Mar 31, 2015
1.1 Basis of Preparation of Financial Statement
These financial statements have been prepared to comply in all material
aspects with applicable accounting principles in India, the applicable
Accounting Standards prescribed under Section 133 of the Companies Act,
2013 ('Act'), the provisions of the Act & Rules (to the extent
notified) and other accounting principles generally accepted in India,
to the extent applicable.
All assets and liabilities 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, based
on the nature of products and the time between acquisition of assets
for processing and their realisation in cash and cash equivalents. The
figures are presented rounded off nearest to a rupee.
1.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires judgements, estimates and assumptions to be made that affect
the reported amount of assets and liabilities, disclosure of contingent
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results areknown/materialised.
1.3 Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are
recognized on accrual basis when the substantial risks and reward of
ownership in the goods are transferred to the buyer upon supply of the
goods except disputed claims, demands, discounts, rebates etc, which
are accounted for on cash basis as per consistent practice. Revenues
from Renewal Energy Certificate (REC) are accounted for as and when the
same is sold in exchange.
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities except disputed claims & demands and
discounts, rebates etc., which are accounted for on cash basis as per
consistent practice.
1.4 Tangible Assets
Fixed assets are stated at their cost of acquisition including all
direct cost attributable to the installation less accumulated
depreciation comprising of its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working
condition for its intended use. Subsequent expenditures related to an
item of tangible asset are added to its book value only if they
increase the future benefits from the existing asset beyond its
previously assessed standard of performance. Whereas Expenditure and
outlays of money on uncompleted plant & machinery, building etc., which
are of a capital nature, are shown as capital work-in-progress until
such time these projects are completed and are put to use.
1.4 Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion and impairment loss, if
any.
1.5 Depreciation
Depreciation is provided on a pro-rata basis on the straight line
method at the rates prescribed under Schedule II to the Companies Act,
2013. Useful life of the assets has been taken as provided in the said
Schedule II to the Companies Act, 2013.
1.6 Impairment
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Statement in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount. No
such reversal of impairment loss was done during the year in respect of
impairment of building done in the preceding years amounting to
Rs.178.77 lacs as charged to depreciation. There is no impairment loss
charged during the year.
1.7 Inventories
Inventories consisting of raw salt and packing materials are valued on
the weighted-average basis and taken at the lower of the cost or net
realizable value. Unserviceable raw material, if any, is valued at net
realizable value. The cost of manufactured finished goods and
work-in-progress includes material cost determined on weighted-average
basis including an appropriate portion of allocable overheads. However,
it does not include interest and administrative overheads which are
indirect in nature. In absence of any other reliable estimate, taking a
prudential approach inventory of Renewable energy certificate (REC)
have been valued at net realizable value which is the minimum price of
such certificate at which the same are sold in exchange.
1.8 Provisions and Contingent Liabilities
Provision is recognised in the accounts when there is a present
obligation as a result of past event(s) and it is probable that an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discounted to their
present value and 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. Contingent liabilities are disclosed unless the
possibility of outflow of resources is remote. Contingent assets are
neither recognised nor disclosed in the financial statements
1.9 Employee Benefits
1.9.1 Short Term Employee Benefits
The amount of employee benefits expected to be paid in exchange for the
services rendered by employees are recognised as an expense during the
period when the employees render the services. These benefits include
performance incentive and compensated absences.
1.9.2 Post-Employment Benefits
The Company makes specified monthly contributions towards Provident
Fund, Superannuation Fund and Pension Scheme. The Company's
contribution is recognised as an expense in the Profit and Loss
Statement during the period in which the employee renders the related
service. The liability in respect of defined benefit plans and other
post-employment benefits is calculated on estimated basis and charged
to the profit and loss account.
1.9.3 Employee Separation Costs  Non Compliance of Mandatory AS-15
The company does not provide for leave encashment, medical etc. and the
same is accounted for on cash basis as and when actual payment is made.
