Mar 31, 2014
A) Basis of preparation of financial statements
These financial statements have been prepared in accordance with
generally accepted accounting principles in India under the historical
cost convention on an accrual basis. Pursuant to circular 15/2013 dated
September 13, 2013 read with circular 08/2014 dated April 4, 2014, till
the standards of accounting or any addendum there to are prescribed by
Central Government in consultation and recommendation of the National
Financial Reporting Authority, the existing accounting standard
notified under the Companies Act, 1956 shall continue to apply.
Consequently these financial statements have been prepared to comply in
all material respects with the accounting standards notified under
Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as
amended] and the other relevant provisions of the Companies Act, 1956
(the ÂActÂ).
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make estimates and assumption that affect
the reported amounts of assets and liabilities and disclosure of the
contingent liabilities as at the date of the financial statements and
the amount of income and expenses during the period reported under the
financial statement. Difference between the actual results and
estimates are recognized in the period in which the results are known/
materialized.
c) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(i) Sale of products are recognized on transfer of all significant
risks and rewards of ownership of the goods on to the buyer, which is
generally on dispatch of goods.
(ii) Service income is recognized, when the related services are
provided.
(iii) Interest income is recognized on time proportion basis taking
into account the amount outstanding and the rate applicable.
(iv) Dividends are recorded when the right to receive payment is
established.
d) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
accumulated impairment loss (if any). The cost of a fixed asset
comprises its purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
e) Depreciation
Depreciation on fixed assets has been provided in a manner that
amortizes the cost of the assets over their estimated useful lives as
detailed below:
(i) On a straight-line method at the rates determined in the year of
acquisition under section 205 (b) of the Companies Act, 1956 on single
shift basis except in case of plant & machinery and Electrical
installation, where depreciation has been provided on triple shift
basis.
(ii) Leasehold land has not been amortized over the primary year of the
lease.
f) Intangible Assets
Intangible assets are stated at costs less accumulated depreciation.
Intangible Assets (Computer Software) is amortized over a period of 5
years on straight line method.
g) Impairment Policy:
At each balance sheet date, the management reviews, the carrying
amounts of its assets included in each cash generating unit to
determine whether there is any indication that those assets were
impaired. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of impairment loss.
Recoverable amount is the higher of an asset''s or CGU''s net selling
price or its value in use. Where the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
Reversal of impairment loss (if any), is recognised immediately as
income in the statement of profit and loss.
h) Inventories
(i) Raw materials are valued at cost derived on average cost basis or
net realizable value whichever is lower
(ii) Finished goods are stated at average material consumption cost and
direct attributable overheads or Net realizable value whichever is
lower.
(iii) Semi Finished Goods are valued at cost on the basis of process
completion.
i) Foreign Currency Transactions
(i) Initial Recognition: A foreign currency transaction is recorded, on
initial recognition in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting
currency and the foreign currency at the date of the transaction.
(ii) Conversion: At the year end, monetary items denominated in foreign
currencies are converted into rupee equivalents at the year-end
exchange rates.
(iii) Exchange Differences: All exchange differences arising on
settlement/conversion on foreign currency transactions are included in
the Profit and Loss Account.
j) Investments
(i) Long-term investments are stated at cost. Provision for diminution
in the value of long term investments is made only if such a decline is
other than temporary.
(ii) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
k) Employee Benefits
(i) Short term employee benefits:
Short term employee''s benefits are recognized as an expense at the
undiscounted amount in the statement of profit and loss of the year in
which the related services are renders. These benefits include
compensated absences such as annual leave encashment and bonus.
(ii) Long term employees Benefits:
A. Provident fund, family Pension fund & employees'' State Insurance
Scheme:
As per the employees'' Provident funds and miscellaneous Provisions Act,
1952, all employees of the company are entitled to receive benefits
under the provident fund and family pension fund, which is a defined
contribution plan. These contributions are made to the fund
administrated and managed by Government of India. In addition, some
employees of the company are covered under employees'' State Insurance
Scheme act, 1948, which are also defined contribution schemes
recognized and administrated by Government of India
The company''s contributions to these schemes are recognized as expense
in the statement of profit and loss during the year in which the
employee renders the related service. The company has no further
obligation under these plans beyond its monthly contributions.
