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Accounting Policies of Superhouse Ltd. Company

Mar 31, 2015

1.1 Basis of Preparation of Financial Statements :

The financial statements are prepared under the historical cost convention, except for certain fixed assets which were revalued, on accrual basis of accounting in accordance with the applicable Accounting Standards as prescribed under the relevant provisions of the Companies Act, 2013 and Generally Accepted Accounting Principles (GAAP) in India.

The financial statements are prepared under the historical cost convention, except for certain fixed assets which were revalued, on accrual basis of accounting in accordance with the applicable Accounting Standards as prescribed under the relevant provisions of the Companies Act, 2013 and Generally Accepted Accounting Principles (GAAP) in India.

1.2 Use of Estimates :

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

1.3 Fixed Assets :

Fixed Assets, other than those revalued, are stated at their cost of acquisition or construction as the case may be and including all related acquisition/installation expenses and borrowing cost as per Accounting Standard (AS) 16. Subsidy received on Fixed Assets is credited to the cost of respective fixed assets. Assets revalued are stated at their revalued amount. Cost/revalued amount so ascertained is adjusted for accumulated depreciation/amortization and provision for impairment. Intangible Assets are stated at cost of acquisition less accumulated amortisation/impairment.

1.4 Depreciation

Depreciation on Fixed Assets is provided on 'Straight Line Method' in accordance with the provisions of Schedule II to the Companies Act, 2013 except for leasehold land and intangible assets. Leasehold Land is amortised over the period of lease. Depreciation attributable to appreciation due to revaluation of fixed assets (other than leasehold land) is provided over the remaining useful life of the asset in accordance with Schedule II to the Companies Act, 2013 and equivalent amount is withdrawn from Revaluation Reserve and credited to Statement of Profit and Loss. In case of impaired assets, depreciation is charged on the adjusted cost net of impairment. However the assets costing below Rs. 5000 are depreciated fully in the year of addition. Intangible Assets are amortised over a period of five years.

1.5 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 asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the "carrying amount", the carrying amount is reduced to its recoverable amount. If at the Balance Sheet date there is an indication that a previously assessed / impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount.

1.6 Capital work in progress :

Capital work in Progress includes, cost of assets not yet commissioned, borrowing cost and incidental expenses during construction period.

1.7 Investments :

Long term Investments (non current) are stated at cost of acquisition less provision for diminution in value, other than temporary. Current Investments are stated at lower of cost and market/fair value.

1.8 Inventories :

Raw materials, Chemicals, Components & Spares parts and Stock-in-Trade are valued at lower of cost, arrived at on FIFO method (net of CENVAT) and net realisable value. Finished Goods (including stock at port or in transit) and Work in Process are valued at lower of cost and net realisable value. Saleable waste / scrap is valued at estimated realisable value. Inter-unit goods transfers are valued at lower of their respective transfer price and net realisable value. Import entitlements/Licenses are valued at estimated net realizable / utilization value.

1.9 Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognised in the accounts.

1.10 Revenue Recognition

i) Sales are inclusive of excise duty but net of sales tax, returns and discounts. Domestic sales are recognised on dispatch of goods to customers. Export sales are recognised on the issuance of Bill of Lading/ Airway Bill by the carrier.

ii) Revenue is accounted for on accrual basis when its collection or receipt is reasonably certain.

iii) All expenses are accounted for on accrual basis. However the claims are recognised on settlement.

1.11 Government Grants

Grants received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter's contribution are credited to capital reserve. Revenue grants are recognized in the Statement of Profit and Loss in accordance with the related scheme and in the period in which those are accrued.

1.12 Foreign Currency Translations

i) All foreign currency transactions are recorded at the rates prevailing on the date of the transaction.

ii) All foreign currency assets and liabilities other than investments are restated/reported at the closing exchange rate prevailing on the date of Balance Sheet.

iii) Gains and losses arising out of fluctuations in the exchange rates are recognised in Statement of Profit and Loss.

iv) Investments in wholly owned subsidiaries are carried in Balance sheet at the rates prevailing on the dates of transactions.

1.13 Accounting for Retirement Benefits

i) Provident Fund & Family Pension (PF & FPF) and Employees State Insurance (ESI) are defined contribution obligations and company's contributions to PF and ESI are charged to Statement of Profit and Loss.

ii) Gratuity is a defined benefit obligation. The company has created a trust with Life Insurance Corporation of India under the Group Gratuity Scheme in which actuarial valuation is carried out annually in the month of March. The amount required to be contributed to meet the accrued liability as per the actuarial valuation is charged to Statement of Profit and Loss.

iii) Leave encashment is a defined benefit obligation and provision for the same is done on the basis of leaves accrued as at the end of the year.

