Mar 31, 2015
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
i) These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises
mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 ('the Act') read with Rule 7 of the Companies
(Accounts) Rules, 2014, the provisions of the Act (to the extent
notified) and guidelines issued by the Securities and Exchange Board of
India (SEBI). 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.
ii) The Company follows mercantile system of accounting and recognizes
all significant items of income and expenditure on accrual basis.
iii) All income & expenditure having material bearing on the financial
statements are recognized on an accrual basis.
B. USE OF ESTIMATES
The preparation of financial statements in conformity with Indian Rule
GAAP requires judgments, estimates and assumptions to be made that
affect the reported amount of assets and liabilities, disclosure of
contingent liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known/materialized.
C. FIXED ASSETS Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade
discounts and rebates and include amounts added on revaluation, less
accumulated depreciation and impairment loss, if any. The cost of
tangible assets comprises its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working
condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the assets.
Subsequent expenditures related to an item of tangible asset are added
to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
Projects under which assets are not ready for their intended use are
shown as Capital Work-In-Progress.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization/depletion and impairment loss, if
any. The cost comprises purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its working condition
for the intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
intangible assets.
Depreciation
The depreciation on fixed assets has been provided on Written down
Value method over the useful life of assets as prescribed under Part C
of Schedule II of the Companies Act 2013 Depreciation is not provided
on Land.
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal and external
factors. An Impairment loss is recognized wherever the carrying amount
of assets exceeds its recoverable amount. The recoverable amount is the
greater of the assets' net selling price and the value in use. In
assessing value in use the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
The Management based on internal and external technical evaluation,
reassessed the remaining useful life of assets primarily consisting of
Factory Premises from 30 years to 40 years as regards to the useful
life of assets as prescribed under Part C of Schedule II of the
Companies Act 2013. had the Company continued with the useful lives
mentioned in Schedule II, the charge for depreciation for the year
ended March 31, 2015 would have been higher by 131.15 lakhs for assets
held at April 1, 2014.
D. LEASES
As per Accounting Standard 19 "Leases", the disclosures as defined in
the Accounting Standard are given as below:
a) Operating Leases: Rentals are expensed on a straight line basis with
reference to lease terms and other considerations.
b) (i) Finance leases prior to 1st April, 2001: Rentals are expensed
with reference to lease terms and other considerations.
(ii) Finance leases on or after 1st April, 2001: The lower of the fair
value of the assets and present value of the minimum lease rentals is
capitalized as fixed assets with corresponding amount shown as lease
liability. The principal component in the lease rental is adjusted
against the lease liability and the interest component is charged to
Statement of Profit and Loss.
c) However, rentals referred to in (a) or (b) (i) above and the
interest component referred to in (b) (ii) above, pertaining to the
period up to the date of commissioning of the asset are capitalized.
d) All assets given on finance lease are shown as receivables at an
amount equal to net investment in the lease. Initial direct costs in
respect of lease are expensed in the period in which such costs are
incurred. Income from lease assets is accounted by applying the
interest rate implicit in the lease to the net investment.
E. IMPAIRMENTS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
C. FOREIGN CURRENCY TRANSACTIONS
As per Accounting Standard 11 "The Effects of Changes in Foreign
Exchange Rates", the disclosures as defined in the Accounting Standard
are given as below:
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the yearend are
restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the yearend rate and
rate on the date of the contract is recognized as exchange difference
and the premium paid on forward contracts is recognized over the life
of the contract.
c. Non-monetary foreign currency items are carried at cost.
d. In respect of branches, which are integral foreign operations, all
transactions are translated at rates prevailing on the date of
transaction or that approximates the actual rate at the date of
transaction. Branch monetary assets and liabilities are restated at the
year end rates.
e. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Statement of Profit
and Loss, except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
G. INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value,
computed category- wise. Long-term investments are stated at cost.
Provision for diminution in the value of long- term investments is made
only if such a decline is other than temporary.
H. INVENTORIES
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any, except in case of
by-products which are valued at net realizable value. Cost of
inventories comprises of cost of purchase, cost of conversion and other
costs including manufacturing overheads incurred in bringing them to
their respective present location and condition.
Cost of raw materials, process chemicals, stores and spares, packing
materials, trading and other products are determined on weighted
average basis.
I. REVENUE RECOGNITION
Revenue is recognized only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection. Revenue from
operations includes sale of goods, services, service tax, excise duty
and sales during trial run period, adjusted for discounts (net), and
gain/loss on corresponding hedge contracts.
