Mar 31, 2016
I. SIGNIFICANT ACCOUNTING POLICIES
A. System of Accounting: The Financial Statements are prepared under historical cost convention and on accrual basis in accordance with the applicable accounting standards.
B. Use of Estimates: The preparation of the financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.
C. Recognition of Income and Expenditure: Revenue from sale transaction is recognized as and when the property in the goods is sold /transferred to the buyer for a definite consideration. Revenue from service transactions and other source is recognized on the completion of the contract. Dividends from investments, export incentive under Duty Drawback scheme are recognized when the right to receive payments/credit is established and there is no uncertainty regarding the amount of consideration or its collectability.
D. Fixed Assets/Borrowing Costs: Fixed Assets are capitalized at cost inclusive of erection expenses and other incidental expenses in connection with the acquisition of the assets and net of Cenvat Credit /TED and VAT, if any, to the extent it could be adjusted against the Excise Duty/VAT liability of the Company. The borrowing cost on the additions to fixed assets is capitalized in accordance with AS 16.
E. Depreciation: Depreciation on Fixed Assets has been provided on useful life of the assets in accordance with Schedule II of the Companies Act, 2013.
F. Taxation: Provision for taxation is made as per estimated total income after considering various reliefs under the provisions of the Income-Tax Act, 1961. In accordance with AS 22, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been enacted as of the balance sheet date.
G. Employee Benefits: The provision has been made as required under AS 15. Bonus has been provided as per practice followed in earlier years. For Gratuity, Leave encashment and accumulated compensated absences provision has been made based on the estimates provided by an actuary.
H. Foreign Exchange Transactions: The transactions in respect of import of materials and export sales have been accounted for at the rates of exchange prevailing on the date of the transactions. However, in respect of transactions remaining unpaid/unrealized, exchange rates prevailing at the end of the year have been adopted. Difference arising out of fluctuation in the exchange for the above transaction has been taken to a separate account, which is debited/credited to the Profit and Loss Account. Wherever Forward Contracts have been entered, the premium or discount has been recognized over the period of the contract and the exchange differences on these contracts have been adjusted during the period in which the differences have taken place. All forward contracts have been entered only for import or export transactions of the Company and no contract has been entered for speculative purposes. The Company has no foreign operations.
I. Impairment of Assets: The carrying amount of the fixed assets is reviewed for provision for impairment as required under AS 28. In the opinion of the Company, the recoverable amount of the fixed assets of the Company will not be lower than the book value of the fixed assets. Hence no provision has been made for impairment.
J. Investments: Investments are shown at cost. Investment fluctuation reserve has been created for the diminution in value of quoted investments.
K. Provisions, contingent liabilities and contingent assets: Provisions involving substantial degree of estimation in measurement are 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 financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
L. Earnings Per Share: Basic Earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
M. Cash flow Statement: Cash flows are reported using the indirect method. Closing balances of cash includes cash and cash equivalents in hand and balances in bank in current accounts.
N. Segment Reporting: Business segments are identified based on the nature of products and services. For reporting the business has been split into three segments - Engineering, Textiles and Windmills. Power generated from windmills is wheeled through Electricity Board and adjusted against the consumption of power by the Company. The entire value of power generated is treated as sale to Electricity Board and included in the sales turnover. Self Consumption is not considered for Inter Segment Revenue/Adjustments, as has been done in the past.
The Company is holding 26.2% of equity shares in M/s Veejay Sales and Services Limited. The financial details of the above company and the value of investments computed as specified in AS23 are given below
Financial Details of the Associate Company, M/s Veejay Sales and Services Limited
Mar 31, 2015
A. system of accounting: The Financial Statements are prepared under
historical cost convention and on accrual basis in accordance with the
applicable accounting standards.
B. Use of estimates: The preparation of the financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognized
in the period in which the results are known/materialized.
