Mar 31, 2015
BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements have been prepared under the historical cost
convention on accrual basis to comply in all material aspects and in
accordance with generally accepted accounting principles in India and
the relevant provisions of the Companies Act, 2013. The accounting
policies have been consistently applied by the Company unless otherwise
stated.
(A) USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reporting amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between actual results and estimates are recognized in the period in
which the results are known/ materialized.
(B) RECOGNITION OF REVENUE AND EXPENDITURE :
(i) Revenues/Incomes and Costs/ Expenditures are generally accounted on
accrual, as they are earned or incurred.
(ii) Sales are recognized when significant risks and rewards of
ownership have been transferred to the buyer. In case of development
projects / Research income is recognized on achieving the set
milestones or targets.
(iii) Carbon credit revenue is recognized on achieving the set
milestones or targets as prescribed by an agency and where reasonable
assessment of certainty of future economic benefits.
(iv) Export incentives under various schemes are recognized as Income
on certainty of realization.
(v) Sale of realizable scrap is accounted on receipt basis.
(vi) Insurance claims are accounted on accrual basis on admission of
claims.
(vii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the applicable rate of
interest.
(C) FIXED ASSETS:
(i) Fixed Assets (including capital work-in- progress) are accounted at
cost less accumulated depreciation net of modvat credit.
(ii) Constructed and fabricated capital assets are capitalized as and
when the plant is put into commercial production.
(iii) Expenditure during construction period including interest on
loans borrowed is included in the Capital cost.
(iv) Significant items of separate identity capable of enhancing life
and capacity of the machinery are capitalized at cost inclusive of
installation cost.
(D) DEPRECIATION
(i) The depreciable amount of an asset is the cost of an asset or other
amount substituted for cost less residual value. Depreciation is
provided in accordance with Schedule II of the Companies Act, 2013, as
amended treating plant and machinery as continuous process plant.
(ii) Depreciation on assets costing less than Rs.5000/- is provided at
100%.
(E) VOLUNTARY RETIREMENT SCHEME (VRS)
(i) The Company has introduced Voluntary Retirement Scheme in
accordance with BIFR Modified Draft Rehabilitation Scheme. The Company
followed the policy guidelines issued by BIFR by amortizing the VRS
payment over a period of 3 years.
(F) REFURBISHMENT EXPENDITURE
The company has followed the policy of amortizing refurbishment
expenditure met on Plant and Machinery over a period of five years from
the year of expenditure in accordance with the BIFR Modified Draft
Rehabilitation Scheme.
(G) INVENTORIES:
(i) The closing stock of raw materials, packing material, stores and
spares are valued at cost by adopting weighted average method or net
realizable value whichever is less. Stock-in process (intermediate
products) and finished goods are valued at cost or net realizable value
whichever is lower.
Cost of Stock-in-process includes costs of conversion and other costs
incurred in bringing the inventories to their present location and
condition.
(ii) Excise duty payable on finished goods manufactured but not removed
is included in the Valuation of such stocks.
(iii) By-products are valued at NIL value.
(H) EMPLOYEE BENEFITS:
a. Short Term Employee Benefits:
Undiscounted value of short term employee benefits such as salaries,
wages, short term compensated absences, bonus, ex-gratia and
performance incentives are recognized as expense in the period in which
the employees render the related service.
b. Post Employment Benefits
Defined Contribution plans:
Contribution to defined contribution plans being Employee Provident
Fund, Employee State Insurance, Employee Insurance Scheme etc. are
recognized in the Statement of profit and loss during the period in
which the employees render the related services.
Defined Benefit Plans:
Liabilities in respect of defined benefit plans being Gratuity and
Leave encashment are determined based on an actuarial valuation using
the projected unit credit method. Actuarial gains or losses are
recognized immediately in the Statement of Profit and Loss account.
(I) PROVISION FOR DOUBTFUL DEBTS:
Provision for doubtful debts/loans/advances:
Provision for doubtful debts is made in the books in respect of debtors
outstanding for more than 3 years except Govt. Debts. In respect of
cases under Civil suits/tribunals for recovery of dues which are yet to
be decided, provisions are made to the extent considered necessary by
the Management.
(J) FOREIGN CURRENCY TRANSACTIONS:
(i) Foreign currency transactions are accounted for at the exchange
rates prevailing on the date of transaction.
