Mar 31, 2015
A) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of revenues and expenditure for the year. Although
these estimates are based on the management's best knowledge of current
events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.
b) Tangible fixed assets
Tangible fixed assets are carried at the cost of acquisition or
construction less accumulated depreciation. The cost of fixed assets
includes non refundable taxes, duties, freight and other incidental
expenses related to the acquisition and installation of the respective
assets. Borrowing costs directly attributable to acquisition or
construction of those fixed assets which necessarily take a substantial
period of time to get ready for their intended use and all
pre-operative expenses till the commencement of commercial production
are capitalized.
Intangible fixed assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses, if any.
c) Depreciation and amortization
Depreciation on tangible assets is provided for on the straight line
method as per the rates and in the manner prescribed under Schedule II
of the Companies Act, 2013. Depreciation is calculated on a pro-rata
basis from the date of installation till the date the tangible assets
are sold or disposed.
Intangible fixed assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization. Intangible assets
are amortized as under:
Intangible assets ESTIMATED USEFUL LIFE
Computer softwares 3YEARS
d) Impairment of tangible and intangible assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's assets. If any indication exists, an asset's recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater ofthe net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognised to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation), had no impairment
loss been recognised for the asset in prior years.
e) Investments
Investments are either classified as current or long-term based on the
management's intention at the time of purchase. Current investments are
carried at the lower of cost and fair value. Long-term investments are
carried at cost and provisions recorded to recognize any decline, other
than temporary, in the carrying value of each investment.
f) Valuation of inventories
Inventories are valued at the lower of cost and net realizable value.
Cost of inventories comprises all cost of purchases, cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
The methods of determining cost of various categories of inventories
are as follows:
Raw Materials and accessories : First in first out (FIFO)
Work-in-progress and finished goods (Manufactured) : FIFO and including
an appropriate
share of Production
overheads.
g) Revenue recognition
Revenue from sale of goods is recognised when significant risks and
rewards in respect of ownership of products are transferred to
customers.
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Service income is recognized as per the terms of contracts with
customers when the related services are performed, or the agreed
milestones are achieved.
All other items of income are accounted on accrual basis except
interest on Income Tax refund and dividend income which are accounted
on receipt basis.
Export entitlements/incentives are recognized as income when the right
to receive credit as per the terms of the relevant scheme is
established in respect of the exports made and where there is no
significant uncertainty regarding the ultimate collection of the
relevant export proceeds.
Profit on sale of investments is recorded on transfer of title from the
company and is determined as the difference between the sales price and
then carrying value of the investment.
h) Employee Benefits
Liability for employee benefits, both short and longterm,for present
and past services which are due as per the terms of the employment are
recorded in accordance with Accounting Standard (AS) 15 " Employee
Benefits" notified by the Companies (Accounting Standards) Rules, 2006.
A. Gratuity:
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering all eligible employees of the Company. The plan
provides for a lump sum payment to vested employees on retirement, death
while in employment or on termination of employment in an amount
equivalent to 15 days salary payable for each completed year of service.
Vesting occurs upon completion of five years of service. Contributions
to Gratuity fund are made to recognized funds managed by the Life
Insurance Corporation of India. The Company accounts for the liability
for future gratuity benefits on the basis of an independent actuarial
valuation.
Contributions payable to the recognised provident fund, which is
defined contribution scheme, are charged to the profit and loss
account.
B. Short Term Employees Benefits:
Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered. These benefits include leave travel
allowance, bonus/performance incentives and leave encashment.
i) Income tax expense
Income tax expense comprises current tax and deferred tax charge or
credit.
Current tax:
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period, i.e, the period for which MAT credit is allowed to be
carried forward.
In the year in which the company recognizes MAT credit as an asset in
accordance with the Guidance Note on accounting for credit available in
respect of Minimum Alternate Tax under the Income Tax Act, 1961, the
said asset is created by way of credit to the statement of profit &
loss and shown as "MAT credit Entitlement".
The company reviews the "MAT credit entitlement" asset at each
reporting date and writes down the asset to the extent the company does
not have convincing evidence that it will pay normal tax during the
specified period.
