Mar 31, 2015
A. General
The financial statements are prepared on accrual basis under the
historical cost convention in accordance with the normally accepted
accounting principles and the provisions of the Companies Act, 2013.
The Financial Statement comply with the requirements of the Accounting
Standards notified under section 133 of the Companies Act, 2013 read
with rule of the Companies (Accounts) Rule, 2014.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognised in
the period in which the results are known/materialised.
C. Recognition of Income and Expenditure
All income and expenditure items having a material bearing on the
financial statements are recognised on the accrual basis.
D. Sales
Sales are accounted for inclusive of excise duty. The sale value is net
of discounts, returns and sales tax.
E. Excise Duty
Excise Duty on finished goods has been accounted on the basis of both
payments made in respect of goods cleared as also provision made for
goods lying in bonded ware-houses.
F. Depreciation
i) Depreciation on Buildings and Plant & Machinery (including
continuous Process Plant) is provided on straight line method and on
other assets on written down value method at the rates prescribed in
Schedule II of the Companies Act, 2013.
ii) Lease hold land is amortised over the duration of lease.
G. Employee Benefits
i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii) Post-employment and other long term employee benefits are
recognised as an expense in the profit and loss accounts for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to the profit and
loss accounts.
iii) The Company has created an approved gratuity fund and has taken a
Group Gratuity Insurance Policy with Life Insurance Corporation of
India for future payment of gratuity to employees. The Company accounts
for gratuity liability equivalent to the premium amount payable to Life
Insurance Corporation of India every year.
H. Fixed Assets
I. Tangible Assets :
Fixed assets are stated at cost net of modvat/cenvat less accumulated
depreciation and impairment loss, if any. Pre-operative expenses
including eligible borrowing cost incurred during construction period
and issue expenses related to funds raised for financing the project
are charged to capital work-in-progress and on completion, the costs
are allocated to the respective fixed assets.
Machinery spares which can be used only in connection with a particular
item of fixed assets and the use of which is irregular, are capitalised
at cost net of modvat / cenvat.
II. Intangible Assets (Software)
Intangibles representing software are amortised over their estimated
useful life.
I. Borrowing Cost
Borrowing costs that are attributable to the acquisition and
construction of qualifying assets are capitalised as a part of the cost
of such assets till the assets are ready for its use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
revenue.
J. Provision and Contingencies
The Company creates a provision when there is present obligation 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 a
reliable estimate can be made.
Liabilities which are material and whose future outcome can not be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of Notes to the Accounts.
K. Investments
Long term Investments are stated at cost. Provision for dimunition in
value of long term Investments is made only if such decline is other
than temporary.
L. Foreign Currency Transactions
i) Foreign currency transactions are recorded on initial recognition at
the rate prevailing on the date of the transaction. Where export bills
are negotiated with the bank, the export sales are recorded at the rate
on the date of negotiation as the said rate approximates the actual
rate at the date of the transaction.
ii) Foreign currency monetary items are reported using the closing
rate. Exchange differences arising on the settlement of monetary items
or on reporting the same at the closing rate as at the balance sheet
date are recognised as income or expenses in the period in which they
arise except in case of liabilities incurred for the purpose of
acquiring the fixed assets from outside India in which case such
exchange differences are adjusted in the carrying amount of fixed
assets.
M. Lease
Lease payments under an operating lease are recognised as expenses in
the statement of Profit and Loss as per terms of lease agreement.
N. Inventories
Raw materials, work-in-progress and finished goods are valued at lower
of cost or net realizable value. However, materials held for use in
the production of finished products are not written down below cost, if
the finished products in which they will be incorporated are expected
to be sold at or above cost. Finished goods and work-in-progress
include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Chemicals and
Stores and Spare Parts are valued at cost. Cost of Inventories is
generally computed on weighted average/FIFO basis.
O. Taxation
Current tax is determined as the amount of Tax Payable in respect of
taxable income for the year.
