Mar 31, 2015
1.1 Basis of preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention, on accrual basis in accordance with Generally Accepted
Accounting Principle (GAAP), and comply with the Companies (Accounting
Standard) Rules 2006, the relevant provisions of the Companies Act,
2013.
1.2 Use of Estimates
The preparation of financial statements requires estimates and
assumptions which affect the reporting amount of assets, liabilities,
revenues and expenses of the reporting period. The difference between
the actual results and estimates are recognized in the period in which
the results are known or materialized.
1.3 Tangible Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss (if any). Cost comprises of purchase price, non
refundable duties, levies and any directly attributable cost of
bringing the assets to its working condition for the intended use.
1.4 Intangible Fixed Assets
Intangible Assets are stated at cost of acquisition less accumulated
amortization and impairment loss (if any). Cost of acquisition
comprises of purchase price, non refundable duties, levies and any
directly attributable cost of bringing the intangible assets to its
working condition for the intended use.
1.5 Depreciation and Amortization
(i) Tangible Fixed Assets
Depreciation on fixed assets is provided on Straight Line Method in
accordance with the useful life specified in schedule II of the
Companies Act, 2013.
Lease premium on leasehold land is written off over the period of lease
except premium paid for acquiring leasehold land for lease period
exceeding 99 years.
(ii) Intangible Fixed Assets
The intangible fixed assets are amortized over useful life of assets
specified under Schedule II of Companies Act, 2013.
(ii) Write Offs of Fixed Assets
The Company had depreciated fixed assets at rates specified under
Schedule XIV of Companies Act, 1956 till 31 March 2014. However,
Schedule II of Companies Act, 2013 requires company to depreciate its
assets over its useful-life with effect from 1 April 2014. Accordingly,
the company has calculated useful lives of all assets as on 1 April 2014
and depreciated their written down value on their remaining useful
lives. However, the written down values of assets, whose useful life has
become Nil as on 1 April 2014, are required to be adjusted towards
reserves and surplus. The Company has adjusted Rs. 8, 67, 28,201/-
towards reserves and surplus of the company. The details of which are
available in Note No 2 and Note No 11 to these financial statements. The
change in rate of depreciation or useful life of an asset is change in
accounting estimate and is therefore applied prospectively with effect
from 1 April 2014. The above write off is of exceptional nature and
warranted due to change in legal provisions. The same write off is not
expected to recur in foreseeable future.
1.6 Inventories
Cost of inventories comprises of cost of purchase and other costs
incurred in bringing them to their
respective present location and condition.
(i) Raw Materials are valued at lower of cost (net of refundable taxes
and duties) and net realizable values. Cost is derived on FIFO basis.
(ii) Work-in-Progress is valued at lower of conversion cost and net
realizable values. Cost are derived on Standard Cost basis
(iii) Stores, Spares and Packing Materials are valued at cost.
1.7 Revenue Recognition
(i) Revenue from sales is recognized at the point of dispatch to the
customers when risk and reward stand transferred to the customers.
Sales include excise duty but exclusive of sales tax.
(ii) Dividend income is recognized when the company's right to receive
the dividend is established.
(iii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and rate applicable.
1.8 Employee Benefits
(i) Short term Benefits
Short-term employee benefits are recognized as expenses in the
Statement of Profit and Loss of the year in which the related service
is rendered at the undiscounted amount as and when it accrues.
(ii) Defined Contribution Plans
Defined contribution plans are those plans where the Company pays fixed
contribution to a fund managed by independent trusts. Contributions are
paid in return for service rendered by employees during the year. The
company has no legal or constructive obligation to pay further
contributions if the fund does not hold sufficient assets to pay
employee benefits. The Company provides Provident Fund facility to
employees. The contributions are expenses as they are incurred in line
with the treatment of wages and salaries.
(iii) Defined Benefit Plans
The Company provides Gratuity and Leave Encashment Benefits to its
employees. Gratuity liabilities are funded through a separate trust
with its funds managed by Life Insurance Corporation of India. The
liability towards leave encashment is not funded. The present value of
these defined benefit obligations are ascertained by an independent
actuarial valuation as per requirement of Accounting Standards 15 -
Employee Benefits. The liability recognized in the balance sheet is the
present value of the defined benefit obligations on the balance sheet
date less the fair value of the plan assets (for funded plans),
together with adjustments for unrecognized past service costs. All
actuarial gain and losses are recognized in the Statement of Profit and
Loss in full in the year in which they occur.
