Mar 31, 2018
A. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
a) BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:
The financial statements of the company are the company''s first Ind-AS financial Statements. The financial statements have been prepared on the accrual basis under the historical cost convention. The Company has adopted all the relevant Indian Accounting Standard & prepared these financial statements to comply in all material respects with the Accounting Standards notified under section 133 of the Companyâs Act, 2013, read together with rule-3 of the Companies (Indian Accounting Standard) Rules 2015 and companies (Indian Accounting Standard) amendment rule,2016 issued by Ministry of Corporate Affairs and the adoption was carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standard. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under section 133 of the Company Actâ 2013, read with rule 7 of the Companyâs (Accounts) Rule 2014 (I-GAAP) which was the previous GAAP.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
Presentation of Financial Statement:
The Balance sheet and the profit and loss account are prepared and presented in the format prescribed in the schedule-III to the companies act, 2013. The cash flow statement has been prepared and presented as per requirement of Ind-AS 7â statement of cash flowâ
b) USE OF ESTIMATES:
The preparation of the financial statements in conformity with the Indian generally accepted accounting principles requires making judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosures of contingent liabilities, at the end of the reporting period. Although these estimates are based on the Managements best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
c) TANGIBLE FIXED ASSETS
i. For transition to Ind-AS carrying value of property, plant and equipment under previous GAAP as on 1st April 17 is regarded as its deemed cost.
ii. Fixed assets are stated at cost of acquisition or construction or revalued amount whichever is applicable, net of accumulated depreciation/amortization and impairment loss.
iii. The cost comprises cost of acquisition, borrowing cost and any attributable cost of bringing the asset to the condition of its intended use. Cost also includes direct expenses incurred up to the date of capitalization/ commissioning. Any trade discounts and rebates are deducted in arriving at the purchase price.
iv. Machinery spares procured along with the plant and machinery or subsequently and whose use is expected to be irregular are capitalized separately, if cost of such spares is known and depreciated fully over the residual useful life of the related plant and machinery. If the cost of such spares is not known particularly when procured along with the mother plant, these are capitalized and depreciated along with the mother plant. The written down value (WDV) of the spares is charged as revenue expenditure in the year in which such spares are consumed. Similarly, the value of such spares procured and consumed in a particular year is charges as revenue expenditure in that year itself.
v. Subsequent expenditure related to an item of fixed asset is added back to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standards of performance.
vi. All the other expenses of existing fixed assets, including day to day repair and maintenance expenditure, are charged to the statement of profit and loss account to the period during which such expenses are incurred.
vii. Replacement of any part of the plant and machinery, which are of capital nature, are capitalized along with the main plant and machinery and cost of the replaced part is written off. In case the cost of the replaced part is not identifiable, the equal value of replacement is deducted from the existing gross block of that asset.
viii. Gains and losses arising from disposal /de-recognition of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.
ix. Tangible asset not ready for the intended use on the date of Balance Sheet are disclosed in âCapital Work- in- Progressâ.
x. In case of revaluation of fixed assets, any revaluation surplus is credited to the revaluation reserve, except to the extent that it reverses a revaluation decrease of the same asset previously recognized in the statement of profit and loss, in which case the increase is recognized in the statement of profit and loss. A revaluation deficit is recognized in the statement of profit and loss, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation reserve.
xi. Land, Buildings, Plant & Machinery and Furniture & Fixture were revalued for Rs. 1255.54 Lakh as on 31.03.1993 and Rs. 925.77 Lakh as on 31.03.2004. The revaluation in respect of these assets are based on current replacement cost by the Approved Valuer appointed for the purpose. As a result, the increased book value of such assets as above has been transferred to Revaluation Reserve in respective year.
Expenditure during construction/erection period is included under Capital Work-in-Progress and will be allocated to the respective fixed assets on completion of construction/erection.
Capital Work in Progress has been transferred to the respective assets to the extent the construction/erection of Assets has been completed during the financial year 2017-18.
d) BORROWING COST
Borrowing cost includes interest, fees and other ancillary costs incurred in connection with the arrangement of borrowings. Borrowings cost that are directly attributable to the acquisition of or constructions of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset which necessarily takes substantial period of time to get ready for intended use. All other borrowing cost are recognized in the Statement of Profit and Loss.
e) DEPRECIATION
Leasehold land-amortized over the period of 99 years Depreciation on fixed assets is calculated on a straight line basis using the rates arrived at based on the useful lives estimated by the management. The company has used the following rates to provide depreciation on its fixed assets.
f) Impairment of tangible and intangible assets:
The Company assesses at each Balance Sheet date whether there is any indication than 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 statement of profit and loss. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. Impairment losses for continuing operations, including impairment on inventories are recognized on the statement of profit and loss, except for the previously revalued tangible fixed asset, where the revaluation was taken to revaluation reserve. In this case, the impairment is also recognized in revaluation reserve up to the amount of any previous revaluation.
g) Investments
i) Recognition and Measurement
Investments which are readily realizable and intended to be held for not more than a year, from the date of acquisition, are classified at cost.
