses during the reporting period. Difference between
the actual results and the estimates are recognized in the period in
which the same are known/materialized.
3. fIXed assets:
1. Fixed Assets are stated at cost of acquisition or construction (
net of CENVAT/VAT credit availed) less accumulated depreciation/
amortization and impairment loss, if any.
2. Cost comprises of purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
4. foreIGn CurrenCy transaCtIons/translatIon:
Foreign currency transactions denominated in foreign currencies are
recorded at the rate of exchange prevailing on the date of transaction.
Exchange differences, if any, arising out of transactions settled
during the year are recognized in the Proft & Loss account.
Monetary items denominated in foreign currency as at the balance sheet
date are translated at the closing exchange rate on that date. The
Exchange differences, if any, are recognized in the proft & loss
account. Non monetary foreign currency items are carried at cost.
The premium in respect of forward exchange contract is amortized over
the life of the contract. The net gain or loss on account of any
exchange difference, cancellation or renewal of such forward exchange
contracts is recognized in the Proft & Loss Account in the reporting
period.
5. InventorIes :
1. raw material
The company is valuing raw material, packing material and stores stock
by taking costs of purchase which consists of the purchase price
including duties and taxes (other than those subsequently recoverable
by the enterprise from the taxing authorities), freight inwards and
other expenditure directly attributable to the acquisition. Trade
discounts, rebates, duty drawbacks, fnance cost and other similar items
are deducted in determining value of the stock of raw materials. In
determining the cost the First In First Out (FIFO) method is used.
2. finished Goods and Work in process
Finished Goods and Work in process are valued at cost or net realizable
value, whichever is lower. The cost is determined by reducing from the
sales value of inventory the appropriate percentage of gross margin
depending on the stage of completion.
6. revenue reCoGnItIon:
1. Revenue from sale of goods is recognized when the signifcant risks
and rewards in respect of ownership of products are transferred by the
company.
2. Revenue from product sale is stated net of returns, sales tax/VAT
and applicable trade discounts and allowances.
3. Interest income is recognized on time accrual basis.
7. Investments:
1.Investments that are readily realisable and intended to be held for
not more than one year from the date of investment are classifed as
current investments. All other investments are classifed as long-term
investments.
2. Current investments are carried at the lower of cost and realisable
value, determined on an individual investment basis.
3. Long-term investments are carried at cost less any
other-than-temporary diminution in value, determined separately in
respect of each category of investment.
8. eXport BenefIts:
Export benefts available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
9. eXCIse duty/Custom duty:
Excise duty / Customs duty has been accounted on the basis of payments
made in respect of goods cleared. Cenvat credit on raw materials and
capital goods has been accounted for, by reducing the purchase cost of
raw materials and capital goods respectively.
10. depreCIatIon/amortIZatIon :
1. Intangible assets :
The intangible assets (other than computer software) are amortized over
a period of 10 years. Computer Software is depreciated at the rate
specifed in Schedule XIV of the Companies Act, 1956.
2. tangible assets :
Depreciation on all fxed assets is provided as per the provisions of
Companies Act, 1956 on Written Down Value Method. Depreciation is
calculated on pro-rata basis from month of installation till the month
of the assets are sold/ disposed off. Cost of leasehold land is
amortized over the period of lease.
11. employee BenefIts:
1. Short Term Employee Benefts:
All short- term employee benefts such as salaries, wages, bonus,
special awards, medical benefts which fall due within twelve months of
the period in which the employee renders the related services which
entitles him to avail such benefts and non accumulating compensated
absences are recognized on an undiscounted basis charged to the Proft
and Loss account.
2. provision for Gratuity is made and provided on actuarial valuation
basis.
Other retirement benefts are accounted as per company''s policy.
12. taXes on InCome
Income Taxes are accounted for in accordance with Accounting Standard
22 (AS 22) "Accounting for Taxes on Income". Tax expense comprises of
Current Tax and Deferred Tax:
1. Current Tax is determined as the amount of tax payable in respect
of taxable income for the year.
2. Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to Timing Differences, between the
taxable income and accounting income, that originate in one period and
are capable of reversal in one or more periods. Deferred tax assets are
recognised only to the extent there is reasonable certainty that the
assets can be realized in the future, however when there is unabsorbed
depreciation or carry forward loss under taxation laws, deferred tax
assets are recognised only if there is a virtual certainty of
realisation of such assets. Deferred tax assets are reviewed as at each
balance sheet date and written down or written-up to refect the amount
that is reasonably / virtually certain (as the case may be) to be
realised.
13. provIsIons, ContInGent lIaBIlItIes and ContInGent assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outfow of resources.
Contingent liabilities are not recognized but are disclosed in the
Notes to Accounts. Contingent Assets are neither recognized nor
disclosed in the fnancial statements.
