Mar 31, 2018
1. Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these separate Financial Statements of Chandni Textiles Engineering Industries Ltd. These policies have been consistently applied to all the period presented, unless otherwise stated.
a) Basis of preparation
(i) Compliance with Ind AS
These Financial Statement have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 as a going concern on an accrual basis. The Financial Statements up to year ended 31 March 2017 were prepared earlier in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act.
These Financial Statements are the first Financial Statements of the Company under Ind AS and the transition was carried out in accordance with Ind AS 101, âFirst time adoption of Indian Accounting Standardsâ. Previous periods have been restated to comply with Ind AS requirements. In accordance with Ind AS 101, the Company has presented a reconciliation from the presentation of financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (âPrevious GAAPâ) to Ind AS of the Companyâs financial position, financial performance and cash flows.
(ii) Historical cost convention
The Financial Statements have been prepared on a historical cost basis, except for the following:
- Equity Investments in entities are measured at fair value;
- Certain financial assets & liabilities are measured at fair value;
- Defined Benefit Plans - plan assets are measured at fair value.
(iii) Use of estimates
In preparing the Financial Statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial Statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period the same is determined.
b) Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realised within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle
- It is held primarily for the purpose of trading
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.
c) Fair value measurement
The Company measures financial instruments, at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of un-observable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 âValuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 âValuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.This note summarizes accounting policy for a fair value. Other fair value related disclosures are given in the relevant notes.
d) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. Revenue is measured inclusive of Excise duty/Service tax and net of indirect taxes, returns and discounts.
Sale of goods
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Rental Income
Rental income from the property leased under the leave and license agreement is recognized as income on a straight-line basis over the period of contractual lease terms. The respective leased assets are included in the balance sheet based on their nature.
Interest Income
Revenue from interest is recognized on accrual basis and determined by contractual rate of interest.
Dividend Income
Dividend income is stated at gross and is recognized when right to receive payment is established.
e) Transactions in Foreign Currency
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Premium on forward cover contracts, if any, in respect of imports is charged to profit & loss account over the period of contract. All monetary assets and liabilities as at the Balance sheet date, not covered by forward contracts are restated at the applicable exchange rates prevailing on that date. All exchange differences arising on transactions, not covered by forward contracts, are charged to Profit & Loss Account.
f) Leases
As a lessee:
Leases of property, plant and equipment where the company, as lessee, has substantially all the risks and rewards of ownership, are classified as finance leases. Assets under finance lease are capitalized at the inception, at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increases.
As a lessor:
Lease income from operating leases where the Company is a lessor is recognized as income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
g) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash in hand, cash at bank and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
h) Trade receivables
Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
i) Inventories
Inventories are valued at the lower of cost and net realizable value.Costs incurred in bringing each product to its present location and condition are accounted for as follows:
- Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.
- Finished goods: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity.
- Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.
- Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
j) Property, Plant and Equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical Cost represents direct expenses incurred on acquisition or construction of the assets and the share of indirect expenses relating to construction allocated in proportion to the direct cost involved.
Subsequent costs are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Capital work-in-progress comprises the cost of plant and equipment that are not yet ready for their intended use on the reporting date.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at April 01, 2016 measured as per the previous GAAP.
Depreciation methods, estimated useful lives and residual value
Depreciation on property, plant and equipment other than freehold, is provided on âStraight Line Methodâ based on useful life as prescribed under Schedule II of the Companies Act 2013.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss
k) Intangible Assets
Intangible Assets are stated at cost less accumulated amortization and net of impairments, if any. An intangible asset is recognised if it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company and its cost can be measured reliably.
Intangible assets are amortized on straight line basis over their estimated useful lives.An intangible asset is derecognized on disposal, or when no future economic benefits are expected to arise from continued use of the asset. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in the Statement of Profit and Loss when the asset is derecognized.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets recognised as at April 01, 2016 measured as per the previous GAAP.
l) Financial instruments
Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial assets at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss directly attributable transaction costs. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss.
