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Accounting Policies of Uflex Ltd. Company

Mar 31, 2016

A. COMPANY AND ITS BACKGROUND

The Company was registered with the ROC, Delhi & Haryana under the
Registration number 55-32166 dated 21st June 1988. Old Registration
number has been converted into new Corporate Identification number
(CIN) L74899DL1988pLC032166

Registered office of the Company is situated at 305, 3rd Floor, Bhanot
Corner, Pamposh Enclave, Greater Kailash-I, New Delhi- 110 048

The Company has been engaged in the manufacture and sale of flexible
packaging products & offer a complete flexible packaging solution to
its customers across the globe.

B. SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Preparation of Financial Statements

The financial Statements are prepared in accordance with the Indian
Generally Accepted Accounting principal (GAAp) under the historical
cost convention on the accrual basis. GAAp comprises mandatory
accounting standards as prescribed by the Companies Act 2013 u/s 133 of
the Act, read with rule 7 of the Companies (Accounts) rules, 2014, the
provisions of Companies Act, 2013, and guidelines issued by the
Securities and Exchange Board of India (SEBI). Accounting policies have
been consistently applied.

b. Use of Estimates and Judgements

The preparation of the financial statements is in conformity with GAAP,
requires management to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets and
liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgements about the
carrying values of assets and liabilities that are readily apparent
from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on going concern
basis.

Revisions to accounting estimates are recognized in the period in which
the estimate is revised if the revision affects only that period, in
the period of the revision and future periods if the revision affects
both current and future.

c. Classification of Expenditure/Income

Except otherwise indicated:

i) All expenditure and income are accounted for under the natural heads
of account.

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

d. Valuation

i) Fixed Assets

a) Fixed Assets are normally accounted for on cost basis (net of CENVAT
credits) including the cost of installation, pre-operative expenses,
identifiable trial run expenses where incurred, eligible adjustment on
account of foreign exchange fluctuations and impairment losses.
Pre-operative expenses and identifiable trial run expenses incurred by
the company up to the date eligible assets are put to use for
commercial production are allocated to them in proportion to their
cost. The cost of fixed assets is adjusted for revaluation, if any,
done in any year as decided by the management so as to show the fixed
assets at their current value.

b) Self-constructed Fixed Assets are valued at cost including overheads
of the unit constructing the asset.

ii) Finished Goods

Finished goods are valued at lower of cost, based on weighted average
method, (except in case of machine manufacturing where specific
identification method is used) arrived after including depreciation on
plant & machinery, electrical installation and factory building, repair
& maintenance on factory building, specific manufacturing expenses
including excise duty and specific payments & benefits to employees or
net realisable value.

iii) Work-in-Progress

Work-in-progress are valued at lower of cost, based on weighted average
method, (except in case of machine manufacturing where specific
identification method is used) arrived after including depreciation on
plant & machinery, electrical installation and factory building, repair
& maintenance on factory building, specific manufacturing expenses and
specific payments & benefits to employees or net realisable value.

iv) Raw Material

Raw Materials are valued at lower of cost, based on first-in-first-out
method arrived at after including freight inward and other expenditure
directly attributable to acquisition or net realisable value.

v) Stores, fuel and packing materials are valued at lower of cost,
based on first-in-first-out method or net realisable value.

vi) Inter-unit transfers of goods and services / job work are valued at
cost price / the price agreed to between the units.

e. Cost of spares, tools, jigs & dies are charged to revenue.

f. Leases

i) Lease rentals paid on operating leases are charged to revenue.

ii) Lease rentals received under operating lease are recognized in the
statement of Profit & Loss.

g. Expenses incurred for issue of financial securities are charged to
Securities Premium Reserve.

h. Foreign Currency Transactions

i) Foreign currency monetary items remaining unsettled at the year end
are translated at year end rates. Non-monetary items which are carried
at historical cost denominated in a foreign currency are reported using
the exchange rate at the date of the transaction; and non-monetary
items which are carried at fair value or other similar valuation
denominated in foreign currency are reported using the exchange rates
that existed when the values were determined.

ii) Exchange differences on settlement / translation of monetary items,
are adjusted as income / expense through the Exchange Fluctuation
Account in the year they arise.

iii) Difference between the forward and exchange rate on the date of
transactions are adjusted over the period of the contract as an income
/ expense through the Exchange Fluctuation Account.

iv) Profit or loss on cancellation of forward contracts for
transactions, are adjusted as income / expense through Exchange
Fluctuation Account in the year they arise.

