Mar 31, 2018
1 Significant Accounting Policies
1.1 Basis of preparation of financial statements:
The financial statements of the company have been prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act 2013 read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 and the companies (Indian Accounting Standards) Amendment Rules, 2016. and other relevant provisions of the Act.
2.2 Rounding of amount
These standalone financial statements are presented in Indian Rupees, which is also the company''s functional currency. All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
2.3 Historical Cost convention
The financial statements have been prepared under the historical cost convention, on the basis of a going concern and on accrual basis except for the following items -
a. Certain Financial Assets and Liabilities (including derivative instruments) are measured at Fair value
b. Defined benefit employee plan - Plan assets measured at fair value
2.4 Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses of the reporting period. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates.
The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of the future events) that the Company believes to be reasonable under the existing circumstances. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively.
2.5 Classification of Assets and Liabilities
All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act,2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisations in cash and cash equivalents, the company has ascertained its operating cycle as 12 (twelve) months for the purpose of current and non-current classification of assets and liabilities.
2.6 Property, Plant and Equipment:
All items of property, plant and equipment are stated at cost net of accumulated depreciation and impairment, if any. The cost comprises its purchase price and any cost directly attributable to bringing the Property, Plant and Equipment to its working condition for its intended use.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
Any gain or loss on disposal of an item of property, plant and equipment is recognized in the statement of profit or loss. Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active use. Losses arising from the retirement of and gains or losses arising from disposal of Property, plant and equipment are recognised in the statement of profit and Loss.
The cost of property, plant and equipment which are not ready for their intended use before such date, are disclosed as capital work-in-progress.
The Company assesses at each Balance Sheet date whether there is any indication that any property, plant and equipment may be impaired, if any such indication exists, the carrying value of such property, plant and equipment is reduced to recoverable amount and the impairment loss is charged to statement of profit and Loss. If at the Balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed, and the asset is restated to that extent.
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognized as at 1st April 2016, measured as per the previous GAAP and use that carrying value as the deemed cost of such property, plant and equipment except Free hold Land for which the company had adopted revaluation model pursuant to the para 29 to 31 of Ind AS 16 and recognised revalued cost as its deemed cost as at 1st April 2016.
Revaluation of freehold land would be carried at sufficient regularity to ensure that the carriying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
2.7 Depreciation:
Depreciation has been provided on straight line method based on useful life of Assets as prescribed in Schedule II to the Companies Act, 2013.
Depreciation is provided pro-rata from the date of capitalisation. Depreciation is calculated on the carrying amount, which is the cost of an asset less its residual value.
2.8 Intangible Assets
Intangible assets are carried at cost, net of accumulated amortization and impairment losses, if any. Cost of an intangible asset comprises of purchase price and attributable expenditure on making the asset ready for its intended use.
The company assesses at each Balance sheet date whether there is any indication that any intangible asset may be impaired, if any such indication exists, the carrying value of such intangible asset is reduced to recoverable amount and the impairment loss is charged to statement of profit and Loss. If at the Balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed, and the asset is restated to that extent.
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its Intangible Assets recognized as at 1st April 2016, measured as per the previous GAAP and use that carrying value as the deemed cost of Intangible Assets.
2.9 Amortization:
Intangible assets are amortized based on their estimated useful lives.
2.10 Investments
Investment in Government securities are âCarried at amortised costâ
Investments in unquoted equity shares are recognised at Cost. As these shares were purchased as per the contract and on termination these shares will be bought back at cost.
2.111nventories
Inventories are stated at lower of cost and net realisable value. Goods in process is stated at cost. The cost includes cost of purchase, frieght ,taxes and duties and is net of input credit where applicable, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Raw Material is stated at âweighted averageâ cost method and finished goods at âSpecific identificationâ cost method.
2.12 Financial Assets / Liability Policy:
a. Financial Assets Classification and Measurement
All the financial assets are initially measured at fair value. Transactions costs that are directly attributable to the acquisition of financial asset (other than financial assets carried at fair value through profit and loss) are added to or deducted from the fair value measured on initial recognition of financial asset.
Subsequent measurement
Subsequent measurement of financial assets depends on the classification i.e financial assets carried at amortised cost or fair value (either through other comprehensive income or through profit and loss). Such classification is determined on the basis of Company''s business model for managing the financial assets and the contractual terms of the cash flows.