Classification
- Cash and Cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits with banks and are short-term balances (with an original maturity of three months or less from the date of acquisition).
- Debt Instruments
The Company classifies its debt instruments as subsequently measured at amortised cost, fair value through Other Comprehensive Income or fair value through profit or loss based on its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
(i) Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest income from these financial assets is included as a part of the Companyâs income in the Statement of Profit and Loss using the effective interest rate method.
(ii) Financial assets at fair value through Other Comprehensive Income (FVOCI)
Financial assets are subsequently measured at fair value through Other Comprehensive Income if these financial assets are held for collection of contractual cash flows and for selling the financial assets, where the assetsâ cash flows represent solely payments of principal and interest. Movements in the carrying value are taken through Other Comprehensive Income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are recognised in the Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from Other Comprehensive Income to the Statement of Profit and Loss. Interest income on such financial assets is included as a part of the Companyâs income in the Statement of Profit and Loss using the effective interest rate method.
(iii) Financial assets at fair value through profit or loss (FVTPL)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on such debt instrument that is subsequently measured at FVTPL as well as interest income is recognised in the Statement of Profit and Loss.
Equity Instruments
The Company subsequently measures all equity investments (other than the investment in subsidiaries which are measured at cost) at fair value. On and from the date of transition to Ind AS, the company has subsequently measured all equity instruments at fair value through profit or loss.
Dividends from such investments are recognised in the Statement of Profit and Loss as other income when the Companyâs right to receive payment is established.
Derecognition
A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset. Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.
Financial Liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value, plus, in the case of financial liabilities not at fair value through profit or loss directly attributable transaction costs.
Subsequent measurement
After initial recognition, financial liabilities that are not carried at fair value throughprofit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are derecognised, and through the amortisation process.
Derecognition
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
Impairment of financial assets
The Company assesses, at each reporting date, whether a financial asset or a group of financial assets is impaired. Ind AS-109 on Financial Instruments, requires expected credit losses to be measured through a loss allowance. For trade receivables only, the Company recognises expected lifetime losses using the simplified approach permitted by Ind AS-109, from initial recognition of the receivables. For other financial assets (not being equity instruments or debt instruments measured subsequently at FVTPL) the expected credit losses are measured at the 12 month expected credit losses or an amount equal to the lifetime expected credit losses if there has been a significant increase in credit risk since initial recognition.
m) Trade and Other Payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortized cost using the effective interest method.
n) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of respective assets during the period of time that is required to complete and prepare the asset for its intended use. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.
o) Employee Benefits
(i) Short-term obligations
The costs of all short-term employee benefits (that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service) are recognised during the period in which the employee renders the related services. The accruals for employee entitlements of benefits such as salaries, bonuses and annual leave represent the amount which the Company has a present obligation to pay as a result of the employeesâ services and the obligation can be measured reliably. The accruals have been calculated at undiscounted amounts based on current salary levels at the Balance Sheet date.
(ii) Post-employment obligations
The Company operates the following post-employment schemes:
Gratuity Fund -
The Company makes annual contributions to gratuity funds administered by the Life Insurance Corporation of India. The gratuity plan provides for lump sum payment to vested employees on retirement, death or termination of employment of an amount based on the respective employeeâs last drawn salary and tenure of employment. The Company accounts for the net present value of its obligations for gratuity benefits, based on an independent actuarial valuation, determined on the basis of the projected unit credit method, carried out as at the Balance Sheet date. The obligation determined as aforesaid less the fair value of the plan assets is reported as a liability or assets as of the reporting date. Actuarial gains and losses are recognised immediately in the Other Comprehensive Income and reflected in retained earnings and will not be reclassified to the Statement of Profit and Loss.
Provident Fund -
The Company pays provident fund contributions to a fund administered by Government Provident Fund Authority. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
p) Tax expenses
(i) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit before taxâ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted, by the end of the reporting period.
(ii) Deferred Tax
Deferred Income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the separate Financial Statements.
Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Current and Deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other Comprehensive Income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
Minimum Alternate Tax is accounted for in accordance with tax laws which give rise to future economic benefits in the form of tax credit against which future income tax liability is adjusted and is recognized as deferred tax asset in the balance sheet.
q) Earnings per share
Basic earnings per share is computed by dividing the profit or loss after tax by the weighted average number of equity shares outstanding during the year including potential equity shares on compulsory convertible debentures. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share.
r) Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assetâs carrying amount exceeds its recoverable amount. Assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period. In case of such reversal, the carrying amount of the asset is increased so as not to exceed the carrying amount that would have been determined had there been no impairment loss.
s) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present legal or statutory obligation or constructive obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.
Contingent assets where it is probable that future economic benefits will flow to the Company are not recognised but disclosed in the Financial Statements. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.
Mar 31, 2015
(1) Basis of Accounting
The financial statements are prepared on historical cost convention on
accrual basis in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 2013.
(2) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(i) Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Sales revenue is net
of sales return, discounts and rebates.
(ii) Interest
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
(iii) Rent
Revenue is recognized on accrual basis.
(3) Fixed Assets
Tangible Assets-Tangible Assets are stated at cost net of recoverable
taxes less accumulated depreciation. All costs including financing
costs till commencement of commercial production are capitalized.
(4) Depreciation
Depreciation on Tangible Assets (other than Freehold land on which no
depreciation is charged) is provided to the extent of depreciable
amount on straight line method based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013. Depreciation on
additions/deductions during the year is provided on pro-rata basis.
(5) Investments
Long term investments are stated at cost.
(6) Inventories
Stock of raw materials/components and traded goods are valued at cost.
Stock of finished goods is valued at cost or market value whichever is
lower. Stores and spares are valued at cost. The cost of finished goods
includes materials costs, conversion costs and other costs incurred in
bringing the goods to the present location and condition.
(7) Transactions in Foreign Currency
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Premium on forward cover contracts, if any, in respect of
imports is charged to profit & loss account over the period of
contract. All monetary assets and liabilities as at the Balance sheet
date, not covered by forward contracts are restated at the applicable
exchange rates prevailing on that date. All exchange differences
arising on transactions, not covered by forward contracts, are charged
to Profit & Loss Account.
(8) Employee Benefits
(i) Short Term Employee Benefits:
Short Term Employee Benefits in the form of bonus is recognized as an
expense in the Profit & Loss Account of the year in which the related
services is rendered.
(ii) Long Term Employee Benefits:-
(a) Defined Contribution Plan
The Company has Defined Contribution plans for post employment benefits
in the form of Provident Fund and Pension Scheme administered through
the Government of India.
Under the Provident Fund Plan and Pension Scheme, the Company
contributes to a Government administered provident fund on behalf of
its employees and has no further obligation beyond making its
contribution.
The Company's contributions to the above funds are charged to revenue
every year.
(b) Defined Benefit Plan
The Company has a Defined Benefit plan namely Gratuity for all its
employees. Liability for Defined Benefit Plan is provided on the basis
of valuation, actuarially determined, by an independent agency namely,
Life Insurance Corporation of India. Liability for Defined Benefit Plan
is recognized as an expense in the Profit & Loss Account for the year
in which employee has rendered services. The expense is recognized at
the present value of the amounts payable determined using actuarial
valuation techniques.
(9) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset. Other borrowing costs are recognized as
an expense in the year in which they are incurred.
(10) Taxation
Tax expenses comprise current tax and deferred tax charge/credit. The
deferred tax charge / credit are recognized using current tax rates.
Deferred tax assets/ liabilities are reviewed as at each Balance Sheet
date.
(11) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(12) Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the cash generating unit to
which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. If at the Balance Sheet
date, there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
depreciated historical cost.
Mar 31, 2014
(1) Basis of Accounting
The financial statements are prepared on historical cost convention on
accrual basis in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956.
(2) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(I) Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer.
Sales revenue is net of sales return, discounts and rebates.
(ii) Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
(iii) Rent
Revenue is recognized on accrual basis.