On initial recognition, all investments are measured at cost. The Cost comprises purchase price and directly attributable acquisition charges such as brokerages, fees and duties. If an investment is acquired, or partly acquired, by the issue of share or other securities, the acquisition cost is the fair market value of the securities issued. If an investment is acquired in exchange for an another asset, the acquisition is determined by the reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.
However, provision for diminution in value of investments is made to recognize a decline, other than temporary, in the value of investments. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower, determined on an individual basis.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds, is charged to or credited to the Statement of Profit & Loss.
ii) Presentation and disclosure
Investments, which are readily realizable and intended to be held for not more than one year from balance sheet date, are classified as current investments. All other investments are classified as non-current investments
h) Inventories
i) Raw materials, components, stores and spares are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on First in First out Method.
ii) Work-in-progress and finished goods are valued at lower of cost and net realizable value which includes appropriate production overheads. Cost of finished goods includes excise duty.
iii) Traded goods are valued at lower of cost and net realizable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on a weighted average basis.
iv) Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
i) Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized.
i. Sale of goods
Revenue from sale of goods is recognized when the significant risks and rewards of ownership are passed on to the customer. Sales are accounted net of returns, Sales Tax and freight. Revenue from services is recognized when services are rendered to customers. Dividend Income is accounted when the right to receive is established.
ii. Interest
Revenue from Interest is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head âother incomeâ in the statement of profit and loss.
j) Government grants and export incentives
Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants will be received. Government grants related to revenue are recognized on a systematic basis in the Statement of Profit and Loss as a part of other operating revenues.
k) Foreign currency Transactions
i) Initial Recognition
Foreign currency transaction are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of the transactions.
ii) Conversion
Foreign currency monetary items are translated using the exchange rate prevailing on the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate on the date of transaction. Non-monetary items which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate on the date when such value was determined.
iii) Exchange Difference
All exchange gains and losses arising out of translation/restatement, are accounted for in the statement of profit and loss.
l) Employee Benefits
i) Defined Contribution Plan
Retirement benefits in the form of provident fund and Employees state Insurance Contribution are defined contribution scheme. The Company has no obligation, other than the contribution payable to these funds/schemes. The Company recognized contribution payable to this fund/scheme as expenditure, when an employee renders the related services. If the contribution payable to these funds/schemes for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the funds/schemes are recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.
ii) Defined Benefit Plan:
The gratuity liability is determined on the basis of actuarial valuation as at year end. Provision in respect of leave encasement is made based on the basis of actual leave balance of employees at the end of the Year in accordance with Accounting Standard-15 on "Accounting for retirement Benefits in the financial statement of Employer" as issued by the Institute of Chartered Accountants of India.
iii) Leave Encashment
The company provides for leave encashment liability of its employees who are eligible for encashment of accumulated leave based on actuarial valuation of the leave encashment liability of the balance sheet date, carried out date and independent actuary.
m) Taxes on Income
i) Current Tax: Current Tax is determined as the amount of tax payable on taxable income for the years as per the provisions of Income Tax Act. 1961.
ii) Deferred Tax: Deferred Tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted on the reporting date. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that the sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
n) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the period. The weighted average number of equity share outstanding during the period is adjusted for events such as bonus issues, bonus elements in a right issue, shares split and reverse share split (consolidation of share) that have changed the number of equity share outstanding, without a corresponding changes in resources.
o) Provisions and Contingent liabilities
A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimates can be made on the amount of the obligation. Provisions are not discounted to their present value are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of once or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but disclose its existence in the financial statements.
p Cash and Cash equivalents
Cash comprises cash in hand and demand deposit with banks. Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and cash in hand and short-term investments with an original maturity of three months or less.
q) Loans Repayable on demand or on due date from State Bank of India are Secured Against Hypothecation of present & future stock of raw materials, Stock in process, finished goods, Stores & spare parts Book debts & Land
r) Segment Reporting
i) Primary Segment
The company is engaged in manufacturing of Paper & Labsa and Trading Activity. Management has identified reportable primary Segment & Geographic secondary Segment in accordance with Accounting Standard 108 issued by the Institute of Chartered Accountants of India. Revenue & Expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to a specific segment have been allocated on the basis of associated revenue of the segment and manpower efforts. All other expenses which are not attributable or allocable to segment have been disclosed as un allocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un allocable.
ii) Secondary Segment
Geographical Revenue is allocated based on the location of the customer.
The company produces and sales, its products in India & also Export the same directly or indirectly to overseas countries. The overseas sales operations are managed by its office located in India. For the purpose of AS 108 regarding segment reporting secondary segment information on geographical segment is considered on the basis of revenue generated from Domestic & Export market.
t) Disclosure in accordance with Section 22 of the Micro, Small and Medium Enterprises Act, 2006:
The Company has asked for confirmations from suppliers and service providers who have registered themselves under the Micro Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) However no confirmations or information was received or available with the Company as on date of signing of final accounts, Hence information about the balance of Principal amount and the Interest due thereon remaining unpaid to supplier registered under Micro, Small and Medium Enterprises as defined under the MSMED Act, 2006 is not available:
Mar 31, 2015
A) BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared theses financial statements to
comply in all material respects with the accounting standards notified
under section 133 of the Companies Act, 2013, read together with
paragraph 7 of the Companies (Accounts) Rules 2014.The financial
statements have been prepared on the accrual basis under the historical
cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
b) USE OF ESTIMATES:
The preparation of the financial statements in conformity with the
Indian generally accepted accounting principles requires making
judgments, estimates and assumptions that affect the reported amount of
revenues, expenses, assets and liabilities and the disclosures of
contingent liabilities, at the end of the reporting period. Although
these estimates are based on the Managements best knowledge of current
events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.