Dividend income is recognized when the right to receive payment is
established.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the interest rate applicable.
J. EMPLOYEE BENEFITS
Short term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognized
as an expense during the period when the employees render the services.
These benefits include performance incentive and compensated absences.
Post-employment benefits
Defined contribution plans.
A defined contribution plan is a post-employment benefit plan under
which the Company pays specified contributions to a separate entity The
Company makes specified monthly contributions towards Provident Fund,
Superannuation Fund and Pension Scheme. The Company's contribution is
recognized as an expense in the Statement of Profit and Loss during the
period in which the employee renders the related service.
Defined benefit plans
The liability in respect of defined benefit plans and other
post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected
to be derived from employees' services.
Actuarial gains and losses in respect of post-employment and other long
term benefits are charged to the Statement of Profit and Loss.
K. BORROWING COSTS
As per Accounting Standard 16 "Borrowing Costs", the disclosures as
defined in the Accounting Standard are given as below:
Borrowing costs include exchange differences arising from foreign
currency borrowings to the extent they are regarded as an adjustment to
the interest cost. Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as
part of the cost of such 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 the Statement of Profit and Loss in the period in which they
are incurred.
As per AS-16: Borrowing Cost Disclosures there is no borrowing cost
incurred in respect of any Qualified Capital Assets as well as no
interest or financial charges incurred on qualifying assets haven't
been capitalized during the year.
L. RESEARCH AND DEVELOPMENT EXPENSES
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are charged to the
Statement of Profit and Loss unless a product's technological
feasibility has been established, in which case such expenditure is
capitalized.
M. CASH FLOW STATEMENT
The Company has prepared the Cash Flow Statement using the indirect
method on compliance with Accounting Standard issued by the Institute
of Chartered Accountants of India (AS-3).
N. TAXATION
As per Accounting Standard 22 "Accounting for Tax on Income", the
disclosures as defined in the Accounting Standard are given as below:
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for
The period and reversal of timing differences of earlier years/period.
Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future income will be available
except that deferred tax assets, in case there are unabsorbed
depreciation or losses, are recognized if there is virtual certainty
that sufficient future taxable income will be available to realize the
same.
A. Consolidate Financial Statement AS - 21
The financial statements of the company including both Garment and
Chemical Division are combined on a line - by - line basis by adding
together the book values of like items of assets, liabilities, income
and expenses, after fully eliminating inter branch transactions in
accordance with Accounting Standard - 21.
A. Consolidate Financial Statement AS - 21
The financial statements of the company including both Garment and
Chemical Division are combined on a line - by - line basis by adding
together the book values of like items of assets, liabilities, income
and expenses, after fully eliminating inter branch transactions in
accordance with Accounting Standard - 21.
Mar 31, 2014
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These financial statements have been prepared to comply with Accounting
Principles Generally accepted in India (Indian GAAP), the Accounting
Standards notified under the Companies (Accounting Standards) Rule,
2006 and the relevant provisions of the Companies Act, 1956.
The financial statements are prepared on accrual basis under the
historical cost convention, except for certain fixed assets which are
carried at revalued amounts. The financial statements are presented in
Indian rupees rounded off to the nearest rupees in Lacs.
B. USE OF ESTIMATES
The preparation of financial statements in conformity with Indian Rule
GAAP requires judgments, estimates and assumptions to be made that
affect the reported amount of assets and liabilities, disclosure of
contingent liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known/materialized.
C. FIXED ASSETS Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade
discounts and rebates and include amounts added on revaluation, less
accumulated depreciation and impairment loss, if any. The cost of
tangible assets comprises its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working
condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the assets.
Subsequent expenditures related to an item of tangible asset are added
to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
Projects under which assets are not ready for their intended use are
shown as Capital Work-In-Progress.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization/depletion and impairment loss, if
any. The cost comprises purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its working condition
for the intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
intangible assets.
Depreciation
Depreciation on the fixed assets added/disposed off/ discarded during
the year has been provided on WDV Basis at the rates specified under
Companies Act, 1956 with reference to the month of addition/
disposal/discarding.
