Mar 31, 2023
Corporate Information
The Company was incorporated in 1986 and is dealing in chemicals,mainly Vinyl Acetate Monomer (VAM). The equity shares of the Company are listed on BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).
The address of its registered office is Regent Chambers, 7th Floor, Jamnalal Bajaj Marg, 208 Nariman Point, Mumbai 400021.The address of principal place of business is Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai 400059.
Note 2
Significant Accounting Policies
2.1 Basis of accounting & preparation of financial statements
The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 (âActâ) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016.
The financial statements have been prepared on the historical cost basis except for certain Financial Assets/Liabilities (including derivative instruments) which have been measured at fair values.
2.2 Property, plant and equipment acquired separately & Depreciation
Freehold land is stated at cost and not depreciated.
Plant and Equipments and furniture are stated at cost less accumulated depreciation and accumulated impairment losses.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and capital work in progress) less their residual values over their useful lives, using the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
The estimated useful lives are as given below:
Type of asset |
Useful life |
||
Plant & Machinery |
15 years |
||
Furniture & fixtures |
10 years |
||
Vehicles |
8 years |
||
Office Equipments |
5 years |
Impairment of tangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs of disposal and value in use.
If the recoverable amount of the asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised in profit or loss.
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately, are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight line basis over their estimated useful lives. The estimated useful lives and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Estimated useful life of intangible assets is 6 years for Computer Software.
2.3 Inventories
Inventories are valued at lower of cost and net realisable value. Cost of inventories is determined on FIFO basis.
Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and estimated costs necessary to make the sale.
Obsolete, defective and slow/non-moving stocks are duly provided for.
2.4 Provisions (other than employee benefits)
A provision is recognised when as a result of past event, the Company has a present legal or constructive obligation which can be reliably estimated and it is probable that an outflow of economic benefit will be required to settle the obligation.
Provisions (excluding retirement benefits) are determined based on the best estimate required to settle the obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognised but disclosed in the Notes to the Financial Statements.
Contingent assets are not recognised but disclosed in the Notes to the Financial Statements, where an inflow of economic benefits is probable.
2.5 Financial instruments
2.5.1 Initial recognition & measurement:
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.
At initial recognition, financial assets and financial liabilities are measured at fair value, except for trade receivables and payables which are measured at their transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss
2.5.2 Subsequent measurement of financial assets:
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Interest income is recognised in profit or loss and is included in the âOther incomeâ line item.
2.5.3 Impairment of financial assets
For Trade receivables, the Company measures loss allowance at an amount equal to lifetime expected credit losses. The Company computes expected credit loss allowance based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.
2.5.4 Financial Liabilities
All financial liabilities (other than derivative financial instruments) are classified as subsequently measured at amortised cost using effective interest method where applicable. Interest expense is included in the "Finance costs" line item.
2.5.5 Derecognition of financial assets and liabilities
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or when the Company transfers the contractual rights to receive the cash flows of the financial asset in which substantially all the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and does not retain control of the financial asset.
The Company derecognises a financial liability (or a part of financial liability) when the contractual obligation is discharged, cancelled or expires.
2.5.6 Derivative financial instruments
The Company holds derivative financial instruments such as currency options or foreign exchange forward contracts to hedge its exposure to foreign currency exchange rate risks.
Derivatives are initially recognised at fair value at the date the contracts are entered into. Subsequent to initial recognition, these contracts are measured at fair value and changes are recognised in profit or loss.
2.6 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/loss before extraordinary items and tax for the period is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments. Cash flows from operating, investing and financing activities of the Company are segregated.
Cash and cash equivalents for the purpose of cash flow statement comprise of cash at bank & cash in hand, as reduced by bank overdrafts (if any).
2.7 Employee benefits
Employee benefits include Provident Fund, Superannuation Fund, Employee State Insurance Scheme, Gratuity Fund, Compensated Absences, Anniversary Awards, Premature Death Pension Scheme and Total Disability Pension Scheme.
2.7.1 Defined contribution plans
The Companyâs contribution to Provident Fund, Superannuation Fund and Employee State Insurance Scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.
2.7.2 Defined benefit plans
For Defined Benefit Plans in the form of Gratuity Fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding net interest) is reflected immediately in the Balance Sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised immediately for both vested and the non-vested portion. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited taking into account the present value of available refunds and reductions in future contributions to the schemes.