c) TANGIBLE FIXED ASSETS
i. Fixed assets are stated at cost of acquisition or construction or
revalued amount whichever is applicable, net of accumulated
depreciation/amortization and impairment loss.
ii. The cost comprises cost of acquisition, borrowing cost and any
attributable cost of bringing the asset to the condition of its
intended use. Cost also includes direct expenses incurred up to the
date of capitalization/ commissioning. Any trade discounts and rebates
are deducted in arriving at the purchase price.
iii. Machinery spares procured along with the plant and machinery or
subsequently and whose use is expected to be irregular are capitalized
separately, if cost of such spares is known and depreciated fully over
the residual useful life of the related plant and machinery. If the
cost of such spares is not known particularly when procured along with
the mother plant, these are capitalized and depreciated along with the
mother plant. The written down value (WDV) of the spares is charged as
revenue expenditure in the year in which such spares are consumed.
Similarly, the value of such spares procured and consumed in a
particular year is charges as revenue expenditure in that year itself.
iv. Subsequent expenditure related to an item of fixed asset is added
back to its book value only if it increases the future benefits from
the existing asset beyond its previously assessed standards of
performance.
v. All the other expenses of existing fixed assets, including day to
day repair and maintenance expenditure, are charged to the statement of
profit and loss account to the period during which such expenses are
incurred.
vi. Replacement of any part of the plant and machinery, which are of
capital nature, are capitalized along with the main plant and machinery
and cost of the replaced part is written off. In case the cost of the
replaced part is not identifiable, the equal value of replacement is
deducted from the existing gross block of that asset.
vii. Gains and losses arising from disposal /derecognition of fixed
assets which are carried at cost are recognized in the Statement of
Profit and Loss.
viii. Tangible asset not ready for the intended use on the date of
Balance Sheet are disclosed in "Capital Work- in- Progress".
ix. In case of revaluation of fixed assets, any revaluation surplus is
credited to the revaluation reserve, except to the extent that it
reverses a revaluation decrease of the same asset previously recognized
in the statement of profit and loss, in which case the increase is
recognized in the statement of profit and loss. A revaluation deficit
is recognized in the statement of profit and loss, except to the extent
that it offsets an existing surplus on the same asset recognized in the
asset revaluation reserve.
x. Land, Buildings, Plant & Machinery and Furniture & Fixture were
revalued for Rs. 1255.54 lacs as on 31.03.1993 and Rs. 925.77 lacs as
on 31.03.2004. The revaluation in respect of these assets are based on
current replacement cost by the Approved Valuer appointed for the
purpose. As a result, the increased book value of such assets as above
has been transferred to Revaluation Reserve in respective year.
Capital Work in Progress has been transferred to the respective assets
to the extent the construction/erection of Assets has been completed
during the financial year 2014-15.
d) BORROWING COST
Borrowing cost includes interest, fees and other ancillary costs
incurred in connection with the arrangement of borrowings. Borrowings
cost that are directly attributable to the acquisition of or
constructions of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is an asset which necessarily takes
substantial period of time to get ready for intended use. All other
borrowing cost are recognized in the Statement of Profit and Loss.
e) DEPRECIATION
Leasehold land-amortized over the period of 99 years
Depreciation on fixed assets is calculated on a straight line basis
using the rates arrived at based on the useful lives estimated by the
management. The company has used the following rates to provide
depreciation on its fixed assets.
f) Impairment of tangible and intangible assets :
The Company assesses at each Balance Sheet date whether there is any
indication than 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 statement of profit and loss. After impairment,
depreciation is provided on the revised carrying amount of the asset
over its remaining useful life.
Impairment losses for continuing operations, including impairment on
inventories are recognized on the statement of profit and loss, except
for the previously revalued tangible fixed asset, where the revaluation
was taken to revaluation reserve. In this case, the impairment is also
recognized in revaluation reserve up to the amount of any previous
revaluation.
g) Investments
i) Recognition and Measurement
Investments which are readily realizable and intended to be held for
not more than a year, from the date of acquisition, are classified at
cost.
On initial recognition, all investments are measured at cost. The Cost
comprises purchase price and directly attributable acquisition charges
such as brokerages, fees and duties. If an investment is acquired, or
partly acquired, by the issue of share or other securities, the
acquisition cost is the fair market value of the securities issued. If
an investment is acquired in exchange for an another asset, the
acquisition is determined by the reference to the fair value of the
asset given up or by reference to the fair value of the investment
acquired, whichever is more clearly evident.
However, provision for diminution in value of investments is made to
recognize a decline, other than temporary, in the value of investments.
