Mar 31, 2015
1. Basis of Preparation:
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 (" the 2013 Act") / Companies Act, 1956 (" the 1956
Act"), as applicable. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year except for change in the accounting
policy for depreciation.
All assets and liabilites have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. The
Company's activites in its business segments have operating cycle which
do not exceed 12 months. As a result, current assets comprise elements
that are expected to be realised within 12 months after the reporting
date and current liabilites comprise elements that are due for
settlement within 12 months after the reporting date.
2. Use of Estimates:
The preparation of financial statements is in conformity with the
Indian GAAP requires management to make estimates and assumptions that
affect the reported amounts of such assets and liabilities and
disclosure of contingent liabilities at the date of financial
statements and the results of operations during the end of the
reporting period. Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from the estimates.
a. Fixed Assets:
Fixed Assets are stated at their original cost comprising of the
purchase price and any attributable cost of bringing the asset to
working condition for its intended use.
b. Depreciation :
With effect from 01-04-2014 there has been a change in Policy for
determination of depreciation amount as per provisions prescribed in
Schedule II to the Companies Act, 2013 read with Section 123 of the
"Act"
Depreciation is calculated based on useful life of asset
retrospectively from the date of acquisition of the relevant Fixed
Assets. The depreciation for assets having residual life and carrying
Book value as on 01-04-2014 are being amortized over remaining residual
life. The depreciation for assets whose useful life expired but has
carrying book value are amortized as on 01-04-2014 by charging to the
Statement of Profit and Loss as an exceptional item. From 01-04-2014
the existing assets with carrying Book value and additions made
thereafter shall be provided in accordance with useful life as
prescribed in Schedule II of Companies Act, 2013.
c. Inventories:
i. Raw Materials, Stores and Spares are valued at lower of cost and net
realizable value and costs are determined on Weighted Average Cost.
ii. Work in progress and finished goods are valued at cost of purchase
of raw materials, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition or net
realisable value whichever is lower.
d. Revenue Recognition:
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods have been passed to the customer,
which generally coincides with their delivery to customers.
Interest is recognized on a time proportionate basis taking into
account the amount outstanding at the rate applicable.
Dividend is recognized as and when the Company's right to receive
payment is established by the reporting date.
e. Sales:
Sales are stated including excise duty deducting sales return. The cost
of free samples including duties and taxes to customers for sales
promotion are recognized as a sales expenses credited to the sales
account.
f. Cenvat:
Cenvat benefit is accounted by reducing from the purchase cost of raw
materials and adjusted against excise duty levied by the Excise
Department.
g. Excise duty:
Liability of Excise Duty on Finished goods lying in factory is included
in the cost of Finished goods by making provision for the Excise duty
payable.
h. Investments:
All the Investments in the Company are long term. Long term investments
are carried at cost. However provision for diminution in the value is
made to recognise a decline other than temporary in the value of
investments.
i. Foreign Currency Transactions :
i. Initial Recognition: Transactions denominated in foreign currencies
are recorded at the exchange rates prevailing on the date of the
transaction.
ii. Conversion: At the year end, monetary items denominated in foreign
currencies other than those covered by forward contracts are converted
into rupee equivalents at the year-end exchange rates.
iii. Forward Exchange Contracts: In respect of transactions covered by
forward exchange contracts, the difference between the forward rate and
the exchange rate at the date of the transaction is recognized as
income or expense over the period of the contract.
iv. Exchange Differences: All exchange differences arising on
settlement / conversion of foreign currency transactions are recognized
in the Statement of Profit and Loss.
j. Employee Benefits
i. Short Term Employee Benefits:
All employees benefits due wholly within a year of rendering services
are classified as short term benefits. These benefits like Salaries,
Wages, Short term compensation absences, expected cost of bonus,
exgratia are recognized as expenses on accrual basis at undiscounted
amount in the Statement of Profit and Loss. ii. Retirement Benefits:
a. Defined Contribution Plan:
Employer's contribution to Provident Fund are recognized as expenditure
in the Statement of Profit and Loss, as they are incurred. There are no
other obligations other than the contribution payable.
b. Defined Benefit Plan:
The Company provide Gratuity as defined benefit retirement plan and
there are no other Post- Retirement benefits. The defined benefit
Gratuity obligation on annual basis is determined by the actuarial
valuation at the end of the year using project unit credit method and
the liability is provided for. Necessary disclosures as required under
AS-15 are submitted in Notes forming part of financial statements.
