Mar 31, 2015
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The financial statements of the Company have been prepared in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant
provisions of the Companies Act, 2013. The financial statements have been prepared on accrual
basis under the historical cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the previous year.
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The preparation of the financial statements in conformity with Indian GAAP requires the Management
to make estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the financial statements are prudent
and reasonable. Future results could differ due to these estimates and the differences between
the actual results and the estimates are recognized in the periods in which the results are known
/ materialize.
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The basis for valuation of inventories is as under:
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1 |
Raw Materials & |
Cost or realizable value whichever is lower. Cost is computed on the basis of |
2 |
Work-in-progress |
At cost or net realizable value, whichever is lower (Cost includes materials |
3 |
Finished Goods |
At cost or net realizable value, whichever is lower. |
4 |
Stores, spare & |
Cost or realizable value whichever is lower. Cost is ascertained on weighted |
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Interest income is accounted on accrual basis. Dividend income, if any is accounted for when the
right to receive it is established.
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Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any.
The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying
fixed assets up to the date the asset is ready for its intended use and other incidental expenses
incurred up to that date. Exchange differences arising on restatement / settlement of long-term
foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the
cost of the respective assets and depreciated over the remaining useful life of such assets.
Machinery spares which can be used only in connection with an item of fixed asset and whose
use is expected to be irregular are capitalized and depreciated over the useful life of the principal
item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from such asset beyond its previously
assessed standard of performance.
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Subsidy received is credited to reserves and surplus.
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Employee benefits include provident fund, superannuation fund, gratuity fund, compensated
absences, long service awards and post-employment medical benefits.
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Defined contribution plans
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The Companyâs contribution to provident fund and superannuation fund are considered as defined
contribution plans and are charged as an expense as they fall due based on the amount of
contribution required to be made.
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Defined benefit plans
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For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the
cost of providing benefits is determined in accordance with the rules of the Company and are
provided for based on the assumptions that such benefits are payable to employees at the end of
the accounting year.
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Mar 31, 2014
I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
II. Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
III. Inventories
The basis for valuation of inventories is as under:
1 Raw Materials & Packing Materials
Cost or realizable value whichever is lower. Cost is computed on the
basis of weighted average method including freight and related expenses
reduced by CENVAT benefits.
2 Work-in-progress
At cost or net realizable value, whichever is lower (Cost includes
materials and related overheads)
3 Finished Goods
At cost or net realizable value, whichever is lower
4 Stores, spare & consumables
Cost or realizable value whichever is lower. Cost is ascertained on
weighted average basis.
IV. Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
V. Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
VI. Depreciation and amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
VII. Revenue recognition
Sales are recognized, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax.
VIII. Other income
Interest income is accounted on accrual basis. Dividend income, if any
is accounted for when the right to receive it is established.
IX. Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets. Machinery spares which can be
used only in connection with an item of fixed asset and whose use is
expected to be irregular are capitalized and depreciated over the
useful life of the principal item of the relevant assets. Subsequent
expenditure relating to fixed assets is capitalized only if such
expenditure results in an increase in the future benefits from such
asset beyond its previously assessed standard of performance.
X. Government grants, subsidies and export incentives
Subsidy received is credited to reserves and surplus.
XI. Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
fund, compensated absences, long service awards and post-employment
medical benefits.
Defined contribution plans
The Company''s contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
Defined benefit plans
For defined benefit plans in the form of gratuity fund and
post-employment medical benefits, the cost of providing benefits is
determined in accordance with the rules of the Company and are provided
for based on the assumptions that such benefits are payable to
employees at the end of the accounting year.
Mar 31, 2013
I BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
II Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
IV Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
V Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
VI Depreciation and amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
VII Revenue recognition
Sales are recognized, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax.
VIII Other income
Interest income is accounted on accrual basis. Dividend income, if any
is accounted for when the right to receive it is established.
IX Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets. Machinery spares which can be
used only in connection with an item of fixed asset and whose use is
expected to be irregular are capitalized and depreciated over the
useful life of the principal item of the relevant assets. Subsequent
expenditure relating to fixed assets is capitalized only if such
expenditure results in an increase in the future benefits from such
asset beyond its previously assessed standard of performance.
X Government grants, subsidies and export incentives
Subsidy received is credited to reserves and surplus.
XI Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
fund, compensated absences, long service awards and post-employment
medical benefits.