1.14 Excise Duty :

Excise Duty is accounted for as and when paid on clearance of goods from bonded premises. No provision is made for Excise Duty in respect of finished products lying in bonded premises since major sales comprises of Export Sales.

1.15 Borrowing Cost :

Interest and other cost in connection with the borrowing of funds are capitalized up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Statement of Profit and Loss. Borrowing Cost include exchange fluctuation to the extent regarded as adjustment to interest cost.

1.16 Taxation :

Provision for Income Tax is made after considering the various deductions/benefits admissible under the Income Tax Act, 1961. In accordance with AS 22 on 'Accounting for Taxes on Income', the company has recognised Deferred Tax arising out of timing differences between taxable income and accounting income and quantified the same using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

1.17 Prior Period Items :

Prior period items, if material, are disclosed separately.

1.18 Cash Flow Statement :

Cash flow statement is prepared in accordance with the "indirect method" prescribed in AS-3 on Cash Flow Statement.

2.2 Term/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3.1 The Company (Accounting Standards) Second Amendment Rules, 2011 has amended the provisions of AS-11 relating to "The effect of the Change in Foreign Exchange Rates" vide notification dated December 29, 2011. In terms of the amendments, the company has opted to carry over the Long Term Monetary Gain/Loss and amortise the same over balance period of such long term asset/liability.

4.1 Indian rupee & foreign currency loans from bank(s) are primarily secured by equitable mortgage/hypothecation of specific fixed assets. Also secured collaterally by equitable mortgage of company's specific land and building. Further secured by personal guarantee of promoter director(s) of the company. External Commercial Borrowing (ECB) carries a non disposable undertaking of the Shares of the acquired Wholly Owned Subsidiaries (WOS).

4.4 Long term borrowings repayable within twelve months from the reporting date, as per sanctioned terms, are reduced from long term borrowings and disclosed separately as Current Maturities of Long Term Borrowings in Note 8, Other Current Liabilities.

4.5 Vehicle loans are secured against vehicle financed.

@ Deferred Tax Assets has been recognised and carried forward only to the extent there is virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realised. Deferred Tax Assets and Deferred Tax Liabilities have been set off in accordance with clause 29 of AS 22 .

6.1 Working Capital Loans are primarily secured by hypothecation of present and future stock of raw materials, stock in process, finished goods, stores and spares, book debts, outstanding monies, receivable claims, bills and materials in transit. Also secured collaterally by equitable mortgage of company's specific factory land and building. Further secured by personal guarantee of promoter director(s) of the company.

7.1 The company has requested confirmation from Suppliers regarding their registration (filling of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the company there was no amount (principal and/or interest) due to any micro/small enterprises (SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of Section 16 of the Act.

In respect of items which are purchased both from indigenous and imported sources, the identity of individual items consumed cannot be established but segregation of consumption between imported and indigenous sources has been made on a reasonable approximation determined from the Company's records.


Mar 31, 2014

The accompanying notes form an integral part of these financial statements. As per our report of even date

1.1 Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, except for certain fixed assets which were revalued, on accrual basis of accounting in accordance with the applicable Accounting Standards as prescribed by the Companies (Accounting Standards) Rules, 2006 (AS), Generally Accepted Accounting Principles (GAAP) in India and the relevant provisions of the Companies Act, 1956 (the Act).

1.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

1.3 Fixed Assets

Fixed Assets, other than those revalued, are stated at their cost of acquisition or construction as the case may be and including all related acquisition/installation expenses and borrowing cost as per Accounting Standard (AS) 16. Subsidy received on Fixed Assets is credited to the cost of respective fixed assets. Assets revalued are stated at their revalued amount. Cost/revalued amount so ascertained is adjusted for accumulated depreciation/amortization and provision for impairment. Intangible Assets are stated at cost of acquisition less accumulated amortisation/impairment.

1.4 Depreciation

Depreciation on Fixed Assets is provided on ''Straight Line Method'' in accordance with the provisions of Schedule XIV to the Companies Act, 1956 except for leasehold land, intangible assets and Shoe moulds. Leasehold Land is amortised over the period of lease. Shoe Moulds are depreciated over economic life of the asset or three years whichever is earlier. Depreciation attributable to appreciation due to revaluation of fixed assets (other than leasehold land) is provided according to the rates prescribed in Schedule XIV to the Companies Act, 1956 and equivalent amount is withdrawn from Revaluation Reserve and credited to Profit and Loss Account. In case of impaired assets, depreciation is charged on the adjusted cost net of impairment. Intangible Assets are amortised over a period of five years.