k. Impairment of Assets:
The Company has taken into consideration the provisions of Accounting
Standard-28-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 is there, the Company estimates the
recoverable amount of the cash-generating unit to which the asset
belongs, if recoverable amount is less than its carrying amount, the
carrying amount is reduced to its recoverable amount.
l. Borrowing costs:
Borrowing costs are charged to the Statement of Profit and Loss except
in cases where the borrowings are directly attributable to the
acquisition, construction or production of qualifying asset.
m. Accounting for taxes on Income:
Tax expense comprise of Current and Deferred Tax. Current Income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income tax Act, 1961. Deferred tax is accounted for
in accordance with Accounting Standard 22 -Accounting for taxes on
Income. Accordingly, timing difference resulting in deferred tax
liabilities are recognized.
n. Cash and Cash Equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less.
o. Provisions and Contingent liabilities:
The Company recognises 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
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 or there is present
obligation, reliable estimate of the amount of which cannot be made.
Where there is a possible obligations or a present obligation and the
likelihood of outflow of resources is remote, no provision or
disclosure for contingent liability is made.
p. Earnings per share:
Basic Earnings per share is calculated by dividing the Net Profit or
Loss for the year attributable to Equity Share Holders by the Weighted
Average Number of Equity Shares outstanding during the year.
For the purpose of calculating Diluted Earnings per share Net profit or
loss for the year attributable to Equity Share Holders and the Weighted
Average Number of Equity Shares outstanding during the year are
adjusted for the effects of all dilutive potential equity share.
q. Events occurring after Balance sheet date:
Material events occurring after the Balance sheet date are taken into
recognizance
Mar 31, 2014
A. Fixed Assets:
Fixed Assets are stated at their original cost comprising of the
purchase price and any attributable cost of bringing the asset to
working condition for its intended use.
b. Depreciation :
Depreciation has been provided on straight- line method at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
The Assets whose values were fully depreciated have been removed from
the Gross Block and Depreciation Reserve.
c. Inventories:
i. Raw Materials, Stores and Spares are valued at lower of cost and
net realizable value and costs are determined on Weighted Average
Cost.
ii. Work in progress and finished goods are valued at cost of purchase
of raw materials, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition or
net realisable value whichever is lower.
d. Revenue Recognition:
Revenue from sale of goods is recognized when the significant risks
and rewards of ownership of the goods have been passed to the
customer, which generally coincides with their delivery to customers.
Interest is recognized on a time proportionate basis taking into
account the amount outstanding at the rate applicable.
Dividend is recognized as and when the Company''s right to receive
payment is established by the reporting date.
e. Sales:
Sales are stated including excise duty deducting sales return. The
cost of free samples including duties and taxes to customers for sales
promotion are recognized as a sales expenses credited to the sales
account.
f. Cenvat:
Cenvat benefit is accounted by reducing from the purchase cost of raw
materials and adjusted against excise duty levied by the Excise
Department.
g. Excise duty:
Liability of Excise Duty on Finished goods lying in factory is
included in the cost of Finished goods by making provision for the
Excise duty payable.
h. Investments:
All the Investments in the Company are long term. Long term
investments are carried at cost. However provision for diminution in
the value is made to recognise a decline other than temporary in the
value of investments.
i. Preliminary Expenses:
Preliminary Expenses (Miscellaneous Expenditure) including Public
issue Expenses and Research and Development Expenses incurred by the
Company are being amortised over a period of 10 years.
j. Foreign Currency Transactions:
i. Initial Recognition:
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of the transaction.
ii. Conversion:
At the year end, monetary items denominated in foreign currencies
other than those covered by forward contracts are converted into rupee
equivalents at the year-end exchange rates.
iii. Forward Exchange Contracts:
In respect of transactions covered by forward exchange contracts, the
difference between the forward rate and the exchange rate at the date
of the transaction is recognized as income or expense over the period
of the contract. iv. Exchange Differences: All exchange differences
arising on settlement / conversion of foreign currency transactions
are recognized in the Statement of Profit and Loss.
k. Employee Benefits
i. Short Term Employee Benefits:
All employees benefits due wholly within a year of rendering services
are classified as short term benefits. These benefits like Salaries,
Wages, Short term compensation absences, expected cost of bonus,
exgratia are recognized as expenses on accrual basis at undiscounted
amount in the Statement of Profit and Loss.
ii. Retirement Benefits:
a. Defined Contribution Plan:
Employer''s contribution to Provident Fund are recognized as
expenditure in the Statement of Profit and Loss, as they are incurred.
