Mar 31, 2018
1.1 BASIS OF PREPARTION OF FINANCIAL STATEMENTS
i) The financial statements have been prepared to comply with the Generally Accepted Accounting Principle in India (Indian GAAP), including the Accounting Standards notified under the relevent provisions of the Companies Act, 203.
ii) The Financial Statements are prepared on accural basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts.
1.2 USE OF ESTIMATES
The prepration of financial statements in confirmity with Indian Generally Accepted Accounting Principles requires judgement, estimates and assumptions to be made that affect the reported amount of asssets and liablities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.Differences between the actual results and estimates are recognised in the period in which the results are known/materialised.
1.3 REVENUE RECOGNITION
Revenue is recognised only when risks and rewards incidential to ownership are transferred to the customer, it can be reliably measured and it is resonable to except ultimate collection. Revenue from operation includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.
Dividend Income is recognised when the right to receive payment is established.
Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.
1.4 TAXATION
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deffered tax assets are recognised only to the extent that there is a reasonable certainity that sufficient further income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient further taxable income will be available to realise the same.
Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.
1.5 FIXED ASSETS
i) Tangible assets
Tangible assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
Subsequent expenditures related to an item of Tangible Assets are added to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performance.
Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.
ii) Intangible assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/ depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.
1.6 ACCOUNTING FOR DERIVATIVE INSTRUMENT
In respect of derivative contracts, premium paid, gains/losses on settlement and losses on restatement are recognised in the Profit and Loss Statement except in case where they relate to the acquisition or construction of Fixed Assets, in which case, adjusted to the carrying cost of such assets.
1.7 DEPRECIATION
Depreciation on Fixed Assets is provided on Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act , 2013 except in respect of the following assets, where useful life is diiferent than those prescribed in Schedule II are used.
In respect of addition or extensions forming an integral part of existing assets and insurance spares, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of Fixed Assets, depreciaton is provided as aforesaid over the residual life of the respective assets.
1.8 VALUATION OF INVENTORIES
Items of Inventories are measured at lower of cost or net realisable value after providing for obsolescence , if any, except in case of by-products which are valud at the net realisable value. Cost of inventories comprises of all costs of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, store and spares, packing materials, trading and other products are determined on weighted average basis.
1.9 EMPLOYEE BENEFITS
POST EMPLOYMENT BENEFITS
i) Defined Contribution Plan
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contibutions to a separate entity. The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Companys contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.
ii) Defined benefit and other Long term Benefit plan:
The liability in respect of defined benefit plan and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefits is expected to be derived from employeesâ services.
Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Profit and Loss Statement.
SHORT TERM EMPLOYEE BENEFITS
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.
1.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision is recognised in the accounts, when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.
Contingent Assets are neither recognised nor disclosed in the financial statements.
1.11 INVESTMENTS
Current investments are carried at lower of cost or quoted/fair value. Long term investments are stated £ cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.
1.12 BORROWING COSTS
Borrowing cost attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of such asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.
1.13 IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
1.14 EARNING/ (LOSS) PER SHARE
Basic earnings/(Loss) per share are calculated by dividing the net profit/ (Loss) for the year attributable tc equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year are adjusted for events of bonus issue to existing shareholders; share split; and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings/(Loss) per share, the net profit/(Loss) for the year attributabl to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
1.15 FOREIGN EXCHANGE TRANSACTION
a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.
b. Monetaty items denominated in foregin currencies at the year end are restated at year end rates. In the case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract .
c. Non -monetary foreign currency items are carried at cost.
d. In respect of integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction . Monetary assets and liabilities are restated at the year end rates.
e. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Statement , except in case of long term liabilities , where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.
Mar 31, 2015
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
i) The financial statements have been prepared to comply with the
Generally Accepted Accounting Prin- ciple in India (Indian GAAP),
including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013.
ii) The Financial Statements are prepared on accural basis under the
historical cost convention, except for certain Fixed Assets which are
carried at revalued amounts.
1.2 USE OF ESTIMATES
The preparation of financial statements in confirmity with Indian
Generally Accepted Accounting Prin- ciples requires judgement,
estimates and assumptions to be made that affect the reported amount of
assets and labilities, disclosure of contingent liabilities on the date
of the financial statements and the reported amount of revenues and
expenses during the reporting period. Differences between the actual
results and estimates are recognised in the period in which the results
are known/materialised.
