Accounting Policies of Hindustan Wires Ltd. Company

Mar 31, 2018

1 Company Overview, Basis of Preparation and Significant Accounting Policies

1.1 Company Overview

Hindustan Wires Limited (“the company”) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. It is primarily engaged in the business of manufacture, filling of Gas in containers, testing of gas cylinders and transportation of Industrial Gases. It also carries on Finance and Investment activities including renting of immovable properties. The Company''s registered office is at 5th Floor, 3A, Shakespeare Sarani, Kolkata-70071. The Company is listed on BSE Ltd and The Calcutta Stock Exchange Ltd.

These financial statements were authorized for issuance by the board of directors of the company in their meeting held on May 16, 2018.

1.2 Basis of Preparation of financial statements

(A) Statement of Compliance

These standalone Ind AS financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under the Companies (Indian Accounting Standards) Rules, 2015. The financial statements up to the year ended March 31, 2017 were prepared in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act (''Previous GAAP''). These are Company''s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer note 42 for an explanation of the transition from previous GAAP to Ind AS and the effect on the Company''s financial position, financial performance and cash flows.

Exemptions and Exceptions availed

Ind-AS 101 first time adoption of Indian Accounting Standards allows first time adopters certain exemption & exceptions from the retrospective application of certain requirements under Ind-AS effective April 1, 2016.

Exemption

Property, Plant & Equipment

Ind-AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in financial statement as at date on transition to Ind-AS, measured as the previous GAAP and use that as its deemed cost as at date of transition. Accordingly Company has elected to measure all of its Property, Plant and Equipment at their previous GAAP carrying value.

Exception

i) Estimates

An entity''s estimates in accordance with Ind-AS at the date of transition to Ind-AS shall be consistent with estimate made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

(ii) Classification and Measurement of financial assets

Ind-AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind-AS.

(B) Basis of measurement

The financial statements are prepared on historical Cost basis except for certain financial assets and liabilities that are measured at fair value. The accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles. All income and expenditure are being accounted for an accrual basis.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell assets or paid to transfer a liability in an ordinary transaction between market participants at the measurement date.

(C) Functional and Presentation Currency

These financial statements are presented in Indian Rupee (INR), which is the Company''s functional currency. All financial information presented in INR has been rounded to the nearest lakhs (up to two decimals), except as stated otherwise.

(D) Use of Estimates

In preparing Company''s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period in which the same is determined.

(E) Current and non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification. An asset is current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period; or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

- There is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period All other liabilities are classified as non-current.

1.3 Significant Accounting Policy

(A) Property Plant & Equipment

A.1 Initial recognition and measurement

An item of property, plant and equipment recognized as an asset if and only if it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

Items of Property, Plant and Equipment are measured at cost less accumulated depreciation/amortization and accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties, to the location and condition necessary for it to be capable of operating in the manner intended by management.

When parts of an item of property, plant and equipment have different useful life, they are recognized separately. Items of spare parts, stand-by-equipment and servicing equipment which meet the definition of Property, Plant and Equipment are capitalized. Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as ''Capital Work-in-progress''.

A.2 Subsequent Costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

The cost of replacing part of an item of Property, Plant and Equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of Property, Plant and Equipment are recognized in profit or loss as incurred.

A.3 De-recognition

Property, Plant and Equipment are derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on disposal of an item of Property, Plant and Equipment are determined by comparing the proceeds from disposal with the carrying amount of Property, Plant and Equipment, and are recognized in the statement of profit and loss.

A.4 Depreciation / amortization

Depreciation on Property, Plant and Equipment is provided on straight line method in accordance with the rate of Schedule II of Companies Act, 2013.

Depreciation on additions to/deductions from Property, Plant and Equipment during the year is charged on pro-rata basis from/up to the date on which the asset is available for use/disposed.

(B) Capital work-in-progress

The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management and borrowing costs.

Expenses directly attributable to construction of Property, Plant and Equipment incurred till they are ready for their intended use are identified and allocated on a systematic basis on the cost of related assets.

