Mar 31, 2010
A) BASIS FOR PREPARATION OF ACCOUNTS: These accounts have been prepared
in accordance with historical cost convention and on accrual basis
except as stated.
B) FIXED ASSETS: Fixed assets are stated at cost. The cost of fixed
assets comprises of its purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
C) DEPRECIATION:
Depreciation is calculated on straight-line method at the rates and
manner specified in the Schedule XIV to the Companies Act, 1956 or
estimated useful life of the assets, which ever is lower.
D) INTANGIBLE ASSETS: Pursuant to adoption of Accounting Standard 26 -
Intangible Assets, issued by the ICAI, Computer Software that is not an
integral part of the related hardware is classified as intan- gible
assets and is being amortised over a period of 3 years being the
estimated useful life.
E) IMPAIRMENT OF FIXED ASSETS: Consideration is given at each balance
sheet date to determine whether there is any indication of impairment
of the carrying amount of the companys fixed assets. If any indication
exists, an assets recoverable amount is estimated. An impairment loss
is recognized whenever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is greater of the net
selling price and value in use. In assessing the value in use, the
estimated future cash flows are discounted to their present value based
on an appropriate discount factor.
F) INVENTORIES: Basis of Valuation Stores & Spare parts Raw Material
At lower of cost* or net realisable value. At lower of cost* or net
realisable value. *Cost is determined on FIFO basis.
Finished goods & Work in Progress
At lower ot cost or net reansaDie value (uost comprises Material,
Labour and Manufacturing overheads as recommended in the Accounting
standard 2 (revised)-Valuation of Inventories issued by Institute of
Chartered Accountants of India.)
Scrap
At estimated realisable value.
G) FOREIGN CURRENCYTRANSACTION:
1) Foreign currency transactions are recorded in books at the exchange
rate prevailing on the date of transaction.
2) All Assets and Liabilities in foreign currency, outstanding at the
close of the year are converted into Indian Currency at the rates of
exchange prevailing on the date of the Balance Sheet. Liability for
increase/decrease in respect of exchange difference is adjusted in the
Profit and Loss Account.
H) RETIREMENT BENEFTTS:
The Companys contributions to Provident Fund are charged to Profit &
Loss Account. Provision for Gratuity and Leave encashment are made on
the basis of actuarial valuation and charged to Profit & Loss Account.
I) EXCISE DUTY: Excise Duty has been accounted on the basis of, both,
payments made in respect of finished goods cleared as also provision
made for finished goods lying in stock.
J) PROVISIONS: A provision is recognized when an enterprise has a
present obligation as a result of past event; it is probable that an
outflow of resources will be required to settle the obligation, in
respect of which a reliable estimate can be made. Provisions except
those disclosed elsewhere in the notes to the financial statements, are
not discounted to its present value and are determined based on the
best estimate required to settle the obligation at the balance sheet
date. These are reviewed at each balance sheet date and adjusted to
reflect the current estimate.
K) TAXATION:
1) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per applicable provisions of
Income Tax Act, 1961.
2) Deferred Tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that have been
enacted or substantively enacted as of the Balance Sheet date. Deferred
Tax assets are recognized to the extent there is reasonable certainty
that the assets can be realised in future. iÃl
L) CONTINGENT LIABILITIES: Liabilities which are material and whose
future outcome cannot be ascertained with reasonable certainties are
treated as Contingent and to the extent not provided for, are disclosed
by way of notes on accounts.