Mar 31, 2015
A Basis of Preparation of Financial Statements
The financial statemants are prepared in accordance with indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprise mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules,
2014 and the provision of the Act (to the extent notified).Accounting
policies have been consistently applied except where a newly issued
Accounting Standard is intially adopted or a revision to an existing
accounting standards requires a change in the accounting policy
hitherto in use.
B Use of Estimates
The preparation of financial statements in conformity with the GAAP
requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial
statements, the reported amount of revenues and expenses during the
reporting period and the disclousers relating to contingent liabilities
as of the date of the financial statements. Although these estimates
are based on the management's best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result
in outcomes difference from the estimates. Difference between the
actual results and estimates are recognised in the period in which the
results are known or materialised.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Any revision to accounting estimates is recognised prospectively in the
current and future periods.
C Revenue Recognition
a) Sales
Sales and job work are recognized on shipment or dispatch to customer
and are net of excise duty, VAT, trade discounts and returns if any.
b) Other Income
Other Income is recognized on accrual basis except when realisation of
such income is uncertain.
Export incentives, insurance and other claims, where quantum of
accruals cannot be ascertained with reasonable certainty, are accounted
on acceptance basis.
D Fixed Assets
Fixed Assets are stated at cost, net of CENVAT credit, if any, after
reducing accumulated depreciation until the date of the Balance Sheet.
Direct cost are capitalized until the assets are ready for use and
include financing costs relating to any borrowing attributable to
acquisition. Capital work - in- progress includes the cost of fixed
assets that are not yet ready for the intended use, advances paid to
acquire fixed assets and the cost of assets not put to use before the
balance sheet date.
E Method of Depreciation
a) Depreciation on fixed assets has been provided on Straight Line
method over the useful life of the Asset.
b) Effective 1st April, 2014, the Company depreciates its fixed assets
over the useful life in the manner prescribed in Schedule II of the
Act, as against the earlier practise of depreciating at the retes
prescribed in Schedule XIV of the Companies Act 1956.
c) Depreciation on additions to assets or on sale/discardment of
assets, is calculated pro rata from the date of such addition / put to
use or upto the date of such sale/discardment, as the case may be.
F Intangible Assets
Intangible assets are recognized as per the criteria specified in
Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute
of Chartered Accountants of India and are amortized over their
respective individual estimated useful lives on a straight line basis,
commencing from the date the asset is available to the company for its
use.
G Investments
Long Term Investments are stated at cost of acquisition, but in case of
permanent diminution in value of long term investment, provision is
made to recognise the decline.
H Foreign Exchange Transaction
Foreign currency transactions during the year are recorded at rates of
exchange prevailing on the date of transactions. Foreign currency
assets and liabilities are translated into Rupees at the rate of
exchange prevailing on the date of the Balance Sheet. All exchange
differences are dealt with in the statement of profit and loss, except
those relating to the acquisition of fixed assets which are adjusted in
the cost of the assets till it is ready for the intended use.
Exchange differences arising on account of rollover / cancellation of
forward contracts are recognized as income / expense of the period in
line with the movement in the underlying exposures.
I Inventories
All the items of Inventories are valued Lower of cost or net realisable
value. The basis of determining cost for various categories of
inventories is stated hereunder: -
a) Raw materials Lower of Cost / Net realisable value (FIFO)
b) Packing Materials . Lower of Cost / Net realisable value (FIFO)
c) Material in Transit Actual cost
d) Work in process Material cost plus appropriate share of
Labor, Mfg overheads
e) Finished Goods Material cost plus appropriate share of
Labor, Mfg overheads
f) Scrap At realisable value
g) Stores & others At cost
h) Cylinders At cost less amortization in case of old
cylinders
J Borrowing Costs
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of such
assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are recognised as expense in the period in which they
are incurred.
K Retiring Benefits
a) Provident Fund
Contribution to Provident Fund is made to Government / Recognized
provident fund as required by the statutes / rules.
b) Gratuity
The Company has instituted a Group - cum - Life Insurance Scheme with
the Life Insurance Corporation of India, so far as gratuity is
concerned.
c) Leave Encashment
The benefit of encashment of the leave is given to the employees of the
company during the year.
L Provision, Contingent Liabilities and Contingent Assets
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
M Taxes On Income
The provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provisions of the Income-tax
Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
N Prior Period Adjustments
All identifiable items of income and expenditure pertaining to prior
period are accounted through "Prior Period Adjustments Account"
O Impairment Of Assets
The company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit & Loss Account. If at the Balance Sheet date,
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
P Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss after tax 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 after tax for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive potential
equity shares.
