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Accounting Policies of Starlite Components Ltd. Company

Mar 31, 2016

1. Corporate Information: -

M/s. Starlite Components Limited is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. The company is in the manufacturing and selling of Electronic Ballast and LED Products with factory situated at Satpur as well as Vilholi , Dist- Nashik and office at Satpur, Dist - Nashik. The shares of the Company are listed on the Bombay Stock Exchange (Scrip Code -517548).

2. Basis of Preparation : -

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

The Company has reclassified previous year figures wherever necessary.

3. Significant Accounting Policies: -

a) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 2013 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenvat & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of dere cognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets -The carrying amount of Tangible fixed assets as on 31st March 2014 is depreciated over remaining useful life of the asset after reassessing the useful life of the asset. The assets acquired on or after 1st April 2014 are depreciated according to the useful life of such asset as specified in Schedule II of Companies Act 2013. While accounting the fixed assets, the principle of Component accounting is followed in case of significant components of fixed assets & for depreciating the significant components, the useful life of each significant component is considered separately apart from the remaining parts of fixed asset.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expenditure is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year.

In case of dere cognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, “Impairment of Assets”.

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies -Grants and subsidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments. On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories- Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment. Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESIC is charged to Profit & Loss Account on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Profit and Loss account. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Profit & Loss Account. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Company’s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.


Mar 31, 2015

A) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 2013 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management's best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenvat & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets The carrying amount of Tangible fixed assets as on 31st March 2015 is depreciated over remaining useful life of the asset after reassessing the useful life of the asset. The assets acquired on or after 1st April 2014 are depreciated according to the useful life of such asset as specified in Schedule II of Companies Act 2013. While accounting the fixed assets, the principle of Component accounting is followed in case of significant components of fixed assets & for depreciating the significant components, the useful life of each significant component is considered separately apart from the remaining parts of fixed asset.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expediture is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year.

In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, "Impairment of Assets".

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies -Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual invesment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments. On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. H owever, in respect of the value of investment in M/s. Paragon Plastics Limited provision for diminution in the value has been made considering the fair market value of the investment

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment. Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESI is charged to Profit & Loss Account on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Profit and Loss account. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Profit & Loss Account. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Povisionsin respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Companys earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.


Mar 31, 2014

A) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 1956 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenvat & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset. In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets - Depreciation on Tangible Fixed Assets has been provided on SLM method at the rates & in the manner prescribed in Schedule XIV of Companies Act 1956.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expediture is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year. In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, "Impairment of Assets". Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment. If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies - Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments. On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost or fair value determined on an individual invesment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments. On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment. Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESI is charged to Statement of Profit & Loss on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Statement of Profit & Loss. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Statement of Profit & Loss. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Company''s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

Note:-

1 During the year, pursuantt o the BIFR order dated 10th October 2013, the paid up share capital oft he company is reduced by 60% viz. from 84,30,000 Equity shares of Rs.10/- each fully paid up aggregating Rs.8,43,00,000 to Rs.3,37,20,000 consisting of 33,72,000 Equity shares of Rs.10/- fully paid up. Pursuantt o the reduction, shareholders holding 100 shares of Rs.10/- each fully paid will be allotted 40 equity shares of Rs. 10/- each fully paid up.


Jun 30, 2013

1. Significant Accounting Policies: -

a) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 1956 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Convert & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets - Depreciation on Tangible Fixed Assets has been provided on SLM method at the rates & in the manner prescribed in Schedule XIV of Companies Act 1956.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expenditure is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year.

In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, "Impairment of Assets".

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies - Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

I) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment.

Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESI is charged to Statement of Profit & Loss on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Statement of Profit & Loss. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Statement of Profit & Loss. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Company''s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

b) Rights attached to Equity shares

(Disclosure pursuant to Note no. 6(A)(e) of Part I of Schedule VI to the Companies Act, 1956)

The company has only one class of equity shares having a par value of 10/- per share. Each Holder of equity shares is entitled to one vote per share. The dividend proposed by the board of directors is subject o the approval of the shareholders in the ensuing Annual General Meeting.

c) Shares held by Holding / ultimate Holding company and / or their subsidiaries / associates (Disclosure pursuant to Note no. 6(A)(f) of Part I of Schedule VI to the Companies Act, 1956)

Equity Shares issued by the company and held by Holding company, ultimate Holding company and their Subsidiaries / associates are NIL

g) Securities convertible into equity/preference shares issued - NIL

(Disclosure pursuant to Note no. 6(A)(j) of Part I of Schedule VI to the Companies Act, 1956)

h) Calls unpaid - NIL

(Disclosure pursuant to Note no. 6(A)(k) of Part I of Schedule VI to the Companies Act, 1956)

i) Forfeited shares - NIL

(Disclosure pursuant to Note no. 6(A)(l) of Part I of Schedule VI to the Companies Act, 1956)