There are no other obligations other than the contribution payable.
b. Defined Benefit Plan:
The Company provide Gratuity as defined benefit retirement plan and
there are no other Post- Retirement benefits. The defined benefit
Gratuity obligation on annual basis is determined by the actuarial
valuation at the end of the year using project unit credit method and
the liability is provided for. Necessary disclosures as required
under AS-15 are submitted in Notes forming part of financial
statements.
l. Impairment of Assets:
The Company has taken into consideration the provisions of Accounting
Standard-28-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 is there, the Company estimates the
recoverable amount of the cash-generating unit to which the asset
belongs, if recoverable amount is less than its carrying amount, the
carrying amount is reduced to its recoverable amount.
m. Borrowing costs:
Borrowing costs are charged to the Statement of Profit and Loss except
in cases where the borrowings are directly attributable to the
acquisition, construction or production of qualifying asset.
n. Accounting for taxes on Income:
Tax expense comprise of Current and Deferred Tax. Current Income tax
is measured at the amount expected to be paid to the tax authorities
in accordance with the Income tax Act, 1961. Deferred tax is accounted
for in accordance with Accounting Standard 22 -Accounting for taxes on
Income. Accordingly, timing difference resulting in deferred tax
liabilities are recognized.
o. Provisions and Contingent liabilities:
The Company recognises a provision when there is a present obligation
as a result of a post event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
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 or there is present
obligation, reliable estimate of the amount of which cannot be made.
Where there is a possible obligations or a present obligation and the
likelihood of outflow of resources is remote, no provision or
disclosure for contingent liability is made.
p. Earnings per share:
Basic Earnings per share is calculated by dividing the Net Profit or
Loss for the year attributable to Equity Share Holders by the Weighted
Average Number of Equity Shares outstanding during the year. For the
purpose of calculating Diluted Earnings per share Net profit or loss
for the year attributable to Equity Share Holders and the Weighted
Average Number of Equity Shares outstanding during the year are
adjusted for the effects of all dilutive potential equity share.
q. Events occurring after Balance sheet date:
Material events occuring after the Balance sheet date are taken into
recognizance.
Mar 31, 2013
A. Fixed Assets:
Fixed Assets are stated at their original cost comprising of the
purchase price and any attributable cost of bringing the asset to
working condition for its intended use.
b. Depreciation :
Depreciation has been provided on straight- line method at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
The Assets whose values were fully depreciated have been removed from
the Gross Block and Depreciation Reserve.
c. Inventories:
i. Raw Materials, Stores and Spares are valued at lower of cost and
net realizable value and costs are deter- mined on Weighted Average
Cost.
ii. Work in progress and finished goods are valued at cost of purchase
of raw materials, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition or net
realisable value whichever is lower.
d. Revenue Recognition:
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods have been passed to the customer,
which generally coincides with their delivery to customers.
Interest is recognized on a time proportionate basis taking into
account the amount outstanding at the rate applicable. Dividend is
recognized as and when the Company''s right to receive payment is
established by the reporting date.
e. Sales:
Sales are stated including excise duty deducting sales return. The cost
of free samples including duties and taxes to customers for sales
promotion are recognized as a sales expenses credited to the sales
account.
f. Cenvat:
Cenvat benefit is accounted by reducing from the purchase cost of raw
materials and adjusted against excise duty levied by the Excise
Department.
g. Excise duty:
Liability of Excise Duty on Finished goods lying in factory is included
in the cost of Finished goods by making provision for the Excise duty
payable.
h. Investments:
All the Investments in the Company are long term. Long term investments
are carried at cost. However provision for diminution in the value is
made to recognise a decline other than temporary in the value of
investments.
i. Preliminary Expenses:
Preliminary Expenses (Miscellaneous Expenditure) including Public issue
Expenses and Research and Develop- ment Expenses incurred by the
Company are being amortised over a period of 10 years.
j. Foreign Currency Transactions:
i. Initial Recognition: Transactions denominated in foreign currencies
are recorded at the exchange rates prevail- ing on the date of the
transaction.