1.9 Provision for Taxes on Income
Tax expenses include current tax and deferred tax. Provision for
current tax is made after taking into consideration benefits admissible
under the provisions of the Income Tax Act, 1961. Deferred tax
resulting from timing difference between taxable and accounting income
is accounted for using the tax rates and lows that are enacted or
substantively enacted as on the balance sheet date. Deferred tax asset
is recognized and carried forward only to the extent that there is a
virtual certainty that the asset will be realized in future.
1.10 Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized when there is a present obligation as a result
of past event that probably requires an outflow of resources and
reliable estimate can be made of the amount of the obligation.
Disclosure for Contingent Liabilities is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. No provision is recognized or
disclosure for Contingent Liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
1.11 Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior period
is reversed if there has been a change in the estimate of recoverable
amount.
1.12 Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded on initial
recognition using the exchange rates prevailing on the date of the
transaction or that approximates the actual rate at the date of
transaction. Monetary assets and liabilities denominated in foreign
currencies at the year-end are restated at rates of exchange prevailing
at the balance sheet date. Any income or expenses on account of
exchange difference either on settlement or on translation is
recognized in the Statement of Profit and Loss. Premium or discount on
forward contracts for hedging foreign currency transactions are
amortized and recognized in the statement of profit and loss over the
period of the contract.
1.13 Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as Current investments. All other
investments are classified as long- term investments. Current
Investments are carried at lower of cost and fair value. Long Term
Investments are stated at cost. However, Provision for diminution in
the value of long-term investment is made only if such a decline is
other than temporary.
1.14 Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the Statement of Profit and Loss.
Mar 31, 2014
1.1 Basis of preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention, on accrual basis in accordance with Generally Accepted
Accounting Principle (GAAP), and comply with the Companies (Accounting
Standard) Rules 2006, the relevant provisions of the Companies Act 1956
to the extent applicable and the provisions of the Companies Act, 2013
to the extent notified.
1.2 Use of Estimates
The preparation of financial statements requires estimates and
assumptions which affect the reporting amount of assets, liabilities,
revenues and expenses of the reporting period. The difference between
the actual results and estimates are recognized in the period in which
the results are known or materialized.
1.3 Tangible Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss (if any). Cost comprises of purchase price, non
refundable duties, levies and any directly attributable cost of
bringing the assets to its working condition for the intended use.
1.4 Intangible Fixed Assets
Intangible Assets are stated at cost of acquisition less accumulated
amortization and impairment loss (if any). Cost of acquisition
comprises of purchase price, non refundable duties, levies and any
directly attributable cost of bringing the intangible assets to its
working condition for the intended use.
1.5 Depreciation and Amortization
(i) Tangible Fixed Assets
Depreciation on fixed assets is provided on Straight Line Method in
accordance with the rates and in manner specified in schedule XIV of
the Companies Act, 1956.
Lease premium on leasehold land is written off over the period of lease
except premium paid for acquiring leasehold land for lease period
exceeding 99 years.
(ii) Intangible Fixed Assets
Computer Software is amortized over a period of 10 years on pro-rata
basis commencing from the year in which software is put to use.
1.6 Inventories
Cost of inventories comprises of cost of purchase and other costs
incurred in bringing them to their respective present location and
condition.
(i) Raw Materials are valued at lower of cost (net of refundable taxes
and duties) and net realizable values. Cost is derived on FIFO basis.
(ii) Work-in-Progress is valued at lower of conversion cost and net
realizable values. Cost are derived on Standard Cost basis
(iii) Stores, Spares and Packing Materials are valued at cost.
1.7 Revenue Recognition
(i) Revenue from sales is recognized at the point of dispatch to the
customers when risk and reward stand transferred to the customers.
Sales include excise duty but exclusive of sales tax.
(ii) Dividend income is recognized when the company''s right to receive
the dividend is established.
(iii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and rate applicable.