Investments other than long term investments being current investments
are valued at cost or fair value whichever is lower, determined on an
individual basis.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds, is charged to or credited to the
Statement of Profit & Loss.
ii) Presentation and disclosure
Investments, which are readily realizable and intended to be held for
not more than one year from balance sheet date, are classified as
current investments. All other investments are classified as
non-current investments
h) Inventories
i) Raw materials, components, stores and spares are valued at lower of
cost and net realizable value. However, materials and other items held
for use in the production of inventories are not written down below
cost if the finished products in which they will be incorporated are
expected to be sold at or above cost. Cost is determined on First in
First Out Method
ii) Work-in-progress and finished goods are valued at lower of cost and
net realizable value which includes appropriate production overheads.
Cost of finished goods includes excise duty.
iii) Traded goods are valued at lower of cost and net realizable value.
Cost includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition. Cost is determined
on a weighted average basis.
iv) Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
j) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and revenue can be reliably
measured The following specific recognition criteria must also be met
before revenue is recognized.
i. Sale of goods
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership are passed on to the customer. Sales are accounted
net of Excise Duty, returns, Sales Tax and freight. Revenue from
services is recognized when services are rendered to customers.
Dividend Income is accounted when the right to receive is established.
ii. Interest
Revenue from Interest is recognized on a time proportion basis taking
into account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
k) Government grants and export incentives
Government grants are recognized when there is reasonable assurance
that the Company will comply with the conditions attached to them and
the grants will be received. Government grants related to revenue are
recognized on a systematic basis in the Statement of Profit and Loss as
a part of other operating revenues.
l) Foreign currency Transactions
i) Initial Recognition
Foreign currency transaction are recorded in the reporting currency, by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency on the date of the
transactions.
ii) Conversion
Foreign currency monetary items are translated using the exchange rate
prevailing on the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated in a foreign currency,
are reported using the exchange rate on the date of transaction.
Non-monetary items which are measured at fair value or other similar
valuation denominated in a foreign currency, are translated using the
exchange rate on the date when such value was determined.
iii) Exchange Difference
All exchange gains and losses arising out of translation/restatement,
are accounted for in the statement of profit and loss.
Earnings in Foreign Exchange :
Receipt - Against Export Goods Rs. 204.89 Lacs
Expenditure in foreign currency :
Purchase of Imported Raw Materials Rs. 3012.09 Lacs Purchase of
Imported Stores Rs. 1.11 Lacs
m) Employee Benefits
i) Defined Contribution Plan
Retirement benefits in the form of provident fund and Employees state
Insurance Contribution are defined contribution scheme. The Company has
no obligation, other than the contribution payable to these
funds/schemes. The Company recognized contribution payable to this
fund/scheme as expenditure, when an employee renders the related
services. If the contribution payable to these funds/schemes for
service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the funds/schemes are recognized
as a liability after deducting the contribution already paid. If the
contribution already paid exceeds the contribution due for services
received before the balance sheet date, then excess is recognized as an
asset to the extent that the pre payment will lead to, for example, a
reduction in future payment or a cash refund.
ii) Defined Benefit Plan:
The gratuity liability is determined on the basis of actuarial
valuation as at year end. Provision in respect of leave encasement is
made based on the basis of actual leave balance of employees at the end
of the Year in accordance with Accounting Standard-15 on "Accounting
for retirement Benefits in the financial statement of Employer" as
issued by the Institute of Chartered Accountants of India. n) Taxes on
Income
i) Current Tax: Current Tax is determined as the amount of tax payable
on taxable income for the years as per the provisions
of Income Tax Act. 1961.
ii) Deferred Tax: Deferred Tax is recognized on timing difference
between the accounting income and the taxable income for the year and
quantified using the tax rates and laws enacted or substantively
enacted on the reporting date. Deferred tax assets are recognized and
carried forward to the extent that there is a reasonable certainty that
the sufficient future taxable income will be available against which
such deferred tax assets can be realized. In situations where the
company has unabsorbed depreciation or carry forward tax losses, all
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that they can be realized against
future taxable profits.
o) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity share outstanding during the period. The
weighted average number of equity share outstanding during the period
is adjusted for events such as bonus issues, bonus elements in a right
issue, shares split and reverse share split (consolidation of share)
that have changed the number of equity share outstanding, without a
corresponding changes in resources.
p) Provisions and Contingent liabilities
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and reliable estimates can be made on the amount of the obligation.
Provisions are not discounted to their present value are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of once or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but disclose its existence in the
financial statements.
q) Cash and Cash equivalents
Cash comprises cash in hand and demand deposit with banks. Cash and
cash equivalents for the purposes of cash flow statement comprise cash
at bank and cash in hand and short-term investments with an original
maturity of three months or less.
r) Segment reporting
The Company has identified one reportable business segment i.e
Manufacturing and Trading of Paper in this year. The accounting
policies adopted for segment reporting are in conformity with the
accounting policies of the company. Geographical reportable segment.
