Mar 31, 2015
1. BASIS OF PREPERATION OF FINANCIAL STATEMENTS
a) The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 2013. Accounting
policies not specifically referred to are consistent with generally
accepted accounting policies.
b) The company generally follows mercantile system of accounting and
recognizes significant items of Income & Expenditure on accrual basis.
2. FIXED ASSETS
The fixed assets are recorded at the cost which includes freight,
duties, levies and any directly attributable cost of bringing the
assets to their working condition for intended use, Adjustments arising
from exchange rate fluctuations relating to outstanding liabilities
attributable to the fixed assets are capitalized/ adjusted.
3. INVENTORIES
Inventories are valued on FIFO Method Raw Materials- at lower of cost
or net realizable value. Packing materials, consumable stores and
spares-at cost.
Stock-in-process- Material cost plus appropriate share of production
overheads.
Finished goods- at lower of cost or net realizable value.
4) CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet comprise cash at bank,
cash in hand & short term investments
5) EXPENDITURE ON EXPANSION
Expenditure directly relating to constructions/substantial expansion
activity is capitalized. Indirect expenditure incurred during
construction period is capitalized as a part of indirect construction
cost to the extent to which the expenditure is indirectly related to
construction or is incidental thereto. Income earned during
construction period is deducted from the total of indirect expenditure.
As regards indirect expenditure on expansion, only that portion is
capitalized which represents the marginal increase in such expenditure
involved as a result of capital expansion. Both direct and indirect
expenditure are capitalized only if they increase the value of the
asset beyond its original standard of performance.
6) DEPRECIATION
Depreciation is provided on SLM on all the fixed assets on the basis of
life of the assets as prescribed in Schedule II of the Companies Act,
2013.
7) RESEARCH AND DEVELOPMENT
Revenue expenditure incurred on Research & Development is charged to
Profit & Loss Account
8) REVENUE RECOGNITION
Revenue is recognized based on the nature of activity when
consideration can be reasonably measured and there exists reasonable
certainty of its recovery.
(a) Revenue from sale of goods is recognized when the substantial risks
and rewards of ownership are transferred to the buyer under the terms
of the contract.
(b) Other income is accounted for on accrual basis as and when the right
to receive arises.
9) FOREIGN CURRENCY TRANSACTIONS
Export sales are accounted for at exchange rate prevailing on the date
the documents are negotiated/ realized with/ through bank. In case of
direct remittance from buyers the difference between the exchange rates
on the dispatched date and actual exchange rate of foreign currency on
receipt of payment is booked in sales.
The assets and liabilities at the year end are translated at the
closing exchange rate and the difference between the transactions is
taken into profit and loss account.
The foreign currency transactions in respect of payment towards cost of
fixed assets, spares, traveling, commissions etc. are accounted for at
the exchange rates prevailing on the date of transaction/ remittance.
10) BORROWING COST
Borrowing costs that are attributable to the acquisition on
construction of qualifying assets are capitalized as a part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
11) TAXES ON INCOME
Tax expenses comprises of current, deferred income tax and fringe
benefit tax. Provision for current income tax and fringe benefits tax
is made for the amount of tax payable in respect of taxable income for
the year under The Income Tax Act, 1961. Deferred tax is recognized
subject to the consideration of prudence, on timing difference, being
the difference between the book profits and tax profits that originate
in one period and are capable of reversal in one or more subsequent
periods. The deferred tax assets and liabilities are measured using the
tax rates and tax loss that have been enacted or substantively enacted
at the balance sheet date. Deferred tax assets are recognized only to
the extent that there is a reasonable certainty that sufficient further
taxable income will be available against which such deferred tax assets
can be realized. If the company has carry forward of unabsorbed
depreciation and tax losses, deferred tax assets are recognized only
where virtual certainty that such deferred tax assets can be realized
against further taxable profits. Unrecognized deferred tax assets of
earlier years are reassessed and recognized to the extent that it has
become reasonably certain that further taxable income will be available
against which such deferred tax assets can be realized.
12) RETIREMENT BENEFITS
The liability on account of Gratuity is covered by the Group Gratuity
Policy taken from Life Insurance Corporation of India, Contribution to
the Gratuity fund is charged to revenue. The liability of Leave
Encashment is provided on actuarial basis. The contribution to the
Provident Fund is made as per the provisions of The Employees Provident
Fund and Miscellaneous Provisions Act, 1952.