1.5 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 asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the "carrying amount", the carrying amount is reduced to its recoverable amount. If at the Balance Sheet date there is an indication that a previously assessed / impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount.

1.6 Capital work in progress

Capital work in Progress includes, cost of assets not yet commissioned, borrowing cost and incidental expenses during construction period.

1.7 Investments

Long term Investments (non current) are stated at cost of acquisition less provision for diminution in value, other than temporary. Current Investments are stated as lower of cost and market/fair value.

1.8 Inventories

Raw materials, Chemicals, Components & Spares parts are valued at lower of cost, arrived at on FIFO method (net of CENVAT) or net realisable value. Finished Goods (including stock at port or in transit) and Work in Process are valued at lower of cost or net realisable value. Saleable waste / scrap is valued at estimated realisable value. Inter-unit goods transfers are valued at lower of their respective transfer price or net realisable value. Import entitlements/Licenses are valued at estimated net realizable / utilization value.

1.9 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognised in the accounts.

1.10 Revenue Recognition

i) Sales are inclusive of excise duty but net of sales tax, returns and discounts. Domestic sales are recognised on dispatch of goods to customers. Export sales

are recognised on the issuance of Bill of Lading/ Airway Bill by the carrier. ii) Revenue is accounted for on accrual basis when its collection or receipt is reasonably certain. iii) All expenses are accounted for on accrual basis.

1.11 Government Grants

Grants received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter''s contribution are credited to capital reserve. Revenue grants are recognized in the Statement of Profit and Loss in accordance with the related scheme and in the period in which those are accrued.

1.12 Foreign Currency Translations

i) All foreign currency transactions are recorded at the rates prevailing on the date of the transaction.

ii) All foreign currency assets and liabilities other than investments are restated/reported at the closing exchange rate prevailing on the date of Balance Sheet.

iii) Gains and losses arising out of fluctuations in the exchange rates are recognised in Statement of Profit and Loss.

iv) Investments in wholly owned subsidiaries are carried in Balance sheet at the rates prevailing on the dates of transactions.

1.13 Accounting for Retirement Benefits

i) Provident Fund & Family Pension (PF & FPF) and Employees State Insurance (ESI) are defined contribution obligations and company''s contributions to PF

and ESI are charged to Statement of Profit and Loss. ii) Gratuity is a defined benefit obligation. The company has created a trust with Life Insurance Corporation of India under the Group Gratuity Scheme in which

actuarial valuation is carried out annually in the month of March. The amount required to be contributed to meet the accrued liability as per the actuarial

valuation is charged to Statement of Profit and Loss. iii) Leave encashment is a defined benefit obligation and provision for the same is done on the basis of leaves accrued as at the end of the year.

1.14 Excise Duty

Excise Duty is accounted for as and when paid on clearance of goods from bonded premises. No provision is made for Excise Duty in respect of finished products lying in bonded premises since major sales comprises of Export Sales.

1.15 Borrowing Cost

Interest and other cost in connection with the borrowing of funds are capitalized up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Statement of Profit and Loss.

1.16 Taxation

Provision for Income Tax is made after considering the various deductions/benefits admissible under the Income Tax Act, 1961. In accordance with AS 22 on ''Accounting for Taxes on Income'', the company has recognised Deferred Tax arising out of timing differences between taxable income and accounting income and quantified the same using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

1.17 Prior Period Items

Prior period items, if material, are disclosed separately.

1.18 Cash Flow Statement

Cash flow statement is prepared in accordance with the "indirect method" prescribed in AS-3 on Cash Flow Statement.

2.2 Term/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.3 Bonus Shares/Shares issued for consideration other than cash and Buy Back of shares NIL (NIL) during preceding five years:

2.4 Shares held by holding/ultimate holding company and/or their subsidiaries/associates: NIL (NIL)

2.5 Details of shareholders holding more than 5% shares in the company

4.1 Indian rupee & foreign currency loans from bank(s) are primarily secured by equitable mortgage/hypothecation of specific fixed assets. Also secured collaterally by equitable mortgage of company''s specific land and building. Further secured by personal guarantee of promoter director(s) of the company. External Commercial Borrowing (ECB) carries a non dispos- able undertaking of the Shares of the acquired Wholly Owned Subsidiaries (WOS).

