Accounting Policies of ZF Steering Gear (India) Ltd. Company
Mar 31, 2018
1. Significant accounting policies
1.1 Basis of preparation
(i) Statement of compliance
These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') as per the Companies (Indian Accounting Standards) Rules, 2015 (as amended) notified under Section 133 of the Companies Act, 2013 (the ''Act'') and other relevant provisions of the Act.
The financial statements up to and for the year ended 31 March 2017 were prepared in accordance with the accounting standards as per the Companies (Accounting Standard) Rules, 2006 (as amended) (referred to as "Indian GAAP" or "Previous GAAP"), notified under Section 133 of the Act and other relevant provisions of the Act.
These financial statements are the first financial statements of the Company under Ind AS, hence Ind AS 101 First time adoption of Indian Accounting Standards has been applied. Refer note 37 for an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.
These financial statements were authorised for issue by the Company''s Board of Directors on 30th May 2018.
(ii) Basis of measurement
The financial statements have been prepared on a historical cost basis except for following items:
- Certain financial assets and liabilities which are measured at fair value; and
- Defined benefit plans - plan assets measured at fair value
(iii) Use of estimates
In preparing these financial statements, the management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 31st March 2018 is included in the following notes:
Note 24 - Recognition of deferred tax assets: Availability of future taxable profit against which tax losses carried forward can be used;
Note 30 - Measurement of defined benefit obligations: Key actuarial assumptions;
Note 13 - Provision for warranty.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
1.2 Current versus non-current classification
The Company presents assets and liabilities in its Balance Sheet based on current versus non-current classification.
An asset is classified as current when it is:
a) Expected to be realized or intended to sold or consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realized within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when:
a) it is expected to be settled in normal operating cycle,
b) it is held primarily for the purpose of trading,
c) it is due to be settled within twelve months after the reporting period
d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
1.3 Segment reporting
Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments. Operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.
Corporate assets and liabilities, income and expenses which relate to the Company as a whole and are not allocable to segments, have been included under unallocated items. Refer Note 29 for segment information presented.
1.4 Foreign currencies
(i) Functional and presentation currency
The financial statements are presented in Indian Rupees (INR), which is the Company''s functional and presentation currency. The Company determines its own functional currency (the currency of the primary economic environment in which the Company operates) and items included in the financial statements of the Company are measured using that functional currency.
(ii) Transactions and balances
Transactions in foreign currencies are initially recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the Company''s functional currency of the entity at the rates prevailing on the reporting date. 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.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at reporting date exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Profit and Loss.
1.5 Revenue
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of excise duty, sales returns, trade allowances, rebates, value added taxes and amounts collected on behalf of third parties.
(a) Sale of goods
Revenue is recognised when significant risk and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. The timing of the transfer of risks and rewards varies depending on the individual terms of the sales agreement.
(b) Sale of solar power
Revenue from generation of electricity is recognised on an accrual basis on the basis of billings to the customer and includes unbilled revenues accrued up to the end of the accounting period.
1.6 Government Grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss in a proportion in which depreciation of related assets and presented within other income.
1.7 Income Tax
The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the balance sheet method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
Minimum Alternate Tax (''MAT'') credit entitlement is generally recognised as a deferred tax asset if it is probable (more likely than not) that MAT credit can be used in future years to reduce the regular tax liability.
1.8 Leases
Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and
rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
1.9 Impairment of non financial assets
Property, plant and equipments (PPE) and Intangible assets (IA) that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are compared at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or Companys of assets (cash-generating units). Non- financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
1.10 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other shortterm, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
1.11 Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment, if any.
1.12 Inventories
Inventories are valued at the lower of cost (Value of cost is computed on a weighted average basis) and estimated net realisable value. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Goods-in-transit are stated at actual cost incurred upto the date of balance sheet. Scrap is valued at net realisable value.
1.13 Financial instruments
Financial instruments are recognised when the Company becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Company commits to purchase or sell the asset.
A. Financial Assets
The Company determines the classification of its financial assets at initial recognition. The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.
(I) Classification
The financial assets are classified in the following measurement categories:
a) Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
b) Those to be measured at amortised cost.
Financial assets at Fair Value Through Profit or Loss (FVTPL)
Financial assets at fair value through profit or loss include financial assets held for trading, debt securities and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets at Fair value through profit or loss are carried in the Balance Sheet at fair value with net changes in fair value presented as Fair value Gains/Losses on financial assets in statement of profit or loss. Interests, dividends and gain/loss on foreign exchange on financial assets at fair value through profit or loss are included separately in other income.
(II) Measurement
Debt Instruments
Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments.
Amortised Cost
The Company classifies its financial assets as at amortised cost only if both of the following criteria are met:
a) The asset is held within a business model with the objective of collecting the contractual cash flows, and
b) The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding.
Financial assets at amortised cost include trade and other receivables and other financial assets that are held with the objective of collecting contractual cash flows. After initial measurement at fair value, the financial assets are measured at amortised cost, less impairment.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the Effective Interest Rate (EIR). The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the Statement of Profit and Loss in other income.
(III) Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the assets expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of the transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
B. Financial Liabilities
The Company determines the classification of its financial liabilities at initial recognition.
(I) Classification
The financial liabilities are classified in the following measurement categories:
a) Those to be measured as financial liabilities at fair value through profit or loss,
b) Those to be measured at amortised cost.
