Mar 31, 2015
A. Basis of preparation
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006,(as amended) issued by the National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
2013. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as
12(twelve) months for the purpose of current and non current
classification of assets and liabilities
b. Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
c. Fixed Assets
(i) Tangible Assets/Intangible Assets are stated at cost net of
accumulated depreciation/amortisation and impairments any. The Cost
Comprises its purchase price and any cost directly attributable to
bringing the asset to its working condition for its intended use. Fixed
assets are eliminated from financial statements, either on disposal or
when retired from active use. Also refer Policy G and H below. Losses
arising from the retirement of, and gains or losses arising from
disposal of fixed assets are recognised in the Statement of Profit and
Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any deduction that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that extent.
d. Investments
Long term investments are stated at cost less provision, if any for
other than temporary diminution in the value of investments.
e. Inventories
Inventories are stated at lower of cost and net realisable value. Goods
in process is stated at cost. The cost includes cost of purchase, cost
of conversion and other cost incurred in bringing the inventories to
their present location and condition. Cost formula used are "Weighted
Average Method" or "Specific Identification method" as applicable.
f. Revenue Recognition
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain.
Export Sales are inclusive of deemed exports while domestic sales are
net of Value Added Tax.
g. Borrowing Cost
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. All other
Borrowing costs are charged to Statement of Profit and Loss.
h. Depreciation
Depreciation has been provided on straight line method based on useful
life of Assets as prescribed in Schedule II to the Companies Act, 2013.
Plant and equipments have been, on technical assessment, considered as
continuous process plants as defined in the said Schedule and
depreciation has been provided accordingly.
Depreciation on Plant and equipments is provided on Straight Line
Method. In respect of other assets depreciation is provided on Written
Down Value Method.
Intangible Assets are amortised based on their estimated useful lives.
i. Employee Benefits
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 ( twelve) months after the end of the period in which the employees
render service are paid/provided during the year, as per the Rules of
the Company.
Defined Contribution Plans:
Retirement benefits in the form of Provident Fund, Family Pension
Funds, Superannuation Fund (wherever opted) and ESIC are defined
contribution scheme and the contributions are charged to the Statement
of Profit and Loss of the period when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
Defined Benefit plans:
The Company provides for Gratuity, a defined benefit retirement plan,
covering eligible employees. The scheme is funded with Life Insurance
Corporation of India. Liability under Gratuity plan is provided for on
the basis of an actuarial valuation on projected unit credit method
made at the end of each financial period.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in
the Statement of Profit and Loss of the year in which such payments are
due.
j. Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the rate of exchange
in force at the date of transactions
Foreign Currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year end and
resultant gains/losses are recognised in the statement of profit and
loss. Premium / Discount in respect of Forward Foreign Exchange
contracts are recognised over the life of the contracts
k. Taxation
Income Tax expenses comprises Current Tax and deferred tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets. At each balance sheet date the Company
re-assesses the deferred tax assets.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax during the specified period and is reviewed at each
balance sheet date.
l. Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
m. Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
n. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive potential
equity shares.
I Term Loans are secured by :
(i) Term loans borrowed from Banks and Financial Institution and total
outstanding of Rs.3080.26 lacs (Previous year - Rs.3651.52 lacs) are
secured by first charge by way of equitable mortgage on all immovable
assets both present and future and hypothecation of all the movable
assets of the Company (excluding assets purchased on hire purchase
basis), subject to prior charges in favour of Banks for working
captital, ranking pari pasu interse.
(ii) In the above mentioned Term Loans from certain Banks are further
secured by personal guarantee given by Chairman & Managing Director of
the Company to the extent of Rs.1312.88 lacs (Previous year end -
Rs.1242.96 lacs).
(iii) Loan from Export Import Bank of India outstanding of Rs.263 Lacs
( Previous yearRs.295 Lacs ) is further secured by Corporate guarantee
given by Patspin India Limited to the extent of Rs.175 lacs (Previous
year Rs.175 Lacs).
(iv) Finance Lease Obligations are relating to vehicles and are secured
against respective vehicles hypothecated costing Rs. 35.42 lacs
(Previous year end Rs.21.40 lacs).
