Mar 31, 2018
1) COMPANY INFORMATION
Wim Plast Limited (âthe Companyâ) is a listed entity incorporated in India and has its registered office at Survey No.324/4 to 7 of Kachigam, Village Kachigam, Swaminarayan Gurukul Road, Nani Daman, Daman-39621. It is incorporated under Companies Act ,1956 and its equity shares are listed on the Bombay Stock Exchange Limited in India.
The Company has Nine (9) manufacturing units and Nineteen (19) trading depots spread PAN India. The Company is engaged in manufacturing of various plastic products such as Plastic Moulded Furniture, Extrusion Sheets, Air Coolers, and Industrial and Engineering Moulds.
2) SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation and presentation
The Financial Statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) to comply with the section 133 of the Companies Act 2013(âthe 2013 Actâ), read with Rule 3 of the Companies (Indian Accounting Standards) Rule 2015, and Companies (Indian Accounting Standards) Rules, 2016. For all periods up to and for the year ended March 31, 2017 , the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements are the Company''s first Ind AS financial statements and are covered by Ind AS 101, First-time adoption of Indian Accounting Standards. The transition to Ind AS has been carried out from the accounting principles generally accepted in India (âIndian GAAPâ) which is considered as the âPrevious GAAPâ for purposes of Ind AS 101.
All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained the operating cycle to be 12 months.
Functional and presentation currency:
These financial statements are presented in Indian rupees, which is the Company''s functional currency. All amounts have been rounded off to two decimal places to the nearest lakh, unless otherwise indicated.
Historical cost convention:
The financial statements have been prepared on a historical cost basis, except for the following:
- certain financial assets and liabilities (including derivative instrument), if any that are measured at fair value;
- defined benefit plans - plan assets measured at fair value
b) Use of Estimate and Judgements
The preparation of the financial statements requires that the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates.
The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.
Estimates and assumptions are required in particular for:
- Determination of the estimated useful lives of Property, Plant and Equipment and Intangible Assets:
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.
- Recoverability of trade receivables
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required or not. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
- Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take into account, the changing facts and circumstances.
- Recognition Defined benefit plans
The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.
- Application of Discount rates
Estimates of rates of discounting are done for measurement of fair values of certain financial assets and liabilities, which are based on prevalent bank interest rates and the same are subject to change.
- Current versus non-current classification
All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.
- Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an, asset''s or group of Assets, called Cash Generating Units (CGU), fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or CGU''s. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
- Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
c) Property, plant and equipment
- Freehold land:
Freehold land is carried at historical cost.
- Property, plant and equipment:
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes import duties, non-refundable purchase taxes and other expenses directly attributable to the acquisition of he asset.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
- Leasehold land:
Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.
- Capital Work-in-Progress:
Capital Work-in-Progress includes expenditure during construction period incurred on projects under implementation treated as pre-operative expenses pending allocation to the assets. These expenses are apportioned to the respective fixed assets on their completion / commencement of commercial production.
d) Depreciation and Amortisation:
Depreciation on property, plant and equipment is provided using straight-line method. Depreciation is provided based on useful life of the assets as prescribed in accordance with the Part C of Schedule II of the Companies Act, 2013 except in respect of the following assets, where useful life is different than those prescribed in Part C of Schedule II.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of Profit and Loss when the assets is derecognised.
e) Impairment of Non-Financial Assets- Property, Plant and Equipment
The Company assesses at each reporting date as to whether there is any objective evidence that a non-financial asset or a group of assets, called Cash Generating Units (CGU) are impaired. If any such indication exists, the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets.
The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
f) Lease
Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating lease.
Lease Payments
Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
g) Finance Costs
Finance costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised as part of the cost of the asset. All other finance costs are expensed in the period in which they occur. Finance costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
h) Inventories
Inventories include Raw Materials, Packing Materials, Stores and Spares, Consumables, Traded Goods and Finished Goods Inventories are measured at lower of, cost and net realisable value after providing for obsolescence, if any.
Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition. Cost is determined on first in, first out basis
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
Raw Materials and other supplies held for use in production of inventories are not written down below cost except in the case where material prices have declined and it is estimated that the cost of the finished product will exceed its net realisable value.
i) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. j) Provisions for warranty and other provisions:
Provision is estimated for expected warranty claim in respect of products sold during the year based on past experience regarding defective claim of products and cost of rectification or replacement. It is expected that most of this cost will be incurred over the next 12 months in line with the warranty terms.
Other provisions are provisions in respect of probable claims, the outflow of which would depend on the cessation of the respective events.
k) Contingent Liabilities and Commitments
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable. l) Government Grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Government grants related to revenue are recognised on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. Such grants are deducted in reporting the related expense. When the grant relates to an asset, it is recognized as income over the expected useful life of the asset. In case a non-monetary asset is given free of cost it is recognised at a fair value. When loan or similar assistance are provided by government or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is recognized as government grant. The loan or assistance is initially recognized and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. m) Employee Benefits Expense
Employee benefits include bonus, compensated absences, provident fund, employee state insurance scheme and gratuity fund.
i) Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.
ii) Post-Employment Benefits
1) Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund, Employees'' State Insurance Corporation and Pension Scheme. The Company''s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.
2) Defined Benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of service as per the Payment of Gratuity Act 1972.
The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employee''s services. Re-measurement of defined benefit plan in respect of post-employment are charged to the Other Comprehensive Income.
iii) Other Employee Benefits Compensated Absences
Accumulated compensated absences, which are expected to be availed or encased within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end. n) Tax Expenses
The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income or in equity.
- Current tax :
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the end of the reporting period
- 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 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 carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.
o) Foreign currencies transactions and translation
Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss and costs that are directly attributable to the acquisition assets, are capitalized as cost of assets.
Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit and Loss. p) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue from Sale
Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.
Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment. Amounts disclosed as revenue are inclusive of excise duty and net of returns, rebates and discounts, taxes, etc.