The company produces and sales, its products in India & also Export the
same directly or indirectly to overseas countries. The overseas sales
operations are managed by its office located in India. For the purpose
of AS 17 regarding segment reporting secondary segment formation on
geographical segment is considered on the basis of revenue generated
from Domestic & Export market.
s) Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Mar 31, 2014
I. BASIS OF ACCOUNTING: The financial statements are prepared under the
historical cost convention on the accrual basis of accounting and in
accordance with Accounting principles generally accepted in India and
comply with the accounting standards notified by the Central Government
of India, under the Companies (Accounting Standards) rules 2006 and
relevant provisions of the Companies Act, 1956.
ii. USE OF ESTIMATES: The preparation of the financial statements in
conformity with the generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amount of
assets and liabilities and the disclosures relating to contingent
assets and liabilities as on the date of financial statements and the
reported amount of revenues and expenses during the reporting period.
Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Actual results could
differ from these estimates.
iii. INVENTORIES: Inventories are valued at the lower of cost (net of
cenvat where applicable) and net realizable value. Cost includes cost
of purchase, cost of conversion, and other costs incurred in bringing
the inventories to their present location and condition. The method of
determination of cost of various categories of inventory are as
follows:
a) Raw Materials and Chemicals: - On First in First Out Method.
b) Finished goods and Work in Progress:- Weighted average cost of
Production, which includes appropriate production overheads or Net
Realizable Value which ever is lower.
c) Stores & Spare and packaging material: - Weighted average method.
iv. FIXED ASSETS AND DEPRECIATION: Fixed assets are stated at cost net
of recoverable taxes and includes amount added on revaluation, less
accumulated depreciation and impairment loss, if any. All costs
including finance cost till commencement of commercial production
attributable to the fixed assets are capitalized. Advances paid
towards the acquisition of fixed assets outstanding at each balance
sheet date are disclosed as "Capital Advances" under Long Term Loans
and Advances. Cost of fixed assets not ready to use before such date
are disclosed under "Capital Work- in- Progress".
Fixed assets are depreciated pro rata to the period of use, based on
straight line method at the rates prescribed under Schedule XIV of the
Companies Act, 1956.
No Depreciation has been charged on the assets, which have been fully
depreciated. Depreciation on the revalued portion of the fixed assets
is charged to Revaluation Reserve Account.
v. IMPAIRMENT OF ASSETS: An asset is treated as impaired when the
carrying cost of assets exceeds its recoverable amount. An impairment
loss is charged to the profit & loss account when an asset is
identified as impaired. Reversal of impairment loss recognized in prior
periods is recorded when there is an indication that the impairment
losses recognized for the assets no longer exist or have decreased.
Post impairment, depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
vi. RESEARCH AND DEVELOPMENT: Expenditure incurred on research and
development activities is expensed. R & D expenses with respect to
Fixed assets is capitalized.
vii. REVENUE RECOGNITION: Revenue is recognized only when it can be
readily measured and it is reasonable to expect ultimate collection.
Sales are accounted net of Excise Duty, returns, Sales Tax and freight.
Revenue from services is recognized when services are services are
rendered to customers. Interest income is recognized using time
proportion method except interest received from G.E.B. Deposit which is
recognized on receipt basis. Dividend Income is accounted when the
right to receive is established.
viii. FOREIGN EXCHANGE TRANSACTION: Transactions in foreign currencies
are accounted at the exchange rates prevailing on the date of the
transactions and the realized exchange loss/gain are dealt with in the
Profit & Loss Account. Monetary assets and liabilities denominated in
foreign currency are restated at the rates of exchange as on the
Balance Sheet date and the exchange/gain loss is suitably dealt with in
the Profit & Loss Account.
ix. INVESTMENTS: Investments that are readily realisable and are
intended to be held for not more than one year from the date, on which
such investments are made, are classified as current investments. All
other investments are classified as long term investments. Current
Investments are stated at lower of cost and fair value. Long term
investments are stated at cost of acquisition. Provision for diminution
is made when such diminution is considered other than temporary in
nature. Valuation is determined on the basis of each category of
investments. There are no investments held by the company as on 31st
March 2014
x. EMPLOYEE BENEFITS :
DEFINED CONTRIBUTION PLAN: Fixed contributions to Provident Fund and
Employees State Insurance are recognized in the accounts at actual cost
to the company.
DEFINED BENEFIT PLAN: The gratuity liability is determined on the basis
of actuarial valuation as at year end. Provision in respect of leave
encashment is made based on the basis of actual leave balance of
employees at the end of the Year in accordance with Accounting
Standard-15 on "Accounting for retirement Benefits in the financial
statement of Employer" as issued by the Institute of Chartered
Accountants of India.
xi. TAXATION :
a. Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Provisions of MAT u/s 115 JB are not applicable to the company as per
the appealate order by the Department in past years.
b. Deferred tax is calculated at the rates and laws that have been
enacted or substantively enacted as of the Balance Sheet date and is
recognized on timing difference that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets, subject to consideration of prudence, are recognized and
carried forward only to the extent that there is a virtual certainty
that the asset will be realized in future.
xii. SEGMENT REPORTING :
(a) The accounting policies adopted for segment reporting are in line
with the accounting policies of the company.
(b) Revenue and expenses are identified to segments on the basis of
their relationship to the operating activities of the segment. Revenue
and expenses, which relate to the enterprise a whole and are not
allocable to segments on a reasonable basis, have been included under
unallocated expenses.
xiii. PROVISIONS, CONTINGENT LIABLITIES 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 outflow of resources.