2.7.3 Short term and other long term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries and annual leave in the period in which the related service is rendered, at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
2.8. Taxation:
i. Current tax: The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using applicable tax rates that have been enacted or substantively enacted by the end of the reporting period and the provisions of the Income Tax Act, 1961 and other tax laws, as applicable.
ii. Deferred tax: Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
iii. Current & Deferred tax for the year: Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
2.9. Revenue Recognition:
Revenue is recognised at a point in time when the performance obligation is satisfied and control of promised goods is transferred to customers, for an amount that reflects the consideration which the Company expects to receive in exchange for those goods.
Revenue is based on the transaction price which is the consideration taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government, except otherwise mentioned. Thus, it excludes Sales Tax/VAT/Goods and Services Tax (GST). It is measured at transaction price, net of returns, rebates and discounts.
Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt. Negotiated price reduction obtained from supplier is accounted for as a part of ''Other operating revenue''.
2.10 Foreign currency:
At the end of each reporting period, monetary items (including financial assets and liabilities) denominated in foreign currencies are re-translated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Gains or losses arising from these translations are recognised in the Statement of Profit and Loss.
2.11 Earnings Per Share:
In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.
2.12 Critical accounting judgements and key sources of estimation of uncertainty
The preparation of the Companyâs financial statements requires Management i.e. the Directors of the Company to make judgements, estimates and assumptions that affect the application of accounting policies, reported amounts of assets, liabilities, income and expenses and accompanying disclosures and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Mar 31, 2018
Note 1
Significant Accounting Policies
2.1 Basis of accounting & preparation of financial statements
The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 (âActâ) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016.
The financial statements have been prepared on the historical cost basis except for certain Financial Assets/Liabilities (including derivative instruments) which have been measured at fair values .
2.2 Property, plant and equipment acquired separately & depreciation
Freehold land is stated at cost and not depreciated.
Plant and Equipments and furniture are stated at cost less accumulated depreciation and accumulated impairment losses.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and capital work in progress) less their residual values over their useful lives, using the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Impairment of tangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs of disposal and value in use.
If the recoverable amount of the asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised in profit or loss.
2.3 Inventories
Inventories are valued at lower of cost and net realisable value. Cost of inventories is determined on FIFO basis.
Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and estimated costs necessary to make the sale.
Obsolete, defective and slow/non-moving stocks are duly provided for.
2.4 Provisions (other than employee benefits)
A provision is recognised when as a result of past event, the Company has a present legal or constructive obligation which can be reliably estimated and it is probable that an outflow of economic benefit will be required to settle the obligation.
Provisions (excluding retirement benefits) are determined based on the best estimate required to settle the obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognised but disclosed in the Notes to the Financial Statements.
Contingent assets are not recognised but disclosed in the Notes to the Financial Statements, where an inflow of economic benefits is probable.
2.5 Financial instruments
2.5.1 Initial recognition & measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.
At initial recognition, financial assets and financial liabilities are initially measured at fair value, except for trade receivables and payables which are measured at their transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.
2.5.2 Subsequent measurement of financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Interest income is recognised in profit or loss and is included in the âOther incomeâ line item.
2.5.3 Impairment of financial assets
For Trade receivables, the Company measures loss allowance at an amount equal to lifetime expected credit losses. The Company computes expected credit loss allowance based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.
2.5.4 Financial Liabilities
All financial liabilities (other than derivative financial instruments) are classified as subsequently measured at amortised cost using effective interest method where applicable. Interest expense is included in the " Finance costs" line item.
2.5.5 Derecognition of financial assets and liabilities
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or when the Company transfers the contractual rights to receive the cash flows of the financial asset in which substantially all the risks and rewards of ownership of the financial asset are transferred, or in which the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and does not retain control of the financial asset.
The Company derecognises a financial liability (or a part of financial liability) when the contractual obligation is discharged, cancelled or expires.
2.5.6 Derivative financial instruments
The Company holds derivative financial instruments such as currency options or foreign exchange forward contracts to hedge its exposure to foreign currency exchange rate risks.
Derivatives are initially recognised at fair value at the date the contracts are entered into. Subsequent to initial recognition, these contracts are measured at fair value and changes are recognised in profit or loss.
2.6 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / loss before extraordinary items and tax for the period is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments. Cash flows from operating, investing and financing activities of the Company are segregated.
