Mar 31, 2015
Basis of Accounting
The Financial Statements are prepared on the historical cost convention
(except for revaluation of plant and machinery, building and land), in
accordance with applicable Accounting Standards and the relevant
provisions of the Companies Act. 2013.
Use of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the dale of financial statements and reported amount of
revenues and expenses during the reporting period. Differences between
the actual results and estimates arc recognized in the period ifl which
the results are known / materialised.
Revenue kecoemtioa
All income and expenditure are accounted on accrual basis.
Fixed Assets
All tangible assets are staled at acquisition cost or revalued amounts,
as the case may be. net of uccumul depreciation and impairment losses,
if any. Lhe cost includes expenditure incurred in the acquisition
construction I installation and other related expenses in bringing the
asset to working condition for its intended In respect of qualifying
assets, related pre operational expenses including borrowing costs are
also capitalized Cast of revaluation of fixed assets, the original cost
as written up by the valued, is considered in the account an<
differential amount Is transferred to revaluation reserve. Subsequent
expenditures related to an item of fixed are added to its book value
only if they increase the future benefits from the existing asset
beyond its presto iissessed standard of performance. Loss arising from
retirement of. and gains or losses from disposal of fixed a; arc
recognised in the Statement of Profit and l,oss.
Costs relating to acquisition of Software are capitalised as Intangible
Assets"
Depreciation
Depreciation on fixed Assets has been provided on Straight line Method
over the estimated useful lives of the asset prescribed in Schedule IT
to the Companies Act. 2013 which are as follows;
factory Building - 30 Years
Office Building - 60 Years
Plant & Equipment - 23 Years
Furniture &. fixtures - 10 Years
Electrical Installations - ItJ Years Vehicles - 8 Years
Windmill - 22 Years
Roads - 10 Years
Investments
Long term imesimerii are staled 61 cost. Provision tor diminution in
value is made if the decline in value is other than temporary.
Foreign Current Transactions
I he Company is exposed to currency fluctuations on foreign currency
transactions. Transactions denominated in foreign currency are recorded
at the exchange rale prevailing on I he dale of iransactions-
Exchange differences arising on foreign exchange transactions settled
during the year are recognised in the profit and loss statement of the
year.
a) Transaction
Monetary assets and liabilities in foreign currency, which are
ouislanding as ai the year-end. are translated at the year- end at the
closing exchange rale and llie resultant exchange differences are
recognized in the profit and loss statement. Non monetary items are
stated in the balance sheet using the exchange rate at the date of the
transaction.
b) The Exchange differences arising on reporting of long term foreign
currency monelary items at rate different from those at which they were
initially recorded during the period, or reported in previous financial
statements, in so far as they relate to the acquisition of a
depreciable capital assets is added to or deducted from the cost of ihe
assets and shall be depreciated over the balance life of the assets,
and in other cases is accumulated in a "Foreign Currency monetary item
Translation difference account ' In the companies financial statements
and amortized over the balance period of such long term assets or
liabilities, by recognition as Income or expense In each of such
periods.
Pgnyajjye instruments
The Company's exposure to foreign currency fluctuations relates to
foreign currency assets, liabilities and forecasted cash flows. The
Company limits the effects of foreign exchange rale fluctuations by
following established risk management policies including the use of
derivatives. The Company enters into forward exchange contracts, where
the counterparty is a bank.
Inventories
(i) inventories are valued as follows:
Stores, Spares, Packing Materials, Raw Materials, Finished Goods and
Stock in Process - al lower of cosl and net realizable value.
(ii) Cost of Raw Materials, Stores. Spares and Packing Materials is
determined on weighted average basis. Cost of Finished Goods and Stock
in Process is determined by considering materials, labour and other
related direct expenses.
Customs Oiitv and Excise Puiv
Customs Duly and Excise Duty have been accounted for on [he basis of
both pay menus made in respect of goods cleaned as welt as provision
made for goods lying in bonded warehouse. Such provision is included in
the valuation of closing stocks of respective materials and goods.
Short term employee benefits are accounted in the period during which
the services have been rendered.
Eligible employees receive benefits from provident fund, superannuation
fund, employee stale insurance and other funds which are defined
contribution plans. Both the eligible employee and the company make
monthly contributions to the respective government administered funds
equal to the specified percentage of the covered employee's salary.
The company has no further obligation beyond its monthly contributions.