(ii) Fixed assets are translated at the exchange rates on the date of
transaction. The exchange difference in each financial year, up to the
period of settlement is taken to Statement of profit and loss.
(iii) The monetary items in foreign currencies are translated at the
closing exchange rate on the date of balance sheet and difference in
translation and realized gains/losses thereon adjusted in the Statement
of profit and loss.
(K) BORROWING COST:
Borrowing costs relating to acquisition of fixed assets which takes
substantial period of the time to get ready for its intended use are
included to the extent they relate to the period till such assets are
ready to be put to use. All other borrowing costs are charged to
revenue. Borrowing costs consist of interest and other costs that the
company incurs in connection with borrowing of funds on acquisition of
fixed assets are capitalized as part of the cost of asset.
(L) TAXES ON INCOME:
(i) The Current charge for income taxes is calculated in accordance
with the relevant tax regulations applicable to the Company on the
estimated total income for the year.
(ii) Deferred tax assets and liabilities are recognized on timing
differences between taxable income and accounting income, originating
in one period and expected to reverse in subsequent periods. Deferred
tax asset is recognized and carried forward only to the extent that
there is a virtual certainty that the asset will be realized in future.
(iii) Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted or substantively enacted as
on the Balance Sheet date.
(M) SEGMENT REPORTING:
The company's operation mainly comprises manufacturing of PTFE
(Suspension & Emulsion). These activities constitutes the primary
segment i.e. manufacturing in chemicals.
(N) EARNING PER SHARE:
Basic Earnings Per Share is calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating the diluted earnings per share, the net
profit or loss for the period attributable to equity share holders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
(O) IMPAIRMENT OF ASSETS:
The carrying amounts of assets are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any
such an indication exists, then the carrying value is reduced to the
higher of the net selling price or the value in use. The value in use
is the present value of estimated future net income expected from use
of the asset.
(P) PROVISIONS / CONTINGENT LIABILITIES:
Provisions are recognized, when the Company has a present legal or
constructive obligation, as a result of past events, for which it is
probable that an out flow of economic benefits will be required to
settle the obligation and a reliable estimate can be made for the
amount of the obligation. The disclosure is made for all present or
possible obligations that may but probably will not require outflow as
contingent liability in the financial statements.
Mar 31, 2014
1(A) USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reporting amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between actual results and estimates are recognized in the period in
which the results are known/ materialized. 1(B) RECOGNITION OF REVENUE
AND EXPENDITURE :
(i) Revenues/Incomes and Costs/ Expenditures are generally accounted on
accrual, as they are earned or incurred.
(ii) Sales are recognized when significant risks and rewards of
ownership have been transferred to the buyer. In case of development
projects / Research income is recognized on achieving the set
milestones or targets.
(iii) Carbon credit revenue is recognized on achieving the set
milestones or targets as prescribed by an agency and where reasonable
assessment of certainty of future economic benefits.
(iv) Export incentives under various schemes are recognized as Income
on certainty of realization.
(v) Sale of realizable scrap is accounted on receipt basis.
(vi) Insurance claims are accounted on accrual basis on admission of
claims.
(vii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the applicable rate of
interest.
1(C) FIXED ASSETS:
(i) Fixed Assets (including capital work-in- progress) are accounted at
cost less accumulated depreciation net of modvat credit.
(ii) Constructed and fabricated capital assets are capitalised as and
when the plant is put into commercial production.
(iii) Expenditure during construction period including interest on
loans borrowed is included in the Capital cost.
(iv) Significant items of separate identity capable of enhancing life
and capacity of the machinery are capitalised at cost inclusive of
installation cost.
1(D) DEPRECIATION
(i) Depreciation is provided on Straight-Line Method in accordance with
Schedule XIV of the Companies Act, 1956, as amended treating plant and
machinery as continuous process plant.
(ii) Depreciation on assets costing less than Rs.5000/- is provided at
100%.
1(E) VOLUNTARY RETIREMENT SCHEME (VRS)
(i) The Company has introduced Voluntary Retirement Scheme in
accordance with BIFR Modified Draft Rehabilitation Scheme. The Company
followed the policy guidelines issued by BIFR by amortizing the VRS
payment over a period of 3 years.