The deferred tax for timing difference between the book and tax profit
for the year is accounted using tax rates and tax laws that have been
enacted or substantially enacted at the - Balance Sheet date. Deferred
Tax assets arising from the timing difference are recognised to the
extent that there is reasonable certainty that sufficient future
taxable income will be available.
P. Research and Development
Revenue expenditure is charged as an expense in the year it is
incurred. Expenditure which results in the creation of capital assets
is taken as fixed assets and depreciation is provided on such assets as
are applicable.
Q. Impairment of Assets
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 Account in the year in which an asset is identified as impaired.
R. Earning per Share
The basic earnings per share (EPS) is computed by dividing the net
profit after tax for the year by the weighted average number of equity
shares outstanding during the year. For the purpose of calculating
diluted earnings per share, net profit after tax for the year and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares. The
dilutive potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued at a later date.
The diluted potential equity shares have been adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e. the
average market value of the outstanding shares.)
S. Government Grants
Capital grants relating to fixed assets are reduced from the gross
value of fixed assets. Other capital grants are credited to capital
reserve. Revenue grants are credited in statement of Profit & Loss or
deducted from related expenses.
T. Claims
In accordance with the consistent practice, insurance and other claims,
to the extent considered recoverable, are accounted for in the year
relevant to claim while the balance is accounted for on settlement.
Mar 31, 2014
A. General
The financial statements are prepared on accrual basis under the
historical cost convention in accordance with the normally accepted
accounting principles and the provisions of the Companies Act, 1956.
The Financial Statement comply with the requirements of the Accounting
Standards notified under Companies (Accounting Standards) Rules 2006
(as amended).
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognised in
the period in which the results are known/materialised.
C. Recognition of Income and Expenditure
All income and expenditure items having a material bearing on the
financial statements are recognised on the accrual basis.
D. Sales
Sales are accounted for inclusive of excise duty. The sale value is net
of discounts, returns and sales tax.
E. Excise Duty
Excise Duty on finished goods has been accounted on the basis of both
payments made in respect of goods cleared as also provision made for
goods lying in bonded ware-houses.
F. Depreciation
i) Depreciation on Buildings and Plant & Machinery is provided on
straight line method and on other assets on written down value method
at the rates prescribed in Schedule XIV to the Companies Act, 1956.
ii) Lease hold land is amortised over the duration of lease.
G. Employee Benefits
i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii) Post-employment and other long term employee benefits are
recognised as an expense in the profit and loss accounts for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amount payable determined using acturial
valuation techniques. Acturial gains and losses in respect of post
employement and other long term benefits are charged to the profit and
loss accounts.
iii) The Company has created an approved gratuity fund and has taken a
Group Gratuity Insurance Policy with Life Insurance Corporation of
India for future payment of gratuity to employees. The Company accounts
for gratuity liability equivalent to the premium amount payable to Life
Insurance Corporation of India every year.
H. Fixed Assets
I. Tangible Assets
Fixed assets are stated at cost net of modvat/cenvat less accumulated
depreciation and impairment loss, if any. Pre-operative expenses
including eligible borrowing cost incurred during construction period
and issue expenses related to funds raised for financing the project
are charged to capital work-in- progress and on completion, the costs
are allocated to the respective fixed assets.
Machinery spares which can be used only in connection with a particular
item of fixed assets and the use of which is irregular, are capitalised
at cost net of modvat/cenvat.
II. Intangible Assets (Software)
Intangibles representing software are amortised over their estimated
useful life.
I. Borrowing Cost
Borrowing costs that are attributable to the acquisition and
construction of qualifying assets are capitalised as a part of the cost
of such assets till the assets are ready for its use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
revenue.
J. Provision and Contingencies
The Company creates a provision when there is present obligation 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 a
reliable estimate can be made.
Liabilities which are material and whose future outcome can not be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of Notes to the Accounts.
K. Investments
Long term Investments are stated at cost. Provision for dimunition in
value of long term Investments is made only if such decline is other
than temporary.