Income Taxes
Tax expense comprises of both current and deferred taxes. Current Tax
is provided on the taxable income using the applicable tax rates and
tax laws. Dclerrcd tax assets and liabilities arising on account of
timing difference and which are capable of reversal In subsequent
periods are recognized using the tax rates and tax laws that have been
enacted or substantively enacted. Deferred tax assets are recognized
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. If the company has carry forward unabsorbed
depreciation and tax losses, deferred Tax assets are recognized only to
the extent there is a virtual certainty supported by convincing
evidence ihat sufficient laxable income will be available against which
such deferred tax assets can he realized.
Borrowing costs
Interest and other borrowing costs attributable to the acquisition of
or construction of qualifying assets till the date of commercial use of
the assets arc capitalized. All other borrowing costs are charged to
revenue.
Provisions and fnutiUEtmt Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Mar 31, 2014
Basis of Accounting
The Financial Statements. are prepared on the historical cost
convention (except for revaluation of Plant and Machinery), in
accordance with applicable Accounting Standards and the relevant
provisions of the Companies Act, 1
Use of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
Iiabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Differences between
the actual results and estimates are recognised in the period in which
the results are known / materialised.
Revenue Recognition
All Income and expenditure are accounted on accrual basis.
Fixed Assets
Fixed Assets are stated at cost or revalued amounts, as the case may
be, less accumulated depreciation and provision for impairment, if any.
The cost includes expenditure incurred in the acquisition and
construction / installation and other related expenses in bringing the
asset to working condition for its intended use. In respect of
qualifying assets, related pre operational expenses including borrowing
costs are also capitalised. In case of revaluation of fixed assets, the
original cost as written up by the valuer, is considered in the account
and the differential amount is transferred to revaluation reserve.
Costs relating to acquisition of Software are capitalised as
"Intangible Assets"
Depreciation
Depreciation on Fixed Assets other than Special tools. Jigs, fixtures
included under the head Plant &. Machinery and Software has been
provided on Straight Line Method at the rates and in the manner
prescribed in Schedule XIV to the Companies Act. 1956 on prorata basis
from the date of additions and/or disposal.
Investments
Long Term Investments arc stated at cost. Provision for diminution in
value is made if the decline in value is other than temporary.
Foreign Currency Transactions
The Company is exposed to currency fluctuations on foreign currency
transactions. Transactions denominated in foreign currency arc recorded
at the exchange rate prevailing on (the date of transactions.
Exchange differences arising on foreign exchange transactions settled
during the year are recognised in the profit and loss statement of the
year.
a) Transaction
Monetary assets and liabilities in foreign currency, which are
outstanding as at the year-end, are translated at the year-end at the
closing exchange rate and the resultant exchange differences arc
recognised in the profit and loss statement. Non monetary items are
staled in the balance sheet using the exchange rate at the date of the
transaction.
b) The Exchange differences arising on reporting of long term foreign
currency monetary items at rate different from those at which they were
initially recorded during the period, or reported in previous financial
statements, in so far as they relate to the acquisition of a
depreciable capital assets is added to or deducted from the cost of the
assets and shall be depreciated over 1 he balance life of the assets,
and in other cases is accumulated in a "Foreign Currency monetary item
Translation difference account "In the companies financial statements
and amortized over the balance period of such Jong term assets or
liabilities, by recognition as income or expense in each of such
periods.
Derivative instruments
The Company''s exposure to foreign currency fluctuations relates to
foreign currency assets, liabilities and forecasted cash Hows. The
Company limits the effects of foreign exchange rate fluctuations by
following established risk management policies including the use of
derivatives. the Company enters into forward exchange contracts, where
the counterparty if a bank.
Inventories
(i) Inventories are valued as follows:
Stores. Spares, Packing Materials. Raw Materials. Finished GoodHand
Stock in Process - at lower of cost and net realisable value.
(iij Cost of Raw Materials, Store:''- Spares and Packing Materials is
determined on weighted average basis. Cost of finished Goods and Stock
in Process is determined by considering materials, labour and other
related direct expenses.
Customs Duty and Excise Duty have been accounted for on the basis of
both payments made in respect of goods cleared as well as provision
made for goods lying in bonded warehouse. Such provision is included in
the valuation of closing slocks of respective materials and goods.
Retirement & other employee benefits
Short term employee benefits are accounted in the period during which
the services have been rendered.
The Company''s contribution to the Provident Fund is remitted to a trust
established for this purpose based On fixed percentage of the eligible
employees'' salary and charged to Profit &, Loss statement. The company
is generally liable for annual contributions and any shortfall in the
fund assets, based on the Government specified minimum rate of return
and recognises such contribution and shortfall, if any, as an expense
in the year incurred.
Superannuation benefits to employees, a defined contribution plan, as
per company''s scheme, have been funded with Life Insurance Corporation
of India and the contribution is charged to Profit &. Loss statement
when the contribution to the fund is due.