1 (F) REFURBISHMENT EXPENDITURE
The company has followed the policy of amortizing refurbishment
expenditure met on Plant and Machinery over a period of five years from
the year of expenditure in accordance with the BIFR Modified Draft
Rehabilitation Scheme.
1(G) INVENTORIES:
(i) The closing stock of raw materials, packing material, stores and
spares are valued at cost by adopting weighted average method or net
realizable value whichever is less. Stock-in process (intermediate
products) and finished goods including CERs are valued at cost or net
realizable value whichever is lower. Cost of Stock-in-process includes
costs of conversion and other costs incurred in bringing the
inventories to their present location and condition.
(ii) Excise duty payable on finished goods manufactured but not removed
is included in the Valuation of such stocks.
(iii) By-products are valued at NIL value.
1 (H) EMPLOYEE BENEFITS:
a. Short Term Employee Benefits: Undiscounted value of short term
employee benefits such as salaries, wages, short term compensated
absences, bonus, ex-gratia and performance incentives are recognized as
expense in the period in which the employees render the related service
b. Post Employment Benefits Defined Contribution plans:
Contribution to defined contribution plans being Employee Provident
Fund, Employee State Insurance, Employee Insurance Scheme etc. are
recognized in the Statement of profit and loss during the period in
which the employees render the related services.
Defined Benefit Plans:
Liabilities in respect of defined benefit plans being Gratuity and
Leave encashment are determined based on an actuarial valuation using
the projected unit credit method. Actuarial gains or losses are
recognized immediately in the Statement of Profit and Loss account.
1(I) PROVISION FOR DOUBTFUL DEBTS: Provision for doubtful
debts/loans/advances:
Provision for doubtful debts is made in the books in respect of debtors
outstanding for more than 3 years except Govt. Debts. In respect of
cases under Civil suits/tribunals for recovery of dues which are yet to
be decided, provisions are made to the extent considered necessary by
the Management. 1(J) FOREIGN CURRENCY TRANSACTIONS:
(i) Foreign currency transactions are accounted for at the exchange
rates prevailing on the date of transaction.
(ii) Fixed assets are translated at the exchange rates on the date of
transaction. The exchange difference in each financial year, up to the
period of settlement is taken to Statement of profit and loss.
(iii) The monetary items in foreign currencies are translated at the
closing exchange rate on the date of balance sheet and difference in
translation and realized gains/losses thereon adjusted in the Statement
of profit and loss.
1(K) BORROWING COST:
Borrowing costs relating to acquisition of fixed assets which takes
substantial period of the time to get ready for its intended use are
included to the extent they relate to the period till such assets are
ready to be put to use. All other borrowing costs are charged to
revenue. Borrowing costs consist of interest and other costs that the
company incurs in connection with borrowing of funds on acquisition of
fixed assets are capitalised as part of the cost of asset.
1(L) TAXES ON INCOME:
(i) The Current charge for income taxes is calculated in accordance
with the relevant tax regulations applicable to the Company on the
estimated total income for the year.
(ii) Deferred tax assets and liabilities are recognized on timing
differences between taxable income and accounting income, originating
in one period and expected to reverse in subsequent periods. Deferred
tax asset is recognized and carried forward only to the extent that
there is a virtual certainty that the asset will be realized in future.
(iii) Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted or substantively enacted as
on the Balance Sheet date.
1(M) SEGMENT REPORTING:
The company''s operation mainly comprises manufacturing of PTFE
(Suspension & Emulsion). These activities constitutes the primary
segment i.e. manufacturing in chemicals.
1(N) EARNING PER SHARE:
Basic Earnings Per Share is calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating the diluted earnings per share, the net
profit or loss for the period attributable to equity share holders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
1(O) IMPAIRMENT OF ASSETS:
The carrying amounts of assets are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any
such an indication exists, then the carrying value is reduced to the
higher of the net selling price or the value in use. The value in use
is the present value of estimated future net income expected from use
of the asset.
1 (P) PROVISIONS / CONTINGENT LIABILITIES: Provisions are recognized,
when the Company has a present legal or constructive obligation, as a
result of past events, for which it is probable that an out flow of
economic benefits will be required to settle the obligation and a
reliable estimate can be made for the amount of the obligation. The
disclosure is made for all present or possible obligations that may but
probably will not require outflow as contingent liability in the
financial statements.
Mar 31, 2013
1(A) USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reporting amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between actual results and estimates are recognized in the period in
which the results are known/ materialized.