L. Foreign Currency Transactions
i) Foreign currency transactions are recorded on initial recognition at
the rate prevailing on the date of the transaction. Where export bills
are negotiated with the bank, the export sales are recorded at the rate
on the date of negotiation as the said rate approximates the actual
rate at the date of the transaction.
ii) Foreign currency monetary items are reported using the closing
rate. Exchange differences arising on the settlement of monetary items
or on reporting the same at the closing rate as at the balance sheet
date are recognised as income or expenses in the period in which they
arise except in case of liabilities incurred for the purpose of
acquiring the fixed assets from outside India in which case such
exchange differences are adjusted in the carrying amount of fixed
assets.
M. Lease
Lease payments under an operating lease are recognised as expenses in
the statement of Profit and Loss as per terms of lease agreement.
N. Inventories
Raw materials, work-in-progress and finished goods are valued at lower
of cost and net realisable value. However, materials held for use in
the production of finished products are not written down below cost, if
the finished products in which they will be incorporated are expected
to be sold at or above cost. Finished goods and work-in-progress
include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Chemicals and
Stores and Spare Parts are valued at or below cost. Cost of inventories
is generally computed on weighted average/FIFO basis.
O. Taxation
Current tax is determined as the amount of Tax Payable in respect of
taxable income for the year.
The deferred tax for timing difference between the book and tax profit
for the year is accounted using tax rates and tax laws that have been
enacted or substantially enacted at the - Balance Sheet date. Deferred
Tax assets arising from the timing difference are recognised to the
extent that there is reasonable certainty that sufficient future
taxable income will be available.
P. Research and Development
Revenue expenditure is charged as an expense in the year it is
incurred. Expenditure which results in the creation of capital assets
is taken as fixed assets and depreciation is provided on such assets as
are applicable.
Q. Impairment of Assets
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 Account in the
year in which an asset is identified as impaired.
R. Earning per Share
The basic earnings per share (EPS) is computed by dividing the net
profit after tax for the year by the weighted average number of equity
shares outstanding during the year. For the purpose of calculating
diluted earnings per share, net profit after tax for the year and the
weighter average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares. The
dilutive potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued at a later date.
The diluted potential equity shares have been adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e. the
average market value of the outstanding shares.)
Dec 31, 2012
A. General
The financial statements are prepared on accrual basis under the under
the historical cost convention in accordance with the normally accepted
accounting principles and the provisions of the Companies Act, 1956.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognised in
the period in which the results are known/materialised.
C. Recognition of Income and Expenditure
All income and expenditure items having a material bearing on the
financial statements are recognised on the accrual basis.
D. Sales
Sales are accounted for inclusive of excise duty. The sale value is net
of discounts, returns and sales tax.
E. Excise Duty
Excise Duty on finished goods has been accounted on the basis of both
payments made in respect of goods cleared as also provision made for
goods lying in bonded ware-houses.
F. Depreciation
i) Depreciation on Buildings and Plant & Machinery is provided on
straight line method and on other assets on written down value method
at the rates prescribed in Schedule XIV to the Companies Act, 1956.
ii) Lease hold land is amortised over the duration of lease.
G. Employee Benefits
i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii) Post-employment and other long term employee benefits are
recognised as an expense in the profit and loss accounts for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amount payable determined using acturial
valuation techniques. Acturial gains and losses in respect of post
employement and other long term benefits are charged to the profit and
loss accounts.
iii) The Company has created an approved gratuity fund and has taken a
Group Gratuity Insurance Policy with Life Insurance Corporation of
India for future payment of gratuity to employees. The Company accounts
for gratuity liability equivalent to the premium amount payable to Life
Insurance Corporation of India every year.
H. Fixed Assets
I. Tangible Assets :
Fixed assets are stated at cost net of modvat/cenvat less accumulated
depreciation and impairment loss, if any. Pre-operative expenses
including eligible borrowing cost incurred during construction period
and issue expenses related to funds raised for financing the project
are charged to capital work-in- progress and on completion, the costs
are allocated to the respective fixed assets.
