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Accounting Policies of Oricon Enterprises Ltd. Company

Mar 31, 2015

A System of Accounting

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting, in accordance with accounting principles generally accepted in India ('Indian GAAP') and comply with the Accounting Standards notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014 and the provisions of the Companies Act, 2013, (the 'Act').

b Revenue Recognition

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed on to the customers. Revenue is recorded exclusive of sales tax. Sales / Turnover include sales value of goods and excise duty thereon wherever applicable.

Revenue from services is recognized on rendering of services to the customers. Revenue is recorded exclusive of service tax.

Interest income is recognized on the time proportion basis.

Dividend income is recognized when right to receive is established. c Fixed Assets and Depreciation

Fixed Asset

(i) Fixed Assets are stated at cost of acquisition, inclusive of freight, duties, taxes, borrowing cost, erection expenses / commissioning expenses etc. up to the date the assets are put to use.

(ii) Modvat Credit availed on purchase of fixed assets is reduced from the cost of respective assets.

Depreciation / Amortisation:

(i) The Company provides depreciation on Plant and Machineries on straight line method and on other assets on written down value method using the limits specified in Schedule II of the Companies Act, 2013 except for in case of Building, Residential Flats and Plant & Machinery for Petrochemical Division, the depreciation is provided based on the management estimate of the useful life which is different from that prescribed in Schedule II of the Companies Act, 2013, details of which are as given below:

Assets Management Estimate of Useful Life inYears



Buildings 61.35 Years

Residential Flats 61.35 Years

Plant & Machinery for Petrochemical Division 21Years

Assets Useful life as per the limits prescribed in Schedule II of the

Companies Act, 2013 in Years

Buildings 60 Years

Residential Flats 60 Years

Plant & Machinery for 25 Years Petrochemical Division

This is based on the consistent practices followed, past experience, internal assessment and duly supported by technical advice.

(ii) Depreciation for assets purchased / sold during a period is proportionately charged.

(iii) Fixed assets whose aggregate cost is Rs.5,000 or less are depreciated fully in the year of acquisition.

(iv) Leasehold Land is amortized over the period of lease.

(v) Software are amortised on straight line basis based on the useful life of 3 years, which in management's estimate represents the period during which economic benefits will be derived from their use.

d Investments

Long Term Investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

e Inventory

(i) Raw materials are valued at cost (net of modvat) or net realisable value whichever is lower. Cost is ascertained on first in first out (FIFO) basis except in case of raw material liquid colorant where cost is determined on the basis of weighted average method.

(ii) Finished goods and work in process inventory are valued at cost or net realisable value whichever is lower.

(iii) Stocks of Shares are valued at cost or market value whichever is lower.

(iv) Fuel, Stores, Spares and Consumables are valued at weighted average cost or net realisable value whichever is lower.

f Excise and Customs Duty

Excise and Customs Duty payable in respect of finished goods and raw-material lying at factory/bonded premises are provided for and included in the valuation of inventory.

g Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date for impairment so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous periods.

h Employee Benefits

(i) Defined Contribution Plan

Company's contribution towards Superannuation Scheme with Life Insurance Corporation of India, Provident Fund, Employee's State Insurance Scheme, Government Welfare Fund and Employee's Deposit Linked Insurance are accounted for on accrual basis.

(ii) Defined Benefit Plan

Liability on account of Gratuity is accounted for on the basis of Actuarial Valuation at the end of each year.

(iii) Other Long term

Liability on account of other long term benefit such as 'leave encashment' is made on the basis of actuarial valuation at the end of the year.

(iv) Other ShortTerm

Employee Benefits are charged to revenue in the year in which the related services are rendered.

i Debentures Issue expenses

Debentures issue expenses are adjusted against securities premium.

j Government Grants

Special Capital Incentives received for setting up a unit in backward area is treated as capital reserve. k Foreign ExchangeTransaction

(i) The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Current Assets and Current Liabilities in foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

The resulting Exchange Difference, if any, is charged to the Statement of Profit and Loss.

l Export Benefit/Incentive

The unutilised Export benefits / incentives against Export as on the Balance Sheet date are recognised as Income of the year.

m Borrowing Costs

Borrowing Costs directly attributable to the acquisition or construction of Fixed Assets are capitalised as part of the cost of the Assets, up to the date the Assets are put to use. Other Costs are charged to the Statement of Profit and Loss in the year in which they are incurred.

n Earning Per Share (E.P.S.)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year-end, except where the results would be anti dilutive.

o Taxes on income

(i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the balance sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Statement of Profit and Loss of the respective year of change.