Revenue from Services
Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.
Interest income
Interest income from a Financial Asset is recognised using effective interest rate method.
Dividend
Dividend income is recognized when the Company''s right to receive the payment has been established. q) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial instruments also covers contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial instruments, with the exception of contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity''s expected purchase, sale or usage requirements.
(i) Financial Assets
i) Initial recognition and measurement
All financial assets are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition or issue of Financial Assets and financial liabilities, which are not at Fair Value through Profit or Loss, are adjusted to the fair value on initial recognition. Purchases and sales of Financial Assets are recognised using trade date accounting.
ii) Subsequent measurement
1) Financial Assets measured at amortised cost:
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the assets in order to collect contractual cash flows and the contractual terms of financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
2) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVOCI):
A Financial Asset is measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial Asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding.
3) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL):
A Financial Asset which is not classified in any of the above categories is measured at FVTPL.
iii) Investment in subsidiary:
The Company has accounted for its investments in Subsidiary at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.
iv) Derivative Instrument:
The Company has not entered any transaction in Derivatives, during the current and previous year.
v) Loans, Deposits and Receivable:
Loans and receivable are non-derivative financial assets with fixed or determinable payment that are not quoted in the active market. Such assets are carried at amortised cost using the effective interest method.
vi) Impairment of Financial Assets
In accordance with Ind-AS 109, The Company uses âExpected Credit Losses (ECL)â model, for evaluating impairment of Financial Assets other than those measured at Fair Value Through Profit and Loss (FVTPL).
Expected credit losses are measured through as loss allowance at an amount equal to:
- The 12- months expected credit losses (expected credit losses that result from those default events on the financial instruments that are possible within 12 months after the reporting date); or
- Full lifetime expected credit losses(expected credit losses that result from all possible default events over the life of the financial instrument)
The credit loss is difference between all contractual cash flows that are due to an entity in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate. This is assessed on an individual or collective basis after considering all reasonable factors including that which are forward-looking. For trade receivables company applies âSimplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
Other Financial Assets mainly consists of Loans to employees, Security Deposit, other deposits, interest accrued on Fixed Deposits, other receivables and advances measured at amortized cost.
Following is the policy for specific financial assets:-
ii) Financial liabilities
1) Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and other payables, financial guarantee contracts.
2) Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
3) Derivative Financial Instruments and Hedge Accounting
The company has not entered into any contract, which is related to derivative financial instrument and hedge accounting during the current and previous year.
iii) Derecognition of Financial Instruments
The company derecognises a financial asset when the contractual rights to the cash flows from the Financial Asset expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109. A Financial Liability (or part of Financial Liability) is derecognised from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.
iv) Offsetting of Financial Instruments
Financial Assets and Financial Liabilities are offset and the net amount is presented in the Balance Sheet when, and only when, the Company has a legally enforceable legal right to set off the amount and it intends, either to to settle them on a net basis, to realise the assets and settle the liabilities simultaneously.
v) Fair value measurements of financial instruments
The Company measures financial instruments, such as, derivatives, investments in Mutual funds, etc. at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that mark
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows:
- Level 1 â Quoted (unadjusted) prices in active markets for identical assets or liabilities
- Level 2 â Valuation techniques for which the input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 â Valuation techniques for which the input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between the levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
External valuer''s are involved for valuation of significant assets, such as properties, unquoted financial assets etc, if needed. Involvement of independent external valuers is decided upon annually by the Company. Further such valuation is done annually at the end of the financial year and the impact, if any, on account of such fair valuation is taken in the annual financial statements.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Changes in assumptions could affect the reported value of fair value of financial instruments. r) Cash and Cash Equivalents
Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value where original maturity is three months or less.
s) Cash Flow Statement
Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated. t) Segment
As defined in Ind AS 108, Operating Segments are reported in the manner consistent with the internal reporting. The same is regularly reviewed by the Managing Director/ Chief Financial Officer who assess the operational performance of the Company d make strategic decisions
Segment Assets and Liabilities - The Company mainly deals in Plastic Products. Most of the Asset and Liabilities of the reportable segment are common/interchangeable hence it is not practically possible to allocate the same. Consequently, Segment Assets and Liabilities have not been presented Segment-Wise.
u) Earnings Per Share
Basic Earnings Per Share
Basic Earnings Per Share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period.
Diluted Earnings Per Share
Diluted Earnings Per Share is calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
v) Standards Issued but not Effective
On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with Customers and certain amendments to the existing Ind AS''s. These amendments shall be applicable to the Company w.e.f. April 01, 2018.
(a) Issue of Ind AS 115 - Revenue from Contracts with Customers
Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations. Revenue, Ind AS 11 Construction Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.
(b) Amendment to Existing issued Ind AS
The MCA has also carried out amendments of the following accounting standards:
i) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
ii) Ind AS 40 - Investment Property
iii) Ind AS 12 - Income Taxes
iv) Ind AS 28 -Investments in Associates and Joint Ventures and
v) Ind AS 112 - Disclosure of Interests in Other Entities
Application of above standards are not expected to have any significant impact on the Company''s Financial Statements.
Mar 31, 2017
1. Company Overview:
The company is carrying the manufacturing activity of Plastic Moulded Furniture, Plastic Extrusion Sheets, Moulds and Air Coolers having the manufacturing units at Daman, Baddi, Chennai, Haridwar and Kolkata and Corporate Office in Mumbai.
2. Significant Accounting Policies
a. Basis of Preparation of Financial Statement
(i) The Accounts are prepared on Historical cost convention on an accrual basis.
(ii) The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure regarding contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Examples of such estimates include provision for doubtful debts and advances, obligation under employees retirement benefits and Income Tax.