The mandatory accounting standard AS-15 requires that an actuarial
valuation of the retirement benefits be made. Though, provision is made
as per company's own method , however, no such actuarial valuation
report has been taken nor any other prescribed method is followed to
provide for the pre or post-retirement benefits for the employees. As
such AS-15 not stood complied with however, impact on profit is not
ascertainable. The impact not expected to be substantial no
qualification of the audit report is made.
1.10 Investments
Investments are classified into current and long term investments.
Current investments are stated at lower of cost or fair value.
Non-current investments are stated at cost. Provision for diminution in
the value of Non Current investments is made only if such a decline is
other than temporary
1.11 Current & Deferred Tax
Current tax is the provision made for income tax liability, if any, on
the profits of the current year calculated in accordance with the
provisions of the Income Tax Act 1961.
Deferred tax is recognized subject to the consideration of prudence on
timing difference; being the difference between the taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and brought forward losses unless
there is virtual certainty that sufficient future income shall be
available against which the deferred tax assets c-an be realized.
Deferred tax assets and liabilities are measured using the tax rate and
the Tax Law as applicable on the Balance Sheet date.
1.12 Foreign Currency Transactions
Foreign currency transactions are accounted for at the exchange rate
prevailing at the date of the transaction. Gains and losses resulting
from the settlement of such transactions and translation of monetary
assets and liabilities in foreign currencies are recognized in the
profit and loss account.
1.13 Segment Reporting
There is only one visible segment of the company i.e. manufacturing &
sale of salt and as such no separate reporting is needed on segment
basis. The company also derives revenue from power generation
activities and the total income from such activities during the year
stood at Rs. 123.37 lacs. The revenue not being substantial as compared
to total revenue (as per definition provided in the relevant AS), the
same is not reported as a separate segment.
1.14 Earnings per Share
Basic earnings per share are calculated by dividing the net profit for
the period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
Mar 31, 2014
1.1) Basis of Preparation of Financial Statement
These financial statements are prepared in accordance with Indian
General Accepted Accounting Principles (GAAP) under historical cost
convention on the accrual basis. The Indian GAAP comprises mandatory
Accounting Standards as prescribed under the Com panies (Accounting
Standards) Rules, 2006 and the provision of the Companies Act, 1956.
The accounting policies not specifically referred to otherwise, are
consistent and in consonance with Indian GAAP issued by the Institute
of Chartered Accountants of India, provisions of the Companies Act,
1956 & Securities and Exchange Board of India.
1.2) Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are
recognized on accrual basis when the substantial risks and reward of
ownership in the goods are transferred to the buyer upon supply of the
goods except disputed claims & demands and discounts, rebates
etc.,which are accounted for on cash basis as per consistent practice.
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities except disputed claims & demands and
discounts, rebates etc., which are accounted for on cash basis as per
consistent practice. Renewal Energy Certificates (RECs) are accounted
for as and when sold
1.3) Fixed Assets
Fixed assets are stated at their cost of acquisition includi ng all
direct cost attributable to the installation less accumulated
depreciation. Impairment loss, if any, is provided wherever the
carrying value of the assets exceeds the recoverable amount. Assessment
is done by the management at the each balance sheet date to ascertain
if there is any indication of impairment loss in any carrying value of
fixed assets, Whereas Expenditure and outlays of money on uncompleted
plant & machinery, building etc., which are of a capital nature, are
shown as capital work-in-progress until such time these projects are co
mpleted and are put to use. Intangible assets like trademark are shown
at cost which are directly incurred to acquire and continue the same.
1.4) Depreciation
he rates provided in Schedule XIV of the Companies Act, 1956, on
pro-rata basis commencing from the date when the assets are
commissioned. However, on the assets costing up to Rs.5000/-,
depreciation has not been provided at the rate of one hundred percent.
In case of plant & machinery, written down value method and in case of
other assets straight-line method has been followed as per last year
practice. Accordingly, building, furniture & fixtures, office
equipment, computer & vehicles are being depreciated as per the
straight line method rate of depreciation. Raw salt kyar is written off
at the rate of hundred percent & no depreciation is charged on
trademark.