13) USE OF ESTIMATES
The presentation of financial statements require estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the period in which
the results are known/ materialized.
14) EARNING PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividend & taxes) by the weighted average number
of equity shares outstanding during the financial year. Equity shares
that are partly paid up are treated as a fraction of an equity share to
the extent they entitled to participate in dividends. The weighted
average numbers of equity shares outstanding during the year are
adjusted for events such as bonus issue, bonus element in a right issue
to the existing shareholders, share split and consolidation of shares.
For the purpose of calculating diluted EPS, the net profit or loss
attributable to equity share holders and weighted average number of
equity shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.
15) INTANGIBLE ASSETS
An Intangible Asset is recognized if and only if-
a) It is probable that the future economic benefits that attributable
to the assets will flow to the enterprise.
b) The cost of assets can be measured reliably.
An intangible asset is measured initially at cost.
The amortization method will be used to reflect the pattern in which
asset's economic benefits are consumed by the enterprise. If that
pattern cannot be determined reliably, the straight line method will be
used;
16) IMPAIRMENT OF ASSETS
An asset is treated as impaired, when carrying cost of assets exceeds
its recoverable amount. An impaired loss is charged to Profit & Loss
Account in the year in which an asset is identified as impaired. The
impairment loss recognized in prior accounting periods is reversed if
there has been a change in the estimate of the recoverable amount.
17) 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.
Provisions are determined based on the best estimates required to
fulfill the obligation on the balance sheet date. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
18) INVESTMENTS
I) Investments are classified as Long Term and current investments.
ii) Long Term Investments are carried at cost. Provision for
Diminution, if any in the value of each long term investment is made to
recognize a decline other than of temporary nature.
iii) Current Investments are stated at lower of cost or market value and
resultant decline, if any, is charged to revenue.
19) SEGMENT REPORTING
a) . Segment accounting policies are in line with the
accounting policies of the company. In addition, the following specific
accounting policies have been followed for segment reporting.
(1) . Segment revenue includes sales and other income directly
identifiable with/allocable to the segment including inter segment
sales.
(2) Expenses that are directly identifiable with/allocabie to segment
are considered for determining the segment result. Expenses which relate
to the Company as a whole and not allocable to segment are included
under un-allocable corporate expenditure.
(3) Income which relates to the company as a whole and not allocable to
segments is included in un-allocable corporate income.
(4) Segment assets and liabilities include those directly identifiable
with the respective segments. Un-allocable corporate assets and
liabilities represent the assets and liabilities that relate to company
as a whole and not allocable to any segment. Un-allocable assets mainly
comprise corporate head office assets, investments and tax deposited
with the Income Tax authorities. Un-allocable liabilities include
mainly unsecured loans and tax payable to Income Tax Authorities.
b) Inter Segment transfer pricing
Segment revenue resulting from transactions with other business
segments is accounted on the basis of cost of production.
20) GOVERNMENT GRANTS AND SUBSIDIES
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant/subsidy will be received and all
attaching conditions will be complied with.
When grant or subsidy relates to an expense item, it is recognized as
income over the periods necessary to match them on a systematic basis
the cost, which it is intended to compensate. Where grant/subsidy
relates to an asset, its value is deducted in arriving at the carrying
amount of the related asset against which grant/subsidy has been
received and further where the grant/subsidy is in the nature of
promoters contribution the amount of grant/ subsidy is accounted for as
a capital reserve.
Mar 31, 2014
1. BASIS OF PREPERATION OF FINANCIAL STATEMENNTS
a) The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956, Accounting
policies not specifically referred to are consistent with generally
accepted accounting policies.
b) The company generally follows mercantile system of accounting and
recognizes significant items of Income & Expenditure on accrual basis,
2. FIXED ASSETS
The fixed assets are recorded at the cost which includes freight,
duties, levies and any directly attributable cost of bringing the
assets to their working condition for intended use, Adjustments arising
from exchange rale fluctuations relating to outstanding liabilities
attributable to the fixed assets are capitalized/ adjusted.
