Mar 31, 2018
1. SIGNIFICANT ACCOUNTING POLICIES
i. Property Plant and Equipment
a) Property Plant and Equipment are measured at cost less accumulated depreciation and impairment losses.
b) The cost of property, plant and equipment includes those incurred directly for the construction or acquisition of the asset and directly attributable to bringing it to the location and condition necessary for it to be capable of operating in the manner intended by the management and includes the present value of expected cost for dismantling/ restoration wherever applicable.
c) The cost of major spares is recognised in the carrying amount of the item of property, plant and equipment in accordance with the recognition criteria set out in the standard. The carrying amount of the replaced part is derecognised at the time of actual replacement. The cost of the day-to-day servicing of the item are recognised in statement of profit and loss account.
d) Depreciation on all fixed assets is provided under written down value method over the useful life of assets specified in Part C of Schedule II to the Companies Act, 2013 and manner specified therein. Assets costing less than INR 5,000/- are fully depreciated in the year of purchase.
ii. Intangible Assets
a) Intangible asset is recognised when it is probable that future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Expenditure incurred for creating infrastructure facilities where the ownership does not rest with the Company and where the benefits from it accrue to the Company over a future period is also considered as intangible asset.
b) New product development expenditure, software licences, technical know-how fee, infrastructure and logistic facilities etc., are recognised as intangible asset upon completion of development and commencement of commercial production
c) Intangible assets are amortised on straight line method over their technically estimated useful life.
d) Residual values and useful lives for all intangible assets are reviewed at each reporting date. Changes if any are accounted for as changes in accounting estimates.
iii. Impairment of Asset
a) Financial Assets
Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
1. Financial assets that are debt instruments and are measured at amortized cost whether applicable for e.g. loans debt securities, deposits, and bank balances.
2. Trade Receivables
Company follows âsimplified approachâ for recognition of impairment loss allowance on trade receivables which do not contain a significant financing component. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
b) Non - financial assets
Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss.
iv. Inventories
Items of inventories are valued at lower of cost or net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost of raw material is determined on FIFO method. Appropriate provisions will be made for non-moving / slow-moving items.
v. Foreign Currency Transactions
a) Transactions relating to non-monetary items and purchase and sale of goods / services denominated in foreign currency are recorded at the exchange rate prevailing or a rate that approximates the actual rate on the date of transaction.
b) Assets and liabilities in the nature of monetary items denominated in foreign currencies are translated and restated at prevailing exchange rates as at the end of the reporting period.
c) Exchange differences arising on account of settlement / conversion of foreign currency monetary items are recognised as expense or income in the period in which they arise.
d) Foreign currency gains and losses are reported on a net basis.
vi. Revenue Recognitions
Sales are recognised on dispatch of goods from the factory. In respect of export sales, the revenue is recognised on the basis of bill of lading. Miscellaneous sales are recognised on the basis of dispatch of goods. Other income such as interest etc., are recognised on accrual basis. Sales revenue is measured at fair value net of returns, trade discounts and volume rebates.
vii. Employee Benefits
a) Short term Benefits
All employee benefits falling due wholly within twelve months of rendering the service are classified as short-term employee benefits. The cost of the benefits like salaries, wages, medical, short term compensated absences, bonus, exgratia etc., are recognised as an expense in the period in which the employee renders the related service.
b) Post-employment benefits
1. Defined Contribution Plans
The contribution paid / payable under provident fund scheme, ESI scheme, and employee pension scheme is recognised as expenditure in the period in which the employee renders the related service.