(II) Measurement
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Financial liabilities measured at amortised cost
Financial liabilities are initially recognised at fair value, net of transaction cost incurred and are subsequently measured at amortised cost, using the EIR method. Any difference between the proceeds net of transaction costs and the amount due on settlement or redemption of borrowings is recognised over the term of the borrowing.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest charge over the relevant effective interest rate period. The EIR is the rate that exactly discounts estimated future cash outflow (including all fees and points paid or received that form an integral part of the EIR, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. This category generally applies to borrowings.
(III) Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
(IV) Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
1.14 Investments in joint venture
Investments in joint venture is recognised at cost as per Ind AS 28 "Investments in Associates and Joint Ventures." Except where investments accounted for at cost shall be accounted for in accordance with Ind AS 105, Non-current Assets Held for Sale and Discontinued Operations, when they are classified as held for sale.
Transition to Ind AS
On transition to Ind AS, the Company has opted to consider previous GAAP carrying values of investment in joint venture as on the date of transition i.e. April 1, 2016 as deemed cost.
1.15 Interest and Dividend income
Interest income
For all financial instruments measured at amortised cost and interest bearing financial assets, interest income is recognised using the EIR, which is the rate that discounts the estimated future cash receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset.
When a loan and receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original EIR of the instrument, and continues unwinding the discount as interest income. Interest income on impaired financial asset is recognised using the original EIR.
Dividend income
Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.
1.16 Property, plant and equipment (PPE)
Property, plant and equipment are measured at cost/ deemed cost, less accumulated depreciation and impairment losses, if any. Cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated attributable costs of dismantling and removing the item and restoring the site on which it is located.
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 Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repair and maintenance costs are recognised in Statement of Profit and Loss as incurred.
Transition to Ind AS
On transition to Ind AS, the Company has opted to consider previous GAAP carrying value of property, plant and equipment as on the date of transition i.e. April 1, 2016 as deemed cost.
Depreciation methods, estimated useful lives and residual value
Depreciation is provided on a written down value method (WDV) method over the estimated useful lives as prescribed under Schedule II to the Companies Act, 2013. Except in respect of :
a) Plant & machinery depreciated over the useful life of 1 to 15 years, wherein, the life of the said assets has been assessed based on internal technical evaluations, taking in to the nature of the asset, the estimated usage of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, manufacturer''s warranties and maintenance support, etc. Tangible assets residual value is kept at 5% of cost of the assets.
The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount and recorded in statement of profit or loss.
1.17 Investment Property
Investment property is property (land or a building or part of a building or both) held either to earn rental income or for capital appreciation or for both, but neither for sale in the ordinary course of business nor used in production or supply of goods or services or for administrative purposes. Investment properties are stated at cost net of accumulated depreciation and accumulated impairment losses, if any.
Any gain or loss on disposal of investment property calculated as the difference between the net proceeds from disposal and the carrying amount of the Investment Property is recognised in Statement of Profit and Loss.
1.18 Intangible assets
(i) Recognition and measurement
Identifiable intangible assets are recognised when the Company controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured. Intangible assets are stated at cost less accumulated amortization and impairments. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.
(ii) Amortisation methods and periods
The Company amortises intangible assets with a finite useful life using the straight-line method over the following periods:
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all intangible assets recognised as at April 1, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.
1.19 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in statement of profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income.
1.20 Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Other borrowing costs are expensed in the period in which they are incurred.
1.21 Provisions, Contingent Liabilities and Capital Commitments
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, 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.
The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.
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 recognized as a finance cost.
Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote.
Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above the threshold limit.
1.22 Employee Benefits
(i) Short-term obligations
Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave is expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Post-employment obligations
The Company operates the following post-employment schemes:
(a) defined benefit plans such as gratuity; and
(b) defined contribution plans such as provident fund.
Defined Benefit Plans - Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.
Defined contribution plan
The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
1.23 Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company;
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
1.24 Rounding off amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest million as per the requirement of Schedule III, unless otherwise stated.
Mar 31, 2017
A) Corporate Information :
ZF Steering Gear India Limited ("the Company") is a listed company domiciled in India and was incorporated on1981 under the provision of the Companies Act, 1956. The company is primarily engaged in the business of production & assembling of steering systems for vehicles, buses and tractors. The company has plant at Vadu Budruk, Near Pune for production and assembling of steering systems and accessories.
B) Basis of Preparation of Financial Statements
i. The financial statements are prepared under the Historical Cost Convention, on the accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 and comply with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 2013.
ii. Estimates and Assumptions used in preparation of the Financial Statements are based upon Management''s evaluations of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.
C) Fixed Assets and Depreciation:
i. Fixed Assets:
Fixed Assets are stated at cost (net of Cenvat and sales tax credit)of acquisition or construction or at manufacturing cost in case of Company manufactured assets, less accumulated depreciation (except on free hold land). The cost includes freight, duties, taxes, and incidental expenses related to acquisition, installation, erection and commissioning.
(ii) Depreciation:
Depreciation has been provided on the Written Down Value (W.D.V.) as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of
a) Plant & machinery (other than machinery spares) depreciated over the useful life of 1 to 15 years, wherein, The life of the said assets has been assessed based on internal technical evaluations, taking in to the nature of the asset, the estimated usage of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, manufacturer''s warranties and maintenance support, etc. Tangible assets residual value is kept at 5%, of fixed asset.
b) ERP software & and machinery spares each having value more than Rs. 1 Lakh written off in three equal Installment from the date of capitalization.
c) Leasehold land''s value is written off on the basis of the tenure of the Lease.