1.5) Inventories
Inventories are valued on the weighted-average basis and taken at the
lower of the cost or net realizable value. Unserviceable raw material,
if any, is valued at net realizable value. The cost of manufactured
finished goods and work-in-progress includes material cost determined
on weighted-average basis and also includes an appropriate portion of
allocable overheads. However, it does not include interest and
administrative overheads which are indirect in nature. There is no
change in the valuation method followed by the Company.
1.6) Provisions and Contingent Liabilities
Provisions and contingent liabilities as defined under the relevant
accounting standard are provided on the basis of information made
available from the management. These are reviewed each year end date
and adjusted to reflect the best current estimate.
1.7) Retirement Benefits
Contributions to the employeeÂs scheme like provident fund are
charged to the profit and loss account as and when incurred. The
company does not provide for leave encashment, medical etc. and the
same is accounted for on cash basis as and when actual payment is made.
The mandatory accounting standard AS-15 requires that an actuarial
valuation of the retirement benefits be made. Though, provision is made
as per companyÂs own method , however, no such actuarial valuation
report has been taken nor any other prescribed method is followed to
provide for the pre or post-retirement benefits for the employees.. To
this extent AS-15 not stood complied with, however, impact on profit is
not ascertainable. The impact not expected to be substantial no
qualification of the audit report is made.
1.8) lnvestments
Investments are classified into current and long term investments.
Current investments are stated at lower of cost or fair value. Long
term investments are stated at cost. Investments which are readily
realizable and are intended to be held for not more than one year as on
the date of the balance sheet are classified as current investment.
1.9) Current & Deferred Tax
a. Current tax is the provision made for income tax liability, if any,
on the profits of the current year calculated in accordance with the
provisions of the Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing difference; being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and brought forward losses unless
there is virtual certainty that sufficient future income shall be
available against which the deferred tax assets can be realized.
Deferred tax assets and liabilities are measured using the tax rate and
the Tax Law as applicable on the Balance Sheet date.
1.10) Foreiqn Currency Transactions
Foreign currency transactions are accounted for at the exchange rate
prevailing at the date of the transaction. Gains and losses resulting
from the settlement of such transactions and translation of monetary
assets and liabilities in foreign currencies are recognized in the
profit and loss account.
1.11) Seqment Reporting
There is only one visible segment of the company i.e. manufacturing &
sale of salt and as such no separate reporting is needed on segment
basis. Further during the year under consideration the company has
installed solar power plants for domestic as well as commercial use.
The revenue from such power plants stood at Rs. 112.58 Lacs. The
revenue not being substantial as compared to total revenue (as per
definition provided in the relevant AS), the same is not reported as a
separate segment.
1.12) Earninas Per Share
Basic earnings per share is calculate by dividing the net profit for
the period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
1.13) Preliminary Expenses
The company has set up a new plant for manufacturing of guar gum at
Nawa in Rajasthan, besides investment in Solar power plants at
different locations. Both being totally separate projects other than
the existing manufacturing facility of the company, the revenue
expenses on the same have been transferred in the preliminary expenses
account till the start of the commercial production. The same are being
written off at the rate of 1/5th each year.
Mar 31, 2013
1.1)Basis of Preparation of Financial Statement
These financial statements are prepared in accordance with Indian
General Accepted Accounting Principles (GAAP) under historical cost
convention on the accrual basis. The Indian GAAP comprises mandatory
Accounting Standards as prescribed under the Companies (Accounting
Standards) Rules, 2006 and the provision of the Companies Act, 1956.
The accounting policies not specifically referred to otherwise, are
consistent and in consonance with Indian GAAP issued by the Institute
of Chartered Accountants of India, provisions of the Companies Act,
1956 & Securities and Exchange Board of India.
1.2) Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are
recognized on accrual basis when the substantial risks and reward of
ownership in the goods are transferred to the buyer upon supply of the
goods except disputed claims & demands and discounts, rebates etc.,
which are accounted for on cash basis as per consistent practice.