C. Recognition of Income and Expenditure: Revenue from sale
transaction is recognized as and when the property in the goods is sold
/transferred to the buyer for a definite consideration. Revenue from
service transactions and other source is recognized on the completion
of the contract. Dividends from investments, export incentive under
Duty Drawback scheme are recognized when the right to receive
payments/credit is established and there is no uncertainty regarding
the amount of consideration or its collectability.
D. fixed assets/Borrowing costs: Fixed Assets are capitalized at cost
inclusive of erection expenses and other incidental expenses in
connection with the acquisition of the assets and net of Cenvat Credit
/TED and VAT, if any, to the extent it could be adjusted against the
Excise Duty/VAT liability of the Company. The borrowing cost on the
additions to fixed assets is capitalized in accordance with AS 16.
E. Depreciation: Depreciation on Fixed Assets has been provided on
useful life of the assets in accordance with Schedule II of the
Companies Act, 2013. Depreciable value of assets not having useful life
as at 01-04-2014 has been adjusted in retained earnings.
F. taxation: Provision for taxation is made as per estimated total
income after considering various reliefs under the provisions of the
Income-Tax Act, 1961. In accordance with AS 22, the deferred tax for
timing differences between the book and tax Profits for the year is
accounted for using the tax rates and laws that have been enacted as of
the balance sheet date.
G. Employee Benefits: The provision has been made as required under AS
15. Bonus has been provided as per practice followed in earlier years.
For Gratuity, Leave encashment and accumulated compensated absences
provision has been made based on the estimates provided by an actuary.
H. foreign exchange transactions: The transactions in respect of import
of materials and export sales have been accounted for at the rates of
exchange prevailing on the date of the transactions. However, in
respect of transactions remaining unpaid/unrealized, exchange rates
prevailing at the end of the year have been adopted. Difference arising
out of fluctuation in the exchange for the above transaction has been
taken to a separate account, which is debited/credited to the Profit
and Loss Account. Wherever Forward Contracts have been entered, the
premium or discount has been recognized over the period of the contract
and the exchange differences on these contracts have been adjusted
during the period in which the differences have taken place. All
forward contracts have been entered only for import or export
transactions of the Company and no contract has been entered for
speculative purposes. The Company has no foreign operations.
I. Impairment of Assets: The carrying amount of the fixed assets is
reviewed for provision for impairment as required under AS 28. In the
opinion of the Company, the recoverable amount of the fixed assets of
the Company will not be lower than the book value of the fixed assets.
Hence no provision has been made for impairment.
J. investments: Investments are shown at cost. Investment fluctuation
reserve has been created for the diminution in value of quoted
investments.
K. Provisions, contingent liabilities and contingent assets: Provisions
involving substantial degree of estimation in measurement are
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 financial statements. Contingent assets are neither recognized
nor disclosed in the financial statements. Provisions, contingent
liabilities and contingent assets are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
L. Earning Per share: Basic Earning per share is calculated by dividing
the net Profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year.
M. Cash flow Statement: Cash flows are reported using the indirect
method. Closing balances of cash includes cash and cash equivalents in
hand and balances in bank in current accounts.
N. Segment Reporting: Business segments are identified based on the
nature of products and services. For reporting the business has been
split into three segments  Engineering, Textiles and Windmills. Power
generated from windmills is wheeled through Electricity Board and
adjusted against the consumption of power by the Company and the
Subsidiary Company. The entire value of power generated is treated as
sale to Electricity Board and included in the sales turnover. Self
Consumption is not considered for Inter Segment Revenue/Adjustments, as
has been done in the past.
Mar 31, 2014
A. System of Accounting: The Financial Statements are prepared under
historical cost convention and on accrual basis in accordance with the
applicable accounting standards.
B. Use of Estimates: The preparation of the financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognized
in the period in which the results are known/materialized.