Mar 31, 2014
A. Basis of preparation
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006,(as amended) issued by the National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12(twelve) months for
the purpose of current and non current classification of assets and
liabilities.
b. Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
c. Fixed Assets
(i) Tangible Assets/Intangible Assets are stated at acquisition cost
less net of accumulated depreciation. Expenditure during construction
period in respect of new project/expansion is allocated to the
respective fixed assets on their being ready for commercial use. Fixed
asstes are eliminated from financial statements ,either on disposal or
when retired from active use. Also refer Policy g and h below. Losses
arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognsied in
the Statement of Profit and Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any deduction that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that extent.
d. Investments
Long term investments are stated at cost less provision, if any for
other than temporary diminution in the value of investments.
e. Inventories
Inventories are stated at lower of cost and net realisable value. Cost
of raw material is computed by using "Specific identification" method
and for other inventories "Weighted Average " method.The cost includes
cost of purchase, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition.
f. Revenue Recognition
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain.
Export Sales are inclusive of deemed exports while domestic sales are
net of Value Added Tax.
g. Borrowing Cost
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. All other
Borrowing costs are charged to Statement of Profit and Loss.
h. Depreciation
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
Plant and equipments have been, on technical assessment, considered as
continuous process plants as defined in the said Schedule and
depreciation has been provided accordingly.
Depreciation on Plant and equipments is provided on Straight Line
Method. In respect of other assets depreciation is provided on Written
Down Value Method.
Intangible Assets are amortised at the rate of 16.21% based on their
estimated useful lives.
i. Employee Benefits
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 ( twelve) months after the end of the period in which the employees
render service are paid/provided during the year, as per the Rules of
the Company.
Defined Contribution Plans:
Retirement benefits in the form of Provident Fund, Family Pension
Funds, Superannuation Fund (wherever opted) and ESIC are defined
contribution scheme and the contributions are charged to the Statement
of Profit and Loss of the period when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
Defined Benefit plans:
The Company provides for Gratuity, a defined benefit retirement plan,
covering eligible employees. The scheme is funded with Life Insurance
Corporation of India. Liability under Gratuity plan is provided for on
the basis of an actuarial valuation on projected unit credit method
made at the end of each financial period.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in
the Statement of Profit and Loss of the year in which such payments are
effected.
j. Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the rate of exchange
in force at the date of transactions.
Foreign Currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year end and
resultant gains/losses are recognised in the statement of profit and
loss. Premium / Discount in respect of Forward Foreign Exchange
contracts are recognised over the life of the contracts.
k. Taxation
Income Tax expenses comprises Current Tax and deferred tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets. At each balance sheet date the Company
re-assesses the deferred tax assets.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax during the specified period and is reviewed at each
balance sheet date.
l. Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
m. Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
n. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit for the period. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive potential
equity shares.
Mar 31, 2013
A. Basis of preparation
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006,(as amended) issued by the National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12(twelve) months for
the purpose of current  non current classification of assets and
liabilities
b. Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
c. Fixed Assets
(i) Tangible Assets/Intangible Assets are stated at acquisition cost
less net of accumulated depreciation. Expenditure during construction
period in respect of new project/expansion is allocated to the
respective fixed assets on their being ready for commercial use. Fixed
assets are eliminated from financial statements ,either on disposal or
when retired from active use. Also refer Policy g and h below. Losses
arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognised in
the Statement of Profit and Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any indication that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that extent.
d. Investments
Long term investments are stated at cost less provision, if any for
other than temporary diminution in the value of investments.
e. Inventories
Inventories are stated at lower of cost and net realisable value. Cost
of raw material is computed by using "Specific identification" method
and for other inventories "Weighted Average " method.The cost includes
cost of purchase, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition.
f. Revenue Recognition
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain.
Export Sales are inclusive of deemed exports while domestic sales are
net of Value Added Tax.
g. Borrowing Cost
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. All other
Borrowing costs are charged to Statement of Profit and Loss.
h. Depreciation
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
Plant and equipments have been, on technical assessment, considered as
continuous process plants as defined in the said Schedule and
depreciation has been provided accordingly.
Depreciation on Plant and equipments is provided on Straight Line
Method. In respect of other assets depreciation is provided on Written
Down Value Method.
Intangible Assets are amortised at the rate of 16.21% based on their
estimated useful lives.
i. Employee Benefits
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 ( twelve) months after the end of the period in which the employees
render service are paid/provided during the year, as per the Rules of
the Company.
Defined Contribution Plans:
Retirement benefits in the form of Provident Fund, Family Pension
Funds, Superannuation Fund (wherever opted) and ESIC are defined
contribution scheme and the contributions are charged to the Statement
of Profit and Loss of the period when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the respective trusts.