(iii\) The Financial Statements of the Company are prepared in accordance with the Section 129 of Companies Act, 2013 and accounting principles generally accepted, the Accounting Standards specified under Section 133 of the Companies Act, 2013 and Rule 7 of the Companies (Accounts) Rules, 2014.
b. Use of Estimates
Accounting estimate could change from period to period and actual result could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
c. Fixed Assets :
Fixed assets (other than âFreehold landâ where no depreciation is charged) are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of purchase price and any directly attributable cost of bringing the assets to working condition for the intended use. Cenvat Receivable and Value added tax, if any on plant & machinery and moulds have been reduced from the cost of acquisition of the said assets. The amount of Capital Work in Progress is valued at Cost.
d. Investment :
Investments that are not realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long term investments.
Current investments are stated at lower of cost and fair value. Long term investments are stated at cost less provision, if any, for other than temporary diminution in value.
e. Depreciation :
(i) Depreciation on Fixed Assets is provided on life assigned to each assets in accordance with the Schedule - II of the Companies Act, 2013. Depreciation on tangible assets is provided under straight line method except for Plant & Machinery and Moulds which is based on technical evaluation. Management believes that these useful lives represent the period over which the Management accept to use these assets. Hence the useful life for Plant & Machinery of 10 years and Moulds of 6 years for continuous running is different from the useful life as prescribed under Part C of Schedule II of Companies act, 2013. Consequently based on the technical evaluation, the Company has reassessed the useful life of its Fixed Assets;
(ii) Cost of Leasehold Land is amortized over the period of lease;
(iii) Assets like mobile phones, telephone instruments, etc., are fully depreciated in the year of purchase/ acquisition.
f. Inventories :
Item of inventories are valued at lower of cost & net realizable value after providing for obsolescence, if any.
1. Raw Material - The cost of Raw Material is arrived at after reducing the available cenvat, education cess, secondary education cess and value added tax and the Raw Materials are valued at cost.
2. Finished goods - Finished Goods are valued at the cost or Net realizable value, whichever is lower.
3. Packing Material and stores, spares & consumable are valued at cost.
g. Revenue Recognition :
Revenue is accounted on accrual basis unless otherwise stated.
Other Income such as Dividend Income is recognized when Company''s right to receive the Dividend is established by the reporting date, Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. The Income from Services are recognized on accrual basis.
h. Leases
Operating Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased terms, are classified as operating lease. Operating Lease payments are recognized as an expense in the Profit and Loss Account on a straight line basis over the lease term. Leasehold Lands are depreciated according to the Lease Period.
i. Sales :
Gross Sales are inclusive of Duties and Taxes. The Sales are recognized when the significant rights and reward of the ownership of the goods pass to the buyer which is generally when the goods are loaded into Party''s vehicle for final dispatch. Sales are net of rebates, rate difference, trade discounts, claims & shortages.
j. Excise Duty
Excise Duty is accounted on the basis of both, payment made in respect of goods cleared and provisions are made for goods lying in Stock.
k. Foreign Currency Transactions :
a. Foreign Currency transactions are initially recorded at the rates of exchange prevailing on the date of transactions.
b. Non Monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
l. Employee Retirement Benefits :
a) Short term employee benefits are recognized as an expenses at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.
b) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined by using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Profit and Loss account.
m. Taxation :
Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961. Deferred tax Asset / liability is calculated by applying the applicable tax rate as at balance sheet date. Deferred tax adjustments on account of timing difference are recognized only to the extent there is reasonable certainty of realization. At each balance sheet date, carrying amounts of deferred tax assets / liability is reviewed and necessary adjustment are made in asset / liability.
n. Borrowing Cost :
Borrowing Cost directly attributable to the acquisition & construction of an asset, which take a substantial period of time to get ready for its intended use are capitalized as part of the cost of such asset, until such time assets is substantially ready for its intended use. All other borrowing costs are recognized in the Profit and Loss Accounts in the period in which they are incurred.
o. Impairment of Assets:
The impairment loss is recognized whenever carrying amount of asset are exceeds its estimated recoverable amount. It is reviewed at each balance sheet date. An impairment loss is further provided or reversed depending upon the changes in circumstances.
p. Warranty
Provision is estimated for expected warranty claim in respect of products sold during the year based on past experience regarding defective claim of products and the cost of rectification and replacement. It is expected that most of these cost will be incurred over next 12 months which are as per warranty terms.
q. Provisions, Contingent Liabilities and Contingent Assets :
A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent Liabilities, if material, are disclosed by way of notes to accounts. Contingent Assets are not recognized or disclosed in the financial statements.
r. Current / Non Current Items :
All Assets and Liabilities are presented as Current or Non Current as per the Company''s normal operating cycle and the other criteria set out in Schedule - III to the Companies Act, 2013.
Refer Notes (i) & (ii) below
(i) There is no change in the Authorized , Issued / Subscribed and Paidup Share Capital during the financial year.
(ii) Aggregate number of bonus share issue , share issued for consideration other than cash and share bought back during the period of 5 Year immediately preceding the reported date - Nil
(iii) Details of Shareholders holding 5% or more shares in the Company.
The above information has been complied to extent such parties have been identified on the basis of information available with the Company. (9) Disclosure of Operating lease
The Company has availed Operating Lease for its Factory Unit and Depots. These Leases are renewable on periodic basis, and cancellable at its option. The Company has not entered into sublease agreements in respect of these Leases. Lease Rental Expenses for Operating Lease charged to Profit & Loss Account for the financial year is '' 461.97/- Lacs (previous year '' 379.75 Lacs )
Mar 31, 2016
1. Company Overview:
The company is carrying the manufacturing activity of Plastic Moulded Furniture, Plastic Extrusion Sheets, Moulds and Air Coolers having the manufacturing units at Daman, Baddi, Chennai, Haridwar and Kolkata and Corporate Office in Mumbai.
2. Significant Accounting Policies
a. Basis of Preparation of Financial Statement
(a) The Accounts are prepared on Historical cost convention on an accrual basis.
(b) The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure regarding contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Examples of such estimates include provision for doubtful debts and advances, obligation under employees retirement benefits and Income Tax.