Deferred tax:
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and are written-down or written-up
to reflect the amount that is reasonably/virtually certain (as the case
may be) to be realized.
j) Foreign currency transactions and balances
Foreign currency transactions are recorded using the exchange rates
prevailing on the dates of the respective transactions. Exchange
differences arising on foreign currency transactions settled during the
year are recognized in the profit and loss account.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at year-end rates. The resultant
exchange differences are recognized in the profit and loss account.
Non-monetary assets are recorded at the rates prevailing on the date of
the transaction.
k) Leases
Finance leases, which effectively transfer to the company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized at the inception of the lease term at the lower of the
fair value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges and
reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of liability. Finance charges are
recognised as finance costs in the statement of profit and loss. Lease
management fees, legal charges and other initial direct costs of lease
are capitalized.
A leased asset is depreciated on straight line basis using the rates
and in the manner prescribed under Schedule II of the Companies Act,
2013. However, if there is no reasonable certainty that the company
will obtain the ownership by the end of the lease term, the capitalized
asset is depreciated on a straight line basis over the shorter of lease
term or the useful life envisaged in Schedule II to Companies Act,
2013.
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item are classified as
operating leases. Lease payments under operating leases are recognized
as an expense in the statement of profit and loss on a straight-line
basis over the lease term.
m) Borrowing costs
Borrowing cost directly attributable to the acquisition, construction
or production of an asset that necessarily take a substantial period of
time to get ready for its intended use or sale are capitalized as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
n) Provisions and contingent liabilities
The Company creates a provision when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
Assets are not recognized in the financial statements since this may
result in the recognition of income that may never be realized.
o) Earnings per share
In determining earnings per share, the company considers the net profit
after tax and includes the post tax effect of any
extraordinary/exceptional item. The number of shares used in computing
basic earnings per Share is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted earnings per share comprises the weighted average shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued on the
conversion 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 dilutive
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).
p) Accounting policies, which are not specifically referred to, are
consistent with generally accepted accounting policies.
Mar 31, 2014
A) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of revenues and expenditure for the year. Although
these estimates are based on the management''s best knowledge of current
events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.
b) Tangible fixed assets
Tangible fixed assets are carried at the cost of acquisition or
construction less accumulated depreciation. The cost of tangible fixed
assets includes non refundable taxes, duties, freight and other
incidental expenses related to the acquisition and installation of the
respective assets. Borrowing costs directly attributable to acquisition
or construction of those tangible fixed assets which necessarily take a
substantial period of time to get ready for their intended use and all
pre-operative expenses till the commencement of commercial production
are capitalized.
c) Intangible fixed assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amoritization and accumulated
impairment losses, if any.
d) Depreciation and amortization
Depreciation on tangible assets is provided for on the straight line
method as per the rates and in the manner prescribed under Schedule XIV
of the Companies Act 1956. Depreciation is calculated on a pro-rata
basis from the date of installation till the date the tangible assets
are sold or disposed.
Amortization of intangible assets is provided for on the straight line
method as per the rates and in the manner prescribed under Schedule XIV
of the Companies Act 1956.
e) Impairment of tangible and intangible assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s assets. If any indication exists, an asset''s recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognised to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation), had no impairment
loss been recognised for the asset in prior years.
f) Investments
Investments are either classified as current or long-term based on the
management''s intention at the time of purchase. Current investments are
carried at the lower of cost and fair value. Long-term investments are
carried at cost and provisions recorded to recognize any decline, other
than temporary, in the carrying value of each investment.
g) Valuation of inventories
Inventories are valued at the lower of cost and net realizable value.
Cost of inventories comprises all cost of purchases, cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
The methods of determining cost of various categories of inventories
are as follows:
Raw Materials and accessories : First in first out (FIFO)
Work-in-progress and finished goods : FIFO and including an
(Manufactured) appropriate share of
Production overheads.
h) Revenue recognition
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Service income is recognized as per the terms of contracts with
customers when the related services are performed, or the agreed
milestones are achieved.
All other items of income are accounted on accrual basis except
interest on Income Tax refund and dividend income which are accounted
on receipt basis.
Export entitlements/incentives are recognized as income when the right
to receive credit as per the terms of the relevant scheme is
established in respect of the exports made and where there is no
significant uncertainty regarding the ultimate collection of the
relevant export proceeds.