v) Exchanges difference arises on settlement / translation of foreign
currency monetary items relating to acquisition of fixed assets till
the period they are put to use for commercial production, are
capitalized to the cost of assets acquired and provided for over the
useful life of the fixed asset.

i. Depreciation

i) Normal depreciation on all fixed assets, except land and extra shift
depreciation on specific plant & machineries for the period of extra
shift worked, are provided from the date of put to use for commercial
production on straight line method at the useful life prescribed in
Schedule-II to the Companies Act, 2013 except for the followings, where
useful life is different than those prescribed in the Schedule II of
the Companies Act 2013:

ii) No depreciation is provided on leasehold land.

iii) Depreciation on additions / deletions to fixed assets is provided
on pro-rata basis from / to the date of additions / deletions.

iv) In case the financial year consists of the period less / more than
the normal period of 12 months, depreciation on fixed assets existing
at the beginning of the financial year as well as those acquired during
the said period are provided for the period covered on pro-rata basis.

j. Turnover

i) Gross sales are inclusive of inter-unit sale value and excise
duty/cess recoveries and exclusive of sales tax/value added tax.

ii) Sales returns / rate differences are adjusted from the sales of the
year in which the returns take place / rate differences accepted.

iii) Gross job work is inclusive of inter-unit job work value and
excise duty/service tax/cess recoveries.

iv) Consignment Sales are considered as Sales when goods are sold to
ultimate customer.

k. Purchases

i) purchases are inclusive of inter-unit purchase value and net of
CENVAT credits and materials consumed during trial run.

ii) purchases returns / rebates are adjusted from the purchases of the
year in which the returns take place / rebates allowed.

l. Investments

i) Long term investments are valued at their cost including brokerage,
fees and duty. However, if there is decline in value of investment,
other than temporary, the carrying amount of investment is reduced
recognizing the decline in value of each investment.

ii) Current investments are valued at cost or market price, whichever
is lower.

m. Employee Benefits

i) Defined Long Term benefit is recognized at the present value of the
amounts payable determined using actuarial valuation techniques.
Actuarial gain and losses in respect of post employment and other long
term benefits are charged to Statement of Profit & Loss.

ii) Defined Contribution Plans are charged to Statement of Profit &
Loss based on the contribution made to the specified fund.

iii) Short term employee benefits are charged to Statement of Profit &
Loss at the undiscounted amount in the year in which the related
service is rendered.

n. Claims by / Against The Company

Claims by / against the Company arising on any account are provided in
the accounts on receipts / acceptances.

o. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of
qualifying /eligible assets, intended for commercial production are
capitalised as part of the cost of such assets. All other borrowing
costs are recognized as an expense and are charged to revenue in the
year in which they are incurred.

p. Earning Per Share

In accordance with the Accounting Standard-20 (AS-20) "Earning per
Share" issued by The Institute of Chartered Accountants of India, Basic
Earning per Share is computed using the weighted average number of
Shares outstanding during the period & Diluted Earning per share is
computed using the weighted average number of shares outstanding after
adjusting the effect of all dilutive potential equity shares that were
outstanding during the period.

q. Provision For Taxation

i) Current Tax

provision for current tax is measured using the current tax rates after
making the necessary adjustments in accordance with the Income Tax
Computation & Disclosures Standards issued by the CBDT, to the items of
income / expenditure accounted for in the books of accounts as per
generally accepted accounting principles.

ii) Deferred Tax Assets / Liabilities

Deferred tax assets & liabilities are measured using the current tax
rates. When there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognised only to the extent that
there is virtual certainty of realisation of deferred tax assets. Other
deferred tax assets are recognised to the extent, there is reasonable
certainty of realisation of deferred tax assets. Such deferred tax
assets & other unrecognised deferred tax assets are re-assessed at each
Balance Sheet date and the carrying value of the same are adjusted
recognising the change in the value of each such deferred tax assets.

r. Research & Development

i) All revenue expenditure on research & development activities are
accounted for under their natural heads of revenue expenses accounts.

ii) All capital expenditure related to research & development
activities are accounted for under their natural heads of fixed assets
accounts.

s. Impairment

Management periodically assesses using external and internal sources
whether there is an indication that assets of concerned cash generating
unit may be impaired. Impairment loss, if any, is provided as per
Accounting Standard (AS-28) on Impairment of Assets.