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities except disputed claims & demands and
discounts, rebates etc., which are accounted for on cash basis as per
consistent practice.
1.31 Fixed Assets
Fixed assets are stated at their cost of acquisition including all
direct cost attributable to the installation less accumulated
depreciation. Impairment loss, if any, is provided wherever the
carrying value of the assets exceeds the recoverable amount. Assessment
is done by the management at the each balance sheet date to ascertain
if there is any indication of impairment loss in any carrying value of
fixed assets, Whereas Expenditure and outlays of money on uncompleted
plant & machinery, building etc., which are of a capital nature, are
shown as capital work-in-progress until such time these projects are
completed and are put to use. Intangible assets like trademark are
shown at cost which are directly incurred to acquire and continue the
same.
1.4) Depreciation
Depreciation on fixed assets has been provided as per the rates
provided in Schedule XIV of the Companies Act, 1956, on pro-rata basis
commencing from the date when the assets are commissioned. However, on
the assets costing up to Rs.5000/-, depreciation has not been provided
at the rate of one hundred percent. In case of plant & machinery,
written down value method and in case of other assets straight-line
method has been followed as per last year practice. Accordingly,
building, furniture & fixtures, office equipment, computer & vehicles
are being depreciated as per the straight line method rate of
depreciation. Raw salt kyar is written off at the rate of hundred
percent & no depreciation is charged on trademark.
I.SHnventorles
Inventories are valued on the weighted-average basis and taken at the
lower of the cost or net realizable value. Unserviceable raw material,
if any, is valued at net realizable value. The cost of manufactured
finished goods and work-in-progress includes material cost determined
on weighted-average basis and also includes an appropriate portion of
allocable overheads. However, it does not include interest and
administrative overheads which are indirect in nature. There is no
change in the valuation method followed by the Company.
1.6 Provisions and Contingent Liabilities
Provisions and contingent liabilities as defined under the relevant
accounting standard are provided on the basis of information made
available from the management. These are reviewed each year end date
and adjusted to reflect the best current estimate.
1.7)Retirement Benefits
Contributions to the employee''s scheme like provident fund are
charged to the profit and loss account as hand . when incurred. The
company does not provide for leave encashment, medical etc. and the
same is accounted for on cash basis as and when actual payment is made.
The mandatory accounting standard AS-15 requires that an actuarial
valuation of the retirement benefits be made. Though, provision is made
as per company''s own method , however, no such actuarial valuation
report has been taken nor any other prescribed method is followed to
provide for the pre or post-retirement benefits for the employees.. To
this extent AS-15 not stood complied with, however, impact on profit is
not ascertainable. The impact not expected to be substantial no
qualification of the audit report is made.
1.8)in vestments
Investments are classified into current and long term investments.
Current investments are stated at lower of cost or fair value. Long
term investments are stated at cost. Investments which are readily
realizable and are intended to be held for not more than one year as on
the date of the balance sheet are classified as current investment.
1.9)Current & Deferred Tax
a. Current tax is the provision made for income tax liability, if any,
on the profits of the current year calculated in accordance with the
provisions of the Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing difference; being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and brought forward losses unless
there is virtual certainty that sufficient future income shall be
available against which the deferred tax assets can be realized.
Deferred tax assets and liabilities are measured using the tax rate and
the Tax Law as applicable on the Balance Sheet date.
1.1HSeament Reporting
There is only one visible segment of the company i.e. manufacturing &
sale of salt and as such no separate reporting is needed on segment
basis. Further during the year under consideration the company has
installed solar power plants for domestic as well as commercial use.
The revenue from such power plants stood at Rs.
16.38 Lacs. The revenue not being substantial as compared to total
revenue, the same is not reported as a separate segment.
