Mar 31, 2015
(a) System of Accounting :
(i) The company maintains its accounts on accrual basis following
historical cost convention to comply in all material respects with the
Accounting Standards notified by Companies (Accounting Standards)
Rules, 2006 (as amended) and the relevant provisions of the Companies
Act, 1956 and the Rules except in the case of insignificant items and
also in respect of significant uncertainties. Management makes
estimates and technical and other assumptions regarding the amounts of
income and expenses, assets and liabilities, and disclosure of
contingencies, in accordance with Generally Accepted Accounting
Principles in India in the preparation of the financial statements.
Difference between the actual results and estimates are recognized in
the period in which determined.
(ii) Assets and Liabilities are recorded at historical cost to the
company except for assets which were revalued. These costs are
not adjusted to reflect the changing value of purchasing power of
money.
(b) Fixed Assets :
i) Fixed Assets are carried at historical cost less depreciation
(except freehold land), impairment losses and specific grants received,
if any.(except for assets which have been revalued). Any other
attributable costs (including interest) for bringing the assets to its
working condition for its intended use are capitalized.
ii) Substantial expenditure on System Software Development is treated
as intangible asset.
iii) Treatment of Expenditure during the construction period :
The expenditure' incurred during the period of construction (including
cost of trial runs) is debited to the capital work-inprogress and on
completion the costs are allocated to the respective fixed assets. -
(c) Investments :
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower. Cost is determined on a weighted average
basis.
(d) Inventories:
Inventories are valued at cost or net realisable value; whichever is
lower Further the cost is determined on following basis:
i) Raw material: Imported and indigenous raw material on weighted
average basis for Chemical division of Ambernath & Dahej.
ii) Stores & Spares and packing material: At weighted average cost.
iii) Material-in-process : The cost includes direct costs and
appropriate overheads.
(iv) Finished goods : Cost includes direct cost, related overheads and
excise duty.
(v) By Product: Estimated Net Realisable Value
(e) Revenue Recognition:
i) Domestic Sales are accounted on dispatch of products and are stated
net of returns.
ii) Export Sales in foreign currency are accounted at the exchange rate
prevailing on the date of Bill of Lading.
iii) Sales are inclusive of services, excise duty, duty drawback but
exclude sales taxA/AT.
iv) Other income including interest is accounted on accrual basis.
v) Dividend Income is accounted when the right to receive is
established
vi) Insurance Claims are recognized on the basis of claims preferred
with Insurance Company after careful evaluation.
(f) Borrowing Cost:
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized. Other borrowings
costs are charged to the Statement of Profit & Loss.
(g) Leases: -
Lease rentals in respect of assets acquired under operating lease are
charged to Statement of Profit and Loss.
(h) Earning per Share:
Earning per Share calculated by dividing net profit /loss for the
period is attributable to equity shareholder (after deducting
preference dividend and attributable taxes) by the weighted average
number of Equity Shares outstanding during the period.
(i) Foreign Currency Transactions :
i) Foreign currency transactions are accounted at the rate prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are translated at the exchange rate prevailing on the last day
of the accounting period. In respect of items covered by forward
exchange contracts the premium or discount arising at the inception of
such a forward exchange contract is amortised as expense or income over
the life of the contract. Any profit or loss arising on cancellation or
renewal of such a forward exchange contract is recognized as income or
expense for the period.
ii) Gain or loss arising out of translation/conversion is taken credit
for or charged to the Profit and Loss Account, except in cases where
they relate to acquisition of fixed assets, in which case they are
adjusted to the carrying cost of such assets.
(j) Depreciation:
i) Depreciation on Fixed Assets is provided on Straight Line Method
except for Chemical Division where it is provided on Written Down Value
method for all assets other than Plant & Machinery including Office
Equipment & Computer added after 1st April 1987 which are provided on
Straight Line Method at the rates and in the manner specified in
Schedule II to the Companies Act, 2013 .
ii) Depreciation calculated in (i) above for Chemical Division includes
additional charge of Depreciation, on account of revaluation of certain
Fixed Assets as at 31st March 1986. However, the difference between the
depreciation on revalued book value of Fixed Assets and the original
cost is withdrawn from the Revaluation Reserve and credited to the
General Reserve.
iii) Intangible asset are amortised over a period of ten years.
iv) Cost of leasehold land is amortised over the lease period.
(k) Impairment of assets:
The carrying cost of assets is reviewed at each Balance Sheet date for
any indication of impairment based on internal/ external factors. An
impairment loss is recognised whenever the carrying amount of assets
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to the present
value at the weighted average cost of capital.