ii. Conversion: At the year end, monetary items denominated in foreign
currencies other than those covered by forward contracts are converted
into rupee equivalents at the year-end exchange rates.
iii. Forward Exchange Contracts: In respect of transactions covered by
forward exchange contracts, the difference between the forward rate and
the exchange rate at the date of the transaction is recognized as
income or expense over the period of the contract.
iv. Exchange Differences: All exchange differences arising on
settlement / conversion of foreign currency transac- tions are
recognized in the Statement of Profit and Loss.
k. Employee Benefits
i. Short Term Employee Benefits:
All employees benefits due wholly within a year of rendering services
are classified as short term benefits. These benefits like Salaries,
Wages, Short term compensation absences, expected cost of bonus,
exgratia are recognized as expenses on accrual basis at undiscounted
amount in the Statement of Profit and Loss.
ii. Retirement Benefits:
a. Defined Contribution Plan:
Employer''s contribution to Provident Fund are recognized as
expenditure in the Statement of Profit and Loss, as they are incurred.
There are no other obligations other than the contribution payable.
b. Defined Benefit Plan:
The Company provide Gratuity as defined benefit retirement plan and
there are no other Post- Retire- ment benefits. The defined benefit
Gratuity obligation on annual basis is determined by the actuarial
valuation at the end of the year using project unit credit method and
the liability is provided for. Neces- sary disclosures as required
under AS-15 are submitted in Notes forming part of financial
statements.
l. Impairment of Assets:
The Company has taken into consideration the provisions of Accounting
Standard-28-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 is there, the Company estimates the
recoverable amount of the cash-generating unit to which the asset
belongs, if recoverable amount is less than its carrying amount, the
carrying amount is reduced to its recover- able amount.
m. Borrowing costs:
Borrowing costs are charged to the Statement of Profit and Loss except
in cases where the borrowings are directly attributable to the
acquisition, construction or production of qualifying asset.
n. Accounting for taxes on Income:
Tax expense comprise of Current and Deferred Tax. Current Income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income tax Act, 1961. Deferred tax is accounted for
in accordance with Accounting Standard 22 -Accounting for taxes on
Income. Accordingly, timing difference resulting in deferred tax
liabilities are recognized.
o. Provisions and Contingent liabilities:
The Company recognises a provision when there is a present obligation
as a result of a post event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
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 or there is present
obligation, reliable estimate of the amount of which cannot be made.
Where there is a possible obligations or a present obligation and the
likelihood of outflow of resources is remote, no provision or
disclosure for contingent liability is made.
p. Earnings per share:
Basic Earnings per share is calculated by dividing the Net Profit or
Loss for the year attributable to Equity Share Holders by the Weighted
Average Number of Equity Shares outstanding during the year.
For the purpose of calculating Diluted Earnings per share Net profit or
loss for the year attributable to Equity Share Holders and the Weighted
Average Number of Equity Shares outstanding during the year are
adjusted for the effects of all dilutive potential equity share.
q. Events occurring after Balance sheet date:
Material events occuring after the Balancesheet date are taken into
recognizance.
Mar 31, 2012
1. Basis of Preparation:
The Company follows mercantile system of accounting and recognises
Income and Expenditure on accrual basis. The Accounts are prepared on
historical cost basis as a going concern and are consistent with
generally accepted accounting principles and applicable accounting
standards unless otherwise stated.
2. Change in Accounting policy:
During the year ended March 31, 2012 the revised Schedule VI notified
under the Companies Act, 1956 has become applicable to the Company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However it
has significant impact on presentation and disclosure made in the
financial statements.
3. Use of Estimates:
The preparation of financial statements is in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of such
assets and liabilities and disclosure of contingent liabilities at the
date of financial statements and the results of operations during the
end of the reporting period. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from the estimates.
4. Significant Accounting Policies
a. Fixed Assets:
Fixed Assets are stated at their original cost comprising of the
purchase price and any attributable cost of bringing the asset to
working condition for its intended use.
b. Depreciation :
Depreciation has been provided on straight- line method at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
The Assets whose values were fully depreciated have been removed from
the Gross Block and Depreciation Reserve.
c. Inventories:
i. Raw Materials, Stores and Spares are valued at lower of cost and
net realizable value and costs are determined on Weighted Average Cost.
ii. Work in progress and finished goods are valued at cost of purchase
of raw materials, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition or net
realisable value whichever is lower.
d. Revenue Recognition:
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods have been passed to the customer,
which generally coincides with their delivery to customers.