Q Cash and cash equivalent
Cash and cash equivalents for the purposes of financial statement
includes cash in hand, Balances with Banks and Fixed deposits with
banks.
R Government Grants and Subsidies
a) Government grants and subsidies are recognised when there is
reasonable assurance that the Company will comply with the conditions
attached thereto and that the grants will be received.
b) Capital Government Grants or Subsidies relating to specific fixed
assets are deducted from the gross value of the respective fixed assets
and other capital grants are credited to Capital Reserve.
c) Other Government Grants or Subsidies relating to an expense item are
recognised as income over the period to match them on a systematic
basis to the costs or deducted from related expenses.
S Current / Non-Current
All assets and liabilities are presented as Current or Non-current as
per the Company's normal operating cycle and other criteria set out in
the Schedule III of the Companies Act, 2013. Based on the nature of
products and the time between the acquisition of assets for processing
and their realisation, the Company has ascertained its operating cycle
as 12 months for the purpose of Current / Non current classification of
assets and liabilities.
Mar 31, 2014
A. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention on accrual basis of accounting and in accordance with
applicable Accounting Standards and relevant presentational requirement
of the Companies Act, 1956 read with the General Circular 8/2014 dated
4th April, 2014 issued by Ministry of Companies Affairs regarding
various Provisions/Schedules/Rules.
B. Use of Estimates
The preparation of financial statements in conformity with the GAAP
requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial
statements, the reported amount of revenues and expenses during the
reporting period and the disclosures relating to contingent liabilities
as of the date of the financial statements. Although these estimates
are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result
in outcomes difference from the estimates. Difference between the
actual results and estimates are recognised in the period in which the
results are known or materialised.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Any revision to accounting estimates is recognised prospectively in the
current and future periods.
C. Revenue Recognition
a) Sales
Sales and job work are recognized on shipment or dispatch to customer
and are net of excise duty, VAT, trade discounts and returns if any.
b) Other Income
Other Income is recognized on accrual basis except when realisation of
such income is uncertain.
Export incentives, insurance and other claims, where quantum of
accruals cannot be ascertained with reasonable certainty, are accounted
on acceptance basis.
D. Fixed Assets
Fixed Assets are stated at cost, net of CENVAT credit, if any, after
reducing accumulated depreciation until the date of the Balance Sheet.
Direct cost are capitalized until the assets are ready for use and
include financing costs relating to any borrowing attributable to
acquisition. Capital work-in-progress includes the cost of fixed assets
that are not yet ready for the intended use, advances paid to acquire
fixed assets and the cost of assets not put to use before the balance
sheet date.
Depreciation on fixed assets has been provided on Straight Line method
as per the rates prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation on additions to the Fixed Assets are provided on pro-rata
basis from the date of put to use.
E. Intangible Assets
Intangible assets are recognized as per the criteria specified in
Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute
of Chartered Accountants of India and are amortized over their
respective individual estimated useful lives on a straight line basis,
commencing from the date the asset is available to the company for its
use.
F. Investments
Long Term Investments are stated at cost of acquisition, but in case of
permanent diminution in value of long term investment, provision is
made to recognise the decline.
G. Foreign Exchange Transaction
Foreign currency transactions during the year are recorded at rates of
exchange prevailing on the date of transactions. Foreign currency
assets and liabilities are translated into Rupees at the rate of
exchange prevailing on the date of the Balance Sheet. All exchange
differences are dealt with in the statement of profit and loss, except
those relating to the acquisition of fixed assets which are adjusted in
the cost of the assets till it is ready for the intended use.
Exchange differences arising on account of rollover/cancellation of
forward contracts are recognized as income/expense of the period in
line with the movement in the underlying exposures.
H. Inventories
All the items of Inventories are valued Lower of cost or net realisable
value. The basis of determining cost for various categories of
inventories is stated hereunder:-
a) Raw materials : Lower of Cost/Net realisable value (FIFO)
b) Packing Materials : Lower of Cost/Net realisable value (FIFO)
c) Material in Transit : Actual cost
d) Work in process : Material cost plus appropriate share of Labor, Mfg
overheads
e) Finished Goods : Material cost plus appropriate share of Labor, Mfg
overheads
f) Scrap : At realisable value
g) Stores & others : At cost
h) Cylinders : At cost less amortization in case of old cylinders
I. Borrowing Costs
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of such
assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are recognised as expense in the period in which they
are incurred.