1.3 REVENUE RECOGNITION
Revenue is recongnised only when risks and rewards incidential to
ownership are transferred to the customer, it can be reliably measured
and it is reasonable to except ultimate collection. Revenue from
operation includes sale of goods, services, service tax, excise duty
and sales during trial run period, adjusted for discounts (net), and
gain/loss on corresponding hedge contracts.
Dividend Income is recognised when the right to receive payment is
established.
Interest Income is recognised on a time proportion basis taking into
account the amount outstanding and the interest rate applicable.
1.4 TAXATION
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for the period and reversal of timing differences of earlier
years/period. Deferred tax assets are recognised only to the extent
that there is a reasonable certainity that sufficient further income
will be available except that deferred tax assets, in case there are
unabsorbed depreciation or losses, are recognised if there is virtual
certainty that suffi- cient further taxable income will be available to
realise the same.
Deferred tax assets and liabilities are measured using the tax rates
and tax law that have been enacted or substantively enacted by the
Balance Sheet date.
1.5 FIXED ASSETS
i) Tangible assets
Tangible assets are stated at cost net of recoverable taxes, trade
discounts and rebates and include amounts added on revaluation, less
accumulated depreciation and impairment loss, if any. The cost of
Tangible Assets comprises its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working
condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the assets.
Subsequent expenditures related to an item of Tangible Assets are added
to its book value only if they increase the future benefits from the
existing assets beyond its previously assessed standard of perfor-
mance.
Projects under which assets are not ready for their intended use are
disclosed under Capital Work-in- Progress.
ii) Intangible assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amorti- sation/depletion and impairment loss, if
any. The cost comprises purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its working condition
for the intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
intangible assets.
1.6 ACCOUNTING FOR DERIVATIVE INSTRUMENT
In respect of derivative contracts, premium paid, gains/losses on
settlement and losses on restatement are recognised in the Profit and
Loss Statement except in case where they relate to the acquisition or
construction of Fixed Assets, in which case, adjusted to the carrying
cost of such assets.
1.7 DEPRECIATION
Depreciation on Fixed Assets is provided on Straight Line Method (SLM).
Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act , 2013 except in respect
of the following assets, where useful life is different than those
prescribed in Schedule II are used.
In respect of addition or extensions forming an integral part of
existing assets and insurance spares, including incremental cost
arising on account of translation of foreign currency liabilities for
acquisition of Fixed Assets, depreciation is provided as aforesaid over
the residual life of the respective assets.
1.8 VALUATION OF INVENTORIES
Items of Inventories are measured at lower of cost or net realisable
value after providing for obsoles- cence , if any, except in case of
by-products which are valued at the net releasable value. Cost of
inven- tories comprises of all costs of purchase, cost of conversion
and other costs including manufacturing overhead incurred in bringing
them to their respective present location and condition. Cost of raw
mate- rials, process chemicals, store and spares, packing materials,
trading and other products are determined on weighted average basis.
1.9 EMPLOYEE BENEFITS
POST EMPLOYMENT BENEFITS
i) Defined Contribution Plan
A defined contribution plan is a post-employment benefit plan under
which the Company pays speci- fied contributions to a separate entity.
The Company makes specified monthly contributions towards Provident
Fund, Superannuation Fund and Pension Scheme. The Company's
contribution is recognised as an expense in the Profit and Loss
Statement during the period in which the employee renders the related
service.
ii) Defined benefit and other Long term Benefit plan:
The liability in respect of defined benefit plan and other
post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefits is expected
to be derived from employees' services.
Actuarial gains and losses in respect of post-employment and other long
term benefits are charged to the Profit and Loss Statement.
SHORT TERM EMPLOYEE BENEFITS
The undiscounted amount of short term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
as an expense during the period when the employees render the services.
These benefits include performance incentive and compensated absences.
1.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision is recognised in the accounts, when there is a present
obligation as a result of past event(s) and it is probable that an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discontinued to their
present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current
best estimates.
Contingent liabilities are disclosed unless the possibility of outflow
of resources is remote.
Contingent Assets are neither recognised nor disclosed in the financial
statements.
1.11 INVESTMENTS
Current investments are carried at lower of cost or quoted/fair value.