Post impairment depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
(l) Employee Benefits:
i) Defined Contribution Plan: Company's contributions paid/payable
during the year to Provident Fund, Employee's Superannuation Fund,
Gratuity, ESIC and Labour Welfare Fund are recognised in the Profit and
Loss Account. There are no other obligations other than the
contribution payable to the respective trusts.
ii) Defined Benefit Plan: Company's liabilities towards gratuity and
leave encashment are determined using the projected unit credit method
which considers each period of service as giving rise to an additional
unit of benefit entitlement and measures each unit separately to build
up the final obligation. Past services are recognised on a straight
line basis over the average period until the amended benefits become
vested. Actuarial gain and losses are recognised immediately in the
statement of Profit and Loss Account as income or expense. Obligation
is measured at the present value of estimated future cash flows using a
discounted rate that is determined by reference to market yields at the
Balance Sheet date on Government bonds where the currency and terms of
the Government bonds are consistent with the currency and estimated
terms of the defined benefit obligation.
(m) Taxation:
(i) Income tax expense comprises current tax and deferred tax charge or
credit. The deferred tax charged or credit is recognised using
prevailing enacted or substantively enacted tax rates. Where there is
unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty of realisation of
such assets. Other deferred tax assets are recognised only to the
extent there is reasonable certainty of realisation in future. Deferred
tax assets/liabilities are reviewed as at each Balance Sheet date based
on developments during the year and available case laws, to reassess
realisation/liabillties.
(ii) Deferred tax in respect of timing differences which reverse after
tax holiday period, are recognised in the year in which the timing
differences originate.
(n) Contingencies / Provisions:
Provision is recognised when the Company has a present obligation as a
result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation;
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote. Contingent assets are neither
recognized nor disclosed in the financial statements.
Jun 30, 2014
(a) System of Accounting :
(i) The Company maintains its accounts on accrual basis following
historical cost convention to comply in all material respects with the
Accounting Standards notifi ed by Companies (Accounting Standards)
Rules, 2006 (as amended) and the relevant provisions of the Companies
Act, 1956 and the Rules except in the case of insignifi cant items and
also in respect of signifi cant uncertainties. Management makes
estimates and technical and other assumptions regarding the amounts of
income and expenses, assets and liabilities, and disclosure of
contingencies, in accordance with Generally Accepted Accounting
Principles in India in the preparation of the fi nancial statements.
Difference between the actual results and estimates are recognized in
the period in which determined.
(ii) Assets and Liabilities are recorded at historical cost to the
Company except for assets which were revalued. These costs are not
adjusted to refl ect the changing value of purchasing power of money.
(b) Fixed Assets :
i) Fixed Assets are carried at historical cost less depreciation
(except freehold land), impairment losses and specifi c grants
received, if any.(except for assets which have been revalued). Any
other attributable costs (including interest) for bringing the assets
to its working condition for its intended use are capitalized.
ii) Substantial expenditure on System Software Development is treated
as intangible asset.
iii) Treatment of Expenditure during the construction period :
The expenditure incurred during the period of construction (including
cost of trial runs) is debited to the capital work-in- progress and on
completion the costs are allocated to the respective fi xed assets.
(c) Investments :
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower. Cost is determined on a weighted average
basis.
(d) Inventories :
Inventories are valued at cost or net realisable value; whichever is
lower Further the cost is determined on following basis:
i) Raw material : Imported and indigenous raw material on weighted
average basis for Chemical division of Ambernath & Dahej.
ii) Stores & Spares and packing material : At weighted average cost.
iii) Material-in-process : The cost includes direct costs and
appropriate overheads.
(iv) Finished goods : Cost includes direct cost, related overheads and
excise duty.
(v) Bye Product Estimated Net Realisable Value
(e) Revenue Recognition:
i) Domestic Sales are accounted on despatch of products and are stated
net of returns.
ii) Export Sales in foreign currency are accounted at the exchange rate
prevailing on the date of Bill of Lading.
iii) Sales are inclusive of services, excise duty, duty drawback but
exclude sales tax/VAT.
(iv) Other income including interest is accounted on accrual basis.
(v) Dividend Income is accounted when the right to receive is
established
(vi) Insurance Claims are recognized on the basis of claims preferred
with Insurance Company after careful evaluation.
(f) Borrowing Cost:
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized. Other borrowings
costs are charged to the Statement of Profi t & Loss.
(g) Leases:
Lease rentals in respect of assets acquired under operating lease are
charged to Statement of Profi t and Loss.