3. INVENTORIES
Inventories are valued on FIFO Method Raw Materials- at lower of cost
or net realizable value, Packing materials, consumable stores and
spares at cost.
Stock-in-process- Material cost plus appropriate share of production
overheads.
Finished goods- at lower of cost or net realizable value.
4) CASH AND CASH EQUIVALENTS
Cash and cash equivalent In the balance sheet comprises cash at bank,
cash in hand & short term investments
5) EXPENDITURE ON EXPANSION
Expenditure directly relating to constructions/substanlial expansion
activity is capitalized. Indirect expenditure incurred during
construction period is capitalized as a part of Indirect construction
cost to the extent to which the expenditure is indirectly related to
construction or is incidental thereto. Income earned during
construction period is deducted from the total of indirect expenditure,
As regards indirect expenditure on expansion, only that portion Is
capitalized which represents the marginal Increase in such expenditure
involved as a result of capital expansion Both direct and indirect
expenditure are capitalized only if they increase the value of the
asset beyond its original standard of performance.
6) DEPRECIATION
Depreciation is provided on Straight Line Method on pro-rata basis on
all the fixed assets at the rates prescribed in Schedule XIV of the
Companies Act, 1956
7) RESEARCH AND DEVELOPMENT
Revenue expenditure Incurred on Research & Development is charged to
Profit & Loss Account
8) REVENUE RECOGNITION
Revenue is recognized based on the nature of activity when
consideration can be reasonably measured and there exists reasonable
certainty of its recovery.
(a) Revenue from sale of goods is recognized when the substantial risks
and rewards of ownership are transferred to the buyer under the terms
of the contract.
(b) Other Income is accounted for on accrual basis as and when the
right to receive arises.
9) FOREIGN CURRENCY TRANSACTIONS
Export sales are accounted for at exchange rate prevailing on the date
the documents are negotiated/ realized with/through bank. In case of
direct remittance from buyers the difference between the exchange rates
on the dispatched date and actual exchange rate of foreign currency on
receipt of payment is booked in sales.
The assets and liabilities at the year end are translated at the
closing exchange rate and the difference between the transactions is
taken into profit and loss account.
The foreign currency transactions in respect Of payment towards cost of
fixed assets, spares, traveling, commissions etc. are accounted for at
the exchange rates prevailing on the date of transaction/ remittance.
10) BORROWING COST
Borrowing costs that are attributable to the acquisition on
construction of qualifying assets are capitalized as a part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue,
11) TAXES ON INCOME
Tax expenses comprises of current, deferred income tax and fringe
benefit tax. Provision for current income tax and fringe benefits tax
is made for the amount of tax payable in respect of taxable income for
the year under The Income Tax Act, 1961. Deferred tax is recognized
subject to the consideration of prudence, on timing difference, being
the difference between the book profits and lax profits that originate
in one period and are capable of reversal in one or more subsequent
periods. The deferred tax assets and liabilities are measured using the
tax rates and tax loss that have been enacted or substantively enacted
at the balance sheet dale. Deferred tax assets are recognized only to
the extent that (here is a reasonable certainty that sufficient further
taxable income will be available against which such deferred tax assets
can be realized. If the company has carry forward of unabsorbed
depreciation and tax losses, deferred tax assets are recognized only
where virtual certainty that such deferred tax assets can be realized
against further taxable profits. Unrecognized deferred tax assets of
earlier years are reassessed and recognized to the extent that it has
become reasonably certain that further taxable income will be available
against which such deferred tax assets can be realized.
12) RETIREMENT BENEFITS
The liability on account of Gratuity is covered by the Group Gratuity
Policy taken from Life Insurance Corporation of India. Contribution to
the Gratuity fund is charged to revenue. The liability of Leave
Encashment is provided on actuarial basis. The contribution to the
Provident Fund Is made as per the provisions of The Employees Provident
Fund and Miscellaneous Provisions Act, 1952.
13) USE OF ESTIMATES
The presentation of financial statements require estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the period in which
the results are known/ materialized.
14) EARNING PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividend & taxes) by the weighted average number
of equity shares outstanding during the financial year. Equity shares
that are partly paid up are treated as a fraction of an equity share to
the extent they entitled to participate in dividends. The weighted
average numbers of equity shares outstanding during the year are
adjusted for events such as bonus issue, bonus element in a right issue
to the existing shareholders, share split and consolidation of shares.