(iii) Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization.

(iv) At each balance sheet date the carrying amount of deferred tax assets is reviewed to reassure realization.

p Other Accounting Policies

These are consistent with the generally accepted accounting practices.






Mar 31, 2014

A System of Accounting

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting, in accordance with accounting principles generally accepted in India (''Indian GAAP'') and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006 issued by the Central Government (which continues to be applicable in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013) and the provisions of the Companies Act, 1956, (the ''Act'') to the extent applicable.

b Revenue Recognition

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed on to the customers. Revenue is recorded exclusive of sales tax. Sales / Turnover include sales value of goods and excise duty thereon wherever applicable.

Revenue from services is recognized on rendering of services to the customers. Revenue is recorded exclusive of service tax.

Interest income is recognized on the time proportion basis.

Dividend income is recognized when right to receive is established.

c Fixed Assets and Depreciation

Fixed Asset

(i) Fixed Assets are stated at cost of acquisition, inclusive of freight, duties, taxes, borrowing cost, erection expenses / commissioning expenses etc. up to the date the assets are put to use.

(ii) Modvat Credit availed on purchase of fixed assets is reduced from the cost of respective assets.

Depreciation / Amortisation:

(i) Depreciation has been provided for on straight line method on Plant and Machineries, acquired up to 31st March 1988, at the rates prevailing at the time of the acquisition (as per circular 2/89 dated 07.03.1989 issued by Department of Company Affairs) and for Plant and Machineries, acquired after 31st March 1988, at the rates as per Schedule XIV of the Companies Act, 1956.

(ii) Leasehold Land is amortized over the period of lease.

(iii) Software are amortised on straight line basis based on the useful life of 3 years, which in management''s estimate represents the period during which economic benefits will be derived from their use.

(iv) Depreciation on other assets has been provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

d Investments

Long Term Investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

e Inventory

(i) Raw materials are valued at cost (net of modvat) or net realisable value whichever is lower. Cost is ascertained on first in first out (FIFO) basis except in case of raw material liquid colorant where cost is determined on the basis of weighted average method.

(ii) Finished goods and work in process inventory are valued at cost or net realisable value whichever is lower.

(iii) Stocks of Shares are valued at cost or market value whichever is lower.

(iv) Fuel, Stores, Spares and Consumables are valued at weighted average cost or net realisable value whichever is lower.

f Excise and Customs Duty

Excise and Customs Duty payable in respect of finished goods and raw-material lying at factory/bonded premises are provided for and included in the valuation of inventory.

g Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date for impairment so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous periods.

h Employee Benefits

(i) Defined Contribution Plan

Company''s contribution towards Superannuation Scheme with Life Insurance Corporation of India, Provident Fund, Employee''s State Insurance Scheme, Government Welfare Fund and Employee''s Deposit Linked Insurance are accounted for on accrual basis.

(ii) Defined Benefit Plan

Liability on account of Gratuity is accounted for on the basis of Actuarial Valuation at the end of each year.

(iii) Other Long term

Liability on account of other long term benefit such as ''leave encashment'' is made on the basis of actuarial valuation at the end of the year.