(C) Inventories

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are valued at the lower of cost and the net realizable value after providing for obsolescence and other losses, where considered necessary. For Valuation purpose, FIFO basis has been adopted.

Cost includes all charges in bringing the good to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and excise duty where applicable.

(D) Cash and Cash Equivalents

Cash and cash equivalent in the Balance Sheet comprise cash at banks and cash in hand and short-term deposits with an original maturity of three months or less, which are subject to insignificant risk of change in value.

(E) Financial Instruments Initial recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction cost that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are deducted from or added to the fair value of financial assets or financial liabilities, as appropriate, on initial recognition.

Subsequent measurement

Non derivative financial instruments

(i) Financial assets carried at amortized cost: A financial asset is subsequently measured at amortized cost if it is held in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets carried at fair value through other comprehensive income (FV) measured at FVTOCI if it is held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognized in other comprehensive income.

(iii) Financial assets carried at fair value through profit or loss (FVTPL): A financial asset which is not classified in any of the above categories is subsequently measured at fair value through profit or loss.

(iv) Financial liabilities: Financial liabilities are subsequently measured at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts are approximate to fair value due to the short maturity of these instruments.

(F) Compound financial instruments

The liability component of a compound financial instrument is recognized initially at fair value of a similar liability that does not have an equity component. The equity component is recognized initially as the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component.

Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest rate method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except on conversion or expiry.

(G) Impairment

(i) Financial assets

The Company recognizes loss allowances using the expected credit loss for the financial assets which are not measured at fair value through Profit or Loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime expected credit loss.

(ii) Non -Financial assets Tangible and intangible assets

Property, Plant and Equipment and intangible assets are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value in use) is determined on an individual asset basis to determine the extent of the impairment loss (if any). An impairment loss is recognized in the statement of Profit or Loss. The Company review / assess at each reporting date if there is any indication that an asset may be impaired.

(H) Fair value measurement

The Company measures financial instruments, such as derivatives at fair value at each Balance Sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: In the principal market for the asset or liability, or in the absence of a principle market, in the most advantageous market for the asset or liability. The principal or the most advantageous market is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economics best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.:

Level 1 - Quoted prices in active markets.

Level 2 - Input other than quoted prices included within Level 1 that are observable, either directly or indirectly.

Level 3 - Input that are not based on observable market data.

(I) Provisions, Contingent Liabilities and Contingent Assets

Provisions are measured at the present value of the management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent liabilities are disclosed only 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 which is 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 the obligation or estimate of the amount cannot be measured reliably. No contingent asset is recognized but disclosed by way of notes to accounts only when its recognition is virtually certain.

(J) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and it is probable that future economic benefits will flow to the entity. Amount of sales are net of goods and service tax, sale returns, trade allowances and rebates but inclusive of excise duty. Revenue from sale of product is recognized when the significant risks and rewards of ownership of the product have been transferred to the buyer, and the amount of revenue can be measured reliably.

Income in respect of renting immovable property/warehousing services and financial services etc are recognized in term of the respective agreements on accrual basis.

Dividend income is recognized when the right to receive the income is established.

Interest income is recognized, on time proportion basis taking amount involved and the rate of interest as agreed.

(K) Foreign Currency Conversions/Transactions

Foreign Currency Transactions if any are recorded at the exchange rates prevailing on the date of the transactions. Gains and losses arising out of subsequent fluctuations are accounted for an actual payments or realizations as the case may be. Monetary assets and liabilities denominated in foreign currency as on Balance Sheet date are translated into functional currency at the exchange rates prevailing on that date and Exchange differences arising out of such conversion are recognized in the Statement of profit and loss.

(L) Income Taxes

Income tax expenses for the year comprises of current tax and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent it relates to any business combination or to an item which is recognized directly in equity or in other comprehensive income.

a) Current Tax

Current tax expenses is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at Balance Sheet date and takes into consideration various deductions and exemptions to which the Company is entitled to as well as reliance placed by the Company on the legal advices received by it.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The 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 reviewed at each Balance Sheet date and are written- down or written- up to reflect the amount that is reasonably certain (as the case may be) to be realized.