For the purpose of calculating diluted EPS, the net profit or loss
attributable to equity share holders and weighted average number of
equity shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.
15) INTANGIBLE ASSETS
An Intangible Asset is recognized if and only If-
a) It is probable that the future economic benefits that attributable
to the assets will flow to the enterprise.
b) The cost of assets can be measured reliably.
An intangible asset is measured initially at cost.
The amortization method will be used to reflect the pattern in which
asset's economic benefits are consumed by the enterprise. If that
pattern cannot be determined reliably, the straight line method will be
used.
16) IMPAIRMENT OF ASSETS
An asset is treated as impaired, when carrying cost of assets exceeds
Its recoverable amount. An impaired loss is charged to Profit 4 Loss
Account in the year in which an asset is identified as impaired. The
impairment loss recognized In prior accounting periods is reversed if
there has been a change in the estimate of the recoverable amount.
17) 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.
Provisions are determined based on the best estimates required to
fulfill the obligation on the balance sheet date, Provisions are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
16) INVESTMENTS
i) Investments are classified as Long Term and current investments.
ii) Long Term Investments are carried at cost. Provision lor Diminution,
If any In the value of each long term Investment Is made to recognize a
decline other than of temporary nature.
iii) Current Investments are stated at lower of cost or market value and
resultant decline, if any, is charged to revenue.
19) SEGMENT REPORTING
a) Segment accounting policies are In line with the
accounting policies of the company. In addition, the following specific
accounting policies have been followed for segment reporting.
(1). Segment revenue includes sales and other Income
directly Identifiable with/allocable to the segment including inter
segment sales.
(2) Expenses that are directly identifiable wtth/atlocable to segment
are considered'for determining the segment result. Expenses which
relate to the Company as a whole and not allocable to segment are
included under un allocable corporate expenditure.
(3) Income which relates to the company as a whole and not allocable to
segments is included in un-allocable corporate Income.
(4) Segment assets and liabilities include those directly identifiable
with the respective segments. Un-allocable corporate assets and
liabilities represent the assets and liabilities that relate to company
as a whole and not allocable to any segment. Un-allocable assets mainly
comprise corporate head office assets, investments and tax deposited
with the Income Tax authorities. Un-allocable liabilities include
mainly unsecured loans and tax payable to Income Tax Authorities.
b) Inter Segment transfer pricing
Segment revenue resulting from transactions with other business
segments is accounted on the basis of cost of production.
20) GOVERNMENT GRANTS AND SUBSIDIES
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant/subsidy will be received and all
attaching conditions will be complied with.
When grant or subsidy relates to an expense item, it is recognized as
income over the periods necessary to match them on a systematic basis
the cost, which It is intended to compensate. Where grant/subsidy
relates to an asset, its value is deducted in arriving at the carrying
amount of the related asset against which grant/subsidy has been
received and further where the grant/subsidy is in the nature of
promoters contribution the amount of grant/subsidy is accounted for as
a capital reserve.
Jun 30, 2012
1. BASIS OF PREPERATION OF FINANCIAL STATEMENTS
a) The financial statements are prepared under the historical '' cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956. Accounting
policies not specifically referred to are consistent with generally
accepted accounting policies.
b) The company generally follows mercantile system of accounting and
recognizes significant item of Income & Expenditure on accrual basis.
2. FIXED ASSETS
The fixed assets are recorded at the cost which includes freight,
duties, levies and any directly attributable cost of bringing the
assets to their working condition for their intended use. Adjustments
arising from exchange rate fluctuations relating to outstanding
liabilities attributable to the fixed assets are capitalized/ adjusted.
3. INVENTORIES
Inventories are valued on FIFO Method
- Raw materials- at lower of cost or net realizable value.
- Packing materials, consumable stores and spares-at cost.
- Stock-in-process- Material cost plus appropriate share of production
overheads. .
- Finished goods; at lower of cost or net realizable value.
4. EXPENDITURE ON EXPANSION
Expenditure directly relating to constructions/substantial , expansion
activity is capitalized. Indirect expenditure incurred during
construction period is capitalized as a part of indirect construction
cost to the extent to which the expenditure is indirectly related to
construction or is incidental thereto. Income earned for during
construction period is deducted from the total of indirect expenditure.