(c) The Financial Statements of the Company are prepared in accordance with the Section 129 of Companies Act, 2013 and accounting principles generally accepted, the Accounting Standards specified under Section 133 of the Companies Act, 2013 and Rule 7 of the Companies (Accounts) Rules, 2014.
b. Use of Estimates
Accounting estimate could change from period to period and actual result could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
c. Fixed Assets :
Fixed assets (other than âFreehold landâ where no depreciation is charged) are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of purchase price and any directly attributable cost of bringing the assets to working condition for the intended use. Cenvat Receivable and Value added tax, if any on plant & machinery and moulds have been reduced from the cost of acquisition of the said assets. The amount of Capital Work in Progress is valued at Cost.
d. Depreciation :
(a) Depreciation on Fixed Assets is provided on life assigned to each assets in accordance with the Schedule - II of the Companies Act, 2013. Depreciation on tangible assets is provided on the straight line method except for Plant & Machinery and Moulds which is based on technical evaluation. Management believes that these useful lives present the period over which the Management except to use these assets. Hence the useful life for Plant & Machinery of 10 years and Moulds of 6 years for continuous running is different from the useful life as prescribed under Part C of Schedule II of Companies Act, 2013. Consequently based on the technical evaluation the Company has reassessed the useful life of its Fixed Assets.
(b) Cost of Leasehold Land is amortized over the period of lease;
(c) Assets like mobile phones, telephone instruments, etc are fully depreciated in the year of purchase/ acquisition.
e. Inventories :
Item of inventories are valued at lower of cost & net realizable value after providing for obsolescence, if any.
(a) Raw Material - The cost of Raw Material is arrived at after reducing the available cenvat, education cess, secondary education cess and value added tax and the Raw Materials are valued at cost.
(b) Finished goods - Finished Goods are valued at the cost or Net realizable value, whichever is lower.
(c) Packing Material and stores, spares & consumable are valued at cost.
f. Revenue Recognition :
Revenue is accounted on accrual basis unless otherwise stated.
Other Income such as Dividend Income is recognized when Company''s right to receive the Dividend is established by the reporting date, Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. The Income from Services are recognized on accrual basis.
g. Leases
Operating Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased terms, are classified as operating lease. Operating Lease payments are recognized as an expense in the Profit and Loss Account on a straight line basis over the lease term. Leasehold Lands are depreciated according to the Lease Period.
h. Sales :
Gross Sales are inclusive of Duties and Taxes. The Sales are recognized when the significant rights and reward of the ownership of the goods pass to the buyer which is generally when the goods are loaded into Party''s vehicle for final dispatch. Sales are net of rebates, rate difference, trade discounts, claims & shortages.
I. Excise Duty
Excise Duty is accounted on the basis of both, payment made in respect of goods cleared and provisions are made for goods lying in Stock.
j. Foreign Currency Transactions :
(a) Foreign Currency transactions are initially recorded at the rates of exchange prevailing on the date of transactions.
(b) Non Monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
k. Employee Retirement Benefits :
(a) Short term employee benefits are recognized as an expenses at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.
(b) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined by using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Profit and Loss account.
l. Taxation :
Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961. Deferred tax Asset / liability is calculated by applying the applicable tax rate as at balance sheet date. Deferred tax adjustments on account of timing difference are recognized only to the extent there is reasonable certainty of realization. At each balance sheet date, carrying amounts of deferred tax assets / liability is reviewed and necessary adjustment are made in asset / liability.
m. Borrowing Cost :
Borrowing Cost directly attributable to the acquisition & construction of an asset, which take a substantial period of time to get ready for its intended use are capitalized as part of the cost of such asset, until such time assets is substantially ready for its intended use. All other borrowing costs are recognized in the Profit and Loss Accounts in the period in which they are incurred.
n. Impairment of Assets:
The impairment loss is recognized whenever carrying amount of asset are exceeds its estimated recoverable amount. It is reviewed at each balance sheet date. An impairment loss is further provided or reversed depending upon the changes in circumstances.
o. Warranty:
Provision is estimated for expected warranty claim in respect of products sold during the year based on past experience regarding defective claim of products and cost of rectification or replacement. It is expected that most of these cost will be incurred over next 12 months which are as per warranty terms.
p. Provisions, Contingent Liabilities and Contingent Assets :
A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent Liabilities, if material, are disclosed by way of notes to accounts. Contingent Assets are not recognized or disclosed in the financial statements.
q. Current / Non Current Items :
All Assets and Liabilities are presented as Current or Non Current as per the Company''s normal operating cycle and the other criteria set out in Schedule - III to the Companies Act, 2013.
Mar 31, 2015
A. Basis of Preparation of Financial Statement
(a) The Accounts are prepared on Historical cost convention on an
accrual basis.
(b) The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure regarding contingent liabilities as at the
date of the financial statements and the reported amounts of income and
expenses during the year. Examples of such estimates include provision
for doubtful debts and advances, obligation under employees retirement
benefits and Income Tax.
(c) The Financial Statements of the Company are prepared in accordance
with the Section 129 of Companies Act, 2013 and accounting principles
generally accepted, the Accounting Standards specified under Section
133 of the Companies Act, 2013 and Rule 7 of the Companies (Accounts)
Rules, 2014.
b. Use of Estimates
Accounting estimate could change from period to period and actual
result could differ from those estimates. Appropriate changes in
estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
c. Fixed Assets :
Fixed assets (other than "Freehold land" where no depreciation is
charged) are stated at cost less accumulated depreciation. Cost of
acquisition is inclusive of purchase price and any directly
attributable cost of bringing the assets to working condition for the
intended use. Cenvat Receivable and Value added tax, if any on plant &
machinery and moulds have been reduced from the cost of acquisition of
the said assets. The amount of Capital Work in Progress is valued at
Cost.
d. Depreciation :
Depreciation on Fixed Assets is provided on life assigned to each
assets in accordance with the Schedule - II of the Companies Act, 2013.
