Mar 31, 2014
1. Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the applicable accounting
standards notified under the Companies (Accounting Standards) Rules,
2006, (as amended) and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared on an accrual basis
and under the historical cost convention.
2. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
3. Tangible fixed assets and depreciation
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
Depreciation is provided using Straight Line Method at the rates
estimated by the Management which coincides with the rates prescribed
under Schedule XIV of the Companies Act, 1956.
4. Impairment
The carrying amounts of assets are reviewed at each balance sheet date
to see if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of
money and risks specific to the asset.
5. Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the of borrowings and exchange differences
arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
Notes forming part of the financial statement for the year ended March
31,2014
6. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
7. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
(i) Revenue from sale of goods
Sales are recognized net of returns and trade discounts, on transfer of
significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
(ii) Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
(iii) Dividends
Dividend income is recognized when the company''s right to receive
dividend is established by the reporting date.
8. Inventory Valuation
Inventories are valued at the lower of cost and the net realizable
value after providing for obsolescence and other losses, where
considered necessary. Cost includes all charges in bringing the goods
to the point of sale, including octroi and other levies, transit
insurance and receiving charges. Work-in-progress and finished goods
include appropriate proportion of overheads and, where applicable,
excise duty.
9. Foreign currency translation
(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency,
by applying the exchange rate between the reporting currency and the
foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(iii) Exchange differences
Exchange differences arising on the settlement of monetary items or on
reporting Company''s monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
Mar 31, 2012
1. Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the applicable accounting
standards notified under the Companies (Accounting Standards) Rules,
2006, (as amended) and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared on an accrual basis
and under the historical cost convention.
2. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
3. Tangible fixed assets and depreciation
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
Depreciation is provided using Straight Line Method at the rates
estimated by the Management which coincides with the rates prescribed
under Schedule XIV of the Companies Act, 1956.
4. Impairment
The carrying amounts of assets are reviewed at each balance sheet date
to see if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of
money and risks specific to the asset.
5. Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the of borrowings and exchange differences
arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
6. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
7. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
(i) Revenue from sale of goods
Sales are recognized net of returns and trade discounts, on transfer of
significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
(ii) Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
(iii) Dividends
Dividend income is recognized when the company's right to receive
dividend is established by the reporting date.
8. Inventory Valuation
Inventories are valued at the lower of cost and the net realizable
value after providing for obsolescence and other losses, where
considered necessary. Cost includes all charges in bringing the goods
to the point of sale, including octroi and other levies, transit
insurance and receiving charges. Work-in-progress and finished goods
include appropriate proportion of overheads and, where applicable,
excise duty.
9. Foreign currency translation
(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency,
by applying the exchange rate between the reporting currency and the
foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(iii) Exchange differences
Exchange differences arising on the settlement of monetary items or on
reporting Company's monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
10. Retirement and other employee benefits
(i) Retirement benefit in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the Statement
of Profit and Loss of the year when the contributions to the respective
funds are due. There are no other obligations other than the
contribution payable to the provident fund.
(ii) Gratuity liability is defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on
estimates. Long term compensated absences are provided for based on
actuarial valuation. The actuarial valuation is done as per projected
unit credit method.
(iv) Actuarial gains/losses are immediately taken to statement of
profit and loss.
(v) The company presents the entire leave as a current liability in the
balance sheet, since it does not have an unconditional right to defer
its settlement for 12 months after the reporting date.
11. Income tax
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
12. Provisions
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
Mar 31, 2011
I) System of Accounting
The Company follows the mercantile system of accounting.
ii) Transactions in Foreign Currency
Foreign currency transactions are recorded at exchange rate prevailing
on the date of the transaction. All foreign currency assets and
liabilities, if any, as at Balance Sheet date are translated into
rupees at the applicable exchange rate prevailing on that date. All
exchange differences are dealt with in the Profit & Loss Account,
except those relating to acquisition of Fixed Assets, which are
adjusted in the Cost of Fixed Assets.
iii) Revenue Recognition
Revenue is recognised on completion of sale of goods, rendering of
services and / or use of Company's resources by third parties.
iv) Sales Turnover
Sales Turnover is expressed net of Excise Duty.
v) Excise Duty
The payments for Excise Duty on Finished Goods are accounted for as and
when such goods are cleared from the factory premises. Provision is
made for goods manufactured and lying in the Bonded Warehouses in the
factory premises. CENVAT benefit is accounted on receipt of materials
from suppliers and appropriated against payment of Excise Duty to clear
finished goods.
vi) Contingent Liabilities
Contingencies which can be reasonably ascertained are provided for, if,
in the opinion of the Company, there is a probability that the future
outcome may be materially detrimental to the Company.
vii) General
Accounting Policies not specifically referred to are consistent with
generally accepted accounting practices.
Mar 31, 2010
I) System of Accounting
The Company follows the mercantile system of accounting.
ii) Transactions in Foreign Currency
Foreign currency transactions are recorded at exchange rate prevailing
on the date of the transaction. All foreign currency assets and
liabilities, if any, as at Balance Sheet date are translated into
rupees at the applicable exchange rate prevailing on that date. All
exchange differences are dealt with in the Profit & Loss Account,
except those relating to acquisition of Fixed Assets, which are
adjusted in the Cost of Fixed Assets.
Hi) Revenue Recognition
Revenue is recognised on completion of sale of goods, rendering of
services and/or use of Companys resources by third parties.
iv) Sales Turnover
Sales Turnover is expressed net of Excise Duty.
v) Excise Duty
The payments for Excise Duty on Finished Goods are accounted for as and
when such goods are cleared from the factory premises. Provision is
made for goods manufactured and lying in the Bonded Warehouses in the
factory premises. CENVAT benefit is accounted on receipt of materials
from suppliers and appropriated against payment of Excise Duty to clear
finished goods.
vi) Contingent Liabilities
Contingencies which can be reasonably ascertained are provided for, if,
in the opinion of the Company, there is a probability that the future
outcome may be materially detrimental to the Company.
vii) General
Accounting Policies not specifically referred to are consistent with
generally accepted accounting practices.