Contingent Liabilities are not recognised, but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2013
I. BASIS OF ACCOUNTING: The financial statements are prepared under the
historical cost convention on the accrual basis of accounting and in
accordance with Accounting principles generally accepted in India and
comply with the accounting standards notified by the Central Government
of India, under the Companies (Accounting Standards) rules 2006 and
relevant provisions of the Companies Act, 1956.
ii. USE OF ESTIMATES: The preparation of the financial statements in
conformity with the generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amount of
assets and liabilities and the disclosures relating to contingent
assets and liabilities as on the date of financial statements and the
reported amount of revenues and expenses during the reporting period.
Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Actual results could
differ from these estimates.
iii. INVENTORIES: Inventories are valued at the lower of cost (net of
cenvat where applicable) and net realizable value. Cost includes cost
of purchase, cost of conversion, and other costs incurred in bringing
the inventories to their present location and condition. The method of
determination of cost of various categories of inventory are as
follows:
a) Raw Materials and Chemicals: - On First in First Out Method. b
Finished goods and Work in Progress:- Weighted average cost of
Production, which includes appropriate production overheads or Net
Realizable Value which ever is lower. c) Stores & Spare and packaging
material :- Weighted average method.
iv. FIXED ASSETS AND DEPRECIATION: Fixed assets are stated at cost net
of recoverable taxes and includes amount added on revaluation, less
accumulated depreciation and impairment loss, if any. All costs
including finance cost till commencement of commercial production
attributable to the fixed assets are capitalized Advances paid towards
the acquisition of fixed assets outstanding at each balance sheet date
are disclosed as "Capital Advances under Long Term Loans and Advances.
Cost of fixed assets not ready to use before such date are disclosed
under "Capital Work- in- ProgressÂ.
Fixed assets are depreciated pro rata to the period of use, based on
straight line method at the rates prescribed under Schedule XIV of the
Companies Act, 1956.
No Depreciation has been charged on the assets, which have been fully
depreciated. Depreciation on the revalued portion of the fixed assets
is charged to Revaluation Reserve Account.
v. IMPAIRMENT OF ASSETS: An asset is treated as impaired when the
carrying cost of assets exceeds its recoverable amount. An impairment
loss is charged to the profit & loss account when an asset is
identified as impaired. Reversal of impairment loss recognized in prior
periods is recorded when there is an indication that the impairment
losses recognized for the assets no longer exist or have decreased.
Post impairment, depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
vi. RESEARCH AND DEVELOPMENT: Expenditure incurred on research and
development activities is expensed. R & D expenses with respect to
Fixed assets is capitalized.
vii. REVENUE RECOGNITION: Revenue is recognized only when it can be
readily measured and it is reasonable to expect ultimate collection.
Sales are accounted net of Excise Duty, returns, Sales Tax and freight.
Revenue from services is recognized when services are rendered to
customers. Interest income is recognized using timeproportion method
except interest received from G.E.B. Deposit which is recognized on
receipt basis Dividend Income is accounted when the right to receive is
established.
viii. FOREIGN EXCHANGE TRANSACTION: Transactions in foreign currencies
are accounted at the exchange rates prevailing on the date of the
transactions and the realized exchange loss/gain are dealt with in the
Profit & Loss Account. Monetary assets and liabilities denominated in
foreign currency are restated at the rates of exchange as on the
Balance Sheet date and the exchange/gain loss is suitably dealt with in
the Profit & Loss Account.
ix. INVESTMENTS: Investments that are readily realisable and are
intended to be held for not more than one year from the date, on which
such investments are made, are classified as current investments. All
other investments are classified as long term investments. Current
Investments are stated at lower of cost and fair value. Long term
investments are stated at cost of acquisition. Provision for diminution
is made when such diminution is considered other than temporary in
nature. Valuation is determined on the basis of each category of
investments. There are no investments held by the company as on 31st
March 2013
x. EMPLOYEE BENEFITS :
DEFINED CONTRIBUTION PLAN: Fixed contributions to Provident Fund and
Employees State Insurance are recognized in the accounts at actual cost
to the company.
DEFINED BENEFIT PLAN: The gratuity liability is determined on the basis
of actuarial valuation as at year end. Provision in respect of leave
encashment is made based on the basis of actual leave balance of
employees at the end of the Year in accordance with Accounting
Standard-15 on "Accounting for retirement Benefits in the financial
statement of Employer" as issued by the Institute of Chartered
Accountants of India.
xi. TAXATION :
a. Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Provisions of MAT u/s 115 JB are not applicable to the company as per
the appealate order by the Department in past years.
b. Deferred tax is calculated at the rates and laws that have been
enacted or substantively enacted as of the Balance Sheet date and is
recognized on timing difference that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets, subject to consideration of prudence, are recognized and
carried forward only to the extent that there is a virtual certainty
that the asset will be realized in future.
xii. SEGMENT REPORTING :
(a) The accounting policies adopted for segment reporting are in line
with the accounting policies of the company.