(iv) Other Short Term

Employee Benefits are charged to revenue in the year in which the related services are rendered.

i Debentures Issue expenses

Debentures issue expenses are adjusted against securities premium.

j Government Grants

Special Capital Incentives received for setting up a unit in backward area is treated as capital reserve.

k Foreign Exchange Transaction

(i) The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Current Assets and Current Liabilities in foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

The resulting Exchange Difference, if any, is charged to the Statement of Profit and Loss.

l Export Benefit/Incentive

The unutilised Export benefits / incentives against Export as on the Balance Sheet date are recognised as Income of the year.

m Borrowing Costs

Borrowing Costs directly attributable to the acquisition or construction of Fixed Assets are capitalised as part of the cost of the Assets, up to the date the Assets are put to use. Other Costs are charged to the Statement of Profit and Loss in the year in which they are incurred.

n Earning Per Share (E.P.S.)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year-end, except where the results would be anti dilutive.

o Taxes on income

(i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the balance sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Statement of Profit and Loss of the respective year of change.

(iii) Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization.

(iv) At each balance sheet date the carrying amount of deferred tax assets is reviewed to reassure realization.

p Other Accounting Policies

These are consistent with the generally accepted accounting practices.

b. Term / Right attached to equity Share

The Company has only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share.The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors, in their meeting on 29th May, 2014, proposed a final dividend of Re.0.19 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on 11th September, 2014. Further, the Board of Directors, in their meeting on 14th March, 2014, has paid an interim dividend of Re.0.25 per equity share. The total dividend appropriation for the year ended 31st March, 2014 amounted to Rs.45,120,995/- excluding corporate dividend tax.

During the year ended 31st March, 2013, the amount of per share final dividend recognized as distributions to equity shareholders was Re.0.44. The total dividend appropriation for the year ended 31st March, 2013 amounted to Rs.45,120,995/- excluding corporate dividend tax.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

c. Terms of conversion / redemption of CCPS

The Company had issued 1,09,00,000 CCPS of Rs.10 each on 17th September, 2010. CCPS carry a cumulative dividend of 10% p.a. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors, in their meeting on 14th March, 2014, has paid an interim dividend to CCP shareholders was Re.1. The total dividend appropriation for the year ended 31st March, 2014 amounted to Rs.10,900,000/-excluding corporate dividend tax.

During the year ended 31st March, 2013, the amount of per share final dividend recognized as distributions to CCP shareholders was Re.1. The total dividend appropriation for the year ended 31st March, 2013 amounted to Rs.10,900,000/- excluding corporate dividend tax.

The CCPS shall be converted into equity shares in the ratio of five (5) new equity share of the face value of Rs.2/- each of the Company for every one (1) CCPS of the face value of Rs.10/- each credited as fully paid up.

Out of the total 1,09,00,000, 10% CCPS, 19,00,000 CCPS are convertible into equity shares anytime after 1st April, 2011 but within a period of five years from the date of allotment i.e. 17th September, 2010, 30,00,000 CCPS are convertible into equity shares anytime after 1st April, 2012 but within a period of five years from the date of allotment i.e. 17th September, 2010 on equal proportionate basis amongst CCPS holders to the extent of their holding in the Company and 60,00,000 CCPS are convertible into equity shares anytime after 1st April, 2013 but within a period of five years from the date of allotment i.e. 17th September, 2010 on equal proportionate basis amongst CCPS holders to the extent of their holding in the Company.

25% of above 1,09,00,000 CCPS numbering to 27,25,000 equity shares arising out of conversion of CCPS shall be kept under lock-in for three years from the date of listing of new shares on the Bombay Stock Exchange.

d. Share held by holding/ultimate holding company and/or their subsidiary/associates

None of the shares of the Company are hold by the Subsidiaries, Associates or Joint Ventures of the Company

As per records of Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

g. Shares reserved for issue under options

For details of shares reserved for issue on conversion of CCPS, please refer note 2 (c) regarding terms of conversion / redemption of preference shares.

a. Indian Rupee Loan from banks (Unsecured) includes Term Loan amounting to Rs.112,775,862/- taken from Bank and carries interest @ Base Rate 2.50% TP (current applicable rate of interest is 12.75%). The Loan is repayable in 82 monthly installments of Rs.3,000,000/- each starting from September 2011 to June 2018 along with interest. Further, the said loan is guaranteed by the personal guarantee of three directors of the Company.