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal and external
factors. An Impairment loss is recognized wherever the carrying amount
of assets exceeds its recoverable amount. The recoverable amount is the
greater of the assets'' net selling price and the value in use. In
assessing value in use the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
D. LEASES
As per Accounting Standard 19 "Leases", the disclosures as defined in
the Accounting Standard are given as below:
a) Operating Leases: Rentals are expensed on a straight line basis with
reference to lease terms and other considerations.
b) (i) Finance leases prior to 1st April, 2001: Rentals are expensed
with reference to lease terms and other
considerations.
(ii) Finance leases on or after 1st April, 2001: The lower of the fair
value of the assets and present value of the minimum lease rentals is
capitalized as fixed assets with corresponding amount shown as lease
liability. The principal component in the lease rental is adjusted
against the lease liability and the interest component is charged to
Statement of Profit and Loss.
c) However, rentals referred to in (a) or (b) (i) above and the
interest component referred to in (b) (ii) above, pertaining to the
period up to the date of commissioning of the asset are capitalized.
d) All assets given on finance lease are shown as receivables at an
amount equal to net investment in the lease. Initial direct costs in
respect of lease are expensed in the period in which such costs are
incurred. Income from lease assets is accounted by applying the
interest rate implicit in the lease to the net investment.
E. IMPAIRMENTS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
F. FOREIGN CURRENCY TRANSACTIONS
As per Accounting Standard 11 "The Effects of Changes in Foreign
Exchange Rates", the disclosures as defined in the Accounting Standard
are given as below:
a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b) Monetary items denominated in foreign currencies at the yearend are
restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the yearend rate and
rate on the date of the contract is recognized as exchange difference
and the premium paid on forward contracts is recognized over the life
of the contract.
c) Non-monetary foreign currency items are carried at cost.
d) In respect of branches, which are integral foreign operations, all
transactions are translated at rates prevailing on the date of
transaction or that approximates the actual rate at the date of
transaction. Branch monetary assets and liabilities are restated at the
yearend rates.
e) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Statement of Profit
and Loss, except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
G. INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value,
computed category-wise. Long-term investments are stated at cost.
Provision for diminution in the value of long-term investments is made
only if such a decline is other than temporary.
H. INVENTORIES
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any, except in case of
by-products which are valued at net realizable value. Cost of
inventories comprises of cost of purchase, cost of conversion and other
costs including manufacturing overheads incurred in bringing them to
their respective present location and condition.
Cost of raw materials, process chemicals, stores and spares, packing
materials, trading and other products are determined on weighted
average basis.
I. REVENUE RECOGNITION
Revenue is recognized only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection. Revenue from
operations includes sale of goods, services, service tax, excise duty
and sales during trial run period, adjusted for discounts (net), and
gain/loss on corresponding hedge contracts.
Dividend income is recognized when the right to receive payment is
established.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the interest rate applicable.
J. EMPLOYEE BENEFITS
Short term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognized
as an expense during the period when the employees render the services.
These benefits include performance incentive and compensated absences.
Post-employment benefits
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under
which the Company pays specified contributions to a separate entity The
Company makes specified monthly contributions towards Provident Fund,
Superannuation Fund and Pension Scheme. The Company''s contribution is
recognized as an expense in the Statement of Profit and Loss during the
period in which the employee renders the related service.
Defined benefit plans
The liability in respect of defined benefit plans and other
post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected
to be derived from employees'' services.
Actuarial gains and losses in respect of post-employment and other long
term benefits are charged to the Statement of Profit and Loss.
K. BORROWING COSTS
As per Accounting Standard 16 "Borrowing Costs", the disclosures as
defined in the Accounting Standard are given as below:
Borrowing costs include exchange differences arising from foreign
currency borrowings to the extent they are regarded as an adjustment to
the interest cost. Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as
part of the cost of such 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 the Statement of Profit and Loss in the period in which they
are incurred.
As per AS-16: Borrowing Cost Disclosures there is no borrowing cost
incurred in respect of any Qualified Capital Assets as well as no
interest or financial charges incurred on qualifying assets haven''t
been capitalized during the year.
L. RESEARCH AND DEVELOPMENT EXPENSES
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are charged to the
Statement of Profit and Loss unless a product''s technological
feasibility has been established, in which case such expenditure is
capitalized.
M. CASH FLOW STATEMENT
The Company has prepared the Cash Flow Statement using the indirect
method on compliance with Accounting Standard issued by the Institute
of Chartered Accountants of India (AS-3).