2. Defined Benefit Plans
The Companyâs obligation towards gratuity is a defined benefit plan. As there are frequent changes in workers/employees, the company record retirement benefits on cash basis.
viii. Borrowing Cost
a) Borrowing costs incurred for obtaining assets which take substantial period to get ready for their intended use are capitalised to the respective assets wherever the costs are directly attributable to such assets and in other cases by applying weighted average cost of borrowings to the expenditure on such assets.
b) Other borrowing costs are treated as expense for the year.
c) Significant transaction costs in respect of long-term borrowings are amortised over the tenor of respective loans using effective interest method.
ix. Provision for Current and Deferred Tax
a) Current Tax
The tax currently payable is based on taxable profit for the year. Taxable profits differ from the profit as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that have been enacted or substantially enacted by the end of the reporting period. In the event of tax computed as stated is less than the tax computed under section 115JB of the Income tax Act., 1961, provision for current tax will be made in accordance with such provisions.
b) Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities.
c) Current and deferred Tax for the year
Current and deferred tax are recognised in profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
Deferred tax resulting from âtiming differenceâ between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent there is reasonably certain that there will be sufficient future income to recover such Deferred Tax Asset.
x. Minimum Alternate Tax Credit
Minimum Alternate Tax Credit Entitlement is recognized in the books of account when there is convincing evidence that the Company will pay normal income tax during the specified period. The entitlement is reviewed at each balance sheet date with regard to the correctness of the carrying amount
xi. Research and Development
Research and Development Costs that are in the nature of tangible assets and are expected to generate probable future economic benefits are capitalised as tangible assets. Revenue expenditure on research and development is charged to the Statement of Profit and Loss in the year in which it is incurred.
xii. Claims
Claims by and against the Company, including liquidated damages, are recognised on acceptance basis.
Mar 31, 2016
(1) Basis of Preparation of Financial Statements. :
(a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Section 129 & 133 of the companies Act, 2013.
(b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.
(2) Fixed Assets :
(a) All the fixed assets of the Company as on16th April, 1994 had been revalued. The original cost of these assets is replaced by revalued amount.
(b) Other fixed assets , acquired after 16-04-94 are stated at their original cost.
(3) Depreciation :
Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.
(4) Investments :
Investments are stated in the books at cost.
(5) Inventories :
Inventories are valued at cost or market price whichever is lower.
(6) Treatment of retirement benefits :
Retirement benefits are recorded on cash basis.
(7) Revenue Recognition :
Revenue Income is accounted on accrual basis.
There was no impairment loss on fixed assets on the basis of review carried out by the (9) Management in accordance with AS -28 issued by the Institute of Chartered Accountants of India.
Mar 31, 2015
(1) Basis of Preparation of Financial Statements :
(a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and comply with the Accounting Standards issued by the
Institute of Chartered Accountants of India and referred to Section 129
& 133 of the companies Act, 2013.
(b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
(2) Fixed Assets :
(a) All the fixed assets of the Company as on16th April, 1994 had been
revalued. The original cost of these assets is replaced by revalued
amount.
(b) Other fixed assets , acquired after 16-04-94 are stated at their
original cost.
(3) Depreciation :
Depreciation has been provided based on life assigned to each asset in
accordance with Schedule II of the Companies Act, 2013.
(4) Investments :
Investments are stated in the books at cost.
(5) Inventories :
Inventories are valued at cost or market price whichever is lower.
(6) Treatment of retirement benefits :
Retirement benefits are recorded on cash basis.
(7) Revenue Recognition :
Revenue Income is recognized on accrual basis.
Mar 31, 2014
(1) Basis of Preparation of Financial Statements :
(a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the companies Act, 1956 as adopted
consistently by the Company except for certain fixed assets which are
revalued.
(b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
(2) Fixed Assets :
(a) All the fixed assets of the Company as on16th April, 1994 had been
revalued. The original cost of these assets is replaced by revalued
amount.
(b) Other fixed assets , acquired after 16-04-94 are stated at their
original cost.
(3) Depreciation :
1) The Company provides depreciation on all the fixed Assets acquired
before 01-04-96 including revalued assets on straight line Method at
the rates specified in the schedule XIV of the Companies Act, 1956, as
amended vide Notification GSR No. 766 (756) (E) dated 16-12-93 of
Government of India.