C. Recognition of Income and Expenditure: Revenue from sale transaction
is recognized as and when the property in the goods is sold
/transferred to the buyer for a definite consideration. Revenue from
service transactions and other source is recognized on the completion
of the contract. Dividends from investments, export incentive under
Duty Drawback scheme are recognized when the right to receive
payments/credit is established and there is no uncertainty regarding
the amount of consideration or its collectability.
D. Fixed Assets/Borrowing Costs: Fixed Assets are capitalized at cost
inclusive of erection expenses and other incidental expenses in
connection with the acquisition of the assets and net of Cenvat Credit
and VAT, if any. The borrowing cost on the additions to fixed assets is
capitalized in accordance with AS 16.
E. Depreciation: Depreciation has been provided on straight- line
method in respect of all the assets in accordance with Schedule XIV of
the Companies Act, 1956. Extra shift depreciation has been provided for
full year, even if the plant has run only for part of the year on extra
shifts. Depreciation on additions during the year has been provided on
pro-rata for the period for which the assets have been put to use. Wind
Turbines have been classified as continuous process plant and
depreciated accordingly as has been done in the past.
F. Taxation: Provision for taxation is made as per estimated total
income after considering various reliefs under the provisions of the
Income-Tax Act, 1961. The book profit tax paid in accordance with
Section 115JB, which is in excess of the normal tax due and which can
be adjusted against tax liability for future periods, is treated as
advance tax. In accordance with AS 22, the deferred tax for timing
differences between the book and tax profits for the year is accounted
for using the tax rates and laws that have been enacted as of the
balance sheet date.
G. Employee Benefits: The provision has been made as required under AS
15. Bonus has been provided as per practice followed in earlier years.
For Gratuity, Leave encashment and accumulated compensated absences
provision has been made based on the estimates provided by an actuary.
H. Foreign Exchange Transactions: The transactions in respect of import
of materials and export sales have been accounted for at the rates of
exchange prevailing on the date of the transactions. However, in
respect of transactions remaining unpaid/unrealized, exchange rates
prevailing at the end of the year have been adopted. Difference arising
out of fluctuation in the exchange for the above transaction has been
taken to a separate account, which is debited/credited to the Profit
and Loss Account. Wherever Forward Contracts have been entered, the
premium or discount has been recognized over the period of the contract
and the exchange differences on these contracts have been adjusted
during the period in which the differences have taken place. All
forward contracts have been entered only for import or export
transactions of the Company and no contract has been entered for
speculative purposes.
I. Impairment of Assets: The carrying amount of the fixed assets is
reviewed for provision for impairment as required under AS 28. In the
opinion of the Company, the recoverable amount of the fixed assets of
the Company will not be lower than the book value of the fixed assets.
Hence no provision has been made for impairment.
J. Investments: Investments are shown at cost. Investment fluctuation
reserve has been created for the diminution in value of quoted
investments.
K. Provisions, contingent liabilities and contingent assets: Provisions
involving substantial degree of estimation in measurement are
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 financial statements. Contingent assets are neither recognized
nor disclosed in the financial statements. Provisions, contingent
liabilities and contingent assets are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
L. Earning Per Share: Basic Earning per share is calculated by dividing
the net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year.
M. Cash flow Statement: Cash flows are prepared under the "indirect
method". Closing balances of cash includes cash and cash equivalents in
hand and balances in bank in current accounts.
N. Segment Reporting: Business segments are identified based on the
nature of products and services. For reporting, the business has been
split into two segments - one representing Engineering activities
manufacturing textile machinery and the other representing the
generation of power by wind energy. Power generated from windmills is
wheeled through Electricity Board and adjusted against the consumption
of power by the Company and the Subsidiary Company. The entire value of
power generated is treated as sale to Electricity Board and included in
the sales turnover. The adjustment to Subsidiary Company and self
consumption is not considered for Inter Segment Revenue/Adjustments, as
has been done in the past.
Mar 31, 2013
A. System of Accounting: The Financial Statements are prepared under
the historical cost convention, and on accrual basis in accordance with
the applicable accounting standards.
