Mar 31, 2016
1) SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation of Financial Statements :
The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles in India and the provisions of Companies Act, 2013 and Accounting Standards specified under Section 133 of Companies Act 2013. These accounts have been prepared on the principles of going concern and accrual basis of accounting. All expenses and income to the extent considered payable & receivable respectively unless stated to be otherwise, are accounted for on mercantile basis. Accounting policies unless specifically stated to be otherwise, are consistent and in consonance with generally accepted accounting principles.
(b) Sales and Other Income
Sales ( net of returns, etc.) comprise sale of goods which are accounted for on the basis of dispatches within the financial year/ period. Revenue from sale of services comprising of installation charges / job works etc. are recognized on acceptance by customers under proportionate completion or completed service contract method depending upon nature and period of execution thereof. Revenue under proportionate completion method is recognized as and when outcome thereof can be estimated reliably. The proportionate completion is determined based on actual costs incurred in proportion to total estimated cost as per management''s estimate. Foreseeable losses in this respect are recognized as and when ascertained
(c) Employee benefits:
(i) Short Term Employee benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered by the employees.
(ii) Post Employment benefits and other long term employee benefits:-
Company''s contribution to defined contribution schemes such as Provident Fund, Pension Fund etc. are recognized and charged to the statement of profit and loss as and when incurred.
Company''s liability towards defined benefit scheme such as Gratuity, Leave etc. are actuarially determined at each balance sheet date using the projected unit credit method.
Actuarial gains and losses are recognized in the year when they arise.
(d) Fixed Assets and Depreciation :
(i) Fixed Assets are stated at cost less depreciation. Depreciation is provided on Straight Line Method as indicated in Note. 12 to the Accounts. Leasehold land is amortized over the period of lease.
(ii) In case of revaluation of Fixed Assets, the original cost as written up by the value, is considered in the accounts and the differential amount is transferred to Capital Reserve.
(iii) Depreciation on fixed assets is calculated on Straight Line Method based on useful life either assessed technically or derived with respect to the rates specified in Schedule XIV to the Companies Act, 1956. The additional charge of depreciation on account of revaluation is deducted from the Capital Reserve and credited to the Statement of Profit and Loss..
(e) Impairment:
Fixed Assets are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of the fixed assets is determined. An impairment loss is recognized whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is greater of asset''s net selling price or its value in use. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased.
(f) Inventories:
(i) Inventories are valued at the lower of cost or estimated net realizable value. Cost is determined on first in first out method of valuation.
(ii) Cost of raw materials and bought out components are determined on the basis of first in first out method of valuation.
(iii) Work-in-progress is valued at direct material cost, direct labour cost and allocable direct/indirect production overheads. Labour cost is determined by applying normal labour hour rates on equivalent completed production hours as estimated by the Technical Department.
(iv) Finished Goods are valued after considering appropriate portion of allocable overhead considered relatable to production directly or indirectly. Allocable overheads have been determined on actual/pro-rata basis with reference to the aggregate overheads of the Company.
(v) Provision is made for obsolescence etc against inventories.
(g) Taxes on income
Provision for tax is made for current and deferred taxes. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing differences, which are capable of reversal in subsequent years are recognized using tax rates and tax laws, which have been enacted or substantively enacted. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized. In case of carry forward unabsorbed depreciation and tax losses, deferred tax assets are recognized only if there is "virtual certainty" that such deferred tax assets can be realized against future taxable profits.
(h) Investments:
Long term Investments are accounted for at cost less provision , if any, for diminution in value other than temporary.
(i) Foreign Currency Transactions:
Transactions in foreign currencies are accounted for, at the exchange rate prevailing on the date of the transaction. Foreign Currency monetary assets and liabilities at the yearend are translated using the closing exchange rates. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transactions during the year are recognized as income or expenses.
(j) Government Grants
Government grants are recognized as capital or revenue depending upon the purpose and utilization of the proceeds there against. Revenue grants including subsidy / rebates etc. are credited to the Statement of Profit or Loss under "other income" or deducted from the related expenses. Grants relating to Fixed Assets are credited to Capital Reserve Account or adjusted in the cost of such assets as the case may be.
(k) Borrowing Costs:
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.
