Mar 31, 2015
A) Basis of preparation of financial statements:
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and are in consonance with the mandatory accounting
standards and statements issued by the Institute of Chartered
Accountants of India and the provisions of the Companies Act, 2013.
Accounting policies not specifically Referred to otherwise are
consistent with generally accepted accounting principles.
b) Use of Estimates:
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of the Financial Statements and the
reported amount of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Difference between
the actual results and estimates are recognized in which the results
are known/ materialized.
c) Fixed Assets:
Fixed assets are stated at historical cost including directly
attributable costs of bringing the assets to their working condition
and are net of credit under the CENVAT/VAT scheme, less accumulated
depreciation and impairment loss, & deduction of capital subsidy
received.
Preoperative expenditure including borrowing cost (net of revenue) and
foreign exchange fluctuation incurred during the construction/trial run
of new project is allocated on an appropriate basis to fixed assets on
commissioning.
Capital work in progress includes advances paid to acquire capital
assets before the Balance Sheet date.
d) Depreciation:
Depreciation on Fixed Assets has been provided using the Straight Line
Method in accordance with the rates prescribed in Schedule XIV of the
Companies Act, 2013 except Land and goodwill.
e) Inventories:
Inventories are valued at cost or net realizable value whichever is
lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
selling expenses. The cost is determined on the basis of First in First
out Method and includes expenditure in acquiring the inventories and
bringing them to their present location and condition. In the case of
manufactured inventories and work in progress, cost includes an
appropriate share of labour and manufacturing overheads depending on
the stage of completion. The finished goods stock is maintained in nos.
however it is converted in Kgs. as certified by the management
f) Investments:
Investments are stated at cost. Provision for diminution, if any, is
made to recognize a decline, other than temporary, in the fair value of
investments.
g) Revenue Recognition:
Sales of products are recognized when the products are dispatched and
are stated exclusive of excise duty, sales tax, VAT, other taxes &
duties but inclusive of trade discounts as approved by the management.
Excise duty represents finished goods dispatched through Personal
ledger Account (PLA) and out of Canvas on Capital Goods (RG23C-Part II)
but net of unutilized amount in raw material Civet Account (RG23A-Part
II). However, the excise duty includes duty incurred during branch
stock transfers, but has been appropriately adjusted from mark up price
to show net sales.
The Company generally follows mercantile system of accounting and all
income and expenditure items having a material bearing on the financial
statements are recognized on accrual basis. However, in respect of
differential excise duty, municipal dues, unsettled rebate and discount
and claims receivable and payable, cash system has been consistently
adopted. However, it does not affect the profit materially.
h) Foreign Currency Transactions:
i. Foreign currency transactions are recorded at the exchange rate
prevailing on the date of the transaction.
ii. Monetary items denominated in foreign currencies, if any at the
year-end are restated at year end rates.
iii. Non monetary foreign currency items are carried at cost.
iv. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account.
i) Retirement Benefits:
Liability with regard to the Gratuity Plan is determined by actuarial
valuation at each Balance sheet date using the projected unit credit
method. The Company fully contributes all ascertained liabilities to
the Tulsi Group Gratuity Scheme (the Trust). Trustees administer
contributions made to the trust and contributions are invested in
specific investments as permitted by the law. The company recognizes
the net obligation of the gratuity plan in the balance sheet as an
asset or liability, respectively in accordance with Accounting Standard
(AS) 15, "Employee Benefits'. The Company's overall expected long-term
rate Âof-return on assets has been determined based on consideration of
available market information, current provisions of Indian law
specifying the instruments in which investments can be made, and
historical returns. The discount rate is based on the government
securities yield. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognized in the
statement of profit and loss in the period in which they arise.
j) Miscellaneous Expenditure:
Issue expenses with relation to Initial Public Offering (IPO) to the
extent of allowable u/s 35D are being written off in five equal annual
installments. During the year company has shelved the Mega Project and
hence all the miscellaneous expenditures have been transferred to
respective fixed assets accounts.
k) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the provisions of Income
Tax Act, 1961. Minimum Alternate Tax (MAT) provided in accordance with
tax laws, which give rise to economic benefits in the form of tax
credit against future tax liability, is recognized as assets in the
balance sheet.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax provision has
been made due to difference in depreciation debited to profit & loss
account and eligible under Income Tax Act 1961.
l) Earnings Per Share:
The company reports basic and diluted Earnings per Share (EPS) in
accordance with Accounting Standard 20 on "Earnings per Share". Basic
EPS is computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year as adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.
m) Impairment of Assets:
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impaired loss is charged to Profit
and Loss Account in the year in which an asset is identified as
impaired. The impaired loss in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
n) Provision, Contingent Liabilities and Contingent Assets:
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to account. Contingent assets are neither recognized nor
disclosed in the financial statements.
o) Accounting for leases:
Assets taken on lease where significant portion of risks and rewards
incidental to the ownership are retained are classified as "Finance
Lease". Such assets are capitalized at fair value of assets.