1(B) RECOGNITION OF REVENUE AND EXPENDITURE :
(i) Revenues/Incomes and Costs/Expenditures are generally accounted on
accrual, as they are earned or incurred.
(ii) Sales are recognized when significant risks and rewards of
ownership have been transferred to the buyer. In case of development
projects / Research income is recognized on achieving the set
milestones or targets.
(iii) Carbon credit revenue is recognized on achieving the set
milestones or targets as prescribed by an agency and where reasonable
assessment of certainty of future economic benefits.
(iv) Export incentives under various schemes are recognized as Income
on certainty of realization.
(v) Sale of realizable scrap is accounted on receipt basis.
(vi) Insurance claims are accounted on accrual basis on admission of
claims.
(vii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the applicable rate of
interest.
1(C) FIXED ASSETS:
(i) Fixed Assets (including capital work-in- progress) are accounted at
cost less accumulated depreciation net of modvat credit.
(ii) Constructed and fabricated capital assets are capitalised as and
when the plant is put into commercial production.
(iii) Expenditure during construction period including interest on
loans borrowed is included in the Capital cost.
(iv) Significant items of separate identity capable of enhancing life
and capacity of the machinery are capitalised at cost inclusive of
installation cost.
1(D) DEPRECIATION
(i) Depreciation is provided on Straight-Line Method in accordance with
Schedule XIV of the Companies Act, 1956, as amended treating plant and
machinery as continuous process plant.
(ii) Depreciation on assets costing less than Rs.5000/- is provided at
100%.
1(E) VOLUNTARY RETIREMENT SCHEME (VRS)
(i) The Company has introduced Voluntary Retirement Scheme in
accordance with BIFR Modified Draft Rehabilitation Scheme. The Company
followed the policy guidelines issued by BIFR by amortizing the VRS
payment over a period of 3 years.
1(F) REFURBISHMENT EXPENDITURE
The company has followed the policy of amortizing refurbishment
expenditure met on Plant and Machinery over a period of five years from
the year of expenditure in accordance with the BIFR Modified Draft
Rehabilitation Scheme.
1(G) INVENTORIES:
(i) The closing stock of raw materials, packing material stores and
spares are valued at cost by adopting weighted average method or net
realizable value whichever is less. Stock-in process (intermediate
products) and finished goods including CERs are valued at cost or net
realizable value whichever is lower.
Cost of Stock-in-process includes costs of conversion and other costs
incurred in bringing the inventories to their present location and
condition.
(ii) Excise duty payable on finished goods manufactured but not removed
is included in the Valuation of such stocks.
(iii) By-products are valued at NIL value.
1(H) EMPLOYEE BENEFITS:
a. Short term employee benefits:
Undiscounted value of short term employee benefits such as salaries,
wages, short term compensated absences, bonus, ex-gratia and
performance incentives are recognized as expense in the period in which
the employees render the related service
b. Post Employment Benefits
Defined Contribution plans: Contribution to defined contribution plans
being Employee Provident Fund, Employee State Insurance, Employee
Insurance Scheme etc. are recognized in the Statement of profit and
loss during the period in which the employees render the related
services.
Defined Benefit Plans: Liabilities in respect of defined benefit plans
being Gratuity and Leave encashment are determined based on an
actuarial valuation using the projected unit credit method. Actuarial
gains or losses are recognized immediately in the Statement of Profit
and Loss account.
1(I) PROVISION FOR DOUBTFUL DEBTS:
Provision for doubtful debts/loans/advances:
Provision for the doubtful debts is made in the books in respect of
debtors outstanding for more than 3 years except Govt. Debts. In
respect of cases under Civil suits/tribunals for recovery of dues which
are yet to be decided, provisions are made to the extent considered
necessary by the Management.
1(J) FOREIGN CURRENCY TRANSACTIONS:
(i) Foreign currency transactions are accounted for at the exchange
rates prevailing on the date of transaction.
(ii) Fixed assets are translated at the exchange rates on the date of
transaction. The exchange difference in each financial year, up to the
period of settlement is taken to Statement of profit and loss.
(iii) The monetary items in foreign currencies are translated at the
closing exchange rate on the date of balance sheet and difference in
translation and realized gains/losses thereon adjusted in the Statement
of profit and loss.