Machinery spares which can be used only in connection with a particular
item of fixed assets and the use of which is irregular, are capitalised
at cost net of modvat / cenvat.
II. Intangible Assets (Software)
Intangibles representing software are amortised over their estimated
useful life.
I. Borrowing Cost
Borrowing costs that are attributable to the acquisition and
construction of qualifying assets are capitalised as a part of the cost
of such assets till the assets are ready for its use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
revenue.
J. Provision and Contingencies
The Company creates a provision when there is present obligation 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 a
reliable estimate can be made.
Liabilities which are material and whose future outcome can not be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of Notes to the Accounts.
K. Investments
Long term Investments are stated at cost. Provision for dimunition in
value of long term Investments is made only if such decline is other
than temporary.
L. Foreign Currency Transactions
i) Foreign currency transactions are recorded on initial recognition at
the rate prevailing on the date of the transaction. Where export bills
are negotiated with the bank, the export sales are recorded at the rate
on the date of negotiation as the said rate approximates the actual
rate at the date of the transaction.
ii) Foreign currency monetary items are reported using the closing
rate. Exchange differences arising on the settlement of monetary items
or on reporting the same at the closing rate as at the balance sheet
date are recognised as income or expenses in the period in which they
arise except in case of liabilities incurred for the purpose of
acquiring the fixed assets from outside India in which case such
exchange differences are adjusted in the carrying amount of fixed
assets.
M. Lease
Lease payments under an operating lease are recognised as expenses in
the statement of Profit and Loss as per terms of lease agreement.
N. Inventories
Raw materials, work-in-progress and finished goods are valued at lower
of cost and net realisable value. However, materials held for use in
the production of finished products are not written down below cost, if
the finished products in which they will be incorporated are expected
to be sold at or above cost. Finished goods and work-in-progress
include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Chemicals and
Stores and Spare Parts are valued at or below cost. Cost of inventories
is generally computed on weighted average/FIFO basis.
O. Taxation
Current tax is determined as the amount of Tax Payable in respect of
taxable income for the year.
The deferred tax for timing difference between the book and tax profit
for the year is accounted using tax rates and tax laws that have been
enacted or substantially enacted at the - Balance Sheet date. Deferred
Tax assets arising from the timing difference are recognised to the
extent that there is reasonable certainty that sufficient future
taxable income will be available.
P. Research and Development
Revenue expenditure is charged as an expense in the year it is
incurred. Expenditure which results in the creation of capital assets
is taken as fixed assets and depreciation is provided on such assets as
are applicable.
Q. Impairment of Assets
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 Account in the year in which an asset is identified as impaired.
R. Earning per Share
The basic earnings per share (EPS) is computed by dividing the net
profit after tax for the year by the weighted average number of equity
shares outstanding during the year. For the purpose of calculating
diluted earnings per share, net profit after tax for the year and the
weighter average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares. The
dilutive potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued at a later date.
The diluted potential equity shares have been adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e. the
average market value of the outstanding shares.)
Mar 31, 2012
A. General
The financial statements are prepared under the historical cost
convention in accordance with the normally accepted accounting
principles and the provisions of the Companies Act, 1956.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognised in
the period in which the results are known/materialised.
C. Recognition of Income and Expenditure
All income and expenditure items having a material bearing on the
financial statements are recognised on the accrual basis.
D. Sales
Sales are accounted for inclusive of excise duty. The sale value is net
of discounts, returns and sales tax.
E. Excise Duty
Excise Duty on finished goods has been accounted on the basis of both
payments made in respect of goods cleared as also provision made for
goods lying in bonded ware-houses.
F. Depreciation
i) Depreciation on Buildings and Plant & Machinery is provided on
straight line method and on other assets on written down value method
at the rates prescribed in Schedule XIV to the Companies Act, 1956.
ii) Lease hold land is amortised over the duration of lease.