As regards indirect expenditure on expansion, only''that portion is
capitalized which represents the marginal increase in such expenditure
involved as a result of capital expansion.
Both direct and indirect expenditure are capitalized onlyjf they
increase the value of the asset beyond its original standard of
performance.
5. DEPRECIATION
Depreciation is provided on Straight Line Method on pro-rata basis on
all the fixed assets at the rates prescribed in Schedule XIV of the
Companies Act, 1956''.
6. FOREIGN CURRENCY TRANSACTIONS
Export sales are accounted for at exchange rate prevailing on the date
the documents are negotiated/ realized with/ through bank. In case of
direct remittance from buyers the difference between the exchange rates
on the dispatch date and actual exchange rate of foreign currency on
receipt of payment is booked in sates.
The assets and liabilities at the year end are translated at the
closing exchange rate and the difference between the transactions is
taken into profit and loss account.
The foreign currency transactions in respect of payment towards cost of
fixed assets, spares, traveling, commissions etc. are accounted for at
the exchange rates prevailing on the date of transaction/ remittance.
7. BORROWING COST
Borrowing costs that are attributable to the acquisition on
construction of qualifying assets are capitalized as a part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
8. TAXES ON INCOME .
- Tax expenses comprises of current, deferred income tax and fringe
benefit tax. Provision for current income tax and fringe benefits tax
is made for the amount of tax payable in respect of taxable income for
the year under The Income Tax Act, 1961. Deferred tax is recognized
subject to the . consideration of prudence, on timing difference,
being the difference between the book profits and tax profits that
originate in one period and are capable of reversal in one or more
subsequent periods. The deferred tax assets and liabilities are
measured using the tax rates and tax toss that - , have been enacted of
substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is a reasonable certainty
that sufficient further taxable income will be available against which
such deferred tax assets can be realized. If the company has carry
forward of unabsorbed depreciation and tax losses,, deferred tax assets
are recognized only where virtual certainty that such deferred tax
assets can be realized against further taxable profits. Unrecognized
deferred tax assets of earlier years are reassessed and recognized to
the extent that it has become reasonably certain that further taxable
income will be available against which such deferred tax assets can be
realized.
9. RETIREMENT BENEFITS
The liability on account of Gratuity Is covered by the Group Gratuity
Policy taken from Life Insurance Corporation of India. Contribution to
the Gratuity fund is charged to revenue. The liability of Leave
Encashment is provided on actuarial basis.
The contribution to the Provident Fund is made as per the provisions of
The Employees Provident Fund and Miscellaneous Provisions Act, 1952.
10. USE OF ESTIMATES
The presentation of financial statements require estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the period in which
the results are known/ materialized.
11. EARNING PER SHARE
Basic earnings per share are calculated by dividing the net '' profit or
loss for the period attributable to equity shareholders {after
deducting preference dividend & taxes) by the weighted average number
of equity shares outstanding during the financial year. Equity shares
that are partly paid up are treated as a fraction of an equity share to
the extent they entitled to participate in dividends. The weighted
average numbers of equity shares outstanding during the year are
adjusted for events such as bonus issue, bonus eleimnt In a right issue
to the existing shareholders, share split and consolidation of shares.
For the purpose of calculating diluted EPS, the net profit or loss
attributable to equity share holders and weighted average number of
equity shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.
12. INTANGIBLE ASSETS
An Intangible Asset is recognized if and only if
a) It is probable that the future economic benefits that attributable
to the assets will flow to the enterprises
b) The cost of assets can be measured reliably.
An intangible asset is measured initially at cost
The amortization method will be used to reflect the pattern in which
asset''s economic benefits are consumed by the enterprise. If that
pattern cannot be determined reliably, the straight line method will be
used.
13. IMPAIRMENT OF ASSETS
An asset is treated, as impaired, when carrying cost of assets exceeds
its recoverable amount An impaired loss is charged to Profit & Loss
Account in the year in which an asset is identified as impaired. The
impairment loss recognized in prior accounting periods is reversed if
there has been a change In the estimate of the recoverable amount
14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving substantial degree of estimation In measurement
are recognized when there is a preient obligation as a result of past
events and it is probable that there will be outflow of resources.