1(K) BORROWING COST:
Borrowing costs relating to acquisition of fixed assets which takes
substantial period of the time to get ready for its intended use are
included to the extent they relate to the period till such assets are
ready to be put to use, All other borrowing costs are charged to
revenue. Borrowing costs consists of interest and other costs that the
company incurs in connection with borrowing of funds on acquisition of
fixed assets are capitalised as part of the cost of asset.
1(L) TAXES ON INCOME:
(i) The Current charge for income taxes is calculated in accordance
with the relevant tax regulations applicable to the company on the
estimated total income for the year.
(ii) Deferred tax assets and liabilities are recognized on timing
differences between taxable income and accounting income, originating
in one period and expected to reverse in subsequent periods. Deferred
tax asset is recognized and carried forward only to the extent that
there is a virtual certainty that the asset will be realized in future.
(iii) Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted or substantively enacted as
on the Balance Sheet date.
1(M) SEGMENT REPORTING:
The company''s operation mainly comprises manufacturing of PTFE
(Suspension & Emulsion). These activities constitutes the primary
segment i.e. manufacturing in chemicals.
1(N)EARNING PER SHARE:
Basic Earnings Per Share is calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating the diluted earnings per share, the net
profit or loss for the period attributable to equity share holders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
1(O) IMPAIRMENT OF ASSETS:
The carrying amounts of assets are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any
such an indication exists, then the carrying value is reduced to the
higher of the net selling price or the value in use. The value in use
is the present value of estimated future net income expected from use
of the asset.
1(P) PROVISIONS / CONTINGENT LIABILITIES:
Provisions are recognized, when the company has a present legal or
constructive obligation, as a result of past events, for which it is
probable that an out flow of economic benefits will be required to
settle the obligation and a reliable estimate can be made for the
amount of the obligation. The disclosure is made for all present or
possible obligations that may but probably will not require outflow as
contingent liability in the financial statements.
Mar 31, 2012
1(A). USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reporting amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between actual results and estimates are recongnised in the period in
which the results are known/ materialised.
1(B). RECOGNITION OF REVENUE AND EXPENDITURE:
(i) Revenues/Incomes and Costs/Expenditures are generally accounted on
accrual, as they are earned or incurred.
(ii) Sales are recognized when significant risks and rewards of
ownership have been transferred to the buyer. In case of development
projects/Research income, revenue is recognized on achieving the set
milestones or targets.
(iii) Export incentives under various schemes are recognized as Income
on certainty of realization
(iv) Sale of realizable scrap is accounted on receipt basis.
(v) Insurance claims are accounted on accrual basis on admission of
claims.
(vi) Interest income is recognised on a time proportion basis taking
into account the amount outstanding and the applicable rate of
interest.
(vii) Revenue (income) is recognised when no significant uncertainties
as to its determinations or realisations exists. Turnover includes
carbon credits (Carbon Emission Reductions) which are recognised as
delivery thereof or sale of right therein as the case may be, in terms
of contracts with respective buyers.
1(C). FIXED ASSETS:
(i) Fixed assets (including capital work-in-progress) are accounted at
cost less accumulated depreciation net of modvat credit.
(ii) Constructed and fabricated capital assets are capitalized as and
when the plant is put into commercial production.
(iii) Expenditure during construction period including interest on
loans borrowed is included in the Capital cost.
(iv) Significant items of separate identity capable of enhancing life
and capacity of the machinery are capitalized at cost inclusive of
installation cost.
1(D). DEPRECIATION
(i) Depreciation is provided on Straight-Line Method in accordance with
Schedule XIV of the Companies Act, 1956, as amended, treating plant and
machinery as continuous process plant.
(ii) Depreciation on assets costing less than Rs.5000/- is provided at
100%.
1(E). VOLUNTARY RETIREMENT SCHEME (VRS)
(i) The Company has introduced Voluntary Retirement Scheme in
accordance with BIFR Modified Draft Rehabilitation Scheme. The Company
followed the policy guidelines issued by BIFR by amortizing the VRS
payment over a period of 3 years.
1(F). REFURBISHMENT EXPENDITURE
The company has followed the policy of amortizing refurbishment
expenditure met on Plant and Machinery over a period of five years from
the year of expenditure in accordance with the BIFR Modified Draft
Rehabilitation Scheme.