Defined Benefit plans:
The Company provides for Gratuity, a defined benefit retirement plan,
covering eligible employees. The scheme is funded with Life Insurance
Corporation of India. Liability under Gratuity plan is provided for on
the basis of an actuarial valuation on projected unit credit method
made at the end of each financial period.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any are recognized in
the Statement of Profit and Loss of the year in which such payments are
effected.
j. Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the rate of exchange
in force at the date of transactions
Foreign Currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year end and
resultant gains/losses are recognised in the statement of profit and
loss. Premium / Discount in respect of Forward Foreign Exchange
contracts are recognised over the life of the contracts
k. Taxation
Income Tax expenses comprises Current Tax and deferred tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets. At each balance sheet date the Company
re-assesses the deferred tax assets.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax during the specified period and is reviewed at each
balance sheet date.
l. Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
m. Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
n. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit or loss for the period. For the purpose of calculating diluted
earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2012
A. Basis of preparation
The financial statements are prepared to comply with the mandatory
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules 2006, (as amended) issued by the National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 (twelve) months for
the purpose of current à non current classification of assets and
liabilities
b. Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognised prospectively.
c. Fixed Assets
(i) Tangible Assets/Intangible Assets are stated at acquisition cost
less net of accumulated depreciation. Expenditure during construction
period in respect of new project/expansion is allocated to the
respective fixed assets on their being ready for commercial use. Fixed
asstes are eliminated from financial statements ,either on disposal or
when retired from active use. Also refer Policy g and h below. Losses
arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognised in
the Statement of Profit and Loss.
(ii) Impairment of Assets : The company assesses at each Balance Sheet
date whether there is any indication that any asset (both tangible and
intangible) may be impaired, if any such indication exists, the
carrying value of such assets is reduced to recoverable amount and the
impairment loss is charged to Statement of Profit and Loss. If at the
Balance sheet date there is any indication that a previously assessed
impairment loss no longer exists, then such loss is reversed and the
asset is restated to that effect.
d. Investments
Long term investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
e. Inventories
Inventories are stated at lower of cost and net realisable value. Cost
of raw material is computed by using "Specific identification" method
and for other inventories "Weighted Average " method.The cost includes
cost of purchase, cost of conversion and other cost incurred in
bringing the inventories to their present location and condition.
f. Revenue Recognition
Sales are recognised as and when risks and rewards of ownership are
passed on to the buyer and ultimate realisation of price is reasonably
certain.
Export Sales are inclusive of deemed sales and net of Value Added Tax.
Claims and other incomes are recognised based on virtual certainty of
such claims and incomes.
g. Borrowing Cost
Borrowing costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. All other
Borrowing costs are charged to Statement of Profit and Loss.
h. Depreciation
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
Plant and Equipments have been, on technical assessment, considered as
continuous process plants as defined in the said Schedule and
depreciation has been provided accordingly.
Depreciation on Plant and Equipments is provided on Straight Line
Method. In respect of other assets depreciation is provided on Written
Down Value Method.
Intangible Assets are amortised at the rate of 16.21% on Straight line
basis over their estimated useful lives.
i. Employee Benefits
Short Term employee benefits including accrued liability for Leave
Encashment (other than termination benefits) which are payable within
12 (twelve) months after the end of the period in which the employees
render service are paid/ provided during the year as per the Rules of
the Company.
Defined Contribution Plans:
Company's contributions paid/payable during the year to Provident and
Family Pension Funds, Superannuation Fund (wherever opted) and ESIC are
recognized in the statement of Profit & Loss.
Defined Benefit plans:
The Employees' Gratuity Fund Scheme covered by the Group
Gratuity-cum-Life Assurance Policy of LIC of India is a Defined Benefit
Plan. The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit Method which recognizes each
period of service as giving rise to additional amount of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
Termination Benefits:
Payments under Voluntary Retirement Scheme, if any, are recognized in
the Statement of Profit and Loss of the year in which such payments are
effected.
j. Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the rate of exchange
in force at the date of transactions.
Foreign Currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year end and
resultant gains/losses are recognised in the statement of Profit and
Loss. Premium / Discount in respect of Forward Foreign Exchange
contracts are recognised over the life of the contracts.
k. Taxation
Income Tax expenses comprises Current Tax and deferred tax charge or
credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the year, unabsorbed
depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward loss under
Taxation laws, deferred tax assets are recognised only if there is
virtual certainty of realisation of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably/virtually certain as the case
may be, to be realised.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax during the specified period and is reviewed at each
balance sheet date.
l. Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.
m. Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
n. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive potential
equity shares.