The Company''s financial assets primarily consists of cash and cash equivalents, trade receivables, balance with statutory authority, loans and advances and security deposits etc which are classified as financial assets carried at amortised cost.
Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost.
A gain or loss on an financial assets that is subsequently measured at amortised cost is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is recognized using the effective interest rate method.
Impairment of financial assets
The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the company provides for lifetime expected credit losses recognized from initial recognition of the receivables.
De-recognition of financial assets
A financial assets is de-recognised only when the Company has transferred the rights to receive cash flows from the financial asset or retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
b. Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction cost.
The Company''s financial liabilities include trade and other payables.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss :
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognized in the profit and loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risks are recognized in OCI. These gains/losses are subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit or loss.
De-recognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the term of an existing liability are substantially modified, such an exchange or modification is treated as de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amount is recognized in the statement of profit or loss.
Derivative financial instruments:
Derivative financial instruments such as future contracts are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value with changes in fair value recognised in the Statement of Profit and Loss in the period when they arise.
2.13 Fair Value Measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
2.14 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, considering contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
Sale of Goods
Revenue from sale of goods are recognised on transfer of significant risk and rewards of ownership to the buyer which generally coincides with shipment. Revenue from the sale of goods in measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Rendering of Services :
Service revenues are recognised when services are rendered, and when the outcome of the transaction can be estimated reliably.
Dividend, Interest income, Claims:
Dividend income from investments is recognised when the Company''s right to receive dividend is established provided it is probable that the economic benefits associated with the dividend will flow to the Company as also the amount of dividend income can be measured reliably.
Interest income from a financial asset is recognised on a time basis, by reference to the principal outstanding using the effective interest method provided it is probable that the economic benefits associated with the interest will flow to the Company and the amount of interest can be measured reliably.
Insurance and other Claim are accounted for when no significant uncertainties are attached to their eventual receipt.
2.15 Borrowings:
Borrowings are initially recognised at net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction cost) and the redemption amount is recognised in the Statement of Profit and loss over the period of borrowings using the effective interest method.
2.16 Borrowing cost
Borrowing costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset upto the date when such asset is ready for its intended use. All other Borrowing costs are charged to Statement of Profit and Loss.
2.17 Short-term Employee Benefits
Short Term employee benefits including accrued liability for Leave Encashment (other than termination benefits) which are payable within 12 ( twelve) months after the end of the period in which the employees render service are paid/ provided during the year, as per the Rules of the Company.
Defined Contribution Plans:
Company''s contributions paid/payable during the year to Provident and Family Pension Funds, and Employees State Insurance are recognized in the Statement of Profit and Loss.
Defined Benefit Plans:
The Employees'' Gratuity Fund Scheme covered by the Group Gratuity cum-Life Assurance Policy of LIC of India is a Defined Benefit Plan. The present value of obligation is determined based on actuarial valuation using Projected Unit Credit Method which recognizes each period of service as giving rise to additional amount of employees benefit entitlement and measures each unit separately to build up the final obligation.
2.18 Foreign currency Transactions Initial recognition:
Transactions in Foreign Currencies entered into by the Company are accounted at the exchange rate prevailing on the date of the transaction.
Measurement:
Foreign Currency monetary items of the Company outstanding at the balance sheet date are restated at year end exchange rates.
Non-monetary items carried at historical cost are translated using the exchange rates at the dates of initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on transaction of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.
Treatment of exchange difference
Exchange differences arising on settlement/restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expenses in the Statement of Profit and Loss.
2.19 Taxation
a Current tax is made on the basis of estimated taxable income for the year or computed in accordance with the Income-Tax Act, 1961 and recognized in the statement of Profit and Loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.
b Deferred tax on account of timing differences, between taxable income and accounting income is recognized using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these would be realized in future.
c Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
2.20 Provisions and Contingent Liabilities:
Provisions: Provisions are recognized when there is a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent Liabilities:
Contingent liabilities is a possible obligation in the normal course of business arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.
The Company does not recognise a contingent liability but disclose its existence in the financial statements.
