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Accounting Policies of Technocraft Industries (India) Ltd. Company

Mar 31, 2015

A. BASIS OF ACCOUNTING

- These Financial Statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014, till the Standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently these Financial Statements have been prepared to Comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act ,1956[Companies (Accounting Standards) Rules ,2006,as amended] and other relevant provisions of the Companies Act,2013.

- All assets and liabilities have been Classified as Current or Non-Current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.Based on the nature of Products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current Classification of assets & Liabilities.

B. RECOGNITION OF INCOME AND EXPENDITURE

- Incomes and Expenditures are recognized on accrual basis except in case of significant uncertainties like, Benefits on Special Import License Premium, all cash incentives and claims payable & receivable, which have been accounted on Acceptance basis.

- Export Incentives are accounted for in the year of export.

- Dividend Income on Investments is accounted for when the right to receive the payment is established.

- Purchases are reported net of Trade discounts, Returns, Value Added Tax (to the extent refundable/ adjustable) & Sales, if any, made during the course of the business.

- Sales are reported net of Trade discounts, Quantity Discounts, Returns & Rebates and Excise Duty & Sales Tax.

- Sales of Scrap / Unusable Waste are reported net of Excise duty and Sales Tax.

C. INVENTORIES

- Inventories of Raw Materials, Finished Goods, Semi-Finished Goods, Trading Goods, Raw Material Scrap and Stores, Spares and other components, Packing Materials, Fuel and Oil are valued at cost or net realizable value, whichever is lower.

- Goods in transit are valued at cost or net realizable value, whichever is lower.

- Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present location and conditions.

- Cost is arrived at on FIFO basis.

D. FIXED ASSETS

Tangible Fixed Assets are stated at cost of acquisition or construction inclusive of incidental expenses related there to and includes amount added on revaluation less accumulated depreciation & Cenvat credit.

E. DEPRECIATION

- Depreciation on Tangible Fixed Assets has been provided on the Written Down Value method based on the Useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

- Depreciation on additions to Tangible Fixed Assets or on Sale / Disposal of Tangible Fixed Assets is calculated on prorata basis from the Quarter in which additions or up to the Quarter of such Sale/ Disposal is made as the case may be.

- Depreciation on Revalued amount of Fixed Assets has been charged to Statement of Profit & Loss Account.

- Leasehold Land is amortized over the period of lease.

F. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period is included under Capital Work in Progress and the same is allocated to the respective Fixed Assets on the completion of its construction.

G. FOREIGN EXCHANGE TRANSACTIONS

- Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

- Monetary assets (including loans to subsidiaries) and Liabilities in foreign currency transactions remaining unsettled at the end of the year (other than forward contract transactions) are translated at the year end rates and the corresponding effect is given to the respective account.

- Exchange differences' arising on account of fluctuations in the rate of exchange is recognized in the statement of Profit & Loss.

- Exchange rate difference arising on account of conversion/translation of liabilities incurred for acquisition of Fixed Assets is recognized in the Statement of Profit & Loss.

H. GOVERNMENT GRANTS

- Capital subsidy/government grants are accounted for where it is reasonably certain that the same will be received.

- Capital subsidy/government grants in the form of Capital/Investment Incentives received from government/Semi- government authorities are credited to capital reserve account.

- Capital subsidy/government grants related to specific non depreciable assets are credited to capital reserve account.

- Capital subsidy/government grants related to specific Depreciable assets are credited to the Cost of the assets

- Other Revenue Grants are credited to statement of Profit & Loss under 'Other Income' or deducted from the related Expenses in accordance with the related scheme and in the period in which these are accrued.

I. INVESTMENTS

- Long Term Investments are stated at Cost. Provision for diminution is made to recognize a decline, other than temporary, in the value of Long Term Investments.

- Current Investments are valued at Cost or Market Value whichever is lower.

J. EMPLOYEE BENEFITS

- The Company makes regular contribution to the Employees' Provident Fund and Employees' Pension Fund Schemes and these contributions are charged to Statement of Profit and Loss.

- The Leave Encashment & Gratuity liability is determined by actuarial valuation, using the Project Unit Credit Method as specified in AS 15 (Revised) "EMPLOYEE BENEFITS" and the liability is fully charged to Statement of Profit & Loss. Actuarial gains and losses arising on such valuation are also recognized immediately in Statement of Profit & Loss.

K. BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized. Other borrowing costs are charged to the Statement of Profit & Loss in the year in which they are incurred.

L. LEASES

Lease rentals in respect of the assets acquired on Lease are charged to Statement of Profit and Loss.

M. TAXATION

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax resulting from" timing difference "between book and taxable profit is accounted for using the tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets are recognized, only to the extent there is a reasonable certainty of its realization. At each Balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

N. INTANGIBLE ASSETS

- Intangible Assets are recognized by the Company only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the same can be measured reliably.

- Intangible Assets are amortized on a systematic basis over its useful life on straight line basis and the amortization for each period will be recognized as an expense.

O. IMPAIRMENT

- Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

- Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

P. PROVISIONS

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Q. CONTINGENT LIABILITY

Contingent Liabilities are not accounted for in the Accounts. These are disclosed by way of Notes to the financial Statements to the extent of information available with the Company.

# Already Paid / Adjusted by the Income Tax Department from the Refund due but the Matters are still under Litigation. ## Includes Penal Amount also.


Mar 31, 2014

A. GENERAL

The Financial Statement are prepared on the historical cost basis, in accordance with the Generally Accepted Accounting Principles in India, the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, adjusted by valuation of certain Fixed Assets and on the accounting principles of a going concern.

Accounting Principles not specifically referred to otherwise be consistent and in consonance with the generally accepted accounting principles.

B. RECOGNITION OF INCOME AND EXPENDITURE

Incomes and Expenditures are recognized on accrual basis except in case of significant uncertainties like, Benefits on Special Import License Premium, all cash incentives and Claims Payable & receivable, which have been accounted on Acceptance basis.

Export Incentives are accounted for in the year of export.

Dividend Income on Investments is accounted for when the right to receive the payment is established.

Purchases are reported net of Trade discounts, Returns, Value Added Tax (to the extent refundable/ adjustable) & Sales, if any, made during the course of the business.

Sales are reported net of Trade discounts, Quantity Discounts, Returns & Rebates, Excise Duty & Sales Tax.

Sales of Scrap / Unusable Waste are reported net of Excise duty and Sales Tax.

C. INVENTORIES

Inventories of Raw Materials, Finished Goods, Semi-Finished Goods, Trading Goods, Raw Material Scrap and Stores, Spares and other components, Packing materials, Fuel and Oil are valued at cost or net realizable value, whichever is lower.

Goods in transit are valued at cost or net realizable value, whichever is lower.

Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present location and conditions.

Cost is arrived at on FIFO basis.

D. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction inclusive of incidental expenses related there to and includes amount added on revaluation less accumulated depreciation & Cenvat credit.

E. DEPRECIATION

Depreciation on Fixed Assets has been provided on pro-rata basis on the written down value method at the rates specified in schedule XIV, of the Companies Act, 1956.

Leasehold Land is amortized over the period of lease.

The amount of Depreciation on Revalued Assets charged for each period has been set off against Revaluation Reserve Account.

F. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period is included under Capital Work in Progress and the same is allocated to the respective Fixed Assets on the completion of its construction.

G. FOREIGN EXCHANGE TRANSACTIONS

Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

Monetary assets (including loans to subsidiaries) and Liabilities in foreign currency transactions remaining unsettled at the end of the year (other than forward contract transactions) are translated at the year end rates and the corresponding effect is given to the respective account.

Exchange differences'' arising on account of fluctuations in the rate of exchange is recognized in the statement of Profit & Loss.

Exchange rate difference arising on account of conversion/translation of liabilities incurred for acquisition of Fixed Assets is recognized in the Statement of Profit & Loss.

H. GOVERNMENT GRANTS

Capital subsidy/government grants are accounted for where it is reasonably certain that the same will be received.

Capital subsidy/government grants in the form of Capital/Investment Incentives received from government/Semi-government authorities are credited to capital reserve account.

Capital subsidy/government grants related to specific non depreciable assets are credited to capital reserve account.

Capital subsidy/government grants related to specific depreciable assets are credited to capital reserve account and are recognized as income in profit and loss statement on a systematic and rational basis over the useful life of assets.

Other Revenue Grants are credited to statement of Profit & Loss under ''Other Income'' or deducted from the related Expenses in accordance with the related scheme and in the period in which these are accrued.