N. TAXATION
As per Accounting Standard 22 "Accounting for Tax on Income", the
disclosures as defined in the Accounting Standard are given as below:
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for the period and reversal of timing differences of earlier
years/period. Deferred tax assets are recognized only to the extent
that there is a reasonable certainty that sufficient future income will
be available except that deferred tax assets, in case there are
unabsorbed depreciation or losses, are recognized if there is virtual
certainty that sufficient future taxable income will be available to
realize the same.
Mar 31, 2012
1. Basis of Preparation of financial statement: -
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted principles prevalent in India.
Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
All income and expenditure having material bearing on the financial
statement are recognized on an accrual basis.
2. Use of Estimate: -
The presentation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of asset and
liabilities on the date of financial statement and the reported amount
of revenue and expenses during the relevant period. The estimates are
made to the best of management's ability considering all necessary
information. Differences, if any, between actual result and estimate
are recognized in the period in which results are ascertained.
Statement of significant Accounting policies
3. Fixed Assets and Depreciation: -
a) Fixed assets are stated at their original cost (net of CENVAT /
Value Added Tax) including freight and other incidental expenses
related to acquisition and installation of the concerned assets less
accumulated depreciation and impairment losses if any.
b) Depreciation on the fixed assets added/disposed off/ discarded
during the year has been provided on WDV Basis at the rates specified
under Companies Act, 1956 with reference to the month of addition/
disposal/discarding.
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal and external
factors. An impairment loss is recognized wherever the carrying amount
of assets exceeds its recoverable amount. The recoverable amount is the
greater of the assets' net selling price and the value in use. In
assessing value in use the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
4. Inventories: -
i. Raw Materials are valued at cost or net, realizable value whichever
is lower.
ii. Semi Finished Goods (Work in progress) are valued at cost.
iii. Finished Goods:
Manufactured goods are valued at cost or net realisable value whichever
is lower. Cost includes cost of raw materials used and all the related
overhead expenses. Traded Goods are valued at cost or net realisable
value whichever is lower. Cost is determined by using the First in
First out (FIFO) method.
5. Investments: -
Investments that are readily realizable and intended to be held for not
more than a year are classified as Current Investments. All other
Investments are classified as Long term Investments. Current
Investments are stated at lower of cost and market rate on an
individual investment basis. Long term investments are considered "at
costà on individual investment basis, unless there is a decline other
than temporary in the value, in which case adequate provision is made
against such diminution in the value of investments.
6. Recognition of Income and Expenditure:-
Sales are recognized when goods are supplied and are recorded net of
rebates, Sales Tax, Expenses are accounted for on accrual basis and
provision is made for all known losses and expenses.
7. Employee Benefits:-
Contributions to defined contribution schemes such as provident fund
are charged to profit and loss account as incurred. Gratuity Act is not
applicable to the Company however provision for Gratuity is made on the
basis of Valuation done by Actuary provision and for Leave encashment
payable to the employees provision is not made as the same is accounted
on cash basis.
8. Miscellaneous Expenditure: -
Preliminary expenses have been amortized over a period of five years.
9. Foreign Currency Transaction:-
No Foreign Currency Transaction had taken place during the year.
10. Taxation :-
Provision for current tax is made based on the tax payable under the
current provisions of the tax laws applicable in the jurisdiction where
in the income is assessable.
Deferred tax expenses or benefit is recognized on timing differences
being the difference between taxable income and accounting income that
arises in one period and are capable of reversal in one or more
subsequent periods. Deferred Tax assets and liabilities are accounted
for, using the tax rates and tax laws applicable as on the Balance
Sheet date.
11. Borrowing cost:
Borrowing cost attribution to acquisition, construction or production
or qualified assets are capitalized as part of the cost of that asset,
till the period in which the asset is ready for used. Other borrowing
costs are recognized as an expense in the period in which these are
incurred.
12. Use of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual result and estimates are recognized in the period in
which the results are known/ materialized.
13. Cash Flow Statement
The Company has prepared the Cash Flow Statement using the Indirect
Method in compliance with Accounting Standard issued by The Institute
of Chartered Accountants of India (AS-3).
14. Provision, contingent liabilities and contingent assets
Provision are recognized when the company has a present and legal or
constructive obligation as a result of past event, it is problem that
an outflow of resources will be required to settle the obligation and a
reliable estimate of the amount of obligation can be made. Provisions
are determined based on test estimated required to settle the
obligation at the balance sheet date. Provision are reviewed at each
balance sheet date and adjusted to reflect current best estimate. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may but probably will not
require an outflow of resources. When there is possible obligation or
present obligation in respect of which like hood of outflow of resource
is remote, no provision or disclosure is made.