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary.
1.12 BORROWING COSTS
Borrowing cost attributable to the acquisition or construction of a
qualifying asset are capitalised as part of the cost of such asset. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are
recognised as an expense in the period in which they are incurred.
1.13 IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impair- ment loss is charged to the profit
and loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
1.14 EARNING/ (LOSS) PER SHARE
Basic earnings/(Loss) per share are calculated by dividing the net
profit/ (Loss) for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
The weighted average number of equity shares outstanding during the
year are adjusted for events of bonus issue to existing shareholders;
share split; and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings/(Loss) per share, the
net profit/(Loss) for the year attribut- able to equity shareholders
and the weighted average number of shares outstanding during the year
are adjusted for the effects of all dilutive potential equity shares.
1.15 FOREIGN EXCHANGE TRANSACTION
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In the case of items which are covered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recognised over
the life of the contract .
c. Non -monetary foreign currency items are carried at cost.
d. In respect of integral foreign operations, all transactions are
translated at rates prevailing on the date of transaction or that
approximates the actual rate at the date of transaction . Monetary
assets and liabilities are restated at the year end rates.
e. Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
Statement , except in case of long term liabilities , where they relate
to acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
Mar 31, 2014
1.1 BASIS OF PREPARTION OF FINANCIAL STATEMENTS
i) The financial statements are prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles in India, the provisions of the Companies Act, 1956 and
applicable accounting standards.
ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
iii) Financial statements for the year ended 31 st March, 2014 have
been prepared based on revised Schedule VI of the Companies Act, 1956.
The adoption of revised Schedule VI does not impact recognition and
measurement principles of individual items within this Financial
stalments. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has
accordingly reclassified the previous year''s figures to meet the
requirements applicable for the current year.
1.2 USE OF ESTIMATES
The prepratlon of financial statements in confiunity with generally
accepted accounting principles requires estimates and assumptions to be
made that effect the reported amount of asssets and liabilities on the
date of the financial statements and the reported amount of revenue and
expenses during the reporting period.Differences between the actual
results and estimates are recognised in the period in which ihe results
are known/materialised.
1.3 REVENUE RECOGNITION
Revenue is recongnised only when it can be reliably measured and is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, excise duty and sales
during the trial run period, adjusted lor discounts, value added tax
and gain/loss on corresponding hedge contracts.
1.4 TAXATION
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, I 96 I.
Deferred tax resulting from timing differences between book and taxable
profit is accounted for using the tax rates and laws that have been
etiacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reason able/virtual certainty, as the case may be, that
the asset will be realised in future.
1.5 FIXED ASSETS
i) Tangible assets
Owned tangible fixed assets are stated at cost less accumulated
depreciation and impairment loss, if any. All costs relating to
acquistion and installation of fixed assets upto the time tire assets
get ready for their intended use are capitalised.
ii) Intangible assets
Intangible assets are recognised only if acquired and it is probable
that the future economic benefits that are attributable to (he assets
will flow to (he Company and the cost of assets can be measured
reliably. The intangible assets are recorded at cost and are carried at
cost less accumulated depreciation and accumulated impairment losses,
if any.
1.6 ACCOUNTING FOR DERIVATIVE INSTRUMENTS
In respect of derivative contracts, premium paid, gains/losses on
settlement and losses on rcstatment are recognised in the profit and
loss account except in case where they arc relate to the acquisition or
construction of fixed assets, in which case, they are adjusted to the
carrying cost of such assets.
1.7 DEPRECIATION
Depreciation on fixed assets has been provided on the Straight line
method in accordance with the provisions of Section 205{2XbJ of the
Companies Act, 1956 and in the manner and at the rates specified in
Schedule XIV of the Companies Act, 1956,,
1.8 VALUATION OF INVENTORIES
Inventories ate valued at lower of cost or net realisable value after
providing for obsolescence, if any. Cost of inventories comprises of
all costs of purchase* cost of conversion and other costs including
manufacturing overheads incurred in bringing them lo their respective
present location and condition. Cost of raw material store and spares
and other products are determined on E:IFO basis. By- products.11 Scrap
are valued at net realisable value.