I. INVESTMENTS

Long Term Investments are stated at Cost. Provision for diminution is made to recognize a decline, other than temporary, in the value of Long Term Investments.

Current Investments are valued at Cost or Market Value whichever is lower.

J. EMPLOYEE BENEFITS

The Company makes regular contribution to the Employees'' Provident Fund and Employees Pension Fund Schemes and these contributions are charged to Statement of Profit and Loss.

The Leave Encashment & Gratuity liability is determined by actuarial valuation, using the Project Unit Credit Method as specified in AS 15 (Revised) “EMPLOYEE BENEFITS” and the liability is fully charged to Statement of Profit & Loss. Actuarial gains and losses arising on such valuation are also recognized immediately in Statement of Profit & Loss.

K. BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized. Other borrowing costs are charged to the Statement of Profit & Loss in the year in which they are incurred.

L. LEASES

Lease rentals in respect of the assets acquired on Lease are charged to Statement of Profit and Loss.

M. TAXATION

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax resulting from” timing difference “between book and taxable profit is accounted for using the tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets are recognized, only to the extent there is a reasonable certainty of its realization. At each Balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

N. INTANGIBLE ASSETS

Intangible Assets are recognized by the Company only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the same can be measured reliably.

Intangible Assets are amortized on a systematic basis over its useful life on straight line basis and the amortization for each period will be recognized as an expense.

O. IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

P. PROVISIONS

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Q. CONTINGENT LIABILITY

Contingent Liabilities are not accounted for in the Accounts. These are disclosed by way of Notes to the financial Statements to the extent of information available with the Company.


Mar 31, 2013

A. GENERAL

These Financial Statement are prepared on the historical cost basis, in accordance with the Generally Accepted Accounting Principles in India, the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, adjusted by valuation of certain Fixed Assets and on the accounting principles of a going concern.

Ø Accounting Principles not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles.

B. RECOGNITION OF INCOME AND EXPENDITURE

Ø Incomes and expenditures are recognized on accrual basis except benefits on Special

Import License Premium, Sales Tax set off, Duty Drawback and all cash incentives, Claims receivable and Government taxes, which have been accounted on cash basis.

Ø Purchases are reported net of Trade discounts, Returns, Value Added Tax (to the extent refundable/ adjustable) & Sales, if any, made during the course of the business.

Ø Sales are reported net of Trade discounts, Quantity Discounts, Returns & Rebates, Excise Duty & Sales Tax.

Ø Sales of Scrap / Unusable Waste are reported net of Excise duty and Sales Tax.

C. INVENTORIES

Ø Inventories of Raw Materials, Finished Goods, Semi-Finished Goods, Trading Goods, Raw

Material Scrap and Stores, Spares and other components, Packing Materials, Fuel and Oil are valued at cost or net realizable value, whichever is lower.

Ø Goods in transit are valued at cost or net realizable value, whichever is lower.

Ø Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present location and conditions.

Ø Cost is arrived at on FIFO basis.

D. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction inclusive of incidental expenses related there to and includes amount added on revaluation less accumulated depreciation & cenvat credit.

E. DEPRECIATION

Ø Depreciation on Fixed Assets has been provided on pro-rata basis on the written down value method at the rates specified in schedule XIV, of the Companies Act, 1956.

Ø Leasehold Land is amortized over the period of lease.

Ø The amount of Depreciation on Revalued Assets charged for each period has been set off against Revaluation Reserve Account.

F. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period is included under Capital Work in Progress and the same is allocated to the respective Fixed Assets on the completion of its construction.

G. FOREIGN EXCHANGE TRANSACTIONS

Ø Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

Ø Monetary assets and Liabilities in foreign currency transactions remaining unsettled at the

end of the year (other than forward contract transactions) are translated at the year end rates and the corresponding effect is given to the respective account.

Ø Exchange differences'' arising on account of fluctuations in the rate of exchange is recognized in the statement of Profit & Loss.

Ø Exchange rate difference arising on account of conversion/translation of liabilities incurred for acquisition of Fixed Assets is recognized in the Statement of Profit & Loss.

Ø Investment & finance (including loans & equity contribution) in foreign subsidiaries are recorded in rupees by applying the exchange rate prevailing at the time of making Investments and Finance.

H. GOVERNMENT GRANTS

Ø Capital subsidy/government grants are accounted for where it is reasonably certain that the ultimate collection will be made.