The Company has only one class of shares referred to as equity shares
having a par value of Rs. 10/each. Each holder of equity shares is
entitled to one vote per share
Mar 31, 2014
A) Basis of preparation of financial statements:
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and are in consonance with the mandatory accounting
standards and statements issued by the Institute of Chartered
Accountants of India and the provisions of the Companies Act, 1956.
Accounting policies not specifically Referred to otherwise are
consistent with generally accepted accounting principles.
b) Use of Estimates:
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of the Financial Statements and the
reported amount of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Difference between
the actual results and estimates are recognized in which the results
are known/ materialized.
c) Fixed Assets:
Fixed assets are stated at historical cost including directly
attributable costs of bringing the assets to their working condition
and are net of credit under the CENVAT/VAT scheme, less accumulated
depreciation and impairment loss, & deduction of capital subsidy
received.
Preoperative expenditure including borrowing cost (net of revenue) and
foreign exchange fluctuation incurred during the construction/trial run
of new project is allocated on an appropriate basis to fixed assets on
commissioning.
Capital work in progress includes advances paid to acquire capital
assets before the Balance Sheet date. These advances include Rs.
12.36/- Crores for which no agreement has been executed by company.
d) Depreciation:
Depreciation on Fixed Assets has been provided using the Straight Line
Method in accordance with the rates prescribed in Schedule XIV of the
Companies Act, 1956 except Land and goodwill.
e) Inventories:
Inventories are valued at cost or net realizable value whichever is
lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
selling expenses. The cost is determined on the basis of First in First
out Method and includes expenditure in acquiring the inventories and
bringing them to their present location and condition. In the case of
manufactured inventories and work in progress, cost includes an
appropriate share of labour and manufacturing overheads depending on
the stage of completion. The finished goods stock is maintained in nos.
however it is converted in Kgs. as certified by the management
f) Investments:
Investments are stated at cost. Provision for diminution, if any, is
made to recognize a decline, other than temporary, in the fair value of
investments.
g) Revenue Recognition:
Sales of products are recognized when the products are dispatched and
are stated exclusive of excise duty, sales tax, VAT, other taxes &
duties but inclusive of trade discounts as approved by the management.
Excise duty represents finished goods dispatched through Personal
ledger Account (PLA) and out of Cenvat on Capital Goods (RG23C-Part II)
but net of unutilized amount in raw material Cenvat Account (RG23A-Part
II). However, the excise duty includes duty incurred during branch
stock transfers, but has been appropriately adjusted from mark up price
to show net sales.
The Company generally follows mercantile system of accounting and all
income and expenditure items having a material bearing on the financial
statements are recognized on accrual basis. However, in respect of
differential excise duty, municipal dues, unsettled rebate and discount
and claims receivable and payable, cash system has been consistently
adopted. However, it does not affect the profit materially.
h) Foreign Currency Transactions:
i. Foreign currency transactions are recorded at the exchange rate
prevailing on the date of the transaction.
ii. Monetary items denominated in foreign currencies, if any at the
year end are restated at year end rates.
iii. Non monetary foreign currency items are carried at cost.
iv. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account.
i) Retirement Benefits:
Liability with regard to the Gratuity Plan is determined by actuarial
valuation at each Balance sheet date using the projected unit credit
method. The Company fully contributes all ascertained liabilities to
the Tulsi Group Gratuity Scheme (the Trust). Trustees administer
contributions made to the trust and contributions are invested in
specific investments as permitted by the law. The company recognizes
the net obligation of the gratuity plan in the balance sheet as an
asset or liability, respectively in accordance with Accounting Standard
(AS) 15, "Employee Benefits'. The Company's overall expected long-term
rate Âof-return on assets has been determined based on consideration of
available market information, current provisions of Indian law
specifying the instruments in which investments can be made, and
historical returns. The discount rate is based on the government
securities yield. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognized in the
statement of profit and loss in the period in which they arise.