(3) Fixed Assets
Fixed Assets are stated at cost (net of modvat and VAT wherever
applicable) less accumulated depreciation. All costs including
financing costs till commencement of commercial production are
capitalised.
(4) Depreciation
Depreciation on Fixed Assets (other than Freehold land on which no
depreciation is charged) is provided on straight line basis at the
rates prescribed under schedule XIV to the Companies Act, 1956.
Depreciation on additions/deductions during the year is provided on
pro-rata basis.
(5) Investments
Long term investments are stated at cost.
(6) Inventories
Stock of raw materials/components and traded goods are valued at cost.
Stock of finished goods is valued at cost or market value whichever is
lower. Stores and spares are valued at cost. The cost of finished goods
includes materials costs, conversion costs and other costs incurred in
bringing the goods to the present location and condition.
(7) Transactions in Foreign Currency
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Premium on forward cover contracts, if any, in respect of
imports is charged to profit & loss account over the period of
contract. All monetary assets and liabilities as at the Balance sheet
date, not covered by forward contracts are restated at the applicable
exchange rates prevailing on that date. All exchange differences
arising on transactions, not covered by forward contracts, are charged
to Profit & Loss Account.
(8) Employee Benefits
(i) Short Term Employee Benefits:
Short Term Employee Benefits in the form of bonus is recognized as an
expense in the Profit & Loss Account of the year in which the related
services is rendered.
(ii) Long Term Employee Benefits:-
(a) Defined Contribution Plan
The Company has Defined Contribution plans for post employment benefits
in the form of Provident Fund and Pension Scheme administered through
the Government of India.
Under the Provident Fund Plan and Pension Scheme, the Company
contributes to a Government administered provident fund on behalf of
its employees and has no further obligation beyond making its
contribution.
The Company''s contributions to the above funds are charged to revenue
every year.
(b) Defined Benefit Plan
The Company has a Defined Benefit plan namely Gratuity for all its
employees. Liability for Defined Benefit Plan is provided on the basis
of valuation, actuarially determined, by an independent agency namely,
Life Insurance Corporation of India. Liability for Defined Benefit Plan
is recognized as an expense in the Profit & Loss Account for the year
in which employee has rendered services. The expense is recognized at
the present value of the amounts payable determined using actuarial
valuation techniques.
(9) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset. Other borrowing costs are recognized as
an expense in the year in which they are incurred.
(10) Taxation
Tax expenses comprises current tax and deferred tax charge/credit. The
deferred tax charge / credit is recognised using current tax rates.
Deferred tax assets/ liabilities are reviewed as at each Balance Sheet
date.
(11) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(12) Impairment Of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the cash generating unit to
which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. If at the Balance Sheet
date, there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
depreciated historical cost.
Mar 31, 2012
(1) Basis of Accounting
The financial statements are prepared on historical cost convention on
accrual basis in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956.
(2) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(i) Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Sales revenue is net
of sales return, discounts and rebates.
(ii) Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
(iii) Rent
Revenue is recognized on accrual basis.
(3) Fixed Assets
Fixed Assets are stated at cost (net of modvat and VAT wherever
applicable) less accumulated depreciation. All costs including
financing costs till commencement of commercial production are
capitalised.
(4) Depreciation
Depreciation on Fixed Assets (other than Freehold land on which no
depreciation is charged) is provided on straight line basis at the
rates prescribed under schedule XIV to the Companies Act, 1956.
Depreciation on additions/deductions during the year is provided on
pro-rata basis.
(5) Investments
Long term investments are stated at cost.
(6) Inventories
Stock of materials and traded goods are valued at cost. Stock of
finished goods is valued at cost or market value whichever is lower.
Stores and spares are valued at cost. The cost of finished goods
includes materials costs, conversion costs and other costs incurred in
bringing the goods to the present location and condition.
(7) Transactions in Foreign Currency
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Premium on forward cover contracts, if any, in respect of
imports is charged to profit & loss account over the period of
contract. All monetary assets and liabilities as at the Balance sheet
date, not covered by forward contracts are reinstated at the applicable
exchange rates prevailing on that date. All exchange differences
arising on transactions, not covered by forward contracts, are charged
to Profit & Loss Account.