Provisions are dete rm ined based on the best estimates required to
fulfill the obligation on the balance sheet date. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
15. SEGMENT REPORTING
a). Segment accounting policies are in line with the accounting
policies of the company. In addition, the following specific accounting
policies have been followed for segment reporting.
(1) Segment revenue includes sales and other income directly
identifiable with/allocable to the segment including inter segment
sales.
(2) Expenses that are directly identifiable with/allocable to segment
are considered for determining the segment result. Expenses which
relate to the Company as a whole and not allocable to segment are
included under un-allocable corporate expenditure.
(3) Income which relates to the company as a whale and nol allocable to
segments is Included in un-allocable corporate income.
(4) Segment assets and liabilities include those directly identifiable
with the respective segments. Un-allocable corporate assets and
liabilities represent the assets and liabilities that relate to company
as a whole and not allocable to any segment. Un- allocable assets
mainly comprise corporate head office assets, investments and tax
deposited with the Income Tax authorities. Un-allocable liabilities
include mainly unsecured loans and tax payable to Income Tax
Authorities.
b). Inter Segment transfer pricing
Segment revenue resulting, from transactions with other business
segments is accounted on the basis of cost of production.
16. GOVERNMENT GRANTS AND SUBSIDIES
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant/subsidy will be received and all
attaching conditions will be complied with.
When grant or subsidy relates to an expense item, it is recognized as
income over the periods necessary to match them on a systematic basis
the cost, which it is intended to compensate. Where grant/subsidy
relates to an asset, its value is deducted in arriving at the carrying
amount of the related asset against which grantteubsidy has been
received and further where the grant/subsidy Is in the nature of
promoters contribution the amount of grant/subsidy is accounted for
as a capital reseive.
Mar 31, 2010
1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956. Accounting
policies not specifically referred to are consistent with generally
accepted accounting policies.
b) The company generaly follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
2) FIXED ASSETS
The fixed assets are recorded at the cost which includes freight.
duties. levies and any directly attributable cost of bringing the
assets to their working condition for intended use. Adjustments arising
from exchange rate fluctuations relating to outstanding liabilities
attributable to the fixed assets are capitalised/adjusted.
3) INVENTORIES
Inventories are valued on FIFO method
- Raw materials - at lower of cost or net realisable value.
- Packing materials, consumables and stores & spares - at cost
- Stock-in-process - material cost plus appropriate share of production
overheads.
- Finished goods - at lower of cost or net realisable value.
4) EXPENDITURE ON EXPANSIONS
Expenditure directly relating to construction/substantial expansion
activity is capitalised. Indirect expenditure incurred during
construction period is captalised as part of the indirect construction
cost to the extent to which the expenditure is indirectly related to
construction or is incidental thereto. Income earned during
construction period is deducted from the total of the indirect
expenditure. As regards indirect expenditure on expansion, only that
portion is capitalised which represents the marginal increase in such
expenditure involved as a result of capital expansion. Both direct and
indirect expenditure are capitalised only if they increase the value of
the asset beyond its original standard of performance.
5) DEPRECIATION
Deprecation is provided on Straight Line Method on pro-rata basis on
all the fixed assets at the rates prescribed in Schedule XIV to the
Companies Act, 1956.
6) FOREIGN CURRENCY TRANSACTIONS
Export sates are accounted for at exchange rates prevaiting on the date
the documents are negotiated/realised with/through Bank. In case of
direct remittance from buyers the difference between the exchange rates
on the despatch date and actual exchange rate of foreign currency on
receipt of payrrent is booked in sates.
The assets and liabilities at the year end are translated at the
closing exchange rate and the difference between the transaction is
taken into profit and loss account.
The foreign currency transactions in respect of payments towards cost
of fixed assets, spares, travelling, commission etc. are accounted for
at the exchange rates prevailing on the date of transaction/remittance.
7) BORROWING COST
Borrowing costs that are attributable to he acquisition or construction
of qualifying assets are capitalised as a part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for intended-use. All other borrowing costs
are charged to revenue.
8) TAXES ON INCOME
Tax expenses comprises of current, deferred and fringe benefit tax.