B. Use of estimates: The preparation of the fnancial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the fnancial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognized
in the period in which the results are known/materialized.
C. Recognition of Income and Expenditure: Revenue from sale
transaction is recognized as and when the property in the goods is
sold/transferred to the buyer for a defnite consideration. Revenue
from service transactions and other source is recognized on the
completion of the contract. Dividends from investments, export
incentive under Duty Drawback scheme are recognized when the right to
receive payments/credit is established and there is no uncertainty
regarding the amount of consideration or its collectability.
d. fixed assets/Borrowing costs: Fixed Assets are capitalized at cost
inclusive of erection expenses and other incidental expenses in
connection with the acquisition of the assets and net of Cenvat Credit
and VAT, if any. The borrowing cost on the additions to fxed assets is
capitalized in accordance with AS 16.
E. Depreciation: Depreciation has been provided on straight-line Method
in respect of all the assets in accordance with Schedule XIV of the
Companies Act, 1956. Extra shift depreciation has been provided for
full year, even if the plant has run only for part of the year on extra
shifts. Depreciation on additions during the year has been provided on
pro-rata for the period for which the assets have been put to use. Wind
Turbines have been classifed as continuous process plant and
depreciated accordingly as has been done in the past.
f. taxation: Provision for taxation is made as per estimated total
income after considering various reliefs under the provisions of the
Income-Tax Act, 1961. The book proft tax paid in accordance with
Section 115JB, which is in excess of the normal tax due and which can
be adjusted against tax liability for future periods, is treated as
advance tax. In accordance with AS 22, the deferred tax for timing
differences between the book and tax profts for the year is accounted
for using the tax rates and laws that have been enacted as of the
balance sheet date.
G. inventory Valuation
1) Raw Material At weighted average cost
2) Components and Stock of Stores At weighted average cost
3) Finished Goods At cost or net realisable value whichever is lower
(inclusive of Excise Duty)
4) Work-in-Progress At estimated cost
5) Scrap/Waste At estimated Cost or net realisable value whichever is
lower (inclusive of Excise Duty, wherever applicable).
H. Employee Benefts: The provision has been made as required under AS
15. Bonus has been provided as per practice followed in earlier years.
For Gratuity, Leave encashment and accumulated compensated absences
provision has been made based on the estimates provided by an actuary.
I. Foreign Exchange Transactions: The transactions in respect of import
of materials and export sales have been accounted for at the rates of
exchange prevailing on the date of the transactions. However, in
respect of transactions remaining unpaid/unrealized, exchange rates
prevailing at the end of the year have been adopted. Difference arising
out of fuctuation in the exchange for the above transaction has been
taken to a separate account, which is debited/credited to the Proft and
Loss Account. Wherever Forward Contracts have been entered, the
premium or discount has been recognized over the period of the contract
and the exchange differences on these contracts have been adjusted
during the period in which the differences have taken place. All
forward contracts have been entered only for import or export
transactions of the Company and no contract has been entered for
speculative purposes.
J. impairment of assets: The carrying amount of the fixed assets is
reviewed for provision for impairment as required under AS 28. In the
opinion of the Company, the recoverable amount of the fxed assets of
the Company will not be lower than the book value of the fxed assets.
Hence no provision has been made for impairment.
K. investments: Investments are shown at cost. Investment fuctuation
reserve has been created for the diminution in value of quoted
investments.
L. Provisions, contingent liabilities and contingent assets: Provisions
involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outfow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to fnancial statements. Contingent assets are neither recognized
nor disclosed in the fnancial statements. Provisions, contingent
liabilities and contingent assets are reviewed at each balance sheet
date and adjusted to refect the current best estimates.
M. earning Per share: Basic Earning per share is calculated by dividing
the net proft or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year.
