Mar 31, 2015
(A) USE OF ESTIMATES
The preparation of financial statement in conformity with generally
accepted accounting principles require estimate and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent 1 liabilities on the date of financial
statement and the reported amounts of revenues and expenses during the
reporting period, actual results could differ from these estimates and
difference between actual results and estimate are recognized in the
periods in which the results are known/materialize.
(B) CASH FLOW STATEMENT
The cash flow statement is prepared using the " Indirect method set
out in Accounting Standard 3" Cash Flow statement which presents cash
flow from operating, investing and financing activities of the
company. Cash and cash equivalent presented in the cash flow statement
consists of cash in hand and unencumbered lightly liquid Bank Balance.
(C) FIXED ASSETS
(a) TANGIBLE FIXED ASSETS
Fixed assets are initially recorded at cost. Cost comprises the
Purchase Price and any Direct attributable cost of bringing the assets
to working condition for its intended use. The cost of the Tangible
assets acquired in Amalgamation in the nature of Purchase is their
Fair Value as at the date of Amalgamation. Following Initial
Recognition. Tangible assets are carried at cost less accumulated
depreciation and Impairment Loss (If any) Gain or loss arising from De
recognition of Tangible assets are measured as the difference between
the net disposal proceeds and the carrying amount of the assets and
are recognized in the statement of profit and loss when the assets is
derecognized.
(b) Intangible Assests
Intangible Assets acquired separately are measured on Initial
recognition at Cost. The Company Uses presumption that the useful life
of an Intangible Assets will not exceed ten years from the date when
the assets is available for use.
(D) DEPRECIATION
Depreciation on Fixed assets is provided to the extent of depreciable
amount as per written down value (WDV) method. Depreciation is
provided based on useful life of the assets as prescribed in schedule
II of the Companies Act 2013. The written down value of Fixed Assets
whose lives have expired as at 1st April 2014 have been adjusted From
the opening balance of Profit & Loss Account Intangible assets are
amortised on written down basis on the estimated useful economic life
.
(E) REVENUE RECOGNITION
In appropriate circumstances revenue income is recognized when no
significant uncertainty as to the determination or realization exist.
(a) Sale of Goods - Revenue is recognized when all the significant
risk and reward of ownership of the goods has passed to the buyer
usually on delivery of goods. Excise duty and vat deducted from the
turnover is the amount that is included in the amount of turnover and
not the entire amount of liability arises during the year.
(b) Interest - Revenue is recognized on a time proportion basis taking
into account the amount outstanding and rate applicable.
(F) INVENTORIES
Inventories consisting of Raw Material and Packing Material have been
valued at lower of cost or net realizable value on FIFO cost basis.
Finished goods have been valued at lower of cost or net realisable
value. Costs for Finished Goods includes direct material, labour,
excise duty and appropriate production overheads.
(G) INVESTMENT
Investment in Equity Shares is stated at cost.
(H) BORROWING COST
Borrowing cost is treated as revenue expenditure and is charged to the
Profit and Loss Account for the year. There is no Specific borrowing
cost regarding acquisition of capital assets.
(I) TAXATION
1) The Provision for wealth tax and current tax has been provided in
accordance with provision of wealth tax Act 1956 and the Income Tax
Act, 1961 respectively.
2) Deferred tax assets and liabilities are recognized on a prudent
basis for future tax consequences of timing differences arising
between the carrying value of assets and liabilities and their
respective tax basis, and carried forward losses. It is measured using
tax rates and tax laws that have been enacted or substantially enacted
at the balance sheet date. The impact of changes in deferred tax
assets and liabilities is recognized to the profit and loss account.
(J) EARNING PER SHARE
The company reports basic and diluted earning per shares are computed
in accordance with Accounting Standard-20 -Earning per share. Basic
EPS is calculated by dividing the Net Profit after tax for the year
attributable to equity share holders by the weighted Average number of
Equity Shares outstanding during the year.
(K) EMPLOYEE BENEFIT
Expenses & Liabilities in respect of employees benefit are recorded in
accordance with Revised Accounting Standard 15- Employee Benefits
(Revised 2005)
1) Short Term Employee Benefit
All Employee benefit payable wholly within twelve month of rendering
the service are classified as short term employee benefit and they are
recognized in the period in which employee rendered the related
service.
2) Post Employee benefit
i) Defined Contribution Plan
Defined contribution Plan are government administered Provident Fund,
Employee State Insurance Scheme of all employee, company contribution
to defined contribution plan are recognized in the profit & loss
account in the financial year in which the employee rendered the
related services.
ii) Defined Benefit Gratuity Plan
Gratuity is a defined benefit plan, the liabilities recognized in the
balance sheet in respect of Gratuity is the present value of the
defined benefit obligation at the balance sheet date less the fair
market value of plan assets, together with adjustment for unrecognized
actuarial gains or losses and Past service cost, the defined benefit
obligation is calculated at or near the balance sheet date by are in
dependent actuary using the projected unit credit method. Actuarial
gain and Losses arising from past experience and changes in actuarial
assumption are charged to the prior period item, in the year in which
such gains or losses are determined.