B. Gratuity:
The liabilities is a defined benefit obligation and the present value
of the obligation under defined benefits plan is determined based on
actuarial valuation using the Project Unit Credit method, which
recognizes each year of service as giving rise to additional unit of
employee benefit entitlement and measure each unit separately to build
up final obligation. The obligation is measured at the present value of
the estimated cash flows. The discount rate used for determining the
present value of the defined obligation under defined benefit plan, is
based on the market yields on Government securities as at the balance
sheet date. Actuarial gains and losses are recognized in the statement
of Profit and Loss as and when determined.
l) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets, upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
Profit and Loss account.
m) Leases
Leases wherein a significant portion of the risks and reward of
ownership are retained by the lessor are classified as Operating
Leases. Lease rentals in respect of such leases are charged to the
Profit and Loss Account.
n) Earnings per share
Basic earnings per share
For the purpose of calculating basic earnings per share, the net profit
or loss for the period attributable to equity shareholders after
deducting preference dividends (if any) and any attributable tax
thereto for the period is divided by weighted number of equity shares
outstanding during the period.
Diluted earnings per share
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
o) Taxes on Income
(i) Current income tax is determined on the basis of taxable income
after considering the various deductions available under The Income Tax
Act, 1961.
(ii) Deferred tax expense or benefit is recognised on timing
differences being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets and liabilities are
measured using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
However in case of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable income will be
available to realise such assets. Such assets are reviewed at each
balance sheet date to reassess its realisations.
(iii) Minimum Alternative Tax (MAT) credit is recognized as an asset
only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period.
p) Provisions
A Provision is recognized when the Company has a present obligation as
a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
Contingent liabilities are disclosed by way of note to the Financial
Statements after careful evaluation by the proprietor of facts and
legal aspects of the matter involved.
Contingent Assets are neither recognized nor disclosed.
Mar 31, 2013
A) Basis of preparation of financial statements
These financial statements have been prepared in accordance with
generally accepted accounting principles in India under the historical
cost convention on an accrual basis. These financial statements have
been prepared to comply in all material respects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make estimates and assumption that affect
the reported amounts of assets and liabilities and disclosure of the
contingent liabilities as at the date of the financial statements and
the amount of income and expenses during the period reported under the
financial statement. Difference between the actual results and
estimates are recognized in the period in which the results are known/
materialized.
c) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(i) Sale of products are recognized on transfer of all significant
risks and rewards of ownership of the goods on to the buyer, which is
generally on dispatch of goods.
(ii) Service income is recognized, when the related services are
provided.
(iii) Interest income is recognized on time proportion basis taking
into account the amount outstanding and the rate applicable.
(iv) Dividends are recorded when the right to receive payment is
established.
d) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
accumulated impairment loss (if any). The cost of a fixed asset
comprises its purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
e) Depreciation
Depreciation on fixed assets has been provided in a manner that
amortizes the cost of the assets over their estimated useful lives as
detailed below:
(i) On a straight-line method at the rates determined in the year of
acquisition under section 205 (b) of the Companies Act, 1956 on single
shift basis except in case of plant & machinery and Electrical
installation, where depreciation has been provided on triple shift
basis.
(ii) Leasehold land has not been amortized over the primary year of the
lease.
f) Intangible Assets
Intangible assets are stated at costs less accumulated depreciation.
Intangible Assets (Computer Software) is amortized over a period of 5
years on straight line method.
g) Impairment Policy:
At each balance sheet date, the management reviews, the carrying
amounts of its assets included in each cash generating unit to
determine whether there is any indication that those assets were
impaired. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of impairment loss.
Recoverable amount is the higher of an asset''s or CGU''s net selling
price or its value in use. Where the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
Reversal of impairment loss (if any), is recognised immediately as
income in the statement of profit and loss.
h) Inventories
(i) Raw materials are valued at cost derived on average cost basis or
net realizable value whichever is lower
(ii) Finished goods are stated at average material consumption cost and
direct attributable overheads or Net realizable value whichever is
lower.
(iii) Semi Finished Goods are valued at cost on the basis of process
completion.
i) Foreign Currency Transactions
(i) Initial Recognition: A foreign currency transaction is recorded, on
initial recognition in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting
currency and the foreign currency at the date of the transaction.
(ii) Conversion: At the year end, monetary items denominated in foreign
currencies are converted into rupee equivalents at the year-end
exchange rates.