2.21 Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit / loss before extraordinary items and tax for the period is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments. Cash flows from operating, investing and financing activities of the Company are segregated.
2.22 Cash and Cash equivalents Policy:
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
2.23 Earnings per Share:
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. 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 is adjusted for the effects of all dilutive potential equity shares.
2.24 Exceptional Items:
When an item of income or expense within profit or loss from ordinary is of such size, nature or incidence that their disclosure is relevant to explain the performance of the company for the year, the nature and amount of such items is disclosed as exceptional items.
Mar 31, 2016
A) BASIS OF PRESENTATION
The financial statements are prepared to comply with the mandatory Accounting Standards prescribed in the Companies (Accounting Standards) Rules 2006,(as amended) issued by the National Advisory Committee on Accounting Standards and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act,2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 (twelve) months for the purpose of current and noncurrent classification of assets and liabilities
B) USE OF ESTIMATES
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses of that year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively.
C) FIXED ASSETS
(i) Tangible Assets/Intangible Assets are stated at acquisition cost less net of accumulated depreciation/amortization and impairment, if any. The Cost Comprises its purchase price and any cost directly attributable to bringing the asset to its working condition for its intended use. Fixed assets are eliminated from financial statements ,either on disposal or when retired from active use. Also refer Policy G and H below. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets are recognized in the Statement of Profit and Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet date whether there is any indication that any asset (both tangible and intangible) may be impaired, if any such indication exists, the carrying value of such assets is reduced to recoverable amount and the impairment loss is charged to Statement of Profit and Loss. If at the Balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that extent.
D) INVESTMENTS
Long term investments are stated at cost less provision, if any, for other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are stated at lower of cost and net realizable value. Goods in process is stated at cost. The cost includes cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost formula used are âWeighted Average Methodâ or âSpecific Identification methodâ as applicable.
F) REVENUE RECOGNITION
Sales are recognized as and when risks and rewards of ownership are passed on to the buyer and ultimate realization of price is reasonably certain. Export Sales are inclusive of deemed exports while domestic sales are net of Value Added Tax.
G) BORROWING COST
Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. All other Borrowing costs are charged to Statement of Profit and Loss .
H) DEPRECIATION/AMORTISATION
Depreciation has been provided on straight line method based on useful life of Assets as prescribed in Schedule II to the Companies Act, 2013.
Plant and Equipment have been, on technical assessment, considered as continuous process plants and depreciation has been provided under straight line method as specified in the said Schedule.
Depreciation on Wind Turbine Machinery has been provided on Straight Line Method based on useful life as specified in the said Schedule
Intangible Assets are amortized on their estimated useful lives.
I) EMPLOYEE BENEFITS
Short Term employee benefits including accrued liability for Leave Entitlement (other than termination benefits) which are payable within 12 (twelve) months after the end of the period in which the employees render service are paid/ provided during the year, as per the Rules of the Company.
Defined Contribution Plans:
Retirement benefits in the form of Provident fund, Family Pension Funds, Superannuation Fund (wherever opted) and ESIC are defined contribution scheme and the contributions are charged to the statement of profit and loss of the period when the contributions to the respective funds are due. There are no other obligations other than the contributions payable to the respective trusts.
Defined Benefit plans:
The company provides for Gratuity, a defined benefit retirement plan, covering eligible employees. The scheme is funded with Life Insurance Corporation of India. Liabilities under gratuity plan is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial Period.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in the Statement of Profit and Loss of the year in which such payments are Due.
J) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rate of exchange in force on the date of transactions.
Foreign currency assets and liabilities both monetary and non monetary are stated at the rate of exchange prevailing at the year-end and resultant gains /losses are recognized in the Statement of profit and loss. Premium /Discount in respect of forward foreign exchange contracts are recognized over the life of the contracts.
K) TAXATION
Income Tax expenses comprises Current Tax and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year, unabsorbed depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that the assets can be realized in future; however where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. At each balance sheet date the company re-assesses the deferred tax assets.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.
Minimum Alternative Tax 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 and is reviewed at each balance sheet date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.
M) CASH AND CASH EQUIVALENTS
In the cash flow statement, cash and cash equivalents includes Cash in Hand, Demand Deposits with banks, other short-term highly liquid investments with original maturities of three months or less.
N) EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company''s earnings per share is the net profit /loss for the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2015
A) BASIS OF PRESENTATION
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006,(as amended) issued by the National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
2013. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
(twelve) months for the purpose of current and non current
classification of assets and liabilities
B) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
C) FIXED ASSETS
(i) Tangible Assets/Intangible Assets are stated at cost net of
accumulated depreciation/amortisation and impairments any. The Cost
Comprises its purchase price and any cost directly attributable to
bringing the asset to its working condition for its intended use. Fixed
assets are eliminated from financial statements ,either on disposal or
when retired from active use. Also refer Policy G and H below. Losses
arising from the retirement of, and gains or losses arising from
disposal of fixed assets are recognised in the Statement of Profit and
Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any indication that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that extent.
D) INVESTMENTS
Long term investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are stated at lower of cost and net realisable value. The
cost includes cost of purchase, cost of conversion and other cost
incurred in bringing the inventories to their present location and
condition. Cost formula used are "Weighted Average Method" or
"Specific Identification method" as applicable.
F) REVENUE RECOGNITION
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain. Export Sales are inclusive of deemed exports while domestic
sales are net of Value Added Tax.
G) BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. All other
Borrowing costs are charged to Statement of Profit and Loss.
H) DEPRECIATION /AMORTISATION
Depreciation has been provided on straight line method based on useful
life of Assets as prescribed in Schedule II to the Companies Act, 2013.
Plant and Equipment have been, on technical assessment, considered as
continuous process plants and depreciation has been provided under
straight line method as specified in the said Schedule.
Depreciation on Wind Turbine Machinery has been provided on Straight
Line Method based on useful life as specified in the said Schedule.
Intangible Assets are amortised on their estimated useful lives.
I) EMPLOYEE BENEFITS
Short Term employee benefits including accrued liability for Leave
Entitlement (other than termination benefits) which are payable within
12 (twelve) months after the end of the period in which the employees
render service are paid/provided during the year, as per the Rules of
the Company.
Defined Contribution Plans:
Retirement benefits in the form of Provident fund, Family Pension
Funds, Superannuation Fund (wherever opted) and ESIC are defined
contribution scheme and the contributions are charged to the statement
of profit and loss of the period when the contributions to the
respective funds are due. There are no other obligations other than the
contributions payable to the respective trusts.
Defined Benefit plans:
The Company provides for Gratuity ,a defined benefit retirement plan,
covering eligible employees .The scheme is funded with Life Insurance
Corporation of India. Liabilities under gratuity plan is provided for
on the basis of an actuarial valuation on projected unit credit method
made at the end of each financial period.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in
the Statement of Profit and Loss in the year in which such payments are
due.
J) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of transaction.
Foreign currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year-end and
resultant gains /losses are recognised in the Statement of profit and
loss .Premium /Discount in respect of forward foreign exchange
contracts are recognised over the life of the contracts.
K) TAXATION
Income Tax expenses comprises Current Tax and deferred tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets. At each balance sheet date the company
re- assesses the deferred tax assets.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws
Minimum Alternative Tax credit is recognised 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 and is reviewed at each
balance sheet date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
M) CASH AND CASH EQUIVALENTS
In the cash flow statement, cash and cash equivalents includes Cash in
Hand, Demand Deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
N) EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Earnings
considered in ascertaining the Company's earnings per share is the
net profit /loss for the year. For the purpose of calculating diluted
earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares
outstanding during the year is adjusted for the effects of all dilutive
potential equity shares.
Mar 31, 2014
A) BASIS OF PRESENTATION
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006, (as amended) issued by the National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 (twelve) months for
the purpose of current and non current classification of assets and
liabilities
B) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
C) FIXED ASSETS
(i) Tangible Assets/Intangible Assets are stated at acquisition cost
less net of accumulated depreciation. Expenditure during construction
period in respect of new project/expansion is allocated to the
respective fixed assets on their being ready for commercial use. Fixed
assets are eliminated from financial statements ,either on disposal or
when retired from active use. Also refer Policy G and H below. Losses
arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognised in
the Statement of Profit and Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any indication that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that extent.
D) INVESTMENTS
Long term investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are stated at lower of cost and net realisable value. Cost
of raw material is computed by using "Specific identification" method
and for other inventories "Weighted Average " method. The cost includes
cost of purchase, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition.