(b) Revenue and expenses are identified to segments on the basis of
their relationship to the operating activities of the segment. Revenue
and expenses, which relate to the enterprise a whole and are not
allocable to segments on a reasonable basis, have been included under
unallocated expenses.
xiii. PROVISIONS, CONTINGENT LIABLITIES 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 outflow of resources.
Contingent Liabilities are not recognised, but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2012
I. BASIS OF ACCOUNTING: The financial statements are prepared under the
historical cost convention on the accrual basis of accounting and in
accordance with Accounting principles generally accepted in India and
comply with the accounting standards notified by the Central Government
of India, under the Companies (Accounting Standards) rules 2006 and
relevant provisions of the Companies Act, 1956.
ii. USE OF ESTIMATES: The preparation of the financial statements in
conformity with the generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amount of
assets and liabilities and the disclosures relating to contingent
assets and liabilities as on the date of financial statements and the
reported amount of revenues and expenses during the reporting period.
Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Actual results could
differ from these estimates.
iii. INVENTORIES: Inventories are valued at the lower of cost (net of
cenvat where applicable) and net realizable value. Cost includes cost
of purchase, cost of conversion, and other costs incurred in bringing
the inventories to their present location and condition. The method of
determination of cost of various categories of inventory are as
follows:
a) Raw Materials and Chemicals: Ã On First in First Out Method.
b) Finished goods and Work in Progress:- Weighted average cost of
Production, which includes appropriate production overheads or Net
Realizable Value which ever is lower.
c) Stores & Spare and packaging material :- Weighted average method.
iv. FIXED ASSETS AND DEPRECIATION: Fixed assets are stated at cost net
of recoverable taxes and includes amount added on revaluation, less
accumulated depreciation and impairment loss, if any. All costs
including finance cost till commencement of commercial production
attributable to the fixed assets are capitalized. Advances paid
towards the acquisition of fixed assets outstanding at each balance
sheet date are disclosed as "Capital Advances" under Long Term Loans
and Advances. Cost of fixed assets not ready to use before such date
are disclosed under "Capital Work-in-Progress".
Fixed assets are depreciated pro rata to the period of use, based on
straight line method at the rates prescribed under Schedule XIV of the
Companies Act, 1956.
No Depreciation has been charged on the assets, which have been fully
depreciated. Depreciation on the revalued portion of the fixed assets
is charged to Revaluation Reserve Account.
v. IMPAIRMENT OF ASSETS: An asset is treated as impaired when the
carrying cost of assets exceeds its recoverable amount. An impairment
loss is charged to the profit & loss account when an asset is
identified as impaired. Reversal of impairment loss recognized in prior
periods is recorded when there is an indication that the impairment
losses recognized for the assets no longer exist or have decreased.
Post impairment, depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
vi. RESEARCH AND DEVELOPMENT: Revenue expenditure incurred on research
and development activities is expensed. Fixed assets, relating to
research and development are capitalized and depreciation provided
there on.
vii. REVENUE RECOGNITION: Revenue is recognized only when it can be
readily measured and it is reasonable to expect ultimate collection.
Sales are accounted net of Excise Duty, returns, Sales Tax and freight.
Revenue from services is recognized when services are services are
rendered to customers. Interest income is recognized using
time proportion method except interest received from G.E.B. Deposit
which is recognized on receipt basis. Dividend Income is accounted
when the right to receive is established.
viii.FOREIGN EXCHANGE TRANSACTION: Transactions in foreign currencies
are accounted at the exchange rates prevailing on the date of the
transactions and the realized exchange loss/gain are dealt with in the
Profit & Loss Account. Monetary assets and liabilities denominated in
foreign currency are restated at the rates of exchange as on the
Balance Sheet date and the exchange/gain loss is suitably dealt with in
the Profit & Loss Account.
ix. INVESTMENTS: Investments that are readily realisable and are
intended to be held for not more than one year from the date, on which
such investments are made, are classified as current investments. All
other investments are classified as long term investments. Current
Investments are stated at lower of cost and fair value. Long term
investments are stated at cost of acquisition. Provision for diminution
is made when such diminution is considered other than temporary in
nature. Valuation is determined on the basis of each category of
investments.
x. EMPLOYEE BENEFITS :
DEFINED CONTRIBUTION PLAN: Fixed contributions to Provident Fund and
Employees State Insurance are recognized in the accounts at actual cost
to the company.
DEFINED BENEFIT PLAN: The gratuity liability is determined on the basis
of actuarial valuation as at year end. Provision in respect of leave
encashment is made based on the basis of actual leave balance of
employees at the end of the Year in accordance with Accounting
Standard-15 on "Accounting for retirement Benefits in the financial
statement of Employer" as issued by the Institute of Chartered
Accountants of India.
xi. TAXATION :
a. Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
b. Deferred tax is calculated at the rates and laws that have been
enacted or substantively enacted as of the Balance Sheet date and is
recognized on timing difference that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets, subject to consideration of prudence, are recognized and
carried forward only to the extent that there is a virtual certainty
that the asset will be realized in future.
xii. SEGMENT REPORTING :
(a) The accounting policies adopted for segment reporting are in line
with the accounting policies of the company.