Cash and cash equivalents for the purpose of cash flow statement comprise of cash at bank & cash in hand , as reduced by bank overdrafts (if any).
2.7 Employee benefits
Employee benefits include Provident Fund, Superannuation Fund, Employee State Insurance Scheme, Gratuity Fund, Compensated Absences, Anniversary Awards, Premature Death Pension Scheme and Total Disability Pension Scheme.
2.7.1 Defined contribution plans
The Companyâs contribution to Provident Fund, Superannuation Fund and Employee State Insurance Scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.
2.7.2 Defined benefit plans
For Defined Benefit Plans in the form of Gratuity Fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding net interest) is reflected immediately in the Balance Sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised immediately for both vested and the non-vested portion. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited taking into account the present value of available refunds and reductions in future contributions to the schemes.
2.7.3 Short term and other long term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period in which the related service is rendered, at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
2.8. Taxation
i . Current tax: The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using applicable tax rates that have been enacted or substantively enacted by the end of the reporting period and the provisions of the Income Tax Act, 1961 and other tax laws, as applicable.
ii. Deferred tax: Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
iii. Current & Deferred tax for the year: Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
2.9 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government, except otherwise mentioned.
Sale of goods & other income
i. Revenue from sale of goods is recognised upon transfer of significant risks and rewards of ownership of the goods to the customer which generally coincides with despatch of goods to customer. Sales exclude Sales Tax/VAT/G.S.T. It is measured at fair value of consideration received or receivable, net of returns, rebates and discounts.
ii . Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.
iii. Negotiated price reduction obtained from supplier is accounted for as a part of ''Other operating revenue''.
2.10 Foreign currency
At the end of each reporting period, monetary items (including financial assets and liabilities) denominated in foreign currencies are re-translated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Gains or losses arising from these translations are recognised in the Statement of Profit and Loss.
2.11 Earnings Per Share
In determining the earnings per share,the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately.The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.
2.12 Recent accounting pronouncements
Standards issued but not yet effective:
Ind AS 115 Revenue from Contracts with Customers
Ind AS 115 was issued on 28th March, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1st April ,2018.
The Company plans to adopt the new standard on the required effective date. The new standard is not expected to materially affect the timing of revenue and impact financial statements of the Company.
3. Critical accounting judgements and key sources of estimation of uncertainty
The preparation of the Companyâs financial statements requires Management i.e. the directors of the Company to make judgements, estimates and assumptions that affect the application of accounting policies, reported amounts of assets, liabilities, income and expenses and accompanying disclosures and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Mar 31, 2016
Note 1
Corporate Information
The Company was incorporated in 1986 and is dealing in chemicals, mainly Vinyl Acetate Monomer (VAM). The equity shares of the Company are listed on BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).
Note 2
Significant Accounting Policies
2.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention on a going concern basis. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year.
2.2 The preparation of financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the Management''s best knowledge of current events and actions, future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialized.
2.3 i . Tangible assets are stated at cost.
ii. Depreciation has been provided on straight line method on fixed assets, as per the rates specified in Schedule II of the Companies Act, 2013.
2.4 Long-term investments are carried individually, at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.
2.5 Inventory of Traded Goods is valued at actual cost or net realizable value, whichever is lower.
2.6 Accounting for Taxes on Income:
i . Provision for current tax is made on the basis of taxable income for the current year in accordance with the provisions of the Income Tax Act,1961.
ii. Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method at the current rate of tax to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual /reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
2.7 Foreign currency transactions are recorded at the exchange rates prevailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rates and the resultant gain or loss is taken to the Statement of Profit and Loss.
2.8 Employees'' Benefits:
i . Contribution to Provident and Family Pension Fund are funded as a percentage of salary.
ii . Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India.
iii. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.
2.9 Revenue Recognition:
i . Income from sale of goods is recognized upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold. Sales are net of Sales tax/VAT, returns, rebates and discounts.
ii. Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.
iii. Negotiated price reduction obtained from supplier is accounted for as a part of ''Other operating revenue''.
2.10 Provisions, Contingent Liabilities and Contingent Assets:
i. 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 outflow of resources.
ii. Disclosure for a contingent liability is made without a provision in books when there is an obligation that may but probably will not require outflow of resources.
iii. Contingent Assets are neither recognized nor disclosed in the financial statements.
2.11 Earnings Per Share:
In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.