14. BorroWInG Cost:
Borrowing cost attributable to acquisitions and construction of capital
goods are capitalized as a part of cost of such assets up to the date
when such assets are ready for its intended use and all other borrowing
costs are charged to Proft & Loss Account.
15. ImpaIrment of assets:
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Proft and Loss account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
refected at the recoverable amount.
16. researCH and development Costs:
Revenue expenditure on research and development is expensed out under
the respective heads of account in the year in which it is incurred.
Expenditure on development activities, whereby research fndings are
applied to a plan or design for the production of new or substantially
improved products and processes, is capitalised, if the cost can be
reliably measured, the product or process is technically and
commercially feasible and the Company has suffcient resources to
complete the development and to use and sell the asset. The
expenditure capitalised includes the cost of materials, direct labour
and an appropriate proportion of overheads that are directly
attributable to preparing the asset for its intended use. Other
development expenditure is recognised in the Proft and Loss account as
an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated
amortisation and impairment losses. Fixed assets used for research and
development are depreciated in accordance with the Company''s policy.
17. loans and advanCes:
Loans and advances are stated net of provision for bad and doubtful
items if any and recoveries are written back to the proft and loss
account when received.
18. seCurIty premIum aCCount:
Any expensed incurred for raising of funds from securities are adjusted
against security premium account.
19. CHanGes In aCCountInG polICIes :
There are no changes in the accounting policies during the reported
period.
Mar 31, 2012
1. 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, the provisions of the companies Act. 1956 and the
applicable accounting standards. The company follows mercantile system
of accounting and recognizes income and expenditure on accrual basis.
2. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of Assets and Liabilities
on the date of the financial statements and the reported amount of
Revenues and Expenses during the reporting period. Difference between
the actual results and the estimates are recognized in the period in
which the same are known/materialized.
3. FIXED ASSETS:
1. Fixed Assets a restated at cost of acquisition or construction (
net of CENVAT/VAT credit availed) less accumulated
depreciation/amortization and impairment loss, if any
2. Cost comprises of purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
4. FOREIGN CURRENCY TRANSACTIONS/TRANSLATION:
Foreign currency transactions denominated in foreign currencies are
recorded at the rate of exchange prevailing on the date of transaction.
Exchange differences, if any, arising out transactions settled during
the year are recognized in the profit & loss account.
Monetary items denominated in foreign currency as at the balance sheet
date are translated at the closing exchange rate on that date. The
Exchange differences, if any. are recognized in the profit & loss
account. Non monetary foreign currency items are carried at cost. The
premium in respect of forward exchange contract is amortized over the
Life of the contract. The not gain or loss on account of any exchange
difference, cancellation or renewal of such forward exchange contracts
is recognized in the Profit & Loss Account in the reporting period,
5. INVENTORIES:
1. Raw Material
The company is valuing Raw material packing material and stores &
spares by taking costs of purchase consist of the purchase price
including duties and taxes (other than those subsequently recoverable
by the enterprise from the taxing authorities), freight inwards and
other expenditure directly attributable to the acquisition. Trade
discounts, rebates. duty drawbacks, finance cost and other similar
items are deducted in determining value of the stock of Raw materials,
Packing material and stores & spares. In determining the cost the First
In First Out (FIFO) method is used.
2. Finished Goods and Work in process
Finished Goods and Work in process are valued at cost or net realizable
value, whichever is lower The cost is determined by reducing from the
sales value of inventory the appropriate percentage of gross margin
depending on the stage of completion.
6. REVENUE RECOGNITION:
1. Revenue from sale of goods is recognized when the significant risks
and rewards in respect of ownership of products are transferred by the
company.
2. Revenue from product sale is stated net of returns. sales tax/VAT
and applicable trade discounts and allowances.
3. Interest income is recognized on time accrual basis.
7. INVESTMENTS:
1. Investments that are readily realisable and intended to be held for
not more than one year from the date of investment are classified as
current investments, All other investments are classified as long-term
investments,
2. Current investments are carried at the lower of cost and realisable
value, determined on an individual investment basis.
3. Long-term investments are carried at cost less any other-
than-temporary diminution in value, determined separately in respect of
each category of investment.
8 EXPORT BENEFITS:
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
9. EXCISE DUTY/CUSTOM DUTY:
Excise duty/ Customs duty has been accounted on the basis of payments
made in respect of goods cleared. Modvat credit on raw materials and
capital goods has been accounted for. by reducing the purchase cost of
raw materials and capital goods respectively,
10. DEPRECIATION AND AMORTIZATION :
1. Intangible Assets:
The intangible assets (Other than computer software) are amortized over
a period of 10 years.
