Mar 31, 2015
1.1 Basis for Preparation of Financial Statements
The financial statements have been prepared on the historical cost
convention and based on the Generally Accepted Accounting Principles
(GAAP) and the Accounting Standards as referred under section 133 of
the Companies Act, 2013 read with rules 7 of the Companies (Accounts)
Rules, 2014, which have been adopted by the Company and disclosures are
made in accordance with the requirements of Schedule III of the
Companies Act, 2013 and according to Indian Accounting Standards. In
case of any deviations from applicable Accounting Standards, the same
have been specified/disclosed wherever applicable.
1.2 Use of estimates
The preparation of financial statements requires management to make
estimates and assumption that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and results of operations during the reported
period. Although, these estimates are based upon management's best
knowledge of current events and actions, whereas actual results could
differ from these estimates.
1.3 Fixed Assets
Fixed assets are stated at costs, which comprises of purchase
consideration and other directly attributable cost of bringing the
assets to its working condition for the intended use.
Pursuant to the enactment of Companies Act 2013, the company has
applied the estimated useful lives as specified in Schedule-II.
Accordingly the unamortized carrying value is being depreciated/
amortized over the revised/ remaining useful lives.
1.4 Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any asset including goodwill, may be impaired. If any
such indication exists, the carrying value of such assets is reduced to
its estimated recoverable amount and the amount of such impairment loss
is charged to the Statement of Profit & Loss. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, then such loss is reversed and the asset is restated
to that effect.
1.5 Investments
Investments are valued at costs unless there is a permanent fall in
their value as at the date of Balance Sheet.
1.6 Inventories
Inventories are valued at lower of cost or the net realizable value.
Finished goods and stock-in-process include conversion and other costs
incurred in bringing the inventories to their present location and
condition.
1.7 Revenue Recognition
Sales are inclusive of excise duty / customs duty and net of trade
discounts. Export sales include goods invoiced against confirmed orders
and cleared from excise and customs authorities. Revenue from job work
is accounted as and when on work being accepted by the customer.
Dividend income on investments is accounted for when the right to
receive the payment is established. Export incentives receivable on
exports made during the year, are recognized as income.
1.8 Employee Benefits
Provisions for gratuity and leave encashment, which are in the nature
of defined benefit plans, are provided as per the Payment of Gratuity
Act, as at the balance sheet date and include 413 employees who have
left the organization in the last financial year, there gratuity
amounting to Rs.122.45 lacs is yet to be paid. Contributions to
provident fund, which are defined contribution scheme, are charged to
the Statement of Profit and Loss when incurred. The Company has further
obligations beyond its monthly contributions to this fund amounting to
Rs. 369.58 Lacs.
1.9 Borrowing Costs
Borrowing costs directly attributable to acquisition, construction and
production of assets are capitalized as part of the cost of such asset
up to the date of completion. Other borrowing costs are recognized as
expenses in the period in which they are incurred and charged to the
Statement of Profit & Loss.
1.10 Research and Development
Revenue expenditure on Research & Development is included under the
natural heads of expenditure. Capital expenditure on Research &
Development is treated in the same manner as expenditure on other fixed
assets.
1.11 Lease
Leases where the Lessor retains substantially all the risks and rewards
of ownership of the leased assets, are classified as operating leases.
Operating lease payments are recognized as expenses in the Statement of
Profit and Loss as per the terms of the lease.
1.12 Taxes on Income
Provision for current income tax is made on the basis of the estimated
taxable income for the current accounting year computed in accordance
with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing difference between the income
accounted in financial statements and taxable income for the year, and
quantified using tax rates and laws enacted or substantively enacted as
on the Balance Sheet date.
1.13 Government Grants
Where grant or subsidy relates to an asset, its value is deducted in
arriving at the carrying amount of the related asset. Project capital
subsidy credited to capital reserve. Other government grants or
subsidies including export incentives are credited to the Statement of
Profit and Loss or deducted from related expenses.
1.14 Provision, Contingent Liabilities
Liabilities though contingent, are provided for if there are reasonable
prospects of such liabilities maturing. The other Contingent
Liabilities, which are not acknowledged as debt, are disclosed by way
of a note to the financial statements, but claims of frivolous nature
are ignored. Provisions, contingent liabilities and contingent assets
are reviewed at each Balance Sheet date.