The Company''s liability towards Gratuity. Pension lo certain categories
of employees are accounted for based on Actuarial valuation done at the
year end using the Projected Unit Credit Method. Actuarial gains and
losses are charged to Profit & Loss statement. Gratuity liability is
funded to the trust established for the purpose,
Income Taxes
Tax expense comprises of both current and deferred taxes. Current Tax
is provided on the taxable income rising the applicable tax rates and
tax laws. Deferred tax asses and liabilities arising on account of
timing difference and which are capable of reversal in subsequent
periods are recognised using the tax rates and tax laws that have been
enacted or substantively enacted. Deferred tax assets are recognised
only to the extent that there is reasonable certainity that sufficient
future taxable income will be available against Which such deferred tax
assets can be realised. If the company has carry forward unabsorbed
depreciation and tax losses, deferred Tax assets are recognised only to
the extent there is a virtual certainity supported by convincing
evidence that sufficient taxable income will be available against which
such deferred tax assets can be realised.
Borrowing costs
Interest and other borrowing costs attributable to the acquisition of
or construction of qualifying assets till the date of commercial use of
the assets are capitalised. All other borrowing costs are charged to
revenue.
Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a Contingent liability is made when there
is a possible obligation or a present obligation that may. but probably
will not. require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Mar 31, 2013
Basis of Accounting
The Financial Statements are prepared on the historical cost convention
(except for revaluation of Plant and Machinery), in accordance with
applicable Accounting Standards and the relevant provisions of the
Companies Act, 1956.
Use of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Differences between
the actual results and estimates are recognised in the period in which
the results are known / materialised.
Revenue Recognition
All income and expenditure are accounted on accrual basis.
Sale of goods are recognised upon passage of title to the customers
which generally coincides with their delivery. Revenue from job work
charges for materials lying in stock, pending despatches at the year
end, are accounted for on accrual basis.
Fixed Assets
Fixed Assets are stated at cost or revalued amounts, as the case may
be, less accumulated depreciation and provision for impairment, if any.
The cost includes expenditure incurred in the acquisition and
construction / installation and other related expenses in bringing the
asset to working condition for its intended use. In respect of
qualifying assets, related pre operational expenses including borrowing
costs are also capitalised. In case of revaluation of fixed assets, the
original cost as written up by the valuer, is considered in the account
and the differential amount is transferred to revaluation reserve.
Costs relating to acquisition of Software are capitalised as
"Intangible Assets"
Depreciation
Depreciation on Fixed Assets other than Special tools, Jigs, Fixtures
included under the head Plant & Machinery and Software has been
provided on Straight Line Method at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956 on prorata basis
from the date of additions and/or disposal.
Special tools, Jigs & Fixtures are written off over a period of three
years based on Technical estimate. Software is amortised on straight
line basis over a period of three years.
Investments
Long Term Investments are stated at cost. Provision for diminution in
value is made if the decline in value is other than temporary.
Foreign Currency Transactions
The Company is exposed to currency fluctuations on foreign currency
transactions. Transactions denominated in foreign currency are recorded
at the exchange rate prevailing on the date of transactions.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the profit and loss account of the
year.
Transaction
Monetary assets and liabilities in foreign currency, which are
outstanding as at the year-end, are translated at the year- end at the
closing exchange rate and the resultant exchange differences are
recognized in the profit and loss account. Non monetary items are
stated in the batance sheet using the exchange rate at the date of the
transaction.
Derivative instruments
The Company''s exposure to foreign currency fluctuations relates to
foreign currency assets, liabilities and forecasted cash flows. The
Company limits the effects of foreign exchange rate fluctuations by
following estabilished risk management policies including the use of
derivatives. The Company enters into forward exchange contracts, where
the
Inventories ;
(i) Inventories are valued as follows:
Stores, Spares, Packing Materials, Raw Materials, Finished Goods and
Stock in Process - at lower of cost and net
(ii) Cost of Raw Materials, Stores, Spares and Packing Materials is
determined on weighted average basis. Cost of Finished Goods and Stock
in Process is determined by considering materials, labour and other
related direct expenses.
Customs Duty and Excise Duty
Customs Duty and Excise Duty have been accounted for on the basis of
both payments made in respect of goods cleared as well as provision
made for goods lying in bonded warehouse. Such provision is included in
the valuation of closing stocks of respective materials and goods.
Retirement & other employee benefits
Short term employee benefits are accounted in the period during which
the services have been rendered.