Ø Capital subsidy/government grants in the form of Capital/Investment Incentives received from government/Semi-government authorities are credited to capital reserve account.

Ø Capital subsidy/government grants related to specific non depreciable assets are credited to capital reserve account.

Ø Capital subsidy/government grants related to specific depreciable assets are credited to capital reserve account and are recognized as income in profit and loss statement on a systematic and rational basis over the useful life of assets.

Ø Other Revenue Grants are credited to statement of Profit & Loss under ''Other Income'' or deducted from the related Expenses.

I. INVESTMENTS

Long Term Investments are stated at Cost and provision for diminution in value in the perception of the management will only be considered.

J. EMPLOYEE BENEFITS

Ø The Company makes regular contribution to the Employees'' Provident Fund and Employees'' Pension Fund Schemes and these contributions are charged to Statement of Profit and Loss.

Ø The Leave Encashment & Gratuity liability is determined by actuarial valuation, using the Project Unit Credit Method as specified in AS 15 (Revised) "EMPLOYEE BENEFITS" and the liability is fully charged to Statement of Profit & Loss. Actuarial gains and losses arising on such valuation are also recognized immediately in Statement of Profit & Loss.

K. BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets up to the date the assets are put to use. Other borrowing costs are charged to the Statement of Profit & Loss in the year in which they are incurred.

L. LEASES

Lease rentals in respect of the assets acquired on Lease are charged to Statement of Profit and Loss.

M. TAXATION

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax resulting from" timing difference "between book and taxable profit is accounted for using the tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets are recognized, only to the extent there is a reasonable certainty of its realization. At each Balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

N. INTANGIBLE ASSETS

Intangible Assets are recognized by the Company only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the same can be measured reliably.

Intangible Assets are amortized on a systematic basis over its useful life and the amortization for each period will be recognized as an expense.

O. IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

P. PROVISIONS

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Q. CONTINGENT LIABILITY

Contingent Liabilities are not accounted for in the Accounts. These are disclosed by way of Notes to the financial Statements to the extent of information available with the Company.


Mar 31, 2012

A. GENERAL

- These Financial Statement are prepared on the historical cost basis, in accordance with the Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India (except to the extent otherwise stated herein 2(B), 2(E)(1) below) and the provisions of the Companies Act, 1956, adjusted by valuation of certain Fixed Assets and on the accounting principles of a going concern.

- Accounting Principles not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles.

B. RECOGNITION OF INCOME AND EXPENDITURE

Incomes and expenditures are recognized on accrual basis except benefits on Special Import License Premium, Sales Tax set off, Duty Drawback and all cash incentives, Claims receivable and Government taxes, which have been accounted on cash basis.

C. SALES

- Sales are reported net of trade discounts, returns & rebates, Excise Duty and Sales Tax.

- Sales of Scrap/Unusable Waste are reported net of Excise duty and Sales Tax.

D. INVENTORIES

- Inventories of Raw Materials, Finished Goods, Semi-Finished Goods, Trading Goods, Raw Material Scrap and Stores Spares and other components, Packing Materials, Fuel and Oil are valued at cost or net realizable value, whichever is lower.

- Goods in transit are valued at cost or net realizable value, whichever is lower.

- Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present location and conditions.

- Cost is arrived at on FIFO basis.

E. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction inclusive of incidental expenses related there to and includes amount added on revaluation less accumulated depreciation & cenvat credit.

F. DEPRECIATION

- Depreciation on Fixed Assets has been provided on pro-rata basis on the written down value method at the rates specified in schedule XIV, of the Companies Act, 1956.

- Leasehold Land is amortized over the period of lease.

- Depreciation on Revalued Assets is charged for each period after deducting the amount of depreciation on the revalued cost, transferred from revaluation reserve.

G. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period is included under Capital Work in Progress and the same is allocated to the respective Fixed Assets on the completion of its construction.

H. DEFERRED REVENUE EXPENDITURE

The expenses disclosed under Miscellaneous Expenditure consists of Preliminary expenses and the same have been amortized over a period of 10 years

I. FOREIGN EXCHANGE TRANSACTIONS

- Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

- Monetary assets and Liabilities in foreign currency transactions remaining unsettled at the end of the year (other than forward contract transactions) are translated at the year end rates and the corresponding effect is given to the respective account.