t. Provisions, Contingent Liabilities and Contingent Assets

In accordance with the Accounting Standard AS - 29 issued by Institute
of Chartered Accountants of India a) provisions are made for the
present obligations where amount can be estimated reliably, and b)
contingent liabilities are disclosed for possible obligations arising
out of uncertain events not wholly in control of the company.
Contingent assets are neither recognised nor disclosed in the financial
statements.

u. Intangible Assets

i) Customised or separately purchased software is classified as
intangible assets at their cost and amortised over a period of five
years from date of put to use.

ii) All capital expenditures relating to patent / technology are
capitalized under the natural head of fixed assets account and
amortized over the period of contract.

iii) All revenue expenditure relating to use of patent / technology are
accounted for under the natural head of revenue expense account


Mar 31, 2015

A. Basis of Preparation of Financial Statements

The financial Statements are prepared in accordance with the Indian Generally Accepted Accounting Principal (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed by the Companies Act 2013 u/s 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of Companies Act, 2013, and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied.

b. Use of Estimates and Judgements

The preparation of the financial statements is in conformity with GAAP, requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed ongoing concern basis.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, in the period of the revision and future periods if the revision affects both current and future.

c. Classification of Expenditure / Income

Except otherwise indicated:

i) All expenditure and income are accounted for under the natural heads of account.

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

d. Valuation

i) Fixed Assets

a) Fixed Assets are normally accounted for on cost basis (net of CENVAT credits) including the cost of installation, pre-operative expenses, identifiable trial run expenses where incurred, eligible adjustment on account of foreign exchange fluctuations and impairment losses. Pre-operative expenses and identifiable trial run expenses incurred by the company up to the date eligible assets are put to use for commercial production are allocated to them in proportion to their cost. The cost of fixed assets is adjusted for revaluation, if any, done in any year as decided by the management so as to show the fixed assets at their current value.

b) Self-constructed Fixed Assets are valued at cost including overheads of the unit constructing the asset.

ii) Finished Goods

Finished goods are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specific identification method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair

& maintenance on factory building, specific manufacturing expenses including excise duty and specific payments & benefits to employees or net realisable value.

iii) Work-in-Progress

Work-in-Progress are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specific identification method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specific manufacturing expenses and specific payments & benefits to employees or net realisable value.

iv) Raw Materials

Raw Materials are valued at lower of cost, based on first-in-first-out method arrived at after including freight inward and other expenditure directly attributable to acquisition or net realisable value.

Stores, fuel and packing materials are valued at lower of cost, based on first-in-first-out method or net realisable value.

Inter-unit transfers of goods and services / job work are valued at cost price / the price agreed to between the units.

e. Cost of spares, tools, jigs & dies are charged to revenue.

f. Leases

i) Lease rentals paid on operating leases are charged to revenue.

ii) Lease rentals received under operating lease are recognized in the statement of Profit & Loss.

g. Expenses incurred for issue of financial securities are charged to Securities Premium

Reserve.

h. Foreign Currency Transactions

i) Foreign currency monetary items remaining unsettled at the year end are translated at year end rates. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in foreign currency are reported using the exchange rates that existed when the values were determined.

ii) Exchange differences on settlement / translation of monetary items, are adjusted as income / expense through the Exchange Fluctuation Account in the year they arise.

iii) Difference between the forward and exchange rate on the date of transactions are adjusted over the period of the contract as an income / expense through the Exchange Fluctuation Account.

iv) Profit or loss on cancellation of forward contracts for transactions, are adjusted as income / expense through Exchange Fluctuation Account in the year they arise.

v) Exchanges difference arises on settlement / translation of foreign currency monetary items relating to acquisition of fixed assets till the period they are put to use for commercial production, are capitalized to the cost of assets acquired and provided for over the useful life of the fixed asset.

i. Depreciation

i) Normal depreciation on all fixed assets, except land and extra shift depreciation on specific plant & machineries for the period of extra shift worked, are provided from the date of put to use for commercial production on straight line method at the useful life prescribed in Schedule-II to the Companies Act, 2013 except for the followings, where useful live is different than those prescribed in the Schedule II of the Companies Act 2013:

Particulars Description

Rotogravure Cylinders & Shims Over the useful life as technically (useful life 3 Years) specified by the management based on the past experience

Continuous process Plant Over the useful life as technically (useful life of 20 Years) specified by the management based on the past experience

ii) No depreciation is provided on leasehold land.

iii) Depreciation on additions / deletions to fixed assets is provided on pro-rata basis from / to the date of additions / deletions.