(iii) Exchange Differences: All exchange differences arising on
settlement/conversion on foreign currency transactions are included in
the Profit and Loss Account.
j) Investments
(i) Long-term investments are stated at cost. Provision for diminution
in the value of long term investments is made only if such a decline is
other than temporary.
(ii) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
k) Employee Benefits
(i) Short term employee benefits:
Short term employee''s benefits are recognized as an expense at the
undiscounted amount in the statement of profit and loss of the year in
which the related services are renders. These benefits include
compensated absences such as annual leave encashment and bonus.
(ii) Long term employees Benefits:
A. Provident fund, family Pension fund & employees'' State Insurance
Scheme:
As per the employees'' Provident funds and miscellaneous Provisions Act,
1952, all employees of the company are entitled to receive benefits
under the provident fund and family pension fund, which is a defined
contribution plan. These contributions are made to the fund
administrated and managed by Government of India. In addition, some
employees of the company are covered under employees'' State Insurance
Scheme act, 1948, which are also defined contribution schemes
recognized and administrated by Government of India
The company''s contributions to these schemes are recognized as expense
in the statement of profit and loss during the year in which the
employee renders the related service. The company has no further
obligation under these plans beyond its monthly contributions.
B. Gratuity:
The liabilities is a defined benefit obligation and the present value
of the obligation under defined benefits plan is determined based on
actuarial valuation using the Project Unit Credit method, which
recognizes each year of service as giving rise to additional unit of
employee benefit entitlement and measure each unit separately to build
up final obligation. The obligation is measured at the present value of
the estimated cash flows. The discount rate used for determining the
present value of the defined obligation under defined benefit plan, is
based on the market yields on Government securities as at the balance
sheet date. Actuarial gains and losses are recognized in the statement
of Profit and Loss as and when determined.
l) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets, upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
Profit and Loss account.
m) Leases
Leases wherein a significant portion of the risks and reward of
ownership are retained by the lessor are classified as Operating
Leases. Lease rentals in respect of such leases are charged to the
Profit and Loss Account.
n) Earnings per share
Basic earnings per share
For the purpose of calculating basic earnings per share, the net profit
or loss for the period attributable to equity shareholders after
deducting preference dividends (if any) and any attributable tax
thereto for the period is divided by weighted number of equity shares
outstanding during the period.
Diluted earnings per share
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
o) Taxes on Income
(i) Current income tax is determined on the basis of taxable income
after considering the various deductions available under The Income Tax
Act, 1961.
(ii) Deferred tax expense or benefit is recognised on timing
differences being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets and liabilities are
measured using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
However in case of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable income will be
available to realise such assets. Such assets are reviewed at each
balance sheet date to reassess its realisations.
(iii) Minimum Alternative Tax (MAT) credit is recognized as an asset
only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period.
p) Provisions
A Provision is recognized when the Company has a present obligation as
a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
Contingent liabilities are disclosed by way of note to the Financial
Statements after careful evaluation by the proprietor of facts and
legal aspects of the matter involved.
Contingent Assets are neither recognized nor disclosed.
Mar 31, 2012
A) Basis of preparation of financial statements
These financial statements have been prepared in accordance with
generally accepted accounting principles in India under the historical
cost convention on an accrual basis. These financial statements have
been prepared to comply in all material respects with the accounting
standards notified under Section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make estimates and assumption that affect
the reported amounts of assets and liabilities and disclosure of the
contingent liabilities as at the date of the financial statements and
the amount of income and expenses during the period reported under the
financial statement. Difference between the actual results and
estimates are recognized in the period in which the results are known/
materialized.
c) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(i) Sale of products are recognized on transfer of all significant
risks and rewards of ownership of the goods on to the buyer, which is
generally on dispatch of goods.
(ii) Service income is recognized, when the related services are
provided.
(iii) Interest income is recognized on time proportion basis taking
into account the amount outstanding and the rate applicable.
(iv) Dividends are recorded when the right to receive payment is
established.
d) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
accumulated impairment loss (if any). The cost of a fixed asset
comprises its purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
e) Depreciation
Depreciation on fixed assets has been provided in a manner that
amortizes the cost of the assets over their estimated useful lives as
detailed below:
(i) On a straight-line method at the rates determined in the year of
acquisition under section 205 (b) of the Companies Act, 1956 on single
shift basis except in case of plant & machinery and Electrical
installation, where depreciation has been provided on triple shift
basis.