b. Indian Rupee Loan from banks (Unsecured) includes Term Loan amounting to Rs.88,472,828/- taken from Bank and carries interest @ Base Rate 3.15% (current applicable rate of interest is 13.15%). The Loan is repayable in 120 monthly installments of Rs.1,152,592/- each starting from September 2012 and Rs.284,059/- starting from October 2012 along with interest.

c. Indian Rupee Loan from banks (Secured) represents Term Loan amounting to Rs.8,222,625/- taken from Bank and carries interest @ Base Rate 3.25% TP (current applicable rate of interest is 14%). The Term Loan is secured by way of hypothecation / mortgage of land and building, plant and machinery installed / to be installed out of proposed new plant at Murbad. The said Loan is repayable in 16 Quarterly installments of Rs.2,875,000/- each and interest will be paid on monthly basis as and when charged. Further, the said loan is guaranteed by the Corporate Guarantee and personal guarantee of three directors of the Company.

d. Deferred payments credits (Secured) represents Vehicle Loan amounting to Rs.338,865/- taken from Bank and carries interest @ 11.45%. The Loan is repayable in 36 monthly installments. The Loans are secured against hypothecation of Specific Capital Assets i.e. Motor Cars.

e. Deferred payments credits (Secured) represents Vehicle Loan amounting to Rs.6,635,770/- taken from Others and carries interest in the range of 9.74% to 14.76%. The Loan is repayable in 35 to 36 monthly installments. The Loans are secured against hypothecation of Specific Capital Assets i.e. Motor Cars.

f. Deferred sales tax represents the Certificate of Entitlement issued by the Joint Director of Industries, Konkan Division, Thane on the basis of section 89 of the Maharashtra Value Added Tax Act 2002 ("M V A T Act") read with rule 81 of the M.V.A.T. Rules 2005 in respect of the manufacturing unit located at Savroli, Post- Khopoli to defer the sales tax liability as per the returns / assessment pertaining to the period from 01-July-2010 to 30-June-2012. The Company shall pay the entire amount in equal annual installments not exceeding five such installments on expiry of 10th year and also as per the provisions of Rules 81 M.V.A.T. Rules 2005.

g. Inter Corporate Deposits (Unsecured) are interest free.

h. Fixed Deposits (Unsecured) represents Deposits borrowed from Public. The said deposit carried interest in the range of 6% to 15%. However during the year, all unclaimed Fixed Deposit has been transferred to Investor Education Protection Fund (IEPF).


Mar 31, 2013

A System of Accounting

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting, in accordance with accounting principles generally accepted in India (''Indian GAAP'') and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the provisions of the Companies Act, 1956, (the ''Act") to the extent applicable.

b Revenue Recognition

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed an to the customers. Revenue Is recorded exclusive of sales tax. Sales /Turnover Include sales value of goods and excise duty thereon wherever applicable.

Revenue from services is recognized on rendering of services to the customers. Revenue is recorded exclusive of service tax.

Interest income is recognized on the time proportion basis.

Dividend income is recognized when right to receive is established.

c Fixed Assets and Depreciation

Fixed Asset

(i) Fixed Assets are staled at cost of acquisition, inclusive of freight, duties, taxes, borrowing cost, erection expenses / commissioning expenses etc. up to the date the assets are put to use.

(II) Modvat Credit availed on purchase of fixed assets Is reduced from the cost of respective assets.

Depreciation /Amortisation:

(i) Depreciation has been provided for on straight line method on Plant and Machineries, acqui red up to 31 st March 1988, at the rates prevailing at the time of the acquisition (as per circular 2/89 dated 07.03.1989 Issued by Department of Company Affairs) and for Plant and Machineries, acquired after 31st March 19S8, at the rates as per Schedule XIV of the Companies Act, 1956.

(II) Leasehold Land Is amortized over the period of lease.

(lii) Software are amortised on straight line basis based on the useful life of 3 years, which In management''s estimate represents the period during which economic benefits wi II be derived from their use.