1.8 Employee Benefits
(i) Short term Benefits
Short-term employee benefits are recognized as expenses in the
Statement of Profit and Loss of the year in which the related service
is rendered at the undiscounted amount as and when it accrues.
(ii) Defined Contribution Plans
Defined contribution plans are those plans where the Company pays fixed
contribution to a fund managed by independent trusts. Contributions are
paid in return for service rendered by employees during the year. The
company has no legal or constructive obligation to pay further
contributions if the fund does not hold sufficient assets to pay
employee benefits. The Company provides Provident Fund facility to
employees. The contributions are expenses as they are incurred in line
with the treatment of wages and salaries.
(iii) Defined Benefit Plans
The Company provides Gratuity and Leave Encashment Benefits to its
employees. Gratuity liabilities are funded through a separate trust
with its funds managed by Life Insurance Corporation of India. The
liability towards leave encashment is not funded. The present value of
these defined benefit obligations are ascertained by an independent
actuarial valuation as per requirement of Accounting Standards 15 -
Employee Benefits. The liability recognized in the balance sheet is the
present value of the defined benefit obligations on the balance sheet
date less the fair value of the plan assets (for funded plans),
together with adjustments for unrecognized past service costs. All
actuarial gain and losses are recognized in the Statement of Profit and
Loss in full in the year in which they occur.
1.9 Provision for Taxes on Income
Tax expenses include current tax and deferred tax. Provision for
current tax is made after taking into consideration benefits admissible
under the provisions of the Income Tax Act, 1961. Deferred tax
resulting from timing difference between taxable and accounting income
is accounted for using the tax rates and lows that are enacted or
substantively enacted as on the balance sheet date. Deferred tax asset
is recognized and carried forward only to the extent that there is a
virtual certainty that the asset will be realized in future.
1.10 Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized when there is a present obligation as a result
of past event that probably requires an outflow of resources and
reliable estimate can be made of the amount of the obligation.
Disclosure for Contingent Liabilities is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. No provision is recognized or
disclosure for Contingent Liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
1.11 Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior period
is reversed if there has been a change in the estimate of recoverable
amount.
1.12 Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded on initial
recognition using the exchange rates prevailing on the date of the
transaction or that approximates the actual rate at the date of
transaction. Monetary assets and liabilities denominated in foreign
currencies at the year-end are restated at rates of exchange prevailing
at the balance sheet date. Any income or expenses on account of
exchange difference either on settlement or on translation is
recognized in the Statement of Profit and Loss. Premium or discount on
forward contracts for hedging foreign currency transactions are
amortized and recognized in the statement of profit and loss over the
period of the contract.
1.13 Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as Current investments. All other
investments are classified as long- term investments. Current
Investments are carried at lower of cost and fair value. Long Term
Investments are stated at cost. However, Provision for diminution in
the value of long-term investment is made only if such a decline is
other than temporary.
1.14 Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the Statement of Profit and Loss.
Mar 31, 2013
1.1 Basis of preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention, on accrual basis in accordance with Generally Accepted
Accounting Principle (GAAP), and comply with the Companies (Accounting
Standard) Rules 2006 and relevant provisions of the Companies Act 1956
to the extent applicable.
1.2 Use of Estimates
The preparation of financial statements requires estimates and
assumptions which affect the reporting amount of assets, liabilities,
revenues and expenses of the reporting period. The difference between
the actual results and estimates are recognized in the period in which
the results are known or materialized.
1.3 Tangible Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss (if any). Cost comprises of purchase price, non
refundable duties, levies and any directly attributable cost of
bringing the assets to its working condition for the intended use.
1.4 Intangible Fixed Assets
Intangible Assets are stated at cost of acquisition less accumulated
amortization and impairment loss (if any). Cost of acquisition
comprises of purchase price, non refundable duties, levies and any
directly attributable cost of bringing the intangible assets to its
working condition for the intended use.
1.5 Depreciation and Amortization (i) Tangible Fixed Assets
Depreciation on fixed assets is provided on Straight Line Method in
accordance with the rates and in manner specified in schedule XIV of
the Companies Act, 1956.
Lease premium on leasehold land is written off over the period of lease
except premium paid for acquiring leasehold land for lease period
exceeding 99 years.