1(G). INVENTORIES:
(i) The closing stock of raw materials, packing material stores and
spares are valued at cost by adopting weighted average method or net
realizable value whichever is less. Stock-in-process (intermediate
products) and finished goods are valued at cost or net realizable value
whichever is lower.
Cost of Stock-in-process includes costs of conversion and other costs
incurred in bringing the inventories to their present location and
condition.
(ii) Excise duty payable on finished goods manufactured but not removed
is included in the Valuation of such stocks.
(iii) By-products are valued at NIL value.
(iv) Closing stock of CERs are treated as finished goods and are valued
at market price as reported in International Stock exchange market, New
York at the yearend date (after deducting marginal expenses) upto
31.03.2011.
1(H). EMPLOYEE BENEFITS:
a. Short term employee benefits:
Undiscounted value of short term employee benefits such as salaries,
wages, short term compensated absences, bonus, exgratia and performance
incentives are recognised as expense in the period in which the
employees render the related service.
b. Post Employment Benefits Defined Contribution plans:
Contribution to defined contribution plans being Employee Provident
Fund, Employee State Insurance, Employee Insurance Scheme etc. are
recognised in the Statement of profit and loss during the period in
which the employees render the related services.
Defined Benefit Plans:
Liabilities in respect of defined benefit plans being Gratuity and
Leave encashment are determined based on an actuarial valuation using
the projected unit credit method. Actuarial gains or losses are
recognised immediately in the Statement of Profit and Loss account.
1(I). PROVISION FOR DOUBTFUL DEBTS:
Provision for doubtful debts/loans/advances:
Provision for the doubtful debts is made in the books in respect of
debtors outstanding for more than 3 years except Govt. Debts. In
respect of cases under Civil suits/tribunals for recovery of dues which
are yet to be decided, provisions are made to the extent considered
necessary by the Management.
1(J). FOREIGN CURRENCY TRANSACTIONS:
(i) Foreign currency transactions are accounted for at the exchange
rates prevailing on the date of transaction.
(ii) Fixed assets are translated at the exchange rates on the date of
transaction. The exchange difference in each financial year, up to the
period of settlement is taken to Statement of profit and loss.
(iii) The monetary items in foreign currencies are translated at the
closing exchange rate on the date of balance sheet and difference in
translation and realized gains/losses thereon adjusted in the Statement
of profit and loss.
1(K). BORROWING COST:
Borrowing costs relating to acquisition of fixed assets which takes
substantial period of the time to get ready for its intended use are
included to the extent they relate to the period till such assets are
ready to be put to use, Ail other borrowing costs are charged to
revenue. Borrowing costs consist of interest and other costs that the
company incurs in connection with borrowing of funds.
1(L).TAXES ON INCOME:
(i) The Current charge for income taxes is calculated in accordance
with the relevant tax regulations applicable to the Company on the
estimated total income for the year.
(ii) Deferred tax assets and liabilities are recognised on timing
differences between taxable income and accounting income, originating
in one period and expected to reverse in subsequent periods.
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.
(iii) Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted or substantively enacted as
on the Balance Sheet date.
1(M). SEGMENT REPORTING:
The company's operation mainly comprises manufacturing of PTFE
(Suspension & Emulsion). These activities constitutes the primary
segment i.e. manufacturing in chemicals.
1(N). EARNING PER SHARE:
Basic Earnings Per Share is calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating the diluted earnings per share, the net
profit or loss for the period attributable to equity share holders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
1(O). IMPAIRMENT OF ASSETS:
The carrying amounts of assets are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any such
an indication exists, then the carrying value is reduced to the higher
of the net selling price or the value in use. The value in use is the
present value of estimated future net income expected from use of the
asset.
1(P). PROVISIONS/CONTINGENT LIABILITIES:
Provisions are recognised, when the Company has a present legal or
constructive obligation, as a result of past events, for which it is
probable that an out flow of economic benefits will be required to
settle the obligation and a reliable estimate can be made for the
amount of the obligation. The disclosure is made for all present or
possible obligations that may but probably will not require outflow as
contingent liability in the financial statements.
Mar 31, 2011
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The Accounts have been prepared on accrual basis unless stated
otherwise under historical cost convention and in accordance with the
accounting standards issued by ICAI and provisions of Companies Act.
The deviations from the above are stated in the notes.