15. Contingencies
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty are treated as contingent and
disclosed by way of Notes to Accounts.
Mar 31, 2010
A) Basis of Preparation of financial statements.
i. The Financial Statement are Prepared under the historical cost
convention on an accrual basis in accordance with the generally
accepted accounting principles prevalent in India.
ii. According policies not specifically referred to otherwise are in
consonance with prudent accounting princoles.
iii. All income and expenditure having material bearing on the
financial statements are recognized on an accrual basis.
b) Use of Estimate
The presentation of financial statement requires estimates and
assumptions to be made that affect the reported amounts of asset and
liabilities on the date of financial statement and the reported amounts
of revenue and expenses during the reporting period. The estimate are
made to the best of the managements ability- considering all necessary
information. Differences, if any, between actual result and estimate
are recognized in the period in which the results are ascertained.
II. Statement of significant Accounting policies.
a Fixed Assets and Depreciation:
Fixed Assets are stated at cost net of CENVAT / values Added Tex less
accumulated Depreciation and impairment loss if any. The Company
capitalized all costs relating to the acquisition and installation of
fixed assets. Depreciation on the fixed assets added disposed off/
discarded during the year has been provided on WDV Basis at the rates
specified under Companies Act, 1956 with reference to the month of
addition disposal discarding. Depreciation for the F. Year 2005-06.
2006-07. 2007-08 & 2008-09 have been charged as per the rates specified
by Income Tax Act 1961 in their respective years . During the current
Financial Year we have recalculated the depreciation for all the above
five financial years as per the rates specified by Companies Act 1956.
This has resulted in write back of depreciation of Rs 9.98.393/-
b Inventories:
Inventory of goods is valued at Cost or Market value whichever is less.
Cost is ascertained on first in first out (FIFO) basis and includes all
applicable charges and duties.
Raw Material, packing material, and store & consumption are valued at
cost.
Works in process are valued at raw material cost conversion cost.
Finished goods are valued at cost or net realizable value whichever is
lower.
c Investment:
Long term investments are stated at cost and provision for diminution
in value in the value thereof is made to recognize a decline of a
permanent nature Current investment is carried at the lower of cost and
fair value as at the balance sheet date.
d Recognition Of Income and Expenditure:
Sale are recognized when goods are supplied and are recorded net of
Rebares. Sales Tax, Expenses are accounted for on accrual basis and
provision is made for all known losses and expenses.
e Contribution to provident fund:
Contribution to provident Fund is made at predetermined rate and
charges to the profit and loss Account.
f Employees Retirement Benefits:
Liability in respect of Gratuity is recognized in respect of eligible
employees in term of the Payment of Gratuity Act, 1972.
g Foreign Currency Transactions:
No foreign Currency Transaction taken place during the year.
h Taxation:
Income tax expenses comprises of current & deferred Income Tax .
Current taxes
Provision for current income tax is recognized in accordance with the
proision of Indian Income tax Act 1961. and annually based on the tax
liability after credut for allowances and exemption.
Deferred Taxes
Deferred Tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
Tax is recognized at the , Balance Sheet date, subject to the
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
i Borrowing cost:
Borrowing costs attribution to acquisition, construction or production
or qualifying assets are capitalized as part of the cast of that assel
till the period in which the asset is ready for use. Other borrowing
costs are recognized as an expense in the period in which these are
incurred.
j Provision, Contingent liabilities and Contingent Assets:
Provision are recognized when the Company has a present legal or
constructive obligation as a result of past event, it is problem that
an outflow of resources will be required to settle the obligation, and
a reliable estimate of the amount of the obligation can be made.
Provisions are determined based on best estimated required to settle
the obligation at the balance sheet date. Provision are reviewed at
each balance sheet date and adjusted to reflect current best estimate.
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 resource. When there is a possible
obligation or a present obligation in respect of which the like hood of
outflow of resources is remote, no provision or disclosure is made.
k Impairment of Assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of asset. If such
recoverable amount of the assets or the recoverable amount of the cash
generating unit to which the asset belong is less then its carrying
amount. The carrying amount is reduced to its recoverable amount. This
reduction is treated as on impairment has and is reangnired in the
pront and loss account. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.