Mar 31, 2014
A. Basis of preparation of financial statements
The Financial Statements are prepared on accrual basis under the
historical cost convention, in conformity in all material aspects in
accordance with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
b. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affects the reported amount of assets and
liabilities on the date of financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known/materialised.
c. Inventories
(i) Raw material, stores & spare parts, chemicals, coal and rice husk
are stated at cost of acquisition (including freight etc.) or market
value whichever is lower.
(ii) Finished Goods are valued at cost or market value whichever is
lower.
(iii) Work in Process is stated at cost.
d. Fixed Assets
i) Fixed Assets (other than land) are stated at cost less accumulated
depreciation. Plant & Machinery are stated at book value, cost
comprises of purchase price and freight, duties, levies and all other
incidentals attributable to bringing the asset to its working
condition for its intended use.
ii) The carrying amounts are reviewed at each balance sheet date when
required to assess whether they are required to be recorded in excess
of their recoverable amounts, and where carrying values exceed this
estimated recoverable amount, assets are written down to their
recoverable amount.
iii) All project related expenditures viz. civil work, machine under
erection, construction and erection materials, pre-operative
expenditure incidental/attributable to construction of project,
borrowing cost incurred prior to the date of commencement of
commercial operation and trial run expenditure etc. are shown under
Capital Work-in-Progress.
e. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation / depletion. All costs, including
financing costs till commencement of commercial production, net
charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets are
capitalised.
f. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
g. Depreciation:
(i) The Company''s practice is to provide the depreciation of Building,
Plant & Machinery and Water Works Distribution System added prior to
2nd April, 1987 on Straight Line Method pursuant to circular
No.1.1/1986-CLV No.14(50) 84 L.L.VI dated 21st May, 1986 issued by the
Department of Company Affairs and in accordance with the Provisions of
Section 205(2) (b) of the Companies Act, 1956 at the rates
corresponding to the rates applicable under Income Tax Rules in force
from time to time.
(ii) On all the additions made after 1st April 1987 towards Building,
Plant & Machinery and Water Distribution System, the depreciation is
provided on Straight Line Method as per the rates specified, and in
the manner specified in Schedule XIV of the Companies Act, 1956.
Pursuant to revision in the rates vide notification No.GSR 756 (E)
dated 16.12.93 issued by the Ministry of Law, Justice and Company
affairs depreciation has been calculated at revised rates on all
additions made after the said date.
(iii) On remaining assets, the depreciation is provided on Written
Down Value method as per the rates specified and in the manner
specified in Schedule XIV of the Companies Act, 1956.
h. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
i. ) Revenue in relation to sale of goods is recognised on transfer of
significant risks and rewards associated with ownership of the goods
to the buyer for consideration.
ii. ) Interest income is recognised on the basis of its accrual as per
the terms of the agreement.
iii. ) Dividend income is recognised when the right to receive the
same is established.
iv. ) Other revenue is recognised when it is earned and no significant
uncertainty exists as to its ultimate collection.
i. Investments
Current Investments are valued at lower of their cost and Net
Realisable Value. Non-current investments are carried at cost.
Provision for diminution in value of non-current investments is made
only if such a decline is other than temporary in nature.
j. Employee Benefits
i. ) Short term employee benefits are recognized as an expenses at the
undiscounted amount in the profit and loss/ preoperative expenses of
the period in which related service is rendered.
ii. ) Post employment and long term employee benefits are recognized
as an expense in the profit and loss/ pre- operative expenses for the
period in which the employees has rendered services and other
statutory requirements are met. The expense will be recognized at the
present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains or losses in respect of post
employment and other long term benefits are charged to the profit and
loss account/ pre-operative expenses. The Company has a defined
benefit gratuity plan. Every employee who has completed five years or
more of service gets a gratuity on departure at 15 days salary (last
drawn salary) for each completed year of service. The Scheme is
unfunded.
iii. ) Classification of provision for employee benefits into current
and non-current is made on the basis of actuarial valuation report.