(ii) Intangible Fixed Assets
Computer Software is amortized over a period of 10 years on pro-rata
basis commencing from the year in which software is put to use.
1.6 Inventories
Cost of inventories comprises of cost of purchase and other costs
incurred in bringing them to their respective present location and
condition.
(i) Raw Materials are valued at lower of cost (net of refundable taxes
and duties) and net realizable values. Cost is derived on FIFO basis.
(ii) Work-in-Progress is valued at lower of conversion cost and net
realizable values. Cost are derived
on Standard Cost basis (iii) Stores, Spares and Packing Materials are
valued at cost.
1.7 Revenue Recognition
(i) Revenue from sales is recognized at the point of dispatch to the
customers when risk and reward stand transferred to the customers.
Sales include excise duty but exclusive of sales tax.
(ii) Dividend income is recognized when the company''s right to receive
the dividend is established.
(iii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and rate applicable.
1.8 Employee Benefits
(i) Short term Benefits
Short-term employee benefits are recognized as expenses in the
Statement of Profit and Loss of the year in which the related service
is rendered at the undiscounted amount as and when it accrues.
(ii) Defined Contribution Plans
Defined contribution plans are those plans where the Company pays fixed
contribution to a fund managed by independent trusts. Contributions are
paid in return for service rendered by employees during the year. The
company has no legal or constructive obligation to pay further
contributions if the fund does not hold sufficient assets to pay
employee benefits. The Company provides Provident Fund facility to
employees. The contributions are expenses as they are incurred in line
with the treatment of wages and salaries.
(iii) Defined Benefit Plans
The Company provides Gratuity and Leave Encashment Benefits to its
employees. Gratuity liabilities are funded through a separate trust
with its funds managed by Life Insurance Corporation of India. The
liability towards leave encashment is not funded. The present value of
these defined benefit obligations are ascertained by an independent
actuarial valuation as per requirement of Accounting Standards 15 Â
Employee Benefits. The liability recognized in the balance sheet is the
present value of the defined benefit obligations on the balance sheet
date less the fair value of the plan assets (for funded plans),
together with adjustments for unrecognized past service costs. All
actuarial gain and losses are recognized in the Statement of Profit and
Loss in full in the year in which they occur.
1.9 Provision for Taxes on Income
Tax expenses include current tax and deferred tax. Provision for
current tax is made after taking into consideration benefits admissible
under the provisions of the Income Tax Act, 1961. Deferred tax
resulting from timing difference between taxable and accounting income
is accounted for using the tax rates and lows that are enacted or
substantively enacted as on the balance sheet date. Deferred tax asset
is recognized and carried forward only to the extent that there is a
virtual certainty that the asset will be realized in future.
1.10 Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized when there is a present obligation as a result
of past event that probably requires an outflow of resources and
reliable estimate can be made of the amount of the obligation.
Disclosure for Contingent Liabilities is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. No provision is recognized or
disclosure for Contingent Liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
1.11 Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior period
is reversed if there has been a change in the estimate of recoverable
amount.
1.12 Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded on initial
recognition using the exchange rates prevailing on the date of the
transaction or that approximates the actual rate at the date of
transaction. Monetary assets and liabilities denominated in foreign
currencies at the year-end are restated at rates of exchange prevailing
at the balance sheet date. Any income or expenses on account of
exchange difference either on settlement or on translation is
recognized in the Statement of Profit and Loss.
1.13 Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as Current investments. All other
investments are classified as long- term investments. Current
Investments are carried at lower of cost and fair value. Long Term
Investments are stated at cost. However, Provision for diminution in
the value of long-term investment is made only if such a decline is
other than temporary.
1.14 Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the Statement of Profit and Loss.
Mar 31, 2011
1) CONVENTION :
The financial statements are prepared under the historical cost
convention in accordance with applicable accounting standard and
requirement of the Companies Act, 1956.
2) BASIS OF ACCOUNTING :
The company follows the Mercantile system of Accounting.