Depreciation is provided on pro-rata basis on additions/ deductions during the year.
D) Investments:
Long term Investments are stated at cost. Provision is made to recognize any diminution in the value, other than temporary, in the carrying amount of any long term investments.
Current Investments are carried at lower of cost and market value determined on an individual investment basis.
Investment in Immovable Property
Immovable Properties that are not intended to be occupied substantially for self use by or in the operations of the Company, have been classified as investment Properties. Investment properties are carried at cost less accumulated depreciation.
E) Inventories:
Inventories are valued at the lower of cost (Value of cost is computed on a weighted average basis) and estimated net realizable value. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Excise duty is included in the value of finished goods inventory. Goods-in-transit are stated at actual cost incurred upto the date of balance sheet.
Scrap is valued at net realizable value.
F) Revenue Recognition:
Sale of goods is recognized when the significant risks and rewards of ownership of goods have passed on to the customers, as per the terms of contract. Gross Sales include excise duty but excludes sales tax and are net of trade discounts.
G) Employees Retirement Benefits:
Defined Contribution plans: The Company makes specified monthly contributions towards employee provident fund. Defined benefit plans: The Company''s gratuity and leave encashment are defined benefit plans. The present value of the obligation under such defined benefit plans is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows.
The discount rates used for determining the present value of the obligation under defined benefit plans, are based on the market yields on Government Securities as at the Balance Sheet date. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.
Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account in the year in which they relate.
H) Foreign Currency Transactions:
Transactions in foreign currency are accounted at exchange rates prevailing at the time of the transaction. All exchange gains / losses arising out of such transactions are taken to Profit and Loss account. Foreign currency monetary assets and liabilities are translated at the exchange rates prevailing on the last working day of the accounting year. 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.
I) Taxation:
Provision is made for income tax liability which may arise on the results for the year at the current rate of tax in accordance with the Income-tax Act, 1961. The deferred tax for timing differences between the book profit and tax profits for the year is accounted for using the tax rates enacted as of the Balance Sheet date. Deferred tax assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future.
J) Segment Reporting
a) Identification of Segments
The Company''s operating business are organized and managed separately according to the nature of activity , with each segment representing a strategic business unit that offers different activity.
b) Unallocated items
Corporate assets and liabilities, income and expenses which relate to the Company as a whole and are not allocable to segments, have been included under unallocated items.
K) Impairment of Assets :
At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss Account to the extent the carrying amount exceeds recoverable amount. During the year there was no impairment of assets.
L) Provisions and Contingent Liabilities
a) Provisions in respect of present obligation arising out of past events are made in the accounts when reliable estimates can be made about the amount of obligation.
b) Contingent Liabilities are disclosed when there is a possible obligation that may, but probably will not, require an outflow of resources.
M) Earnings per Share
Basic and diluted earning per share is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year.
N) Warranty
The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures.
O) Government grants and subsidies
Grants and subsidies from the government are recognized when there is reasonable assurance that [i] the Company will comply with the conditions attached to them, and [ii] the grant / subsidy will be received.
When the grant or subsidy relates to revenue, it is recognized as income 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. Where the grant relates to an asset, it is recognized as deferred income and is allocated to Statement of Profit and Loss over the periods and in the proportions in which depreciation on those assets is charged.
ii) Terms/ Rights attached to Equity Shares
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupee. The dividend recommended by the Board of Directors is subject to approval of the members at the ensuing Annual General Meeting.
During the Year ended on 31st March, 2017, the amount of per share dividend declared as distribution to equity shareholders is Rs.8 (P.Y. 12.50).
In the event of liquidation of the Company, the holders of each equity share will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by shareholders.
Mar 31, 2015
A) Basis of Preparation of Financial Statements :
(i) The financial statements are prepared under the Historical Cost
Convention, on the accrual basis of accounting and in accordance with
the provisions of the Companies Act, 2013 and comply with the
Accounting Standards notified by the Companies (Accounting Standards)
Rules, 2006 and the relevant provisions of the Companies Act, 2013
(ii) Estimates and Assumptions used in preparation of the Financial
Statements are based upon Management's evaluations of the relevant
facts and circumstances as of the date of the financial
statements,which may differ from the actual results at a subsequent
date.
B) Fixed Assets and Depreciation :
(i) Fixed Assets :
Fixed Assets are stated at cost (net of Cenvat and sales tax credit )
of acquisition or construction or at manufacturing cost in case of
Company manufactured assets, less accumulated depreciation (except on
free hold land). The cost includes freight, duties, taxes, and
incidental expenses related to acquisition, installation, erection and
commissioning.
(ii) Depreciation :
a) Depreciation is provided as per the Written Down Value (W.D.V.)
method for three shift as per useful life specified in Schedule II to
the Companies Act, 2013 except ERP Software which is charged off in
three equal installments from the date of capitalisation. Tangible
assets residual value is kept at 5% ,of fixed asset.
b) Leasehold land 's value is written off on the basis of the tenure of
the Lease.
c) Depreciation is provided on pro-rata basis on additions / deductions
during the year.
C) Investments :
Long term Investments are stated at cost. Provision is made to
recognise any diminution in the value, other than temporary, in the
carrying amount of any long term investments.
Current Investments are carried at lower of cost and market value
determined on an individual investment basis.