v) In case the financial year consists of the period less / more than the normal period of 12 months, depreciation on fixed assets existing at the beginning of the financial year as well as those acquired during the said period are provided for the period covered on pro-rata basis.

j. Turnover

i) Gross sales are inclusive of inter-unit sale value and excise duty/cess recoveries and exclusive of sales tax.

ii) Sales returns / rate differences are adjusted from the sales of the year in which the returns take place / rate differences accepted.

iii) Gross job work is inclusive of inter-unit job work value and excise duty/cess recoveries.

iv) Consignment Sales are considered as Sales when goods are sold to ultimate customer.

k. Purchases

i) Purchases are inclusive of inter-unit purchase value and net of CENVAT credits and materials consumed during trial run.

ii) Purchases returns / rebates are adjusted from the purchases of the year in which the returns take place / rebates allowed.

l. Investments

i) Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

ii) Current investments are valued at cost or market price, whichever is lower.

m. Employee Benefits

i) Defined Long Term benefitis recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Statement of Profit & Loss.

ii) Defined Contribution Plans are charged to Statement of Profit & Loss based on the contribution made to the specified fund.

iii) Short term employee benefits are charged to Statement of Profit & Loss at the undiscounted amount in the year in which the related service is rendered.

n. Claims by / Against the Company

Claims by / against the Company arising on any account are provided in the accounts on receipts / acceptances.

o. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying /eligible assets, intended for commercial production are capitalised as part of the cost of such assets. All other borrowing costs are recognized as an expense and are charged to revenue in the year in which they are incurred.

p. Earning Per Share

In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of Chartered Accountants of India, Basic Earning Per Share is computed using the weighted average number of Shares outstanding during the period & Diluted Earning per share is computed using the weighted average number of shares outstanding after adjusting the effect of all dilutive potential equity shares that were outstanding during the period.

q. Deferred Tax Assets / Liabilities

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re-assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

r. Research & Development

i) All revenue expenditure on research & development activities are accounted for under their natural heads of revenue expenses accounts.

ii) All capital expenditure related to research & development activities are accounted for under their natural heads of fixed assets accounts.

s. Impairment

Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

t. Provisions, Contingent Liabilities and Contingent Assets

In accordance with the Accounting Standard AS - 29 issued by Institute of Chartered Accountants of India a) provisions are made for the present obligations where amount can be estimated reliably, and b) contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the company. Contingent assets are neither recognised nor disclosed in the financial statements.

u. Intangible Assets

i) Customised or separately purchased software is classified as intangible assets at their cost and amortised over a period of five years from date of put to use.

ii) All capital expenditures relating to patent / technology are capitalized under the natural head of fixed assets account and amortized over the period of contract.

iii) All revenue expenditure relating to use of patent / technology are accounted for under the natural head of revenue expense account.


Mar 31, 2014

1 GENERAL

A. COMPANY AND ITS BACKGROUND

The Company was registered with the ROC, Delhi & Haryana under the Registration number 55-32166 dated 21st June 1988. Old Registration number has been converted into new Corporate Identification number (CIn) l74899Dl1988plC032166

The Registered Office of the Company is situated at 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash-I, new Delhi- 110 048

The Company has been engaged in the manufacture and sale of flexible packaging products & offer a complete flexible packaging solution to its customers across the globe.

B. SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Preparation of Financial Statements

The financial Statements are prepared in accordance with the Indian Generally Accepted Accounting principles (GAAp) under the historical cost convention on the accrual basis. GApp comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules,2006 (read with General Circular 15/2013 dated 13th September,2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013), the provisions of Companies Act,1956, and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied.

b. Use of estimates and Judgments

The preparation of the financial statements is in conformity with GAAP, requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on going concern basis.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, in the period of the revision and future periods if the revision affects both current and future.

c. Classification of Expenditure / Income

Except otherwise indicated:

i) All expenditure and income are accounted for under the natural heads of account.