(h) Earning per Share:
Earning per Share calculated by dividing net profi t /loss for the
period is attributable to equity shareholder (after deducting
preference dividend and attributable taxes) by the weighted average
number of Equity Shares outstanding during the period.
(i) Foreign Currency Transactions :
i) Foreign currency transactions are accounted at the rate prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are translated at the exchange rate prevailing on the last day
of the accounting period. In respect of items covered by forward
exchange contracts the premium or discount arising at the inception of
such a forward exchange contract is amortised as expense or income over
the life of the contract. Any profi t or loss arising on cancellation
or renewal of such a forward exchange contract is recognized as income
or expense for the period.
ii) Gain or loss arising out of translation/conversion is taken credit
for or charged to the Profi t and Loss Account, except in cases where
they relate to acquisition of fi xed assets, in which case they are
adjusted to the carrying cost of such assets.
(j) Depreciation :
i) Depreciation on Fixed Assets is provided on Straight Line Method
except for Chemical Division where it is provided on Written Down Value
method for all assets other than Plant & Machinery including Offi ce
Equipment & Computer added after 1st April 1987 which are provided on
Straight Line Method at the rates and in the manner specifi ed in
Schedule XIV to the Companies Act,1956 .
ii) Depreciation calculated in (i) above for Chemical Division includes
additional charge of Depreciation, on account of revaluation of certain
Fixed Assets as at 31st March 1986. However, the difference between the
depreciation on revalued book value of Fixed Assets and the original
cost is withdrawn from the Revaluation Reserve and credited to the
Profi t and Loss Account.
iii) Intangible assets are amortised over a period of ten years.
iv) Cost of leasehold land is amortised over the lease period.
(k) Impairment of assets:
The carrying cost of assets is reviewed at each Balance Sheet date for
any indication of impairment based on internal/ external factors. An
impairment loss is recognised whenever the carrying amount of assets
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash fl ows are discounted to the present
value at the weighted average cost of capital. Post impairment
depreciation is provided on the revised carrying value of the assets
over its remaining useful life.
(l) Employee Benefits:
i) Defi ned Contribution Plan: Company''s contributions paid/payable
during the year to Provident Fund, Employee''s Superannuation Fund,
Gratuity, ESIC and Labour Welfare Fund are recognised in the Profi t
and Loss Account. There are no other obligations other than the
contribution payable to the respective trusts.
ii) Defi ned Benefit Plan: Company''s liabilities towards gratuity and
leave encashment are determined using the projected unit credit method
which considers each period of service as giving rise to an additional
unit of benefi t entitlement and measures each unit separately to build
up the fi nal obligation. Past services are recognised on a straight
line basis over the average period until the amended benefi ts become
vested. Actuarial gain and losses are recognised immediately in the
statement of Profi t and Loss Account as income or expense. Obligation
is measured at the present value of estimated future cash fl ows using
a discounted rate that is determined by reference to market yields at
the Balance Sheet date on Government bonds where the currency and terms
of the Government bonds are consistent with the currency and estimated
terms of the defi ned benefi t obligation.
(m) Taxation:
(i) Income tax expense comprises current tax and deferred tax charge or
credit. The deferred tax charged or credit is recognised using
prevailing enacted or substantively enacted tax rates. Where there is
unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty of realisation of
such assets. Other deferred tax assets are recognised only to the
extent there is reasonable certainty of realisation in future. Deferred
tax assets/liabilities are reviewed as at each Balance Sheet date based
on developments during the year and available case laws, to reassess
realisation/liabilities.
(ii) Deferred tax in respect of timing differences which reverse after
tax holiday period, are recognised in the year in which the timing
differences originate.
(n) Contingencies / Provisions:
Provision is recognised when the Company has a present obligation as a
result of past event; it is probable that an outfl ow of resources
embodying economic benefi t will be required to settle the obligation;
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to refl ect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outfl ow of resources
embodying the economic benefi t is remote. Contingent assets are
neither recognized nor disclosed in the financial statements.
Mar 31, 2013
(a) System of Accounting :
(i) The Company adopts the accrual concept in the preparation of its
accounts except in the case of insignificant items and also in respect
of significant uncertainties.
(ii) Assets and Liabilities are recorded at historical cost to the
company except for assets which were revalued. These costs are not
adjusted to reflect the changing value of purchasing power of money.