Profit on sale of investments is recorded on transfer of title from the
company and is determined as the difference between the sales price and
then carrying value of the investment.
i) Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of the employment are
recorded in accordance with Accounting Standard (AS) 15 " Employee
Benefits" notified by the Companies (Accounting Standards) Rules, 2006.
A. Gratuity:
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering all eligible employees of the Company. The
plan provides for a lump sum payment to vested employees on retirement,
death while in employment or on termination of employment in an amount
equivalent to 15 days salary payable for each completed year of
service. Vesting occurs upon completion of five years of service.
Contributions to Gratuity fund are made to recognized funds managed by
the Life Insurance Corporation of India. The Company accounts for the
liability for future gratuity benefits on the basis of an independent
actuarial valuation.
Contributions payable to the recognised provident fund, which is
defined contribution scheme, are charged to the profit and loss
account.
B. Short Term Employees Benefits:
Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered. These benefits include leave travel
allowance, bonus/performance incentives and leave encashment.
j) Income tax expense
Income tax expense comprises current tax and deferred tax charge or
credit.
Current tax:
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period, i.e, the period for which MAT credit is allowed to be
carried forward.
In the year in which the company recognizes MAT credit as an asset in
accordance with the Guidance Note on accounting for credit available in
respect of Minimum Alternate Tax under the Income Tax Act, 1961, the
said asset is created by way of credit to the statement of profit &
loss and shown as"MAT credit Entitlement"
The company reviews the "MAT credit entitlement" asset at each
reporting date and writes down the asset to the extent the company does
not have convincing evidence that it will pay normal tax during the
specified period.
Deferred tax:
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and are written-down or written-up
to reflect the amount that is reasonably/virtually certain (as the case
may be) to be realized.
k) Foreign currency transactions and balances
Foreign currency transactions are recorded using the exchange rates
prevailing on the dates of the respective transactions. Exchange
differences arising on foreign currency transactions settled during the
year are recognized in the profit and loss account.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at year-end rates. The resultant
exchange differences are recognized in the profit and loss account.
Non- monetary assets are recorded at the rates prevailing on the date
of the transaction.
l) Leases
Finance leases, which effectively transfer to the company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized at the inception of the lease term at the lower of the
fair value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of liability. Finance charges are
recognised as finance costs in the statement of profit and loss. Lease
management fees, legal charges and other initial direct costs of lease
are capitalized.
A leased asset is depreciated on straight line basis over the useful
life of the asset as envisaged in schedule XIV to the Companies Act,
1956. However, if there is no reasonable certainty that the company
will obtain the ownership by the end of the lease term, the capitalized
asset is depreciated on a straight line basis over the shorter of lease
term or the useful life envisaged in Schedule XIV to Companies Act,
1956.
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item are classified as
operating leases. Lease payments under operating leases are recognized
as an expense in the statement of profit and loss on a straight-line
basis over the lease term.
m) Borrowing costs
Borrowing cost directly attributable to the acquisition, construction
or production of an asset that necessarily take a substantial period of
time to get ready for its intended use or sale are capitalized as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
n) Provisions and contingent liabilities
The Company creates a provision when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
Assets are not recognized in the financial statements since this may
result in the recognition of income that may never be realized.
o) Earnings per share
In determining earnings per share, the company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional item. The number of shares used in computing basic earnings
per Share is the weighted average number of shares outstanding during
the period. The number of shares used in computing diluted earnings per
share comprises the weighted average shares considered for deriving
basic earnings per share and also the weighted average number of equity
shares that could have been issued on the conversion 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 dilutive 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).
p) Accounting policies, which are not specifically referred to, are
consistent with generally accepted accounting policies.
Mar 31, 2013
A) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of revenues and expenditure for the year. Although
these estimates are based on the management''s best knowledge of current
events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.
b) Tangible fixed assets
Tangible fixed assets are carried at the cost of acquisition or
construction less accumulated depreciation. The cost of tangible fixed
assets includes non refundable taxes, duties, freight and other
incidental expenses related to the acquisition and installation of the
respective assets. Borrowing costs directly attributable to acquisition
or construction of those tangible fixed assets which necessarily take a
substantial period of time to get ready for their intended use and all
pre-operative expenses till the commencement of commercial production
are capitalized.
c) Intangible fixed assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amoritization and accumulated
impairment losses, if any.
d) Depreciation and amortization
Depreciation on tangible assets is provided for on the straight line
method as per the rates and in the manner prescribed under Schedule XIV
of the Companies Act 1956. Depreciation is calculated on a pro-rata
basis from the date of installation till the date the tangible assets
are sold or disposed.