J. Retiring Benefits
a) Provident Fund
Contribution to Provident Fund is made to Government/Recognized
provident fund as required by the statutes/rules.
b) Gratuity
The Company has instituted a Group-cum-Life Insurance Scheme with the
Life Insurance Corporation of India, so far as gratuity is concerned.
c) Leave Encashment
The benefit of encashment of the leave is given to the employees of the
company during the year.
K. Provision, Contingent Liabilities and Contingent Assets
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
L. Taxes On Income
The provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provisions of the Income-tax
Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
M. Prior Period Adjustments
All identifiable items of income and expenditure pertaining to prior
period are accounted through "Prior Period Adjustments Account".
N. Impairment Of Assets
The company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit & Loss Account. If at the Balance Sheet date,
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
O. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss after tax 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 after tax for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive potential
equity shares.
P. Cash and cash equivalent
Cash and cash equivalents for the purposes of financial statement
includes cash in hand, Balances with Banks and Fixed deposits with
banks.
Q. Government Grants and Subsidies
a) Government grants and subsidies are recognised when there is
reasonable assurance that the Company will comply with the conditions
attached thereto and that the grants will be received.
b) Capital Government Grants or Subsidies relating to specific fixed
assets are deducted from the gross value of the respective fixed assets
and other capital grants are credited to Capital Reserve.
c) Other Government Grants or Subsidies relating to an expense item are
recognised as income over the period to match them on a systematic
basis to the costs or deducted from related expenses.
R. Current/Non-Current
All assets and liabilities are presented as Current or Non-current as
per the Company''s normal operating cycle and other criteria set out in
the Revised Schedule VI of the Companies Act, 1956. Based on the nature
of products and the time between the acquisition of assets for
processing and their realisation, the Company has ascertained its
operating cycle as 12 months for the purpose of Current/Non current
classification of assets and liabilities.
Mar 31, 2011
BASIS OF ACCOUNTING
The financial statements have been prepared under the historical cost
convention on accrual basis of accounting and in accordance with
applicable Accounting Standards and relevant presentational requirement
of the Companies Act, 1956.
2 REVENUE RECOGNITION
a) Sales
Sales are recongnised on shipment or dispatch to customer and are
inclusive of income from job work, excise duty and VAT, net of trade
discounts and returns
b) Other Income
Other Income is recongnised on accrual basis except when realisation of
such income is uncertain.
Claims lodged with the Insurance Company in respect of risks covered
are accounted for as and when admitted by the Insurance Company
3 FIXED ASSETS
Fixed Assets are stated at cost, net of CENVAT credit, if any, after
reducing accumulated depreciation until the date of the Balance Sheet.
Direct cost are capitalized until the assets are ready for use and
include financing costs relating to any borrowing attributable to
acquisition. Capital work - in- progress includes the cost of fixed
assets that are not yet ready for the intended use, advances paid to
acquire fixed assets and the cost of assets not put to use before the
balance sheet date
Depreciation on fixed assets has been provided on Straight Line method
as per the rates prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation on additions to the Fixed Assets are provided on pro-rata
basis from the succeeding month in which put to use.
4 INVESTMENTS
Long Term Investments are stated at cost of acquisition, but in case of
permanent diminution in value of long term
investment, provision is made to recognise the decline.
5 INVENTORIES
All the items of Inventories are valued Lower of cost or net realizable
value. The basis of determining cost for various categories of
inventories is stated here under:-
a) Raw materials Lower of Cost / Net realisable value First in First
out basis
b) Packing Materials Lower of Cost / Net realisable value First in
First out basis
c) Material in Transit Actual cost
d) Work in process Material cost plus appropriate share of Labour, Mfg
overheads
e) Finished Goods Material cost plus appropriate share of Labour, Mfg
overheads
f) Scrap At realisable value
g) Stores & others At cost
h) Cylinders At cost less amortization in case of old cylinders
6 BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of such
assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are recognised as expense in the period in which they
are incurred,
7 INTANGIBLE ASSETS
Intangible assets are recognized as per the criteria specified in
Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute
of Chartered Accountants of India and are amortized over their
respective individual estimated useful lives on a straight line basis,
commencing from the date the asset is available to the company for its
use.
8 RETIRING BENEFITS
a) Provident Fund
Contribution to Provident Fund is made to Government / Recognized
provident fund as required by the statutes / rules.
b) Gratuity
Liability with regard to gratuity has been determined by actuarial
valuation as at the balance sheet date. The company contributes
to the group gratuity plan of LIC of India. The same Is accounted
on cash basis.
c) Leave Encashment
The company extends the benefit of encashment of leave to it's'
employees while in service as well as on retirement basis. The
encashment of leave while in service, being at the option of employees
Is being accounted on cash basis.