2. FIXED ASSETS:
2.1. Fixed assets (including capital work-in-progress) are accounted
at cost, net of modvat credit.
2.2. Machinery spares procured for maintenance of machinery are taken
as Stock of spares and are valued as closing stock at cost.
2.3 In respect of Plant and machinery, the routine expenditure for
repairs of the plant and machinery are charged to P & L Account. Only
significant items of separate identity capable of enhancing Life and
capacity of the machinery are capitalized at cost inclusive of
installation cost.
2.4. Constructed and fabricated capital assets are capitalized as and
when the plant is put into commercial production.
2.5. Expenditure during construction period including interest on
loans borrowed is included in the Capital cost.
2.6. Machinery, Spares relating to a particular Machinery are
capitalized to fixed assets and those of general in nature are taken to
closing stock.
3. DEPRECIATION
3.1. Depreciation is provided on Straight-Line Method in accordance
with Schedule XIV of the Companies Act, 1956, as amended, treating
plant and machinery as continuous process plant.
3.2. Depreciation on assets costing less than Rs.5000/- is provided at
100%.
4. VOLUNTARY RETIREMENT SCHEME (VRS)
4.1. The Company has introduced Voluntary Retirement Scheme in
accordance with BIFR Modified Draft Rehabilitation Scheme. The Company
followed the policy guidelines issued by BIFR by amortizing the VRS
payment over a period of 3 years.
5. REFURBISHMENT EXPENDITURE
The company has followed the policy of amortizing refurbishment
expenditure met on Plant and Machinery over a period of five years from
the year of expenditure. This is in accordance with the BIFR Modified
Draft Rehabilitation Scheme.
6. REVENUE RECOGNITION
6.1. Sales are recognized when all significant risks and rewards of
ownership have been transferred to the buyer. Gross value of sale is
recognized and the Excise Duty is later on shown as deduction. In case
of development projects / research income, revenue is recognised on
achieving the set of milestone or targets.
6.2. Export incentives under various schemes are recognized as Income
on certainty of realization.
6.3. Sale of realizable scrap is accounted on receipt basis.
6.4. Insurance claims are accounted on accrual basis on admission of
claims.
7. INVENTORIES
7.1 The closing stock of raw materials, stores and spares are valued at
cost by adopting weighted average method after giving due credit for
VAT or net realizable value which ever is less. Stock- in-process
(intermediate products) and finished goods are valued at cost or net
realizable value whichever is lower after giving due credit for VAT.
However, the CERs confirmed by UNFCCC are valued as finished goods at
market price of CERs in the international Stock Exchange of CERs at
the year end date after considering some margin.
7.2. Excise duty payable on finished goods manufactured but not
removed is included in the Valuation of such stocks.
7.3. By-products are valued at NIL value.
8. RETIREMENT BENEFITS
8.1. In respect of gratuity the company has taken an Insurance Policy
with Life Insurance Corporation of India to cover the gratuity that may
be payable to employees on retirement. The premium on the policy is
being charged to Profit and Loss account.
8.2. Leave encashment, gratuity and other retirement benefits are
accounted on accrual basis and provided in books of accounts on the
basis of acturial valuation.
8.3. Contributions to Provident Fund are charged to P& L A/c on accrual
basis.
8.4. Bonus is provided as per Payment of Bonus Act 1965.
9. FOREIGN CURRENCY TRANSACTIONS:
9.1. Foreign currency transactions are accounted for at the exchange
rates prevailing on the date of transaction.
9.2. Fixed assets are translated at the exchange rates on the date of
transaction. The exchange difference in each financial year, up to the
period of settlement is taken to profit and loss account.
9.3. The monetary items in foreign currencies are translated at the
closing exchange rate on the date of balance sheet and gains/losses
there on adjusted in the profit and loss account
10. SUNDRY DEBTORS:
10.1.Provision for doubtful debts/loans/advances : Full provision for
the doubtful debts is made in the books in respect of debtors
outstanding for more than 3 years except Govt. Debts. In respect of
cases under Civil suits/tribunals for recovery of dues which are yet to
be decided, Provisions are made to the extent considered necessary by
the Management.
11. CONTINGENT LIABILITIES
11.1. Claims against the company not acknowledged as debts relating to
normal business transactions and show cause notices/demands raised by
authorities disputed by the company are treated as Contingent
Liabilities and necessary disclosures are made as per AS-4. Wage
revision amount due to employees quantified on estimated basis is
treated on contingent liability.