F) REVENUE RECOGNITION
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain. Export Sales are inclusive of deemed exports while domestic
sales are net of Value Added Tax.
G) BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. All other
Borrowing costs are charged to Statement of Profit and Loss .
H) DEPRECIATION
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
Plant and Equipment have been, on technical assessment, considered as
continuous process plants and depreciation has been provided under
straight line method as specified in the said Schedule.
Depreciation on Wind Turbine Machinery has been provided on Straight
Line Method at general rates as specified in the said Schedule.
Intangible Assets are amortised at the rate of 16.21% based on their
estimated useful lives.
I) EMPLOYEE BENEFITS
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 (twelve) months after the end of the period in which the employees
render service are paid/provided during the year, as per the Rules of
the Company.
Defined Contribution Plans:
Retirement benefits in the form of Provident fund, Family Pension
Funds, Superannuation Fund (wherever opted) and ESIC are defined
contribution scheme and the contributions are charged to the statement
of profit and loss of the period when the contributions to the
respective funds are due. There are no other obligations other than the
contributions payable to the respective trusts.
Defined Benefit plans:
The company provides for Gratuity, a defined benefit retirement plan,
covering eligible employees. The scheme is funded with Life Insurance
Corporation of India. Liabilities under gratuity plan is provided for
on the basis of an actuarial valuation on projected unit credit method
made at the end of each financial Period.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in
the Statement of Profit and Loss Account of the year in which such
payments are effected.
J) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of transactions.
Foreign currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year-end and
resultant gains/losses are recognised in the Statement of profit and
loss. Premium/Discount in respect of forward foreign exchange contracts
are recognised over the life of the contracts.
K) TAXATION
Income Tax expenses comprises Current Tax and deferred tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets. At each balance sheet date the company
re-assesses the deferred tax assets.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised 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 and is reviewed at each
balance sheet date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
M) CASH AND CASH EQUIVALENTS
In the cash flow statement, cash and cash equivalents includes Cash in
Hand, Demand Deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
N) EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit /loss for the year. For the purpose of calculating diluted
earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares
outstanding during the year is adjusted for the effects of all dilutive
potential equity shares.
Mar 31, 2013
A) BASIS OF PRESENTATION
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006,(as amended) issued by the National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12(twelve) months for
the purpose of current  non current classification of assets and
liabilities
B) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
C) FIXED ASSETS
(i) Tangible Assets/Intangible Assets are stated at acquisition cost
less net of accumulated depreciation. Expenditure during construction
period in respect of new project/expansion is allocated to the
respective fixed assets on their being ready for commercial use. Fixed
asstes are eliminated from financial statements ,either on disposal or
when retired from active use. Also refer Policy g and h below. Losses
arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognsied in
the Statement of Profit and Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any indication that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that extent.
D) INVESTMENTS
Long term investments are stated at cost less provision, if any for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are stated at lower of cost and net realisable value. Cost
of raw material is computed by using "Specific identification" method
and for other inventories "Weighted Average " method.The cost includes
cost of purchase, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition.
F) REVENUE RECOGNITION
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain. Export Sales are inclusive of deemed exports while domestic
sales are net of Value Added Tax.
G) BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. All other
Borrowing costs are charged to Statement of Profit and Loss.
H) DEPRECIATION
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
Plant and Equipment have been, on technical assessment, considered as
continuous process plants and depreciation has been provided under
straight line method as specified in the said Schedule.
Depreciation on Wind Turbine Machinery has been provided on Straight
Line Method at general rates as specified in the said Schedule
Intangible Assets are amortised at the rate of 16.21% based on their
estimated useful lives.
I) EMPLOYEE BENEFITS
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 ( twelve) months after the end of the period in which the employees
render service are paid/ provided during the year, as per the Rules of
the Company.
Defined Contribution Plans:
Retirement benefits in the form of Provident Fund, Family Pension
Funds, Superannuation Fund (wherever opted) and ESIC are defined
contribution scheme and the contributions are charged to the Statement
of Profit and Loss of the period when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
Defined Benefit plans:
The Company provides for Gratuity, a defined benefit retirement plan,
covering eligible employees. The scheme is funded with Life Insurance
Corporation of India. Liability under Gratuity plan is provided for on
the basis of an actuarial valuation on projected unit credit method
made at the end of each financial period.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in
the Statement of Profit and Loss of the year in which such payments are
effected.