1.15 Translation of Foreign Currency Items
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of the transactions. Current Assets and Current
Liabilities denominated in foreign currency are translated at the
exchange rate prevalent at the date of the Balance Sheet. The Gain /
loss is recognized in the Statement of Profit & Loss, except in cases
where they relate to the acquisition of fixed assets, in which case
they are adjusted to the carrying cost of such assets.
Mar 31, 2014
1.1 Basis for Preparation of Financial Statements
The financial statements have been prepared on the historical cost
convention basis. The Generally Accepted Accounting Principles (GAAP)
and the Accounting Standards referred under section 211(3C) of the
Companies Act, 1956 have been adopted by the Company and disclosures
made in accordance with the requirements of Schedule VI of the
Companies Act, 1956 and the Indian Accounting Standards and the
deviations from Accounting Standards have been specified wherever
applicable.
1.2 Use of estimates
The preparation of financial statements requires management to make
estimates and assumption that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and results of operations during the reported
period. Although these estimate based upon management''s best knowledge
of current events and actions, actual results could differ from these
estimates.
1.3 Fixed Assets
Fixed assets are stated at costs, which comprises of purchase
consideration and other directly attributable cost of bringing the
assets to its working condition for the intended use. Deprecation on
fixed assets is provided on straight-line method at the rates and in
the manner as prescribed in Schedule XIV to the Companies Act, 1956.
1.4 Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any asset including goodwill, may be impaired. If any
such indication exists, the carrying value of such assets is reduced to
its estimated recoverable amount and the amount of such impairment loss
is charged to Profit & Loss Account. If at the balance sheet date there
is an indication that a previously assessed impairment loss no longer
exists, then such loss is reversed and the asset is restated to that
effect.
1.5 Investments
Investments are valued at costs unless there is a permanent fall in
their value as at the date of Balance Sheet.
1.6 Inventories
Inventories are valued at lower of cost or estimated cost or net
realizable value however Rs. 16280.57 lacs being losses on foreign
exchange transaction have been adjusted in the current year. Finished
goods and stock-in-process include conversion and other costs incurred
in bringing the inventories to the present location and condition. In
the current year, Inventories also includes slow moving stock of Rs.
27269.26 lacs, which in the opinion of the management is fully
realizable over a period of 2-3 years only.
1.7 Revenue Recognition
Sales are inclusive of excise duty / customs duty and net of trade
discounts. Export sales include goods invoiced against confirmed orders
and cleared from excise and customs authorities.
Revenue from job work is accounted as and when incurred.
Dividend income on investments is accounted for when the right to
receive the payment is established.
Export incentives receivable on exports made during the year, are
recognized as income.
1.8 Employee Benefits
Provisions for gratuity and leave encashment, which are in the nature
of defined benefit plans, are provided as per the Payment of Gratuity
Act, as at the balance sheet date. and include 173 employees who have
left the organization in the last financial year, there gratuity
amounting to Rs.37.88 lacs is yet to be paid. Contributions to
provident fund, which are defined contribution scheme, are charged to
the profit and loss account as incurred. The company has further
obligations beyond its monthly contributions to this fund amounting to
Rs. 316.26 Lacs.
1.9 Borrowing Costs
Borrowing costs directly attributable to acquisition, construction and
production of assets are capitalized as a part of the cost of such
asset up to the date of completion. Other borrowing costs are
recognized as expenses in the period in which they are incurred and
charged to the Profit & Loss Account.
1.10 Research and Development
Revenue expenditure on Research & Development is included under the
natural heads of expenditure. Capital expenditure on Research &
Development is treated in the same manner as expenditure on other fixed
assets.
1.11 Lease
Leases where the lessor retains substantially all the risks and rewards
of ownership of the leased term, are classified as operating leases.
Operating lease payments are recognized as expenses in the profit and
loss account as per the terms of the lease.
1.12 Taxes on Income
Provision for current income tax is made on the basis of the estimated
taxable income for the current accounting year computed in accordance
with the provisions of the Income Tax Act, 1961. Deferred tax is
recognized on timing difference between the income accounted in
financial statements and taxable income for the year, and quantified
using tax rates and laws enacted or substantively enacted as on the
Balance Sheet date.
1.13 Government Grants
Where grant or subsidy relates to an asset, its value is deducted in
arriving at the carrying amount of the related asset. Project capital
subsidy credited to capital reserve. Other government grants or
subsidies including export incentives are credited to profit and loss
account or deducted from related expenses.