Defined contribution plans
The Company''s contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
Defined benefit plans
For defined benefit plans in the form of gratuity fund and
post-employment medical benefits, the cost of providing benefits is
determined in accordance with the rules of the Company and are provided
for based on the assumptions that such benefits are payable to
employees at the end of the accounting year.
Mar 31, 2011
(A) The company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis. The financial
statements have been prepared under the historical cost convention as
going concern, in accordance with the Generally Accepted Accounting
Principles to comply in all material aspects with the Accounting
Standards issued by the Institute of Chartered Accountants of India and
the relevant provisions of the Companies Act, 1956.
(B) Revenue Recognition:
1. Revenue from sale of goods is recognized when the significant risks
and rewards of ownership have been transferred to the buyer/agent,
which coincides with the passing of possession to the buyer/agent.
2. Sales are inclusive of Excise duty and all recoveries except Sales
Tax.
(C) Subsidy/Benefits:
Subsidy received is credited to reserves & surplus.
(D) Fixed Assets and Depreciation:
1. Fixed Assets are stated at cost less accumulated depreciation, cost
includes cost of installation / commissioning and apportioned pre -
operative expenses reduced by CENVAT credit availed by the company.
2. Depreciation on fixed assets is provided on straight line method at
the rates specified in Schedule XIV of the Companies Act 1956.
(E) Foreign Exchange Transactions:
Foreign exchange transactions of revenue in nature are accounted at the
exchange rates prevailing on the date of transaction and are recognized
in the Profit and Loss Account. There are no Foreign Exchange
Transactions with respect to Assets and Liabilities.
(F) Inventories:
The basis of valuation of inventories is as under:
(A) Impairment of Assets
Management periodically assess using external and internal sources
whether there is an indication that an Asset may be impaired. An
impairment occurs where the carrying value exceeds the recoverable
amount. The impairment loss of the assets net selling price or present
value of future cash flows expected to arise from the continuing use of
the assets and its eventual disposal.
(B) Employee / Retirement Benefits:
a. Provident Fund:
Company's contribution to provident fund is accounted on accrual
basis and is charged to revenue account.
b. Gratuity and Leave Encashment:
Liability in respect of leave encashment and gratuity in accordance
with the rules of the company is provided for based on the assumption
that such benefits are payable to employees at the end of the
accounting year.
(C) Borrowing Cost:
Interest on funds borrowed for acquisition of assets is being
capitalized upto the date & the related assets are put to use. Interest
on funds borrowed for other than acquisition of assets is recognized in
the Profit and Loss Account.
Interest on SBI Working Capital loan is not provided for the financial
year.
(D) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognized on timing
differences; being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Where there is unabsorbed
depreciation or carry forward losses, deferred tax assets are
recognized only if there is virtual certainty of realization of such
assets. Other deferred tax assets are recognized only to the extent
there is reasonable certainty of realization in future.
(E) Provisions:
Provisions are recognized where there is a present obligations as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation in respect of which the
reliable estimate can be made. These are reviewed at each balance sheet
and adjusted to reflect the current best estimate.
Mar 31, 2010
(A) The company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis. The financial
statements have b een prepared under the historical cost convention as
going concern, in accordance with the Generally Accepted Accounting
Principles to comply in all material aspects with the Accounting
Standards issued by the institute of Chartered Accountants of India and
the relevant provisions of the Companies Act, 956.
(B) Revenue Recognition
1. Revenue from sale of goods is recognized when the significant risks
and rewards of ownership have been transferred to the buyer/agent,
which coincides with the passing of possession to the buyer/agent.
2. Sales are inclusive of Excise duty and all recoveries except Sales
Tax.
(C) Subsidy/Benefits
Subsidy received is credited to reserves & surplus.
(D) Fixed Assets and Depreciation
1. Fixed Assets are stated at cost less accumulated depreciation, cost
includes cost of installation / commissioning and apportioned pre -
operative expenses reduced by CENVAT credit availed by the company.
2. Depreciation on fixed assets is provided on straight line method at
the rates specified in Schedule XIV of the Companies Act 1956.
(E) Foreign Exchange Transactions
Foreign exchange transactions of revenue in nature are accounted at the
exchange rates prevailing on the date of transaction and are recognized
in the Profit and Loss Account. There are no Foreign Exchange
Transactions with respect to Assets and Liabilities.
(G) Impairment of Assets
Management periodically assess using external and internal sources
whether there is an indication that an Asset may be impaired. An
impairment occurs where the carrying value exceeds the recoverable
amount. The impairment loss of the assets net selling price or present
value of future cash flows expected to arise from the continuing use of
the assets and its eventual disposal.