(iv) Depreciation on other assets has been provided on written down value method at the rates specified In Schedule XIV of the Companies Act, 1956.

d Investments

Long Term Investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

e Inventory

(i) Raw materials are valued at cost (net of modvat) or net realisable value whichever is lower. Cost is ascertained on first in first out (FIFO) basis except in case of raw material liquid colorant where cost Is determined on the basis of weighted average method.

(li) Finished goods and work in process inventory are valued at cost or net realisable value whichever is lower.

(iii) Stocks of Shares are valued at cost or market value whichever is Icwe -

(Iv) Fuel, Stores, Spares and Consumables are valued at weighted average cost or net realisable value whichever is lower.

f Excise and Customs Duty

Excise and Customs Duty payable in respect of finished goods and raw-material lying at factory/bonded premises are provided for and included in the valuation of inventory.

g Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date for impai rment so as to determine the provision for impairment loss, if any, required, orthe reversal, if any, required of impairment loss recognized in previous periods.

h Employee Benefits

(I) Defined Contribution Plan

Company''s contribution towards Superannuation Scheme with Life Insurance Corporation of Indie, Provident Fund, Employee''s State Insurance Scheme, Government Welfare Fund and Employee''s Deposit Linked Insurance are accounted for on accrual basis.

(II) Defined Benefit Plan

Liability on account of Gratuity Is accounted for on the basts of Actuarial Val jailor at the end of each year,

(III) Other Long term

Liability on account of otfier long term benefit such as leave encashment'' Is made on the basis ol actuarial valuation at the end of the year.

(iv) Other Short Term

Employee Benefits are charged to revenue in the year in which the related services are rendered.

I Debentures Issue expenses

Debentures issue expenses are adjusted against securities premium.

j Government Grants

Special Capital Incentives received for setting up a unit in backward area is treated as capital reserve.

k Foreign Exchange Transaction

(I) The transactions In foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

(li) Current Assets and Current Liabilities In foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevaili ng on the date of Balance Sheet.

The resulting Exchange Difference, if any, is charged to the Statement of Profit and Loss.

I Export Benefit/Incentive

The unutilised Export benefits/ incentives against Export as on the Balance Sheet date are recognised as I ncome of the year.

m Borrowing Costs

Borrowing Costs directly attributable to the acquisition or construction ol Fixed Assets are capitalised as part of the cost of the Assets, up to the date the Assets are put lo use. Other Costs are charged to the Statement of Profit and Loss in the year in wh ich they are incurred.

n Earning Per Share (E.P.S.)

Basic EPS Is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS Is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year-end, except where the results would be anti dilutive.

o Taxes on income

(i) Cu rrent tax is measured at Ihe amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(il) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the balance sheet date. Deferred lax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in Ihe Statement of Profit and Loss of the respective year of change.

(Hi) Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only If there Is a virtual certainty of Its realization supported by convincing evidence, Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty oi its realization.

(iv) At each balance sheet date the carrying amount of deterred tax assets is reviewed to reassure realization.

p Other Accounting Policies

These are consistent with the generally accepted accounting practices.


Mar 31, 2012

A System of Accounting

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting, in accordance with accounting principles generally accepted in India ('Indian GAAP') and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the provisions of the Companies Act, 1956, (the 'Act') to the extent applicable.

b Revenue Recognition

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed on to the customers. Revenue is recorded exclusive of sales tax. Sales/Turnover include sales value of goods and excise duty thereon wherever applicable.

Revenue from services is recognized on rendering of services to the customers. Revenue is recorded exclusive of service tax.

Interest income is recognized on the time proportion basis.

c Fixed Assets and Depreciation Fixed Asset

(i) Fixed Assets are stated at cost of acquisition, inclusive of freight, duties, taxes, borrowing cost, erection expenses/commissioning expenses etc. up to the date the assets are put to use.

(ii) Modvat Credit availed on purchase of fixed assets is reduced from the cost of respective assets.

Depreciation:

(i) Depreciation has been provided for on straight line method on Plant and Machineries, acquired up to 31st March 1988, at the rates prevailing at the time of the acquisition (as per circular 2/89 dated 07.03.1989 issued by Department of Company Affairs) and for Plant and Machineries, acquired after 31a March 1988, at the rates as per Schedule XIV of the Companies Act, 1956.