4.2 These Loans are repayable over a period upto 6 years.

4.3 Continuing default in respect of principal and or interest Nil Nil

4.4 Long term borrowings repayable within twelve months from the reporting date, as per sanctioned terms, are reduced from long term borrowings and disclosed separately as Current Maturities of Long term Borrowings in Note 8, Other Current Liabilities.

4.5 Secured against vehicle finanaced.

@Deferred Ta x Assets has been recognised and carried forward only to the extent there is virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realised. Deferred Tax Assets and Deferred Tax Liabilities have been set off in accordance with clause 29 of AS 22 .

6.1 Working Capital Loans are primarily secured by hypothecation of present and future stock of raw materials, stock in process, finished goods, stores and spares, book debts, outstanding monies, receivable claims, bills and materials in transit. Also secured collaterally by equitable mortgage of company''s specific factory land and building. Further secured by personal guarantee of promoter director(s) of the company.

7.1 The company has requested confirmation from Suppliers regarding their registration (filling of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the company there was no amount (principal and/or interest) due to any micro/ small enterprises (SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of Section 16 of the Act.

10.1 Building and Plant and Machinery include Gross Block Rs. 1,79,88,995 (Rs. 1,79,88,995) and Rs. 10,07,184 (Rs. 10,07,184) respectively and Net block Rs. 1,45,45,039 (Rs. 1,48,38,260) and Rs. 6,22,345 (Rs. 6,55,985) respectively in respect of expenditure incurred on capital assets, ownership whereof does not vest with the company.

10.2 Certain Fixed Assets of the Company were revalued by the Approved Valuer, on the basis of fair market value as on 31.12.1994. Accordingly value of Fixed Assets of the Company was increased by Rs. 15,59,29,935 (Leasehold Land Rs. 3,09,83,028, Factory Building Rs. 6,40,82,953 and Plant and Machinery Rs. 6,08,63,954) and the corresponding amount was credited to the Revaluation Reserve.

10.3 Subsidy amounting to Rs. 13,39,827 (Rs. 5,50,000) received during the year under IDLS Scheme of the Government of India has been adjusted/credited to cost of respective machines.

11.1 The Company (Accounting Standards) Second Amendment Rules, 2011 has amended the provisions of AS-11 relating to "The effect of the Change in Foreign Exchange Rates" vide notification dated December 29, 2011. In terms of the amendments, the company has opted to carry over the Long Term Monetary Loss and amortise the same over balance period of such long term asset/liability.

In respect of items which are purchased both from indigenous and imported sources, the identity of individual items consumed cannot be established but segregation of consumption between imported and indigenous sources has been made on a reasonable approximation determined from the Company''s records.


Mar 31, 2013

1.1 Basis of Preparation of Financial Statements : The financial statements are prepared under the historical cost convention, except for certain fixed assets which were revalued, on accrual basis of accounting in accordance with the applicable Accounting Standards as prescribed by the Companies (Accounting Standards) Rules, 2006 (AS), Generally Accepted Accounting Principles (GAAP) in India and the relevant provisions of the Companies Act, 1956 (the Act).

1.2 Use of Estimates : The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

1.3 Fixed Assets : Fixed Assets, other than those revalued, are stated at their cost of acquisition or construction as the case may be and including all related acquisition/installation expenses and borrowing cost as per Accounting Standard (AS) 16. Subsidy received on Fixed Assets is credited to the cost of respective fixed assets. Assets revalued are stated at their revalued amount. Cost/revalued amount so ascertained is adjusted for accumulated depreciation/amortization and provision for impairment. Intangible Assets are stated at cost of acquisition less accumulated amortisation/impairment.

1.4 Depreciation : Depreciation on Fixed Assets is provided on ‘Straight Line Method’ in accordance with the provisions of Schedule XIV to the Companies Act, 1956 except for leasehold land, intangible assets and Shoe moulds. Leasehold Land is amortised over the period of lease. Shoe Moulds are depreciated over economic life of the asset or three years whichever is earlier. Depreciation attributable to appreciation due to revaluation of fixed assets (other than leasehold land) is provided according to the rates prescribed in Schedule XIV to the Companies Act, 1956 and equivalent amount is withdrawn from Revaluation Reserve and credited to Profit and Loss Account. In case of impaired assets, depreciation is charged on the adjusted cost net of impairment. Intangible Assets are amortised over a period of five years.

1.5 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 asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the "carrying amount", the carrying amount is reduced to its recoverable amount. If at the Balance Sheet date there is an indication that a previously assessed / impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount.