(L) PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS
The Provision is recognized when the company has a present obligation
as a result of past events and it is probable that an outflow of
resources would be required to settle the obligation, in respect of
which a reliable estimate can be made. A contingent liability is a
possible obligation That arise from past events whose existence will
be confirmed by the occurrence of one or non occurrence of one or more
uncertain future event beyond the control of the company or a present
obligation that is not recognized because it is not probable that an
outflow of resources will be required to settle the obligation . A
contingent liability arises in extremely rear cases where there is a
liability that cannot be recognized because it cannot be measured
reliably. The company does not recognized a contingent liability but
discloses its event in financial statement.
(M) CENVAT BENEFIT
CENVAT Benefit is accounted on accrual basis on purchase of Raw
material, and Packing Material as per amended rules and regulation.
(N) PRIOR PERIOD ADJUSTMENT & EXTRA ORDINARY ITEM
Income and expenditure pertaining to prior period which were omitted
to be recorded in last year due to error or omission in books are duly
reflected under head of prior period items in the statement of Profit
& loss of current year.
(O) EXCISE DUTY
1. Excise Duty on manufactured excisable goods has been accounted on
the basis of both payment made in respect of goods cleared and
provision has been made for goods lying in godown as per Guidance
notes on Excise Duty.
2. Excise duty on sales has been reduced from sales in statement of
profit & loss and provision of excise duty is made on closing stock.
(P) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE.
Accounting for contingencies (gains and losses) arising out of
contractual obligations, are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board,
where material.
(Q) IMPAIRMENT OF ASSETS
Fixed asset are reviewed for impairment whenever events or changes in
circumstances indicates that the carrying amount of assets may not be
recoverable. If such assets are considered to be impaired, the
impairment is recognized by debiting the Profit & Loss Account and is
measured as the amount by which the carrying cost of assets exceeds
the fair vale of assets. The impairment loss recognized in prior
accounting periods is reversed, if there has been a change in the
estimate of recoverable amount. By virtue of this Company has carried
out comprehensive exercise, to assess the impairment loss of assets
based on such exercise.
(R) SEGMENT REPORTING
Primary Segment identified based on the nature of product and
secondary segment is identified based on geographical location.
(S) OPERATING LEASE:
Assets taken on lease, under which the lessor effectively retains all
the risks and rewards of ownership, are classified as operating lease
.Operating lease payment are recognized as expenses in the profit and
loss accounts on a straight line basis over the lease term.
State capital subsidy is not specifically related to any fixed assest
hence credited to capital subsidy account under the head capital
reserve.
Mar 31, 2014
(a) BASIS OF ACCOUNTING
The financial statements have been prepared and presented under the
historical cost convention on the accrual Basis of Accounting and in
accordance with the Provision of the Companies Act 1956 and also
compliance of 133 section of companies act 2013 that are applicable
from 13/09/2013 and Accounting Principles generally accepted in India
and comply with applicable Accounting principles in India, the
mandatory Accounting Standards issued by the Institute of Chartered
Accountant of India and provisions of the Companies Act, 1956 also
compliance of 133 section of companies act 2013 that are applicable
from13/09/2013.
(b) USE OF ESTIMATES
The preparation of financial statement in conformity with generally
accepted accounting principles require estimate and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the date of financial statement
and the reported amounts of revenues and expenses during the reporting
period, actual results could differ from these estimates and difference
between actual results and estimate are recognized in the periods in
which the results are known/ materialize.
(c) CASH FLOW STATEMENT
The cash flow statement is prepared using the " Indirect method set out
in Accounting Standard 3" Cash Flow statement which presents cash flow
from operating, investing and financing activities of the company. Cash
and cash equivalent presented in the cash flow statement consists of
cash in hand and unencumbered lightly liquid Bank Balance.
(d) CURRENT AND NON CURRENT CLASSIFICATION
All Assets and Liabilities are classified into Current and Noncurrent.
ASSETS: - As assets is classified as current when it satisfies any of
the following criteria:
(i) It is expected to be realized in or intended for sale or
consumption in the company normal operating cycle.
(ii) It is held primarily for the purpose of being traded.
(iii) It is expected to be realized within 12 months of the reporting
date or
(iv) It is Cash or Cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Current assets include the current position of the non current
financial assets. All other Assets are classified as Non current.