Computer Software is depreciated at the rate specified in Schedule XIV
of the Companies Act, 1956.
2. Tangible Assets :
Depreciation on all fixed assets is provided as per the provisions of
Companies Act, 1956 on Written Down Value Method. Depreciation is
calculated on pro-rata basis from month of installation till the month
of the assets are sold/ disposed off.Cost of leasehold land is
amortized over the period of Lease.
11. EMPLOYEE BENEFITS:
1. Short Term Employee Benefits: All short- term employee benefits
such as salaries, wages, bonus, special awards. medical benefits which
fall due within twelve months of the period in which the employee
renders the related services which entitles him to avail such benefits
and non- accumulating compensated absences are recognised on an
undiscounted basis charged to the profit and Loss account.
2. Precision for Gratuity is made and provided on actuarial valuation
basis. Other retirement benefits are accounted as per company's policy.
12. TAXES ON INCOME
Income Taxes are accounted for in accordance with Accounting Standard
22 (AS 22) "Accounting for Taxes on Income". Tax expense comprises of
Current Tax and Deferred Tax:
1. Current Tax is determined as the amount of tax payable in respect of
taxable income for the year 2. Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to Timing
Differences. between the taxable income and accounting income, that
originate in one period and are capable of reversal in one or more
periods. Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realized in the future,
however when there is unabsorbed depreciation or carry forward loss
under taxation laws, deferred tax assets are recognised only if there
is a virtual certainty of realisation of such assets. Deferred tax
assets are reviewed as at each balance sheet date and written down or
written-up to reflect the amount that is reasonably /virtually certain
las the case may to be realised."
13. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS;
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
Notes to Accounts. Contingent Assets are neither recognized nor
disclosed in the financial statements.
14. BORROWING COST:
Borrowing cost attributable to acquisitions and construction of capital
goods are capitalized as a part of cost of such assets up to the date
when such assets are ready for its intended use and all other borrowing
costs are charged to profit & loss Account.
15. IMPAIRMENT OF ASSETS:
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is Less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit and Loss account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment Loss no
Longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount,
16. RESEARCH AND DEVELOPMENT COSTS:
Revenue expenditure on research and development is expensed out under
the respective heads of account in the year in which it is incurred,
Expenditure on development activities, whereby research findings are
applied to a plan or design for the production of new or substantially
improved products and processes. is capitalised, if the cost can be
reliably measured, the product or process is technically and
commercially feasible and the Company has sufficient resources to
complete the development and to use and sell the asset. The expenditure
capitalised includes the cost of materials, direct Labour and an
appropriate proportion of overheads that are directly attributable to
preparing the asset for its intended use, Other development expenditure
is recognised in the Profit and Loss account as an expense as incurred.
Capitalised development expenditure is stated at cost Less accumulated
amortisation and impairment losses, Fixed assets used for research and
development are depreciated in accordance with the Company's policy.
17. LOANS AND ADVANCES
Loans and advances are stated net of provision for bad and doubtful
items if any and recoveries are written back to the profit and loss
account when received,
18. SECURITY PREMIUM ACCOUNT:
Any expensed incurred for raising of funds from securities are adjusted
against security premium account,
19. CHANGES IN ACCOUNTING POLICIES :
There are no changes in the accounting policies during the reported
period.
Mar 31, 2011
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, the provisions of the companies Act, 1956 and the
applicable accounting standards. The company follows mercantile system
of accounting and recognizes income and expenditure on accrual basis.
b) USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions that affect the reported amount of Assets and Liabilities
on the date of the financial statements and the reported amount of
Revenues and Expenses during the reporting period. Difference between
the actual results and the estimates are recognized in the period in
which the same are known/materialized.
c) FIXED ASSETS:
Fixed Assets are recorded and stated at cost, net of excise duty
(CENVAT) and VAT less accumulated depreciation and impairment loss, if
any. Cost includes all direct and indirect costs relating to the
acquisition and installation of fixed assets, interest on borrowed
funds, if any, used to finance/construction of fixed assets ready for
commercial use. Leasehold land is amortised over the period of lease.
d) FOREIGN CURRENCY TRANSACTIONS/TRANSLATION:
Foreign currency transactions denominated in foreign currencies are
recorded at the rate of exchange prevailing on the date of transaction.
Exchange differences, if any, arising out transactions settled during
the year are recognized in the profit & loss account.
Monetary items denominated in foreign currency as at the balance sheet
date are translated at the closing exchange rate on that date. The
Exchange differences, if any, are recognized in the profit & loss
account. Non monetary foreign currency items are carried at cost.