- Exchange differences' arising on account of fluctuations in the rate of exchange is recognized in the statement of Profit & Loss.

- Exchange rate difference arising on account of conversion/translation of liabilities incurred for acquisition of Fixed Assets is recognized in the Statement of Profit & Loss.

- Investment & finance (including loans & equity contribution) in foreign subsidiaries are recorded in rupees by applying the exchange rate prevailing at the time of making Investments and Finance.



J. GOVERNMENT GRANTS

- Capital subsidy/government grants are accounted for where it is reasonably certain that the ultimate collection will be made.

- Capital subsidy/government grants in the form of Capital/Investment Incentives received from government/Semi-government authorities are credited to capital reserve account.

- Capital subsidy/government grants related to specific non depreciable assets are credited to capital reserve account.

- Capital subsidy/government grants related to specific depreciable assets are credited to capital reserve account and are recognized as income in profit and loss statement on a systematic and rational basis over the useful life of assets.

- Other Revenue Grants are credited to statement of Profit & Loss under 'Other Income' or deducted from the related Expenses.

K. INVESTMENTS

Long Term Investments are stated at Cost and provision for diminution in value in the perception of the management will only be considered.

L. EMPLOYEE BENEFITS

- The Company makes regular contribution to the Employees' Provident Fund and Employees' Pension Fund Schemes and these contributions are charged to Statement of Profit and Loss.

- Year end liabilities on account of Leave encashment Benefits to employees are accounted for on accrual basis and provision for actual earned leave accrued and provided as per the balance of unclaimed leave at the year end since there is no scheme in the company for leave encashment benefits in line with AS 15 (Revised) "EMPLOYEE BENEFITS".

- The gratuity liability is determined by actuarial valuation, using the Project Unit Credit Method as specified in AS 15 (Revised) "EMPLOYEE BENEFITS" and the liability is fully charged to Statement of Profit & Loss. Actuarial gains and losses arising on such valuation are also recognized immediately in Statement of Profit & Loss.

M. BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets up to the date the assets are put to use. Other borrowing costs are charged to the Statement of Profit & Loss in the year in which they are incurred.



N. LEASES

Lease rentals in respect of the assets acquired on Lease are charged to Statement of Profit and Loss.

O. TAXATION

Provision for current tax is made on the assessable income at the tax rate applicable to the

relevant assessment year. Deferred tax resulting from "timing difference "between book and taxable profit is accounted for using the tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets are recognized, only to the extent there is a reasonable certainty of its realization. At each Balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

P. INTANGIBLE ASSETS

Intangible Assets are recognized by the Company only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the same can be measured reliably.

Intangible Assets are amortized on a systematic basis over its useful life and the amortization for each period will be recognized as an expense.

Q. IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

R. PROVISIONS

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

S. CONTINGENT LIABILITY

Contingent Liabilities are not accounted for in the Accounts. These are disclosed by way of Notes to the financial Statements to the extent of information available with the Company.


Mar 31, 2011

A. GENERAL

- These Financial Statement are prepared on the historical cost basis, in accordance with the

Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India (except to the extent otherwise stated herein 2(B), 2(E) (i) below) and the provisions of the Companies Act, 1956, adjusted by valuation of certain Fixed Assets and on the accounting principles of a going concern.

- Accounting Principles not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles.

B. RECOGNITION OF INCOME AND EXPENDITURE

Incomes and expenditures are recognized on accrual basis except benefits on Special Import License Premium, Sales Tax set off, Duty Drawback and all cash incentives, Claims receivable and Government taxes, which have been accounted on cash basis.

C. SALES

- Sales are reported net of trade discounts, returns & rebates, Excise Duty and Sales Tax.

- Sales of Scrap/Unusable Waste are reported net of Excise duty and Sales Tax.

D. INVENTORIES

- Inventories of Raw Materials, Finished Goods, Semi-Finished Goods, Trading Goods, Raw Material Scrap and Stores Spares and other components, Packing Materials, Fuel and Oil are valued at cost or net realizable value, whichever is lower.

- Goods in transit are valued at cost or net realizable value, whichever is lower.

- Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing

the inventory to their present location and conditions.

- Cost is arrived at on FIFO basis.

E. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction inclusive of incidental expenses related there to and includes amount added on revaluation less accumulated depreciation & cenvat credit.