Investment in Immovable Property
Immovable Properties that are not intended to be occupied substantially
for self use by or in the operations of the Company, have been
classified as investment Properties . Investment properties are carried
at cost less accumulated depreciation.
D) Inventories :
Inventories are valued at the lower of cost (Value of cost is computed
on a weighted average basis) and estimated net realisable value.
Finished goods and work-in-progress include costs of conversion and
other costs incurred in bringing the inventories to their present
location and condition. Excise duty is included in the value of
finished goods inventory .Goods in transit are stated at actual cost
incurred upto the date of balance sheet.
Scrap is valued at net realisable value.
Carbon Credit and Renewable Energy Certificates ( REC ) are valued at
Cost or estimated net realisable value, whichever is lower.
E) Revenue Recognition
Sale of goods is recognised when the significant risks and rewards of
ownership of goods have passed on to the customers, which is generally
on despatch of goods. Gross Sales include excise duty but excludes
sales tax and are net of trade discounts.
F) Employees Retirement Benefits :
Defined Contribution plans: The Company makes specified monthly
contributions towards employee provident fund. Defined benefit plans:
The Company's gratuity and leave encashment are defined benefit plans.
The present value of the obligation under such defined benefit plans is
determined based on acturial valuation using the projected unit credit
method, which recognises each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
The obligation is measured at the present value of the estimated future
cash flows.
The discount rates used for determining the present value of the
obligation under defined benefit plans, are based on the market yields
on Government Securities as at the Balance Sheet date.
Actuarial gains and losses are recognised immediately in the Profit and
Loss Account.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account in the year in which
they relate.
G) Foreign Currency Transactions :
Transactions in foreign currency are accounted at exchange rates
prevailing at the time of the transaction. All exchange gains / losses
arising out of such transactions are taken to Profit and Loss Account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year.
H) Taxation :
Provision is made for income tax liability which may arise on the
results for the year at the current rate of tax in accordance with the
Income-tax Act, 1961.
The deferred tax for timing differences between the book profit and tax
profits for the year is accounted for using the tax rates enacted as of
the Balance Sheet date. Deferred tax assets arising from temporary
timing differences are recognised to the extent there is reasonable
certainty that the assets can be realised in future.
I) Segment Reporting
a) Identification of Segments
The Company's operating business are organised and managed separately
according to the nature of activity , with each segment representing a
strategic business unit that offers different activity.
b) Unallocated items
Corporate assets and liabilities, income and expenses which relate to
the Company as a whole and are not allocable to segments, have been
included under unallocated items.
J) Impairment of Assets :
At each Balance Sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds its recoverable amount, an impairment loss
is recognised in the Profit and Loss Account to the extent the carrying
amount exceeds recoverable amount. During the year there was no
impairment of assets.
K) Provisions and Contingent Liabilities
a) Provisions in respect of present obligation arising out of past
events are made in the accounts when reliable estimates can be made
about the amount of obligation.
b) Contingent Liabilities are disclosed when there is a possible
obligation that may, but probably will not, require an outflow of
resources.
L) Earnings per Share
Basic and diluted earning per share is computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
M) Warranty
The estimated liability for product warranties is recorded when
products are sold. These estimates are established using historical
information on the nature, frequency and average cost of warranty
claims and management estimates regarding possible future incidence
based on corrective actions on product failures.
N) Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that [i] the Company will comply with the
conditions attached to them, and [ii] the grant / subsidy will be
received.
When the grant or subsidy relates to revenue, it is recognized as
income 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 .Where the grant relates to an asset, it is
recognized as deferred income and is allocated to Statement of Profit
and Loss over the periods and in the proportions in which depreciation
on those assets is charged.
Mar 31, 2014
A) Basis of Preparation of Financial Statements :
(i) The financial statements are prepared under the Historical Cost
Convention, on the accrual basis of accounting and in accordance with
the provisions of the Companies Act, 1956 and comply with the
Accounting Standards notified by the Companies (Accounting Standards)
Rules, 2006 and the relevant provisions of Companies Act, 1956.
(ii) Estimates and Assumptions used in preparation of the Financial
Statements are based upon Management''s evaluations of the relevant
facts and circumstances as of the date of the financial statements,
which may differ from the actual results at a subsequent date.
B) Fixed Assets and Depreciation :
(i) Fixed Assets :
Fixed Assets are stated at cost (net of Cenvat and sales tax credit) of
acquisition or construction or at manufacturing cost in case of Company
manufactured assets, less accumulated depreciation (except on free hold
land). The cost includes freight, duties, taxes, and incidental
expenses related to acquisition, installation, erection and
commissioning.
(ii) Depreciation :
a) Depreciation is provided as per the Written Down Value (w.d.v.)
method at the rates specified in Schedule XIV to the Companies Act,
1956 except ERP Software would be charged off in three equal
installment from the date of capitalisation .
b) Leasehold land ''s value is written off on the basis of the tenure.
c) Depreciation is provided on pro-rata basis on additions/deductions
during the year.
C) Investments :
Long term Investments are stated at cost. Provision is made to
recognise any diminution in the value other than temporary, in the
carrying amount of any long term investments.
Current Investments are carried at lower of cost and market value
determined on an individual investment basis.
Investment in Immovable Property
Investment in Immovable Property that are not intended to be occupied
substantially for self use by, or in the operations of the company, has
been classified as investment property .Investment properties are
carried at cost less accumulated depreciation .
D) Inventories :
Inventories are valued at the lower of cost (Value of cost is computed
on a weighted average basis) and estimated net realisable value.