The Company''s contribution to the Provident Fund is remitted to a trust
established for this purpose based on fixed percentage of the eligible
employees'' salary and charged to Profit & Loss Account. The company is
generally liable for annual contributions and any shortfall in the fund
assets, based on the Government specified minimum rate of return and
recognises such contribution and shortfall, if any, as an expense in
the year incurred.
Superannuation benefits to employees, a defined contribution plan, as
per company''s scheme, have been funded with Life Insurance
Corporation of India and the contribution is charged to Profit & Loss
Account, when the contribution to The Company''s liability towards
Gratuity, Pension to certain catagories of employees and long term
employee Compensated Leave Encashment being defined benefit plans are
accounted for based on Actuarial valuation done at the year end using
the Projected Unit Credit Method. Actuarial gains and losses are
charged to Profit & Loss Account. Gratuity liability is funded to the
trust established for the purpose.
Income Taxes
Tax expense comprises of both current and deferred taxes. Current Tax
is provided on the taxable income using the applicable tax rates and
tax laws. Deferred tax assests and liabilities arising on account of
timing difference and which are capable of reversal in subsequent
periods are recognised using the tax rates and tax laws that have been
enacted or substantively enacted. Deferred tax assets are recognised
only to the extent that there is reasonable certainity that sufficient
future taxable income will be available against which such deferred tax
assets can be realised. If the company has carry forward unabsorbed
depreciation and tax losses, deferred Tax assets are recognised only to
the extent there is a virtual certainity supported by convincing
evidence that sufficient taxable income will be available against which
such deferred tax assets can be realised.
Borrowing costs
Interest and other borrowing costs attributable to the acquisition of
or construction of qualifying assets till the date of commercial use of
the assets are capitalised. All other borrowing costs are charged to
revenue.
Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow'' of
resources is remote, no provision or disclosure is made.
Mar 31, 2012
Basis of Accounting
The Financial Statements are prepared on the historical cost convention
(except for revaluation of Plant and Machinery), in accordance with
applicable Accounting Standards and the relevant provisions of the
Companies Act, 1956.
Use of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Differences between
the actual results and estimates are recognised in the period in which
the results are known / materialised.
Revenue Recognition
All income and expenditure are accounted on accrual basis.
Sale of goods are recognised upon passage of title to the customers
which generally coincides with their delivery. Revenue from job work
charges for materials lying in stock, pending despatches at the year
end. are accounted for on accrual basis.
Fixed Assets
Fixed Assets are stated at cost or revalued amounts, as the case may
be, less accumulated depreciation and provision for impairment, if any.
The cost includes expenditure incurred in the acquisition and
construction / installation and other related expenses in bringing the
asset to working condition for its intended use. In respect of
qualifying assets, related pre operational expenses including borrowing
costs are also capitalised. In case of revaluation of fixed assets, the
original cost as written up by the valuer, is considered in the account
and the differential amount is transferred to revaluation reserve.
Costs relating to acquisition of Software are capitalised as
"Intangible Assets"
Depreciation
Depreciation on Fixed Assets other than Special tools, Jigs, Fixtures
included under the head Plant & Machinery and Software has been
provided on Straight Line Method at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956 on prorata basis
from the date of additions and/or Special tools, Jigs & Fixtures are
written off over a period of three years based on Technical estimate.
Software is amortised on straight line basis over a period of three
years.
Investments
Long Term Investments are stated at cost. Provision for diminution in
value is made if the decline in value is other than temporary.
Foreign Currency Transactions
The Company is exposed to currency fluctuations on foreign currency
transactions. Transactions denominated in foreign currency are recorded
at the exchange rate prevailing on the date of transactions.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the profit and loss account of the
year.
Transaction
Monetary assets and liabilities in foreign currency, which are
outstanding as at the year-end, are translated at the year- end at the
closing exchange rate and the resultant exchange differences are
recognized in the profit and loss account.
Non monetary items are stated in the balance sheet using the exchange
rate at the date of the transaction.
Derivative instruments
The Company's exposure to foreign currency fluctuations relates to
foreign currency assets, liabilities and forecasted cash flows. The
Company limits the effects of foreign exchange rate fluctuations by
following estabilished risk management policies including the use of
derivatives. The Company enters into forward exchange contracts, where
the As per Accounting Standard ('AS') 11 - The Effects of Changes in
Foreign Exchange Rates', the premium or the discount on forward
exchange contracts not relating to firm commitments or highly probable
forecast transactions and not intended for trading or speculation
purpose is amortized as expense or income over the life of the
contract. All other derivatives, which are not covered by AS 11, are
measured using the mark-to-market principle and losses, if any, are
Inventories
(i) Inventories are valued as follows:
Stores, Spares, Packing Materials, Raw Materials, Finished Goods and
Stock in Process - at lower of cost and net
(ii) Cost of Raw Materials, Stores, Spares and Packing Materials is
determined on weighted average basis. Cost of Finished Goods and Stock
in Process is determined by considering materials, labour and other
related direct expenses.