1.6 Capital work in progress : Capital work in Progress includes, cost of assets not yet commissioned, borrowing cost and incidental expenses during construction period.

1.7 Investments : Long term Investments (non current) are stated at cost of acquisition less provision for diminution in value, other than temporary. Current Investments are stated as lower of cost and market/fair value.

1.8 Inventories : Raw materials, Chemicals, Components & Spares parts are valued at lower of cost, arrived at on FIFO method (net of CENVAT) or net realisable value. Finished Goods (including stock at port or in transit) and Work in Process are valued at lower of cost or net realisable value. Saleable waste / scrap is valued at estimated realisable value. Inter-unit goods transfers are valued at lower of their respective transfer price or net realisable value. Import entitlements/Licenses are valued at estimated net realizable / utilization value.

1.9 Provisions, Contingent Liabilities and Contingent Assets : Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognised in the accounts.

1.10 Revenue Recognition

i) Sales are inclusive of excise duty but net of sales tax, returns and discounts. Domestic sales are recognised on dispatch of goods to customers. Export sales are recognised on the issuance of Bill of Lading/ Airway Bill by the carrier. ii) Revenue is accounted for on accrual basis when its collection or receipt is reasonably certain. iii) All expenses are accounted for on accrual basis.

1.11 Government Grants : Grants received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter''s contribution are credited to capital reserve. Revenue grants are recognized in the Statement of Profit and Loss in accordance with the related scheme and in the period in which those are accrued.

1.12 Foreign Currency Translations

i) All foreign currency transactions are recorded at the rates prevailing on the date of the transaction.

ii) All foreign currency assets and liabilities other than investments are restated/reported at the closing exchange rate prevailing on the date of Balance Sheet. iii) Gains and losses arising out of fluctuations in the exchange rates are recognised in Statement of Profit and Loss. iv) Investments in wholly owned subsidiaries are carried in Balance sheet at the rates prevailing on the dates of transactions.

1.13 Accounting for Retirement Benefits

i) Provident Fund & Family Pension (PF & FPF) and Employees State Insurance (ESI) are defined contribution obligations and company''s contributions to PF and ESI are charged to Statement of Profit and Loss. ii) Gratuity is a defined benefit obligation. The company has created a trust with Life Insurance Corporation of India under the Group Gratuity Scheme in which actuarial valuation is carried out annually in the month of March. The amount required to be contributed o meet the accrued liability as per the actuarial valuation is charged to Statement of Profit and Loss. iii) Leave encashment is a defined benefit obligation and provision for the same is done on the basis of leaves accrued as at the end of the year.

1.14 Excise Duty : Excise Duty is accounted for as and when paid on clearance of goods from bonded premises. No provision is made for Excise Duty in respect of finished products lying in bonded premises since major sales comprises of Export Sales.

1.15 Borrowing Cost : Interest and other cost in connection with the borrowing of funds are capitalized up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Statement of Profit and Loss.

1.16 Taxation : Provision for Income Tax is made after considering the various deductions/benefits admissible under the Income Ta x Act, 1961. In accordance with AS 22 on "Accounting for Taxes on Income", the company has recognised Deferred Tax arising out of timing differences between taxable income and accounting income and quantified the same using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

1.17 Prior Period Items : Prior period items, if material, are disclosed separately.

1.18 Cash Flow Statement : Cash flow statement is prepared in accordance with the "indirect method" prescribed in AS-3 on Cash Flow Statement.


Mar 31, 2012

1.1 Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, except for certain fixed assets which were revalued, on accrual basis of accounting in accordance with the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), generally accepted accounting principles (GAAP) in India and the relevant provisions of the Companies Act, 1956.

1.2 Use of Estimates

The preparation of financial statements inconformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3 Fixed Assets

Fixed Assets, other than those revalued, are stated at their cost of acquisition or construction as the case may be and including all related acquisition/installation expenses and borrowing cost as per Accounting Standard (AS) 16. Subsidy received on Fixed Assets is credited to the cost of respective fixed assets. Assets revalued are stated at their revalued amount. Cost/revalued amount so ascertained is adjusted for accumulated depreciation/amortization and provision for impairment. Intangible Assets are stated at cost of acquisition less accumulated amortization/impairment.