Mar 31, 2011
A) BASIS OF PRESENTATION
The financial statements have been prepared to comply with the
mandatory Accounting Standards prescribed in the Companies (Accounting
Standards) Rules 2007, issued by National Advisory Committee on
Accounting Standards and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared under the historical
cost convention, on the basis of a going concern and on accrual basis.
B) USE OF ESTIMATES
The preparation of financial statements requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognized prospectively.
C) FIXED ASSETS
(i) All fixed assets are stated at cost less accumulated depreciation.
Expenditure during construction period In respect of new project /
expansion is allocated to the respective fixed assets on their being
ready for commercial use. Fixed Assets are eliminated from Financial
statements, either on disposal or when retired from active use. Also
refer Policy G and J below.
(ii) Impairment of Assets :
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to recoverable
amount and the impairment loss is charged to Profit and Loss account.
If at the Balance Sheet date there is any deduction that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to that effect.
D) INVESTMENTS
Long term Investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are valued at lower of cost or net realisable value. Cost
of Raw Material is computed by using "Specific Identification" method
and for other inventories "Weighted Average" method. The cost includes
cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
F) REVENUE RECOGNITION
Sales are recognized as and when risks and rewards of ownership are
passed on to the buyer and ultimate realization of price is reasonably
certain.
Export Sales are inclusive of deemed exports while domestic sales are
net of Value Added Tax.
Claims and other incomes are recognized based on virtual certainty of
such claims and incomes.
G) BORROWING COST
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. Other
borrowing costs are charged to Profit & Loss Account.
H) DEPRECIATION
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
Plant & Machinery and Electrical Installations have been, on technical
assessment, considered as continuous process plants as defined in the
said Schedule and depreciation has been provided accordingly.
Depreciation on Plant & Machinery and Electrical Installations is
provided on Straight Line Method. In respect of other assets
depreciation is provided on Written Down Value Method.
I) EMPLOYEE BENEFITS
Short Term employee benefit including accrued liability for Leave
Entitlement (other than termination benefits) which are payable within
12 months after the end of the period in which the employee render
service are paid/ provided during the year as per the Rules of the
Company.
Defined Contribution plans :
Companys contributions paid / payable during the year to Provident and
Family Pension Funds, Superannuation Fund (wherever opted) and
Employees State Insurance Contribution are recognized in the Profit And
Loss Account.
Defined Benefits Plan:
The Employees Gratuity Fund Scheme covered by the Group Gratuity Cum
Life Assurance Policy of LIC of India is a defined benefit plan. The
present value of obligation is determined based on actuarial valuation
using projected Unit Credit Method which recognizes each period of
service as giving rise to additional amount of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
J) FOREIGN CURRENCY TRANSACITONS
Transactions in Foreign Currency are recorded at the rate of exchange
in force at the date of transactions.
Foreign Currency assets and liabilities both monetary and non monetary
are stated at the rate of exchange prevailing at the year end and
resultant gains/losses are recognized in the profit and loss account.
Premium / Discount in respect of Forward Foreign Exchange contracts are
recognized over the life of the contracts.
K) TAXATION
Income Tax expense comprises Current Tax, Wealth Tax (i.e. amount of
tax for the year determined in accordance with the Income Tax Law) and
deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the year,
unabsorbed depreciation or carry forward loss under taxation laws).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted on the balance sheet date.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward loss under
Taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realisation of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably / virtually certain as the
case may be, to be realised.
Tax credit is recognized in respect of Minimum Alternative Tax (MAT) as
per the provisions of Section 115JB of the Income Tax Act, 1961 based
on convincing evidence that the Company will pay normal income tax
within the statutory time frame and is reviewed at each balance sheet
date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) the company has a present obligation as a result of a past event,
b) the probable outflow of resources is expected to settle the
obligation and
c) the amount of the obligation can be reliably estimated.
Where some or all of the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) a present obligation arising from a past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, unless the probability of outflow of
resources is remote.
Mar 31, 2010
A) BASIS OF PRESENTATION
The fnancial statements have been prepared to comply with the mandatory
Accounting Standards prescribed by the Institute of Chartered
Accountants of India and the relevant provisions of the Companies Act,
1956. The fnancial statements have been prepared under the historical
cost convention, on the basis of a going concern, on accrual basis.
B) USE OF ESTIMATES
The preparation of fnancial statements requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of fnancial statements and reported amounts of revenue and
expenses of that year. Actual result could differ from these estimates.