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

d. Valuation

i) Fixed Assets

a) Fixed Assets are normally accounted for on cost basis (net of CENVAT credits) including the cost of installation, pre-operative expenses, identifiable trial run expenses where incurred, eligible adjustment on account of foreign exchange fluctuations and impairment losses. Pre-operative expenses and identifiable trial run expenses incurred by the company up to the date eligible assets are put to use for commercial production are allocated to them in proportion to their cost. The cost of fixed assets is adjusted for revaluation, if any, done in any year as decided by the Management so as to show the fxed assets at their current value.

b) Self-constructed Fixed Assets are valued at cost including overheads of the unit constructing the asset.

ii) Finished goods

Finished goods are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specific identification method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specific manufacturing expenses including excise duty and specific payments & benefits to employees or net realisable value.

iii) work-in-Progress

Work-in-progress are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specific identification method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specific manufacturing expenses and specific payments & benefits to employees or net realisable value.

iv) Raw materials

Raw Materials are valued at lower of cost, based on first-in-first-out method arrived at after including freight inward and other expenditure directly attributable to acquisition or net realisable value.

v) Stores, fuel and packing materials are valued at lower of cost, based on first-in-first-out method or net realisable value.

vi) Inter-unit transfers of goods and services / job work are valued at cost price / the price agreed to between the units.

e. Cost of spares, tools, jigs & dies are charged to revenue.

f. Leases

i) lease rentals paid on operating leases are charged to revenue.

ii) Lease rentals received under operating lease are recognized in the statement of Profit & Loss.

g. Expenses incurred for issue of financial securities are charged to Securities Premium Reserve.

h. Foreign currency transactions

i) Foreign currency monetary items remaining unsettled at the year end are translated at year-end rates. non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non- monetary items which are carried at fair value or other similar valuation denominated in foreign currency are reported using the exchange rates that existed when the values were determined.

ii) Exchange differences on settlement / translation of monetary items, are adjusted as income / expense through the Exchange Fluctuation Account in the year they arise.

iii) Difference between the forward and exchange rate on the date of transactions are adjusted over the period of the contract as an income / expense through the Exchange Fluctuation Account.

iv) Profit or loss on cancellation of forward contracts for transactions, are adjusted as income / expense through Exchange Fluctuation Account in the year they arise.

v) Exchanges difference arises on long term foreign currency monetary items relating to acquisition of fixed assets are capitalized to the cost of assets acquired and provided for over the remaining useful life of the fixed asset.

i. Depreciation

i) Normal depreciation on all fixed assets, except land and extra shift depreciation on specific plant & machineries for the period of extra shift worked, are provided from the date of put to use for commercial production on straight line method at the rates prescribed in Schedule- XIV to the Companies Act, 1956 except in respect of rotogravure cylinders & shims, where it is provided @ 33-1/3% p.a., based on the estimated useful life of assets assessed by the Management.

ii) no depreciation is provided on leasehold land.

iii) Depreciation on additions / deletions to fixed assets is provided on pro-rata basis from / to the date of additions / deletions.

iv) In case the financial year consists of the period less / more than the normal period of 12 months, depreciation on fixed assets existing at the beginning of the financial year as well as those acquired during the said period are provided for the period covered on pro-rata basis.

j. turnover

i) Gross sales are inclusive of inter-unit sale value and excise duty/cess recoveries and exclusive of sales tax.

ii) Sales returns / rate differences are adjusted from the sales of the year in which the returns take place / rate differences accepted.

iii) Gross job work is inclusive of inter-unit job work value and excise duty/cess recoveries.

iv) Consignment Sales are considered as Sales when goods are sold to ultimate customer.

k. Purchases

i) purchases are inclusive of inter-unit purchase value and net of CENVAT credits and materials consumed during trial run.

ii) purchases returns / rebates are adjusted from the purchases of the year in which the returns take place / rebates allowed.

l. Investments

i) long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

ii) Current investments are valued at cost or market price, whichever is lower.

m. Employee Benefits

i) Defined Long Term benefit is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Statement of Profit & Loss.

ii) Defined Contribution Plans are charged to Statement of Profit & Loss based on the contribution made to the specified fund.

iii) Short term employee benefits are charged to Statement of Profit & Loss at the undiscounted amount in the year in which the related service is rendered.

n. Claims by / against the Company

Claims by / against the Company arising on any account are provided in the accounts on receipts / acceptances.

o. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying /eligible assets, intended for commercial production are capitalised as part of the cost of such assets. All other borrowing costs are recognized as an expense and are charged to revenue in the year in which they are incurred.

p. earning Per Share

In accordance with the Accounting Standard-20 (AS-20) "Earning per Share" issued by The Institute of Chartered Accountants of India, Basic Earning per Share is computed using the weighted average number of Shares outstanding during the period & Diluted Earning per share is computed using the weighted average number of shares outstanding after adjusting the effect of all dilutive potential equity shares that were outstanding during the period.