Mar 31, 2015
1 The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956
Act"), as applicable. The financial statements have been prepared on
accrual basis under the historical cost convention on a going concern
basis. The accounting policies adopted in the preparation of financial
statements are consistent with those followed in the previous year.
2 The preparation of financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
Management's best knowledge of current events and actions, future
results could differ due to these estimates and the differences between
the actual results and the estimates are recognised in the periods in
which the results are known/ materialised.
3. i. Tangible assets are stated at cost.
ii. Depreciation has been provided on straight line method on fixed
assets, as per the rates specified in Schedule II of the Companies Act,
2013.
4. Long-term investments are carried individually, at cost less
provision for diminution,other than temporary,in the value of such
investments. Current investments are carried individually,at the lower
of cost and fair value. Cost of investments include acquisition charges
such as brokerage,fees and duties.
5. Inventory of Traded Goods is valued at actual cost or net
realisable value,whichever is lower.
6. Accounting for Taxes on Income:
i. Provision for current tax is made on the basis of taxable income
for the current year in accordance with the provisions of the Income
Tax Act,1961.
ii. Deferred tax resulting from timing differences between book and
tax profits is accounted for under the liability method at the current
rate of tax to the extent that the timing differences are expected to
crystallize. Deferred tax assets are recognized and carried forward
only if there is a virtual /reasonable certainty that they will be
realized and are reviewed for the appropriateness of their respective
carrying values at each balance sheet date.
7. Foreign Currency transactions are recorded at the exchange rates
prevailing on the date of transaction. Foreign currency designated
assets and liabilities are restated at year end rates or at contract
rates and the resultant gain or loss is taken to the Statement of
Profit and Loss.
8. Employees' Benefits:
i. Contribution to Provident and Family Pension Fund are funded as a
percentage of salary.
ii. Gratuity liability is funded as per group gratuity scheme of Life
Insurance Corporation of India.
iii. Leave encashment liability is provided for on the basis of
actuarial valuation as at the year end.
9. Revenue Recognition:
i. Income from sale of goods is recognised upon transfer of
significant risk and rewards of ownership of the goods to the customer
which generally coincides with delivery and acceptance of the goods
sold. Sales are net of Sales tax/ VAT, returns , rebates and discounts.
ii. Claims which are not of material nature/insurance claims etc. are
accounted for when no significant uncertainties are attached to their
eventual receipt.
iii. Negotiated price reduction obtained from supplier is accounted for
as a part of 'Other operating revenue'.
10. Provisions,Contingent Liabilities and Contingent Assets:
i. 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 outflow of
resources.
ii. Disclosure for a contingent liability is made,without a provision
in books,when there is an obligation that may,but probably will not,
require outflow of resources.
iii. Contingent Assets are neither recognised nor disclosed in the
financial statement.
11. Earnings Per Share:
In determining the earnings per share,the Company considers the net
profit after tax and post tax effect of any extra-ordinary/exceptional
item is shown separately. The number of shares considered in computing
basic earnings per share is the number of shares outstanding at the end
of the year.
Mar 31, 2014
1.1. The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") (which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs) and the
relevant provisions of the 1956 Act/2013 Act, as applicable. The
financial statements have been prepared on accrual basis under the
historical cost convention on a going concern basis. The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year.
1.2. i. Tangible assets are stated at cost.
ii. Depreciation has been provided on Straight Line Method on assets,
as per the rates specified in Schedule XIV of the Companies Act, 1956.
1.3. Long-term investments are carried individually, at cost less
provision for diminution, other than temporary, in the value of such
investments. Current investments are carried individually, at the lower
of cost and fair value. Cost of investments include acquisition charges
such as brokerage, fees and duties.
1.4 . Inventory of Traded Goods is valued at actual cost or net
realisable value, whichever is lower.
1.5 . Accounting for Taxes on Income:
i . Provision for current tax is made on the basis of taxable income
for the current year in accordance with the provisions of the Income
Tax Act, 1961.
ii. Deferred tax resulting from timing differences between book and tax
profits is accounted for under the liability method at the current rate
of tax to the extent that the timing differences are expected to
crystallize. Deferred tax assets are recognized and carried forward
only if there is a virtual /reasonable certainty that they will be
realized and are reviewed for the appropriateness of their respective
carrying values at each balance sheet date.