N. Cash fow Statement: Cash fows are prepared under "indirect method."
Closing balances of cash includes cash and cash equivalents in hand and
balances in bank in current accounts.
o. segment reporting: Business segments are identified based on the
nature of products and services. For reporting the business has been
split into two segments  one representing Engineering activities
manufacturing textile machinery and the other representing the
generation of power by wind energy. Power generated from windmills is
wheeled through Electricity Board and adjusted against the consumption
of power by the Company and the Subsidiary Company. The entire value of
power generated is treated as sale to Electricity Board and included in
the sales turnover. The adjustment to Subsidiary Company and self
consumption is not considered for Inter Segment Revenue/Adjustments, as
has been done in the past.
Mar 31, 2012
A. System of Accounting: The Financial Statements are prepared under
historical cost convention and on accrual basis in accordance with the
applicable accounting standards.
B. Use of Estimates: The preparation of the financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognized
in the period in which the results are known/materialized.
C. recognition of income and expenditure: Revenue from sale
transaction is recognized as and when the property in the goods is sold
/transferred to the buyer for a definite consideration. Revenue from
service transactions and other source is recognized on the completion
of the contract. Dividends from investments, export incentive under
Duty Drawback scheme are recognized when the right to receive
payments/credit is established and there is no uncertainty regarding
the amount of consideration or its collectability.
D. fixed assets/Borrowing costs: Fixed Assets are capitalized at cost
inclusive of erection expenses and other incidental expenses in
connection with the acquisition of the assets and net of Cenvat Credit
and VAT, if any. The borrowing cost on the additions to fixed assets is
capitalized in accordance with AS 16.
E. depreciation: Depreciation has been provided on straight- line
Method in respect of all the assets in accordance with Schedule XIV of
the Companies Act, 1956. All buildings have been depreciated at the
rate 3.34%. Accessories/power control units, wherever they are attached
to the machines, have been depreciated at the same rate applicable for
machinery. All electrical equipments including fans, air circulators
and air conditioners have been depreciated at the rate of 7.07%. Extra
shift depreciation has been provided for full year, even if the plant
has run only for part of the year on extra shifts. Depreciation on
additions during the year has been provided on pro-rata for the period
for which the assets have been put to use. For assets of value less
than Rs. 5,000/- acquired during the year, 100% depreciation has been
provided.
F. taxation: Provision for taxation is made as per estimated total
income after considering various reliefs under the provisions of the
Income-Tax Act, 1961. The book profit tax paid in accordance with
Section 115JB, which is in excess of the normal tax due and which can
be adjusted against tax liability for future periods, is treated as
advance tax. In accordance with AS 22, the deferred tax for timing
differences between the book and tax profits for the year is accounted
for using the tax rates and laws that have been enacted as of the
balance sheet date.
G. inventory Valuation
1) Raw Material At weighted average cost
2) Components and Stock of Stores At weighted average cost
3) Finished Goods At cost or net realisable
value whichever is lower
(inclusive of Excise Duty)
4) Work - in Progress At estimated cost
5) Scrap/Waste At estimated Cost or net
realisable value whichever is
lower (inclusive of Excise
Duty, wherever applicable).
H. employee Benefits: The provision has been made as required under AS
15. Bonus has been provided as per practice followed in earlier years.
For Gratuity, Leave encashment and accumulated compensated absences
provision has been made based on the estimates provided by an actuary.
I. foreign exchange transactions: The transactions in respect of import
of materials and export sales have been accounted for at the rates of
exchange prevailing on the date of the transactions. However, in
respect of transactions remaining unpaid/unrealized, exchange rates
prevailing at the end of the year have been adopted. Difference arising
out of fluctuation in the exchange for the above transaction has been
taken to a separate account, which is debited/credited to the Profit
and Loss Account. Wherever Forward Contracts have been entered, the
premium or discount has been recognized over the period of the contract
and the exchange differences on these contracts have been adjusted
during the period in which the differences have taken place. All
forward contracts have been entered only for import or export
transactions of the Company and no contract has been entered for
speculative purposes.