1.4 Depreciation

Depreciation on Fixed Assets is provided on 'Straight Line Method' in accordance with the provisions of Schedule XIV to the Companies Act, 1956. Leasehold Land is amortized over the period of lease. Depreciation attributable to appreciate ion due to revaluation of fixed assets (other than leasehold land) is provided according to the rates prescribed in Schedule XIV to the Companies Act, 1956 and equivalent amount is withdrawn from Revaluation Reserve and credited to Profit and Loss Account. In case of impaired assets, depreciation is charged on the adjusted cost net of impairment. Intangible Assets are amortised over a period of five years.

1.5 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 asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the "carrying amount", the carrying amount is reduced to its recoverable amount. If at the Balance Sheet date there is an indication that a previously assessed / impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount.

1.6 Capital work in progress

Capital work in Progress includes, cost of assets not yet commissioned, borrowing cost and incidental expenses during construction period.

1.7 Investments

Investments are stated at cost of acquisition less provision for diminution in value, other than temporary, of long term Investments.

1.8 Inventories

Raw materials, Chemicals, Components & Spares parts are valued at lower of cost, arrived at on FIFO method (net of CENVAT) or net realizable value. Finished Goods (including stock at port or in transit) and Work in Process are valued at lower of cost or net realizable value. Saleable waste / scrap is valued at estimated realizable value. Inter-unit goods transfers are valued at lower of their respective transfer price or net realizable value. Import entitlements/Licenses are valued at estimated net realizable / utilization value.

1.9 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognized in the accounts.

1.10 Revenue Recognition

i) Sales are inclusive of excise duty but net of sales tax, returns and discounts. Domestic sales are recognized on dispatch of goods to customers. Export sales are recognized on the issuance of Bill of Lading/ Airway Bill by the carrier.

ii) All other expenses and income are accounted for on accrual basis.

1.11 Government Grants

Grants received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter's contribution are credited to capital reserve. Revenue grants are recognized in the Profit and Loss Account in accordance with the related scheme and in the period in which there are accrued.

1.12 Foreign Currency Translations

i) All foreign currency transactions are recorded at the rates prevailing on the date of the transaction.

ii) All foreign currency assets and liabilities other than investments are restated / reported at the closing exchange rate prevailing on the date of Balance Sheet.

iii) The premium or discount on Forward Exchange Contract is amortized on a straight line method over the period of contract.

iv) Gains and losses arising out of fluctuations in the exchange rates are recognized in Profit and Loss Account.

v) Investments in wholly owned subsidiaries are carried in Balance sheet at the rates prevailing on the dates of transactions.

1.13 Overseas Office

i) Revenue items except opening & closing inventory and depreciation: at average exchange rate.

ii) Fixed Assets and Depreciation: at exchange rate prevalent at the time of acquisition of the assets.

iii) Current Assets and Current Liabilities: at the closing exchange rate prevalent on the date of Balance Sheet.

iv) The exchange difference resulting from the translations of items in the financial statements of foreign branch are recognized as income or expense as the case may be.

1.14 Accounting for Retirement Benefits

i) Company's contributions to Provident Fund are charged to Profit and Loss Account.

ii) The company has created a trust with Life Insurance Corporation of India under the Group Gratuity Scheme in which actuarial valuation is carried out annually in the month of March. The amount required to be contributed to meet the accrued liability as per the actuarial valuation is charged to Profit and Loss Account.

iii) Provision for leave encashment is done on the basis of leaves accrued as at the end of the year.

1.15 Excise Duty

Excise Duty is accounted for as and when paid on clearance of goods from bonded premises. No provision is made for excise Duty in respect of finished products lying in bonded premises since major sales comprises of Export Sales.

1.16 Borrowing Cost

Interest and other cost in connection with the borrowing of funds are capitalized up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

1.17 Taxation

Provision for Income Tax is made after considering the various deductions/benefits admissible under the Income Tax Act, 1961. In accordance with AS 22 'Accounting for Taxes on Income' issued by ICAI, the company has recognized Deferred Tax arising out of timing differences between taxable income and accounting income and quantified the same using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

1.18 Prior Period Items

Prior period items, if material, are disclosed separately.


Mar 31, 2011

1. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), generally accepted accounting principles (GAAP) and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements inconformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

3. Fixed Assets

Fixed Assets, other than those revalued, are stated at their cost of acquisition or construction as the case may be, and including all related acquisition/installation expenses and borrowing cost as per Accounting Standard (AS) 16. Subsidy received on Fixed Assets is credited to the cost of respective fixed assets. Assets revalued are stated at their revalued amount. Cost/revalued amount so ascertained is adjusted for accumulated depreciation/amortization and provision for impair- ment.