Interest is recognized on a time proportionate basis taking into
account the amount outstanding at the rate applicable.
Dividend is recognized as and when the Company's right to receive
payment is established by the reporting date.
e. Sales:
Sales are stated including excise duty deducting sales return. The cost
of free samples including duties and taxes to customers for sales
promotion are recognized as a sales expenses credited to the sales
account.
f. Cenvat:
Cenvat benefit is accounted by reducing from the purchase cost of raw
materials and adjusted against excise duty levied by the Excise
Department.
g. Excise duty:
Liability of Excise Duty on Finished goods lying in factory is included
in the cost of Finished goods by making provision for the Excise duty
payable.
h. Investments:
All the Investments in the Company are long term. Long term investments
are carried at cost. However provision for diminution in the value is
made to recognise a decline other than temporary in the value of
investments.
i. Preliminary Expenses:
Preliminary Expenses (Miscellaneous Expenditure) including Public issue
Expenses and Research and Development Expenses incurred by the Company
are being amortised over a period of 10 years.
j. Foreign Currency Transactions:
i. Initial Recognition: Transactions denominated in foreign currencies
are recorded at the exchange rates prevailing on the date of the
transaction.
ii. Conversion: At the year end, monetary items denominated in foreign
currencies other than those covered by forward contracts are converted
into rupee equivalents at the year-end exchange rates.
iii. Forward Exchange Contracts: In respect of transactions covered by
forward exchange contracts, the difference between the forward rate and
the exchange rate at the date of the transaction is recognized as
income or expense over the period of the contract.
iv. Exchange Differences: All exchange differences arising on
settlement / conversion of foreign currency transactions are recognized
in the Statement of Profit and Loss.
k. Employee Benefits
i. Short Term Employee Benefits:
All employees benefits due wholly within a year of rendering services
are classified as short term benefits. These benefits like Salaries,
Wages, Short term compensation absences, expected cost of bonus,
exgratia are recognized as expenses on accrual basis at undiscounted
amount in the Statement of Profit and Loss.
ii. Retirement Benefits:
a. Defined Contribution Plan:
Employer's contribution to Provident Fund are recognized as
expenditure in the Statement of Profit and Loss, as they are incurred.
There are no other obligations other than the contribution payable.
b. Defined Benefit Plan:
The Company provide Gratuity as defined benefit retirement plan and
there are no other Post- Retirement benefits. The defined benefit
Gratuity obligation on annual basis is determined by the actuarial
valuation at the end of the year using project unit credit method and
the liability is provided for. Necessary disclosures as required under
AS-15 are submitted in Notes forming part of financial statements.
I. Impairment of Assets:
The Company has taken into consideration the provisions of Accounting
Standard-28- 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 is there, the Company estimates the
recoverable amount of the cash-generating unit to which the asset
belongs if recoverable amount is less than its carrying amount the
carrying amount is reduced to its recoverable amount. "
m. Borrowing costs:
Borrowing costs are charged to the Statement of Profit and Loss except
in cases where the borrowings are directly attributable to the
acquisition, construction or production of qualifying asset.
n. Accounting for taxes on Income:
Tax expense comprise of Current and Deferred Tax. Current Income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income tax Act, 1961. Deferred tax is accounted for
in accordance with Accounting Standard 22 -Accounting for taxes on
Income. Accordingly, timing difference resulting in deferred tax
liabilities are recognized.
o. Provisions and Contingent liabilities:
The Company recognises a provision when there is a present obligation
as a result of a post event that probably requires an outflow of
resources and a reliable estimate can be made when of the amount of the
obligation. A disclosure for a contingent liability is made there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources or there is present obligation,
reliable estimate of the amount of which cannot be made. Where there is
a possible obligations or a present obligation and the likelihood of
outflow of resources is remote, no provision or disclosure for
contingent liability is made.
p. Earnings per share:
Basic Earnings per share is calculated by dividing the Net Profit or
Loss for the year attributable to Equity Share Holders by the Weighted
Average Number of Equity Shares outstanding during the year.
For the purpose of calculating Diluted Earnings per share net profit or
loss for the year attributable to Equity Share Holders and the Weighted
Average Number of Equity Shares outstanding during the year are
adjusted for the effects of all dilutive potential equity share.
q. Events occurring after Balance sheet date:
Material events occuring after the Balancesheet date are taken into
recognizance.