q. Deferred tax Assets / Liabilities

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re-assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

r. Research & Development

i) All revenue expenditure on research & development activities are accounted for under their natural heads of revenue expenses accounts.

ii) All capital expenditure related to research & development activities are accounted for under their natural heads of fixed assets accounts.

s. Impairment

Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

t. Provisions, Contingent Liabilities and Contingent Assets

In accordance with the Accounting Standard AS-29 issued by Institute of Chartered Accountants of India a) provisions are made for the present obligations where amount can be estimated reliably, and b) contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the company. Contingent assets are neither recognised nor disclosed in the financial statements.

u. Intangible Assets

i) Customised or separately purchased software is classified as intangible assets at their cost and amortised over a period of five years from date of put to use.

ii) All capital expenditures relating to patent / technology are capitalized under the natural head of fixed assets account and amortized over the period of contract.

iii) All revenue expenditure relating to use of patent / technology are accounted for under the natural head of revenue expense account.


Mar 31, 2013

A. Basis of Preparation of Financial Statements

Financial Statements are prepared under the historical cost convention, except for certain fi xed assets which are revalued, in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956.

b. Use of Estimates and Judgements

The preparation of the fi nancial statements is in conformity with Indian Accounting Standards and requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets and liabilities that are readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a going basis.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, in the period of the revision and future periods if the revision affects both current and future.

c. Classifi cation Of Expenditure / Income

Except otherwise indicated:

i) All expenditure and income are accounted for under the natural heads of account.

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

d. Valuation

i) Fixed Assets

a) Fixed Assets are normally accounted for on cost basis (net of CENVAT credits) including the cost of installation, pre-operative expenses, identifi able trial run expenses where incurred, eligible adjustment on account of foreign exchange fl uctuations and impairment losses. Pre-operative expenses and identifi able trial run expenses incurred by the company up to the date eligible assets are put to use for commercial production are allocated to them in proportion to their cost. The cost of fi xed assets is adjusted for revaluation, if any, done in any year as decided by the management so as to show the fi xed assets at their current value.

b) Self-constructed Fixed Assets are valued at cost including overheads of the unit constructing the asset.

ii) Finished Goods

Finished goods are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specifi c identifi cation method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specifi c manufacturing expenses including excise duty and specifi c payments & benefi ts to employees or net realisable value. iii) Work-in-Progress

Work-in-Progress are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specifi c identifi cation method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specifi c manufacturing expenses and specifi c payments & benefi ts to employees or net realisable value.

iv) Raw Materials

Raw Materials are valued at lower of cost, based on fi rst-in-fi rst-out method arrived at after including freight inward and other expenditure directly attributable to acquisition or net realisable value.

v) Stores, fuel and packing materials are valued at lower of cost, based on fi rst-in-fi rst-out method or net realisable value.

vi) Inter-unit transfers of goods and services / job work are valued at cost price / the price agreed to between the units.

e. Cost of spares, tools, jigs & dies are charged to revenue.

f. Leases

i) Lease rentals paid on operating leases are charged to revenue.

ii) Lease rentals received under operating lease are recognized in the Statement of Profi t & Loss.

g. Expenses incurred for issue of fi nancial securities are charged to Securities Premium Reserve.

h. Foreign Currency Transactions

i) Foreign currency monetary items remaining unsettled at the year end are translated at year end rates. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in foreign currency are reported using the exchange rates that existed when the values were determined.

ii) Exchange differences on settlement / translation of monetary items, are adjusted as income / expense through the Exchange Fluctuation Account in the year they arise.

iii) Difference between the forward and exchange rate on the date of transactions are adjusted over the period of the contract as an income / expense through the Exchange Fluctuation Account.

iv) Profi t or loss on cancellation of forward contracts for transactions, are adjusted as income / expense through Exchange Fluctuation Account in the year they arise.

i. Depreciation

i) Normal depreciation on all fi xed assets, except land and extra shift depreciation on specifi c plant & machineries for the period of extra shift worked, are provided from the date of put to use for commercial production on straight line method at the rates prescribed in Schedule-XIV to the Companies Act, 1956 except in respect of rotogravure cylinders & shims, where it is provided @ 33-1/3% p.a., based on the estimated useful life of assets assessed by the management.

ii) No depreciation is provided on leasehold land.

iii) Depreciation on additions / deletions to fi xed assets is provided on pro-rata basis from / to the date of additions / deletions.