LIABILITY:- A Liability is classified as current when it satisfies any
of the following criteria:
(i) It is expected to be settled in the companies normal operating
cycle, or
(ii) It is held primarily for the purpose of being traded, or
(iii) It is due to be settled within 12 months after the reporting
date, or
(iv) The company does not have an unconditional right to date
settlement of the liability for at least 12 months after the reporting
date. Term of a liability that could at the option of the counter party
result in its settlement by the issue of equity instrument do not
affected its classification. Current liability includes current
position of the non current financial liabilities all other liabilities
are classified as Noncurrent.
(e) Sales
Sales are inclusive of freight and octroi claimed in the sales
invoices, but net of excise duty and sales return.
(f) State Subsidy
State capital investment subsidy is not specifically related to any
Fixed Assets and has been credited to Capital Subsidy Account under the
head of Capital Reserve.
(g) Fixed Assets
Fixed assets are carried at cost of acquisition or construction (net of
CENVAT where applicable). They are carried at historical cost less
accumulated depreciation.
(h) Depreciation
Depreciation is charged over the estimated useful life of fixed assets
on a Written down Value basis except on trademark which is depreciated
on the basis of SLM having life of 5 years. The rates of depreciation
for fixed assets, which are not lower than the rates prescribed in
Schedule XIV to the Companies Act, 1956.
(i) Stores and Spares including Coal, Chemical Stores, Spares & Coal
Stores, Spares & Coal, Chemical are charged to the Profit and Loss
Account as and when these are incurred.
(j) Revenue Recognition
In appropriate circumstances revenue income is recognized when no
significant uncertainty as to the determination or realization exist.
(a) Sale of Goods- Revenue is recognized when all the significant risk
and reward of ownership of the goods has passed to the buyer usually on
delivery of goods. Excise duty and vat deducted from the turnover is
the amount that is included in the amount of turnover and not the
entire amount of liability arises during the year.
(b) Interest- Revenue is recognized on a time proportion basis taking
into account the amount outstanding and rate applicable.
(k) Inventories
Inventories consisting of Raw Material and Packing Material have been
valued at lower of cost or net realizable value on FIFO cost basis.
Finished goods have been valued at lower of cost or net realisable
value. Costs for Finished Goods includes direct material, labour,
excise duty and appropriate production overheads.
(l) Investment
Investment in Equity Shares is stated at cost.
(m) Borrowing Cost
Borrowing cost is treated as revenue expenditure and is charged to the
Profit and Loss Account for the year. There is no borrowing cost
regarding acquisition of capital assets.
(n) Taxation
1) The Provision for wealth tax and current tax has been provided in
accordance with provision of wealth tax Act 1956 and the Income Tax
Act, 1961 respectively.
2) Deferred tax assets and liabilities are recognized on a prudent
basis for future tax consequences of timing differences arising between
the carrying value of assets and liabilities and their respective tax
basis, and carried forward losses. It is measured using tax rates and
tax laws that have been enacted or substantially enacted at the balance
sheet date. The impact of changes in deferred tax assets and
liabilities is recognized to the profit and loss account.
(o) Earning per share
The company reports basic and diluted earning per shares are computed
in accordance with Accounting Standard-20 -Earning per share. Basic EPS
is calculated by dividing the Net Profit after tax for the year
attributable to equity share holders by the weighted Average number of
Equity Shares outstanding during the year.
(p) Employee Benefit
Expenses & Liabilities in respect of employees benefit are recorded in
accordance with Revised Accounting Standard 15- Employee Benefits
(Revised 2005)
1) Short Term Employee Benefit
All Employee benefit payable wholly within twelve month of rendering
the service are classified as short term employee benefit and they are
recognized in the period in which employee rendered the related
service.
2) Post Employee benefit
i) Defined Contribution Plan
Defined contribution Plan are government administered Provident Fund,
Employee State Insurance Scheme of all employee, company contribution
to defined contribution plan are recognized in the profit & loss
account in the financial year in which the employee rendered the
related services.
ii) Defined Benefit Gratuity Plan
Gratuity is a defined benefit plan, the liabilities recognized in the
balance sheet in respect of Gratuity is the present value of the
defined benefit obligation at the balance sheet date less the fair
market value of plan assets, together with adjustment for unrecognized
actuarial gains or losses and Past service cost, the defined benefit
obligation is calculated at or near the balance sheet date by are in
dependent actuary using the projected unit credit method. Actuarial
gain and Losses arising from past experience and changes in actuarial
assumption are charged to the prior period item, in the year in which
such gains or losses are determined.
(q) Provision, Contingent Liabilities & Contingent Assets
The Provision is recognized when the company has a present obligation
as a result of past events and it is probable that an outflow of
resources would be required to settle the obligation, in respect of
which
a reliable estimate can be made. A disclosure for a Contingent
Liability is made when there is a Possible Obligation or a Present
obligation that may not require an outflow of resources.