4. Depreciation

Depreciation on Fixed Assets is provided on 'Straight Line Method' in accordance with the provi- sions of Schedule XIV to the Companies Act, 1956. Leasehold Land is amortised over the period of lease. Depreciation attributable to appreciation due to revaluation of fixed assets (other than leasehold land) is provided according to the rates prescribed in Schedule XIV to the Companies Act, 1956 and equivalent amount is withdrawn from Revaluation Reserve and credited to Profit and Loss Account. In case of impaired assets, depreciation is charged on the adjusted cost net of impairment.

5. 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 asset or the recoverable amount of the cash generat- ing unit to which the asset belongs is less than the "carrying amount", the carrying amount is reduced to its recoverable amount. If at the Balance Sheet date there is an indication that a previously assessed / impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount.

6. Capital work in progress

Capital work in Progress includes, cost of assets not yet commissioned, borrowing cost and inci- dental expenses during construction period.

7. Investments

Investments are stated at cost of acquisition less provision for diminution in value of quoted In- vestments.

8. Inventories

Raw materials, Chemicals, Components & Spares parts are valued at lower of cost, arrived at on FIFO method (net of CENVAT) or net realisable value. Finished Goods (including stock at port or in transit) and Work in Process are valued at lower of cost or net realisable value. Saleable waste/ scrap is valued at estimated realisable value. Inter unit goods transfers are valued at lower of their respective transfer price or net realisable value. Import entitlements/ Licenses are valued at estimated net realizable/utilization value.

9. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognised in the accounts.

10. Revenue Recognition

a) Sales are inclusive of excise duty but net of sales tax, returns and discounts. Domestic sales are recognised on dispatch of goods to customers. Export sales are recognised on the issu- ance of Bill of Lading/ Airway Bill by the carrier.

b) Export incentives such as Duty Drawback and benefits under the Duty Exemption Pass Book Scheme etc. are recognised on accrual basis.

11. Government Grants

Grants received against specific fixed assets are adjusted to the cost of the assets and those in vhe nature of promoter's contribution are credited to capital reserve. Revenue grants are recog- nized in the Profit and Loss Account in accordance with the related scheme and in the period in which there are accrued.

12. Foreign Currency Translations

a) All foreign currency transactions are recorded at the rates prevailing on the date of the trans- action.

b) All foreign currency assets and liabilities other than investments are restated / reported at the closing exchange rate prevailing on the date of Balance Sheet.

c) The premium or discount on Forward Exchange Contract is amortised on a straight line method over the period of contract.

d) Gains and losses arising out of fluctuations in the exchange rates are recognised in Profit and Loss Account.

e) Investments in wholly owned subsidiaries are carried in Balance Sheet at the rates prevailing on the dates of transactions.

f) Overseas Office

i) Revenue items except opening & closing inventory and depreciation: at average ex- change rate.

ii) Fixed Assets and Depreciation : at exchange rate prevalent at the time of acquisition of the assets.

iii) Current Assets and Current Liabilities: at the closing exchange rate prevalent on the date of Balance Sheet.

iv) The exchange difference resulting from the translations of items in the financial state- ments of foreign branch are recognised as income or expense as the case may be.

13. Accounting for Retirement Benefits

a) Company's contributions to Provident Fund are charged to Profit and Loss Account.

b) The company has created a trust with Life Insurance Corporation of India under the Group Gratuity Scheme in which actuarial valuation is carried out annually in the month of March. The amount required to be contributed to meet the accrued liability as per the actuarial valu- ation is charged to Profit and Loss Account.

c) Provision for leave encashment is done on the basis of leaves accrued as at the end of the year.

d) Termination benefits are recognised as an expense as and when incurred.

14. Excise Duty

Excise Duty is accounted for as and when paid on clearance of goods from bonded premises. No provision is made for excise Duty in respect of finished products lying in bonded premises since major sales comprises of Export Sales.

15. Borrowing Cost

Interest and other cost in connection with the borrowing of funds are capitalized up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

16. Taxation

Provision for Income Tax is made after considering the various deductions/benefits admissible under the Income Tax Act, 1961. In accordance with AS 22 'Accounting for Taxes on Income' issued by ICAI, the company has recognised Deferred Tax arising out of timing differences be- tween taxable income and accounting income and quantified the same using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

17. Prior Period Items: -

Prior period items, if material, are disclosed separately.