iv) In case the fi nancial year consists of the period less / more than the normal period of 12 months, depreciation on fi xed assets existing at the beginning of the fi nancial year as well as those acquired during the said period are provided for the period covered on pro-rata basis.

j. Turnover

i) Gross sales are inclusive of inter-unit sale value and excise duty/cess recoveries and exclusive of sales tax.

ii) Sales returns / rate difference are adjusted from the sales of the year in which the returns take place / rate difference accepted. iii) Gross job work is inclusive of inter-unit job work value and excise duty/cess recoveries. iv) Consignment Sales are considered as Sales when goods are sold to Ultimate customer.

k. Purchases

i) Purchases are inclusive of inter-unit purchase value and net of CENVAT credits and materials consumed during trial run.

ii) Purchases returns / rebates are adjusted from the purchases of the year in which the returns take place / rebates allowed.

l. Investments

i) Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

ii) Current investments are valued at cost or market price, whichever is lower.

m. Employee Benefi ts

i) Defi ned Long Term benefi t is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefi ts are charged to Statement of Profi t & Loss.

ii) Defi ned Contribution Plans are charged to Statement of Profi t & Loss based on the contribution made to the specifi ed fund.

iii) Short term employee benefi ts are charged to Statement of Profi t & Loss at the undiscounted amount in the year in which the related service is rendered.

n. Claims by / Against the Company

Claims by / against the Company arising on any account are provided in the accounts on receipts / acceptances.

o. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying /eligible assets, intended for commercial production are capitalised as part of the cost of such assets. All other borrowing costs are recognized as an expense and are charged to revenue in the year in which they are incurred.

p. Earning Per Share

In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of Chartered Accountants of India, Basic Earning Per Share is computed using the weighted average number of Shares outstanding during the period & Diluted Earning per share is computed using the weighted average number of shares outstanding after adjusting the effect of all dilutive potential equity shares that were outstanding during the period.

q. Deferred Tax Assets / Liabilities

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re-assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

r. Research & Development

i) All revenue expenditure on research & development activities are accounted for under their natural heads of revenue expenses accounts. ii) All capital expenditure related to research & development activities are accounted for under their natural heads of fi xed assets accounts.

s. Impairment

Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

t. Provisions, Contingent Liabilities and Contingent Assets

In accordance with the Accounting Standard AS – 29 issued by Institute of Chartered Accountants of India a) provisions are made for the present obligations where amount can be estimated reliably, and b) contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the company. Contingent assets are neither recognised nor disclosed in the fi nancial statements.

u. Intangible Assets

i) Customised or separately purchased software is classifi ed as intangible assets at their cost and amortised over a period of fi ve years from date of put to use.

ii) All capital expenditures relating to patent / technology are capitalized under the natural head of fi xed assets account and amortized over the period of contract.


Mar 31, 2011

1. CLASSIFICATION OF EXPENDITURE / INCOME

Except otherwise indicated:

i) All expenditure and income are accounted for under the natural heads of account. ii) All expenditure and income are accounted for on accrual basis.

2. VALUATION

i) Fixed Assets

a) Fixed Assets are normally accounted for on cost basis (net of CENVAT credits) including the cost of installation, pre-operative expenses, identifiable trial run expenses where incurred, eligible adjustment on account of foreign exchange fluctuations and impairment losses. Pre-operative expenses and identifiable trial run expenses incurred by the company up to the date eligible assets are put to use for commercial production are allocated to them in proportion to their cost. The cost of fixed assets is adjusted for revaluation, if any, done in any year as decided by the management so as to show the fixed assets at their current value.

b) Self-constructed Fixed Assets are valued at cost including overheads of the unit constructing the asset.

ii) Finished Goods

Finished goods are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specific identification method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specific manufacturing expenses including excise duty and specific payments & benefits to employees or net realisable value.

iii) Work-in-Progress

Work-in-Progress are valued at lower of cost, based on weighted average method, (except in case of machine manufacturing where specific identification method is used) arrived after including depreciation on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specific manufacturing expenses and specific payments & benefits to employees or net realisable value.

iv) Raw Materials

Raw Materials are valued at lower of cost, based on first-in-fi rst-out method arrived at after including freight inward and other expenditure directly attributable to acquisition or net realisable value.

v) Stores, fuel and packing materials are valued at lower of cost, based on first-in-first-out method or net realisable value.

vi) Inter-unit transfers of goods and services / job work are valued at cost price / the price agreed to between the units.