1.12)Earnings Per Share
Basic earnings per share is calculate by dividing the net profit for
the period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
1.13) Preliminary Expenses
The company is in process of setting up a new plant for manufacturing
of guar gum at Nawa in Rajasthan, besides investment in Solar power
plants at different locations. Both being totally separate projects
other than the -
existing manufacturing facility of the company, the revenue expenses on
the same have been transferred in the preliminary expenses account till
the start of the commercial production. The same are being written off
at the rate of 1/5th each year
Mar 31, 2012
1.1) Basis of Preparation of Financial Statement
These financial statements are prepared in accordance with Indian
General Accepted Accounting Principles (GAAP) under historical cost
convention on the accrual basis. The Indian GAAP comprises mandatory
Accounting Standards as prescribed under the Companies (Accounting
Standards) Rules, 2006 and the provision of the Companies Act, 1956.
The accounting policies not specifically referred to otherwise, are
consistent and in consonance with Indian GAAP issued by the Institute
of Chartered Accountants of India, provisions of the Companies Act,
1956 & Securities and Exchange Board of India.
1.2) Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are
recognized on accrual basis when the substantial risks and reward of
ownership in the goods are transferred to the buyer upon supply of the
goods except disputed claims & demands and discounts, rebates etc.,
which are accounted for on cash basis as per consistent practice.
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities except disputed claims & demands and
discounts, rebates etc., which are accounted for on cash basis as per
consistent practice.
1.3) Fixed Assets
Fixed assets are stated at their cost of acquisition including all
direct cost attributable to the installation less accumulated
depreciation. Impairment loss, if any, is provided wherever the
carrying value of the assets exceeds the recoverable amount. Assessment
is done by the management at the each balance sheet date to ascertain
if there is any indication of impairment loss in any carrying value of
fixed assets, Whereas Expenditure and outlays of money on uncompleted
plant & machinery, building etc., which are of a capital nature, are
shown as capital work-in-progress until such time these projects are
completed and are put in use. Intangible assets like trademark are
shown at cost which are directly incurred to acquire and continue the
same.
1.4) Depreciation
Depreciation on fixed assets has been provided as per the rates
provided in Schedule XIV of the Companies Act, 1956, on pro-rata basis
commencing from the date when the assets are commissioned. However, on
the assets costing up to Rs.5000/-, depreciation has not been provided
at the rate of one hundred percent. In case of plant & machinery,
written down value method and in case of other assets straight-line
method has been followed as per last year practice. Accordingly,
building, furniture & fixtures, office equipment, computer & vehicles
are being depreciated as per the straight line method rate of
depreciation. Raw salt kyar is written off at the rate of hundred
percent & no depreciation is charged on trademark.
1.5) Inventories
Inventories are valued on the weighted-average basis and taken at the
lower of the cost or net realizable value. Unserviceable raw material,
if any, is valued at net realizable value. The cost of manufactured
finished goods and work-in-progress includes material cost determined
on weighted- average basis and also includes an appropriate portion of
allocable overheads. However, it does not include interest and
administrative overheads which are indirect in nature. There is no
change in the valuation method followed by the Company.
1.6)Provisions and Contingent Liabilities
Provisions and contingent liabilities as defined under the relevant
accounting standard are provided on the basis of information made
available from the management. These are reviewed each year end date
and adjusted to reflect the best current estimate.
1.7)Retirement Benefits
Contributions to the employee's scheme like provident fund are charged
to the profit and loss account as and when incurred. The company does
not provide for leave encashment, medical etc. and the same is
accounted for on cash basis as and when actual payment is made. The
mandatory accounting standard AS-15 requires that an actuarial
valuation of the retirement benefits be made. Though, provision is made
as per company's own method , however, no such actuarial valuation
report has been taken nor any other prescribed method is followed to
provide for the pre or post-retirement benefits for the employees.. To
this extent AS-15 not stood complied with, however, impact on profit is
not ascertainable. The impact not expected to be substantial no
qualification of the audit report is made.
1.8)Investments
Investments are classified into current and long term investments.
Current investments are stated at lower of cost or fair value. Long
term investments are stated at cost. Investments which are readily
realizable and are intended to be held for not more than one year as on
the date of the balance sheet are classified as current investment.