Any revision to accounting estimates is recognized prospectively.
C) FIXED ASSETS
(i) All fxed assets are stated at cost less accumulated depreciation.
Expenditure during construction period in respect of new project/
expansion is allocated to the respective fxed assets on their being
ready for commercial use. Also refer Policy G and J below.
(ii) Impairment of Assets :
The company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to recoverable
amount and the impairment loss is charged to Proft and Loss account. If
at the Balance Sheet date there is any deduction that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to that effect.
D) INVESTMENTS
Long term Investments are stated at cost less provision, if any, for
other than temporary diminution in the value of investments.
E) INVENTORIES
Inventories are valued at lower of cost or net realisable value. Cost
of Raw Material is computed by using "Specifc Identifcation" method and
for other inventories "Weighted Average" method. The cost includes cost
of purchase, cost of conversion and other costs incurred in bringing
the inventories to their present location and condition.
F) REVENUE RECOGNITION
Sales are recognized as and when risks and rewards of ownership are
passed on to the buyer and ultimate realization of price is reasonably
certain. Export Sales are inclusive of deemed exports while domestic
sales are net of Value Added Tax. Claims and other incomes are
recognized based on virtual certainty of such claims and incomes.
G) BORROWING COST
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
upto the date when such asset is ready for its intended use. Other
borrowing costs are charged to Proft & Loss Account.
H) DEPRECIATION
Depreciation has been provided at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956. Plant &
Machinery and Electrical Installations have been, on technical
assessment, considered as continuous process plants as defned in the
said Schedule and depreciation has been provided accordingly.
Depreciation on the amounts capitalised on account of foreign exchange
fuctuations is provided prospectively over the residual life of the
assets.
Depreciation on Plant & Machinery and Electrical Installations is
provided on Straight Line Method. In respect of other assets
depreciation is provided on Written Down Value Method.
I) EMPLOYEE BENEFITS
Short Term employee beneft including accrued liability for Leave
Entitlement (other than termination benefts) which are payable within
12 months after the end of the period in which the employee render
service are paid/ provided during the year as per the Rules of the
Company.
Defned Contribution plans :
Companys contributions paid/ payable during the year to Provident and
Family Pension Funds, Superannuation Fund ( wherever opted) and ESIC
are recognized in the Proft And Loss Account.
Defned Benefts Plan:
The Employees Gratuity Fund Scheme covered by the Group Gratuity Cum
Life Assurance Policy of LIC of India is a defned beneft plan. The
present value of obligation is determined based on actuarial valuation
using projected Unit Credit Method which recognizes each period of
service as giving rise to additional amount of employee beneft
entitlement and measures each unit separately to be build up the fnal
obligation.
Termination Benefts:
Unamortized balance in respect of Voluntary Retirement Scheme payment
to be charged off within 5 years or 31.03.2010, whichever is earlier.
J) FOREIGN CURRENCY TRANSACITONS:
Transactions in Foreign Currency are recorded at the rate of exchange
in force at the date of transactions. Foreign Currency assets and
liabilities are stated at the rate of exchange prevailing at the year
end and resultant gains/losses are recognized in the proft and loss
account. Premium / Discount in respect of Forward Foreign Exchange
contracts is recognized over the life of the contracts.
In accordance with the AS-11 (Revised 2003), Foreign Currency loans
availed before 01.04.2004 for acquiring Fixed Assets are translated at
the Exchange Rates prevailing at the end of the year and Gains/Losses
of such translations are adjusted to the cost of Fixed Assets.
K) TAXATION
Income Tax expense comprises Current tax and deferred tax charge or
credit (refecting the tax effects of timing differences between
accounting income and taxable income for the year).
Deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that the assets can be realized in future; however
where there is unabsorbed depreciation or carry forward loss under
Taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to refect the amount that is reasonably / virtually certain as the case
may be to be realized.
Tax credit is recognized in respect of Minimum Alternative Tax (MAT) as
per the provisions of section 115JAA of the Income Tax Act, 1961 based
on evidence that the company will pay normal income tax within the
statutory time frame and is reviewed at each balance sheet date.
L) PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) the company has a present obligation as a result of a past event,
b) the probable outfow of resources is expected to settle the
obligation and
c) the amount of the obligation can be reliably estimated.
Where some or all of the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) a present obligation arising from a past event, when it is not
probable that an outfow of resources will be required to settle the
obligation.
b) a possible obligation, unless the probability of outfow of resources
is remote