(8) Employee Benefits
(i) Short Term Employee Benefits:
Short Term Employee Benefits in the form of bonus is recognized as an
expense in the Profit & Loss Account of the year in which the related
services is rendered.
(ii) Long Term Employee Benefits:-
(a) Defined Contribution Plan
The Company has Defined Contribution plans for post employment benefits
in the form of Provident Fund and Pension Scheme administered through
the Government of India.
Under the Provident Fund Plan and Pension Scheme, the Company
contributes to a Government administered provident fund on behalf of
its employees and has no further obligation beyond making its
contribution.
The Company's contributions to the above funds are charged to revenue
every year.
(b) Defined Benefit Plan
The Company has a Defined Benefit plan namely Gratuity for all its
employees. Liability for Defined Benefit Plan is provided on the basis
of valuation actuarially determined, by an independent agency namely,
Life Insurance Corporation of India.
Liability for Defined Benefit Plan is recognized as an expense in the
Profit & Loss Account for the year in which employee has rendered
services. The expense is recognized at the present value of the amounts
payable determined using actuarial valuation techniques.
(9) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset. Other borrowing costs are recognized as
an expense in the year in which they are incurred.
(10) Taxation
Tax expenses comprises current tax and deferred tax charge/credit. The
deferred tax charge/credit is recognised using current tax rates.
Deferred tax assets/liabilities are reviewed as at each Balance Sheet
date.
(11) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(12) Miscellaneous Expenditure
Preliminary expenses are amortised over a period of 10 years.
Amalgamation expenses are amortised over a period of 5 years.
(13) Impairment Of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the cash generating unit to
which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. If at the Balance Sheet
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject
Mar 31, 2011
(1) Basis of Accounting
The financial statements are prepared on historical cost convention on
accrual basis in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956.
(2) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(i) Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Sales revenue is net
of sales return, discounts and rebates.
(ii) Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
(iii) Rent
Revenue is recognized on accrual basis.
(3) Fixed Assets
Fixed Assets are stated at cost (net of modvat and VAT wherever
applicable) less accumulated depreciation. All costs including
financing costs till commencement of commercial production are
capitalised.
(4) Depreciation
Depreciation on Fixed Assets (other than Freehold land on which no
depreciation is charged) is provided on straight line basis at the
rates prescribed under schedule XIV to the Companies Act, 1956.
Depreciation on additions/deductions during the year is provided on
pro-rata basis.
(5) Investments
Long term investments are stated at cost.
(6) Inventories
Stock of materials, traded goods and packing materials are valued at
cost. Stock of finished goods is valued at cost or market value
whichever is lower. Stores and spares are valued at cost. The cost of
finished goods includes materials costs, conversion costs and other
costs incurred in bringing the goods to the present location and
condition.
(7) Transactions in Foreign Currency
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Premium on forward cover contracts, if any, in respect of
imports is charged to profit & loss account over the period of
contract. All monetary assets and liabilities as at the Balance sheet
date, not covered by forward contracts are reinstated at the applicable
exchange rates prevailing on that date. All exchange differences
arising on transactions, not covered by forward contracts, are charged
to Profit & Loss Account.
(8) Employee Benefits
(i) Short Term Employee Benefits:
Short Term Employee Benefits in the form of bonus is recognized as an
expense in the Profit & Loss Account of the year in which the related
services is rendered.
(ii) Long Term Employee Benefits:-
(a) Defined Contribution Plan
The Company has Defined Contribution plans for post employment benefits
in the form of Provident Fund and Pension Scheme administered through
the Government of India.
Under the Provident Fund Plan and Pension Scheme, the Company
contributes to a Government administered provident fund on behalf of
its employees and has no further obligation beyond making its
contribution.
The Company's contributions to the above funds are charged to revenue
every year.