F. DEPRECIATION

- Depreciation on Fixed Assets has been provided on pro-rata basis on the written down value method at the rates specified in schedule XIV, of the Companies Act, 1956.

- Leasehold Land is amortized over the period of lease.

- Depreciation on Revalued Assets is charged for each period after deducting the amount of depreciation on the revalued cost, transferred from revaluation reserve.

G. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period is included under Capital Work in Progress and the same is allocated to the respective Fixed Assets on the completion of its construction.

H. DEFERRED REVENUE EXPENDITURE

The expenses disclosed under Miscellaneous Expenditure consist Preliminary expenses and the same have been amortized over a period of 10 years

I. FOREIGN EXCHANGE TRANSACTIONS

- Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

- Monetary assets and Liabilities in foreign currency transactions remaining unsettled at the end of the year (other than forward contract transactions) are translated at the year end rates and the corresponding effect is given to the respective account.

- Exchange differences' arising on account of fluctuations in the rate of exchange is recognized in the Profit & Loss Account.

- Exchange rate difference arising on account of conversion/translation of liabilities incurred for acquisition of Fixed Assets is recognized in the Profit & Loss A/c .

- Investment & finance (including loans & equity contribution) in foreign subsidiaries are recorded in rupees by applying the exchange rate prevailing at the time of making Investments and Finance.

J. GOVERNMENT GRANTS

- Capital subsidy/government grants are accounted for where it is reasonably certain that the ultimate collection will be made.

- Capital subsidy/government grants in the form of Capital/Investment Incentives received from government/Semi-government authorities are credited to capital reserve account.

- Capital subsidy/government grants related to specific non depreciable assets are credited to capital reserve account.

- Capital subsidy/government grants related to specific depreciable assets are credited to capital reserve account and are recognized as income in profit and loss statement on a systematic and rational basis over the useful life of assets.

- Other Revenue Grants are credited to Profit & Loss Account under 'Other Income' or deducted from the related Expenses.

K. INVESTMENTS

Long Term Investments are stated at Cost and provision for diminution in value in the perception of the management will only be considered.

L. EMPLOYEE BENEFITS

- The Company makes regular contribution to the Employees' Provident Fund and Employees' Pension Fund Schemes and these contributions are charged to Profit and Loss Account.

- Year end liabilities on account of Leave encashment Benefits to employees are accounted for on accrual basis and provision for actual earned leave accrued and provided as per the balance of unclaimed leave at the year end since there is no scheme in the company for leave encashment benefits.

- The gratuity liability is determined by actuarial valuation, using the Project Unit Credit Method as specified in AS 15 (Revised) " EMPLOYEE BENEFITS " and the liability is fully charged to Profit & Loss A/c. Actuarial gains and losses arising on such valuation are also recognized immediately in Profit & Loss A/c

M. BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets up to the date the assets are put to use. Other borrowing costs are charged to the Profit & Loss Account in the year in which they are incurred.

N. LEASES

Lease rentals in respect of the assets acquired on Lease are charged to Profit and Loss Account.

O. TAXATION

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax resulting from" timing difference "between book and taxable profit is accounted for using the tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets are recognized, only to the extent there is a reasonable certainty of its realization. At each Balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

P. INTANGIBLE ASSETS

Intangible Assets are recognized by the Company only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the same can be measured reliably.

Intangible Assets are amortized on a systematic basis over its useful life and the amortization for each period will be recognized as an expense.

Q. IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

R. PROVISIONS

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

S. CONTINGENT LIABILITY

Contingent Liabilities are not accounted for in the Accounts. These are disclosed by way of Notes to the Accounts to the extent of information available with the Company.




Mar 31, 2010

A. GENERAL

- These Financial Statement are prepared on the historical cost basis, in accordance with the Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India (except to the extent otherwise stated herein 2(C), 2(F), 2(Q) & 2(R) below) and the provisions of the Companies Act, 1956, adjusted by valuation of certain Fixed Assets and on the accounting principles of a going concern.

- Accounting Principles not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles.

B. RECOGNITION OF INCOME AND EXPENDITURE

Incomes and expenditures are recognized on accrual basis except benefits on Special Import License Premium, Sales Tax set off, Duty Drawback and all cash incentives, Claims receivable and Government taxes, which have been accounted on cash basis.

C. SALES

- Sales are reported net of trade discounts, returns & rebates, Excise Duty and Sales Tax.