(iii) During the year ended 31st March 2013, the revised Schedule VI
notified under the Companies Act, 1956, has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
(b) Fixed Assets : (Dahej)
i) Fixed Assets are carried at historical cost less depreciation
(except freehold land), impairment losses and specific grants received,
if any.(except for assets which have been revalued). Any other
attributable costs (including interest) for bringing the assets to its
working condition for its intended use are capitalized.
ii) Substantial expenditure on System Software Development is treated
as intangible asset.
iii) Treatment of Expenditure during the construction period :
The expenditure incurred during the period of construction (including
cost of trial runs) is debited to the capital work-in- progress and on
completion the costs are allocated to the respective fixed assets.
(c) Investments :
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower. Cost is determined on a weighted average
basis.
(d) Inventories :
Inventories are valued at cost or net realisable value; whichever is
lower Further the cost is determined on following basis:
i) Raw material
Imported and indigenous raw material on weighted average basis for
Chemical division and on FIFO basis for other divisions.
ii) Stores & Spares and packing material:
At weighted average cost.
iii) Material-in-process :
The cost includes direct costs and appropriate overheads.
(iv) Finished goods :
Cost includes direct cost, related overheads and excise duty.
(v) By Product
Estimated Net Realisable Value
(e) Revenue Recognition:
i) Domestic Sales are accounted on dispatch of products and are stated
net of returns.
ii) Export Sales in foreign currency are accounted at the exchange rate
prevailing on the date of Bill of Lading.
(iii) Sales are inclusive of services, excise duty, duty drawback but
exclude sales tax/VAT.
(iv) Other income including interest is accounted on accrual basis.
(v) Dividend Income is accounted when the right to receive is
established
(vi) Insurance Claims are recognized on the basis of claims preferred
with Insurance Company after careful evaluation.
(f) Borrowing Cost:
Borrowing cost that are attributable to the acquisition, construction or
production of a qualifying assets are capitalized. Other borrowings
costs are expensed out.
(g) Leases:
Lease rentals in respect of assets acquired under operating lease are
charged to Profit and Loss.
(h) Earnings per Share:
Earnings per Share calculated by dividing net profit /loss for the
period is attributable to equity shareholder (after deducting
preference dividend and attributable taxes)-by the weighted average
number of Equity Shares outstanding during the period.
(i) Foreign Currency Transactions :
i) Foreign currency transactions are accounted at the rate prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are translated at the exchange rate prevailing on the last day
of the accounting period, in respect of items covered by forward
exchange contracts the premium or discount arising at the inception of
such a forward exchange contract is amortised as expense or income over
the life of the contract. Any profit or loss arising on cancellation or
renewal of such a forward exchange contract is recognized as income or
expense for the period.
ii) Gain or loss arising out of translation/conversion is taken credit
for or charged to the Profit and Loss Account, except in cases where
they relate to acquisition of fixed assets, in which case they are
adjusted to the carrying cost of such assets.
(j) Depreciation :
i) Depreciation on Fixed Assets is provided on Straight Line Method
except for Chemical Division where it is provided on Written Down Value
method for all assets other than Plant & Machinery added after 1st
April 1987 which are provided on Straight Line Method at the rates and
in the manner specified in Schedule XIV to the Companies Act, 1956.
ii) Depreciation calculated in (i) above for Chemical Division includes
additional charge of Depreciation, on account of revaluation of certain
Fixed Assets as at 31st March 1986. However, the difference between the
depreciation on revalued book value of Fixed Assets and the original
cost is withdrawn from the Revaluation Reserve and credited to the
Profit and Loss Account.
iii) Intangible asset are amortised over a period of ten years.
iv) Cost of leasehold land is amortised over the lease period.
(k) Impairment of assets:
The carrying cost of assets is reviewed at each Balance Sheet date for
any indication of impairment based on internal/ external factors. An
impairment loss is recognised whenever the carrying amount of assets
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to the present
value at the weighted average cost of capital.
Post impairment depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
(I) Employee Benefits:
i) Defined Contribution Plan: Company''s contributions paid/payable
during the year to Provident Fund, Employee''s Superannuation Fund,
Gratuity, ESIC and Labour Welfare Fund are recognised in the Profit and
Loss Account. There are no other obligations other than the
contribution payable to the respective trusts.
ii) Defined Benefit Plan: Company''s liabilities towards gratuity and
leave encashment are determined using the projected unit credit method
which considers each period of service as giving rise to an additional
unit of benefit entitlement and measures each unit separately to build
up the final obligation. Past services are recognised on a straight
line basis over the average period until the amended benefits become
vested. Actuarial gain and losses are recognised immediately in the
statement of Profit and Loss Account as income or expense. Obligation
is measured at the present value of estimated future cash flows using a
discounted rate that is determined by reference to market yields at the
Balance Sheet date on Government bonds where the currency and terms of
the Government bonds are consistent with the currency and estimated
terms of the defined benefit obligation.