1.14 Provision, Contingent Liabilities
Liabilities though contingent, are provided for if there are reasonable
prospects of such liabilities maturing. The other Contingent
Liabilities, which are not acknowledged as debt, are disclosed by way
of note, but claims of frivolous nature are ignored. Provisions,
contingent liabilities and contingent assets are reviewed at each
Balance Sheet date.
1.15 Translation of Foreign Currency Items
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of the transactions. Current Assets and Current
Liabilities denominated in foreign currency are translated at the
exchange rate prevalent at the date of the Balance Sheet however the
balances of trade debtors and creditors which have not been translated
in the current year. The Accounting Standard 11- The Effect of Changes
in Foreign Exchange Rates has been accordingly not been complied with.
The Gain / loss is recognized in the Profit & Loss Account, except in
cases where they relate to the acquisition of fixed assets, in which
case they are adjusted to the carrying cost of such assets.
Mar 31, 2013
1.1 Basis for Preparation of Financial Statements
The financial statements have been prepared on the historical cost
convention basis. The Generally Accepted Accounting Principles (GAAP)
and the Accounting Standards referred under section 211 (3C) of the
Companies Act, 1956 have been adopted by the Company and disclosures
made in accordance with the requirements of Schedule VI of the
Companies Act, 1956 and the Indian Accounting Standards.
1.2 Use of estimates
The preparation of financial statements requires management to make
estimates and assumption that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and results of operations during the reported
period. Although these estimate based upon management''s best knowledge
of current events and actions, actual results could differ from these
estimates.
1.3 Fixed Assets
Fixed assets are stated at costs, which comprises of purchase
consideration and other directly attributable cost of bringing the
assets to its working condition for the intended use. Deprecation on
fixed assets is provided on straight-line method at the rates and in
the manner as prescribed in Schedule XIV to the Companies Act, 1956.
1.4 Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any asset including goodwill, may be impaired. If any
such indication exists, the carrying value of such assets is reduced to
its estimated recoverable amount and the amount of such impairment loss
is charged to Profit & Loss Account. If at the balance sheet date there
is an indication that a previously assessed impairment loss no longer
exists, then such loss is reversed and the asset is restated to that
effect.
1.5 Investments
Investments are valued at costs unless there is a permanent fall in
their value as at the date of Balance Sheet.
1.6 Inventories
Inventories are valued at lower of cost or estimated cost or net
realizable value. Finished goods and stock-in-process include
conversion and other costs incurred in bringing the inventories to the
present location and condition.
1.7 Revenue Recognition
Sales are inclusive of excise duty / customs duty and net of trade
discounts. Export sales include goods invoiced against confirmed orders
and cleared from excise and customs authorities. Revenue from job work
is accounted as and when incurred. Dividend income on investments is
accounted for when the right to receive the payment is established.
Export incentives receivable on exports made during the year, are
recognized as income.
1.8 Employee Benefits
Provision for gratuity and leave encashment, which are in the nature of
defined benefit plans, are provided based on actuarial valuations based
on projected unit credit method, as at the balance sheet date.
Contributions to provident fund, which are defined contribution scheme,
are charged to the profit and loss account as incurred. The company has
no further obligations beyond its monthly contributions to this fund.
1.9 Borrowing Costs
Borrowing costs directly attributable to acquisition, construction and
production of assets are capitalized as a part of the cost of such
asset up to the date of completion. Other borrowing costs are
recognized as expenses in the period in which they are incurred and
charged to the Profit & Loss Account.
1.10 Research and Development
Revenue expenditure on Research & Development is included under the
natural heads of expenditure. Capital expenditure on Research &
Development is treated in the same manner as expenditure on other fixed
assets.
1.11 Lease
Leases where the lessor retains substantially all the risks and rewards
of ownership of the leased term, are classified as operating leases.
Operating lease payments are recognized as expenses in the profit and
loss account as per the terms of the lease.
1.12 Taxes on Income
Provision for current income tax is made on the basis of the estimated
taxable income for the current accounting year computed in accordance
with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing difference between the income
accounted in financial statements and taxable income for the year, and
quantified using tax rates and laws enacted or substantively enacted as
on the Balance Sheet date are accounted for on the basis of Accounting
Standard (AS-22).