Amortization of intangible assets is provided for on the straight line
method as per the rates and in the manner prescribed under Schedule XIV
of the Companies Act 1956.
e) Impairment of tangible and intangible assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s assets. If any indication exists, an asset''s recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognised to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation), had no impairment
loss been recognised for the asset in prior years.
f) Investments
Investments are either classified as current or long-term based on the
management''s intention at the time of purchase. Current investments are
carried at the lower of cost and fair value. Long-term investments are
carried at cost and provisions recorded to recognize any decline, other
than temporary, in the carrying value of each investment.
g) Valuation of inventories
Inventories are valued at the lower of cost and net realizable value.
Cost of inventories comprises all cost of purchases, cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
The methods of determining cost of various categories of inventories
are as follows:
Raw Materials and accessories Firstinfirstout(FIFO)
Work-in-progress and finished goods (Manufactured) FIFO and including
an appropriate share of Production Overheads.
h) Revenue recognition
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Service income is recognized as per the terms of contracts with
customers when the related services are performed, orthe agreed
milestones are achieved.
All other items of income are accounted on accrual basis except
interest on Income Tax refund and dividend income which are accounted
on receipt basis.
Export entitlements/incentives are recognized as income when the right
to receive credit as per the terms of the relevant scheme is
established in respect of the exports made and where there is no
significant uncertainty regarding the ultimate collection of the
relevant export proceeds.
Profit on sale of investments is recorded on transfer of title from the
company and is determined as the difference between the sales price and
then carrying value of the investment.
i) Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of the employment are
recorded in accordance with Accounting Standard (AS) 15 " Employee
Benefits" notified by the Companies (Accounting Standards) Rules, 2006.
A. Gratuity:
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering all eligible employees of the Company. The
plan provides for a lump sum payment to vested employees on retirement,
death while in employment or on termination of employment in an amount
equivalent to 15 days salary payable for each completed year of
service. Vesting occurs upon completion of five years of service.
Contributions to Gratuity fund are made to recognized funds managed by
the Life Insurance Corporation of India. The Company accounts for the
liability for future gratuity benefits on the basis of an independent
actuarial valuation.
Contributions payable to the recognised provident fund, which is
defined contribution scheme, are charged to the profit and loss
account.
B. Short Term Employees Benefits:
Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered. These benefits include leave travel
allowance, bonus/performance incentives and leave encashment.
j) Income tax expense
I ncome tax expense comprises current tax and deferred tax charge or
credit.
Current tax:
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period, i.e, the period for which MAT credit is allowed to be
carried forward.
In the year in which the company recognizes MAT credit as an asset in
accordance with the Guidance Note on accounting for credit available in
respect of Minimum Alternate Tax under the Income Tax Act, 1961, the
said asset is created by way of credit to the statement of profit &
loss and shown as "MAT credit Entitlement".
The company reviews the "MAT credit entitlement" asset at each
reporting date and writes down the asset to the extent the company does
not have convincing evidence that it will pay normal tax during the
specified period.
Deferred tax:
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and are written-down or written-up
to reflect the amount that is reasonably/virtually certain (as the case
may be) to be realized.
k) Foreign currency transactions and balances
Foreign currency transactions are recorded using the exchange rates
prevailing on the dates of the respective transactions. Exchange
differences arising on foreign currency transactions settled during the
year are recognized in the profit and loss account.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at year- end rates. The resultant
exchange differences are recognized in the profit and loss account.
Non-monetary assets are recorded at the rates prevailing on the date of
the transaction.
I) Leases
Finance leases, which effectively transfer to the company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized at the inception of the lease term at the lower of the
fair value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of liability. Finance charges are
recognised as finance costs in the statement of profit and loss. Lease
management fees, legal charges and other initial direct costs of lease
are capitalized.
A leased asset is depreciated on straight line basis over the useful
life of the asset as envisaged in schedule XIV to the Companies Act,
1956. However, if there is no reasonable certainty that the company
will obtain the ownership by the end of the lease term, the capitalized
asset is depreciated on a straight line basis over the shorter of lease
term or the useful life envisaged in Schedule XIV to Companies Act,
1956.