J. impairment of assets: The carrying amount of the fixed assets is
reviewed for provision for impairment as required under AS 28. In the
opinion of the Company, the recoverable amount of the fixed assets of
the Company will not be lower than the book value of the fixed assets.
Hence no provision has been made for impairment.
K. investments: Investments are shown at cost. Investment fluctuation
reserve has been created for the diminution in value of quoted
investments.
L. Provisions, contingent liabilities and contingent assets: Provisions
involving substantial degree of estimation in measurement are
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 financial statements. Contingent assets are neither recognized
nor disclosed in the financial statements. Provisions, contingent
liabilities and contingent assets are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
M. earning Per share: Basic Earning per share is calculated by dividing
the net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year.
N. cash flow statement: Cash flows are reported using the indirect
method. Closing balances of cash includes cash and cash equivalents in
hand and balances in bank in current accounts.
O. segment reporting: Business segments are identified based on the
nature of products and services. For reporting the business has been
split into two segments à one representing Engineering activities
manufacturing textile machinery and the other representing the
generation of power by wind energy. Power generated from windmills is
wheeled through Electricity Board and adjusted against the consumption
of power by the Company and the Subsidiary Company. The entire value of
power generated is treated as sale to Electricity Board and included in
the sales turnover. The adjustment to Subsidiary Company and self
consumption is not considered for Inter Segment Revenue/Adjustments, as
has been done in the past.
Mar 31, 2011
(A) System of Accounting : The Financial Statements are prepared under
historical cost convention and on accrual basis in accordance with the
applicable accounting standards.
(B) Use of Estimates : The preparation of the financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognized
in the period in which the results are known/materialized.
(C) Recognition of Income and Expenditure : Revenue from sale
transaction is recognized as and when the property in the goods is sold
/transferred to the buyer for a definite consideration. Revenue from
service transactions and other source is recognized on the completion
of the contract. Dividends from investments, export incentive under
Duty Drawback scheme are recognized when the right to receive
payments/credit is established and there is no uncertainty regarding
the amount of consideration or its collectability.
(D) Fixed Assets / Borrowing Costs : Fixed Assets are capitalized at
cost inclusive of erection expenses and other incidental expenses in
connection with the acquisition of the assets and net of Cenvat Credit
and VAT, if any. The borrowing cost on the additions to fixed assets is
capitalized in accordance with AS 16.
(E) Depreciation : Depreciation has been provided on straight- line
Method in respect of all the assets in accordance with Schedule XIV of
the Companies Act, 1956. All buildings have been depreciated at the
rate 3.34%. Accessories/power control units, wherever they are attached
to the machines, have been depreciated at the same rate applicable for
machinery. All electrical equipments including fans, air circulators
and air conditioners have been depreciated at the rate of 7.07%. Extra
shift depreciation has been provided for full year, even if the plant
has run only for part of the year on extra shifts. Depreciation on
additions during the year has been provided on pro-rata for the period
for which the assets have been put to use. Wind Turbines have been
classified as continuous process plant and depreciated accordingly as
has been done in the past. For assets of value less than Rs. 5,000/-
acquired during the year, 100% depreciation has been provided.
(F) Taxation : Provision for taxation is made as per estimated total
income after considering various reliefs under the provisions of the
Income-Tax Act, 1961. The book profit tax paid in accordance with
Section 115JB, which is in excess of the normal tax due and which can
be adjusted against tax liability for future periods, is treated as
advance tax. In accordance with AS 22, the deferred tax for timing
differences between the book and tax profits for the year is accounted
for using the tax rates and laws that have been enacted as of the
balance sheet date.
(G) Inventory Valuation :
1) Raw Material: At weighted average cost
2) Components and Stock of
Stores At weighted average cost
3) Finished Goods At cost or net realisable value
whichever is lower (inclusive of
Excise Duty)
4) Work - in Progress At estimated cost
5) ScrapAA/aste At estimated Cost or net realisable
value whichever is lower (inclusive
of Excise Duty, wherever Applicable).