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 law.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. Deferred Tax includes Mat Credit Entitlement as per Ind-AS.

(M) Employee Benefits

M.1. Short Term Employee Benefits

Short- term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under performance related payment if the Company has a present, legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

M.2 Post-Employment benefits

Employee benefit that are payable after the completion of employment are Post Employment Benefit (other than termination benefit). These are of two types:

M.2.1 Defined contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee State Insurance are Defined Contribution Plans in which company pays a fixed contribution and will have no further obligation beyond the monthly contributions and are recognized as an expense in Statement of Profit & Loss.

M.2.2 Defined benefit plans

A Defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

Company pays Gratuity as per provisions of the Gratuity Act, 1972. Leave Encashment payable at the end of the employment is also post-employment defined benefit plan. The Company''s net obligation in respect of defined

benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the Company''s obligations and that are denominated in the same currency in which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Any actuarial gains or losses pertaining to components of re-measurement of net defined benefit liability / (asset) are recognized on OCI in the period in which they arise.

(N) Borrowing Cost

General and Specific Borrowings Cost that are directly attributable to the acquisition or construction or production of qualifying assets capitalized as part of the cost of such assets up to the date when such assets are ready for intended use. Qualified assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are charged as expenses in the year in which they are incurred.

(O) Earnings Per Share

Basic Earnings per Share is calculated by dividing the net profit of loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

(P) Leases

Accounting for finance leases

Leases of Property, Plant and Equipment, if any, where the company, as lessee has substantially all risks and rewards of ownership are classified as finance lease. On initial recognition, assets held under finance leases are recorded as Property, Plant and Equipment and the related liability is recognized under borrowings. At inception of the lease, finance leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance expenses and the reduction of the outstanding liability.

Accounting for operation leases

Leases in which a significant portion or the risks and reward of ownership are not transferred to the Company as lessee are classified as operating lease. Payments made under operating leases are recognized as an expense over the lease term.

(Q) Recent accounting pronouncement issued but not yet effective up to the date of issuance of financial statements

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) Rules, 2015, notifying Ind AS 115, ''Revenue from Contracts with Customers'' This Ind-AS is in accordance with the IFRS 15. However, considering the challenges and difficulties, MCA deferred the applicability of this Ind-AS and made it to be implemented from April 01, 2018.

This Ind-AS obliges the company to book its revenue from customers on the 5 step model as below:-Step-1: Identify the contract with the customer Step-2: Identify the performance obligations in the contract Step-3: Determine the transaction price

Step-4: Allocate the transaction price to the performance obligations

Step-5: Recognize Revenue when (or as) the entity satisfies a performance obligation.

Based on the operations of the Company, this Ind AS is not applicable to the Company.

It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions received, that it has meritorious defenses to the claims. The management believe that pending actions will not require outflow of resources and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the company.

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Mar 31, 2016

1 SIGNIFICANT ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The Company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed, unless otherwise stated.

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 realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-noncurrent classification of assets and liabilities.

1.2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

1.3 DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule II of the Companies Act,2013.

1.4 INVESTMENTS

Long term investment are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to the Statement of Profit & Loss.

Current investment are valued at lower of cost or fair value.

1.5 VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at lower of cost or net realizable value. Finished goods, if any are valued at lower of cost or net realizable value. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the Company to bring the inventory to its present condition and locations.

1.6 TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to ''Accounting for Taxation on Income'' issued by the Institute of Chartered Accountants of India. Deferred Tax Assets in relation to unabsorbed losses or depreciation are recognized only if there is virtual certainty as to its realization.

1.7 BORROWING COST

Borrowing costs that are attributable to acquisition and construction of assets are capitalized as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Statement of Profit & Loss.

1.8 RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts.

1.9 SALES & OTHER REVENUE

(a) Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b) Income in respect of renting of immovable property/ warehousing services and financial services etc are recognized in terms of the respective agreements on accrual basis. Interest income is recognized on time proportion basis taking amount involved and the rate of interest as agreed.