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item are classified as
operating leases. Lease payments under operating leases are recognized
as an expense in the statement of profit and loss on a straight-line
basis over the lease term.
m) Borrowing costs
Borrowing cost directly attributable to the acquisition, construction
or production of an asset that necessarily take a substantial period of
time to get ready for its intended use or sale are capitalized as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
n) Provisions and contingent liabilities
The Company creates a provision when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
Assets are not recognized in the financial statements since this may
result in the recognition of income that may never be realized.
o) Earnings per share
In determining earnings per share, the company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional item. The number of shares used in computing basic earnings
per Share is the weighted average number of shares outstanding during
the period. The number of shares used in computing diluted earnings per
share comprises the weighted average shares considered for deriving
basic earnings per share and also the weighted average number of equity
shares that could have been issued on the conversion 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 dilutive 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).
p) Accounting policies, which are not specifically referred to, are
consistent with generally accepted accounting policies.
Mar 31, 2012
(A) PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
During the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However it
has significant impact on presentation and disclosures made in the
financial statements. The company has also re classified the previous
year figures in accordance with the requirements applicable in the
current year.
(B) USEOFESTIMATES
The preparation of the financial statements in conformity with GAAP
requires the management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and reported amounts of revenues and expenditure for the
year. Actual results could differ from those estimates. Any revision
to accounting estimates is recognized prospectively in the current and
future periods.
(C) FIXED ASSETS
a. Tangible Fixed Assets
Tangible fixed assets are carried at the cost of acquisition or
construction less accumulated depreciation. The cost of tangible fixed
assets includes non refundable taxes, duties, freight and other
incidental expenses related to the acquisition and installation of the
respective assets. Borrowing costs directly attributable to
acquisition or construction of those tangible fixed assets which
necessarily take a substantial period of time to get ready for their
intended use and all pre- operative expenses till the commencement of
commercial production are capitalized.
b. Intangible Assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses, if any.
(D) DEPRECIATION AND AMORTIZATION
Depreciation on tangible assets is provided for-on the straight line
method as per the rates and in the manner prescribed under Schedule XIV
of the Companies Act 1956. Depreciation is calculated on a pro-rata
basis from the date of installation till the date the tangible assets
are sold or disposed.
Amortization of intangible assets is provided for on the straight line
method as per the rates and in the manner prescribed under Schedule XIV
of the Companies Act 1956.
(E) IMPAIRMENT OF TANGIBLE, AND INTANGIBLE ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's assets, If any indication exists, an asset's recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an
appropriated is count factor.
Reversal of impairment losses recognized in prior years is recorded when
there is an indication that the impairment losses recognized for the
asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation), had no impairment
loss been recognized for the asset in prior years.
(F) INVESTMENTS
Investments are either classified as current or long-term based on the
management's intention at the time of purchase. Current investments are
carried at the lower of cost and fair value. Long-term investments are
carried at cost and provisions recorded to recognize any decline, other
than temporary, in the carrying value of each investment.
(G) INVENTORIES
Inventories are valued at the lower of cost and net realizable value.
Cost of inventories comprises all cost of purchase, cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
The methods of determining cost of various categories of inventories
are as follows:
Raw materials and Accessories First in-first-out (FIFO)
Work-in-process and finished goods (manufactured) FIFO and including an
appropriate share of production overheads.
(H) REVENUE RECOGNITION
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Service income is recognized as per the terms of contracts with
customers when the related services are performed, or the agreed
milestones are achieved.
All other items of income are accounted on accrual basis except
interest on Income Tax refund and dividend income which are accounted on
receipt basis.
Export entitlements/incentives are recognized as income when the right
to receive credit as per the terms of the relevant scheme is
established in respect of the exports made and where there is no
significant uncertainty regarding the ultimate collection of the
relevant export proceeds.
Profit on sale of investments is recorded on transfer of title from the
company and is determined as the difference between the sales price and
then carrying value of the investment.
(I) EXPENSES
Expenses are accounted on accrual basis.
(J) RETIREMENT BENEFITS
Liability for employee benefits, both short and long term. for present
and past services which are due as per the terms of the employment are
recorded in accordance with Accounting Standard (AS) 15 " Employee
Benefits" notified by the Companies (Accounting Standards) Rules, 2006.