The premium in respect of forward exchange contract is amortized over
the life of the contract. The net gain or loss on account of any
exchange difference, cancellation or renewal of such forward exchange
contracts is recognized in the Profit & Loss Account in the reporting
period.
e) INVENTORIES:
1) The company is valuing Raw material, packing material and stores
stock by taking costs of purchase consist of the purchase price
including duties and taxes (other than those subsequently recoverable
by the enterprise from the taxing authorities), freight inwards and
other expenditure directly attributable to the acquisition. Trade
discounts, rebates, duty drawbacks, finance cost and other similar
items are deducted in determining value of the stock of Raw materials.
In determining the cost the First In First Out (FIFO) method is used.
2) Finihed Goods & WIP are valued taking into consideration Material
cost plus share of labour and manufacturing overheads. Finished goods
are valued at cost or net realizable value whichever is lower.
f) REVENUE RECOGNITION:
i) Revenue from sale of goods is recognized when the significant risks
and rewards in respect of ownership of products are transferred by the
company.
ii) Revenue from product sale is stated net of returns, sales tax/VAT
and applicable trade discounts and allowances.
iii) Interest income is recognized on time accrual basis.
g) INVESTMENTS:
Investments that are readily realisable and intended to be held for not
more than one year from the date of investment are classified as
current investments. All other investments are classified as long-term
investments. Current investments are carried at the lower of cost and
realisable value, determined on an individual investment basis.
Long-term investments are carried at cost less any other-than-temporary
diminution in value, determined separately in respect of each category
of investment.
h) EXPORT BENEFITS:
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
i) EXCISE DUTY/CUSTOM DUTY:
Excise duty / Customs duty has been accounted on the basis of payments
made in respect of goods cleared. Modvat credit on raw materials and
capital goods has been accounted for, by reducing the purchase cost of
raw materials and capital goods respectively.
j) DEPRECIATION:
Depreciation on all fixed assets is provided as per the provisions of
Companies Act, 1956 on Written Down Value Method.
k) EMPLOYEE BENEFITS:
a) Short Term Employee Benefits:
All short- term employee benefits such as salaries, wages, bonus,
special awards, medical benefits which fall due within twelve months of
the period in which the employee renders the related services which
entitles him to avail such benefits and non-accumulating compensated
absences are recognized on an undiscounted basis charged to the profit
and loss account.
b) Provision for Gratuity is made and provided on actuarial valuation
basis. Other retirement benefits are accounted as per company's
policy.
I) TAXES ON INCOME
Income Taxes are accounted for in accordance with Accounting Standard
22 (AS 22) "Accounting for Taxes on Income". Tax expense comprises of
Current Tax and Deferred Tax:
a) Current Tax is determined as the amount of tax payable in respect of
taxable income for the year.
b) "Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to Timing Differences, between the
taxable income and accounting income, that originate in one period and
are capable of reversal in one or more periods. Deferred tax assets are
recognised only to the extent there is reasonable certainty that the
assets can be realized in the future, however when there is unabsorbed
depreciation or carry forward loss under taxation laws, deferred tax
assets are recognised only if there is a virtual certainty of
realisation of such assets. Deferred tax assets are reviewed as at each
balance sheet date and written down or written-up to reflect the amount
that is reasonably / virtually certain (as the case may be) to be
realised."
m) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
Notes to Accounts. Contingent Assets are neither recognized nor
disclosed in the financial statements.
n) BORROWING COST:
Borrowing cost attributable to acquisitions and construction of capital
goods are capitalized as a part of cost of such assets up to the date
when such assets are ready for its intended use and all other borrowing
costs are charged to profit & loss Account.
O) IMPAIRMENT OF ASSETS:
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit and Loss account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
p) CHANGES IN ACCOUNTING POLICIES:
There have been no changes in accounting policies during the reported
period.
q) RESEARCH AND DEVELOPMENT COSTS:
Revenue expenditure on research and development is expensed out under
the respective heads of account in the year in which it is incurred.
Expenditure on development activities, whereby research findings are
applied to a plan or design for the production of new or substantially
improved products and processes, is capitalised, if the cost can be
reliably measured, the product or process is technically and
commercially feasible and the Company has sufficient resources to
complete the development and to use and sell the asset. The expenditure
capitalised includes the cost of materials, direct labour and an
appropriate proportion of overheads that are directly attributable to
preparing the asset for its intended use. Other development expenditure
is recognised in the Profit and Loss account as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated
amortisation and impairment losses. Fixed assets used for research and
development are depreciated in accordance with the Company's policy.
r) LOANS AND ADVANCES:
Loans and advances are stated net of provision for bad and doubtful
items if any and recoveries are written back to the profit and loss
account when received.
s) SECURITY PREMIUM ACCOUNT:
Any expenses incurred for raising of funds from securities are adjusted
against security premium account.
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