Mar 31, 2015
1.1 Basis of Accounting and preparation of financial statement
The financial statements are prepared in accordance with Generally
accepted accounting Principles(GAAP) under the Historical cost
convention on the accrual basis and on a going concern basis. GAAP
comprises mandatory accounting standards as prescribed by the
Companies(Accounting Standards) Rules, 2014, the provision of Companies
Act, 2013 and Guidelines issued by the Securities and Exchange Board of
India(SEBI).
1.2 Use of Estimates
The preparation of financial statements requires management to make
certain estimates and assumptions that effect the amount reported in
the financial statements and notes thereto. Differences between actual
results and estimates are recognized in the period in which they
materialize.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value. Cost includes all charges in
bringing the goods to the point of sale, Work-in-progress and finished
goods include appropriate proportion of overheads and, where
applicable, excise duty.
1.4 Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
is inclusive of freight, duties, levies and any Cost directly
attributable to bringing the assets to their present location and
working conditions for intended use.
1.5 Depreciation/Amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule II to the Companies Act, 1956 .
1.6 Investments
Investments are adjusted against the dues to the parties
1.7 Revenue Recognition
Revenues/Incomes and cost/expenditure are generally accounted on
accrual basis as they are earned or incurred except in case of
significant uncertainties. Income from sale of goods is recognised at
the point of dispatch from the Factory go down. Sale value includes
Excise duty and Frieght wherever applicable.
1.8 Taxes on income
Deferred Tax is not considered as in Earlier years due to insignificant
effect on the Profit/Loss for the Year.
1.9 Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. contingent Assets are neither recognized nor disclosed in the
financial statement.
1.10 Employee Benefits
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits:
Defined Contribution plans :
Company's contribution to provident fund and other funds are determined
under the relevant schemes and/or statute and charged to revenue.
Company's liability towards gratuity is determined at each balance
sheet date and provided for.
1.11 Borrowing Cost
Borrowing costs relating to acquisition or construction of fixed assets
which takes substantial period of time to get ready for its intended
use are included in the cost of fixed assets to the extent they relate
to the period till such assets are ready to be put to use. Other
Borrowing costs are recognized as an expense in the year in which they
are incurred.
Mar 31, 2014
1.1 Basis ofAccounting and preparation of financial statement
I) The financial statements are prepared in accordance with Generally
accepted accounting Principles(GAAP) under the Historical cost
convention on the accrual basis and on a going concern basis. GAAP
comprises mandatory accounting standards as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provision of CompaniesAct, 1956
and Guidelines issued by the Securities and Exchange Board of
India(SEBI).
1.2 Use of Estimates
The preparation of financial statements requires management to make
certain estimates and assumptions that effect the amount reported in
the financial statements and notes thereto. Differences between actual
results and estimates are recognized in the period in which they
materialize.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value. Cost includes all charges in
bringing the goods to the point of sale, Work-in-progress and finished
goods include appropriate proportion of overheads and, where
applicable, excise duty.
1.4 FixedAssets
All fixed assets are stated at cost less accumulated depreciation. Cost
is inclusive of freight, duties, levies and any Cost directly
attributable to bringing the assets to their present location and
working conditions for intended use.
1.5 Depreciation/Amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the CompaniesAct, 1956.
1.6 Investments
Investments are either classified as current or non-current based on
the Managements intention. Current investments are carried at the lower
of cost and fair value. Non-current investments are carried at cost and
provision recorded to recognize any decline, other than temporary, in
the carrying value of each investment.
1.7 Revenue Recognition
Revenues/Incomes and cost/expenditure are generally accounted on
accrual basis as they are earned or incurred except in case of
significant uncertainties. Income from sale of goods is recognised at
the point of dispatch from the Factory godown. Sale value includes
Excise duty and Frieght wherever applicable.
1.8 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income
TaxAct, 1961.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred
tax liablities are recognised for all timing differences. Deferred
tax assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets.
1.9 Provision, Contingent Liabilities and ContingentAssets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognizes but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statement.
1.10 Impairment ofFixedAssets
At the end of each period, the Company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indication that an impairment loss may have occurred in accordance
withAccounting Standard (AS-28) "Impairment ofAssets" issued by the
institute of Chartered Accounts of India. An impairment loss is charged
to the Profit & loss Account in the period in which, an asset is
identified as impaired, when the carrying value of the assets exceeds
its recoverable value. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
1.11 Foreign Currency Transaction
Year-end balance of foreign currency transaction is translated at the
year-end rates and the corresponding effect is given in the respective
accounts. Transaction completed during the year are adjusted on actual
basis. In respect of transaction covered by forward exchange contracts,
the difference between the forward rate and exchange rate at the
inception of contract is recognised as income or expenses over the life
of the contract.