3) FIXED ASSETS :
i) Fixed Assets are stated at cost of acquisition and subsequent
improvements including taxes, freight and other incidental expenses
related to acquisition, installation and foundation less accumulated
depreciation (other than leasehold land where no depreciation is
charged).
ii) Costs of fixed assets are net of CENVAT to be set off against
excise payable on sales, irrespective of actual set-of during the year
under review.
iii) Leasehold land will be written off, in the year in which the
respective lease period expires.
4) DEPRECIATION :
i) Depreciation on fixed assets has been provided on SLM method as per
rates specified in AMENDED SCHEDULE-XIV of the Companies Act, 1956 vide
Notification No. GSR: 758(2) dated 16-12-1992 on pro-rata basis.
5) INVENTORIES :
The inventories are valued as under:
i) Stores, Spare parts & Packing material at cost;
ii) Work-in-progress at cost;
iii) The Raw Material has been valued at Lower cost plus expenses or
net realizable Value.
6) IMPORT & EXCISE CENVAT :
i) The purchase cost of raw material & other expenses have been
considered net of cenvat remaining unabsorbed at the year ending;
ii) Costs of fixed assets are net of cenvat, as the said cenvat is to
be set off against excise duties payable in sales.
iii) Value of import includes duties, freight, clearing charges,
expenses incidental to acquisition.
iv) Increase/ decrease in rupee liability at the end of the year in
respect of money borrowed for purchase or construction of fixed assets
consequent to fluctuation in exchange rates are treated as addition/
deduction to the fixed assets.
7) SALES & EXPORTS :
Sales are net of sales rejections for the year under review but
inclusive of excise duty and sales tax. Rejection quantity of the
period under review is not incorporated in Quantitative detail of
Production. Sales rejection of the earlier period is charged to profit
& loss account as sales rejection & shown separately.
8) EXCISE :
Total excise collected, irrespective of net payment in PLA after
adjustment of cenvat, has been considered to work out net income.Excise
and service tax credit receivable are considered as per books of
accounts but irrespective of actual claims lodged with revenue
authorities.
9) WAGES & SALARIES :
Includes PF contribution from employer, salaries to trainees &
apprentices.
10) TAXATION :
Provision for current tax is made on the basis of estimated taxable
income for the period in accordance with the provisions of the income
Tax Act, 1961. Deferred tax is recognized, subject to consideration of
prudence, on timing differences between taxable income and accounting
income for the period that originate in one period and are capable
reversal in one or more subsequent periods.
11) FOREIGN CURRENCY TRANSACTIONS :
Transactions in foreign currencies are recognized at the prevailing
exchange rates on the date of transaction and difference, if any, on
realization date is charged to Profit & Loss Account under the head
Exchange difference account. Unrealized gains and losses on settlement
of foreign currency transactions realized after the year-end are
recognized in the Profit and Loss Account at the rate prevailing at the
year end. Foreign currency transactions relating to acquisition of
fixed assets are adjusted in the cost of the fixed assets.
12) IMPAIRMENT OF ASSETS :
As per the opinion of the management, there being no indication of
impairment of assets, no loss has been recognized on impairment of
assets.
13) RETIREMENT BENEFITS :
i) Contributions to employees Provident Fund remitted to statutory
authority are charged to revenue.
ii) Gratuity benefits wherever applicable are covered by policies taken
with the L.I.C. The premium paid under the scheme is charged to
revenue. However, the company had made provision for gratuity as per
actuarial valuation as required by Accounting Standard à 15.
iii) Liability on leave encashment to employees are provided on
actuarial Valuation Report as required by Accounting Standard à 15.
14) PRELIMINARY EXPENSES :
Preliminary expenses are written off in five equal installments.
Preliminary expenses on public issue are written off in five equal
installments from the year in which Proceeds from the public Issue has
been utilized.
15) PREOPERATIVE EXPENSES (SEZ PROJECT) :
Revenue and Financial Expenses (net of recurring revenue income)
incurrend and to be incurred upto commencement of commercial production
on SEZ project is to be capitalized and will be allocated to the Fixed
Assets on the commencement of the commercial production in SEZ Project.
Mar 31, 2010
1) CONVENTION :
The financial statements are prepared under the historical cost
convention in accordance with applicable accounting standard and
requirement of the Companies Act, 1956.
2) BASIS OF ACCOUNTING :
The company follows the Mercantile system of Accounting.