(ii) Leasehold Land is amortized over the period of lease.

(iii) Depreciation on other assets has been provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

d Investments

Long Term Investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

e Inventory

(i) Raw materials are valued at cost (net of modvat) or net realisable value whichever is lower. Cost is ascertained on first in first out (FIFO) basis except in case of raw material liquid colorant where cost is determined on the basis of weighted average method.

(ii) Finished goods and work in process inventory are valued at cost or net realisable value whichever is lower.

(iii) Stocks of Shares are valued at cost or market value whichever is lower.

(iv) Fuel, Stores, Spares and Consumables are valued at weighted average cost or net realisable value whichever is lower.

f Excise and Customs Duty

Excise and Customs Duty payable in respect of finished goods and raw- material lying at factory/bonded premises are provided for and included in the valuation of inventory.

g Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date for impairment so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous periods.

h Employee Benefits

(i) Defined Contribution Plan

Company's contribution towards Superannuation Scheme with Life Insurance Corporation of India, Provident Fund, Employee's State Insurance Scheme, Government Welfare Fund and Employee's Deposit Linked Insurance are accounted for on accrual basis.

(ii) Defined Benefit Plan

Liability on account of Gratuity is accounted for on the basis of Actuarial Valuation at the end of each year.

(iii) Other Long term

Liability on account of other long term benefit such as 'leave encashment' is made on the basis of actuarial valuation at the end of the year.

(iv) Other Short Term

Employee Benefits are charged to revenue in the year in which the related services are rendered.

i Debentures Issue expenses

Debentures issue expenses are adjusted against securities premium.

j Government Grants

Special Capital Incentives received for setting up a unit in backward area is treated as capital reserve.

k Foreign Exchange Transaction

(i) The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Current Assets and Current Liabilities in foreign currency out standing at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

The resulting Exchange Difference, if any, is charged to the Statement of Profit and Loss.

I Export Benefit/Incentive

The unutilised Export benefits / incentives against Export as on the Balance Sheet date are recognised as Income of the year.

m Deferred Revenue Expenditure

(i) Expenditure in the nature of miscellaneous expenditure repre- sented by Deferred Revenue Expenditure (Voluntary Termination Benefits) are amortized in accordance with Accounting Standard

15 (Revised) 'Employee Benefits' issued by the Institute of Chartered Accountants of India.

(ii) Premium paid on prepayment and refinancing of term loans is charged off over the tenor of the new loans.

n Borrowing Costs

Borrowing Costs directly attributable to the acquisition or construction of Fixed Assets are capitalised as part of the cost of the Assets, up to the date the Assets are put to use. Other Costs are charged to the Statement of Profit and Loss in the year in which they are incurred.

o Earning Per Share(E.P.S.)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year-end, except where the results would be anti dilutive.

p Taxes on income

(i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the balance sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences be- tween the taxable income and accounting income. The effect of tax rate change is considered in the Statement of Profit and Loss of the respective year of change.

(iii) Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization.

(iv) At each balance sheet date the carrying amount of deferred tax assets is reviewed to reassure realization.

q Other Accounting Policies

These are consistent with the generally accepted accounting practices.


Mar 31, 2011

1. System of Accounting

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting, in accordance with accounting principles generally accepted in India ('Indian GAAP') and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the provisions of the Companies Act, 1956, (the 'Act') to the extent applicable.

2. Revenue Recognition

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed on to the customers. Revenue is recorded exclusive of sales tax. Sales /Turnover includes sales value of goods and excise duty thereon wherever applicable.

Revenue from services is recognized on rendering of services to the customers. Revenue is recorded exclusive of service tax.

Interest income is recognized on the time proportion basis.