j) Miscellaneous Expenditure:
Issue expenses with relation to Initial Public Offering (IPO) to the
extent of allowable u/s 35D are being written off in five equal annual
installments. During the year company has shelved the Mega Project and
hence all the miscellaneous expenditures have been transferred to
respective fixed assets accounts.
k) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the provisions of Income
Tax Act, 1961. Minimum Alternate Tax (MAT) provided in accordance with
tax laws, which give rise to economic benefits in the form of tax
credit against future tax liability, is recognized as assets in the
balance sheet.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax provision has
been made due to difference in depreciation debited to profit & loss
account and eligible under Income Tax Act 1961.
l) Earnings Per Share:
The company reports basic and diluted Earnings per Share (EPS) in
accordance with Accounting Standard 20 on "Earnings per Share". Basic
EPS is computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year as adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.
m) Impairment of Assets:
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impaired loss is charged to Profit
and Loss Account in the year in which an asset is identified as
impaired. The impaired loss in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
n) Provision, Contingent Liabilities and Contingent Assets:
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to account. Contingent assets are neither recognized nor
disclosed in the financial statements.
o) Accounting for leases:
Assets taken on lease where significant portion of risks and rewards
incidental to the ownership are retained are classified as "Finance
Lease". Such assets are capitalized at fair value of assets.
Mar 31, 2012
A) Basis of preparation of financial statements:
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and ate in consonance with the mandatory accounting
standards and statements issued by the Institute of Chartered
Accountants of India and the provisions of the Companies Act, 1956.
Accounting policies not specifically Referred to otherwise are
consistent with generally accepted accounting principles.
b) Use of Estimates:
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of the Financial Statements and the
reported amount of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Difference between
the actual results and estimates are recognized in which the results
are known/ materialized.
c) Fixed Assets:
Fixed assets are slated at historical cost including directly
attributable costs of bringing the assets to their working condition
and are net ot credit under the CENVAT/VAT scheme, less accumulated
depreciation and impairment loss, if any.
Preoperative expendHure including borrowing cost (net of revenue) and
foreign exchange fluctuation incurred during the construction/trial run
of new project is allocated on an appropriate basis to fixed assets on
commissioning.
Capital work in progress includes advances paid to acquire capital
assets before the Balance Sheet date.
d) Depreciation:
Depreciation on Fixed Assets has been provided using the Straight Line
Method in accordance with the rates prescribed in Schedule XIV of the
Companies Act, 1956 except Land and goodwill.
e) Inventories:
Inventories are valued at cost or net reaizable value whichever is
lower. Net realizable value is the estimated selfing price in the
onfinary course of business less the estimated cost of completion and
selling expenses. The cost is determined on the basis of First in
First out Method and includes expenditure in acquiring the inventories
and bringing them to their present location and condition. In the case
of manufactured inventories and work in progress, cost includes an
appropriate share of labour and manufacturing overheads depending on
the stage of completion.
f) Investments:
Investments are stated at cost. Provision for diminution, if any, is
made to recognize a decline, other than temporary, in the fair value of
investments.
g) Revenue Recognition:
Sales of products are recognized when the products are dispatched and
are stated exclusive of excise duty, sales tax, VAT, other taxes &
duties but inclusive of trade discounts as approved by the management.
Excise duty represents finished goods dispatched through Personal
ledger Account (PLA) and out of Cenvat on Capital Goods (RG23C-Part II)
but net of unutilized amount in raw material Cenvat Account (RG23A-Part
II). However, the excise duty includes duty incurred during branch
stock transfers, but has been appropriately adjusted from mark up price
to show net sales.
The Company generally follows mercantile system of accounting and all
income and expenditure items having a material bearing on the financial
statements are recognized on accrual basis. However, in respect of
differential excise duty, municipal dues, unsettled rebate and discount
and claims receivable and payable, cash system has been consistently
adopted. However, it does not affect the profit materially.
h) Foreign Currency Transactions:
i. Foreign currency transactions are recorded at the exchange rate
prevailing on the date of the transaction.
ii. Monetary items denominated in foreign currencies, if any at the
year end are restated at year end rates.
iii. Non monetary foreign currency items are carried at cost.
iv. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account.