A. Gratuity
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering all eligible employees of the Company. The
plan provides for a lump sum payment to vested employees on retirement,
death while in employment or on termination of employment in an amount
equivalent to 15 days salary payable for each completed year of
service. Vesting occurs upon completion of five years of service.
Contributions to Gratuity fund are made to recognized funds managed by
the Life Insurance Corporation of India. The Company accounts for the
liability for future gratuity benefits on the basis of an independent
actuarial valuation.
Contributions payable to the recognized provident fund, which is
defined contribution scheme, are charged to the profit and loss
account.
B. Short Term Employee Benefits
Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered. These benefits include leave travel
allowance, bonus/performance incentives and leave encashment.
(K) INCOMETAX EXPENSE
Income tax expense comprises current tax and deferred tax charge or
credit Current tax
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company.
Deferred tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written-down or written-up
to reflect the amount that is reasonably /virtually certain (as the
case may be) to be realized.
(L) FOREIGN CURRENCYTRANSACTIONS AND BALANCES
Foreign currency transactions are recorded using the exchange rates
prevailing on the dates of the respective transactions.
Exchange differences arising on foreign currency transactions settled
during the year are recognized in the Statement of Profit and Loss.
Current Assets and liabilities at the end of the year are translated at
the yearend exchange rate. Profit or loss so determined and also the
realized exchange gains/losses are recognized in the Statement of
Profit & Loss.
(M) LEASES
Finance leases, which effectively transfer to the company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized at the inception of the lease term at the lower of the
fair value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of liability. Finance charges are
recognized as finance costs in the statement of profit and loss. Lease
management fees, legal charges and other initial direct costs of lease
are capitalized.
A leased asset is depreciated on straight line basis over the useful
life of the asset as envisaged in schedule XIV to the Companies Act,
1956. However, if there is no reasonable certainty that the company
will obtain the ownership by the end of the lease term, the capitalized
asset is depreciated on a straight line basis over the shorter of lease
term or the useful life envisaged in Schedule XIV to Companies Act,
1956.
Leases, where the less or effectively retains substantially all the
risks and benefits of ownership of the leased item are classified as
operating leases. Lease payments under operating leases are recognized
as an expense in the statement of profit and loss on a straight-line
basis over the lease term.
(N) BORROWING COST
Borrowing cost directly attributable to the acquisition, construction
or production of an asset that necessarily take a substantial period of
time to get ready for its intended use or sale are capitalized as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(O) EARNINGPERSHARE
In determining earnings per share, the company considers the net profit
after tax and includes the post tax effect of any
extraordinary/exceptional item. The number of shares used in computing
basic earnings per Share is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted earnings per share comprises the weighted average shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued on the
conversion 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 dilutive
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).
(P) PROVISIONSANDCONTINGENTLIABILITIES
The Company creates a provision when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Mar 31, 2010
(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Financial statements are prepared and presented in accordance with
Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention on the accrual basis. GAAP comprises
accounting standards notified by the Central Goverment of India under
section 211 (3C) of the Companies Act, 1956, other pronouncements of
Institute of Chartered Accountants of India, the provisions of the
Companies Act, 1956 and guidelines issued by Securities and Exchange
Board of India. Accounting policies have been consistently applied
except where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
The Management evaluates and adopts all recently issued or revised
accounting standards on an ongoing basis.
(B) USE OF ESTIMATES
The preparation of the financial statements in conformity with GAAP
requires the management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and reported amounts of revenues and expenditure for the
year. Actual results could differ from those estimates. Any revision to
accounting estimates is recognized prospectively in the current and
future periods.
(C) FIXED ASSETS
Fixed Assets are carried at the cost of acquisition or construction
less accumulated depreciation. The cost of fixed assets includes non
refundable taxes, duties, freight and other incidental expenses related
to the acquisition and installation of the respective assets. Borrowing
costs directly attributable to acquisition or construction of those
fixed assets which necessarily take a substantial period of time to get
ready for their intended use and all pre-operative expenses till the
commencement of commercial production are capitalized.
Advances paid towards the acquisition of fixed assets outstanding at
each balance sheet date and the cost fixed assets not ready for their
intended use before such date are disclosed under capital
work-in-progress.
