Mar 31, 2015
1. Accounting Convention and Concepts :
a. The Financial Statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP).The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under section 133 of the Companies Act,2013, read together with
paragraph 7 of the Companies (Accounts) Rules, 2014. The financial
statements have been prepared on an accrual basis and under the
historical cost convention. The accounting policies adopted in the
preparation of financial statements are consistent with those of
previous year, except for the change in accounting policy for
depreciation on Fixed Assets. Refer note 3C.
b. The Company generally follows Mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
2. Use Of Estimates:
The preparation of financial statements are in conformity with
generally accepted accounting principles require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognized in the period in which the
results are known / materialized. Although these estimates are based
upon management''s best knowledge of current events and actions, actual
results could differ from these estimates.
3. Tangible Fixed Assets and capital work in progress:
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Capital work in progress comprises cost of tangible
fixed assets not ready for intended use at the balance sheet date.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day to day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
Gains or losses arising from de-recognition of fixed assets are
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.
4. Depreciation on tangible fixed assets:
Depreciation on fixed assets is provided using straight line method
based on rates specified in Schedule II of the Companies Act, 2013.
Till the year ended March 31, 2014, Schedule XIV of the Companies Act,
1956, prescribed requirements concerning depreciation on fixed assets.
From the Current year, Schedule XIV has been replaced by Schedule II of
the Companies Act, 2013. The applicability of Schedule II has resulted
in the following changes related to depreciation of fixed assets.
Unless stated otherwise, the impact mentioned for the current year is
likely to hold good for future years also.
a. Useful Lives / Depreciation Rates:
Till the year ended March 31, 2014, depreciation rates prescribed under
Schedule XIV were treated as minimum rates and the company was not
allowed to charge depreciation at lower rates even if such lower rates
were justified by the estimated useful life of the asset. Schedule II
to the Companies Act 2013, prescribes useful lives for fixed assets
which, in many cases, are different from lives prescribed under the
erstwhile Schedule XIV. However, Schedule II allows companies to use
higher / lower useful lives and residual values if such useful lives
and residual values can be technically supported and justification for
difference is disclosed in the financial statements.
The management believes that the useful lives / depreciation rates
specified under Schedule II of the Companies Act,2013 would fairly
reflect the estimate of the useful lives of the existing fixed assets
and hence would comply with the provisions of Schedule II commencing
from April 1, 2014. Had the Company continued to use the earlier
accounting policy i.e as per Schedule XIV of the Companies Act,1956,
the impact on depreciation of fixed assets would have been lesser by
Rs.13.52 lakhs.
b. Depreciation on assets costing less than Rs.5000/-:
Till the year ended March 31,2014, to comply with the requirements of
Schedule XIV to the Companies Act,1956, the company was charging 100%
depreciation on assets costing less than Rs.5000/- in the year of
purchase. However, Schedule II to the companies Act, 2013, applicable
from the current year, does not recognize such practice. Hence, to
comply with the requirement of Schedule II to the Companies Act, 2013,
the company has changed the accounting policy for depreciation of
assets costing less than Rs.5000/- . The management has decided to
apply the revised accounting policy prospectively from the accounting
period commencing from April 1, 2014. The change in the accounting for
depreciation of assets costing less than Rs.5000/- did not have any
material impact on the financial statements of the company for the
current year.
5. Inventories:
Finished products are valued at lower of cost or net realizable value,
stock in process, raw material, stores and spares at cost and these are
in conformity with Accounting Standards.
6. Sales / Revenue:
Sale of goods is recognized at the point of dispatch to customers. The
Excise Duty collected on sales is added in Sales.
7. Excise Duty:
Excise Duty on manufactured goods is accounted for at the time of their
clearance from the factory. The above policy however, has no impact on
the operating results of the Company.
8. Retirement Benefits :
Company''s contribution to Provident Fund are charged to Profit & Loss
Account. Gratuity and Leave encashment benefits at the time of
retirement are charged to Profit & Loss Account on the basis of actual
payment.
9. Contingent Liabilities:
Contingent liabilities are determined on the basis of available
information and are disclosed by way of other notes given herein below.
Mar 31, 2014
1. Accounting Convention and Concepts:
a. The Financial Statements have been prepared under the historical
cost convention in accordance with generally accepted accounting
principles and provisions of the Companies Act, 1956, as adopted
consistently by the Company.
b- The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
2. Use of Estimates:
The presentation of financial statements are in conformity with
generally accepted accounting principles require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognized in the period in which the
results are known / materialized.