i) Retirement Benefits:
Liability with regard to the Gratuity Plan is determined by actuarial
valuation at each Balance sheet date using the projected unit credit
method. The Company fully contributes all ascertained liabilities to
the Tulsi Group Gratuity Scheme (the Trust). Trustees administer
contributions made to the trust and contributions are invested in
specific investments as permitted by the law. The company recognizes
the net obligation of the gratuity plan in the balance sheet as an
asset or liability, respectively in accordance with Accounting Standard
(AS) 15, "Employee Benefits'. The Company's overall expected
long-term rate -of-retum on assets has been determined based on
consideration of available market information, current provisions of
Indian law specifying the instruments in which investments can be made,
and historical returns. The discount rate is based on the government
securities yield. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognized in the
statement of profit and loss in the period in which they arise.
j) Miscellaneous Expenditure:
Issue expenses with relation to Initial Public Offering (IPO) to the
extent of allowable u/s 35D are being written off in five equal annual
installments.
k) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the provisions of Income
Tax Act, 1961. Minimum Alternate Tax (MAT) provided in accordance with
tax laws, which give rise to economic benefits in the form of tax
credit against future tax liability, is recognized as assets in the
balance sheet.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax provision has
been made due to difference in depreciation debited to profit & loss
account and eligible under income Tax Act 1961.
l) Earnings Per Share:
The company reports basic and diluted Earnings per Share (EPS) in
accordance with Accounting Standard 20 on "Earnings per Share".
Basic EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year. Diluted EPS is computed by dividing the net profit or loss for
the year by the weighted average number of equity shares outstanding
during the year as adjusted for the effects of all dilutive potential
equity shares, except where the results are anti- dilutive.
m) Impairment of Assets:
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impaired loss is charged to Profit
and Loss Account in the year in which an asset is identified as
impaired. The impaired loss in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
n) Provision, Contingent Liabilities and Contingent Assets:
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to account. Contingent assets are neither recognized nor
disclosed in the financial statements.
o) Accounting for leases:
Assets taken on lease where significant portion of risks and rewards
incidental to the ownership are retained are classified as "Finance
Lease". Such assets are capitalized at fair value of assets.
The Company has only one class of shares Referred to as equity shares
having a par value of Rs. 10/-each. Each holder of equity shares is
entitled to one vote per share.
Mar 31, 2011
A) Basis of preparation of financial statements:
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and are in consonance with the mandatory accounting
standards and statements issued by the Institute of Chartered
Accountants of India and the provisions of the Companies Act, 1956.
Accounting policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
b) Use of Estimates:
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of the Financial Statements and the
reported amount of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Difference between
the actual results and estimates are recognized in which the results
are known/ materialized.
c) Fixed Assets:
Fixed assets are stated at historical cost including directly
attributable costs of bringing the assets to their working condition
and are net of credit under the CENVAT/VAT scheme, less accumulated
depreciation and impairment loss, if any.
Preoperative expenditure including borrowing cost (net of revenue) and
foreign exchange fluctuation incurred during the construction/trial run
of new project is allocated on an appropriate basis to fixed assets on
commissioning.
Capital work in progress includes advances paid to acquire capital
assets before the Balance Sheet date.
d) Depreciation:
Depreciation on Fixed Assets except Leasehold Land and Goodwill has
been provided using the Straight Line Method in accordance with the
rates prescribed in Schedule XIV of the Companies Act, 1956.
e) Inventories:
Inventories are valued at cost or net realizable value whichever is
lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
selling expenses. The cost is determined on the basis of First in First
Out Method and includes expenditure in acquiring the inventories and
bringing them to their present location and condition. In the case of
manufactured inventories and work in progress, cost includes an
appropriate share of labour and manufacturing overheads.
f) Investments:
Investments are stated at cost. Provision for diminution, if any, is
made to recognize a decline, other than temporary, in the fair value of
investments.
g) Revenue Recognition:
Sales of products are recognized when the products are dispatched and
are stated inclusive of excise duty, sales tax, VAT, other taxes &
duties but net of trade discounts as approved by the management.
Excise duty represents finished goods dispatched through Personal
ledger Account (PLA) and out of Cenvat on Capital Goods (RG23C-Part II)
but net of unutilized amount in raw material Cenvat Account (RG23A-Part
II). However, the excise duty includes duty incurred during branch
stock transfers, but has been appropriately adjusted from mark up price
to show net sales. The Company generally follows mercantile system of
accounting and all income and expenditure items having a material
bearing on the financial statements are recognized on accrual basis.