k. Provision for Current 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 differences" between taxable
and accounting income is accounted for using the tax rates and laws
that are enacted or substantively enacted as on the Balance Sheet
date. The deferred tax asset is recognised and carried forward only to
the extent that there is a virtual certainty that the asset will be
realised in future.
l. Foreign Exchange Transaction
i. The transactions of foreign exchange are recorded at the exchange
rate prevailing on the date of the transaction or that approximates
the actual rate at the date of the transaction.
ii. Monetary items denominated in foreign currencies at the year end
are restated at year end rates.
iii. Non monetary foreign currency items are carried at cost.
m. Excise Duty and Sales Tax / Value Added Tax
Excise duty and Sales Tax / Value Added Tax in respect of goods
manufactured by the Company and according to the method of accounting
consistently followed, is accounted at the time of removal of goods
from the factory for sale and captive consumption. This accounting
practice, however, has no impact on the profit for the year.
n. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised 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 Profit and Loss account.
o. Prior Period And Extraordinary Items
Prior period and extraordinary items and changes in accounting
policies having material impact on the financial affairs of the
company are disclosed.
p. Provision, Contingent Liabilities and Contingent Assets:
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
event and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes to accounts. Contingent Assets are neither recognised nor
disclosed in the financial statements.
q. Segment Reporting
Segment accounting policies are in line with the accounting policies
of the Company. However, the following specific accounting policies
have been followed for segment reporting:
The Company operates in two segments, viz. Manufacturing of Paper and
Rice Milling. The Company has chosen these business segments as its
primary segments considering the dominant source and nature of risks
and returns and the internal organization and management structure.
(i) Segment Revenue includes Sales and other income directly
identifiable with / allocable to the segment.
(ii) Expenses that are directly identifiable with / allocable to
segments are considered for determining the Segment Result. The
expenses which relate to the Company as a whole and not allocable to
segments, are included under "Unallocated expenditure".
(iii) Income, which relates to the Company, as a whole and not
allocable to segments is included in "Unallocated Corporate
Income".
(iv) Segment Assets and Liabilities include those directly
identifiable with the respective segments. Unallocated corporate
assets and liabilities represent the assets and liabilities that
relate to the Company as a whole and not allocable to any segment.
Unallocated assets mainly comprise investments, unallocated loans and
advances and, deferred revenue expenditure.
Mar 31, 2013
Note -1 : Corporate Information
Ellora Paper Mills Limited is a public Company domiciled in India and
incorporated under the provision of the Companies Act, 1956. Its
registered office is situated at 379, Pandit Jawaharlal Nehru Marg,
Ashoka Vault Building, Sitabuldi, Nagpur- 440 012. Ellora Paper Mills
Limited is engaged in the business of manufacture of paper products.
a. Basis of preparation of financial statements
The Financial Statements are prepared on accrual basis under the
historical cost convention, in conformity in all material aspects in
accordance with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
b. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affects the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialised.
c. Inventories
(i) Raw material, stores & spare parts, chemicals, coal and rice husk
are stated at cost of acquisition (including freight etc.) or market
value whichever is lower.
(ii) Finished Goods are valued at cost or market value whichever is
lower. (iii) Work in Process is stated at cost.
d. Fixed Assets
i) Fixed Assets (other than land) are stated at cost less accumulated
depreciation. Plant & Machinery are stated at book value, cost
comprises of purchase price and freight, duties, levies and all other
incidentals attributable to bringing the asset to its working condition
for its intended use.
ii) The carrying amounts are reviewed at each balance sheet date when
required to assess whether they are required to be recorded in excess
of their recoverable amounts, and where carrying values exceed this
estimated recoverable amount, assets are written down to their
recoverable amount.
iii) All project related expenditures viz. civil work, machine under
erection, construction and erection materials, pre-operative
expenditure incidental/attributable to construction of project,
borrowing cost incurred prior to the date of commencement of commercial
operation and trial run expenditure etc. are shown under Capital
Work-in-Progress.
e. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation / depletion. All costs, including
financing costs till commencement of commercial production, net charges
on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets are
capitalised.
f. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
g. Depreciation:
(i) The Company''s practice is to provide the depreciation of Building,
Plant & Machinery and Water Works Distribution System added prior to
2nd April, 1987 on Straight Line Method pursuant to circular
No.1.1/1986-CLV No.14(50) 84 L.L.VI dated 21st May, 1986 issued by the
Department of Company Affairs and in accordance with the Provisions of
Section 205(2) (b) of the Companies Act, 1956 at the rates
corresponding to the rates applicable under Income Tax Rules in force
from time to time.
(ii) On all the additions made after 1st April 1987 towards Building,
Plant & Machinery and Water Distribution System, the depreciation is
provided on Straight Line Method as per the rates specified, and in the
manner specified in Schedule XIV of the Companies Act, 1956. Pursuant
to revision in the rates vide notification No.GSR 756 (E) dated
16.12.93 issued by the Ministry of Law, Justice and Company affairs
depreciation has been calculated at revised rates on all additions made
after the said date.
(iii) On remaining assets, the depreciation is provided on Written Down
Value method as per the rates specified and in the manner specified in
Schedule XIV of the Companies Act, 1956.
h. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
i.) Revenue in relation to sale of goods is recognised on transfer of
significant risks and rewards associated with ownership of the goods to
the buyer for consideration.
ii.) Interest income is recognised on the basis of its accrual as per
the terms of the agreement.
iii.) Dividend income is recognised when the right to receive the same
is established.
iv.) Other revenue is recognised when it is earned and no significant
uncertainty exists as to its ultimate collection.
i. Investments
Current Investments are valued at lower of their cost and Net
Realisable Value. Non-current investments are carried at cost.
Provision for diminution in value of non-current investments is made
only if such a decline is other than temporary in nature.
j. Employee Benefits
i.) Short term employee benefits are recognized as an expenses at the
undiscounted amount in the profit and loss/ preoperative expenses of
the period in which related service is rendered.
ii.) Post employment and long term employee benefits are recognized as
an expense in the profit and loss/ pre- operative expenses for the
period in which the employees has rendered services and other statutory
requirements are met. The expense will be recognized at the present
value of the amount payable determined using actuarial valuation
techniques. Actuarial gains or losses in respect of post employment and
other long term benefits are charged to the profit and loss account/
pre-operative expenses. The Company has a defined benefit gratuity
plan. Every employee who has completed five years or more of service
gets a gratuity on departure at 15 days salary (last drawn salary) for
each completed year of service. The Scheme is unfunded.
iii.) Classification of provision for employee benefits into current
and non-current is made on the basis of actuarial valuation report.
k. Provision for Current 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 differences" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
I. Foreign Exchange Transaction
i. The transactions of foreign exchange are recorded at the exchange
rate prevailing on the date of the transaction or that approximates the
actual rate at the date of the transaction.
ii. Monetary items denominated in foreign currencies at the year end
are restated at year end rates.
iii. Non monetary foreign currency items are carried at cost.
m. Excise Duty and Sales Tax / Value Added Tax
Excise duty and Sales Tax / Value Added Tax in respect of goods
manufactured by the Company and according to the method of accounting
consistently followed, is accounted at the time of removal of goods
from the factory for sale and captive consumption. This accounting
practice, however, has no impact on the profit for the year.
n. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised 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 Profit and Loss account.
o. Prior Period And Extraordinary Items
Prior period and extraordinary items and changes in accounting policies
having material impact on the financial affairs of the company are
disclosed.
p. Provision, Contingent Liabilities and Contingent Assets:
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past event
and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes to accounts. Contingent Assets are neither recognised nor
disclosed in the financial statements.
q. Segment Reporting
Segment accounting policies are in line with the accounting policies of
the Company. However, the following specific accounting policies have
been followed for segment reporting:
The Company operates in two segments, viz. Manufacturing of Paper and
Rice Milling. The Company has chosen these business segments as its
primary segments considering the dominant source and nature of risks
and returns and the internal organization and management structure.