(l) Provision for liquidated damages and warranty costs
(i) Provision for liquidated damages in terms of agreement with customers is made on estimated basis on merit and probability of its occurrence.
(ii) Product warranty costs are accrued as estimated based on past experience.
(m) Use of Estimates, Provisions, Contingent Liabilities and Contingent Assets:
The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures related to contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which results are known / materialized.
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent liabilities are disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statement.
g) Terms and rights attached to equity shares:
The Company has one class of equity shares having par value of Rs 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation the equity shareholders are eligible to receive the remaining assets after discharging all liabilities of the Company, in proportion to their shareholding.
a) The Company had allotted 20,00,000 Warrants on a preferential basis to ISG Traders Limited, a Promoter Group Company on 17th October, 2013 entitling the allottee to apply for and obtain allotment in one or more tranches one Equity Share of Rs.10/- each at a price of Rs.17.50 per share against each such Warrant within 18 months from the date of allotment. Out of above 5,75,000 and 6,50,00 equity shares of Rs 10 at a premium of Rs 7.50 each had been subscribed and allotted on 31st March,
2014 and 7th March 2015 respectively and remaining 7,75,000 equity shares have been alloted during the year on 15th April 2015.
Mar 31, 2013
(a) Basis of Preparation of Financial Statements
The accounts have been prepared under the historical cost convention
and in accordance with the provision of the Companies Act, 1956 and
accounting standards notified vide Companies (Accounting Standards)
Rules, 2006. Accounting policies unless specifically stated to be
otherwise, are consistent and are in consonance with generally accepted
accounting principles.
(b) Sales:
Sales (net of returns, etc.) comprise sale of goods which are accounted
for on the basis of dispatches within the financial year/ period and
income from installation charges/job works which are recognized on
acceptance by customers.
(c) Employee benefits:
Employee benefits are accrued in the period in which services are
rendered by the employees.
Contribution to defined contribution schemes such as Provident Fund
etc. are recognized as and when incurred.
Long term employee benefits under defined benefit scheme such as
contribution to gratuity, leave etc. are determined at close of the
financial year at present value of the amount payable using actuarial
valuation techniques.
Actuarial gains and losses are recognised in the year when they arise.
(d) Fixed Assets and Depreciation:
a) Fixed Assets are stated at cost less depreciation. Depreciation is
provided on Straight Line Method as indicated in Schedule 11 to the
Accounts. Leasehold land is amortized over the period of lease.
b) In case of revaluation of Fixed Assets, the original cost as written
up by the valuer, is considered in the accounts and the differential
amount is transferred to Capital Reserve.
c) Depreciation on assets revalued is calculated on their respective
book values on Straight Line Method based on useful life either
assessed technically or derived with respect to the rates specified in
Schedule XIV to the Companies Act, 1956. The additional charge of
depreciation on account of revaluation is deducted from the Capital
Reserve and credited to the Profit & Loss Account.
(e) Impairment:
Fixed Assets are reviewed at each balance sheet date for impairment. In
case events and circumstances indicate any impairment, recoverable
amount of the fixed assets is determined. An impairment loss is
recognized whenever the carrying amount of assets either belonging to
Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The
recoverable amount is greater of asset''s net selling price or its value
in use. An impairment loss is reversed if there has been change in the
recoverable amount and such loss either no longer exists or has
decreased.
(f) Inventories:
a) Inventories are valued at the lower of cost or estimated net
realizable value. Cost is determined on first in first out method of
valuation.
b) Cost of raw materials and bought out components are determined on
the basis of first in first out method of valuation.
c) Work-in-progress is valued at direct material cost, direct labour
cost and allocable direct/indirect production overheads. Labour cost
is determined by applying normal labour hour rates on equivalent
completed production hours as estimated by the Technical Department.
d) Finished Goods are valued after considering appropriate portion of
allocable overhead considered relatable to production directly or
indirectly. Allocable overheads have been determined on actual/pro-rata
basis with reference to the aggregate overheads of the Company.
e) Provision is made for slow-moving and obsolete inventories.