(H) Employee Benefits : The provision has been made as required under
AS 15. Bonus has been provided as per practice followed in earlier
years. For Gratuity, Leave encashment and accumulated compensated
absences provision has been made based on the estimates provided by an
actuary.
(I) Foreign Exchange Transactions : The transactions in respect of
import of materials and export sales have been accounted for at the
rates of exchange prevailing on the date of the transactions. However,
in respect of transactions remaining unpaid/unrealized, exchange rates
prevailing at the end of the year have been adopted. Difference arising
out of fluctuation in the exchange for the above transaction has been
taken to a separate account, which is debited/credited to the Profit
and Loss Account. Wherever Forward Contracts have been entered, the
premium or discount has been recognized over the period of the contract
and the exchange differences on these contracts have been adjusted
during the period in which the differences have taken place. All
forward contracts have been entered only for import or export
transactions of the Company and no contract has been entered (or
speculative purposes.
(J) Impairment of Assets: The carrying amount of the fixed assets is
reviewed for provision for impairment as required under AS 28. In the
opinion of the Company, the recoverable amount of the fixed assets of
the Company will not be lower than the book value of the fixed assets.
Hence no provision has been made for impairment.
(K) investments: Investments are shown at cost. Investment fluctuation
reserve has been created for the diminution in value of quoted
investments.
(L) Provisions, contingent liabilities and contingent assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will he an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes to financial statements. Contingent assets are neither recognized
nor disclosed in the financial statements. Provisions, contingent
liabilities and contingent assets are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
(M) Earning Per Share: Basic Earning per share is calculated by
dividing the net profit or loss after tax for the year attributable to
equity shareholders by the weighted average number of equity shares
outstanding during the year.
(N) Cash flow Statement: Cash flows are reported using the indirect
method. Closing balances of cash includes cash and cash equivalents in
hand and balances in bank in current accounts.
(O) Segment Reporting: Business segments are identified based on the
nature of products and services. For reporting the business has been
split into two segments - one representing Engineering activities
manufacturing textile machinery and the other representing the
generation of power by wind energy. Power generated from windmills is
wheeled through Electricity Board and adjusted against the consumption
of power by the Company and the Subsidiary Company. The entire value of
power generated is treated as sale to Electricity Board and included in
the sales turnover. The adjustment to Subsidiary Company and self
consumption is not considered for inter Segment Revenue/Adjustments, as
has been done in the past.
Mar 31, 2010
(A) System of Accounting : The Financial Statements are prepared under
historical cost convention and on accrual basis in accordance with the
applicable accounting standards.
(B) Use of Estimates : The preparation of the financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognized
in the period in which the results are known/materialized.
(C) Recognition of Income and Expenditure : Revenue from sale
transaction is recognized as and when the property in the goods is sold
/transferred to the buyer for a definite consideration. Revenue from
service transactions and other source is recognized on the completion
of the contract. Dividends from investments, export incentive under
Duty Drawback scheme are recognized when the right to receive
payments/credit is established and there is no uncertainty regarding
the amount of consideration or its collectability.
(D) Fixed Assets / Borrowing Costs : Fixed Assets are capitalized at
cost inclusive of erection expenses and other incidental expenses in
connection with the acquisition of the assets and net of Cenvat Credit
and VAT, if any. The borrowing cost on the additions to fixed assets is
capitalized in accordance with AS 16.
(E) Depreciation : Depreciation has been provided on straight- line
Method in respect of all the assets in accordance with Schedule XIV of
the Companies Act, 1956.
All buildings have been depreciated at the rate 3.34%.