G. Employee Benefits
i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii) Post-employment and other long term employee benefits are
recognised as an expense in the profit and loss accounts for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amount payable determined using acturial
valuation techniques. Acturial gains and losses in respect of post
employement and other long term benefits are charged to the profit and
loss accounts.
iii) The company has created an approved gratuity fund and has taken a
Group Gratuity Insurance Policy with Life Insurance Corporation of
India for future payment of gratuity to employees. The Company accounts
for gratuity liability equivalent to the premium amount payable to Life
Insurance Corporation of India every year.
H. Fixed Assets
Fixed assets are stated at cost net of modvat/cenvat less accumulated
depreciation and impairment loss, if any. Pre-operative expenses
including eligible borrowing cost incurred during construction period
and issue expenses related to funds raised for financing the project
are charged to capital work-in- progress and on completion, the costs
are allocated to the respective fixed assets.
I. Borrowing Cost
Borrowing costs that are attributable to the acquisition and
construction of qualifying assets are capitalised as a part of the cost
of such assets till the assets are ready for its use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
revenue.
J. Provision and Contingencies
The Company creates a provision when there is present obligation 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 a
reliable estimate can be made.
Liabilities which are material and whose future outcome can not be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of Notes to the Accounts.
K. Investments
Long term Investments are stated at cost. Provision for dimunition in
value of long term Investments is made only if such decline is other
than temporary.
L. Foreign Currency Transactions
i) Foreign currency transactions are recorded on initial recognition at
the rate prevailing on the date of the transaction. Where export bills
are negotiated with the bank, the export sales are recorded at the rate
on the date of negotiation as the said rate approximates the actual
rate at the date of the transaction.
ii) Foreign currency monetary items are reported using the closing
rate. Exchange differences arising on the settlement of monetary items
or on reporting the same at the closing rate as at the balance sheet
date are recognised as income or expenses in the period in which they
arise except in case of liabilities incurred for the purpose of
acquiring the fixed assets from outside India in which case such
exchange differences are adjusted in the carrying amount of fixed
assets.
M. Lease
Lease payments under an operating lease are recognised as expenses in
the statement of Profit and Loss as per terms of lease agreement.
N. Inventories
Raw materials, work-in-progress and finished goods are valued at lower
of cost and net realisable value. However, materials held for use in
the production of finished products are not written down below cost, if
the finished products in which they will be incorporated are expected
to be sold at or above cost. Finished goods and work-in-progress
include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Chemicals and
Stores and Spare Parts are valued at or below cost. Cost of inventories
is generally computed on weighted average/FIFO basis.
O. Taxation
Current tax is determined as the amount of Tax Payable in respect of
taxable income for the year. Tax on Fringe benefits is measured at the
specified rate on the value of fringe benefits in accordance with the
provisions of Section 115WC of the Income Tax Act, 1961.
The deferred tax for timing difference between the book and tax profit
for the year is accounted using tax rates and tax laws that have been
enacted or substantially enacted at the - Balance Sheet date. Deferred
Tax assets arising from the timing difference are recognised to the
extent that there is reasonable certainty that sufficient future
taxable income will be available.
P. Research and Development
Revenue expenditure is charged as an expense in the year it is
incurred. Expenditure which results in the creation of capital assets
is taken as fixed assets and depreciation is provided on such assets as
are applicable.
Q. Impairment of Assets
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 Account in the year in which an asset is identified as impaired.
Mar 31, 2011
A. General :
The financial statements are prepared under the historical cost
convention in accordance with the normally accepted accounting
principles and the provisions of the Companies Act, 1956.
B. Use of Estimates :
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognised in
the period in which the results are known/materialised.
C. Recognition of Income and Expenditure :
All income and expenditure items having a material bearing on the
financial statements are recognised on the accrual basis.
D. Sales :
Sales are accounted for inclusive of excise duty. The sale value is net
of discounts, returns and sales tax.
E. Excise Duty :
Excise Duty on finished goods has been accounted on the basis of both
payments made in respect of goods cleared as also provision made for
goods lying in bonded ware-houses.