1.13 Government Grants
Where grant or subsidy relates to an asset, its value is deducted in
arriving at the carrying amount of the related asset. Project capital
subsidy credited to capital reserve. Other government grants or
subsidies including export incentives are credited to profit and loss
account or deducted from related expenses.
1.14 Provision and Contingent Liabilities
Liabilities though contingent, are provided for if there are reasonable
prospects of such liabilities maturing. The other Contingent
Liabilities, which are not acknowledged as debt, are disclosed by way
of note, but claims of frivolous nature are ignored. Provisions,
contingent liabilities and contingent assets are reviewed at each
Balance Sheet date.
1.15 Translation of Foreign Currency Items
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of the transactions. Current Assets and Current
Liabilities denominated in foreign currency are translated at the
exchange rate prevalent at the date of the Balance Sheet. The resultant
gain / loss is recognized in the Profit & Loss Account, except in cases
where they relate to the acquisition of fixed assets, in which case
they are adjusted to the carrying cost of such assets. The Forward
Contract including derivatives contract entered into to hedge foreign
currency risk on unexpected firm commitments and highly probable
forecast transactions recognized in the financial statements
accordingly as per Accounting Standards issued by the Institute of
chartered Accountants of India, exchange difference arising on such
contracts are recognized in the period.in which they arise. Gain and
losses arising on account of such transaction are recognized as income/
expenses in the Profit and Loss Account.
Mar 31, 2012
1.1 Basis for Preparation of Financial Statements
The financial statements have been prepared on the historical cost
convention basis. The Generally Accepted Accounting Principles (GAAP)
and the Accounting Standards referred under section 211(3C) of the
Companies Act, 1956 have been adopted by the Company and disclosures
made in accordance with the requirements of Schedule VI of the
Companies Act, 1956 and the Indian Accounting Standards.
1.2 Use of estimates
The preparation of financial statements requires management to make
estimates and assumption that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and results of operations during the reported
period. Although these estimate based upon management's best knowledge
of current events and actions, actual results could differ from these
estimates.
1.3 Fixed Assets
Fixed assets are stated at costs, which comprises of purchase
consideration and other directly attributable cost of bringing the
assets to its working condition for the intended use. Deprecation on
fixed assets is provided on straight-line method at the rates and in
the manner as prescribed in Schedule XIV to the Companies Act, 1956.
1.4 Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any asset including goodwill, may be impaired. If any
such indication exists, the carrying value of such assets is reduced to
its estimated recoverable amount and the amount of such impairment loss
is charged to Profit & Loss Account. If at the balance sheet date there
is an indication that a previously assessed impairment loss no longer
exists, then such loss is reversed and the asset is restated to that
effect.
1.5 Investments
Investments are valued at costs unless there is a permanent fall in
their value as at the date of Balance Sheet.
1.6 Inventories
Inventories are valued at lower of cost or estimated cost or net
realizable value. Finished goods and stock-in-process include
conversion and other costs incurred in bringing the inventories to the
present location and condition.
1.7 Revenue Recognition
Sales are inclusive of excise duty / customs duty and net of trade
discounts. Export sales include goods invoiced against confirmed orders
and cleared from excise and customs authorities.
Revenue from job work is accounted as and when incurred. Dividend
income on investments is accounted for when the right to receive the
payment is established. Export incentives receivable on exports made
during the year, are recognized as income.
1.8 Employee Benefits
Provision for gratuity and leave encashment, which are in the nature of
defined benefit plans, are provided based on actuarial valuations based
on projected unit credit method, as at the balance sheet date.
Contributions to provident fund, which are defined contribution scheme,
are charged to the profit and loss account as incurred. The company has
no further obligations beyond its monthly contributions to this fund.
1.9 Borrowing Costs
Borrowing costs directly attributable to acquisition, construction and
production of assets are capitalized as a part of the cost of such
asset up to the date of completion. Other borrowing costs are
recognized as expenses in the period in which they are incurred and
charged to the Profit & Loss Account.
1.10 Research and Development
Revenue expenditure on Research & Development is included under the
natural heads of expenditure. Capital expenditure on Research &
Development is treated in the same manner as expenditure on other fixed
assets.
1.11 Lease
Leases where the lessor retains substantially all the risks and rewards
of ownership of the leased term, are classified as operating leases.
Operating lease payments are recognized as expenses in the profit and
loss account as per the terms of the lease.