3) FIXED ASSETS :
i) Fixed Assets are stated at cost of acquisition and subsequent
improvements including taxes, freight and other incidental expenses
related to acquisition, installation and foundation less accumulated
depreciation (other than leasehold land where no depreciation is
charged).
ii) Costs of fixed assets are net of CENVAT to be set off against
excise payable on sales, irrespective of actual set-of during the year
under review.
iii) Leasehold land will be written off, in the year in which the
respective lease period expires.
4) DEPRECIATION:
i) Depreciation on fixed assets has been provided on SLM method as per
rates specified in AMENDED SCHEDULE-XIV of the Companies Act, 1956 vide
Notification No. GSR: 758(2) dated 16-12-1992 on pro-rata basis.
5) INVENTORIES:
The inventories are valued as under:
i) Stores, Spare parts & Packing material at cost;
ii) Work-in-progress at cost;
iii) The Raw Material has been valued at Lower of cost plus expenses or
net realizable Value.
6) IMPORT & EXCISE CENVAT:
i) The purchase cost of raw material & other expenses have been
considered net of cenvat remaining unutilized at the year ending;
ii) Costs of fixed assets are net of cenvat, as the said cenvat is to
be set off against excise duties payable in sales.
iii) Value of import includes duties, freight, clearing charges,
expenses incidental to acquisition.
iv) Increase/ decrease in rupee liability at the end of the year in
respect of money borrowed for purchase or construction of fixed assets
consequent to fluctuation in exchange rates are treated as addition/
deduction to the fixed assets.
7) SALES & EXPORTS:
Sales are net of sales rejections for the year under review but
inclusive of excise duty and sales tax. Rejection quantity of the
period under review is not incorporated in Quantitative detail of
Production. Sales rejection of the earlier period is charged to profit
& loss account as sales rejection & shown separately.
8) EXCISE:
Total excise collected, irrespective of net payment in PLA after
adjustment of cenvat, has been considered to work out net income.Excise
and service tax credit receivable are considered as per books of
accounts but irrespective of actual claims lodged with revenue
authorities.
9) WAGES & SALARIES:
Includes PF contribution from employer, salaries to trainees &
apprentices and administrative charges paid for such PF Contribution.
10) TAXATION:
Provision for current tax is made on the basis of estimated taxable
income for the period in accordance with the provisions of the income
Tax Act, 1961. Deferred tax is recognized, subject to consideration of
prudence, on timing differences between taxable income and accounting
income for the period that originate in one period and are
capablereversal in one or more subsequent periods.
11) FOREIGN CURRENCY TRANSACTIONS :
Transactions in foreign currencies are recognized at the prevailing
exchange rates on the date of transaction and difference, if any, on
realization date is charged to Profit & Loss Account under the head
Exchange difference account. Unrealized gains and losses on settlement
of foreign currency transactions realized after the year-end are
recognized in the Profit and Loss Account at the rate prevailing at the
year end. Foreign currency transactions relating to acquisition of
fixed assets are adjusted in the cost of the fixed assets.
12) IMPAIRMENT OF ASSETS:
As per the opinion of the management, there being no indication of
impairment of assets, no loss has been recognized on impairment of
assets.
13) RETIREMENT BENEFITS :
i) Contributions to employees Provident Fund remitted to statutory
authority are charged to revenue.
ii) Gratuity benefits wherever applicable are covered by policies taken
with the L.I.C. The premium paid under the scheme is charged to
revenue. However, the company had made provision for gratuity as per
actuarial valuation as required by Accounting Standard - 15.
iii) Liability on leave encashment to employees are provided on
actuarial Valuation Report as required by Accounting Standard - 15.
14) PRELIMINARY EXPENSES :
Preliminary expenses are written off in five equal installments.
Preliminary expenses on public issue are written off in five equal
installments from the year in which Proceeds from the public Issue has
been utilized.
15) PREOPERATIVE EXPENSES (SEZ PROJECT)
Revenue and Financial Expenses incurrend and to be incurred upto
commencement of commercial production on SEZ project is to be
capitalized and will be allocated to the Fixed Assets on the
commencement of the commercial production in SEZ Project.