(ii) Leasehold land has not been amortized over the primary year of the
lease.
f) Intangible Assets
Intangible assets are stated at costs less accumulated depreciation.
Intangible Assets (Computer Software) is amortized over a period of 5
years on straight line method.
g) Impairment Policy:
At each balance sheet date, the management reviews, the carrying
amounts of its assets included in each cash generating unit to
determine whether there is any indication that those assets were
impaired. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of impairment loss.
Recoverable amount is the higher of an asset's or CGU's net selling
price or its value in use. Where the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
Reversal of impairment loss (if any), is recognised immediately as
income in the statement of profit and loss.
h) Inventories
(i) Raw materials are valued at cost derived on average cost basis or
net realizable value whichever is lower
(ii) Finished goods are stated at average material consumption cost and
direct attributable overheads or Net realizable value whichever is
lower.
(iii) Semi Finished Goods are valued at cost on the basis of process
completion. .
i) Foreign Currency Transactions
(i) Initial Recognition: A foreign currency transaction is recorded, on
initial recognition in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting
currency and the foreign currency at the date of the transaction. .
(ii) Conversion: At the year end, monetary items denominated in foreign
currencies are converted into rupee equivalents at the year-end
exchange rates.
(iii) Exchange Differences: All exchange differences arising on
settlement/conversion on foreign currency transactions are included in
the Profit and Loss Account.
j) Investments
(i) Long-term investments are stated at cost. Provision for diminution
in the value of long term investments is made only if such a decline is
other than temporary.
(ii) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
k) Employee Benefits
(i) Short term employee benefits:
Short term employee's benefits are recognized as an expense at the
undiscounted amount in the statement of profit and loss of the year in
which the related services are renders. These benefits include
compensated absences such as annual leave encashment and bonus.
(ii) Long term employees Benefits:
A. Provident fund, family Pension fund & employees' State Insurance
Scheme:
As per the employees' Provident funds and miscellaneous Provisions
Act, 1952, all employees of the company are entitled to receive
benefits under the provident fund and family pension fund, which is a
defined contribution plan. These contributions are made to the fund
administrated and managed by Government of India. In addition, some
employees of the company are covered under employees' State Insurance
Scheme act, 1948, which are also defined contribution schemes
recognized and administrated by Government of India
The company's contributions to these schemes are recognized as
expense in the statement of profit and loss during the year in which
the employee renders the related service. The company has no further
obligation under these plans beyond its monthly contributions.
B. Gratuity:
The liabilities is a defined benefit obligation and the present value
of the obligation under defined benefits plan is determined based on
actuarial valuation using the Project Unit Credit method, which
recognizes each year of service as giving rise to additional unit of
employee benefit entitlement and measure each unit separately to build
up final obligation. The obligation is measured at the present value of
the estimated cash flows. The discount rate used for determining the
present value of the defined obligation under defined benefit plan, is
based on the market yields on Government securities as at the balance
sheet date. Actuarial gains and losses are recognized in the statement
of Profit and Loss as and when determined.
I) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets, upto the date the asset is put to use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
Profit and Loss account.
m) Leases
Leases wherein a significant portion of the risks and reward of
ownership are retained by the lessor are classified as Operating
Leases. Lease rentals in respect of such leases are charged to the
Profit and Loss Account.
n) Earnings per share
Basic earnings per share
For the purpose of calculating basic earnings per share, the net profit
or loss for the period attributable to equity shareholders after
deducting preference dividends (if any) and any attributable tax
thereto for the period is divided by weighted number of equity shares
outstanding during the period. .
Diluted earnings per share
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
o) Taxes on Income
(i) Current income tax is determined on the basis of taxable income
after considering the various deductions available under The Income Tax
Act, 1961.
(ii) Deferred tax expense or benefit is recognised on timing
differences being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets and liabilities are
measured using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
However in case of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable income will be
available to realise such assets. Such assets are reviewed at each
balance sheet date to reassess its realisations.
(iii) Minimum Alternative Tax (MAT) credit is recognized as an asset
only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period.
p) Provisions
A Provision is recognized when the Company has a present obligation as
a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are reviewed at each
balance sheet date and adjusted to reflect the current management
estimates.
Contingent liabilities are disclosed by way of note to the Financial
Statements after careful evaluation by the proprietor of facts and
legal aspects of the matter involved.
Contingent Assets are neither recognized nor disclosed.