3. Fixed Assets/Depreciation:
a. Fixed assets are stated at cost of acquisition or construction. In
case of revaluation affixed assets, the Original cost as determined by
the Valuer is considered in the accounts and the differential amount is
transferred to Revaluation Reserve.
b. Depreciation is provided on Buildings and Plant & machinery on
straight line method and the rest of the fixed assets on written down
value method at the rates specified in Schedule XIV to the Companies
Act, 1956.
c. Leasehold Land will be written off in the year in which the
respective lease periods expire.
d. Pursuant to Section 205(2) depreciation on Plant Si Machinery is
calculated on revalued figure and not on original cost of Plant Si
Machinery, Subsequently, depreciation on revalued figure is reduced and
balance is carried to Profit & Loss Account,
4. Inventories:
Finished products are valued at lower of cost or net realizable value,
stock in process, raw material, stores and spares at cost and these are
in conformity with Accounting Standards.
5. Sales / Revenue:
Sale of goods is recognized at the point of dispatch to customers. The
Excise Duty collected on sales is added in Sales.
6. Excise Duty:
Excise Duty on manufactured goods is accounted for at the time of their
clearance from the factory. The above policy however, has no impact on
the operating results of the Company.
7. Retirement Benefits:
Company's contribution to Provident Fund is charged to Profit & Loss
Account. Gratuity and Leave encashment benefits at the lime of
retirement are charged to Profit & Loss Account on the basis of actual
payment.
8. Contingent Liabilities:
Contingent liabilities are determined on the basis of available
information and are disclosed by way of other notes given herein betow,
Mar 31, 2013
1. Accounting Convention and Concepts -
a.The financial statements have been prepared under the historical cost
convention in accordance With generally accepted accounting principles
and provisions of the Companies Act, 1956, as adopted consistently by
the Company
b. The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
2. Use of Estimates -
The presentation of financial statements in conformity with generally
accepted accounting principles require estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the
date of the financial statement and the reported amount of revenues and
expenses during the year. Difference between the actual results and
estimates are recognized in the period in which the results are known /
materialized.
3. Fixed Assets/ Depreciation -
a. Fixed assets are stated at cost of acquisition or construction. In
case of revaluation of fixed assets, the original cost as determined by
the valuer is considered in the accounts and the differential amount is
transferred to Revaluation Reserve.
b. Depreciation is provided on Building and Plant & Machinery on
straight line method and the rest of the fixed assets on written down
value method at the rates specified in Schedule XIV to the Companies
Act, 1956.
c. Leasehold Land will be written off in the year in which the
respective lease periods expire.
d. Pursuant to Section 205(2) depreciation on Plant & Machinery is
calculated on revalued figure and not on original cost of Plant &
Machinery. Subsequently the depreciation on revalued figure is reduced
and balance is carried to Profit and Loss Account.
4. Inventories -
Finished products are valued at lower of cost or net realizable value,
stock in process, raw material, stores and spares at cost and these are
in conformity to Accounting Standards.
5. Sales/ Revenue -
Sale of goods is recognized at the point of dispatch to customers. The
excise duty and sales tax collected on sales are added in sales.
6. Excise duty -
Excise duty on manufactured goods is accounted for at the time of their
clearance from the factory. The above policy however has no impact on
the operating results of the company.
7. Retirement benefits -
Company''s contributions to Provident Fund are charged to Profit and
Loss Account. Gratuity and leave encashment benefits at the time of
retirement are charged to Profit and Loss Account on the basis of
actual payment.
8. Contingent liabilities -
Contingent liabilities are determined on the basis of available
information and are disclosed by way of other notes given herein below.
Mar 31, 2012
1. Accounting Convention and Concepts -
a. The financial statements have been prepared under the historical
cost convention in accordance with generally accepted accounting
principles and provision of the Companies Act, 1956, as adopted
consistently by the Company.
b. The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
2. Use of Estimates-
The presentation of financial statements in conformity with the
generally accepted accounting principles require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognized in the period in which the
results are known/ materialized.
3. Fixed Assets/ Depreciation -
a. Fixed Assets are stated at cost of acquisition or construction. In
case of revaluation of fixed assets, the original cost as determined by
the value is considered in the accounts and the differential amount is
transferred to Revaluation Reserve.
b. Depreciation is provided on Building and Plant & Machinery on
straight line method and rest of the fixed assets on written down value
method at the rates specified in Schedule XIV to the Companies Act,
1956.
c. Leasehold Land will be written off in the year in which the
respective lease periods expire.
d. Pursuant to Section 205 (2) depreciation on Plant & Machinery is
calculated on revalued figure and not on original cost of Plant &
Machinery. Subsequently the depreciation on revalued figure is reduced
and balance is carried to Profit and Loss Account.
4. Inventories -
Finished products are valued at lower of cost or net realizable value,
stocks in process, raw material, stores and spares at cost and these
are in conformity to Accounting Standards.