Provision for current income tax and fringe benefit tax is made for the
amount of tax payable in respect of taxable income for the year under
the Income Tax Act, 1961.
Deferred tax is recognised subject to the consderation of prudence, on
timing difference, being the difference between book profit and tax
profit that originate in one period and are capable of reversal in one
or more subsequent periods.
Deferred tax assets and liabilities are measured using the tax rates
and tax toss that have been enacted or substantively enacted at the
balance sheetdate. Deferredtax assets are recoqnized only to the extent
that there is reasonable certainty that sufficient further taxable
income will be available against which such deferred tax assets can be
realized. If the company has carry forward of unabsobed depreciation
and tax losses, deferred tax assets are recognized only if there is
virtual certainty that such deferred tax assets can be realized against
further taxable profits. Unrecognized deferred tax assets of earlier
years are reassessed and recognized to the extent that it has become
reasonably certain that further taxable income will be available
against which such deferred tax assets can be realized.
9) RETIREMENT BENEFITS
The liability on account of Gratuity is covered by the Group Gratuity
Policy taken from Life Insurance Corporation of India. Contribution to
the gratuity fund is charged to revenue. The liability of leave
encashment is provided on actuarial basis. The contribution to
Provident Fund is made as per the provisions of The Employees
Provident Fund and Miscellaneous Provisions Act 1952.
10) USE OF ESTIMATES
The presentation of financial statements require estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. Difference between
the actual results and estimates are recognised in he period in which
the results are known/materialised.
11) EARNING PER SHARE
Basic earnings per share are calculated by dividing the net profit or
toss for he period attributable to equity shareholders after deducting
taxes by the weighted average number of equity shares outstanding
during the year. Equity shares that are party paid up are treated as a
fraction of an equity share to the extent they entitled to participate
in dividends. The weighted average number of equity shares outstandhg
during the year are adjusted for events such as bonus issue, bonus
element in a right issue to the existing shareholders, share split and
consolidation of shares. For the purpose of calculating diluted EPS, he
net profit or toss attributable to equity share holders and weighted
average number of equity shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares
12) INTANGIBLE ASSETS
An intangible asset is recognized if and only if -
a) it is probabte that the future economic benefits that are
attributable to the asset will flow to the enterprise, and
b) the cost of the asset can be measured reliably
An intangible asset is measured initially at cost The amortization
method will be used to reflect the pattern in which the assets economic
benefits are consumed by the enterprise. If that pattern cannot be
determined reliably, the straight line method will be used.
13) IMPAIRMENT OF ASSETS
An asset is treated as impaired, when carrying cost of asset exceeds
its recoverable amount An impaired toss is charged to Profit& Loss
Account in the year in which an asset is identified as impaired. The
impairment toss recognised in prioraccounting periods is reversed if
there has been a change in the estimate of the recoverable amount
14) PROVISIONS, CONTINGENT LIABILITIES AMD CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Provisions are determined based on the best estimates required to
falfill the obligation on the balance sheet date. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates. Contingent liabilities are not recognised but are
disclosed In the notes. Contingent Assets are neither recognised nor
disclosed in the financial statements.
Mar 31, 2009
1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956. Accounting
policies not specifically referred to are consistent with generally
accepted accounting policies.
b) The company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
2) FIXED ASSETS
The fixed assets are recorded at thecostwhich includes freight, duties,
levies and any directly attributable cost of bringing the assets to
their working condition for intended use. Adjustments arising from
exchange rate fluctuations relating to outstanding liabilities
attributable to the fixed assets are capitalised/adjusted.
3) INVENTORIES
Inventories are valued on FIFO method
- Raw materials - at lower of cost or net releasable value.
- Packing materials, consumable and stores & spares - at cost
- Stock-in-process - material cost plus appropriate share of production
overheads.
- Finished goods - at lower of cost or net releasible value.
4) EXPENDITURE ON EXPANSIONS
Expenditure directly relating to construction/substantial expansion
activity is capitalised. Indirect expenditure incurred during
construction period is capitalised as part of the indirect construction
cost to the extent to which the expenditure is indirectly related to
construction or is incidental thereto. Income earned during
construction period is deducted from the total of the indirect
expenditure.