Depreciation as above on fixed Assets have been calculated as under :
Sr. No. Type of Assets Basis
a) Revalued Assets as on 16th April,1994 Revalued Amount
b) Assets acquired after 16th April, 1994 Original Cost
2) The Company has calculated depreciation on assets acquired after
01-04-96 on W.D.V method at the rates specified in the schedule XIV of
the Companies Act, 1956.
(4) Investments :
Investments are stated in the books at cost.
(5) Inventories :
Inventories are valued at cost or market price whichever is lower.
(6) Treatment of retirement benefits :
Retirement benefits are recorded on cash basis.
(7) Revenue Recognition :
Revenue Income is recognised on accrual basis.
(8) Deferred Tax Assets / (Liabilities) : (Rs. in Lacs)
Current Year Previous Year Net Effect
Depreciation Unabsorbed Dep (61.00) (54.88) (6.12)
(9) There was no impairment loss on fixed assets on the basis of review
carried out by the Management in accordance with AS Â 28 issued by the
Institute of Chartered Accountants of India.
c. Terms / Rights attached to equity shares :
The Company has Equity Shares having a par value of Rs. 10 per share.
Each holder of Equity Share is entitled to one vote per share.
Mar 31, 2012
(1) Basis of Preparation of Financial Statements :
(a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the companies Act, 1956 as adopted
consistently by the Company except for certain fixed assets which are
revalued.
(b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
(2) Fixed Assets:
(a) All the fixed assets of the Company as on16lh April, 1994 had been
revalued. The original cost of these assets is replaced by revalued
amount.
(b) Other fixed assets , acquired after 16-04-94 are stated at their
original cost.
(3) Depreciation :
1) The Company provides depreciation on all the fixed Assets acquired
before 01-04-96 including revalued assets on straight line Method at
the rates specified in the schedule XIV of the Companies Act, 1956, as
amended vide Notification GSR No. 766 (756) (E) dated 16-12-93 of
Government of India.
2) The Company has calculated depreciation on assets acquired after
01-04-96 on W.D.V method at the rates specified in the schedule XIV of
the Companies Act, 1956.
3) The Company has started new division for manufacturing aluminum
sheets and coils. The commercial production of the same was started
from 15/1/2008. The Depreciation on this plant is calculated W.D.V.
method on pro-rata basis at the rates specified in the schedule XIV of
the Companies Act, 1956.
(4) Investments:
Investments are stated in the books at cost.
(5) Inventories:
Inventories are valued at cost or market price whichever is lower.
(6) Treatment of retirement benefits :
Retirement benefits are recorded on cash basis.
(7) Revenue Recognition :
Revenue Income is recognised on accrual basis.
Mar 31, 2010
(1) Basis of Preparation of Financial Statements.
(a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the companies Act, 1956 as adopted
consistently by the Company except for certain fixed assets which are
revalued.
(b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
(2) Fixed Assets
(a) All the fixed assets of the Company as on16Th April, 1994 had been
revalued. The original cost of these assets is replaced by revalued
amount.
(b) Other fixed assets , acquired after 16-04-94 are stated at their
original cost.
2) The Company has calculated depreciation on assets acquired after
01-04-96 on W.D.V method at the rates specified in the schedule XIV of
the Companies Act, 1956.
3) The Company has started new division for manufacturing aluminum
sheets and coils. The commercial production of the same was started
from 15/1/2008. The Depreciation on this plant is calculated W.D.V.
method on pro-rata basis at the rates specified in the schedule XIV of
the Companies Act, 1956.
(4) Investments
Investments are staled in the books at cost.
(5) Inventories
Inventories are valued at cost or market price whichever is lower.
(6) Treatment of retirement benefits Retirement benefits are recorded
on cash basis.
(7) Revenue Recognition
Revenue Income is accounted on cash basis.
(9) There was no impairment loss on fixed assets on the basis of review
carried out by the Management in accordance with AS-28 issued by the
Institute of Chartered Accountants of India.