(r) Cenvat Benefit
CENVAT Benefit is accounted on accrual basis on purchase of Raw
material, and Packing Material as per amended rules and regulation.
(s) Prior Period Adjustment & Extra Ordinary Item
Income and expenditure pertaining to prior period which were omitted to
be recorded in last year due to error or omission in books are duly
reflected under head of prior period items in the statement of Profit &
loss of current year.
(t) Excise Duty
1. Excise Duty on manufactured excisable goods has been accounted on
the basis of both payment made in respect of goods cleared and
provision has been made for goods lying in godown as per Guidance notes
on Excise Duty.
2. Excise duty on sales has been reduced from sales in statement of
profit & loss and provision of excise duty is made on closing stock.
(u) Contingencies and Events occurring after the Balance Sheet date.
Accounting for contingencies (gains and losses) arising out of
contractual obligations, are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board,
where material.
(v) Impairment of Assets
Fixed asset are reviewed for impairment whenever events or changes in
circumstances indicates that the carrying amount of assets may not be
recoverable. If such assets are considered to be impaired, the
impairment is recognized by debiting the Profit & Loss Account and is
measured as the amount by which the carrying cost of assets exceeds the
fair vale of assets. The impairment loss recognized in prior accounting
periods is reversed, if there has been a change in the estimate of
recoverable amount. By virtue of this Company has carried out
comprehensive exercise, to assess the impairment loss of assets based
on such exercise.
(w) SEGMENT REPORTING
Primary Segment identified based on the nature of product and secondary
segment is identified based on geographical location.
(x) OPERATING LEASE:
Assets taken on lease, under which the lesser effectively retains all
the risks and rewards of ownership, are classified as operating lease
.Operating lease payment are recognized as expenses in the profit
and loss accounts on a straight line basis over the lease term.
Mar 31, 2013
(a) BASIS OF ACCOUNTING
The financial statements have been prepared and presented under the
historical cost convention on the accrual Basis of Accounting and in
accordance with the Provision of the Companies Act 1956 and Accounting
Principle generally accepted in India and comply with applicable
Accounting principles in India, the mandatory Accounting Standards
issued by the Institute of Chartered Accountant of India and provisions
of the Companies Act, 1956.
(b) USE OF EXTIMATES
The preparation of financial statement in conformity with generally
accepted accounting principles require estimate and assumptions to be
made that effect the reported amounts of meets and liabilities and
disclosure of contingent liabilities on the date of financial statement
and the reported amounts of revenues and expenses during the reporting
period actual results could differ from these estimates and difference
between actual results and estimate are recognized in the periods in
which the results are known/ materialize.
(c) CASH FLOW STATEMENT
The cash flow statement is prepared using the " Indirect method setout
in accounting standard 3" Cash Flow statement and presents cash flow
operating, investing and financing activities of the Company cash and
cash equivalent presented in the cash flow statement consists of cash
on hand and unencumbered lightly liquid Bank Balance.
(d ) CURRENT AND NON CURRENT CLASSIFICATION
All Assets and Liabilities are classified into Current and Noncurrent.
ASSETS: - As assets is classified as current when it satisfies any of
the following criteria:
(i) It is expected to be realized in or intended for sale or
consumption in the company normal operating cycle. (ii) It is held
primarily for the purpose of being traded. (iii) It is expected to be
realized within 12 months of the reporting date or (iv) It is Cash or
Cash equivalent unless it is restricted from being exchanged or used to
settle a liability for at least 12 months after the reporting date.
Current assets include the current position of the non current
financial assets. All other Assets are classified as Non current.
LIABILITY:- A Liability is classified as current when it satisfies any
of the following criteria:
(i) It is expected to be settled in the companies normal operating
cycle, or
(ii) It is held primarily for the purpose of being traded, or
(iii) It is due to be settled within 12 months after the reporting
date, or
(iv) The company does not have an unconditional right to date
settlement of the liability for at least 12 months after the reporting
date. Term of a liability that could at the option of the counter party
result in its settlement by the issue of equity instrument do not
affected its classification. Current liability includes current
position of the non current financial liabilities all other liabilities
are classified as Noncurrent.
(e) Sales
Sales are inclusive of freight and octroi claimed in the sales
invoices, but net of excise duty and sales return.
(f) State Subsidy
State capital investment subsidy is not specifically related to any
Fixed Assets and has been credited to Capital Subsidy Account under the
head of Capital Reserve.
(g) Fixed Assets
Fixed assets are carried at cost of acquisition or construction (net of
CENVAT where applicable). They are carried at historical cost less
accumulated depreciation.
(h) Depreciation
Depreciation is charged over the estimated useful life of fixed assets
on a Written down Value basis except on trademark which is depreciated
on the basis of SLM having life of 5 years. The rates of depreciation
for fixed assets, which are not lower than the rates prescribed in
Schedule XIV to the Companies Act, 1956.