1.10 EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b) Employer''s contribution to Provident Fund and ESI is charged to revenue on accrual basis.

1.11 IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

1.12 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognized but are disclosed in the notes on accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The Company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed.

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 revised 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 months for the purpose of current-non current classification of assets and liabilities.

1.2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

1.3 DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule II of the Companies Act,2013.

1.4 VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the Company to bring the inventory to its present condition and locations.

1.5 TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to ‘Accounting for Taxation on Income’ issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation.

1.6 BORROWING COST

Borrowing costs that are attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Statement of Profit & Loss.

1.7 RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts.

1.8 SALES & OTHER REVENUE

(a) Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b) Income in respect of renting of immovable property/ warehousing services and interest etc are recognised in terms of the respective agreements on accrued basis.

1.9 EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b) Employer’s contribution to Provident Fund and ESI is charged to revenue on accrual basis.

1.10 IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

1.11 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed.

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 revised 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 months for the purpose of current-noncurrent classification of assets and liabilities.

1.2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

1.3 DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule XIV of the Companies Act,1956.

1.4 VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the company to bring the inventory to its present condition and locations.

1.5 TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to ''Accounting for Taxation on Income'' issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation.

1.6 BORROWING COST

Borrowing costs that are attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Statement of Profit & Loss.

1.7 RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts in Part (B) of this Schedule.

1.8 SALES & OTHER REVENUE

(a) Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b) Income in respect of renting of immovable property/ warehousing services and interest etc are recognised in terms of the respective agreements on accrued basis.

1.9 EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b) Employer''s contribution to Provident Fund and ESI is charged to revenue on accrual basis.

1.10 IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

1.11 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed.

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 revised 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 realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-noncurrent classification of assets and liabilities.

1.2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

1.3 DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule XIV of the Companies Act,1956.

1.4 VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realizable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the company to bring the inventory to its present condition and locations.

1.5 TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to ‘Accounting for Taxation on Income’ issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognized only if there is virtual certainty as to its realization.

1.6 BORROWING COST

Borrowing costs attributable to acquisition and construction of assets are capitalized as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Statement of Profit & Loss.

1.7 RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts in Part (B) of this Schedule.

1.8 SALES & OTHER REVENUE

(a) Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b) Income in respect of renting of immovable property/ warehousing services is recognized in terms of the respective agreements on accrued basis.

1.9 EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b) Employer’s contribution to Provident Fund and ESI is charged to revenue on accrual basis.

1.10 IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

1.11 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2011

1. GENERAL

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed.

2. FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

3. DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule XIV of the Companies Act,1956.

4. VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the company to bring the inventory to its present condition and locations.

5. TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to 'Accounting for Taxation on Income' issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation.

6. BORROWING COST

Borrowing costs attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Profit & Loss Account.

7. RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts in Part (B) of this Schedule.

8. SALES & OTHER REVENUE

(a)Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b)Income in respect of renting of immovable property/ warehousing services is recognised in terms of the respective agreements .

9. EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b)Employer's contribution to Provident Fund and ESI is charged to revenue on accrual basis.

10. IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

11. PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2010

1 GENERAL

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The company has adopted mercantile system of accounting and all income and expenditure are treated on accrue! basis unless otherwise stated herein below. All Accounting standards issued by the Govt, of India are followed.

2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

3. DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule XIV of the Companies Act, 1956.

4. VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the company to bring the inventory to its present condition and locations.

5. TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to Accounting for Taxation on Income issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation. *

6. BORROWING COST

Borrowing costs attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Profit & Loss Account.

7. RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts in Part (B) of this Schedule.

8. SALES & OTHER REVENUE

(a)Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b)lncome in respect of renting of immovable property/ warehousing services is recognised in terms of the respective agreements.

9. EMPLOYEE BENEFITS

(a)Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard-15 (Revised).

(b)Employers contribution to Provident Fund and ESI is charged to revenue on accrual basis.

10. IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

11 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.