1.12 Employee Benefits
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits:
Defined Contribution plans:
Company''s contribution to provident fund and other funds are determined
under the relevant schemes and/or statute and charged to revenue.
Defined benefit plans:
Company''s liability towards gratuity is determined at each balance
sheet date and provided for.
1.13 Borrowing Cost
Borrowing costs relating to acquisition or construction of fixed assets
which takes substantial period of time to get ready for its intended
use are included in the cost of fixed assets to the extent they relate
to the period till such assets are ready to be put to use. Other
Borrowing costs are recognized as an expense in the year in which they
are incurred.
Mar 31, 2013
1.1 Basis of Accounting and preparation of financial statement
I) The financial statements are prepared in accordance with Generally
accepted accounting Principles(GAAP) under the Historical cost
convention on the accrual basis and on a going concern basis. GAAP
comprises mandatory accounting standards as prescribed by the
Companies(Accounting Standards) Rules, 2006, the provision of Companies
Act, 1956 and Guidelines issued by the Securities and Exchange Board of
India(SEBI).
1.2 Use of Estimates
The preparation of financial statements requires management to make
certain estimates and assumptions that effect the amount reported in
the financial statements and notes thereto. Differences between actual
results and estimates are recognized in the period in which they
materialize.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value. Cost includes all charges in
bringing the goods to the point of sale, Work-in-progress and finished
goods include appropriate proportion of overheads and, where
applicable, excise duty.
1.4 Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
is inclusive of freight, duties, levies and any Cost directly
attributable to bringing the assets to their present location and
working conditions for intended use.
1.5 Depreciation/Amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956 .
1.6 Investments
Investments are either classified as current or long term based on the
Managements intention. Current investments are carried at the lower of
cost and fair value. Long term investments are carried at cost and
provision recorded to recognize any decline, other than temporary, in
the carrying value of each investment.
1.7 Revenue Recognition
Revenues/Incomes and cost/expenditure are generally accounted on
accrual basis as they are earned or incurred except in case of
significant uncertainties. Income from sale of goods is recognised at
the point of dispatch from the Factory godown. Sale value includes
Excise duty and Frieght wherever applicable.
1.8 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liablities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income.
1.9 Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognizes but are disclosed in the
notes. contingent Assets are neither recognized nor disclosed in the
financial statement.
1.10Impairment of Fixed Assets
At the end of each period, the Company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indication that an impairment loss may have occurred in accordance with
Accounting Standard (AS-28) "Impairment of Assets" issued by the
institute of Chartered Accounts of India. An impairment loss is charged
to the Profit & loss Account in the period in which, an asset is
identified as impaired, when the carrying value of the assets exceeds
its recoverable value. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
1.11 Foreign Currency Transaction
Year-end balance of foreign currency transaction is translated at the
year-end rates and the corresponding effect is given in the respective
accounts. Transaction completed during the year are adjusted on actual
basis. In respect of transaction covered by forward exchange contracts,
the difference between the forward rate and exchange rate at the
inception of contract is recognised as income or expenses over the life
of the contract.
1.12 Employee Benefits
Short term employee benefit obligations are estimated and provided for.
Post employment benefits and other long term employee benefits:
Defined Contribution plans :
Company''s contribution to provident fund and other funds are determined
under the relevant schemes and/or statute and charged to revenue.
Defined benefit plans :
Company''s liability towards gratuity is determined at each balance
sheet date and provided for.
1.13 Borrowing Cost
Borrowing costs relating to acquisition or construction of fixed assets
which takes substantial period of time to get ready for its intended
use are included in the cost of fixed assets to the extent they relate
to the period till such assets are ready to be put to use. Other
Borrowing costs are recognized as an expense in the year in which they
are incurred.
Mar 31, 2012
1.1 Basis of Accounting and preparation of financial statement
I) The financial statements are prepared in accordance with Generally
accepted accounting Principles(GAAP) under the Historical cost
convention on the accrual basis and on a going concern basis. GAAP
comprises mandatory accounting standards as prescribed by the
Companies(Accounting Standards) Rules, 2006, the provision of Companies
Act, 1956 and Guidelines issued by the Securities and Exchange Board of
India(SEBI).
II) The Financial statements for the year ended March 31,2011 had been
prepared as per the applicable, pre-revised schedule VI to the
Companies Act, 1956 . Consequent to the notification of revised
Schedule VI under the companies Act 1956, the financial statement for
the year ended March 31, 2012 are prepared as per the revised schedule
VI. Accordingly, the previous year figures have also been reclassified
to conform to this year''s classification. The adoption of revised
schedule VI for previous year figures does not impact recognition and
measurement principles followed for preparation of financial
statements.