9 FOREIGN EXCHANGE TRANSACTION
Foreign currency transactions during the year are recorded at rates of
exchange prevailing on the date of transactions. Foreign currency
essets and liabilities are translated into Rupees at the rate of
exchange prevailing on the date of the Balance Sheet. All exchange
differences are dealt with in the statement of profit and loss, except
those relating to the acquisition of fixed assets which are adjusted in
the cost of the assets.
10 CONTINGENT LIABILITIES
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made
11 TAXES ON INCOME
The provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provisions of the Income-tax
Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
12 PRIOR PERIOD ADJUSTMENTS
All identifiable items of income and expenditure pertaining to prior
period are accounted through "Prior Period Adjustments Account"
13 IMPAIRMENT OF ASSETS
The company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit & Loss Account. If at the Balance Sheet date,
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
Mar 31, 2010
1 BASIS OF ACCOUNTING
The financial statements have been prepared under the historical cost
convention on accrual basis of accounting and in accordance with
applicable Accounting Standards and relevant presentational requirement
of the Companies Act, 1956.
2 REVENUE RECOGNITION
a) Sales
Sales are recongnised on shipment or dispatch to customer and are
inclusive of income from job work, excise duty and VAT, net of trade
discounts and returns
b) Other Income
Other income is recongnised on accrual basis except when realisation of
such income 8s uncertain.Claims lodged with the Insurance Company in
respect of risks covered are accounted for as and when admitted by the
Insurance Company
3 FiXED ASSETS
Fixed Assets are stated at cost, net of GENVAT credit, if any, after
reducing accumulated depreciation until the date of the Balance Sheet.
Direct cost are capitalized until the assets are ready for use and
include financing costs relating to any borrowing attributable to
acquisition. Capital work - in- progress includes the cost of fixed
assets that are not yet ready for the intended use, advances paid to
acquire fixed assets and the cost of assets not put to use before the
balance sheet date.
Depreciation on fixed assets has been provided on Straight Line method
as per the rates prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation on additions to the Fixed Assets are provided on pro-rata
basis from the succeeding month in which put to use.
4 INVESTMENTS
Long Term Investments are stated at cost of acquisition, but in case of
permanent diminution In value of long term investment, provision is
made to recognise the decline.
5 INVENTORIES
All the items of Inventories are valued Lower of cost or net realizable
value. The basis of determining cost for various categories of
inventories is stated hereunder:-
a) Raw materials Lower of Cost / Net realisable value First in First
out basis
b) Packing Materials Lower of Cost / Net realisable value First in
First out basis
c) Material in Transit Actual cost
d) Work in process Material cost plus appropriate share of Labour, Mfg
overheads
e) Finished Goods Material cost plus appropriate share of Labour, Mfg
overheads
f) Scrap At realisable value
g) Stores & others At cost
h) Cylinders At cost less amortization in case of old cylinders
6 BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalised as part of such
assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are recognised as expense in the period In which they
are incurred.
7 INTANGIBLE ASSETS
Intangible assets are recognized as per the criteria specified in
Accounting Standard (AS) 26 Intangible Assets" issued by the Institute
of Chartered Accountants of India and are amortized over their
respective individual estimated useful lives on a straight line basis,
commencing from the date the asset is available to the company for its
use.
8 RETIRING BENEFITS
a) Provident Fund
Contribution to Provident Fund is made to Government / Recognized
provident fund as required by the statutes / rules.
b) Gratuity
Liability with regard to gratuity has been determined by actuarial
valuation as at the balance sheet date. The company contributes to the
group gratuity plan of LIC of India. The same is accounted on cash
basis.
c) Leave Encashment
The company extends the benefit of encashment of leave to its
employees while in service as well as on retirement basis. The
encashment of leave while in service, being at the option of employees
is being accounted on cash basis.
9 FOREIGN EXCHANGE TRANSACTION
Foreign currency transactions during the year are recorded at rates of
exchange prevailing on the date of transactions. Foreign currency
assets and liabilities are translated into Rupees at the rate of
exchange prevailing on the date of the Balance Sheet. All exchange
differences are dealt with in the statement of profit and loss, except
those relating to the acquisition of fixed assets which are adjusted in
the cost of the assets.
10 CONTINGENT LIABILITIES
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made
11 TAXES ON INCOME
The provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provisions of the Income-tax
Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
12 PRIOR PERIOD ADJUSTMENTS
All identifiable items of income and expenditure pertaining to prior
period are accounted through "Prior Period Adjustments Account"
13 IMPAIRMENT OF ASSETS
The company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit & Loss Account. If at the Balance Sheet date,
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.