3. Cost of spares, tools, jigs & dies are charged to revenue.

4. LEASES

i) Lease rentals paid on operating leases are charged to revenue.

ii) Lease rentals received under operating lease are recognized in the statement of Profit & Loss Account.

5. Expenses incurred for issue of financial securities are charged to Securities Premium Account.

6. FOREIGN CURRENCY TRANSACTIONS

i) Foreign currency monetary items remaining unsettled at the year end are translated at year end rates. Non- monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in foreign currency are reported using the exchange rates that existed when the values were determined.

ii) Exchange differences on settlement / translation of monetary items, are adjusted as income / expense through the Exchange Fluctuation Account in the year they arise.

iii) Difference between the forward and exchange rate on the date of transactions are adjusted over the period of the contract as an income / expense through the Exchange Fluctuation Account.

iv) Profit or loss on cancellation of forward contracts for transactions, are adjusted as income / expense through Exchange Fluctuation Account in the year they arise.

7. DEPRECIATION

i) Normal depreciation on all fixed assets, except land and extra shift depreciation on specific plant & machineries for the period of extra shift worked, are provided from the date of put to use for commercial production on straight line method at the rates prescribed in Schedule-XIV to the Companies Act, 1956.

ii) No depreciation is provided on leasehold land.

iii) Depreciation on additions / deletions to fixed assets is provided on pro-rata basis from / to the date of additions / deletions.

iv) In case the financial year consists of the period less / more than the normal period of 12 months, depreciation on fixed assets existing at the beginning of the financial year as well as those acquired during the said period are provided for the period covered on pro rata basis.

v) Depreciation on additions / deletions to the fixed assets due to eligible foreign exchange fluctuations is provided on pro rata basis from the date of additions / deletions.

8. TURNOVER

i) Gross sales are inclusive of inter-unit sale value and excise duty/cess recoveries and sales tax.

ii) Sales returns / rate difference are adjusted from the sales of the year in which the returns take place / rate difference accepted.

iii) Gross job work is inclusive of inter-unit job work value and excise duty/cess recoveries.

iv) Consignment Sales are considered as Sales when goods are sold to Ultimate customer.

9. PURCHASES

i) Purchases are inclusive of inter-unit purchase value and net of CENVAT credits and materials consumed during trial run.

ii) Purchases returns / rebates are adjusted from the purchases of the year in which the returns take place / rebates allowed.

10. INVESTMENTS

i. Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

ii. Short term investments are valued at cost or market price, whichever is lower.

11. EMPLOYEE BENEFITS

i. Defined Long Term benefit (other than leave encashment) is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit & Loss Account.

ii. Defined long term benefits in respect of leave encashment is charged to profit & loss account based on the leave entitlement of employees remaining unutilised at the end of the year, at the undiscounted amount.

iii. Defined Contribution Plans are charged to profit & loss account based on the contribution made to the specified fund.

iv. Short term employee benefits are charged to Profit & Loss Account at the undiscounted amount in the year in which the related service is rendered.

12. CLAIMS BY / AGAINST THE COMPANY

Claims by / against the Company arising on any account are provided in the accounts on receipts / acceptances.

13. BORROWING COST

Borrowing cost attributable to the acquisition or construction of qualifying /eligible assets, intended for commercial production are capitalised as part of the cost of such assets. All other borrowing costs are recognized as an expense and are charged to revenue in the year in which they are incurred.

14. EARNING PER SHARE

In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of Chartered Accountants of India, Basic Earning Per Share is computed using the weighted average number of Shares outstanding during the period & Diluted Earning per share is computed using the weighted average number of shares outstanding after adjusting the effect of all dilutive potential equity shares that were outstanding during the period.

15. DEFERRED TAX ASSETS / LIABILITIES

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, Deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re- assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

16. RESEARCH & DEVELOPMENT

i) All revenue expenditure on research & development activities are accounted for under their natural heads of revenue expenses accounts.

ii) All capital expenditure related to research & development activities are accounted for under their natural heads of fixed assets accounts.

17. IMPAIRMENT

Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

18. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

In accordance with the Accounting Standard AS - 29 issued by Institute of Chartered Accountants of India a) provisions are made for the present obligations where amount can be estimated reliably, and b) contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the company. Contingent assets are neither recognised nor disclosed in the fi nancial statements.

19. INTANGIBLE ASSETS

Customised or separately purchased software is classified as intangible assets at their cost and amortised over a period of five years from date of put to use.

 
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