Finished goods and work-in-progress include costs of conversion and
other costs incurred in bringing the inventories to their present
location and condition. Excise duty is included in the value of
finished goods inventory .Goods in transit are stated at actual cost
incurred up to the date of balance sheet .
Scrap is valued at net realisable value.
Carbon Credit and Renewable Energy Certificate ( REC ) is valued at
Cost or estimated net realisable value whichever is lower.
E) Revenue Recognition
Sale of goods is recognised when the significant risks and rewards of
ownership of goods have passed on to the customers which is generally
on dispatch of goods. Gross Sales include excise duty but excludes
sales tax and are net of trade discounts.
F) Employees Retirement Benefits :
Defined Contribution plans: The company makes specified monthly
contributions towards employee provident fund. Defined benefit plans:
The company''s gratuity and leave encashment are defined benefit plans.
The present value of the obligation under such defined benefit plans is
determined based on actuarial valuation using the projected unit credit
method, which recognises each period of services as giving rise to
additional unit of employee benefit entitlement and measure each unit
separately to build up the final obligation.
The obligation is measured at the present value of the estimated future
cash flows.
The discount rates used for determining the present value of the
obligation under defined benefit plans, is based on the market yields
on Government securities as at the balance sheet date.
Actuarial gains and losses are recognised immediately in the profit and
loss account.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account in the year in which
they relate .
G) Foreign Currency Transactions :
Transactions in foreign currency are accounted at exchange rates
prevailing at the time of the transaction. All exchange gains / losses
arising out of such transactions are taken to profit and loss account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year .
H) Taxation :
Provision is made for income tax liability which may arise on the
results for the year at the current rate of tax in accordance with the
Income-tax Act, 1961.
The deferred tax for timing differences between the book profit and tax
profits for the year is accounted for using the tax rates enacted as of
the balance sheet date. Deferred tax assets arising from temporary
timing differences are recognised to the extent there is reasonable
certainty that the assets can be realised in future.
I) Segment Reporting
a) Identification of Segments
The Company''s operating business are organised and managed separately
according to the nature of activity , with each segment representing a
strategic business unit that offers different activity.
b) Allocation of common costs
Common allocable costs are allocated to each segment according to the
sales of each segment to the total sales of the Company.
c) Unallocated items
Corporate assets and liabilities, income and expenses which relate to
the Company as a whole and are not allocable to segments, have been
included under unallocated items.
J) Impairment of Assets :
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds its recoverable amount, an impairment loss
is recognised in the profit and loss account to the extent the carrying
amount exceeds recoverable amount. During the year there was no
impairment of assets.
K) Provisions and Contingent Liabilities
a) Provisions in respect of present obligation arising out of past
events are made in the accounts when reliable estimates can be made
about the amount of obligation.
b) Contingent Liabilities are disclosed when there is a possible
obligation that may, but probably will not, require an outflow of
resources.
L) Earnings per Share
Basic and diluted earning per share is computed by dividing the net
profit attributable to equity share-holders for the year, by the
weighted average number of equity shares outstanding during the year.
M) Warranty
The estimate liability for product warranties is recorded when products
are sold. These estimates are established using historical information
on the nature, frequency and average cost of warranty claims and
management estimates regarding possible future incidence based on
corrective actions on product failures.
N) Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that [i] the Company will comply with the
conditions attached to them, and [ii] the grant/subsidy will be
received.
When the grant or subsidy relates to revenue, it is recognized as
income 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 .Where the grant relates to an asset, it is
recognized as deferred income and is allocated to statement of profit
and loss over the periods and in the proportions in which depreciation
on those assets is charged.
Mar 31, 2013
A) Basis of Preparation of Financial Statements :
(i) The financial statements are prepared under the Historical Cost
Convention, on the accrual basis of accounting and in accordance with
the provisions of the Companies Act, 1956 and comply with the
Accounting Standards notified by the Companies (Accounting Standards)
Rules, 2006 and the relevant provisions of Companies Act, 1956.
(ii) Estimates and Assumptions used in preparation of the Financial
Statements are based upon Management''s evaluations of the relevant
facts and circumstances as of the date of the financial statements,
which may differ from the actual results at a subsequent date.
B) Fixed Assets and Depreciation :
(i) Fixed Assets :
Fixed Assets are stated at cost (net of Cenvat and sales tax credit )
of acquisition or construction or at manufacturing cost in case of
Company manufactured assets, less accumulated depreciation (except on
free hold land). The cost includes freight, duties, taxes, and
incidental expenses related to acquisition, installation, erection and
commissioning.
(ii) Depreciation :
a) Depreciation is provided as per the Written Down Value (w.d.v.)
method at the rates specified in Schedule XIV to the Companies Act,
1956.
b) Leasehold land ''s value is written off on the basis of the tenure.
c) Depreciation is provided on pro-rata basis on additions/deductions
during the year.
(iii) Liquidated Damage
Liquidated Damage , if any,are accounted for as and when recovery is
effected and matter is considered as settled by management and the same
is adjusted in the cost of relevant assets.
C) Investments :
Long term Investments are stated at cost. Provision is made to
recognise any diminution in the value, other than temporary, in the
carrying amount of any long term investments.
Current Investments are carried at lower of cost and fair value
determined on an individual investment basis.
D) Inventories :
Inventories are valued at the lower of cost (Value of cost is computed
on a weighted average basis) and estimated net realisable value.