(i) Segment Revenue includes Sales and other income directly
identifiable with / allocable to the segment.
(ii) Expenses that are directly identifiable with / allocable to
segments are considered for determining the Segment Result. The
expenses which relate to the Company as a whole and not allocable to
segments, are included under "Unallocated expenditure".
(iii) Income, which relates to the Company, as a whole and not
allocable to segments is included in
"Unallocated Corporate Income".
(iv) Segment Assets and Liabilities include those directly Identifiable
with the respective segments.
Unallocated corporate assets and liabilities represent the assets and
liabilities that relate to the Company as a whole and not allocable to
any segment. Unallocated assets mainly comprise investments,
unallocated loans and advances and, deferred revenue expenditure.
(B) Terms & conditions
(i) The company received an interest free sales tax loan of X 176.16
lacs from State Industrial and Investment Corporation of Maharashtra
Limited during the period from 27.01.1981 to 15.03.1994.The loan is
repayable after 18 years in three equal annual installments from the
date of disbursement. All the outstanding installments of the said loan
have been discounted @ 11 % p.a. The difference between the present
value as of 31 st March 2013 and 31st March 2012 is debited to Profit
and loss account and shown as interest expense of Rs. 2.14 lacs.
(ii) Sales tax amounting to Rs. 257.87 lacs was availed by the company
during the period from April 2004 to April 2009 as Deferral. This
liability is payable in installments over the period of time spanning
from April-2011 to April-2024. In order to present a realistic picture
of the liability, the said liability had been reviewed and discounted
at 11% per annum. The difference between the present value as of 31st
March 2013 and 31st March 2012 is debited to Profit and loss account
and shown as interest expense of Rs. 10.41 lacs.
(C) Maturity profile and rate of interest-Rate of Interest 11%
* The Company has not received information from creditors regarding
their status under the Micro, Small and Medium Enterprises Development
Act,2006 and hence disclosure as required under the Companies Act, 1956
relating to amounts unpaid as at the end of the period together with
interest paid/payable thereon has not been given.
"During the year ended on 31st March 2013, the Company has unpaid sale
tax liabilities of * 40.94 lacs and excise
duty liability of 72.13 Lacs
** Includes statutory dues, security deposit employees dues and
expenses accrued but not yet due
Mar 31, 2010
1. RECOGNITION OF INCOME AND EXPENDITURE
The Company generally follows the mercantile system of Accounting and
recognises income and expenditure on accrual basis except those with
significance uncertainties.
2. SALES
Sales are invoiced on the despatch of goods to the Customers. Sales
include Excise Duty and exclude Sales Tax.
3. FIXEDASSETS
(i) Fixed Assets (otherthan land) are stated at cost less accumulated
depreciation. Plant &
Machinery are stated at book value, cost comprises of purchase price
and freight, duties, levies and all other incidentals attributable to
bringing the asset to its working condition for its intended use. (ii)
The carrying amounts are reviewed at each balance sheet date when
required to assess whether they are required to be recorded in excess
of their recoverable amounts, and where carrying values exceed this
estimated recoverable amount, assets are written down to their
recoverable amount.
4. DEPRECIATION ON FIXEDASSETS
(i) The Companys practice is to provide the depreciation of Building,
Plant & Machinery and Water Works Distribution System added prior to
2n" April, 1987 on Straight Line Method pursuant to circular
No.1,1/1986-CLV No.14(50) 84 L.L.VI dated 21 * May, 1986 issued by the
Department of Company Affairs and in accordance with the Provisions of
Section 205(2) (b) of the Companies Act, 19o6 at the rates
corresponding to the rates applicable under Income Tax Rules in force
from time to time.