J) FOREIGN CURRENCY TRANSACTIONS
Transactions in Foreign Currency are recorded at the rate of exchange
in force on the date of transactions
Foreign Currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year end and
resultant gains/losses are recognised in the statement of profit and
loss. Premium / Discount in respect of Forward Foreign Exchange
contracts are recognised over the life of the contracts
K) TAXATION
Income Tax expenses comprises Current Tax and Deferred Tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets. At each balance sheet date the Company
re-assesses the deferred tax assets.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred Tax Assets and Deferred Ta x Liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the Deferred Tax Assets and the
Deferred Tax Liabilities relate to taxes on income levied by the same
governing taxation laws
Minimum Alternative Tax credit is recognised 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 and is reviewed at each
Balance Sheet date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
M) CASH AND CASH EQUIVALENTS
In the Cash Flow Statement, cash and cash equivalents includes Cash in
Hand, Demand Deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
N) EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the Net Profit or
Loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit/loss for the year. For the purpose of calculating diluted
earnings per share, the Net Profit or Loss for the year attributable to
equity shareholders and the weighted average number of shares
outstanding during the year is adjusted for the effects of all dilutive
potential equity shares.
Mar 31, 2012
A) BASIS OF PRESENTATION
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006, issued by the National Advisory Committee on Accounting
Standards and the relevant provisions of the Companies Act, 1956. The
financial statements have been prepared under the historical cost
convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current - non current classification of assets and
liabilities
B) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
C) FIXED ASSETS
(i) Tangible Assets/Intangible Assets are stated at acquisition cost
less net of accumulated depreciation. Expenditure during construction
period in respect of new project/expansion is allocated to the
respective fixed assets on their being ready for commercial use. Fixed
Assets are eliminated from financial statements, either on disposal or
when retired from active use. Also refer Policy G and J below. Losses
arising from the retirement of, and gains or losses arising from
disposal of Fixed Assets which are carried at cost are recognised in
the Statement of Profit and Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any indication that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that effect.
D) INVESTMENTS
Long term investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are stated at lower of cost and net realisable value. Cost
of raw material is computed by using "Specific identification"
method and for other inventories "Weighted Average" method.The cost
includes cost of purchase, cost of conversion and other cost incurred
in bringing the inventories to their present location and condition.
F) REVENUE RECOGNITION
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain.Export Sales are inclusive of deemed exports while domestic
sales are net of Value Added Tax.Claims and other incomes are
recognised based on virtual certainty of such claims and incomes.
G) BORROWING COST
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use.Other
Borrowing costs are charged to Statement of Profit and Loss.
H) DEPRECIATION
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956. Plant and
Equipment have been, on technical assessment, considered as continuous
process plants as defined in the said Schedule and depreciation has
been provided accordingly.
Depreciation on Wind Turbine Machinery has been provided on Straight
Line Method at general rates as specified in the said Schedule.
Intangible Assets are amortised at the rate of 16.21% on Straight line
basis over their estimated useful lives.
I) EMPLOYEE BENEFITS
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 months after the end of the period in which the employees render
service are paid/provided during the year as per the Rules of the
Company.
Defined Contribution Plans:
Company's contributions paid/payable during the year to Provident and
Family Pension Funds, Superannuation Fund (wherever opted) and ESIC are
recognized in the statement of Profit & Loss.
Defined Benefit plans:
The Employees' Gratuity Fund Scheme covered by the Group
Gratuity-cum-Life Assurance Policy of LIC of India is a Defined Benefit
Plan. The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit Method which recognizes each
period of service as giving rise to additional amount of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in
the Statement of Profit and Loss Account of the year in which such
payments are effected.
J) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of transactions.
Foreign currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year-end and
resultant gains /losses are recognised in the Statement of Profit and
Loss. Premium /Discount in respect of forward foreign exchange
contracts is recognised over the life of the contracts.