3. Fixed Assets and Depreciation

a. Fixed Asset:

i. Fixed Assets are stated at cost of acquisition, inclusive of freight, duties, taxes, borrowing cost, erection expenses/ commissioning expenses etc. up to the date the assets are put to use.

ii. Modvat Credit availed on purchase of fixed assete is reduced from the cost of respective assets.

iii. Exchange difference on account of foreign exchange fluctuation, if any, is charged to profit & loss Account.

b. Depreciation:

i. Depreciation has been provided for on straight line method on Plant and Machineries, acquired up to 31st March 1988, at the rates prevailing at the time of the acquisition (as per circular 2/89 dated 07.03.1989 issued by Department of Company Affairs) and for Plant and Machineries, acquired after 31st March 1988, at the rates as per Schedule XIV of the Companies Act, 1956.

ii. Leasehold Land is amortized over the period of lease.

iii. Depreciation on other assets has been provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

4. Investments

Long Term Investments are valued at cost. Provision for diminution in value of investment is made to recognise a decline other than temporary.

5. Inventory

a) Raw materials are valued at cost (net of modvat) or net realisable value whichever is lower. Cost is ascertained on first in first out (Fl FO) basis except in case of raw material liquid colorant where cost is determined on the basis of weighted average method.

b) Finished goods and work in process inventory are valued at cost or net realisable value whichever is lower.

c) Stocks of Shares are valued at cost or market value whichever is lower.

d) Fuel, Stores, Spares and Consumables are valued at weighted average cost or net realisable value whichever is lower.

6. Excise and Customs Duty

Excise and Customs Duty payable in respect of finished goods and raw-material lying at factory/bonded premises are provided for and included in the valuation of inventory.

7. Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date for impairment so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous periods.

8. Employee Benefits

a) Defined Contribution Plan

Company's contribution towards Superannuation Scheme with Life Insurance Corporation of India, Provident Fund, Employee's

State Insurance Scheme, Government Welfare Fund and Employee's Deposit Linked Insurance are accounted for on accrual basis.

b) Defined Benefit Plan

Liability on account of Gratuity is accounted for on the basis of Actuarial Valuation at the end of each year.

c) Other Long term

Liability on account of other long term benefit such as 'leave encashment' is made on the basis of actuarial valuation at the end of the year.

d) Other Short Term

Employee Benefits are charged to revenue in the year in which the related services are rendered.

9. Debentures Issue expenses

Debentures issue expenses are adjusted against securities premium.

10. Government Grants

Special Capital Incentives received for setting up a unit in backward area is treated as capital reserve.

11. Foreign Exchange Transaction

a. The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

b. Current Assets and Current Liabilities in Foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

The resulting Exchange Difference, if any, is charged to the Profit & Loss Account.

12. Export Benefit/Incentive

The unutilised Export benefits / incentives against Export as on the Balance Sheet date are recognised as Income of the year.

13. Deferred Revenue Expenditure

a. Expenditure in the nature of miscellaneous expenditure represented by Deferred Revenue Expenditure (Voluntary Termination Benefits) are amortized in accordance with Accounting Standard 15 (Revised) 'Employee Benefits' issued by the Institute of Chartered Accountants of India.

b. Premium paid on prepayment and refinancing of term loans is charged off over the tenor of the new loans.

14. Borrowing Costs

Borrowing Costs directly attributable to the acquisition or construction of Fixed Assets are capitalised as part of the cost of the Assets, up to the date the Assets are put to use. Other Costs are charged to the Profit and Loss Account in the year in which they are incurred.

15. Earning Per Share (E.P.S.)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year-end, except where the results would be anti dilutive.

16. Taxes on income

a) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

b) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the balance sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the profit and loss account of the respective year of change.

c) Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization.

d) At each balance sheet date the carrying amount of deferred tax assets is reviewed to reassure realization.

17. Other Accounting Policies

These are consistent with the generally accepted accounting practices.


Mar 31, 2010

1. System of Accounting

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting, in accordance with accounting principles generally accepted in India (Indian GAAP) and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the provisions of the Companies Act, 1956, (the Act) to the extent applicable.

2. Revenue Recognition

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed on to the customers. Revenue is recorded exclusive of sales tax. Sales / Turnover includes sales value of goods and excise duty thereon wherever applicable. Revenue from services is recognized on rendering of services to the customers. Revenue is recorded exclusive of service tax. Interest income is recognized on the time proportion basis.