However, in respect of differential excise duty, municipal dues,
unsettled rebate and discount and claims receivable, cash system has
been consistently adopted. However, it does not affect the profit
materially.
h) Foreign Currency Transactions:
i. Foreign currency transactions are recorded at the exchange rate
prevailing on the date of the transaction.
ii. Monetary items denominated in foreign currencies, if any at the
year end are restated at year end rates.
iii. Non monetary foreign currency items are carried at cost.
iv. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account.
i) Retirement Benefits:
Annual Contribution towards the gratuity liability is funded with the
Reliance Life Insurance Company Ltd. in accordance with the gratuity
scheme.
j) Miscellaneous Expenditure:
Issue expenses in relation to Global Depository Receipts (GDR's) have
been deducted from securities premium.
Issue expenses with relation to Initial Public Offering (IPO) to the
extent of allowable u/s 35D are being written off in five equal annual
installments.
k) Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the provisions of Income
Tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
l) Earnings Per Share:
The company reports basic and diluted Earnings Per Share (EPS) in
accordance with Accounting Standard 20 on "Earnings Per Share". Basic
EPS is computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year as adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.
m) Impairment of Assets:
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impaired loss is charged to Profit
and Loss Account in the year in which an asset is identified as
impaired. The impaired loss in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
n) Provision, Contingent Liabilities and Contingent Assets:
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to account. Contingent assets are neither recognized nor
disclosed in the financial statements.
o) Accounting for leases:
Assets taken on lease where significant portion of risks and rewards
incidental to the ownership are retained are classified as "Finance
Lease". Lease rentals are recognised on straight line basis over the
lease term basis.
Mar 31, 2010
A) Basis of preparation of financial statements:
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and are in consonance with the mandatory accounting
standards and statements issued by the Institute of Chartered
Accountants of India and the provisions of the Companies Act, 1956.
Accounting policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
b) Use of Estimates:
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the Financial Statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in which the
results are known/ materialized.
c) Fixed Assets:
Fixed assets are stated at historical cost including directly
attributable costs of bringing the assets to their working condition
and are net of credit under the CENVAT/VAT scheme, less accumulated
depreciation and impairment loss, if any.
Preoperative expenditure including borrowing cost (net of revenue) and
foreign exchange fluctuation incurred during the construction/trial run
of new project is allocated on an appropriate basis to fixed assets on
commissioning.
Capital work in progress includes advances paid to acquire capital
assets before the Balance Sheet date.
d) Depreciation:
Depreciation on Fixed Assets is provided using the Straight Line Method
in accordance with the rates prescribed in Schedule XIV of the
Companies Act, 1956.
e) Inventories:
Inventories are valued at cost or net realizable value whichever is
lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
selling expenses. The cost is determined on the basis of First in First
Out Method and includes expenditure in acquiring the inventories and
bringing them to their present location and condition. In the case of
manufactured inventories and work in progress, cost includes an
appropriate share of labour and manufacturing overheads.
f) Investments:
Investments are stated at cost. Provision for diminution, if any, is
made to recognize a decline, other than temporary, in the fair value of
investments.
g) Revenue Recognition:
Sales of products are recognized when the products are dispatched and
are stated inclusive of excise duty, sales tax, VAT, other taxes &
duties, trade discounts and sales returns. However, both excise duty
and VAT including education cess has been separately shown in profit
and loss account, after net off, to match the respective amount of
sales.
The Company generally follows mercantile system of accounting and all
income and expenditure items having a material bearing on the financial
statements are recognized on accrual basis. However, in respect of
differential excise duty and municipal dues, cash system has been
consistently adopted. However, it does not affect the profit
materially.
h) Foreign Currency Transactions:
i. Foreign currency transactions are recorded at the exchange rate
prevailing on the date of the transaction.
ii. Monetary items denominated in foreign currencies, if any at the
year end are restated at year end rates.
iii. Non monetary foreign currency items are carried at cost.
iv. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss
Account.
i) Miscellaneous Expenditure
Preoperative expenses of earlier years are being amortized in five
equal annual installments. Issue expenses have been capitalized with
machinery, electric installation and factory building in the ratio of
cost proposed during the initial public offer.
Issue expenses to theextent of allowable u/s 35D are being in five
equal annual installments.
j) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the provisions of Income
Tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between taxable and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
k) Earnings Per Share
The company reports basic and diluted Earnings Per Share (EPS) in
accordance with Accounting Standard 20 on "Earnings Per Share". Basic
EPS is computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year as adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.
l) Impairment of Assets
An assets is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impaired loss is charged to Profit
and Loss Account in the year in which an asset is identified as
impaired. The impaired loss in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
m) Provision, Contingent Liabilities and Contingent Assets
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to account. Contingent assets are neither recognized nor
disclosed in the financial statements.
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