K) TAXATION
Income Tax expenses comprises Current Tax and Deferred Tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred Tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred Tax Assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward loss under
Taxation laws, Deferred Tax Assets are recognised only if there is
virtual certainty of realisation of such assets. Deferred Tax Assets
are reviewed at each Balance Sheet date and written down or written up
to reflect the amount that is reasonably/virtually certain as the case
may be, to be realised.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred Tax Assets and Deferred Tax Liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the Deferred Tax Assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised 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 and is reviewed at each
Balance Sheet date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
M) CASH AND CASH EQUIVALENTS
In the Cash Flow Statement, cash and cash equivalents includes Cash in
Hand, Demand Deposits with banks, other short- term highly liquid
investments with original maturities of three months or less.
N) EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the Net Profit or
Loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the year. For the purpose of calculating diluted earnings
per share, the Net Profit or Loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding
during the year is adjusted for the effects of all dilutive potential
equity shares.
Mar 31, 2011
A) BASIS OF PRESENTATION
The financial statements have been prepared to comply with the
mandatory Accounting Standards prescribed in the Companies (Accounting
Standards) Rules 2007, issued by National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
B) USE OF ESTIMATES
The preparation of financial statements requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognized prospectively.
C) FIXED ASSETS
(i) All fixed assets are stated at cost, less accumulated depreciation.
Expenditure during construction period in respect of new
project/expansion is allocated to the respective fixed assets on their
being ready for commercial use. Fixed Assets are eliminated from
Financial statements, either on disposal or when retired from active
use. Also refer Para G and J below.
(ii) Impairment of Assets :
The company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to recoverable
amount and the impairment loss is charged to Profit and Loss account.
If at the Balance Sheet date there is any deduction that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to that effect.
D) INVESTMENTS
Long term Investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are valued at lower of cost and net realisable value. Cost
of Raw Material is computed by using "Specific Identification" method
and for other inventories "Weighted Average" method. The cost includes
cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
F) REVENUE RECOGNITION
Sales are recognized as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain. Export Sales are inclusive of deemed exports while domestic
sales are net of Value Added tax. Claims and other incomes are
recognized based on virtual certainty of such claims and incomes.
G) BORROWING COST
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. Other
borrowing costs are charged to Profit & Loss Account.
H) DEPRECIATION
Depreciation has been provided under Straight Line Method at the rates
and in the manner prescribed in Schedule XIV to the Companies Act,
1956.
Plant & Machinery and Electrical Installations have been, on technical
assessment, considered as continuous process plants as defined in the
said Schedule and depreciation has been provided accordingly.
Depreciation on Wind Turbine Machinery has been provided on Straight
Line Method at general rates as specified in the said Schedule.
I) EMPLOYEE BENEFITS
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 months after the end of the period in which the employees render
service are paid/provided during the year as per the Rules of the
Company.
Defined Contribution Plans:
Companys contributions paid/payable during the year to Provident and
Family Pension Funds, Superannuation Fund (wherever opted) and
Employees State Insurance Contribution are recognized in the Profit &
Loss Account.
Defined Benefit plans:
The Employees Gratuity Fund Scheme covered by the Group
Gratuity-cum-Life Assurance Policy of LIC of India is a Defined Benefit
Plan. The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit Method which recognizes each
period of service as giving rise to additional amount of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
Termination Benefits:
Payments under Voluntary Retirement Scheme are recognized in the Profit
and Loss Account of the year in which such payments are effected.
J) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of transactions.
Foreign currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year-end and
resultant gains/losses are recognised in the profit and loss account.
Premium/Discount in respect of forward foreign exchange contracts is
recognized over the life of the contracts.
K) TAXATION
Income Tax expense comprises Current Tax, Wealth Tax (i.e. amount of
tax for the period determined in accordance with the Income Tax Law)
and deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the year,
unabsorbed depreciation or carry forward loss under taxation laws).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted on the balance sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future, however
where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably/virtually certain as the case
may be, to be realised.