(H) Employee / Retirement Benefits
a. Provident Fund:
Companys contribution to provident fund is accounted on accrual basis
and is charged to revenue account.
b. Gratuity and Leave Encashment:
Liability in respect of leave encashment and gratuity in accordance
with the rules of the company is provided for based on the assumption
that such benefits are payable to employees at the end of the
accounting year.
(I) Borrowing Cost
Interest on funds borrowed for acquisition of assets is berhg
capitalized upto the date the related assets are put to use. Interest
on funds borrowed for other than acquisition of assets is recognized in
the Profit and Loss Account.
Interest on SBI Working Capital loan is not provided for the financial
year.
(J) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognized on timing
differences; being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Where there is unabsorbed
depreciation or carry forward losses, deferred tax assets are
recognized only if there is virtual certainty of realization of such
assets. Other deferred tax assets are recognized only to the extent
there is reasonable certainty of realization in future.
(K) Provisions
Provisions are recognized where there is a present obligations as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation in respect of which the
reliable estimate can be made. These are reviewed at each balance sheet
and adjusted to reflect the current best estimate.
Mar 31, 2009
BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
(A) The company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis. The financial
statements have been prepared under the historical cost convention as
going concern, in accordance with the Generally Accepted Accounting
Principles to comply in all material aspects with the Accounting
Standards issued by the Institute of Chartered Accountants of India and
the relevant provisions of the Companies Act, 956.
(B) Revenue Recognition:
1. Revenue from sale of goods is recognized when the significant risks
and rewards of ownership have been transferred to the buyer/agent,
which coincides with the passing of possession to the buyer/agent.
2. Sales are inclusive of Excise duty and all recoveries except Sales
Tax.
(C) Subsidy/Benefits:
Subsidy received is credited to reserves & surplus.
(D) Fixed Assets and Depreciation:
1. Fixed Assets are stated at cost less accumulated depreciation, cost
includes cost of installation / commissioning and apportioned pre -
operative expenses reduced by CENVAT credit availed by the company.
2. Depreciation on fixed assets is provided on straight line method at
the rates specified in Schedule XIV of the Companies Act 1956.
(E) Foreign Exchange Transactions:
Foreign exchange transactions of revenue in nature are accounted at the
exchange rates prevailing on the date of transaction and are recognized
in the Profit and Loss Account. There are no Foreign Exchange
Transactions with respect to Assets and Liabilities.
(F) Inventories:
The basis of valuation of inventories is as under:
I Raw Materials & Packing Materials Cost or realizable value which ever
is lower. Cost is computed on the basis of weighted average method
including freight and related expenses reduced by CENVAT benefits.
II Work-in - process At cost or net realizable value, which ever is
lower. (Cost includes materials and related overheads)
III Finished Goods At cost or net realizable value, which ever is lower
IV Stores, spares & consumables Cost or realizable value which ever is
lower. Cost is ascertained on Weighted average basis.
(G) Impairment of Assets .
Management periodically assess using external and internal sources
whether there is an indication that an Asset may be impaired. An
impairment occurs where the carrying value exceeds the recoverable
amount. The impairment loss of the assets net selling price or present
value of future cash flows expected to arise from the continuing use of
the assets and its eventual disposal. (H) Employee / Retirement
Benefits:
a. Provident Fund:
Companys contribution to provident fund is accounted on accrual basis
and is charged to revenue account.
b. Gratuity and Leave Encashment:
Liability in respect of leave encashment and gratuity in accordance
with the rules of the company is provided for based on the assumption
that such benefits are payable to employees at the end of the
accounting year.
(I) Borrowing Cost:
Interest on funds borrowed for acquisition of assets is being
capitalized upto the date the related assets are put to use. Interest
on funds borrowed for other than acquisition of assets is recognized in
the Profit and Loss Account.
Interest on SBI Working Capital loan & Termloan is not provided for the
financial year.
(J) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognized on timing
differences; being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent period. Where there is unabsorbed
depreciation or carryforward losses, deferred tax assets are recognized
only if there is virtual certainty of realization of such assets. Other
deferred tax assets are recognized only to the extent there is
reasonable certainty of realization in future.
(K) Provisions:
Provisions are recognized where there is a present obligations as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation in respect of which the
reliable estimate can be made. These are reviewed at each balance sheet
and adjusted to reflect the current best estimate.