(g) Taxes on income :
Provision for tax is made for current and deferred taxes. Current tax
is provided on the taxable income using the applicable tax rates and
tax laws. Deferred tax assets and liabilities arising on account of
timing differences, which are capable of reversal in subsequent years
are recognised using tax rates and tax laws, which have been enacted or
substantively enacted. Deferred tax assets are recognized only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
will be realized. In case of carry forward unabsorbed depreciation and
tax losses, deferred tax assets are recognised only if there is
"virtual certainty" that such deferred tax assets can be realized
against future taxable profits.
(h) Investments:
Long-term Investments are accounted for at cost less any permanent
diminution in value.
(i) Foreign Currency:
Transactions in foreign currencies are accounted for at the exchange
rate prevailing on the date of the transaction. Foreign Currency
monetary assets and liabilities at the year end are translated using
the closing exchange rates. The loss or gain thereon and also on the
exchange differences on the settlement of the foreign currency
transactions during the year are recognized as income or expenses.
(j) Government Grants
Grants are recognized as capital or revenue depending upon the purpose
and utilisetion of the proceeds there against. Revenue grants including
subsidy rebates etc. are credited to the statement of Profit and Loss
under "Other Income" or deducted from the related expenses. Grants
related to fixed assets are credited to Capital Reserve account or
adjusted in the cost of such assets as the case may be.
(k) Borrowing Costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as the
part of the cost of that asset.
(l) Finance Lease:
Assets acquired on finance leases are capitalised and a corresponding
liability disclosed as lease obligations under "Borrowings". Such
assets are capitalised at fair values or present value of minimum lease
payments, whichever is lower, at the inception of the lease term and
disclosed as leased assets. Rentals paid by the Company are apportioned
between the finance charge and as a reduction of the outstanding
liability. Finance charge reflects a constant periodic rate of interest
of the remaining balance of liability for each period.
(m) Provision for liquidated damages and warranty costs
a) Provision for liquidated damages in terms of agreement with
customers is made as estimated based on merit and probability of its
occurrence.
b) Product warranty costs are accrued in the year of sale as estimated
based on past experience.
(n) Use of Estimates, Provisions, Contingent Liabilities and Contingent
Assets:
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, and disclosures related to contingent
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognized in
the period in which results are known/materialized.
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are disclosed by way of notes to accounts.
Contingent assets are neither recognized nor disclosed in the financial
statement.
Mar 31, 2012
(a) Basis of Preparation of Financial Statements
The accounts have been prepared under the historical cost convention
and in accordance with the provision of the Companies Act, 1956 and
accounting standards notified vide Companies (Accounting Standards)
Rules, 2006. Accounting policies unless specifically stated to be
otherwise, are consistent and are in consonance with generally accepted
accounting principles.
(b) Sales:
Sales (net of returns, etc.) comprise sale of goods which are accounted
for on the basis of dispatches within the financial year/ period and
income from installation charges/job works which are recognized on
acceptance by customers.
(c) Employee benefits:
Employee benefits are accrued in the period in which services are
rendered by the employees.
Contribution to defined contribution schemes such as Provident Fund
etc. are recognized as and when incurred.
Long-term employee benefits under defined benefit scheme such as
contribution to gratuity, leave etc. are determined at close of the
financial year at present value of the amount payable using actuarial
valuation techniques.
Actuarial gains and losses are recognised in the year when they arise.
(d) Fixed Assets and Depreciation:
a) Fixed Assets are stated at cost less depreciation. Depreciation is
provided on Straight Line Method as indicated in Note 11 to the
Accounts. Leasehold land is amortized over the period of lease.
b) In case of revaluation of Fixed Assets, the original cost as written
up by the valuer, is considered in the accounts and the differential
amount is transferred to Capital Reserve.
c) Depreciation on assets revalued is calculated on their respective
book values on Straight Line Method based on useful life either
assessed technically or derived with respect to the rates specified in
Schedule XIV to the Companies Act, 1956. The additional charge of
depreciation on account of revaluation is deducted from the Capital
Reserve and credited to the Statement of Profit & Loss Account.
(e) Impairment:
Fixed Assets are reviewed at each balance sheet date for impairment. In
case events and circumstances indicate any impairment, recoverable
amount of the fixed assets is determined. An impairment loss is
recognized whenever the carrying amount of assets either belonging to
Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The
recoverable amount is greater of asset's net selling price or its value
in use. An impairment loss is reversed if there has been change in the
recoverable amount and such loss either no longer exists or has
decreased.