Consequently based on the technical evaluation the Company has
reassessed the useful life of its Fixed Assets. Consequent to the
reduction in the useful life of Fixed Assets based on transitional
provisions given in Schedule II RS. 449.45 (Net of Deferred Tax input
of RS. 165.58 lacs) has been adjusted against opening balance in
General Reserves.
e. Inventories :
Item of inventories are valued at lower of cost & net realizable value
after providing for obsolescence, if any.
1. Raw Material - The cost of Raw Material is arrived at after
reducing the available cenvat, education cess, secondary education cess
and value added tax and the Raw Materials are valued at cost.
2. Finished goods - Finished Goods are valued at the cost or Net
realizable value, whichever is lower.
3. Packing Material and stores, spares & consumable are valued at
cost.
f. Revenue Recognition :
Revenue is accounted on accrual basis unless otherwise stated.
Other Income such as Dividend Income is recognized when Company''s right
to receive the Dividend is established by the reporting date, Interest
income is recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable. The Income from Services
are recognized on accrual basis.
g. Leases
Operating Leases where the lessor effectively retains substantially all
the risks and benefits of ownership of the leased terms, are classified
as operating lease. Operating Lease payments are recognized as an
expense in the Profit and Loss Account on a straight line basis over
the lease term. Leasehold Lands are depreciated according to the Lease
Period.
h. Sales :
Gross Sales are inclusive of Duties and Taxes. The Sales are recognized
when the significant rights and reward of the ownership of the goods
pass to the buyer which is generally when the goods are loaded into
Party''s vehicle for final dispatch. Sales are net of rebates, rate
difference, trade discounts, claims & shortages.
I. Excise Duty
Excise Duty is accounted on the basis of both, payment made in respect
of goods cleared and provisions are made for goods lying in Stock.
j. Foreign Currency Transactions :
a. Foreign Currency transactions are initially recorded at the rates
of exchange prevailing on the date of transactions.
b. Non Monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction.
k. Employee Retirement Benefits :
a) Short term employee benefits are recognized as an expenses at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the Profit and Loss account for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined by using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to Profit and Loss
account.
l. Taxation :
Provision for current tax is made and retained in the accounts on the
basis of estimated tax liability as per the applicable provisions of
the Income Tax Act, 1961. Deferred tax Asset / liability is calculated
by applying the applicable tax rate as at balance sheet date. Deferred
tax adjustments on account of timing difference are recognized only to
the extent there is reasonable certainty of realization. At each
balance sheet date, carrying amounts of deferred tax assets / liability
is reviewed and necessary adjustment are made in asset / liability.
m. Borrowing Cost :
Borrowing Cost directly attributable to the acquisition & construction
of an asset, which take a substantial period of time to get ready for
its intended use are capitalized as part of the cost of such asset,
until such time assets is substantially ready for its intended use.
All other borrowing costs are recognized in the Profit and Loss
Accounts in the period in which they are incurred.
n. Impairment of Assets:
The impairment loss is recognized whenever carrying amount of asset are
exceeds its estimated recoverable amount. It is reviewed at each
balance sheet date. An impairment loss is further provided or reversed
depending upon the changes in circumstances.
o. Provisions, Contingent Liabilities and Contingent Assets :
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent Liabilities, if material,
are disclosed by way of notes to accounts. Contingent Assets are not
recognized or disclosed in the financial statements.
p. Current / Non Current Items :
All Assets and Liabilities are presented as Current or Non Current as
per the Company''s normal operating cycle and the other criteria set out
in Schedule - III to the Companies Act, 2013.
Mar 31, 2014
NIL
Mar 31, 2013
(i) Basis of Preparation of Financial Statement
(a) The Accounts are prepared on Historical cost convention on an
accrual basis.
(b) The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure regarding contingent liabilities as at the
date of the financial statements and the reported amounts of income and
expenses during the year. Examples of such estimates include provision
for doubtful debts and advances, obligation under employees retirement
benefits and Income Tax.
(c) The financial statement are prepared to comply in all material
respect with the Accounting Standards notified in the Companies
(Accounting standards) Rules, 2006 and provision of Companies Act,
1956.
(ii). Use of Estimates
Accounting estimates could change from period to period and actual
result could differ from those estimates. Appropriate changes in
estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
(iii). Fixed Assets :
Fixed assets (other than "Freehold land" on which no depreciation is
charged) are stated at cost less accumulated depreciation. Cost of
acquisition is inclusive of purchase price and any directly
attributable cost of bringing the assets to working condition for the
intended use. Cenvat receivable and Value added tax , if any, on plant
& machinery and moulds are reduced from the cost of acquisition of the
said assets. The amount of Capital Work in Progress is valued at Cost.
(iv). Depreciation :
Depreciation on Fixed Assets is provided on "Straight Line Method" at
rates prescribed in schedule XIV to the Companies Act, 1956 on pro-
rata basis.
Assets like mobile phones, telephone instruments etc are fully written
off in the year of purchase.
(v). Inventories :
Item of inventories are valued at lower of cost & net realizable value
after providing for obsolescence , if any. Inventory Cost is determined
in First in First Out basis.
(a) Raw Material - The cost of Raw Material is arrived at after
reducing the available cenvat, education cess, secondary education cess
and value added tax .
(b) Finished goods - At cost or net realizable value, whichever is
lower. The valuation of closing stock of finished goods made in
accordance with Accounting Standards and includes the value of excise
duty payable on Finished Goods and it is charged to the Profit and Loss
Account. Trading stock is maintained at net of value added tax.
(c) Packing Material and stores, spares & consumables are valued at
Cost.
(vi). Revenue Recognition :
Revenue is accounted on accrual basis unless otherwise stated. Sale of
products are recognized when the products are dispatched and sales are
net of returns , rate differences, trade discount etc.