F. Depreciation :
i) Depreciation on Buildings and Plant & Machinery is provided on
straight line method and on other assets on written down value method
at the rates prescribed in Schedule XIV to the Companies Act, 1956.
ii) Lease hold land is amortised over the duration of lease.
G. Employee Benefits :
i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii) Post-employment and other long term employee benefits are
recognised as an expense in the profit and loss accounts for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amount payable determined using acturial
valuation techniques. Acturial gains and losses in respect of post
employement and other long term benefits are charged to the profit and
loss accounts.
iii) The company has created an approved gratuity fund and has taken a
Group Gratuity Insurance Policy with Life Insurance Corporation of
India for future payment of gratuity to employees. The Company accounts
for gratuity liability equivalent to the premium amount payable to Life
Insurance Corporation of India every year.
H. Fixed Assets :
Fixed assets are stated at cost net of modvat/cenvat less accumulated
depreciation and impairment loss, if any. Pre-operative expenses
including eligible borrowing cost incurred during construction period
and issue expenses related to funds raised for financing the project
are charged to capital work-in- progress and on completion, the costs
are allocated to the respective fixed assets.
I. Borrowing Cost :
Borrowing costs that are attributable to the acquisition and
construction of qualifying assets are capitalised as a part of the cost
of such assets till the assets are ready for its use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
revenue.
J. Provision and Contingencies :
The Company creates a provision when there is present obligation 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 a
reliable estimate can be made.
Liabilities which are material and whose future outcome can not be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of Notes to the Accounts.
K. Investments :
Long term Investments are stated at cost. Provision for dimunition in
value of long term Investments is made only if such decline is other
than temporary.
L. Foreign Currency Transactions :
i) Foreign currency transactions are recorded on initial recognition at
the rate prevailing on the date of the transaction. Where export bills
are negotiated with the bank, the export sales are recorded at the rate
on the date of negotiation as the said rate approximates the actual
rate at the date of the transaction.
ii) Foreign currency monetary items are reported using the closing
rate. Exchange differences arising on the settlement of monetary items
or on reporting the same at the closing rate as at the balance sheet
date are recognised as income or expenses in the period in which they
arise except in case of liabilities incurred for the purpose of
acquiring the fixed assets from outside India in which case such
exchange differences are adjusted in the carrying amount of fixed
assets.
M. Lease :
Lease payments under an operating lease are recognised as expenses in
the statement of Profit and Loss as per terms of lease agreement.
N. Inventories :
Raw materials, work-in-progress and finished goods are valued at lower
of cost and net realisable value. However, materials held for use in
the production of finished products are not written down below cost, if
the finished products in which they will be incorporated are expected
to be sold at or above cost. Finished goods and work-in-progress
include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Chemicals and
Stores and Spare Parts are valued at or below cost. Cost of inventories
is generally computed on weighted average/FIFO basis.
O. Taxation :
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Tax on fringe benefits is measured at the
specified rate on the value of fringe benefits in accordance with the
provisions of Section 115WC of the Income Tax Act, 1961.
The deferred tax for timing difference between the book and tax profit
for the year is accounted using tax rates and tax laws that have been
enacted or substantially enacted at the Balance Sheet date. Deferred
Tax assets arising from the timing difference are recognised to the
extent that there is reasonable certainty that sufficient future
taxable income will be available.
P. Research and Development :
Revenue expenditure is charged as an expense in the year it is
incurred. Expenditure which results in the creation of capital assets
is taken as fixed assets and depreciation is provided on such assets as
applicable.
Q. Impairment of Assets :
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 Account in the year in which an asset is identified as impaired.
Mar 31, 2010
A. General :
The financial statements are prepared under the historical cost
convention in accordance with the normally accepted accounting
principles and the provisions of the Companies Act, 1956.
B. Use of Estimates :
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognised in
the period in which the results are known/materialised.