Finished goods and work-in-progress include costs of conversion and
other costs incurred in bringing the inventories to their present
location and condition. Excise duty is included in the value of
finished goods inventory.
Carbon Credit is valued at Cost or estimated net realisable value
whichever is lower
E) Revenue Recognition
Sale of goods is recognised when the significant risks and rewards of
ownership of goods have passed on to the customers which is generally
on despatch of goods. Gross Sales include excise duty but excludes
sales tax and are net of discounts.
F) Employees Retirement Benefits :
Defined Contribution plans: The company makes specified monthly
contributions towards employee provident fund. Defined benefit plans:
The company''s gratuity and leave wages are defined benefit plans. The
present value of the obligation under such defined benefit plans is
determined based on acturial valuation using the projected unit credit
method, which recognises each period of services as giving rise to
additional unit of employee benefit entitlement and measure each unit
separately to build up the final obligation.
The obligation is measured at the present value of the estimated future
cash flows.
The discount rates used for determining the present value of the
obligation under defined benefit plans, is based on the market yields
on Government securities as at the balance sheet date.
Actuarial gains and losses are recognised immediately in the profit and
loss account.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account in the year in which
the related service is rendered.
G) Foreign Currency Transactions :
Transactions in foreign currency are accounted at exchange rates
prevailing at the time of the transaction. All exchange gains / losses
arising out of such transactions are taken to profit and loss account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year .
H) Taxation :
Provision is made for income tax liability which may arise on the
results for the year at the current rate of tax in accordance with the
Income-tax Act, 1961.
The deferred tax for timing differences between the book profit and tax
profits for the year is accounted for using the tax rates enacted as of
the balance sheet date. Deferred tax assets arising from temporary
timing differences are recognised to the extent there is reasonable
certainty that the assets can be realised in future.
I) Segment Reporting:
a) Identification of Segments
The Company''s operating business are organised and managed separately
according to the nature of activity , with each segment representing a
strategic business unit that offers different activity.
b) Allocation of common costs
Common allocable costs are allocated to each segment according to the
sales of each segment to the total sales of the Company.
c) Unallocated items
Corporate assets and liabilities, income and expenses which relate to
the Company as a whole and are not allocable to segments, have been
included under unallocated items.
J) Impairment of Assets :
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds its recoverable amount, an impairment loss
is recognised in the profit and loss account to the extent the carrying
amount exceeds recoverable amount. During the year there was no
impairment of assets.
K) Provisions and Contingent Liabilities
a) Provisions in respect of present obligation arising out of past
events are made in the accounts when reliable estimates can be made
about the amount of obligation.
b) Contingent Liabilities are disclosed when there is a possible
obligation that may, but probably will not, require an outflow of
resources.
L) Earnings per Share
Basic and diluted earning per share is computed by dividing the net
profit attributable to equity share holders for the year, by the
weighted average number of equity shares outstanding during the year.
M) Warranty
The estimate liability for product warranties is recorded when products
are sold. These estimates are established using historical information
on the nature, frequency and average cost of warranty claims and
mangement estimates regarding posible future incidence based on
corrective actions on product failures.
Mar 31, 2012
A) Basis of Preparation of Financial Statements
(i) The financial statements are prepared under the Historical Cost
Convention, on the accrual basis of accounting and in accordance with
the provisions of the Companies Act, 1956 and comply with the
Accounting Standards notified by the Companies (Accounting Standards)
Rules, 2006 and the relevant provisions of Companies Act, 1956.
(ii) Estimates and Assumptions used in preparation of the Financial
Statements are based upon Management's evaluations of the relevant
facts and circumstances as of the date of the financial
statements ,which may differ from the actual results at a subsequent
date.
B) Fixed Assets and Depreciation :
(i) Fixed Assets :
Fixed Assets are stated at cost (net of Cenvat and sales tax credit )
of acquisition or construction or at manufacturing cost in case of
Company manufactured assets, less accumulated depreciation (except on
free hold land). The cost includes freight, duties, taxes, and
incidental expenses related to acquisition, installation, erection and
commissioning.
(ii) Depreciation :
a) Depreciation is provided as per the Written Down Value (W.D.V.)
method at the rates specified in Schedule XIV to the Companies Act,
1956.
b) Leasehold land 's value is written off on the basis of the tenure.
c) Depreciation is provided on pro-rata basis on additions/deductions
during the year.
C) Investments :
Long term Investments are stated at cost. Provision is made to
recognise any diminution in the value, other than temporary, in the
carrying amount of any long term investments.
D) Inventories :
Inventories are valued at the lower of cost( Value of cost is computed
on a weighted average basis) and estimated net realisable value.
Finished goods and work-in-progress include costs of conversion and
other costs incurred in bringing the inventories to their present
location and condition. Excise duty is included in the value of
finished goods inventory
E) Revenue Recognition
Sale of goods is recognised when the significant risks and rewards of
ownership of goods have passed to the customers which is generally on
despatch of goods. Gross Sales include excise duty but excludes sales
tax and are net of discounts.
F) Employees Retirement Benefits :
Defined Contribution plans: The company makes specified monthly
contributions towards employee provident fund.
Defined benefit plans: The company's gratuity and leave wages are
defined benefit plans. The present value of the obligation under such
defined benefit plans is determined based on acturial valuation using
the projected unit credit method, which recognises each period of
services as giving rise to additional unit of employee benefit
entitlement and measure each unit separately to build up the final
obligation.