- Sales of Scrap/Unusable Waste are reported net of Excise duty and Sales Tax.

D. INVENTORIES

- Inventories of Raw Materials, Finished Goods, Semi-Finished Goods, Trading Goods, Raw Material Scrap and Stores Spares and other components, Packing Materials, Fuel and Oil are valued at cost or net realizable value, whichever is lower.

- Goods in transit is valued at cost or net realizable value, whichever is lower.

- Cost comprise of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present location and conditions.

- Cost is arrived at on FIFO basis.

E. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction inclusive of incidental expenses related there to and includes amount added on revaluation less accumulated depreciation & cenvat credit.

F. DEPRECIATION

- Depreciation on Fixed Assets has been provided on pro-rata basis on the written down value method at the rates specified in schedule XIV, of the Companies Act, 1956.

- Leasehold Land is amortized over the period of lease.

- Depreciation on Revalued Assets is charged for each period after deducting the amount of depreciation on the revalued cost, transferred from revaluation reserve.

G. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period is included under Capital Work in Progress and the same is allocated to the respective Fixed Assets on the completion of its construction.

H. DEFERRED REVENUE EXPENDITURE

The expenses disclosed under Miscellaneous Expenditure consist Preliminary expenses and the same have been amortized over a period of 10 years.

I. FOREIGN EXCHANGE TRANSACTIONS

- Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

- Monetary assets and Liabilities in foreign currency transactions remaining unsettled at the end of the year (other than forward contract transactions) are translated at the year end rates and the corresponding effect is given to the respective account.

- Exchange differences arising on account of fluctuations in the rate of exchange is recognized in the Profit & Loss Account.

- Exchange rate difference arising on account of conversion/translation of liabilities incurred for acquisition of Fixed Assets is recognized in the Profit & Loss A/c .

- Investment & finance (including loans & equity contribution) in foreign subsidiaries are recorded in rupees by applying the exchange rate prevailing at the time of making Investments and Finance.

J. GOVERNMENT GRANTS

- Capital subsidy/government grants are accounted for where it is reasonably certain that the ultimate collection will be made.

- Capital subsidy/government grants in the form of Capital/Investment Incentives received from government/Semi-government authorities are credited to capital reserve account.

ff- Capital subsidy/government grants related to specific non depreciable assets are credited to capital reserve account.

- Capital subsidy/government grants related to specific depreciable assets are credited to capital reserve account and are recognized as income in profit and loss statement on a systematic and rational basis over the useful life of assets.

- Other Revenue Grants are credited to Profit & Loss Account under Other Income or deducted from the related Expenses.

K. INVESTMENTS

Long Term Investments are stated at Cost and provision for diminution in value in the perception of the management will only be considered.

L. EMPLOYEE BENEFITS

- The Company makes regular contribution to the Employees Provident Fund and Employees Pension Fund Schemes and these contributions are charged to Profit and Loss Account.

- Year end liabilities on account of Leave encashment Benefits to employees are accounted for on accrual basis and provision for actual earned leave accrued and provided as per the balance of unclaimed leave at the year end since there is no scheme in the company for leave encashment benefits.

- The gratuity liability is determined by actuarial valuation, using the Project Unit Credit Method as specified in AS 15 (Revised) " EMPLOYEE BENEFITS " and the liability is fully charged to Profit & Loss A/c. Actuarial gains and losses arising on such valuation are also recognized immediately in Profit & Loss A/c

M. BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets up to the date the assets are put to use. Other borrowing costs are charged to the Profit & Loss Account in the year in which they are incurred.

N. LEASES

Lease rentals in respect of the assets acquired on Lease are charged to Profit and Loss Account.

O. TAXATION

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax resulting from" timing difference "between book and taxable profit is accounted for using the tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets are recognized, only to the extent there is a reasonable certainty of its realisation. At each Balance sheet date, the carrying amount of Deferred tax assets are reviewed to reassure realization.

P. INTANGIBLE ASSETS

Intangible Assets are recognized by the Company only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the same can be measured reliably.

Intangible Assets are amortized on a systematic basis over its useful life and the amortization for each period will be recognized as an expense.

Q. IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

R. PROVISIONS

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

S. CONTINGENT LIABILITY

Contingent Liabilities are not accounted for in the Accounts. These are disclosed by way of Notes to the Accounts to the extent of information available with the Company.

 
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