1.6. Foreign Currency transactions are recorded at the exchange rates
prevailing on the date of transaction. Foreign currency designated
assets and liabilities are restated at year end rates or at contract
rates and the resultant gain or loss is taken to the Statement of
Profit and Loss except in respect of fixed assets where the gain/loss
is capitalized.
1.7. Employees'' Benefits:
i . Contribution to Provident and Family Pension Fund are funded as a
percentage of salary.
ii . Gratuity liability is funded as per group gratuity scheme of Life
Insurance Corporation of India.
iii. Leave encashment liability is provided for on the basis of
actuarial valuation as at the year end.
1.8. Revenue Recognition:
i. Income from sale of goods is recognised upon transfer of significant
risk and rewards of ownership of the goods to the customer which
generally coincides with delivery and acceptance of the goods sold.
ii . Claims which are not of material nature/insurance claims etc. are
accounted for when no significant uncertainties are attached to their
eventual receipt.
iii. Negotiated price reduction obtained from supplier is accounted for
as a part of ''Other operating revenue''.
1.9. Provisions, Contingent Liabilities and Contingent Assets:
i. 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 outflow of resources.
ii. Disclosure for a contingent liability is made, without a provision
in books, when there is an obligation that may, but probably will not,
require outflow of resources.
iii. Contingent Assets are neither recognised nor disclosed in the
financial statement.
Mar 31, 2013
1.1. The Company maintains its accounts on accrual basis following the
historical cost convention, in compliance with the Accounting Standards
specified to be mandatory by the Institute of Chartered Accountants of
India and the relevant provisions of the Companies Act, 1956.
1.2. i. Tangible assets are stated at cost.
ii. Depreciation has been provided on Straight Line Method on assets,
as per the rates specified in Schedule XIV of the Companies Act, 1956.
1.3. Traded Goods are valued at actual cost or net realisable value,
whichever is lower.
1.4. Long Term Investment is stated at cost. Provision where
necessary, is made to recognize a decline.otherthan temporary, in the
value of investment.
1.5. Accounting for Taxes on Income:
i. Provision for current tax is made on the basis of taxable income for
the current year in accordance with the provisions of the Income Tax
Act, 1961.
ii. Deferred tax resulting from timing differences between book and tax
profits is accounted for under the liability method at the current rate
of tax to the extent that the timing differences are expected to
crystallize. Deferred tax assets are recognized and carried forward
only if there is a virtual /reasonable certainty that they will be
realized and are reviewed for the appropriateness of their respective
carrying values at each balance sheet date.
1.6. Foreign currency transactions are recorded at the exchange rates
prevailing on the date of transaction. Foreign currency designated
assets and liabilities are restated at year end rates or at contract
rate and the resultant gain or loss is taken to the Statement of Profit
and Loss except in respect of fixed assets where the gain/loss is
capitalized.
1.7. Employees'' Benefits:
i. Contribution to Provident and Family Pension Fund are funded as a
percentage of salary. ii. Gratuity liability is funded as per group
gratuity scheme of Life Insurance Corporation of India. iii. Leave
encashment liability is provided for on the basis of actuarial
valuation as at the year end.
1.8. Revenue Recognition:
i. Income from sale of goods is recognised upon transfer of
significant risk and rewards of ownership of the goods to the customer
which generally coincides with delivery and acceptance of the goods
sold.
ii. Claims which are not of material nature/insurance claims etc. are
accounted for when no significant uncertainties are attached to their
eventual receipt.
iii. Negotiated price reduction obtained from supplier is accounted
for as a part of ''other operating revenue ''.
1.9. Provisions.Contingent Liabilities and Contingent Assets:
i. 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 outflow of
resources.
ii. Disclosures for a contingent liability is made.without a provision
in books,when there is an obligation that may.but probably will not,
require outflow of resources.
iii. Contingent Assets are neither recognised nor disclosed in the
financial statement.
1.10. Earnings Per Share:
In determining the earnings per share, the Company considers the net
profit after tax and post tax effect of any extra-ordinary/ exceptional
item is shown separately. The number of shares considered in computing
basic earnings per share is the number of shares outstanding at the end
of the year.
Mar 31, 2012
1.1. The Company maintains its accounts on accrual basis following the
historical cost convention, in compliance with the Accounting Standards
specified to be mandatory by the Institute of Chartered Accountants of
India and the relevant provisions of the Companies Act, 1956.