(m) Taxation:
(i) Income tax expense comprises current tax and deferred tax charge or
credit. The deferred tax charged or credit is recognised using
prevailing enacted or substantively enacted tax rates. Where there is
unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty of realisation of
such assets. Other deferred tax assets are recognised only to the
extent there is reasonable certainty of realisation in future. Deferred
tax assets/liabilities are reviewed as at each Balance Sheet date based
on developments during the year and available case laws, to reassess
realisation/ liabilities.
(ii) Deferred tax in respect of timing differences which reverse after
tax holiday period, are recognised in the year in which the timing
differences originate.
(n) Contingencies / Provisions:
Provision is recognised when the Company has a present obligation as a
result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation;
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote. Contingent assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2012
(a) System of Accounting :
(i) The Company adopts the accrual concept in the preparation of its
accounts except in the case of insignificant items and also in respect
of significant uncertainties.
(ii) Assets and Liabilities are recorded at historical cost to the
company except for assets which were revalued. These costs are not
adjusted to reflect the changing value of purchasing power of money.
(iii) During the year ended 31st March, 2012, the revised Schedule VI
notified under the Companies Act, 1956, has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
(b) Fixed Assets:
i) Fixed Assets are carried at historical cost less depreciation
(except freehold land), impairment losses and specific grants received,
if any. (except for assets which have been revalued). Any other
attributable costs (including interest) for bringing the assets to its
working condition for its intended use are capitalized.
ii) Substantial expenditure on System Software Development is treated
as intangible asset.
iii) Treatment of Expenditure during the construction period :
The expenditure incurred during the period of construction (including
cost of trial runs) is debited to the capital work-in- progress and on
completion the costs are allocated to the respective fixed assets.
(c) Investments:
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower. Cost is determined on a weighted average
basis.
(d) Inventories:
Inventories are valued at cost or net realisable value; whichever is
lower. Further the cost is determined on following basis:
i) Raw material : Imported and indigenous raw material on weighted
average basis for Chemical Division and on FIFO basis for Other
Divisions.
ii) Stores & Spares and packing : At weighted average cost, material
iii) Material-in-process : The cost includes direct costs and
appropriate overheads.
(iv) Finished goods : Cost includes direct cost, related overheads and
excise duty.
(v) By Product : Estimated Net Realisable Value.
(e) Revenue Recognition:
i) Domestic Sales are accounted on despatch of products and are stated
net of returns.
ii) Export Sales in foreign currency are accounted at the exchange rate
prevailing on the date of Bill of Lading.
iii) Sales are inclusive of services, excise duty, duty drawback but
exclude sales tax/VAT.
iv) Other income including interest is accounted on accrual basis.
v) Dividend Income is accounted when the right to receive is
established.
vi) Insurance Claims are recognized on the basis of claims preferred
with Insurance Company after careful evaluation.
(f) Borrowing Cost:
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying assets are capitalized. Other borrowings
cost are expensed out.
(g) Leases:
Lease rentals in respect of assets acquired under operating lease are
charged to Profit and Loss.
(h) Earning per Share:
Earning per Share calculated by dividing net profit /loss for the
period is attributable to equity shareholder (after deducting
preference dividend and attributable taxes) by the weighted average
number of Equity Shares outstanding during the period.
(i) Foreign Currency Transactions :
i) Foreign currency transactions are accounted at the rate prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are translated at the exchange rate prevailing on the last day
of the accounting period. In respect of items covered by forward
exchange contracts the premium or discount arising at the inception of
such a forward exchange contract is amortised as expense or income over
the life of the contract. Any profit or loss arising on cancellation or
renewal of such a forward exchange contract is recognized as income or
expense for the period.
ii) Gain or loss arising out of translation/conversion is taken credit
for or charged to the Profit and Loss Account, except in cases where
they relate to acquisition of fixed assets, in which case they are
adjusted to the carrying cost of such assets.
(j) Depreciation:
i) Depreciation on Fixed Assets is provided on Straight Line Method
except for Chemical Division where it is provided on Written Down Value
method for all assets other than Plant & Machinery added after 1st
April 1987 which are provided on Straight Line Method at the rates and
in the manner specified in Schedule XIV to the Companies Act,1956
ii) Depreciation calculated in (i) above for Chemical Division includes
additional charge of Depreciation, on account of revaluation of certain
Fixed Assets as at 31st March 1986. However, the difference between the
depreciation on revalued book value of Fixed Assets and the original
cost is withdrawn from the Revaluation Reserve and credited to the
Profit and Loss Account.
iii) Intangible asset are amortised over a period of ten years.
iv) Cost of leasehold land is amortised over the lease period.