Other Income such as Dividend income is recognized when Company''s right
to receive the Dividend is established by the reporting date, Interest
income is recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable. The Income from services
are recognized on accrual basis.
(vii). Leases:
Operating Leases where the lessor effectively retains substantially all
the risks and benefits of ownership of the leased terms, are classified
as operating lease. Operating Lease payments are recognized as an
expense in the statement of profit & loss on a straight line basis over
the Lease Term. Leasehold Lands are depreciated according to the Lease
Period.
(viii). Sales :
Sales are recognized when the significant rights and reward of the
ownership of the goods pass to the buyer. Sales are net of rebates,
trade discounts, claims & shortages.
(ix). Foreign Currency Transactions :
a. Foreign Currency transactions are initially recorded at the rates
of exchange prevailing on the date of transactions.
b. Non Monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transactions.
(x). Employee Retirement Benefits :
(a) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Statement of the year in
which the related service is rendered.
(b) Post employment and other long term employee benefits are
recognised as an expense in the Profit and Loss Statement for the year
in which the employee has rendered services. The expense is recognised
at the present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to the Profit and
Loss account.
(xi). Taxation :
Provision for current tax is made and retained in the accounts on the
basis of estimated tax liability as per the applicable provisions of
the Income Tax, 1961. Deferred tax Asset / liability is calculated by
applying the applicable tax rate as at balance sheet date. Deferred tax
adjustments on account of timing difference are recognized only to the
extent there is reasonable certainty of realization. At each balance
sheet date, carrying amounts of deferred tax asset / liability is
reviewed and necessary adjustments are made in asset / liability.
(xii). Borrowing Cost :
Borrowing Cost directly attributable to the acquisition & construction
of an asset which take a substantial period of time to get ready for
its intended use, are capitalized as a part of the cost of such assets,
until such time the asses is substantially ready for its intended use.
All other borrowing costs are recognized in the statement of profit &
loss in the period they occur.
(xiii). Impairment of Assets:
The impairment loss is recognized whenever the carrying amount of
assets exceeds its estimated recoverable amount and it is reviewed at
each Balance Sheet date. An impairment loss is further provided or
reversed depending upon the changes in circumstances.
(xiv). Provisions, Contingent Liabilities and Contingent Assets :
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent Liabilities, if material,
are disclosed by way of notes to accounts. Contingent Assets are not
recognized or disclosed in the financial statements.
(xv). Crrent / Non Current Items:
All Assets and Liabilities are presented as Current or Non Current as
per the Company''s normal operating cycle and the other criteria set out
in revised Schedule VI to the Companies Act, 1956. The Company has
ascertained its operating cycle as 12 months for the purpose of Current
and Non Current Classification of Assets and Liabilities.
Mar 31, 2012
1. Basis of Preparation of Financial Statement:
(a) The Accounts are prepared on Historical cost convention on an
accrual basis.
(b) The preparation of financial statements is in conformity with
generally accepted accounting principles which require management to
make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure regarding contingent liabilities
as at the date of the financial statements and the reported amounts of
income and expenses during the year. Examples of such estimates include
provision for doubtful debts and advances, obligation under employees
retirement benefits and Income Tax.
(c) The financial statement are prepared to comply in all material
respect with the accounting standard notified by the Companies
(Accounting standards) Rules, 2006 and provision of companies Act,
1956.
2. Use of Estimates:
Accounting estimate could change from period to period and actual
result could defer from those estimates. Appropriate changes in
estimates are made as the Management become aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
3. Fixed Assets:
Fixed assets (other than "Freehold land" where No depreciation is
charged) are stated at cost less accumulated depreciation. Cost of
acquisition is inclusive of purchase price and any directly
attributable cost of bringing the assets to working condition for the
intendeduse. Cenvat receivable and Value added tax , if any on plant &
machinery and moulds have been reduced from the cost of acquisition of
the said assets. The amount of Capital Work in Progress is valued at
Cost.
4. Depreciation:
Depreciation on Fixed Assets is provided on "Straight Line Method"
at ratesprescribed in schedule XIV to the Companies Act, 1956. Assets
like mobile phones, telephone instruments etc are fully written off in
the year of its purchase.
5. Inventories:
Item of inventories are measured at lower of cost & net realizable
value after providing for obsolence, if any. 'First in First out'
FIFO is the formula used for determination of Inventory Cost.
(a) Raw Material -The cost of Raw Material is arrived at after reducing
the available cenvat, education cess, secondary education cessand value
added tax .
(b) Finished goods - At cost or net realizable value, whichever is
lower. The valuation of closing stock of finished goods is in
accordance with AS-2 and includes the excise duty payable & the excise
duty element has been charged to the Profit and Loss Account. Trading
stock is maintained at net of value added tax.
(c) Packing Material and stores, spares & consumable - At cost or net
realizable value , whichever is lower.
6. Revenue Recognition:
Revenue is accounted on accrual basis unless otherwise stated. Sale of
products are recognized when the products are dispatched and sales are
net of returns , rate differences, trade discount etc.
Other Income such as Dividend, Interest and Income from Services are
recognized on accrual basis.
7. Leases:
Leases where the lessor effectively retains substantially all the risk
and benefit of ownership of the lease term are classified as operating
lease. Lease rent under operating leases are reconignised in the profit
and loss account on a straight-line basis. The cost of lease hold land
is amortised over the period of lease.
8. Sales:
Sales are net of rebates, trade discounts, claims & shortages.
9. Foreign Currency Transactions:
Transaction denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximate the actual rate at the date of transaction.
Non Monetary foreign currency items are carried at cost.
10. Employee Retirement Benefit:
a) Post -employment benefit plans
1) Defined contribution plan
Contribution to Provident fund, Employee State Insurance Corporation
and Superannuation fund are recognized as expense when employees have
rendered services entitling them to contribution.