1.12 Taxes on Income
Provision for current income tax is made on the basis of the estimated
taxable income for the current accounting year computed in accordance
with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing difference between the income
accounted in financial statements and taxable income for the year, and
quantified using tax rates and laws enacted or substantively enacted as
on the Balance Sheet date are accounted for on the basis of Accounting
Standard (AS-22).
1.13 Government Grants
Where grant or subsidy relates to an asset, its value is deducted in
arriving at the carrying amount of the related asset. Project capital
subsidy credited to capital reserve. Other government grants or
subsidies including export incentives are credited to profit and loss
account or deducted from related expenses.
1.14 Provision, Contingent Liabilities
Liabilities though contingent, are provided for if there are reasonable
prospects of such liabilities maturing. The other Contingent
Liabilities, which are not acknowledged as debt, are disclosed by way
of note, but claims of frivolous nature are ignored. Provisions,
contingent liabilities and contingent assets are reviewed at each
Balance Sheet date.
1.15 Translation of Foreign Currency Items
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of the transactions. Current Assets and Current
Liabilities denominated in foreign currency are translated at the
exchange rate prevalent at the date of the Balance Sheet. The resultant
gain / loss is recognized in the Profit & Loss Account, except in cases
where they relate to the acquisition of fixed assets, in which case
they are adjusted to the carrying cost of such assets. The Forward
Contact including derivatives contract entered into to hedge foreign
currency risk on unexpected firm commitments and highly probable
forecast transactions recognized in the financial statements
accordingly as per Accounting Standards issued by the Institute of
chartered Accountants of India, exchange difference arising on such
contracts are recognized in the period in which they arise. Gain and
losses arising on account of such transaction are recognized as income/
expenses in the Profit and Loss Account.
2.1 Issued, Subscribed and Paid up Capital
25187925 (Pr. Yr. 25187925) Equity Shares of X 10/- each fully paid up.
Of the above 5117330 (Pr. Yr. 5117330) Equity Shares allotted as fully
paid up by way of Bonus Shares and 7147835 (Pr. Yr. 7147835) Equity
Shares allotted as fully paid up pursuant to a contract without payment
being received in cash.
2.2 Company has allotted 1250000 warrants on a preferential basis to
promoter group on 06.06.2010 upon payment of exercise price of Rs. 245.73
per warrant, as reduced by the 25% upfront money paid at the time of
allotment of warrants. The last date for the exercise of the conversion
right of the warrant holder was December 6, 2011 (within 18 months from
the date of their allotment). The warrant holders (Promoter's Group
Entity) have not exercised their option to convert the aforesaid
1250000 warrant in to equity shares of the company. Therefore the
amount of Rs. 767.91 lacs being the initial 25% of the total
consideration of Rs. 3071.63 lacs received by the company have been
forfeited.
2.3 Equity Shares carry voting rights at the General Meeting of the
Company and are entitled to dividend and to participate in surplus, if
any, in the event of winding up.
3.1 Term Loan against First Pari-passu charge with other banks on
present & future fixed assets of the company other than those
exclusively financed by any other banks/ financial institutions &
second pari-passu charge with other banks on all present & future
current assets of the company & personal guarantee of Sh. A. K. Bansal
& Smt. Anju Bansal, directors, their relatives & corporate guarantee of
group companies / others - The loan is collaterally secured by
equitable mortgage of land & building of associate concerns / others on
pari-passu basis with other member banks.
3.2 Loan from banks for purchase of vehicle (Total outstanding Rs. 78.80
Lacs, Previous year Rs. 61.06 lacs are secured against the vehicle
purchased out of those loans. The loans are repayable, in monthly
installments.
4.1 Working Capital loans Comprising of Export Packing Credit, FDBP
etc. from Banks, secured by hypothecation of stocks, book debts, bills
and personal / corporate guarantee of wholetime directors / Group
Company / others. The limits are also collaterally secured by immovable
properties owned by directors and associate concerns / others. The loan
is collateraly secured by way of equitable mortgage on pari-passu basis
with other banks of all present & future fixed assets of the company.
Mar 31, 2011
01. Basis for Preparation of Financial Statements
The financial statements have been prepared on the historical cost
convention basis. The Generally Accepted Accounting Principles (GAAP)
and the Accounting Standards referred under section 211(3C) of the
Companies Act, 1956 have been adopted by the Company and disclosures
made in accordance with the requirements of Schedule VI of the
Companies Act, 1956 and the Indian Accounting Standards.