(b) Revenue and expenses are identified to segments on the basis of
their relationship to the operating activities of the segment. Revenue
and expenses, which relate to the enterprise a whole and are not
allocable to segments on a reasonable basis, have been included under
unallocated expenses.
xiii. PROVISIONS, 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 outflow of resources.
Contingent Liabilities are not recognised, but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2010
I. BASIS OF PREPARATION OF FINANCIAL STATEMENT
The financial statements have been prepared primarily on the historical
cost convention and in accordance with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India and
the relevant provisions of the Company Act, 1956
II. METHOD OF ACCOUNTING:
Accounts are maintained on accrual basis. Claims / Refunds not
ascertainable with reasonable certainty are accounted for on settlement
basis.
III. FIXED ASSETS:
Fixed assets are shown at cost adjusted by revaluation of certain
assets less depreciation. Cost comprises the purchase price and other
attributable expenses and net of Cenvat / Value Added Tax.
IV. DEPRECIATION ON FIXED ASSETS:
(a) The Company follows the straight-line method of charging
depreciation on all its fixed assets. The depreciation has been
provided in the manner and the rates prescribed in Schedule XIV to the
Companies Act, 1956 on all the assets.
(b) No Depreciation has been charged on the assets, which have been
fully depreciated.
(c) Depreciation on the revalued portion of the fixed assets is charged
to Revaluation Reserve Account.
V. INVENTORIES :
Inventories are valued at lower of cost and net realizable value. The
method of arriving at cost of various categories of inventories is as
below:
(a) Raw Material - First in First out method.
(b) Stores & Spares and Packaging Material - Weighted Average Method.
(c) Finished goods and work-in progress - Weighted average cost of
production which comprises direct material costs and appropriate
overheads.
VI. SUNDRY DEBTORS, CREDITORS AND ADVANCES:
Specific debts and advances identified as irrecoverable or doubtful are
written off or provided for respectively.
VII. FOREIGN EXCHANGE TRANSACTIONS :
Transactions made during the year in foreign currency are recorded at
the exchange rate prevailing at the time of transaction. Assets and
Liabilities related to foreign currency transactions remaining
unsettled at the year end are translated at the contract rates, when
covered by forward cover contracts and at year end rate in other cases.
Realised gains and losses on foreign exchange transactions other than
those relating to fixed assets are recognized in the profit and loss
account. Gain / loss on transaction of long term liabilities incurred
to acquire fixed assets is treated as an adjustment to the carrying
cost of fixed assets
VIII.REVENUE RECOGNITION :
(a) Sale of goods is recognized at the point of dispatch of finished
goods to customers. Sales include amount recovered towards excise duty.
(b) Income from service is recognized at the time of rendering the
services.
IX. IMPAIRMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable amount. An impairment loss is charged to the
profit & loss account when an asset is identified as impaired. Reversal
of impairment loss recognized in prior periods is recorded when there
is an indication that the impairment losses recognized for the assets
no longer exist or have decreased. Post impairment, depreciation is
provided on the revised carrying value of the assets over its remaining
useful life.
X. BORROWING COST :
Borrowing cost is charged to Profit & Loss Account except cost of
borrowing for acquisition of qualifying assets which is capitalized
till the date of commercial use of asset.
XI. LEASES :
Lease rentals in respect of assets given on finance lease are accounted
for in reference to lease terms.
XII. INTANGIBLE ASSETS :
Intangible Assets are being recognized if the future economic benefits
attributable to the assets are expected to flow to the company and the
cost of the assets can be measured reliably
XIII.RETIREMENT BENEFITS :
Retirement benefits to employees are provided for by means of gratuity,
leave encashment and provident fund.
(a) The gratuity liability is determined on the basis of actuarial
valuation as at year end.
(b) Provision in respect of leave encashment is made based on the basis
of actual leave balance of employees at the end of the Year in
accordance with Accounting Standard-15 on "Accounting for retirement
Benefits in the financial statement of Employer" as issued by the
Institute of Chartered Accountants of India.
(c) Contribution to Provident fund & Pension scheme are charged to
Profit & Loss Account when due.
IV.TAXES ON INCOME:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognized subject to the
consideration of prudence in respect of deferred tax assets, on timing
differences being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or subsequent periods.
XV. SEGMENT REPORTING:
a) Primary Segment Reporting (Business Segment)
The Company has identified two reportable business segment
i) Manufacturing and Trading of Paper
ii) Trading in Chemical
Taking into account nature of the products and services, the differing
risk and returns. Revenue and expenses related to enterprise as a whole
and are not allocable to a segment has been disclosed as un allocable.
Investments tax, related assets and other assets and liabilities that
cannot be allocated to a segment have been disclosed as un-allocable.
(b) Geographical reportable segment
The company produces and sales, its products in India & also Export the
same directly or indirectly to overseas countries. The overseas sales
operation are managed by its office located in India. For the purpose
of AS 17 regarding segment reporting secondary segment information on
geographical segment is considered on the basis of revenue generated
from Domestic & Export market.
Due to Complexities of the operation & recording system of the company,
assets other than debtors have not been apportioned segment wise, since
the same are used interchangeably between the segments.
XVI. CONTINGENT LIABILITY:
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.