C. Recognition of Income and Expenditure :
All income and expenditure items having a material bearing on the
financial statements are recognised on the accrual basis.
D. Sales :
Sales are accounted for inclusive of excise duty. The sale value is net
of discounts, returns and sales tax.
E. Excise Duty :
Excise Duty on finished goods has been accounted on the basis of both
payments made in respect of goods cleared as also provision made for
goods lying in bonded ware-houses.
F. Depreciation :
i) Depreciation on Buildings and Plant & Machinery is provided on
straight line method and on other assets
on written down value method at the rates prescribed in Schedule XIV to
the Companies Act, 1956. ii) Lease hold land is amortised over the
duration of lease.
G. Employee Benefits :
i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
ii) Post-employment and other long term employee benefits are
recognised as an expense in the profit and loss accounts for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amount payable determined using acturial
valuation techniques. Acturial gains and losses in respect of post
employement and other long term benefits are charged to the profit and
loss accounts.
iii) The company has created an approved gratuity fund and has taken a
Group Gratuity Insurance Policy with Life Insurance Corporation of
India for future payment of gratuity to employees. The Company accounts
for gratuity liability equivalent to the premium amount payable to Life
Insurance Corporation of India every year.
H. Fixed Assets :
Fixed assets are stated at cost net of modvat/cenvat less accumulated
depreciation and impairment loss, if any. Pre-operative expenses
including eligible borrowing cost incurred during construction period
and issue expenses related to funds raised for financing the project
are charged to capital work-in- progress and on completion, the costs
are allocated to the respective fixed assets.
I. Borrowing Cost :
Borrowing costs that are attributable to the acquisition and
construction of qualifying assets are capitalised as a part of the cost
of such assets till the assets are ready for its use. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
revenue.
J. Provision and Contingencies :
The Company creates a provision when there is present obligation 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 a
reliable estimate can be made.
Liabilities which are material and whose future outcome can not be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of Notes to the Accounts.
K. Investments :
Long term Investments are stated at cost. Provision for dimunition in
value of long term Investments is made only if such decline is other
than temporary.
L. Foreign Currency Transactions :
i) Foreign currency transactions are recorded on initial recognition at
the rate prevailing on the date of the transaction. Where export bills
are negotiated with the bank, the export sales are recorded at the rate
on the date of negotiation as the said rate approximates the actual
rate on the date of the transaction.
ii) Foreign currency monetary items are reported using the closing
rate. Exchange differences arising on the settlement of monetary items
or on reporting the same at the closing rate as at the balance sheet
date are recognised as income or expenses in the period in which they
arise except in case of liabilities incurred for the purpose of
acquiring the fixed assets from outside India in which case such
exchange differences are adjusted in the carrying amount of fixed
assets.
M. Lease :
Lease payments under an operating lease are recognised as expenses in
the statement of Profit and Loss as per terms of lease agreement.
N. Inventories :
Raw materials, work-in-progress and finished goods are valued at lower
of cost and net realisable value. However, materials held for use in
the production of finished products are not written down below cost, if
the finished products in which they will be incorporated are expected
to be sold at or above cost. Finished goods and work-in-progress
include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Chemicals and
Stores and Spare Parts are valued at or below cost. Cost of inventories
is generally computed on weighted average/FIFO basis.
O. Taxation :
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Tax on fringe benefits is measured at the
specified rate on the value of fringe benefits in accordance with the
provisions of Section 115WC of the Income Tax Act, 1961.
The deferred tax for timing difference between the book and tax profit
for the year is accounted using tax rates and tax laws that have been
enacted or substantially enacted at the Balance Sheet date. Deferred
Tax assets arising from the timing difference are recognised to the
extent that there is reasonable certainty that sufficient future
taxable income will be available.
P. Research and Development :
Revenue expenditure is charged as an expense in the year it is
incurred. Expenditure which results in the creation of capital assets
is taken as fixed assets and depreciation is provided on such assets as
applicable.
Q. Impairment of Assets :
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 Account in the year in which an asset is identified as impaired.