02. Fixed Assets
a) Fixed assets are stated at costs, which comprises of purchase
consideration and other directly attributable cost of bringing the
assets to its working condition for the intended use.
b) Deprecation on fixed assets is provided on straight- line method at
the rates and in the manner as prescribed in Schedule XIV to the
Companies Act, 1956.
03. Translation of Foreign Currency Items
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of the transactions. Current Assets and Current
Liabilities denominated in foreign currency are translated at the
exchange rate prevalent at the date of the Balance Sheet. The resultant
gain / loss is recognized in the Profit & Loss Account, except in cases
where they relate to the acquisition of fixed assets, in which case
they are adjusted to the carrying cost of such assets. The Forward
Contract including derivatives contract entered into to hedge foreign
currency risk on unexpected firm commitments and highly probable
forecast transactions recognized in the financial statements
accordingly as per Accounting Standards issued by the Institute of
chartered Accountants of India, exchange difference arising on such
contracts are recognized in the period in which they arise. Gain and
losses arising on account of such transaction are recognized as income/
expenses in the Profit and Loss Account.
04. Research and Development
Revenue expenditure on Research & Development is included under the
natural heads of expenditure. Capital expenditure on Research &
Development is treated in the same manner as expenditure on other fixed
assets.
05. Valuation of Inventory
a) Closing stock of finished goods is valued at the lower of estimated
cost or net realizable value.
b) Closing stock of semi-finished goods is valued at estimated cost.
c) Inventory of raw material and packing material is valued at cost.
06. Investments
Investments are valued at costs unless there is a permanent fall in
their value as at the date of Balance Sheet.
07. Retirement Benefits
Encashment of accrued leave salary and retirement benefits to employees
are provided on accrual basis.
08. Contingent Liability
Liabilities though contingent, are provided for if there are reasonable
prospects of such liabilities maturing. The other Contingent
Liabilities, which are not acknowledged as debt are disclosed by way of
note, but claims of frivolous nature are ignored. Provisions,
contingent liabilities and contingent assets are reviewed at each
Balance Sheet date.
09. Revenue Recognition
a. Sales are inclusive of excise duty / customs duty and net of trade
discounts. Export sales include goods invoiced against confirmed orders
and cleared from excise and customs authorities.
b. Export incentives receivable on exports made during the year, are
recognized as income.
c. Other items of revenue including export benefits are recognized in
accordance with the Accounting Standard (AS-9). Accordingly, wherever
there are uncertainties in the ascertainment / realization of income
such as interest from customers, the same is not accounted for.
10. Taxes on Income
a. Provision for current income tax is made on the basis of the
estimated taxable income for the current accounting year computed in
accordance with the provisions of the Income Tax Act, 1961.
b. Deferred tax is recognized on timing difference between the income
accounted in financial statements and taxable income for the year, and
quantified using tax rates and laws enacted or substantively enacted as
on the Balance Sheet date are accounted for on the basis of Accounting
Standard (AS-22)
11. Borrowing Costs
Borrowing costs directly attributable to acquisition, construction and
production of assets are capitalized as a part of the cost of such
asset up to the date of completion. Other borrowing costs are
recognized as expenses in the period in which they are incurred and
charged to the Profit & Loss Account.
12. Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any asset including goodwill, may be impaired. If any
such indication exists, the carrying value of such assets is reduced to
its estimated recoverable amount and the amount of such impairment loss
is charged to Profit & Loss Account. If at the balance sheet date there
is an indication that a previously assessed impairment loss no longer
exists, then such loss is reversed and the asset is restated to that
effect.
13. Segment accounting
Segment accounting policies are in line with the accounting policies of
the company. In addition, the following specific accounting policies
have been followed for segment reporting:
a. Segment revenue includes sales and other income directly
identifiable with/ allocable to the segment.
b. Expenses that are directly identifiable with / allocable to segment
are considered for determining the segment results.
c. Segment assets and liabilities include those directly identifiable
with respective segments. Unallocable assets and liabilities represent
the assets and liabilities that relate to the company as a whole and
not allocable to any segment.