(i) Stores and Spares including Coal, Chemical Stores, Spares & Coal
Chemical are charged to the Profit and Loss Account as and when these
are incurred.
(j) Revenue Recognition
In appropriate circumstances revenue income is recognized when no
significant uncertainty as to the determination or realization exist.
(k) Inventories
Inventories consisting of Raw Material and Packing Material have been
valued at lower of cost or net realizable value on FIFO cost basis.
Finished goods have been valued at lower of cost or net realisable
value. Costs for Finished Goods includes direct material, labour,
excise duty and appropriate production overheads.
(l) Investment
Investment in Equity Shares is stated at cost. Company has made the
investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl
Securities Ltd., a Company under the same management. But no provision
of Rs.712320.00 (P.Y. Rs. 1838464.00) has been made for diminution in
value of Securities [(Market Value Rs. 60,71,680.00) (P.Y. Rs. 49, 45,
536.00)] due to temporary in nature in the opinion of the management.
(m) Foreign Currency Transactions
There is no foreign currency transaction entered into by the company in
during the year.
(n) Borrowing Cost
Borrowing cost is treated as revenue expenditure and is charged to the
Profit and Loss Account for the year. There is no borrowing cost
regarding acquisition of capital assets.
(o) Taxation
1) The Provision for wealth tax and current tax has been provided in
accordance with provision of wealth tax Act 1956 and the Income Tax
Act, 1961.
2) Deferred tax assets and liabilities are recognized on a prudent
basis for future tax consequences of timing differences arising between
the carrying value of assets and liabilities and their respective tax
basis, and carried forward losses. It is measured using tax rates and
tax laws that have been enacted or substantially enacted at the balance
sheet date. The impact of changes in deferred tax assets and
liabilities is recognized to the profit and loss account.
(p) Earning per share
The company reports basic and diluted earning per shares are computed
in accordance with Accounting Standard-20 -Earning per share. Basic EPS
is calculated by dividing the Net Profit after tax for the year
attributable to equity share holders by the weighted Average number of
Equity Shares outstanding during the year.
(q) Employee Benefit
Expenses & Liabilities in respect of employees benefit are recorded in
accordance with Revised Accounting Standard 15- Employee Benefits
(Revised 2005)
1) Short Term Employee Benefit
All Employee benefit payable wholly within twelve month of rendering
the service are classified as short term employee benefit and they are
recognized in the period in which employee rendered the related
service.
2) Post Employee benefit
i) Defined Contribution Plan
Defined contribution Plan are government administered Provident Fund,
Employee State Insurance Scheme of all employee, company contribution
to defined contribution plan are recognized in the profit & loss
account in the financial year in which the employee rendered the
related services. ii) Defined Benefit Gratuity Plan
Gratuity is a defined benefit plan, the liabilities recognized in the
balance sheet in respect of Gratuity is the present value of the
defined benefit obligation at the balance sheet date less the fair
market value of plan assets, together with adjustment for unrecognized
actuarial gains or losses and Past service cost, the defined benefit
obligation is calculated at or near the balance sheet date by are in
dependent actuary using the projected unit credit method. Actuarial
gain and Losses arising from past experience and changes in actuarial
assumption are charged to the prior period item, in the year in which
such gains or losses are determined.
(r) Provision, Contingent Liabilities & Contingent Assets
The Provision is recognized when the company has a present obligation
as a result of past events and it is probable that an outflow of
resources would be required to settle the obligation, in respect of
which a reliable estimate can be made. A disclosure for a Contingent
Liability is made when there is a Possible Obligation or a Present
obligation that may not require an outflow of resources.
(s) Cenvat Benefit
CENVAT Benefit is accounted on accrual basis on purchase of Raw
material, and Packing Material as per amended rules and regulation.
(t) Prior Period Adjustment & Extra Ordinary Item
Income and expenditure pertaining to prior period duly reflected under
head of prior period items in the statement of Profit & loss during the
financial year. In the current year Rs. 259083/- on account of keyman
insurance premium, Rs. 28090/- on account of cost auditor remuneration
& Rs. 72963/- on account of income tax of earlier year debited to
statement of profit & loss.
(u) Excise Duty
1. Excise Duty on manufactured excisable goods has been accounted on
the basis of both payment made in respect of goods cleared but no
provision for Rs. 99235/- has been made for goods lying in godown
because it will be provided after clearance of goods sold.
2. Excise duty on sales amounting to Rs. 4112933/- has been reduced
from sales in profit & loss account and excise duty on stock Rs.
99235/- has not been considered in the financial statement due to
recorded on clearance of goods for sale.
(v) Contingencies and Events occurring after the Balance Sheet date.