(f) Inventories:
a) Inventories are valued at the lower of cost or estimated net
realizable value. Cost is determined on first in first out method of
valuation.
b) Cost of raw materials and bought out components are determined on
the basis of first in first out method of valuation.
c) Work-in-progress is valued at direct material cost, direct labour
cost and allocable direct/indirect production overheads. Labour cost
is determined by applying normal labour hour rates on equivalent
completed production hours as estimated by the Technical Department.
d) Finished Goods are valued after considering appropriate portion of
allocable overhead considered relatable to production directly or
indirectly. Allocable overheads have been determined on actual/pro-rata
basis with reference to the aggregate overheads of the Company.
e) Provision is made for slow-moving and obsolete inventories.
(g) Taxes on income :
Provision for tax is made for current and deferred taxes. Current tax
is provided on the taxable income using the applicable tax rates and
tax laws. Deferred tax assets and liabilities arising on account of
timing differences, which are capable of reversal in subsequent years
are recognised using tax rates and tax laws, which have been enacted or
substantively enacted. Deferred tax assets are recognized only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
will be realized. In case of carry forward unabsorbed depreciation and
tax losses, deferred tax assets are recognised only if there is
"virtual certainty" that such deferred tax assets can be realized
against future taxable profits.
(h) Investments:
Long-term Investments are accounted for at cost less any permanent
diminution in value.
(i) Foreign Currency:
Transactions in foreign currencies are accounted for at the exchange
rate prevailing on the date of the transaction. Foreign Currency
monetary assets and liabilities at the year end are translated using
the closing exchange rates. The loss or gain thereon and also on the
exchange differences on the settlement of the foreign currency
transactions during the year are recognized as income or expenses.
(j) Government Grants :
Grants are recognized as capital or revenue depending upon the purpose
and utilization of the proceeds there against. Revenue grants including
subsidy/rebates etc are credited to the Statement of Profit and Loss
under "Other Income" or deducted from the related expenses. Grants
relating to fixed assets are credited to Capital Reserve account or
adjusted in the cost of such assets as the case may be.
(k) Borrowing Costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as the
part of the cost of that asset.
(l) Finance Lease:
Assets acquired on finance leases are capitalised and a corresponding
liability disclosed as lease obligations under "Borrowings". Such
assets are capitalised at fair values or present value of minimum lease
payments, whichever is lower, at the inception of the lease term and
disclosed as leased assets. Rentals paid by the Company are apportioned
between the finance charge and as a reduction of the outstanding
liability. Finance charge reflects a constant periodic rate of interest
of the remaining balance of liability for each period.
(m) Provision for liquidated damages and warranty costs :
a) Provision for liquidated damages in terms of agreement with
customers is made as estimated based on merit and probability of its
occurrence.
b) Product warranty costs are accrued in the year of sale as estimated
based on past experience.
(n) Use of Estimates, Provisions, Contingent Liabilities and Contingent
Assets:
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, and disclosures related to contingent
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognized in
the period in which results are known/ materialized.
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are disclosed by way of notes to accounts.
Contingent assets are neither recognized nor disclosed in the financial
statement.
Mar 31, 2010
1. Basis of Preparation of Financial Statements
The accounts have been prepared under the historical cost convention
and in accordance with the provision of the Companies Act, 1956 and
accounting standards notified vide Companies (Accounting Standards)
Rules, 2006. Accounting policies unless specifically stated to be
otherwise, are consistent and are in consonance with generally accepted
accounting principles.
2. Sales:
Sales (net of returns, etc.) comprise sale of goods which are accounted
for on the basis of despatches within the Financial year and income
from installation charges/job works which are recognized on acceptance
by customers.
3. Employee benefits:
Employee benefits are accrued in the year services are rendered by the
employees.
Contribution to defined contribution schemes such as Provident Fund
etc. are recognized as and when incurred.
Long term employee benefits under defined benefit scheme such as
contribution to gratuity, leave etc. are determined at close of the
financial year at present value of the amount payable using actuarial
valuation techniques.