2) Defined benefit plan
Defined benefit Plans are determined by using the project unit credit
method with actuarial valuation being carried out at the Balance Sheet
date. Actuarial gains & losses are recognized in full in the profit &
loss accounts for the period in which -ÃÃ they accrue. -n-a
b) Short term employment benefits
Short term employee benefits are recognised as an expenses at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
11. Taxation:
Provision for current tax is made and retained in the accounts on the
basis of estimated tax liability as per the applicable provisions of
the Income Tax, 1961. Deferred tax Asset / liability is calculated by
applying the applicable tax rate as at Balance Sheet date. Deferred tax
adjustment on account of timming difference are recognized only to the
extent there is reasonable certainty of realization. At each balance
sheet date, carrying amount of deferred tax assets / liability is
reviewed and necessary adjustment to asset / liability is made.
12. Borrowing Cost:
Borrowing Cost attributable to the acquisition of qualifying fixed
assets is capitalized as part of the cost of such assets till such
assets are put to use. All other borrowing costs are charged to Profit
and Loss account.
13. Impairment of Assets:
The carrying amounts of assets are reviewed at balance sheet date. If
there is any indication of impairment based on internal & external
factors i.e. when the carrying amount of assets exceeds the recoverable
amount, an impairment loss is charged to the profit & Loss account in
the year in which an asset is identified as impaired. An impairment
loss recognized in prior accounting period is reversed or reduced if
there has been a favourable change in the estimate of the recoverable
amount.
14. Provisions, Contingent Liabilities and Contingent Assets:
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent Liabilities, if material,
are disclosed by way of notes to accounts. Contingent Assets are not
recognized or disclosed in the financial statements.
Mar 31, 2011
1. Basis of Preparation of Financial Statement
(a) The Accounts are prepared on Historical cost convention on an
accrual basis.
(b) The preparation of financial statements in conformity with
generally accepted accounting principles require management to make
estimates and assumption that affect the reported amount of assets and
liabilities and disclosure regarding contingent liabilities as at the
date of the financial statements and the reported amounts of income and
expenses during the year. Examples of such estimates include provision
for doubtful debts and advances, obligation under employees retirement
benefits and Income Tax.
(c) The financial statement are prepared to comply in all material
respect with the accounting standard notified by the Companies
(Accounting standards) Rules, 2006 and provision of companies Act,
1956.
2. Use of Estimates
Accounting estimate could change from period to period and actual
result could defer from those estimates. Appropriate changes in
estimates are made as the Management become aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
3. Fixed Assets :
Fixed assets (other than ÃFreehold landà where No depreciation is
charged) are state at cost less accumulated depreciation , cost of
acquisition is inclusive of purchase price and any directly
attributable cost of bringing the assets to working condition for the
intended to use. Cenvat receivable , if any on plant & machinery and
moulds has been reduced from the cost of acquisition of the said
assets. The amount of Capital Work in Progress is valued at Cost.
4. Depreciation :
Depreciation on Fixed Assets is provided on ÃStraight Line Methodà at
rates prescribed in schedule XIV to the Companies Act, 1956. Assets
like mobile phones, telephone instruments etc are fully written off in
the year of its purchase.
5. Inventories :
(a) Raw Material - At cost or market value, whichever is lower. The
cost of Raw Material is arrived at after reducing the available cenvat,
education cess, secondary education cess and value added tax .
(b) Finished goods - At cost or net realizable value, whichever is
lower. The valuation of closing stock of finished goods is in
accordance with AS- 2 and includes the excise duty payable &. the
excise duty element has been charged to the Profit and Loss Account.
Trading stock is maintained at net of value added tax.
(c) Packing Material and stores, spares &. consumable - At cost or
market value, whichever is lower. ÃFirst in First outà FIFO is the
formula used for determination of Inventory Cost.
6. Investments :
Long-term investments are stated at cost. Provision for diminution in
the value of long-term investments is made only if such a decline is
other than temporary in the opinion of the management.
Short-term Investment is in mutual fund are stated at the the Net Asset
Value of the Funds. During the FY. 2010-11 units worth Rs
38,01,54,092/- (P.Y. Rs 13,57,89,078/-) were purchased and units worth
Rs 39,79,87,790/- (P.Y. Rs 14,84,00,000/-) were sold.
7. Revenue Recognition :
Revenue is accounted for an accrual basis unless otherwise stated. Sale
of products are recognized when the product are dispatched and sales
are net of returns , rate difference, trade discount etc.
Other Income such as Dividend, Interest and Income from Services are
recognized on accrual basis.
8. Leases
Leases where the lessor effectively retains substantially all the risk
and benefit of ownership of the lease term are classified as operating
lease. Lease rent under operating leases are recognised in the profit
and loss account on a straight-line basis.
9. Sales :
Sales are net of rebates, trade discount, claims & shortages.
10. Foreign Currency Transactions :
a. Foreign Currency loans / liabilities are stated in the accounts at
the end of the year based on the prevailing exchange rates.
b. Foreign Exchange differences and charges on forward contracts are
adjusted to profit and loss account.
11. Employee Retirement Benefit :
a) Post -employment benefit plans
1) Defined contribution plan
Contribution to Provident fund, Employee State Insurance Corporation
and Superannuation fund are recognized as expense when employees have
rendered services entitling them to contribution.
2) Defined benefit Plan
Defined benefit Plans are determined by using the project unit credit
method with actuarial valuation being carried out at the balance sheet
date.
Actuarial gains & losses are recognized in full in the profit &. loss
accounts for the period in which they accrue.
b) Short term employment benefits
The undisclosed amount of short term employee benefit expected to be
paid in exchange for the services rendered by the employee is
recognized during the period when the employee renders the services.
These benefits include compensated absences such as leave salary and
performance incentives.
12. Taxation :
a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per the applicable provisions
of the Income Tax, 1961.
b) Deferred tax Asset / liability is calculated by applying the
applicable tax rate as at balance sheet date. Deferred tax adjustment
on account of timming difference are recognized only to the extent
there is reasonable certainty of realization. At each balance sheet
date, carrying amount of deferred tax assets / liability is reviewed
and necessary adjustment to asset / liability is made.