(D) DEPRECIATION
Depreciation on fixed assets is provided for on the Straight Line
Method as per the rates and in the manner prescribed under Schedule XIV
of the Companies Act, 1956. Depreciation is calculated on a pro-rata
basis from the date of installation till the date the assets are sold
or disposed.
(E) IMPAIRMENT OF ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Companys assets. If any indication exists, an assets recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognised to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation), had no impairment
loss been recognised for the asset in prior years.
(F) INVESTMENTS
Investments are either classified as current or long-term based on the
managements intention at the time of purchase. Current investments are
carried at the lower of cost and fair value. Long-term investments are
carried at cost and provisions recorded to recognize any decline, other
than temporary, in the carrying value of each investment.
(G) INVENTORIES
Inventories are valued at the lower of cost and net realizable value.
Cost of inventories comprises all cost of purchase, cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
The methods of determining cost of various categories of inventories
are as follows :
a) Raw materials & Accessories - First in-first-out (FIFO)
b) Work-in-process and Finished Goods- FIFO and including and
appropriate share of production overheads. (manufactured)
(H) REVENUE RECOGNITION
Revenue from product sales is stated exclusive of returns, sales tax
and applicable trade discounts and allowances.
Service income is recognized as per the terms of contracts with
customers when the related services are performed, or the agreed
milestones are achieved.
All other items of income are accounted on accrual basis except
interest on Income Tax refund and dividend income which are accounted
on receipt basis.
Export entitlements / incentives are recognized as income when the
right to receive credit as per the terms of the relevant scheme is
established in respect of the exports made and where there is no
signifficant uncertainty regarding the ultimate collection of the
relevant export proceeds.
Profit on sale of investments is recorded on transfer of title from the
company and is determined as the difference between the sales price and
then carrying value of the investment.
(I) EXPENSES
Expenses are accounted on accrual basis.
(J) EMPLOYEE BENEFITS
Liability for employee, benefits, both short and long term, for present
and past services which are due as per the terms of the employment are
recorded in accordance with Accounting Standard (AS) 15" Employee
Benefits" notified by the Companies (Accounting Standards) Rules, 2006.
1) GRATUITY
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering all eligible employees of the Company and its
subsidiary. The plan provides for a lump sum payment to vested
employees on retirement, death while in employment or on termination of
employment in an amount equivalent to 15 days salary payable for each
completed year of service. Vesting occurs upon completion of five years
of service. Contributions to Gratuity fund are made to recognized funds
managed by the Life Insurance Corporation of India. The Company
accounts for the liability for future gratuity benefits on the basis of
an independent acturial valuation.
Contributions payable to the recognised provident fund, which is defind
contribution scheme, are charged to the profit and loss account.
U) SHORT TERM EMPLOYEE BENEFITS
Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered. These benefits include leave travel
allowance, bouns / performance incentives and leave encashment.
(K) INCOMETAX EXPENSE
Income tax expense comprises current tax and deferred tax charge or
credit.
Current Tax
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company.
Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax libilities or assets are recognised using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognised only if there is a virtual
certainty of realisation of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written-down or written-up
to reflect the amount that is reasonably/ virtually certain (as the
case may be) to be realised.
(L) FOREIGN CURRENCY TRANSACTIONS AND BALANCES
Foreign currency transaction are recorded using the exchange rates
prevailing on the dates of the respective transactions. Exchange
differences arising on foreign currency transactions settled during the
year are recognized in the profit and loss account.
Currant assets and liabilities at the end of the year are translated at
the year end exchange rate. Profit of loss so determined and also the
realised exchange gains / losses are recognised in the Profit & Loss
Asccount.
(M) LEASES
Lease payments under operating leases are recognised as an expense in
the statement of Profit & Loss on a straight-line basis over the lease
term.
(N) EARNING PER SHARE
In determining earnings per share, the company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional item. The number of shares used in computing basic earnings
per Share is the weighted average number of shares outstanding during
the period. The number of shares used in computing diluted earnings per
share comprises the weighted average shares considered for deriving
basic earnings per share and also the weighted average number of equity
shares that could have been issued on the conversion 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 dilutive 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).
(O) PROVISIONS AND CONTINGENT LIABILITIES
The Company creates a provision when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probaby will not,
require an outflow of resources. Where there is possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.