1.2 Use of Estimates
The preparation of financial statements requires management to make
certain estimates and assumptions that effect the amount reported in
the financial statements and notes thereto. Differences between actual
results and estimates are recognized in the period in which they
materialize.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value. Cost includes all charges in
bringing the goods to the point of sale, Work-in-progress and finished
goods include appropriate proportion of overheads and, where
applicable, excise duty.
1.4 Depreciation/Amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
1.5 Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
is inclusive of freight, duties, levies and any Cost directly
attributable to bringing the assets to their present location and
working conditions for intended use.
1.6 Investments
Investments are either classified as current or long term based on the
Managements intention. Current investments are carried at the lower of
cost and fair value.. Long term investments are carried at cost and
provision recorded to recognize any decline, other than temporary, in
the carrying value of each investment.
1.7 Revenue Recognition
Revenues/Incomes and cost/expenditure are generally accounted on
accrual basis as they are earned or incurred except in case of
significant uncertainties.
1.8 Taxes on income
a) Current tax is the amount of tax payable on the taxable income for
the year as determined in accordance with the provisions of the Income
Tax Act, 1961.
b) Minimum Alternate Tax (MAT) paid in accordance with the tax laws,
which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow
to the Company.
c) Deferred tax is recognised on timing differences, being the
differences between the taxable income and the accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods, subject to the consideration of prudence.
1.9 Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognizes but are disclosed in the
notes, contingent Assets are neither recognized nor disclosed in the
financial statement.
1.10 Impairment of Fixed Assets
At the end of each period, the Company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indication that an impairment loss may have occurred in accordance with
Accounting Standard (AS-28) "Impairment of Assets" issued by the
institute of Chartered Accounts of India. An impairment loss is charged
to the Profit & loss Account in the period in which, an asset is
identified as impaired, when the carrying value of the assets exceeds
its recoverable value. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
1.11 Foreign Currency Transaction
Year-end balance of foreign currency transaction is translated at the
year-end rates and the corresponding effect is given in the respective
accounts. Transaction completed during the year are adjusted on actual
basis. In respect of transaction covered by forward exchange contracts,
the difference between the forward rate and exchange rate at the
inception of contract is recognised as income or expenses over the life
of the contract.
1.12 Employee Benefits
(a) Shortterm employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits:
Defined Contribution plans:
Company''s contribution to provident fund and other funds are determined
under the relevant schemes and/or statute and charged to revenue.
Defined benefit plans:
Company''s liability towards gratuity is determined at each balance
sheet date and provided for.
1.13 Borrowing Cost
Borrowing costs relating to acquisition or construction of fixed assets
which takes substantial period of time to get ready for its intended
use are included in the cost of fixed assets to the extent they relate
to the period till such assets are ready to be put to use. Other
Borrowing costs are recognized as an expense in the year in which they
are incurred.
Mar 31, 2010
Basis of preparation of accounts:
The financial statements have been prepared on the basis of going
concern, and the historic cost convention, to comply in all material
aspects with applicable accounting principles in India, the Accounting
Standards issued by the Institute of Chartered Accountants of India and
the relevant provisions of the companies Act, 1956
Fixed Assets:
Fixed Assets are shown at cost or valuation less depreciation. Cost
comprises of the purchase price and other attributable expenses
including cost of barrowings till the date of Capitalization in the
case of assets involving material investment and substantial lead time.
Depreciation:
Depreciation is provided for on straight line method at the rates
specified in Schedule XIV to companies Act, 1956, as amended from time
to time.
Inventories:
Finished goods are valued at cost or market value whichever is lower
inclusive of excise duty. Semi- finished goods are valued at cost or
net realizable value whichever is lower. Stores and spares, raw
material and coal are valued at weighted average cost which includes
cost of transportation, insurance, unloading and other incidental
expenses. Material in transit is valued at cost plus insurance and
other incidental expenses.
Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Sale of goods:
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer.
Interest:
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend:
Revenue is recognized when the shareholders right to receive payment
is established by the Balance Sheet date.
Retirement Benefits:
Retirement benefits to employees are provided for by means of Provident
Fund, Gratuity and Leave Encashment. Liability towards Gratuity and
Leave Encashment are determined based on the management valuation as on
the Balance Sheet date.
Taxes on Income:
Provision for current tax is made for the amount of tax payable in
respect of taxable income for the year under Income Tax Act, 1961.
Deferred tax is recognized on timing difference being the difference
between taxable incomes and accounting income that originate in one
period and are capable of reversal in subsequent periods, subject to
consideration of prudence.
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