Accessories/power control units, wherever they are attached to the
machines, have been depreciated at the same rate applicable for
machinery. All electrical equipments including fans, air circulators
and air conditioners have been depreciated at a rate of 7.07%. Extra
shift depreciation has been provided for full year, even if the plant
has run only for part of the year on extra shifts. Depreciation on
additions during the year has been provided on pro-rata for the period
for which the assets have been put to use. Wind Turbines have been
classified as continuous process plant and depreciated accordingly as
has been done in the past. For assets of value less than Rs. 5,000/-
acquired during the year, 100% depreciation has been provided.
(F) Taxation : Provision for taxation is made as per estimated total
income after considering various reliefs under the provisions of the
Income-Tax Act, 1961. The book profit tax paid in accordance with
Section 115JB, which is in excess of the normal tax due and which can
be adjusted against tax liability for future periods, is treated as
advance tax. In accordance with AS 22, the deferred tax for timing
differences between the book and tax profits for the year is accounted
for using the tax rates and laws that have been enacted as of the
balance sheet date.
(G) Inventory Valuation :
1) Raw Material : At weighted average cost
2) Components and Stock of Stores At weighted average cost
3) Finished Goods At cost or net realisable
value whichever is
lower (inclusive of Excise Duty)
4) Work - in Progress At estimated cost
5) Scrap/ Waste At estimated Cost or net
realisable value
whichever is lower (inclusive
of Excise
Duty, wherever Applicable).
(H) Employee Benefits : The provision has been made as required under
AS 15. Bonus has been provided as per practice followed in earlier
years. For Gratuity, Leave encashment and accumulated compensated
absences provision has been made based on the estimates provided by an
actuary.
(I) Foreign Exchange Transactions : The transactions in respect of
import of materials and export sales have been accounted for at the
rates of exchange prevailing on the date of the transactions. However,
in respect of transactions remaining unpaid/unrealized, exchange rates
prevailing at the end of the year have been adopted. Difference arising
out of fluctuation in the exchange for the above transaction has been
taken to a separate account, which is debited/credited to the Profit
and Loss Account. Wherever Forward Contracts have been entered, the
premium or discount has been recognized over the period of the contract
and the exchange differences on these contracts have been adjusted
during the period in which the differences have taken place. All
forward contracts have been entered only for import or export
transactions of the Company and no contract has been entered for
speculative purposes.
(J) Impairment of Assets: The carrying amount of the fixed assets is
reviewed for provision for impairment as required under AS 28. In the
opinion of the Company, the recoverable amount of the fixed assets of
the Company will not be lower than the book value of the fixed assets.
Hence no provision has been made for impairment.
(K) Investments: Investments are shown at cost. Investment fluctuation
reserve has been created for the diminution in value of quoted
investments.
(L) Provisions, contingent liabilities and contingent assets:
Provisions involving substantial degree of estimation in measurement
are 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 financial statements. Contingent assets are neither recognized
nor disclosed in the financial statements. Provisions, contingent
liabilities and contingent assets are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
(M) Earning Per Share: Basic Earning per share is calculated by
dividing the net profit or loss after tax for the year attributable to
equity shareholders by the weighted average number of equity shares
outstanding during the year.
(N) Cash flow Statement: Cash flows are reported using the indirect
method. Closing balances of cash includes cash and cash equivalents in
hand and balances in bank in current accounts.
(O) Segment Reporting: Business segments are identified based on the
nature of products and services. For reporting the business has been
split into two segments - one representing Engineering activities
manufacturing textile machinery and the other representing the
generation of power by wind energy.
Power generated from windmills is wheeled through Electricity Board and
adjusted against the consumption of power by the Company and the
Subsidiary Company. The entire value of power generated is treated as
sale to Electricity Board and included in the sales turnover. The
adjustment to Subsidiary Company and self consumption is not considered
for Inter Segment Revenue/Adjustments, as has been done in the past.
The products manufactured by the Company do not require any industrial
license as per the current industrial policy and hence there is no
restriction on the maximum capacity that the Company can produce. The
installed capacity also varies depending on the level of subcontracting
work and outsourcing of components. Hence the data on licensed and
installed capacities has not been furnished.