Accounting for contingencies (gains and losses) arising out of
contractual obligations, are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board,
where material.
(w) Impairment of Assets
Fixed asset are reviewed for impairment whenever events or changes in
circumstances indicates that the carrying amount of assets may not be
recoverable. If such assets are considered to be impaired, the
impairment is recognized by debiting the Profit & Loss Account and is
measured as the amount by which the carrying cost of assets exceeds the
fair vale of assets. The impairment loss recognized in prior accounting
period is reversed, if there has been a charge in the estimate of
recoverable amount. By virtue of this Company has carried out
comprehensive exercise, to assess the impairment loss of assets based
on such exercise. There is no impairment of assets accordingly no
adjustment in respect of loss or impairment of assets is required to be
made in the accounts.
Mar 31, 2012
(A) BASIS OF ACCOUNTING
The financial statements have been prepared and presented under the
historical cost convention on the accrual Basis of Accounting and in
accordance with the Provision of the Companies Act 1956 and Accounting
Principle generally accepted in India and comply with applicable
Accounting principles in India, the mandatory Accounting Standards
issued by the Institute of Chartered Accountant of India and the
Companies Act, 1956.
(B) This is the first year of application of the Revised Schedule VI to
the Companies Act, 1956 for the Preparation of the Financial Statements
of the Company. The Revised Schedule VI introduced some significant
conceptual changes as well as new Disclosure. These include
classification of Assets and Liabilities in Current and Noncurrent. The
Previous Period figures have also undergone a major reclassification to
Company with the requirement of the Revised Schedule VI.
(C) CURRENT AND NON CURRENT CLASSIFICATION
All Assets and Liabilities are classified into Current and Noncurrent.
ASSETS:- As assets is classified as current when it satisfies any of
the following criteria:
(i) It is expected to be realized in or intended for sale or
consumption in the company normal operating cycle.
(ii) It is held primarily for the purpose of being traded.
(iii) It is expected to be realized within 12 months of the reporting
date or
(iv) It is Cash or Cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Current assets include the current position of the non current financial
assets. All other Assets are classified as Noncurrent.
LIABILITY:- A Liability is classified as current when it satisfies any
of the following criteria:
(i) It is expected to be settled in the companies normal operating
cycle, or
(ii) It is held primarily for the purpose of being traded, or
(iii) It is due to be settled within 12 months after the reporting
date, or
(iv) The company does not have an unconditional right to date
settlement of the liability for at least 12 months after the reporting
date. Term of a liability that could at the option of the counter party
result in its settlement by the issue of equity instrument do not
affected its classification. Current liability includes current
position of the non current financial liabilities all other liabilities
are classified as Noncurrent.
(D) Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
E) Use of Estimates
The preparation of financial Statements requires estimates and
assumptions to be made that affect the reported amount of Assets &
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
(F) Sales
Sales are inclusive of freight and octopi claimed in the sales
invoices, but net of excise duty and sales return.
(G) State Subsidy
State capital investment subsidy is not specifically related to any
Fixed Assets and has been credited to Capital Subsidy Account under the
head of Capital Reserve.
(H) Fixed Assets
Fixed assets are carried at cost of acquisition or construction (net of
CENVAT where applicable). They are carried at historical cost less
accumulated depreciation.
(I) Depreciation
Depreciation is charged over the estimated useful life of fixed assets
on a Written down Value basis. The rates of depreciation for fixed
assets, which are not lower than the rates prescribed in Schedule XIV
to the Companies Act, 1956.
(J) Stores and Spares including Chemical
Stores, Spares & Chemical are charged to the Profit and Loss Account as
and when these are incurred.
(K) Revenue Recognition
In appropriate circumstances revenue income is recognized when no
significant uncertainty as to the determination or realization exist.
(L) Inventories
Inventories consisting of Raw Material and Packing Material have been
valued at lower of cost or net realizable value on FIFO cost basis.
Finished goods have been valued at lower of cost or net realizable
value. Costs for Finished Goods includes direct material, lab our,
excise duty and appropriate production overheads.
(M) Investment
Investment in Equity Shares is stated at cost. Company has made the
investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl
Securities Ltd., a Company under the same management. But no provision
of Rs.18, 38, 464.00 (P.Y. Rs. 46, 94,528.00) has been made for
diminution in value of Securities [(Market Value Rs. 49, 45, 536.00)
(P.Y. Rs. 20, 89, 472.00)] due to temporary in nature in the opinion of
the management.
(N) Foreign Currency Transactions
There is no foreign currency transaction entered into by the company in
during the year.
(O) Borrowing Cost
Borrowing cost is treated as revenue expenditure and is charged to the
Profit and Loss Account for the year. There is no borrowing cost
regarding acquisition of capital assets.