Mar 31, 2010
1. Basis for Preparation of Financial Statements
The financial statements have been prepared on the historical cost
convention basis. The Generally Accepted Accounting Principles (GAAP)
and the Accounting Standards referred under section 211(3C) of the
Companies Act, 1956 have been adopted by the Company and disclosures
made in accordance with the requirements of Schedule VI of the
Companies Act, 1956 and the Indian Accounting Standards.
2. Fixed Assets
a) Fixed assets are stated at costs, which comprises of purchase
consideration and other directly attributable cost of bringing the
assets to its working condition for the intended use.
b) Deprecation on fixed assets is provided on straight-line method at
the rates and in the manner as prescribed in Schedule XIV to the
Companies Act, 1956.
3. Translation of Foreign Currency Items
Transactions in foreign currency are recorded at the rate of exchange
in force on the date of the transactions. Current Assets and Current
Liabilities denominated in foreign currency are translated at the
exchange rate prevalent at the date of the Balance Sheet. The resultant
gain / loss is recognized in the Profit & Loss Account, except in cases
where they relate to the acquisition of fixed assets, in which case
they are adjusted to the carrying cost of such assets. The Forward
Contact including derivatives contract entered into to hedge foreign
currency risk on unexpected firm commitments and highly probable
forecast transactions recognized in the financial statements
accordingly as per Accounting Standards issued by the Institute of
chartered Accountants of India, exchange difference arising on such
contracts are recognized in the period in which they arise. Gain and
losses arising on account of such transaction are recognized as income/
expenses in the Profit and Loss Account.
4. Research and Development
Revenue expenditure on Research & Development is included under the
natural heads of expenditure. Capital expenditure on Research &
Development is treated in the same manner as expenditure on other fixed
assets.
5. Valuation of Inventory
a) Closing stock of finished goods is valued at the lower of estimated
cost or net realizable value.
b) Closing stock of semi-finished goods is valued at estimated cost.
c) Inventory of raw material and packing material is valued at cost.
6. Investments
Investments are valued at costs unless there is a permanent fall in
their value as at the date of Balance Sheet.
7. Retirement Benefits
Encashment of accrued leave salary and retirement benefits to employees
are provided on accrual basis.
8. Contingent Liability
Liabilities though contingent, are provided for if there are reasonable
prospects of such liabilities maturing. The other Contingent
Liabilities, which are not acknowledged as debt are disclosed by way of
note, but claims of frivolous nature are ignored. Provisions,
contingent liabilities and contingent assets are reviewed at each
Balance Sheet date.
9. Revenue Recognition
a. Sales are inclusive of excise duty / customs duty and net of trade
discounts. Export sales include goods invoiced against confirmed orders
and cleared from excise and customs authorities.
b. Export incentives receivable on exports made during the year, are
recognized as income.
c. Other items of revenue including export benefits are recognized in
accordance with the Accounting Standard (AS-9). Accordingly, wherever
there are uncertainties in the ascertainment / realization of income
such as interest from customers, the same is not accounted for.
10. Taxes on Income
a. Provision for current income tax is made on the basis of the
estimated taxable income for the current accounting year computed in
accordance with the provisions of the Income Tax Act, 1961.
b. Deferred tax is recognized on timing difference between the income
accounted in financial statements and taxable income for the year, and
quantified using tax rates and laws enacted or substantively enacted as
on the Balance Sheet date are accounted for on the basis of Accounting
Standard (AS-22)
11. Borrowing Costs
Borrowing costs directly attributable to acquisition, construction and
production of assets are capitalized as a part of the cost of such
asset up to the date of completion. Other borrowing costs are
recognized as expenses in the period in which they are incurred and
charged to the Profit & Loss Account.
12. Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that any asset including goodwill, may be impaired. If any
such indication exists, the carrying value of such assets is reduced to
its estimated recoverable amount and the amount of such impairment loss
is charged to Profit & Loss Account. If at the balance sheet date there
is an indication that a previously assessed impairment loss no longer
exists, then such loss is reversed and the asset is restated to that
effect.
13. Segment accounting
Segment accounting policies are in line with the accounting policies of
the company. In addition, the following specific accounting policies
have been followed for segment reporting:
a. Segment revenue includes sales and other income directly
identifiable with/ allocable to the segment.
b. Expenses that are directly identifiable with / allocable to segment
are considered for determining the segment results.
c. Segment assets and liabilities include those directly identifiable
with respective segments. Unallocable assets and liabilities represent
the assets and liabilities that relate to the company as a whole and
not allocable to any segment.