As regards indirect expenditure on expansion, only that portion is
capitalised which represents the marginal increase in such expenditure
involved as a result of capital expansion. Both direct and indirect
expenditure are capitalised only if they increase the value of the
asset beyond its original standard of performance.
5) DEPRECIATION
Depreciation is provided on Straight Line Method on pro-rata basis on
all the fixed assets at the rates prescribed in Schedule XIV to the
Companies Act, 1956.
6) FOREIGN CURRENCY TRANSACTIONS
Export sales are accounted for at exchange rates prevailing on the dale
the documents are negotiated/realised with/through Bank. In case of
direct remittance from buyers the difference between the exchange rates
on the despatch date and actual exchange rate of foreign currency on
receipt of payment is booked h sales.
The assets and liabilities at the year end are translated at the
closing exchange rate and the difference between the transaction is
taken into profit and loss account.
The foreign currency transactions in respect of payments towards cost
of fixed assets, spares, travelling, commission, etc. are accounted for
at the exchange rates prevailing on the date of transaction/remittance.
7) BORROWING COST
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised asapart of thecost
ofsuch assets.Aqualifying asset is one that necessarily takes
substantial period of time to get ready for intended-use. AH other
borrowing costs are charged to revenue.
8) TAXES ON INCOME
Tax expenses comprises of current, deferred and fringe benefit tax.
Provision for current income tax and fringe benefit tax is made for the
amount of tax payable in respect of taxable income for the year under
the Income Tax Act, 1961.
Deferred tax is recognised subject to the consideration of prudence, on
timing difference, being the difference between book profit and tax
profit that originate in one period and are capable of reversal in one
or more subsequent periods.
Deferred tax assets and liabilities are measured using the tax rates
and tax loss that have been enacted or substantively enacted at the
balance sheetdate. Deferred is reasonable certainty that sufficient
further taxable income will be available against which such deferred
tax assets can be realized. If the company has carry forward of
unabsorbed depreciation and tax losses, deferred tax assets are
recognized only if there is virtual certainty that such deferred tax
assets can be realized against further taxable profits. Unrecognized
deferred tax assets of earlier years are reassessed and recognized to
the extent that it has become reasonably certain that further taxable
income will be available against which such deferred tax assets can be
realized.
9) RETIREMENT BENEFITS
The liability on account of Gratuity is covered by the Group Gratuity
Policy taken from Life Insurance Corporation of India. Contribution to
the gratuity fund is charged to revenue. The liability of leave
encashment is provided on actuarial basis. The contribution to
Provident Fund is made as per the provisions of The Employees
Provident Fund, and Miscellaneous Provisions Act,. 1952.
10) USE OF ESTIMATES
The presentation of financial statements require estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/materialised.
11) EARNING PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders after deducting
taxes by the weighted average number of equity shares outstanding
during the year. Equity shares that are partly paid up are treated as a
fraction of an equity share to the extent they entitled to participate
in dividends. The weighted average number of equity shares outstanding
during the year are adjusted for events such as bonus issue, bonus
element in a right issue to the existing shareholders, share split and
consolidation of shares. For the purpose of calculating diluted EPS,
the net profit or loss attributable to equity share holders and
weighted average number of equity shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.
12) INTANGIBLE ASSETS
An intangible asset is recognized if and only if -
a) it is probable that the future economic benefits that are
attributable to the asset will flow to the enterprise, and
b) the cost of the asset can be measured reliably
An intangible asset is measured initially at cost. The amortization
method will be used to reflect the pattern in which the assets economic
benefits are consumed by the enterprise. If that pattern cannot be
determined reliably, the straight line method will be used.
13) IMPAIRMENT OF ASSETS
An asset is treated as impaired, when carrying cost of asset exceeds
its recoverable amount. An impaired loss is charged to Profit & Loss
Account in the year in which an asset is identified as impaired. The
impairment loss recognised in prior accounting periods is reversed if
there has been a change in the estimate of the recoverable amount.
14) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Provisions are determined based on the best estimates required to
fulfill the obligation on the balance sheet date. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates. Contingent liabilities are not recognised but are
disclosed in the notes. Contingent Assets are neither recognised nor
disclosed in the financial statements.