1.9)Current & Deferred Tax
a. Current tax is the provision made for income tax liability, if any,
on the profits of the current year calculated in accordance with the
provisions of the Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing difference; being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and brought forward losses unless
there is virtual certainty that sufficient future income shall be
available against which the deferred tax assets can be realized.
Deferred tax assets and liabilities are measured using the tax rate and
the Tax Law as applicable on the Balance Sheet date.
1.10)Foreign Currency Transactions
Foreign currency transactions are accounted for at the exchange rate
prevailing at the date of the transaction. Gains and losses resulting
from the settlement of such transactions and translation of monetary
assets and liabilities in foreign currencies are recognized in the
profit and loss account.
1.11)Segment Reporting
There is only one visible segment of the company i.e. manufacturing &
sale of salt and as such no separate reporting is needed on segment
basis.
1.12)Earnings Per Share
Basic earnings per share is calculate by dividing the net profit for
the period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
1.13) Preliminary Expenses
The company has invested in a new plant at Gandhidham, Gujarat in the
preceding year and further, it is also in process of setting up a new
plant for manufacturing of guar gum at Nawa in Rajasthan. Both being
totally separate projects other than the existing manufacturing
facility of the company, the expenses on the same have been transferred
in the preliminary expenses account till the start of the commercial
production. The same are being written off at the rate of 1/5th each
year
Mar 31, 2010
1. General
The accounts are prepared on the historical cost convention and in
accordance with the Companies Act, 1956. The accounting policies not
specifically referred to otherwise, are consistent and in consonance
with Generally Accepted Accounting Principles accepted in India. These
comprises, mandatory Accounting Standards & Guidelines issued by the
Institute of Chartered Accountants of India, provisions of the
Companies Act, 1956 and Securities and Exchange Board of India.
2. Revenue Recognition
Expenses and income, considered payable and receivable respectively,
are generally accounted for on accrual basis except disputed claims &
demands and discounts, rebates etc., which are accounted for on cash
basis as per consistent practice.
3. Fixed Assets
(i) Fixed assets and capital work in progress are stated at their
original cost of acquisition including taxes, freight and other
incidental expenses related to acquisition and installation of the
concerned assets.
(ii) Expenditure and outlays of money on uncompleted plant & machinery,
building etc., which are of a capital nature, are shown as capital
work-in-progress until such time these projects are completed and are
put in use.
4. Depreciation
Depreciation on fixed assets has been provided as per the rates
provided in Schedule XIV of the Companies Act, 1956, on pro-rata basis
commencing from the date when the assets are commissioned. However, on
the assets costing up to Rs.5000/-, depreciation has not been provided
at the rate of one hundred percent. In case of plant & machinery,
written down value method and in case of other assets straight-line
method has been followed as per last year practice. No depreciation is
claimed on trademark.
5. Inventories
Inventories are valued on the weighted-average basis and taken at the
lower of the cost or net realizable value. Unserviceable raw material,
if any, is valued at net realizable value. The cost of manufactured
finished goods and work-in-progress includes material cost determined
on weighted-average basis and also includes an appropriate portion of
allocable overheads. However, it does not include interest and
administrative overheads which are indirect in nature. There is no
change in the valuation method followed by the Company.
6. Investments
Investments are valued at cost.
7. Contingent Liabilities
Contingent liabilities have been taken on the basis of information and
explanation provided by the management of the company. Wherever
applicable, the same is provided for as per the principles laid down in
the relevant AS issued by the ICAI.
8. Retirement Benefits
Leave encashment etc is accounted for on cash basis. Post retirement
benefits have not been provided for as per actuarial valuation or other
prescribed method. To this extent AS-15 not stood complied with,
however, impact on profit is not ascertainable.
9. Taxation
a. Current tax is the provision made for income tax liability, if any,
on the profits calculated in accordance with the provisions of the
Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing difference; being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. In any case, deferred tax
assets and liabilities are measured using the tax rate and the Tax Law
as applicable on the Balance Sheet date.
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