(k) Impairment of assets:
The carrying cost of assets is reviewed at each Balance Sheet date for
any indication of impairment based on internal/ external factors. An
impairment loss is recognised whenever the carrying amount of assets
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to the present
value at the weighted average cost of capital. ,
Post impairment depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
(I) Employee Benefits: .
i) Defined Contribution Plan: Company's contributions paid/payable
during the year to Provident Fund, Employee's Superannuation Fund,
Gratuity, ESIC and Labour Welfare Fund are recognised in the Profit and
Loss Account. There are no other obligations other than the
contribution payable to the respective trusts.
ii) Defined Benefit Plan: Company's liabilities towards gratuity and
leave encashment are determined using the projected unit credit method
which considers each period of service as giving rise to an additional
unit of benefit entitlement and measures each unit separately to build
up the final obligation. Past services are recognised on a straight
line basis over the average period until the amended benefits become
vested. Actuarial gain and losses are recognised immediately in the
statement of Profit and Loss as income or expense. Obligation is
measured at the present value of estimated future cash flows using a
discounted rate that is determined by reference to market yields at .
the Balance Sheet date on Government bonds where the currency and terms
of the Government bonds are consistent with the currency and estimated
terms of the defined benefit obligation.
(m) Taxation:
(i) Income tax expense comprises current tax and deferred tax charge or
credit. The deferred tax charged or credit is recognised using
prevailing enacted or substantively enacted tax rates. Where there is
unabsorbed depreciation or carry forward losses, deferred tax assets
are recognised only if there is virtual certainty of realisation of
such assets. Other deferred tax assets are recognised only to the
extent there is reasonable certainty of realisation in future. Deferred
tax assets/liabilities are reviewed as at each Balance Sheet date based
on developments during the year and available case laws, to reassess
realisation/liabilities.
(ii) Deferred tax in respect of timing differences which reverse after
tax holiday period, are recognised in the year in which the timing
differences originate.
(n) Contingencies / Provisions:
Provision is recognised when the Company has a present obligation as a
result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation;
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote. Contingent assets are neither
recognized nor disclosed in the financial statements.
b Terms/rights attached to shares:
The Company has only one class of equity shares having a per of value
of Rs. 10/- per share. Each holder of equity share is entitled to one
vote per share. The company declares and pays dividends in Indian
Rupees. The dividend proposed by the Board of Directors is subject to
the apporoval of the shareholders in the ensuing Annual General
Meeting.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferencial amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholder.
Note 3 (a)
Capital Reserves
Capital Reserve represents capital subsidy of Rs. 15 lacs and Rs. 20 lacs
received from State Industrial Promotion Corporation of Tamil Nadu Ltd.
and Maharashtra Energy Development Agency respectively.
4.1 Additional Information to Secured/Unsecured Long Term Borrowings:
The long term portion of term loans are shown under long term
borrowings and the current maturities of the long term borrowings are
shown under the current liabilties as per the disclosure requirements
of the Revised Schedule VI.
4.2 Details of Securities and Terms of repayment
I. Secured Term Loans :
(a) Indian Renewable Energy Development Agency (IREDA)
The loans are secured by mortgage of immovable properties &
hypothecation of movable properties of the Company situated at Village
Thoseghar (Project No.908 & 1009), Village Maloshi (Project No.1136)
and Village Vankusawade (Project No.1324), all situated in Satara
District in the State of Maharashtra. The Loan for Project No. 1324 at
Vankusawade, is further secured by the mortgage/charge created on the
immovable properties, hypothecation of movable properties at Village
Thosegar (Project No. 908 & 1009) and Village Maioshi (Project
No.1136). The loan has been repaid on paying final installment of Rs.
3,65 lacs on 21st June 2011.
(b) Hire Purchase Loans
Secured by hypothecation on respective vehicle. Rate of interest @
10.53% . The loan installment is 36 months and the period of maturity
w.r.t. balance sheet date is two months.
II. Unsecured Loan:
(a) Fixed Deposits:
Interest on Fixed Deposit for one year is @ 9.50% & for three years @
10.50% ( Additional @ 0.5% interest will be paid on deposits accepted
from shareholders of the Company.)
(b) Deferred payment Credit/leasehold land:
The loan of Rs. 118.26 lacs is @ 13% interest p.a. and is repayable in 4
equal quarterly installments of Rs. 4.73 lacs each. The loan has been
fully repaid during the current year.