Nature of security & Terms of Repayment

(Disclosure pursuant to Note no. 6(C) (ii) & (vi) of Part I of Schedule VI to the Companies Act, 1956)


Jun 30, 2012

A) Basis of Accounting - Financial statements areprepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 1956 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates -The preparation of financial statements requires the management of theCompany to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying a mounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets-TangibleFixed assets arestated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenv at & VAT credit available and exchange difference arising on translation/ settlementof foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets - Depreciation on Tangible Fixed Assets has been provided on SLM method at the rates & in the manner prescribed in Schedule XIV of Companies Act 1956

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit& Loss in the yearin which the expediture is incurred. Amortisation is done on straight line basisoverestimated useful economic lifeand the amortisation period and method are reviewed at the end of each financial year.

In caseof derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain /loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets -Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard -28, "Impairment of Assets".

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the sameare reversed and the reversibleis limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies -Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments. '' On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual invesment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline otherthan temporary in the value of investments.

On disposal of investment, the difference between its carrying amou nt and net disposal proceeds is charged or credited to the Statement of Profit and Loss. However, in respect of the value of investment in M/s. Paragon Plastics Limited provision for diminution in the value has been made considering the fair market value of the investment

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depredation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

I) Current Assets. Loans & advances- Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment.

Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15.

Provident fond & ESI is charged to Statement of Profit & Loss on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Statement of Profit & Loss. At the dose of the year, all foreign cu rrency liabilities and current assets are stated at the relevant exchange rate prevailing atthe close of the year. The exchange differences arising from foreign currency transactions are dealtwith,as such, in the Statement of Profit & Loss. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961.

Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax.

Deferred Tax- subjectto materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subseq uent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future

p) Provisions. Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arisingout of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share-The earnings considered in ascertaining the Company''s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost -The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

Figures for the previous year have been regrouped and rearranged wherever necessary.


Jun 30, 2010

A) Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year.

c) Revenue Recognition - Sales are recognized including excise duty but net taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year except where expressly stated otherwise.

d) Fixed Assets -

All fixed assets are recorded at cost of acquisition or construction. They are stated at historical cost. Financial cost relating to borrowed funds attributable to construction or acquisition of fixed assets is included in the gross book value of fixed assets to which they relate.

e) Depreciation:

Depreciation on fixed assets is provided on "straight line method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

f) Investments -

Long term Investments are valued at cost. However, the value of investment in M/s. Paragon Plastics Limited is fully written off in the current year, provision for diminution in the value has been made considering the fair market value of the investment.

g) Inventories -

Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material.

h) Current Assets, Loans & advances -

Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

i) Retirement benefits -

Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund is charged to Profit & Loss Account on accrual basis.

j) Foreign currency Transactions -

The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Profit and Loss account. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Profit & Loss Account. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

k) Taxes on Income -

Current tax is determined on the amount of tax payable in respect of taxable income, if any, for the year ended on 31st March 2010.

Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

l) Provisions. Contingent Liabilities & Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Contingent liabilities are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

m) Earnings per share - The earnings considered in ascertaining the Companys earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

n) Borrowing cost - the Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.


Jun 30, 2009

A) Basis of Accounting: The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b) Capital Expenditure:

i) Cost of major civil works required for plant and machinery supports is considered as Plant and Machinery.

ii) Capital Assets under erection/installation, if any, are reflected in the balance sheet as "capital work in progress".

iii) All fixed assets are recorded at cost of acquisition or construction. They are stated at historical cost. Financial cost relating to borrowed funds attributable to construction or acquisition of fixed assets is included in the gross book value of fixed assets to which they relate.

c) Depreciation: Depreciation on fixed assets is provided on "straight line method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

d) Investments: Investments are long term in nature and valued at cost as per AS 13. However, the value of investment in M/s. Starlite Lighting Limited has been reduced by 90% of the original cost.

e) Inventories: Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material.

f) Contingent Liabilities: These are disclosed by way of Notes on Accounts. Provision is made in the accounts in respect of those liabilities that are likely to materialize after the year end till the finalization of accounts and have material effect on the position stated in the balance sheet.

g) Taxes on Income: Current tax is determined on the amount of tax payable in respect of taxable income, if any, for the year ended on 31st March 2009.

The Deferred Tax Asset provision for the previous year is continued during the current year without making any provision for the current year since there is no virtual certainty of the realisation of such asset. Had the provision been made the amount of provision would have been Rs. 38,34,255/- for the current year and the Total Amount of Deferred Tax Asset would have been Rs. 97,68,607/-.

h) Transactions in foreign currency: Sales/Purchases, if any, made in foreign currency are booked at the then prevailing exchange rates Gain/loss, if any, arising out of fluctuations in exchange rate is accounted for on realization/payment.

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