1.2. During the year ended 31st March, 2012, the revised Schedule VI
notified under the Companies Act 1956, has become applicable to the
Company, for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. The Company has also reclassified the previous year's
figures in accordance with the requirements applicable in the current
year.
1.3. i. Tangible assets are stated at cost.
ii. Depreciation has been provided on Straight Line Method on assets,
as per the rates specified in Schedule XIV of the Companies Act, 1956.
1.4. Traded Goods are valued at actual cost or net realizable value,
whichever is lower.
1.5. Long Term Investment is stated at cost. Provision where necessary,
is made to recognize a decline, other than temporary, in the value of
investment.
1.6. Accounting for Taxes on Income:
i. Provision for current tax is made on the basis of taxable income
for the current year in accordance with the provisions of the Income
Tax Act, 1961.
ii. Deferred tax resulting from timing differences between book and
tax profits is accounted for under the liability method, at the current
rate of tax, to the extent that the timing differences are expected to
crystallize. Deferred tax assets are recognized and carried forward
only if there is a virtual /reasonable certainty that they will be
realized and are reviewed for the appropriateness of their respective
carrying values at each balance sheet date.
1.7. Foreign currency transactions are recorded at the exchange rates
prevailing on the date of transaction. Foreign currency designated
assets and liabilities are restated at year end rates or at contract
rate and the resultant gain or loss is taken to Statement of Profit and
Loss except in respect of fixed assets where the gain/loss is
capitalized.
1.8. Employees' Benefits:
i. Contribution to Provident and Family Pension Fund are funded as a
percentage of salary.
ii. Gratuity liability is funded as per group gratuity scheme of Life
Insurance Corporation of India.
iii. Leave encashment liability is provided for on the basis of
actuarial valuation as at the year end.
1.9. Revenue Recognition:
i. Income from sale of goods is recognized upon transfer of
significant risks and rewards of ownership of the goods to the customer
which generally coincides with delivery and acceptance of the goods
sold.
ii. Claims which are not of material nature/insurance claims etc. are
accounted for when no significant uncertainties are attached to their
eventual receipt.
iii. Negotiated price reduction obtained from supplier is accounted for
as a part of 'Miscellaneous Income'.
1.10. Provisions, Contingent Liabilities and Contingent Assets:
i. 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 outflow of
resources.
ii. Disclosures for a contingent liability is made, without a provision
in books, when there is an obligation that may, but probably will not,
require outflow of resources.
iii. Contingent Assets are neither recognized nor disclosed in the
financial statements.
1.11. Earnings per share:
In determining the earnings per share, the Company considers the net
profit after tax and post tax effect of any extra-ordinary/ exceptional
item is shown separately. The number of shares considered in computing
basic earnings per share is the number of shares outstanding at the end
of the year.
* Out of a sum of Rs42,100 lying to the credit of 'Forfeited Share
Account1, the Company has transferred a sum of Rs35,227 representing the
surplus amount received on 6,873 forfeited equity shares under 'Share
Capital Account' to 'Capital Reserve Account' under 'Reserves &
Surplus'. Hence, the figures appearing in the said accounts for the
current year and the previous year are regrouped accordingly, a. There
was no change in number of shares at the beginning and at the end of
the reporting period.
a. Details of shareholders holding more than 5% shares in the Company
No shareholder other than stated above in Note 2(b) was holding more
than 5% shares in the Company as at 31 st March, 2012 and as at 31 st
March, 2011.
Mar 31, 2011
1. The Company maintains its accounts on accrual basis following the
historical cost convention, in compliance with the Accounting Standards
specified to be mandatory by the Institute of Chartered Accountants of
India and the relevant provisions of the Companies Act, 1956.
2. a. Tangible assets are stated at cost.
b. Depreciation has been provided on straight line method on Assets, as
per the Rates specified in Schedule XIV of the Companies Act, 1956.
3. Traded Goods are valued at actual cost or net realisable value,
whichever is lower.
4. Long Term Investment is stated at cost. Provision where necessary,
is made to recognize a decline.other than temporary, in the value of
investment.
5. Accounting for Taxes on Income:
Provision for current tax is made on the basis of taxable income for
the current year in accordance with the provisions of the Income Tax
Act,1961.
Deferred tax resulting from timing differences between book and tax
profits is accounted for under the liability method, at the current
rate of tax, to the extent that the timing differences are expected to
crystallize deferred tax assets are recognized and carried forward only
if there is a virtual/reasonable certainty that they will be realized
and are reviewed for the appropriateness of their respective carrying
values at each balance sheet date.