(c) Loan from Related parties:
The loan taken from Related parties as interest free loan and repayable
after two years from the date of received. .
Secured
Cash Credit (Note 8 (I))
Cash Credit including Export Packing Credit (Secured by hypothecation
of stock-in-trade,stores and book debts). Further secured, by way of
second charge by a simple registered mortgage on the land of Chemical
Division at Ambarnath in the state of Maharashtra.
Unsecured:
Corporate loan from HDFC Ltd (Note 8(11) (b))
Corporate loan from HDFC Ltd. @ 15.75% interest, repayable in a single
installment at the end of next year.
Note -1) There are no Micro, Small and Medium Enterprises, to whom the
Company owes dues, which are outstanding for more than 30 days at the
Balance Sheet date, computed on unit wise basis. Further, no interest
has been paid or is payable to any Micro, Small and Medium Enterprise
on the Balance Sheet date. The above information regarding Micro, Small
and Medium Enterprises has been determined to the extent such parties
have been identified on the basis of information available with the
Company. This has been relied upon by the auditors.
Note- 2) Derivative Instruments & Unhedged Foreign Currency Exposure
Note: 2(b):
Company's long term investment in Dharamsi Morarji Chemical Co.
Ltd.(DMCC) Represented by 2,34,196 fully paid up equity shares is
considered at face value after making provision for diminution of Rs.
152.06 lacs in the year 2007-08). Taking into account, intrinsic
business value of the DMCC and its business synergies to the Company no
further diminution in value is considered necessary, other loans and
advance includes
(i) Insurance claim of Rs. 64.73 lacs being non-settlement of the
Company's claim by the The New India Assurance Company Limited
(NIACL), in respect of loss of stock in the Chemical Division due to
flood during June 2002. The Consumer Disputes Redressal Commission,
Maharashtra State, Mumbai, wherein the Company had filed the
complaint,vide its interim order dated 14th November 2008 while
allowing the interim relief, directed NIACL to deposit a sum of Rs. 6.93
lacs with the Commission, which the Company has withdrawn upon
furnishing necessary bank guarantee. The Commission's notice for
final hearing of this matter is awaited.
(ii) An amount Rs. 14.22 lacs receivable from the State Trading
Corporation of India Ltd.(STC), New Delhi, on account of rate
difference and dispatch money earned. The Tis Hazari Court, Delhi,
wherein the Company filed suit against STC for recovery of this amount,
has upheld Company's claim alongwith interest @ 6% per annum from the
date of filing of the suit. STC has preferred further appeal in the
Delhi High Court which is yet to be decided;
(iii) An Amount of Rs. 37.84 lacs (Previous Year Rs. 19.84 lacs) paid to
Gratuity Trust.
Note 19(b)(i)
An amount of Rs.. 47.67 lacs on account of expenses towards proposed
Right Issue expenses. The same will be charged off against Securities
Premium as and when the issue is actually made.
* The Company has capitalised interest of Rs. 88.60 lacs paid on
acquisition of certain qualifying assets relating to Dahej Project in
terms of Accounting Standard AS-16 recoverable 'Long Term Loans &
Advances" & has furnished bank guarantee for the balance of demand.)
Iv) Excise Duty demanded by Commissioner of Central Excise, Thane-I"
272.31
** (The Company has prefered an appeal with CESTAT against the above
demand and unconditional stay on the demand has also been granted by
the CESTAT.)
(c) Some of the retrenched employees of Export Oriented Unit (EOU) of
the erstwhile Timber Division have not accepted the retrenchment
compensation offered by the company on the closure of the unit and
matter is in the court. The amount as offered by the company has been
duly provided for and as per legal opinion the possibility of any
further liability is remote. The additional liability if any is
presently not ascertainable.
Mar 31, 2010
(a) System of Accounting:
(i) The Company adopts the accrual concept in the preparation of its
accounts except in the case of insignificant items and also in respect
of significant uncertainties.
(ii) Assets and Liabilities are recorded at historical cost to the
company except for assets which were revalued. These costs are not
adjusted to reflect the changing value of purchasing power of money.
(b) Fixed Assets:
(i) Fixed Assets are carried at historical cost less depreciation
(except freehold land), impairment losses and specific grants received,
if any, (except for assets which have been revalued). Any other
attributable costs (including interest) for bringing the assets to its
working condition for its intended use are capitalized.
(ii) Substantial expenditure on System Software Development is treated
as intangible asset.