The obligation is measured at the present value of the estimated future
cash flows. The discount rates used for determining the present value
of the obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date. Actuarial
gains and losses are recognised immediately in the profit and loss
account.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account in the year in which
the related service is rendered.
G) Foreign Currency Transactions :
Transactions in foreign currency are accounted at exchange rates
prevailing at the time of the transaction. All exchange gains/losses
arising out of such transactions are taken to profit and loss account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year .
H) Taxation :
Provision is made for income tax liability which may arise on the
results for the year at the current rate of tax in accordance with the
Income-tax Act, 1961.
The deferred tax for timing differences between the book profit and tax
profits for the year is accounted for using the tax rates prevailing as
of the balance sheet date. Deferred tax assets arising from temporary
timing differences are recognised to the extent there is reasonable
certainty that the assets can be realised in future.
I) Segment Reporting
a) Identification of Segments
The Company's operating business are organised and managed separately
according to the nature of activity , with each segment representing a
strategic business unit that offers different activity.
b) Allocation of common costs
Common allocable costs are allocated to each segment according to the
sales of each segment to the total sales of the Company.
c) Unallocated items
Corporate assets and liabilites, income and expenses which relate to
the Company as a whole and are not allocable to segments, have been
included under unallocated items.
J) Impairment of Assets :
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds its recoverable amount, an impairment loss
is recognised in the profit and loss account to the extent the carrying
amount exceeds recoverable amount.During the year there was no
impairment of assets.
K) Provisions and Contingent Liabilities
a) Provisions in respect of present obligation arising out of past
events are made in the accounts when reliable estimates can be made
about the amount of obligation.
b) Contingent Liabilties are disclosed when there is a possible
obligation that may, but probably will not, require an outflow of
resources.
L) Earnings per Share
Basic and diluted earning per share is computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
M) Warranty
The estimate liability for product warranties is recorded when products
are sold. These estimates are established using historical information
on the nature, frequency and average cost of warranty claims and
management estimates regarding possible future incidence based on
corrective actions on product failures.
Mar 31, 2011
A) Basis of Preparation of Financial Statements :-
(i) The financial statements are prepared under the Historical Cost
Convention, on the accrual basis of accounting and in accordance with
the provisions of the Companies Act, 1956 and comply with the
Accounting Standards notified by the Companies (Accounting Standards)
Rules, 2006 and the relevant provisions of Companies Act, 1956.
(ii) Estimates and Assumptions used in preparation of the Financial
Statements are based upon Managements evaluations of the relevant
facts and circumstances as of the date of the financial
statements,which may differ from the actual results at a subsequent
date.
B) Fixed Assets and Depreciation :
(i) Fixed Assets:
Fixed Assets are stated at cost (net of Cenvat and sales tax credit )
of acquisition or construction or at manufacturing cost in case of
Company manufactured assets, less accumulated depreciation (except on
free hold land). The cost includes freight,duties,taxes, and incidental
expenses related to acquisition,installation,erection and
commissioning.
(ii) Depreciation:
a) Depreciation is provided as per the Written Down Value (w.d.v.)
method at the rates specified in Schedule XIV to the Companies Act,
1956.
b) Leasehold land s value is written off on the basis of the tenure.
c) Depreciation is provided on pro-rata basis on additions/deductions
during the year.
C) Investments:
Long term Investments are stated at cost. Provision is made to
recognise any diminution in the value,other than temporary, in the
carrying amount of any long term investments.
D) Inventories:
Inventories are valued at the lower of cost( Value of cost is computed
on a weighted average basis) and estimated net realisable value.
Finished goods and work-in-progress include costs of conversion and
other costs incurred in bringing the inventories to their present
location and condition. Excise duty is included in the value of
finished goods inventory.
E) Revenue Recognition:
Sale of goods is recognised when the significant risks and rewards of
ownership of goods have passed to the customers which is generally on
despatch of goods. Gross Sales include excise duty but excludes sales
tax and are net of discounts.
F) Employee Retirement Benefits:
Defined Contribution Plans: The Company makes specified monthly
contributions towards employee provident fund.
Defined Benefit Plans: The Companys gratuity and leave wages are
defined benefit plans. The present value of the obligation under such
defined benefit plans is determined based on acturial valuation using
the projected unit credit method, which recognises each period of
services as giving rise to additional unit of employee benefit
entitlement and measure each unit separately to build up the final
obligation.
The obligation is measured at the present value of the estimated future
cash flows. The discount rates used for determining the present value
of the obligation under defined benefit plans, is based on the market
yields on Government securities as at the balance sheet date. Actuarial
gains and losses are recognised immediately in the profit and loss
account.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account in the year in which
the related service is rendered.
G) Foreign Currency Transactions:
Transactions in foreign currency are accounted at exchange rates
prevailing at the time of the transaction. All exchange gains/losses
arising out of such transactions are taken to profit and loss account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year .
H) Taxation:
Provision is made for income tax liability which may arise on the
results for the year at the current rate of tax in accordance with the
Income-tax Act, 1961.
The Deferred Tax for timing differences between the book profit and tax
profits for the year is accounted for using the tax rates prevailing as
of the balance sheet date. Deferred Tax Assets arising from temporary
timing differences are recognised to the extent there is reasonable
certainty that the assets can be realised in future.
I) Impairment of Assets:
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds its recoverable amount, an impairment loss
is recognised in the profit and loss account to the extent the carrying
amount exceeds recoverable amount.During the year there was no
impairment of assets.