6. Foreign Currency transactions are recorded at the exchange rates
prevailing on the date of transaction. Foreign currency designated
assets and liabilities are restated at year end rates or at contract
rate and the resultant gain or loss is taken to Profit and Loss Account
except in respect of fixed assets where the gain/loss is capitalized.
7. Employees Benefits:
a. Contribution to Provident and Family Pension Fund are funded as a
percentage of salary.
b. Gratuity liability is funded as per group gratuity scheme of Life
Insurance Corporation of India.
c. Leave encashment liability is provided for on the basis of
actuarial valuation as at the year end.
8. Revenue Recognition:
i) Income from sale of goods is recognised upon transfer of significant
risk and rewards of ownership of the goods to the customer which
generally coincides with delivery and acceptance of the goods sold.
ii) Claims which are not of material nature/insurance claims etc. are
accounted for when no significant uncertainties are attached to their
eventual receipt.
iii) Negotiated price reduction obtained from supplier is accounted for
as a part of Miscellaneous Income.
9. Provisions, Contingent Liabilities and Contingent Assets:
i) 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 outflow of resources.
ii) Disclosures for a contingent liability is made, without a provision
in books, when there is an obligation that may, but probably will not,
require outflow of resources.
iii) Contingent Assets are neither recognised nor disclosed in the
financial statement.
10. Earnings per share:
In determining the earnings per share, the Company considers the net
profit after tax and post tax effect of any extra-ordinary/exceptional
item is shown separately. The number of shares considered in computing
basic earnings per share is the number of shares outstanding at the end
of the year.
Mar 31, 2010
1. The Company maintains its accounts on accrual basis following the
historical cost convention, in compliance with the Accounting Standards
specified to be mandatory by the Institute of Chartered Accountants of
India and the relevant provisions of the Companies Act, 1956.
2. a. Tangible assets are stated at cost.
b. Depreciation has been provided on straight line method on Assets, as
per the Rates specified in Schedule XIV of the Companies Act, 1956.
3. Traded Goods are valued at actual cost or net realisable value,
whichever is lower.
4. Long Term Investment is stated at cost.provision where necessary,
is made to recognize a decline.other than temporary in the value of
investment.
5. Accounting for Taxes on Income:
Provision for current tax is made on the basis of taxable income for
the current year in accordance with the provisions of the Income Tax
Act,1961.
Deferred tax resulting from timing differences between book and tax
profits is accounted for under the liability method, at the current
rate of tax.to the extent that the timing differences are expected to
crystallize. Deferred tax assets are recognized and carried forward
only if there is a virtual /reasonable certainty that they will be
realized and are reviewed for the appropriateness of their respective
carrying values at each balance sheet date.
6. Foreign Currency transactions are recorded at the exchange rates
prevailing on the date of transaction. Foreign currency designated
assets and liabilities are restated at year end rates or at contract
rate and the resultant gain or loss is taken to Profit and Loss Account
except in respect of fixed assets where the gain/loss is capitalized.
7. Employees Benefits:
a. Contribution to Provident and Family Pension Fund are funded as a
percentage of salary.
b. Gratuity liability is funded as per group gratuity scheme of Life
Insurance Corporation of India.
c. Leave encashment liability is provided for on the basis of
actuarial valuation as at the year end.
8. Revenue Recognition:
i) Income from sale of goods is recognised upon transfer of significant
risk and rewards of ownership of the goods to the customer which
generally coincides with delivery and acceptance of the goods sold.
ii) Claims which are not of material nature/insurance claims etc. are
accounted for when no significant uncertainties are attached to their
eventual receipt.
iii) Negotiated price reduction obtained from supplier is accounted for
as a part of Miscellaneous Income.
9. Provisions, Contingent Liabilities and Contingent Assets:
i) 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 outflow of resources.
ii) Disclosures for a contingent liability is made.without a provision
in books.when there is an obligation that may.but probably will not,
require outflow of resources.
iii) Contingent Assets are neither recognised nor disclosed in the
financial statement.
10. Earnings per share:
In determining the earnings per share, the Company considers the net
profit after tax and post tax effect of any extra-ordinary/ exceptional
item is shown separately. The number of shares considered in computing
basic earnings per share is the number of shares outstanding at the end
of the year.