12. PRIOR PERIOD/PRE-PAID EXPENSES
12.1 Prior period and prepaid expenses are recognized taking the cut
off date as 31st March of the financial year.
Mar 31, 2010
1. GENERAL
1.1 The Accounts have been prepared on historical cost basis.
1.2 All revenues and expenses are accounted on accrual basis except to
the extent stated otherwise.
2. FIXED ASSETS:
2.1 Fixed assets (including capital work-in-progress) are accounted at
cost, net of modvat credit.
2.2 Expenditure during construction period including interest on loans
borrowed is included in the Capital cost.
3. DEPRECIATION
3.1 Depreciation is provided on Straight-Line Method in accordance with
Schedule XIV of the Companies Act, 1956, as amended, treating plant and
machinery as continuous process plant.
3.2 Depreciation on assets costing less than Rs.5000/- is provided at
100%.
3.3 Expenditure not represented by assets is written off over a period
of 5 years.
4. VOLUNTARY RETIREMENT SCHEME
4.1 Last year an amount of Rs.223.57 lacs had incurred towards VRS
payments for 31 employees in accordance with BIFRs Modified Draft
Rehabilitation Scheme(MDRS). Out of this, an amount Rs.74.52 lacs was
charged to P&L Account in the current year. The balance will be written
off in the next two years (Rs.74.52 Lacs in 2010-11 and Rs.37.27 Lacs
in 2011 -12) in accordance with BIFRs Modified Draft Rehabilitation
Scheme (MDRS). As per AS-15 issued by ICAI , VRS expenditure is to be
written off over the pay back period, but the deferred VRS Expenditure
cannot be carried forward beyond 31.03.2010. The Company is following
the guide lines contained in the BIFRs MDRS in this matter deviating
from AS issued by ICAI.
5. REFURBISHMENT EXPENDITURE
5.1 This year an amount of Rs. 17.84 lacs was incurred whereas last
year an amount of Rs.285.14 lacs has been incurred towards
Refurbishment Expenditure on Plant and Machinery. Out of which Rs.61.49
lacs was charged to Profit & Loss account during the Current year. The
balance will be written off in 3 equal installments of Rs.61.49 Lacs in
the next three years in accordance with BIFRs Modified Draft
Rehabilitation Scheme (MDRS). As per AS-6 issued by ICAI, any
expenditure incurred for improvement in performance of the Plant &
Machinery, should be capitalized and depreciated accordingly as per
Schedule -XIV applicable to the Company. However the Company is
following the guide lines contained in the BIFRs MDRS in this matter
deviating from AS issued by ICAI.
6. REVENUE RECOGNITION.
Sales are recognized when all significant risks and rewards of
ownership have been transferred to the buyer.
6.1) Export incentives under various schemes are recognized as Income
on certainty of realization.
7. INVENTORIES
7.1) The closing stock of raw materials, stores and spares etc., are
valued at cost by adopting weighted average method after giving due
credit for VAT. Stock-in-process and finished goods are valued at cost
or net realizable value whichever is lower after giving due credit for
VAT. HFC- 23 Gas is converted into eligible CERs and are valued at the
lowest quoted price during the year in the international market.
7.2) Excise duty payable on finished goods manufactured but not removed
is included in the Valuation of such stocks.
7.3) Sales of realizable scrap are accounted on receipt basis.
7.4) Insurance claims are accounted on accrual basis on admission of
claims.
8. RETIREMENT BENEFITS
8.1. In respect of gratuity the company has taken an Insurance Policy
with Life Insurance Corporation of India to cover the gratuity that may
be payable to employees on retirement. The premium on the policy is
being charged to Profit and Loss account.
8.2. Leave encashment and other retirement benefits are accounted on
accrual basis and charged to P&L Account.
8.3. Contributions to Provident Fund are charged to P& L A/c.
9. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted for at the exchange rates
prevailing on the date of transaction.
9.1 Fixed assets are translated at the exchange rates on the date of
transaction. The exchange difference in each financial year, upto the
period of settlement is taken to profit and loss account.
9.2 The monetary items in foreign currencies are translated at the
closing exchange rate on the date of balance sheet and gains/losses
there on adjusted in the profit and loss account.
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