J) Provisions and Contingent Liabilities:
a) Provisions in respect of present obligation arising out of past
events are made in the accounts when reliable estimates can be made
about the amount of obligation.
b) Contingent Liabilties are disclosed when there is a possible
obligation that may, but probably will not, require an outflow of
resources.
K) Earnings per Share:
Basic and diluted earnings per share is computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
L) Warranty:
The estimate liability for product warranties is recorded when products
are sold.These estimates are established using historical information
on the nature,frequency and average cost of warranty claims and
management estimates regarding posible future incidence based on
corrective actions on product failures.
Mar 31, 2010
A)Basis of Preparation of Financial Statements :-
(i)The financial statements are prepared under the Historical Cost
Convention,on the accrual basis of accounting and in accordance with
the provisions of the Companies Act,1956 and comply with the Accounting
Standards notified by the Companies (Accounting Standards)Rules,2006
and the relevant provisions of Companies Act, 1956.
(ii)Estimates and Assumptions used in preparation of the Financial
Statements are based upon Managements evaluations of the relevant
facts and circumstances as of the date of the financial
statements,which may differ from the actual results at a subsequent
date.
B)Fixed Assets and Depreciation:
(i)Fixed Assets:
Fixed Assets are stated at cost (net of Cenvat and sales tax credit)of
acquisition or construction or at manufacturing cost in case of Company
manufactured assets,less accumulated depreciation (except on free hold
land).The cost includes freight,duties,taxes,and incidental expenses
related to acquisition,installation,erection and commissioning.
(ii)Depreciation:
a)Depreciation is provided as per the Written Down Value (w.d.v.)method
at the rates specified in Schedule XIV to the Companies Act,1956.
b)Leasehold lands value is written off on the basis of the tenure.
c)Depreciation is provided on pro-rata basis on additions/deductions
during the year.
C)Investments:
Long term Investments are stated at cost.Provision is made to recognise
any diminution in the value,other than temporary,in the carrying amount
of any long term investments.
D)Inventories:
Inventories are valued at the lower of cost(Value of cost is computed
on a weighted average basis)and estimated net realisable value.Finished
goods and work-in-progress include costs of conversion and other costs
incurred in bringing the inventories to their present location and
condition.Excise duty is included in the value of finished goods
inventory.
E)Revenue Recognition:
Sale of goods is recognised when the significant risks and rewards of
ownership of goods have passed to the customers which is generally on
despatch of goods.Gross Sales include excise duty but excludes sales
tax and are net of discounts.
F)Employee Retirement Benefits:
Defined Contribution Plans:The Company makes specified monthly
contributions towards employee provident fund.
Defined Benefit Plans:The Companys gratuity and leave wages are
defined benefit plans.The present value of the obligation under such
defined benefit plans is determined based on acturial valuation using
the projected unit credit method,which recognises each period of
services as giving rise to additional unit of employee benefit
entitlement and measure each unit separately to build up the final
obligation. The obligation is measured at the present value of the
estimated future cash flows.The discount rates used for determining the
present value of the obligation under defined benefit plans,is based on
the market yields on Government securities as at the balance sheet
date.Actuarial gains and losses are recognised immediately in theprofit
and loss account.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account in the year in which
the related service is rendered.
G)Foreign Currency Transactions:
Transactions in foreign currency are accounted at exchange rates
prevailing at the time of the transaction.All exchange gains/losses
arising out of such transactions are taken to profit and loss
account.Foreign currency monetary assets and liabilities are translated
at the exchange rates prevailing on the last working day of the
accounting year.
H)Taxation:
Provision is made for income tax liability which may arise on the
results for the year at the current rate of tax in accordance with the
Income-tax Act,1961. The Deferred Tax for timing differences between
the book profit and tax profits for the year is accounted for using the
tax rates prevailing as of the balance sheet date.Deferred Tax Assets
arising from temporary timing differences are recognised to the extent
there is reasonable certainty that the assets can be realised in
future.
I)Impairment of Assets:
At each balance sheet date,the Company assesses whether there is any
indication that an asset may be impaired.If any such indication
exists,the Company estimates the recoverable amount.If the carrying
amount of the assets exceeds its recoverable amount,an impairment loss
is recognised in the profit and loss account to the extent the carrying
amount exceeds recoverable amount.During the yearthere was no
impairment of assets.
J)Provisions and Contingent Liabilities:
a)Provisions in respect of present obligation arising out of past
events are made in the accounts when reliable estimates can be made
about the amount of obligation.
b)Contingent Liabilties are disclosed when there is a possible
obligation that may,but probably will not,require an outflow of
resources.
K)Earnings per Share:
Basic and diluted earnings per share is computed by dividing the net
profit attributable to equity shareholders for the year,by the weighted
average number of equity shares outstanding during the year.
L)Warranty:
The estimate liability for product warranties is recorded when products
are sold.These estimates are established using historical information
on the nature.frequency and average cost of warranty claims and
mangement estimates regarding posible future incidence based on
corrective actions on product failures.
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ZF Steering Gear (India) Ltd. Company Details
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Company History
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ZF Steering Gear (India) Ltd. Key Financial Ratios
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ZF Steering Gear (India) Ltd. Results
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ZF Steering Gear (India) Ltd. Financial Data
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ZF Steering Gear (India) Ltd. Reports
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- Auditors Report
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ZF Steering Gear (India) Ltd. Corporate Announcements
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