Mar 31, 2010
A. Accounting Concepts :
The Company follows mercantile system of accounting and recognizes
Income and Expenditure on accrual basis. The Accounts are prepared on
historical cost basis as a going concern and are consistent with
generally accepted accounting principles and applicable accounting
standards unless otherwise stated.
b. Use of Estimates:
The Preparation of financial statements is in conformity with generally
accepted accounting principal requires management to make estimates and
assumptions that affect the reported amounts of such assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the end of
the reporting period. Although these estimates are based upon
managements best knowledge of current events and actions, actual
results could differ from the estimates.
c. Fixed Assets :
Fixed Assets are stated at their original cost comprising of the
purchase price and any attributable cost of bringing the asset to
working condition for its intended use.
d. Depreciation :
Depreciation has been provided on Straight-line method at the rates
prescribed in the Schedule XIV of the Companies Act, 1956.
The assets whose values were fully depreciated have been removed from
the Gross Block and Depreciation Reserve.
e. Inventories :
i) Raw Materials, Stores & Spares are valued at lower of cost and net
realizable value and costs are determined on weighted average cost.
ii) Finished goods and Work in Progress are valued at cost of purchase
of raw materials, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition or net
realisable value whichever is lower.
f. Revenue Recognition:
Revenue from sales of goods is recognized when the significant risks
and rewards of ownership of the goods have passed to the customer,
which generally coincides with their delivery to customer.
g. Sales :
Sales are stated including excise duty deducting sales returns. The
cost of free samples including duties and taxes to customers for sales
promotion are recognised as sales expences credited to sales account.
h. Cenvat :
Cenvat benefit is accounted by reducing from the purchase cost of raw
materials and adjusted against the excise duty levied by the excise
department.
i. Excise Duty :
Liability for Excise Duty on Finished Goods lying in factory is
included in the cost of Finished Goods by making provision for the
excise duty payable.
j. Investments :
All the investments in the company are long term. Long term investments
are carried at cost. However, provision for diminution in value is
made to recognize a decline other than temoorarv in the value of
investments.
k. Preliminary Expenses :
Preliminary Expenses (Miscellaneous Expenditure) including Public Issue
Expenses and Research and Development Expenses incurred by the Company
are being amortised over a period of 10 years. (Amortisation commenced
from 2001-02).
l. Foreign Currency Transaction :
i) Initial Recognition: Transactions denominated in foreign currencies
are recorded at the exchange rates prevailing on the date of the
transaction.
ii) Conversion: At the year end, monetary items denominated in foreign
currencies other than those covered by forward contracts are converted
into rupee equivalents at the year-end exchange rates.
iii) Forward Exchange Contracts: In respect of transactions covered by
forward exchange contracts, the difference between the forward rate and
the exchange rate at the date of the transaction is recognized as
income or expense over the period of the contract.
iv) Exchange Differences: All exchange differences arising on
settlement/conversion of foreign currency transactions are recognised
in the Profit and Loss Account.
m Employee Benefits:
a) Short Term Benefits:
All employees benefits due wholly within a year of rendering services
are classified as short term benefits. These benefits like Salaries,
Wages, Short term compensation absences, expected cost of bonus,
exgratia are recognized as expenses on accrual basis at undiscounted
amount in profit & loss account
b) Retirement Benefits
Defined contribution plan
Employers contribution to Provident Fund are recognized as expenditure
in Profit & Loss Account, as they are incurred. There are no other
obligations other than the contribution payable.
Defined Benefit Plan
The Company provide Gratuity as defined benefit retirement plan and
there are no other Post-Retirement benefits. The defined benefit
Gratuity obligation on annual basis is determined by actuarial
valuation at the end of the year using project unit credit method and
the liability is provided for. Necessary disclosures as required under
AS-15 are submitted in Notes to Accounts.
n. The Company has taken into consideration the provisions of
Accounting Standard - 28 - 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 is there, the company
estimates the recoverable amount of the cash-generating unit to which
the asset belongs if recoverable amount is less than its carrying
amount, the carrying amount is reduced to its recoverable amount.
o Borrowing Costs : Borrowing costs are charged to profit and loss
account except in cases where the borrowings are directly attributable
to the acquisition, construction or production of qualifying asset.