3. Fixed Assets and Depreciation

a. Fixed Asset:

i. Fixed Assets are stated at cost of acquisition, inclusive of freight, duties, taxes, borrowing cost, erection expenses/ commissioning expenses etc. up to the date the assets are put to use.

ii. Modvat Credit availed on purchase of fixed assets is reduced from the cost of respective assets.

iii. Exchange difference on account of foreign exchange fluctuation, if any, is charged to profit & loss Account.

b. Depreciation:

i. Depreciation has been provided for on straight line method on Plant and Machineries, acquired up to 31st March 1988, at the rates prevailing at the time of the acquisition (as per Circular 2/89 dated 07.03.1989 issued by Department of Company,Affairs) and for Plant and Machineries, acquired after 31s1 March 1988, at the rates as per Schedule XIV of the Companies Act, 1956.

ii. Leasehold Land is amortized over the period of lease.

iii. Depreciation on other assets has been provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

4. Investments

Long Term Investments are valued at cost. Provision for diminution in value investment is made to recognise a decline other than temporary.

5. Inventory

a) Raw materials are valued at cost (net of modvat) or net realisable value which ever is lower. Cost is ascertained on first in first out (FIFO) basis.

b) Finished goods and work in process inventory are valued at cost or net realisable value whichever is lower.

c) Stock of Shares are valued at cost or market value whichever is lower.

d) Fuel, Stores, Spares and Consumables are valued at weighted average cost or net realisable value whichever is lower.

6. Excise and Customs Duty

Excise and Customs Duty payable in respect of finished goods and raw-material lying at factory/bonded premises are provided for and included in the valuation of inventory.

7. Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date for impairment so as to determine the provision for impairment loss, if any, required, or the reversal, if any, required of impairment loss recognized in previous periods.

8. Employee Benefits

a) Defined Contribution Plan

Companys contribution towards Superannuation Scheme with Life Insurance Corporation of India, Provident Fund, Employees State Insurance Scheme, Government Welfare Fund and Employees Deposit Linked Insurance are accounted for on accrual basis.

b) Defined Benefit Plan

Liability on account of Gratuity is accounted for on the basis of Actuarial Valuation at the end of each year.

c) Other Long term

Liability on account of other long term benefit such as leave encashment is made on the basis of actuarial valuation at the end of the year.

d) Other Short Term

Employee Benefits are charged to revenue in the year in which the related services are rendered.

9. Debentures Issue expenses

Debentures issue expenses are adjusted against securities premium.

10. Government Grants

Special Capital Incentives received for setting up a unit in backward area is treated as capital reserve.

11. Foreign Exchange Transaction

a. The transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction.

b. Current Assets and Current Liabilities in Foreign currency outstanding at the Balance Sheet date are translated at the exchange rates prevailing on the date of Balance Sheet.

The resulting Exchange Difference, if any, is charged to the Profit & Loss Account.

12. Export Benefit/Incentive

The unutilised Export benefits / incentives against Export as on the Balance Sheet date are recognised as Income of the year.

13. Deferred Revenue Expenditure

a. Expenditure in the nature of miscellaneous expenditure represented by Deferred Revenue Expenditure (Voluntary Termination Benefits) are amortized in accordance with Accounting Standard 15 (Revised) Employee Benefits issued by the Institute of Chartered Accountants of India.

b. Premium paid on prepayment and refinancing of term loans is charged off over the tenor of the new loans.

14. Borrowing Costs

Borrowing Costs directly attributable to the acquisition or construction of Fixed Assets are capitalised as part of the cost of the Assets, up to the date the Assets are put to use. Other Costs are charged to the Profit and Loss Account in the year in which they are incurred.

15. Earning Per Share (E.P.S.)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year-end, except where the results would be anti dilutive.

16. Taxes on income

a) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

b) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the balance sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the profit and loss account of the respective year of change.

c) Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization.

d) At each balance sheet date the carrying amount of deferred tax assets is reviewed to reassure realization.

17. Other Accounting Policies

These are consistent with the generally accepted accounting practices.

 
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