(P) Taxation
a) The Provision for current tax has been provided in accordance with
the Income Tax Act, 1961.
b) Deferred tax assets and liabilities are recognized on a prudent
basis for future tax consequences of timing differences arising between
the carrying value of assets and liabilities and their respective tax
basis, and carried forward losses. It is measured using tax rates and
tax laws that have been enacted or substantially enacted at the balance
sheet date. The impact of changes in deferred tax assets and
liabilities is recognized to the profit and loss account.
(Q) Earnings per share
The company reports basic and diluted earnings per shares are computed
in accordance with Accounting Standard-20 -Earning per share.
Basic EPS is calculated by dividing the Net Profit after tax for the
year attributable to equity share holders by the weighted Average
number of Equity Shares outstanding during the year.
(R) Employee Benefit
Expenses & Liabilities in respect of employees benefit are recorded in
accordance with Revised Accounting Standard 15- Employee Benefits
(Revised 2005)
1) Short Term Employee Benefit
All Employee benefit payable wholly within twelve month of rendering
the service are classified as short term employee benefit and they are
recognized in the period in which employee rendered the related
service.
2) Post Employee benefit
a) Defined Contribution Plan
Defined contribution Plan are government administered Provident Fund,
Employee State Insurance Scheme of all employee, company contribution
to defined contribution plan are recognized in the profit & loss
account in the financial year in which the employee rendered the
related services.
b) Defined Benefit Gratuity Plan Gratuity is a defined benefit plan,
the liabilities recognized in the balance sheet in respect of Gratuity
is the present value of the defined benefit obligation at the balance
sheet date less the fair market value of plan assets, together with
adjustment for unrecognized actuarial gains or losses and Past service
cost, the defined benefit obligation is calculated at or near the
balance sheet date by are in dependent actuary using the projected unit
credit method. Actuarial gain and Losses arising from past experience
and changes in actuarial assumption are charged to the prior period
item, in the year in which such gains or losses are determined.
(S) Provision, Contingent Liabilities& Contingent Assets
The Provision is recognized when the company has a present obligation
as a result of past events and it is probable that an outflow of
resources would be required to settle the obligation, in respect of
which a reliable estimate can be made.
A disclosure for a Contingent Liability is made when there is a
Possible Obligation or a Present obligation that may not require an
outflow of resources.
(T) Canvas Benefit
CENVAT Benefit is accounted on accrual basis on purchase of Raw
material, and Packing Material as per amended rules and regulation.
(U) Prior Period Adjustment & Extra Ordinary Item
Income and expenditure pertaining to prior period duly reflected under
head of prior period items in the Profit & loss Account during the
financial year.
(V) Excise Duty
a) Excise Duty on manufactured excisable goods has been accounted on
the basis of both payment made in respect of goods cleared as also
provision made for goods lying in go down and accordingly liability of
excise duty provided is NIL (P.Y. Rs. 25,332/-) as certified by the
Management.
b) Excise duty on sales amounting to Rs.4, 93,036.00 (P.Y. 6,
46,846.00) has been reduced from sales in profit & loss account and
excise duty on stock considered as nil (P.Y. 25,332.00) has been
considered in the financial statement
(W) Contingencies and Events occurring after the Balance Sheet date.
Accounting for contingencies (gains and losses) arising out of
contractual obligations, are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board,
where material.
(X) Impairment of Assets
Fixed asset are reviewed for impairment whenever events or changes in
circumstances indicates that the carrying amount of assets may not be
recoverable. If such assets are considered to be impaired, the
impairment is recognized by debiting the Profit & Loss Account and is
measured as the amount by which the carrying cost of assets exceeds the
fair value of assets. The impairment loss recognized in prior accounting
period is reversed, if there has been a charge in the estimate of
recoverable amount. By virtue of this Company has carried out
comprehensive exercise, to assess the impairment loss of assets based
on such exercise. There is no impairment of assets accordingly no
adjustment in respect of loss or impairment of assets is required to be
made in the accounts.
Mar 31, 2010
A. Basis of Accounting
1. The accounts of the Company are prepared under the historical cost
convention and in accordance with the applicable Accounting Principle
in India, The Accounting Standards issued by the Institute of Chartered
Accountants of India and the relevant provision of the Companies Act,
1956. Accounting policies not specifically referred otherwise are in
consistence with generally accepted accounting principles followed by
the Company.