(ii) On all the additions made after 1" April 1987 towards Building,
Plant & Machinery and Water Distribution System, the depreciation is
provided on Straight Line Method as per the rates specified, and in the
manner specified in Schedule XIV of the Companies Act, 1956. Pursuant
to revision in the rates vide notification No.GSR 756 (E) dated
16.12.93 issued by the Ministry of Law, Justice and Company affairs
depreciation has been calculated at revised rates on all additions made
after the said date.
(iii) On remaining assets, the depreciation is provided on Written Down
Value method as per the rates specified and in the manner specified in
Schedule XIVoftheCompaniesAct, 1956.
5. INVESTMENT
Investments are stated at cost of acquisition.
Earnings from investments, where appropriate are accused or taken into
renewe in full on declaration on receipts.
6. VALUATION OF INVENTORIES
(i) Raw material, stores & spare parts, chemicals, coal and rice husk
are stated at cost of acquisition (including freight etc) or market
value whichever is lower. (ii) Finished Goods are valued at cost or
market value whichever is lower. (iii) Work in Process is stated at
cost.
7. EMPLOYEE RETIREMENT BENEFITS
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets agratuity on departure at
15 day salary (last drawn salary) for each completed year of service.
The Scheme is unfunded.
Thefollowing table summarises the components of net benefit expense
recognized in the profit and loss account and the amounts recognized in
the balance sheet..
8. ACCOUNTING OF MODVAT CREDIT
Modvat credit is accounted only when utilised for clearance of
excisable goods during the year.
9. FOREIGN EXCHANGE TRANSACTIONS
The transactions of foreign exchange are recorded at the exchange rate
prevailing on the date of the transaction.
10. LEASE RENT
In respect of leased assets acquired prior to 01.04.2001, rerital and
all other expenses are treated as revenue expenses. The Company has not
taken / given any asset on lease on or after 01.04.2001.
11. PRIOR PERIOD AND EXTRAORDINARY ITEMS:
Prior period and extraordinary items and changes in accounting policies
having material impact on the financial affairs of the company are
disclosed.
12. MATERIAL EVENTS:
Material events occurring after Balance Sheet date, if any, are taken
into cognisance. Subsequent to Balance Sheet date, a major fire broke
in the factory premises at Tumsar. The loss of stock, building,
machinery etc. due to fire is estimated at 11.00 Crores. All these
assets are covered by an appropriate Insurance Policy. The survey
relating to the above stated fire is in process after completion of
which the exact loss would be determined.
13. PROVISIONS AND CONTIGNMENT LIABILITIES:
The company recognizes a provisions where there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation as a present obligation that may, but probably
will not, require an outflow of resources. When there is a possible
obligation as a present obligation and the likelyhood of outflow of
resources is remote, no provision or disclosure for contingent
liability is made.
14. TAXATION
(a) Current Tax is determined as the amount of tax payable with respect
to the taxable income for the current year.
(b) Deferred Tax, with respect to deferred tax assets /liabilities, is
recognized at the current rate of tax, on the basis of timing
differences between taxable income and accounting income that
originates in one period and is capable of reversal in one or more
subsequent periods.
15. BORROWING COSTS
Interest and other borrowing costs on specific borrowings relating to
qualifying assets are capitalized. Other interest and borrowing costs
are charged to revenue.
16 RELATED PARTY INFORMATION (i) Relationships
(a) Key Management Personnel
Shri C.P.Goenka, Managing Director Shri SudhirGoenka, Executive
Director
(b) Relatives & enterprises of key management personnel where
transactions have taken place
Smt.KusumGoenka Smt.Archana Goenka Smt. SavitriDeviGoenka
ShriAshokDalmia AshokDalmiaHUF Shri Parikshit Dalmia Sudhir Goenka HUF
Ms.Twisha Goenka Ms. Megha Goenka Shri.Shashank Goenka Shri Sandeep
Goenka
(c) Enterprises where control exists Ellora Plantations Limited
Brajeshwari Paper Traders
Mar 31, 2009
Not Available
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