(b) Defined Benefit Plan
The Company has a Defined Benefit plan namely Gratuity for all its
employees. Liability for Defined Benefit Plan is provided on the basis
of valuation, actuarially determined, by an independent agency namely,
Life Insurance Corporation of India. Liability for Defined Benefit Plan
is recognized as an expense in the Profit & Loss Account for the year
in which employee has rendered services. The expense is recognized at
the present value of the amounts payable determined using actuarial
valuation techniques.
(9) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset. Other borrowing costs are recognized as
an expense in the year in which they are incurred.
(10) Taxation
Tax expenses comprises current tax and deferred tax charge/credit. The
deferred tax charge / credit is recognised using current tax rates.
Deferred tax assets/ liabilities are reviewed as at each Balance Sheet
date.
11) Provisions, Contingent Liabilities And Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(12) Miscellaneous Expenditure
Preliminary expenses are amortised over a period of 10 years.
Amalgamation expenses are amortised over a period of 5 years.
(13) Impairment Of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the cash generating unit to
which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. If at the Balance Sheet
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
Mar 31, 2010
(1) Basis Of Accounting
The financial statements are prepared on historical cost convention on
accrual basis in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956.
(2) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured.
(i) Sale of goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Sales revenue is net
of sales return, discounts and rebates.
(ii) Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
(iii) Rent
Revenue is recognized on accrual basis.
(3) Fixed Assets
Fixed Assets are stated at cost (net of modvat and VAT wherever
applicable) less accumulated depreciation. All costs including
financing costs till commencement of commercial production are
capitalised.
(4) Depreciation
Depreciation on Fixed Assets (other than Freehold land on which no
depreciation is charged) is provided on straight line basis at the
rates prescribed under schedule XIV to the Companies Act, 1956.
Depreciation on additions/deductions during the year is provided on
pro-rata basis.
(5) Investment
Long term investments are stated at cost.
(6) Inventories
Stock of materials.traded goods and packing materials are valued at
cost. Stock of finished goods are valued at cost or market value
whichever is lower. Stores and spares are valued at cost. The cost of
finished goods includes materials costs, conversion costs and other
costs incurred in bringing the goods to the present location and
condition.
(7) Transactions In Foreign Currency
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Premium on forward cover contracts, if any, in respect of
imports is charged to profit & loss account over the period of
contract. All monetary assets and liabilities as at the Balance sheet
date, not covered by forward contracts are reinstated at the applicable
exchange rates prevailing on that date. All exchange differences
arising on transactions, not covered by forward contracts, are charged
to Profit & Loss Account.
(8) Employee Benefits
(i) Short Term Employee Benefits :
Short Term Employee Benefits in the form of bonus is recognized as an
expense in the Profit & Loss Account of the year in which the related
services is rendered.
(ii) Long Term Employee Benefits :-
(a) Defined Contribution Plan
The Company has Defined Contribution plans for post employment benefits
in the form of Provident Fund administered through Government of India.
Under the Provident Fund Plan, the Company contributes to a Government
administered provident fund on behalf of its employees and has no
further obligation beyond making its contribution.
The Companys contributions to the above funds are charged to revenue
every year.
(b) Defined Benifit Plan
The Company has a Defined Benefit plan namely Gratuity for all its
employees.
The Company operates gratuity plan wherein every employee is entitled
to the benefit as per the scheme of the Company, for each completed
year of serivce. The same is payable on termination of service, or
retirement, whichever is earlier. The benefit vests only after five
years of continuous service. Liability for Defined Benefit Plan is
provided on the basis of valuations, as at the Balance Sheet date.
(9) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset. Other borrowing costs are recognized as
an expense in the year in which they are incurred.
(10) Taxation
Tax expenses comprises current tax and deferred tax charge/credit. The
deferred tax charge / credit is recognised using current tax rates.
Deferred tax assets/ liabilities are reviewed as at each Balance Sheet
date.
(11) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(12) Miscellaneous Expenditure
Preliminary expenses are amortised over a period of 10 years.
Amalgamation expenses are amortised over a period of 5 years.
13) Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the cash generating unit to
which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. If at the Balance Sheet
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
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