(iii) Treatment of Expenditure during the construction period:
The expenditure incurred during the period of construction (including
cost of trial runs) is debited to the capital work-in- progress and on
completion the costs are allocated to the respective fixed assets.
(c) Investments:
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of investments. Current investments are stated at cost or
fair value whichever is lower. Cost is determined on a weighted average
basis.
(d) Inventories:
Inventories are valued at cost or net realisable value; whichever is
lower Further the cost is determined on following basis:
(i) Raw material : Imported and indigenous raw material on weighted
average basis for Chemical division and on FIFO basis for other
divisions.
(ii) Stores & Spares and packing material : At weighted average cost.
(iii) Material-in-process : The cost includes direct costs and
appropriate overheads.
(iv) Finished goods : Cost includes direct cost, related overheads and
excise duty.
(v) By Product : Estimated Net Realisable Value.
(e) Sales:
(i) Domestic Sales are accounted on despatch of products and are stated
net of returns.
(ii) Export Sales in foreign currency are accounted at the exchange
rate prevailing on the date of Bill of Lading.
(iii) Sales are inclusive of services, excise duty, duty drawbacks but
exclude sales tax/VAT.
(f) Insurance Claims:
Insurance Claims are recognized on the basis of claims preferred with
Insurance Company after careful evaluation.
(g) Foreign Currency Transactions:
(i) Foreign currency transactions are accounted at the rate prevailing
on the date of the transaction. Monetary items denominated in foreign
currency are translated at the exchange rate prevailing on the last day
of the accounting period. In respect of items covered by forward
exchange contracts the premium or discount arising at the inception of
such a forward exchange contract is amortised as expense or income over
the life of the contract. Any profit or loss arising on cancellation or
renewal of such a forward exchange contract is recognized as income or
expense for the period.
(ii) Gain or loss arising out of translation/conversion is taken credit
for or charged to the Profit and Loss Account.
(h) Depreciation:
(i) Depreciation on Fixed Assets is provided on Straight Line Method
except for Chemical Division where it is provided on Written Down Value
method for all assets other than Plant & Machinery added after 1st
April 1987 which are provided on Straight Line Method at the rates and
in the manner specified in Schedule XIV to the Companies Act, 1956.
(ii) Depreciation calculated in (i) above for Chemical Division
includes additional charge of Depreciation, on account of revaluation
of certain Fixed Assets as at 31st March 1986. However, the difference
between the depreciation on revalued book value of Fixed Assets and the
original cost is withdrawn from the Revaluation Reserve and credited to
the Profit and Loss Account.
(iii) Intangible asset are amortised over a period of ten years.
(iv) Cost of leasehold land is amortised over the lease period.
(i) Impairment:
The carrying cost of assets is reviewed at each Balance Sheet date for
any indication of impairment based on internal/external factors. An
impairment loss is recognised whenever the carrying amount of assets
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to the present
value at the weighted average cost of capital.
Post impairment depreciation is provided on the revised carrying value
of the assets over its remaining useful life.
(j) Employee Benefits:
(i) Defined Contribution Plan: Companys contributions paid/payable
during the year to Provident Fund, Employees Superannuation Fund,
Gratuity, ESIC and Labour Welfare Fund are recognised in the Profit and
Loss Account. There are no other obligations other than the
contribution payable to the respective trusts.
(ii) Defined Benefit Plan: Companys liabilities towards gratuity and
leave encashment are determined using the projected unit credit method
which considers each period of service as giving rise to an additional
unit of benefit entitlement and measures each unit separately to build
up the final obligation. Past services are recognised on a straight
line basis over the average period until the amended benefits become
vested. Actuarial gain and losses are recognised immediately in the
statement of Profit and Loss Account as income or expense. Obligation
is measured at the present value of estimated future cash flows using a
discounted rate that is determined by reference to market yields at the
Balance Sheet date on Government bonds where the currency and terms of
the Government bonds are consistent with the currency and estimated
terms of the defined benefit obligation.
(k) Taxation:
(i) Income tax expense comprises current tax, fringe benefit tax and
deferred tax charge or credit. The deferred tax charged or credit is
recognised using prevailing enacted or substantively enacted tax rates.
Where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets. Other deferred tax assets are recognised
only to the extent there is reasonable certainty of realisation in
future. Deferred tax assets/liabilities are reviewed as at each Balance
Sheet date based on developments during the year and available case
laws, to reassess realisation/liabilities.
(ii) Deferred tax in respect of timing differences which reverse after
tax holiday period, are recognised in the year in which the timing
differences originate.
(l) Contingencies/Provisions:
Provision is recognised when the Company has a present obligation as a
result of past event; it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation;
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article