Mar 31, 2010

1. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), Generally Accepted Accounting Principles (GAAP) and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

3. Fixed Assets

Fixed Assets, other than those revalued, are stated at their cost of acquisition or construction as the case may be, and including all related acquisition/installation expenses and borrowing cost as per Accounting Standard (AS) 16. Subsidy received on Fixed Assets is credited to the cost of respective fixed assets. Assets revalued are stated at their revalued amount. Cost/revalued amount so ascertained is adjusted for accumulated depreciation/amortization and provision for impair- ment.

4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the provi- sions of Schedule XIV to the Companies Act, 1956. Leasehold Land is amortised over the period of lease. Depreciation attributable to appreciation due to revaluation of fixed assets (other than leasehold land) is provided according to the rates prescribed in Schedule XIV to the Companies Act, 1956 and equivalent amount is withdrawn from Revaluation Reserve and credited to Profit and Loss Account. In case of impaired assets, depreciation is charged on the adjusted cost net of impairment.

5. 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 asset or the recoverable amount of the cash generat- ing unit to which the asset belongs is less than the "carrying amount", the carrying amount is reduced to its recoverable amount. If at the Balance Sheet date there is an indication that a previously assessed / impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount.

6. Capital work in progress

Capital work in Progress includes, cost of assets not yet commissioned, borrowing cost and inci- dental expenses during construction period.

7. Investments

Investments are stated at cost of acquisition less provision for diminution in value of quoted In- vestments.

8. Inventories

Raw materials, Chemicals, Components & Spares parts are valued at lower of cost, arrived at on FIFO method (net of CENVAT) or net realisable value. Finished Goods (including stock at port or in transit) and Work in Process are valued at lower of cost or net realisable value. Saleable waste/ scrap is valued at estimated realisable value. Inter unit goods transfers are valued at lower of their respective transfer price or net realisable value. Import entitlements/ Licenses are valued at estimated net realizable/utilization value.

9. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognised in the accounts.

10. Revenue Recognition

a) Sales are inclusive of excise duty but net of sales tax, returns and discounts. Domestic sales are recognised on dispatch of goods to customers. Export sales are recognised on the issu- ance of Bill of Lading/Airway Bill by the carrier.

b) Export incentives such as Duty Drawback and benefits under the Duty Exemption Pass Book Scheme etc. are recognised on accrual basis.

c) Insurance Claims are accounted for on settlement of claims.

11. Government Grants

Grants received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoters contribution are credited to capital reserve. Revenue grants are recog- nized in the Profit and Loss Account in accordance with the related scheme and in the period in which there are accrued.

12. Foreign Currency Translations

a) All foreign currency transactions are recorded at the rates prevailing on the date of the trans- action.

b) All foreign currency assets and liabilities other than investments are restated / reported at the closing exchange rate prevailing on the date of Balance Sheet.

c) The premium or discount on Forward Exchange Contract is amortised on a straight line method over the period of contract.

d) Gains and losses arising out of fluctuations in the exchange rates are recognised in Profit and Loss Account.

e) Investments in wholly owned subsidiaries are carried in Balance sheet at the rates prevailing on the dates of transactions.

f) Overseas Office

i) Revenue items except opening & closing inventory and depreciation: at average ex- change rate.

ii) Fixed Assets and Depreciation: at exchange rate prevalent at the time of acquisition of the assets.

iii) Current Assets and Current Liabilities: at the closing exchange rate prevalent on the date of Balance Sheet.

iv) The exchange difference resulting from the translations of items in the financial state- ments of foreign branch are recognised as income or expense as the case may be.

13. Accounting for Retirement Benefits

a) Companys contributions to Provident Fund are charged to Profit and Loss Account.

b) The company has created a trust with Life Insurance Corporation of India under the Group Gratuity Scheme in which actuarial valuation is carried out annually in the month of March. The amount required to be contributed to meet the accrued liability as per the actuarial valu- ation is charged to Profit and Loss Account.

c) Provision for leave encashment is done on the basis of leaves accrued as at the end of the year.

d) Termination benefits are recognised as an expense as and when incurred.

14. Excise Duty

Excise Duty is accounted for as and when paid on clearance of goods from bonded premises. No provision is made for Excise Duty in respect of finished products lying in bonded premises since major sales comprises of Export Sales.

15. Borrowing Cost

Interest and other cost in connection with the borrowing of funds are capitalized up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

16. Taxation

Provision for Income Tax is made after considering the various deductions/benefits admissible under the Income Tax Act, 1961. In accordance with AS 22 Accounting for Taxes on Income issued by ICAI, the company has recognised Deferred Tax arising out of timing differences be- tween taxable income and accounting income and quantified the same using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

17. Prior Period Items

Prior period items, if material, are disclosed separately.



 
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