2. The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
b. Sales
Sales are inclusive of freight and octroi claimed in the sales
invoices, but net of excise duty and sales return.
c. State Subsidy
State capital investment subsidy not specifically related to any Fixed
Assets and has been credited to Capital Subsidy Account.
d. Fixed Assets
Fixed assets are stated at cost of acquisition or construction (net of
CENVAT where applicable). They are stated at historical cost less
accumulated depreciation.
e. Depreciation
Depreciation is provided on the basis of Written Down Value method at
the rates and in the manner prescribed under Schedule XIV to the
Companies Act, 1956.
f. Stores and Spares including Chemical
Stores, Spares & Chemical are charged to the Profit and Loss Account as
and when these are incurred.
g. Revenue Recognition
In appropriate circumstances revenue income is recognized when no
significant uncertainty as to the determination or realization exist.
h. Inventories
Inventories consisting of Raw Material and Packing Material have been
valued at lower of cost or net realizable value on FIFO cost basis.
Finished goods have been valued at lower of cost or net realisable
value. Costs for Finished Goods includes direct material, labour,
excise duty and appropriate production overheads.
i. Investment
Investment in Equity Shares is stated at cost Company has made the
investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl
Securities Ltd. a Company under the same management. But no provision
of Rs.6105600.00 (P.Y. Rs.6105600.00) has been made for diminution in
value of Securities [(Market Value Rs. 678400.00) (P.Y. Rs.
678400.00)] due to temporary in nature in the opinion of the
management.
j. Foreign Currency Transactions
There is no foreign currency transaction recorded during the year.
k. Borrowing Cost
Borrowing cost are treated as revenue expenditure and are charged to
the Profit and Loss Account for the
year. There is no borrowing cost regarding acquisition of capital
assets.
l. Segment Reporting
Since the company is being operated in a single segment, namely
"Injectable" (SV & LV) Thus the disclosure requirement of AS-17 issued
by the ICAI is not applicable.
m. Taxation
a) Provision for current tax has been provided in accordance with the
Income Tax Act, 1961.
b) Deferred Income tax is recognised for future tax consequences of
timing differences. It is measured using enacted tax rates and tax laws
applicable to taxable income of the current year.
n. Earning per share
The company reports basic and diluted Earning per Shares (EPS) in
accordance with AS-20. Basic EPS is computed by dividing the Net Profit
after tax for the year by the weighted Average number of Equity Shares
outstanding during the year.
o. Employee Benefit
Expenses & Liabilities in respect of employees benefit are recorded in
accordance with Revised Accounting Standard 15- Employee Benefits
(Revised 2005)
1) Short Term Employee Benefit
All Employee benefit payable wholly within twelve month of rendering
the service are classified as short termemployee benefit and they are
recognized in the period in which employee rendered the related
service.
2) Post Employee benefit
a) Defined Contribution Plan
Defined contribution Plan are government administered Provident Fund,
Employee State Insurance Scheme of all employee, company contribution
to defined contribution plan are recognized in the profit & loss
account in the financial year in which the employee rendered the
related services.
b) Defined Benefit Gratuity Plan
Gratuity is a defined benefit plan, the liabilities recognized in the
balance sheet in respect of Gratuity is the present value of the
defined benefit obligation at the balance sheet date less the fair
market value of plan assets, together with adjustment for unrecognized
actuarial gains or losses and Past service cost, the defined benefit
obligation is calculated at or near the balance sheet date by are in
dependent actuary using the projected unit credit method. Actuarial
gain and Losses arising from past experience and changes in actuarial
assumption are charged to the prior period item, in the year in which
such gains or losses are determined.
p. Provision Contingent Liabilities& Contingent Assets
Provision is recognized when the company has a present obligation as a
results of past events and it is probable that there will be an outflow
of resources would be required to settle the obligation and in respect
of which a reliable estimate can be made.
q. Cenvat Benefit
CENVAT Benefit is accounted on accrual basis on purchase of Raw
material, and Packing Material as per amended rules and regulation.
r. Prior Period Adjustment & Extra Ordinary Item
Income and expenditure pertaining to prior period duly reflected in
prior period items in during the financial year.
s. Excise Duty
a) Excise Duty on manufactured excisable goods has been accounted on
the basis of both payment made in respect of goods cleared as also
provision made for goods lying in godown and accordingly liability of
excise duty is provided Rs.25,332/- (P.Y. Rs.58,821/-) as certified by
the Management.
b) Excise duty on sales amounting to Rs.6,46,846.00 (P.Y. 3,48,385) has
been reduced from sales in profit & loss account and excise duty on
stock amounting Rs. 25,332.00 (P.Y. 58,821.00) has been considered in
the financial statement.
u. Contingencies and Events occurring after the Balance Sheet date.
Accounting for contingencies (gains and losses) arising out of
contractual obligations, are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are
considered up to the date of approval of the accounts by the Board,
where material.
v. Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed, if there has been a charge in the estimate of recoverable
amount. By virtue of this Company has carried out comprehensive
exercise, to assess the impairment loss of assets based on such
exercise. There is no impairment of assets accordingly no adjustment in
respect of loss or impairment of assets is required to be made in the
accounts.
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