5. Sales/Revenue-
Sale of goods is recognized at the point of dispatch to customers. The
excise duty and sales tax collected on sales are added in sales.
6. Excise duty -
Excise duty on manufactured goods is accounted for at the time of their
clearance from the factory. The above policy however has no impact on
the operating results of the Company.
7. Retirement benefit -
Company's contributions to Provident Fund are charged to Profit and
Loss Account. Gratuity and leave encashment benefits at the time of
retirement are charged to Profit and Loss Account on the basis of
actual payment.
8. Contingent liabilities-
Contingent liabilities are determined on the basis of available
information and are disclosed by way of other notes given herein below.
Mar 31, 2011
1. Accounting Convention and Concepts -
a. The financial statements have been prepared under the historical
cost convention in accordance with generally accepted accounting
principles and provision of the Companies Act, 1956, as adopted
consistently by the Company.
b. The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
2. Use of Estimates -
The presentation of financial statements in conformity with the
generally accepted accounting principles require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognised in the period in which the
results are known/ materialised.
3. Fixed Assets/ Depreciation -
a. Fixed Assets are stated at cost of acquisition or construction. In
case of revaluation of fixed assets, the original cost as determined by
the valuer is considered in the accounts and the differential amount is
transferred to Revaluation Reserve.
b. Depreciation is provided on Building and Plant & Machinery on
straight line method and rest of the fixed assets on written down value
method at the rates specified in Schedule XIV to the Companies Act,
1956.
c. Leasehold Land will be written off in the year in which the
respective lease periods expire.
d. Pursuant to Section 205 (2) depreciation on Plant & Machinery is
calculated on revalued figure and not on original cost of Plant &
Machinery. Subsequently the depreciation on revalued figure is reduced
and balance is carried to Profit and Loss Account.
e. During the Financial Year 2010-11 we were informed that the company
had to surrender part of Leasehold Land purchased earlier from MPAKVN
by virtue of litigation matter which was pending before the appropriate
authority.
4. Inventories -
Finished products are valued at lower of cost or net realisable value,
stocks in process, raw material, stores and spares at cost and these
are in conformity to Accounting Standards.
5. Sales/ Revenue -
Sale of goods is recognised at the point of dispatch to customers. The
excise duty and sales tax collected on sales are added in sales.
6 Excise duty -
Excise duty on manufactured goods is accounted for at the time-of their
clearance from the factory. The above policy however has no impact on
the operating results of the Company.
7. Retirement benefit -
Company's contributions to Provident Fund are charged to Profit and
Loss Account. Gratuity and leave encashment benefits at the time of
retirement are charged to Profit and Loss Account on the basis of
actual payment.
8. Contingent liabilities -
Contingent liabilities are determined on the basis of available
information and are disclosed by way of other notes given herein below.
Mar 31, 2010
1. Accounting Convention and Concepts -
a. The financial statements have been prepared under the historical
cost convention in accordance with generally accepted accounting
principles and provision of the Companies Act, 1956, as adopted
consistently by the Company.
b. The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
2. Use of Estimates -
The presentation of financial statements in conformity with the
generally accepted accounting principles require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognised in the period in which the
results are known/ materialised.
3. Fixed Assets/ Depreciation -
a. Fixed Assets are stated at cost of acquisition or construction. In
case of revaluation of fixed assets, the original cost as determined by
the valuer is considered in the accounts and the differential amount is
transferred to Revaluation Reserve.
b. Depreciation is provided on Building and Plant & Machinery on
straight line method and rest of the fixed assets on written down value
method at the rates specified in Schedule XIV to the Companies Act,
1956.
c. Leasehold Land will be written off in the year in which the
respective lease periods expire.
d. Pursuant to Section 205 (2) depreciation on Plant & Machinery is
calculated on revalued figure and not on original cost of Plant &
Machinery. Subsequently the depreciation on revalued figure is reduced
and balance is carried to Profit and Loss Account.
4. Inventories -
Finished products are valued at lower of cost or net realisable value,
stocks in process, raw material, stores and spares at cost and these
are in conformity to Accounting Standards.
5. Sales/ Revenue -
Sale of goods is recognised at the point of dispatch to customers. The
excise duty and sales tax collected on sales are added in sales.
6 Excise duty -
Excise duty on manufactured goods is accounted for at the time of their
clearance from the factory. The above policy however has no impact on
the operating results of the Company.
7. Retirement benefit -
Companys contributions to Provident Fund are charged to Profit and
Loss Account. Gratuity and leave encashment benefits at the time of
retirement are charged to Profit and Loss Account on the basis of
actual payment.
8. Contingent liabilities -
Contingent liabilities are determined on the basis of available
information and are disclosed by way of other notes given herein below.