13. Borrowing Cost :
Borrowing Cost attributable to the acquisition of qualifying fixed
assets is capitalized as part of the cost of such assets till such
assets are put to use. All other borrowing costs are charged to Profit
and Loss account.
14. Impairment of Assets:
The carrying amounts of assets are reviewed at balance sheet date. If
there is any indication of impairment based on internal & external
factors i.e. when the carrying amount of assets exceeds the recoverable
amount, an impairment loss is charged to the profit & Loss account in
the year in which an asset is identified as impaired. An impairment
loss recognized in prior accounting period is reversed or reduced if
there has been a favourable change in the estimate of the recoverable
amount.
15. Provisions, Contingent Liabilities and Contingent Assets :
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent Liabilities, if material,
are disclosed by way of notes to accounts. Contingent Assets are not
recognized or disclosed in the financial statements.
Forming part of the accounts for the financial year 2010-11
Mar 31, 2010
1. Basis of Preparation of Financial Statement:
(a) The Accounts are prepared on Historical cost convention on an
accrual basis.
(b) The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumption that affect the reported amounts of assets and
liabilities and disclosure regarding contingent liabilities as at the
date of the financial statements and the reported amounts of income and
expenses during the year. Examples of such estimates include provision
for doubtful debts and advances, obligation under employees retirement
benefits and Income Tax.
(c) The financial statement are prepared to comply in all material
respect with the Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 and provision of companies Act,
1956.
2. Use of Estimates:
Accounting estimate could change from period to period and actual
results may defer from those estimates. Appropriate changes in
estimates are made as the management becomes aware of changes in the
circumstances. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.
3. Fixed Assets:
Fixed assets (other than ÃFreehold landà where No depreciation is
charged) are state at cost less accumulated depreciation, cost of
acquisition is inclusive of purchase price and any directly
attributable cost of bringing the assets to working condition. Cenvat
receivable, if any on plant & machinery and moulds has been reduced
from the cost of acquisition of the assets
4. Depreciation:
Depreciation on Fixed Assets is provided on ÃStraight Line Methodà at
rates prescribed in schedule XIV to the Companies Act, 1956.
5. Inventories:
Raw Materials - At cost or market value, whichever is lower. The cost
of Raw Materials are arrived at after reducing the cenvat, education
cess, secondary education cess and value added tax, availed on it.
Finished goods - At cost or net realizable value, whichever is lower.
The valuation of closing stock of finished goods is in accordance with
AS-2 and includes the excise duty payable & the excise duty element has
been charged to the Profit and Loss Account. Trading stock is
maintained at net of value added tax.
Packing Materials, stores, spares and consumable are stated at cost or
market value, whichever is lower.
6. Investments:
Long - term investments are stated at cost. Provision for diminution in
the value of long-term investments is made only if such diminution is
permanent in nature.
Short-term Investments are made in SBI Liquid Fund and are stated at
Net Asset Value. During the year units worth Rs.13,57,89,078/-
(Previous year Rs. 5,76,92,664/-) were purchased and units worth
Rs.14,84,00,000/- (Previous Year Rs. 2,75,00,000/-) were sold.
7. Revenue Recognition:
Revenue is accounted for an accrual basis unless otherwise stated. Sale
of products are recognized when the product are dispatched and sales
are net of returns & discounts.
8. Lease:
Leases where the lessor effectively retains substantially all the risk
and benefit of ownership of the lease term are classified as operating
lease. Lease rent under operating leases are reconignised in the profit
and loss account on a straight-line basis.
9. Foreign Currency Transactions :
Foreign Currency loans / liabilities are stated in the accounts at the
end of the year based on the prevailing exchange rates. Foreign
Exchange differences and charges on forward contracts are adjusted to
profit and loss account.
10. Employee Benefits:
a) Post -employment benefit plans
1) Defined contribution plan
Contribution to Provident fund, Employee State Insurance Corporation
and Superannuation fund are recognized as expense when employees have
rendered services.
2) Defined benefit Plan
Defined benefit Plans are determined by using the project unit credit
method with actuarial valuation being carried out at the
balance sheet date.
Actuarial gains / losses are recognized in full in the profit & loss
accounts for the period in which they accrue.
b) Short term employment benefits
The undisclosed amount of short term employee benefits are expected to
be paid in exchange for the services rendered by the employee is
recognized during the period when the employee renders the services.
These benefits include compensated absences such as leave salary and
performance incentives.
11. Taxation:
Provision for current tax is made in the accounts on the basis of
estimated tax liability as per the applicable provisions of the Income
Tax, 1961.
Deferred tax Asset / liability is calculated by applying the applicable
tax rate as at balance sheet date. Deferred tax adjustments on account
of timing difference are recognized only to the extent there is
reasonable certainty of realization. At the Balance Sheet date,
carrying amount of deferred tax assets / liability is reviewed and
necessary adjustments to assets / liabilities are made.
12. Borrowing Costs:
Borrowing Costs are attributable to the acquisition of qualifying fixed
assets are capitalized as part of the cost of such assets till such
assets are put to use. All other borrowing costs are charged to Profit
and Loss account. There was no Borrowing During the year.
13. Impairment of Assets:
The carrying amounts of assets are reviewed at balance sheet date. If
there is any indication of impairment based on internal / external
factors, i.e. when the carrying amount of assets exceeds the
recoverable amount, an impairment loss is charged to the profit & Loss
account in the year in which the asset is identified as impaired. An
impairment loss recognized in prior accounting period is reversed or
reduced if there has been a favorable change in the estimate of the
recoverable amount. There was no impairment of assets during the year.
14. Provisions, Contingent Liabilities and Contingent Assets:
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefits will be
required to settle an obligation. Contingent Liabilities, if material,
are disclosed by way of notes to accounts. Contingent Assets are not
recognized or disclosed in the financial statements.