Actuarial gains and losses are recognised in the year when they arise.
4. Fixed Assets and Depreciation :
a) Fixed Assets are stated at cost less depreciation. Depreciation is
provided on Straight Line Method as indicated in Schedule 12 to the
Accounts. Leasehold land is amortized over the period of lease.
b) In case of revaluation of Fixed Assets, the original cost as written
up by the valuer, is considered in the accounts and the differential
amount is transferred to Capital Reserve.
c) Depreciation on assets revalued is calculated on their respective
book values on Straight Line Method based on useful life either
assessed technically or derived with respect to the rates specified in
Schedule XIV to the Companies Act, 1956. The additional charge of
depreciation on account of revaluation is deducted from the Capital
Reserve and credited to the Profit & Loss Account.
5. Expenditure during Construction Period
Expenditure related to and incurred during implementation of capital
project is included under Capital Work-in-progress and the same is
allocated to the respective Fixed Assets on completion of its
construction / erection and commencement of commercial production.
6. Impairment:
Fixed Assets are reviewed at each balance sheet date for impairment. In
case events and circumstances indicate any impairment, recoverable
amount of the fixed assets is determined. An impairment loss is
recognized whenever the carrying amount of assets either belonging to
Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The
recoverable amount is greater of assetÃs net selling price or its value
in use. An impairment loss is reversed if there has been change in the
recoverable amount and such loss either no longer exists or has
decreased.
7. Inventories:
a) Inventories are valued at the lower of cost or estimated net
realizable value. Cost is determined on first in first out method of
valuation.
b) Cost of raw materials and bought out components are determined on
the basis of first in first out method of valuation.
c) Work-in-progress is valued at direct material cost, direct labour
cost and allocable direct/indirect production overheads. Labour cost
is determined by applying normal labour hour rates on equivalent
completed production hours as estimated by the Technical Department.
d) Finished Goods are valued after considering appropriate portion of
allocable overhead considered relatable to production directly or
indirectly. Allocable overheads have been determined on actual/pro-rata
basis with reference to the aggregate overheads of the Company.
e) Provision is made for slow-moving and obsolete inventories.
8. Taxes on income
Provision for tax is made for current and deferred taxes. Current tax
is provided on the taxable income using the applicable tax rates and
tax laws. Deferred tax assets and liabilities arising on account of
timing differences, which are capable of reversal in subsequent years
are recognised using tax rates and tax laws, which have been enacted or
substantively enacted. Deferred tax assets are recognized only to
the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
will be realized. In case of carry forward unabsorbed depreciation and
tax losses, deferred tax assets are recognised only if there is
Ãvirtual certaintyà that such deferred tax assets can be realized
against future taxable profits.
9. Investments:
Long term Investments are accounted for at cost less any permanent
diminution in value.
10. Foreign Currency:
Transactions in foreign currencies are accounted for at the exchange
rate prevailing on the date of the transaction. Foreign Currency
monetary assets and liabilities at the year end are translated using
the closing exchange rates. The loss or gain thereon and also on the
exchange differences on the settlement of the foreign currency
transactions during the year are recognized as income or expenses.
11. Use of Estimates, Provisions, Contingent Liabilities and
Contingent Assets:
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, and disclosures related to contingent
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognized in
the period in which results are known/materialized.
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are disclosed by way of notes to accounts.
Contingent assets are neither recognized nor disclosed in the financial
statement.
12. Borrowing Costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as the
part of the cost of that asset.
13. Provision for liquidated damages and warranty costs
a) Provision for liquidated damages in terms of agreement with
customers is made as estimated based on merit and probability of its
occurrence.
b) Product warranty costs are accrued in the year of sale as estimated
based on past experience.
14. Finance Lease:
Assets acquired on finance leases are capitalised and a corresponding
liability disclosed as lease obligations under ÃSecured LoansÃ. Such
assets are capitalised at fair values or present value of minimum lease
payments, whichever is lower, at the inception of the lease term and
disclosed as leased assets. Rentals paid by the Company are apportioned
between the finance charge and as a reduction of the outstanding
liability. Finance charge reflects a constant periodic rate of interest
of the remaining balance of liability for each period.
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