Tax credit is recognized in respect of Minimum Alternative Tax (MAT) as
per the provisions of Section 115JB of the Income Tax Act, 1961 based
on convincing evidence that the company will pay normal income tax
within the statutory time frame and is reviewed at each balance sheet
date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) the company has a present obligation as a result of past event,
b) the probable outflow of resources is expected to settle the
obligation and
c) the amount of the obligation can be reliably estimated
where some or all of the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, unless the probability of outflow of
resources is remote
Mar 31, 2010
A) BASIS OF PRESENTATION
The financial statements have been prepared to comply with the
mandatory Accounting Standards prescribed in the Companies (Accounting
Standards) Rules 2007, issued by National Advisory Committee on
Accounting Standards. The financial statements have been prepared
under the historical cost convention, on the basis of a going concern,
on accrual basis.
B) USE OF ESTIMATES
The preparation of financial statements requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the.disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ frorh these
estimates. Any revision to accounting estimates is recognized
prospectively.
C) FIXED ASSETS
(i) All fixed assets are stated at cost, less accumulated depreciation.
Expenditure during construction period in respect of new project/
expansion is allocated to the respective fixed assets on their being
ready for commercial use. Also refer Para Q and J below.
(ii) Impairment of Assets :
The company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to recoverable
amount and the impairment loss is charged to Profit and Loss account.
If at the Balance Sheet date there is any deduction that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to that effect.
D) INVESTMENTS
Long term Investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are valued at lower of cost and net realisable value. Cost
of Raw Material is computed by using "Specific Identification" method
and for other inventories "Weighted Average" method. The cost includes
costs of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
F) REVENUE RECOGNITION
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain. Export Sales are inclusive of deemed exports while domestic
sales are net of Value Added Tax. Claims and other incomes are
recognized based on virtual certainty of such claims and incomes.
G) BORROWING COST
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. Other
borrowing costs are charged to Profit & Loss Account.
H) DEPRECIATION
Depreciation has been provided under Straight Line Method at the rates
and in the manner prescribed in Schedule XIV to the Companies Act,
1956.
Plant & Machinery and Electrical Installations have been, on technical
assessment, considered as continuous process plants as defined in the
said Schedule and depreciation has been provided accordingly.
Depreciation on Wind Turbine Machinery has been provided on Straight
Line Method at general rates as specified in the said Schedule.
Depreciation on the amounts capitalised on account of foreign exchange
fluctuations are provided prospectively over the residual life of the
assets.
I) EMPLOYEE BENEFITS
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 months after the end of the period in which the employees render
service are paid/provided during the year as per the Rules of the
Company.
Defined Contribution Plans:
Companys contributions paid/payable during the year to Provident and
Family Pension Funds, Superannuation Fund (wherever,opted) and ESIC are
recognized in the Profit & Loss Account.
Defined Benefit plans:
The Employees Gratuity Fund Scheme covered by the Group
Gratuity-cum-Life Assurance Policy of LIC of India is a Defined Benefit
Plan. The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit Method which recognizes each
period of service as giving rise to additional amount of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
Termination Benefits:
Payments under Voluntary Retirement Scheme are recognized in the Profit
and Loss Account of the year in which such payments are effected.
J) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of transactions.
Foreign currency assets and liabilities other than for financing fixed
assets are stated at the rate of exchange prevailing at the year-end
and resultant gains/losses are recognised in the profit and loss
account. Premium/Discount in respect of forward foreign exchange
contracts is charged over the life of the contracts.
Foreign currency loan availed before Ot-04-2004 for acquiring fixed
assets are translated at the exchange rates prevailing at the end of
the year. Gain or losses on such translation are adjusted to the cost
of the fixed assets.
K) TAXATION
Income Tax expense comprises Current tax and Fringe benefit tax (i.e.
amount of tax for the period determined In accordance with the Income
Tax Law) and deferred tax charge or credit (reflecting the tax effects
of timing differences between accounting income and taxable income for
the year, unabsorbed depreciation or carry forward loss under taxation
laws).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted on the balance sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future, however
where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably/virtually certain as the case
may be, to be realised.
Tax credit is recognized in respect of Minimum Alternative Tax (MAT) as
per the provisions of Section 115JB of the Income Tax Act, 1961 based
on convincing evidence that the company will pay normal income tax
within the statutory time frame and is reviewed at each balance sheet
date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) the company has a present obligation as a result of past event,
b) the probable outflow of resources is expected to settle the
obligation and
c) the amount of the obligation can be reliably estimated
where some or all of the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extend of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, unless the probability of outflow of
resources is remote
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