Customs Duty and Excise Duty
Customs Duty and Excise Duty have been accounted for on the basis of
both payments made in respect of goods cleared as well as provision
made for goods lying in bonded warehouse. Such provision is included in
the valuation of closing stocks of respective materials and goods.
Retirement & other employee benefits
Short term employee benefits are accounted in the period during which
the services have been rendered
The Company's contribution to the Provident Fund is remitted to a trust
established for this purpose based on fixed percentage of the eligible
employees' salary and charged to Profit & Loss Account. The company is
generally liable for annual contributions and any shortfall in the fund
assets, based on the Government specified minimum rate of return and
recognises such contribution and shortfall, if any. as an expense in
the year incurred.
Superannuation benefits to employees, a defined contribution plan, as
per company's scheme, have been funded with Life Insurance Corporation
of India and the contribution is charged to Profit & Loss Account, when
the contribution to the fund is The Company's liability towards
Gratuity. Pension to certain catagories of employees and long term
employee Compensated Leave Encashment being defined benefit plans are
accounted for based on Actuarial valuation done at the year end using
the Projected Unit Credit Method. Actuarial gains and losses are
charged to Profit & Loss Account. Gratuity liability is funded to the
trust established for the purpose.
Income Taxes
Tax expense comprises of both current and deferred taxes. Current Tax
is provided on the taxable income using the applicable tax rates and
tax laws. Deferred tax assests and liabilities arising on account of
timing difference and which are capable of reversal in subsequent
periods are recognised using the tax rates and tax laws that have been
enacted or substantively enacted Deferred tax assets are recognised
only to the extent that there is reasonable certainity that sufficient
future taxable income will be available against which such deferred tax
assets can be realised. If the company has carry forward unabsorbed
depreciation and tax losses, deferred Tax assets are recognised only to
the extent there is a virtual certainity supported by comincing
evidence that sufficient taxable income will be available against which
such deferred tax assets can be realised
Borrowing costs
Interest and other borrowing costs attributable to the acquisition of
or construction of qualifying assets till the date of commercial use of
the assets are capitalised. All other borrowing costs are charged to
revenue
Provisions and Contingent Liabilities
The Company recognises a provision w hen there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made w hen there
is a possible obligation or a present obligation that may. but probably
will not require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Mar 31, 2010
A Basis of Presentation: The accounts have been prepared in accordance
with the Mandatory Accounting Standards issued by the Institute of
Chartered Accountants of India and the relevant presentation
requirement of the Companies Act, 1956.
b Fixed Assets: Fixed Assets are stated at cost or Revaluation net of
accumulated depreciation Cost comprises of the purchase price and any
directly attributable costs of bringing the assets to working condition
for its use including interest and other incidental expenses upto the
date of commercial production Surplus on revaluation of fixed assets is
credited to Capital Reserve Account
c. Depreciation: Depreciation is provided on straight-line method as
per rates specified in Schedule XIV of Companies Act, 1956, as amended
from time to time
d Inventories: Inventories are valued at lower of Average Cost or Net
realisable Value Other items are valued at cost The Proforma price at
which goods are transferred to various depots from Mysore Plant is
considered as Cost for the purpose of valuation of finished Goods lying
at Depots.
e. Investments: Investments are stated at cost of acquisition
f Revenue Recognition:
i) Revenue and Cost are accrued as they are earned or incurred
ii) Premium Paid to LIC in respect of Employees Group Gratuity Scheme
is charged to Profit and Loss Account Provision for gratuity liability
has been made in the account in respect of employees at Mumbai office,
who have put in qualifying period of service
g. Foreign Currency Transactions:
Transactions in Foreign Currency are recorded at the exchange rates
prevailing at the time of transaction and Exchange differences arising
from foreign currency transactions are dealt with in Profit and Loss
Account and adjusted where they relate to fixed Assets Current Assets
and Liabilities at the year-end are converted at closing Rates and
exchange losses are dealt with in the Profit and Loss Account or
adjusted in Cost of Fixed Assets
h Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of a qualifying assets are capitalised as part of the cost
of such assets A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use All other
borrowing costs are charged to revenue
i Deferred Taxation:
Deferred Tax resulting from Timing differences between book and tax
profits is accounted for under the liability method, at the current
rates of tax, to the extent that the timing differences are expected to
crystallise.