1.9 EMPLOYEE BENEFITS
i) Defined Contribution Plan
Company''s contribution paid/payable for the year to defined
contribution schemes are charged to statement of Profit & Lj>ss,
ii) Defined benefit and other Long term Benefit plan;
Company liablity towards defined benefit plans and other long term
benefit plan arc determined on the basis of actuarial valuations.
Actuarial valuations are carried out at the balance sheet date,
Actuarial gains and losses are recognised in the statement of profit
and loss in the period of occurence of such gain and losses.
The employee benefit obligation recognised in the balance sheet
represent the present value of the defined benefit obligation as
adjusted for unrecognised past service cost.
iii) Short Term Employee Benefits:
Short-term employees benefit expected to be paid in exchange for the
services rendered by employees are recongnised undiscounted during the
period employee renders services.
1.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving a substantial degree of estimation in measurement
arc recognised when (here 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 not recognised but are disclosed iu the
notes. Contingent assets arc neither recognised nor disclosed in the
financial statements
1.11 INVESTMENTS
Current investments are carried at lower of cost or quoted/fkir value,
Long term investments are seated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary,
1.12 BORROWING COSTS
Borrowing cost attributable to the acquisition or construction of a
qualifying asset are capitalised as pad of (he cost of such asset, A
qualifying asset is one that necessarily lakes substantial period of
time to get ready for intended use, Ad other borrowing costs are
recognised as an expense in the period in which they are incurred.
1.13 IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the profit and
loss account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
1.14 EARNING/ (LOSS) PER SHARE
fiasic earnings/(Loss) per share are calculated by dividing the net
profit'' (Loss) for the year attributable to equity shareholders by the
Weighted average number of equity shares outstanding during the year.
The weighted average number of equity shares outstanding during the
year are adjusted for events of bonus issue to existing shareholders:
share split; and reverse share split (consolidation of shares),
For the purpose of calculating diluted earnings/(Loss) per share, the
net pro ft t/( Loss) for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year
are adjusted for the effects of all dilutive potential equity shares,
1.15 FOREIGN EXCHANGE TRANSACTON
Transaction in Foreign Currency are recorded at ihe exchange rates
prevailing on the date of transaction. Monetary'' items are restated at
the period end rates. The exchange difference between the rate
prevailing on the date of transaction and on settlement/restalment is
recognised as income or expense us the case may be.
Mar 31, 2013
1.1 BASIS OF PREPARTION OF FINANCIAL STATEMENTS
i) The financial statements are prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles in India, the provisions of the Companies Act, 1956 and
applicable accounting standards.
ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
iii) Financial statements for the year ended 31 st March, 2013 have
been prepared based on revised Schedule VI of the Companies Act, 1956.
The adoption of revised Schedule VI does not impact recognition and
measurement principles of individual items within this Financial
statments. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has
accordingly reclassified the previous year''s figures to meet the
requirements applicable for the current year.
1.2 USE OF ESTIMATES
The prepration of financial statements in confirmity with generally
accepted accounting principles requires estimates and assumptions to be
made that effect the reported amount of assets and liablities on the
date of the financial statements and the reported amount of revenue and
expenses during the reporting period.Differences between the actual
results and estimates are recognised in the period in which the results
are known/materialised.
1.3 REVENUE RECOGNITION
Revenue is recongnised only when it can be reliably measured and is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, excise duty and sales
during the trial run period, adjusted for discounts, value added tax
and gain/loss on corresponding hedge contracts.
1.4 TAXATION
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from timing differences between book and taxable
profit is accounted for using the tax rates and laws that have been
enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable/virtual certainty, as the case may be, that
the asset will be realised in future.
1.5 FIXED ASSETS
i) Tangible assets : Owned tangible fixed assets are stated at cost
less accumulated depreciation and impairment loss, if any. All costs
relating to acquistion and installation of fixed assets upto the time
the assets get ready for their intended use are capitalised.
ii) Intangible assets : Intangible assets are recognised only if
acquired and it is probable that the future economic benefits that are
attributable to the assets will flow to the Company and the cost of
assets can be measured reliably. The intangible assets are recorded at
cost and are carried at cost less accumulated depreciation and
accumulated impairment losses, if any.
1.6 ACCOUNTING FOR DERIVATIVE INSTRUMENTS
In respect of derivative contracts, premium paid, gains/losses on
settlement and losses on restatment are recognised in the profit and
loss account except in case where they are relate to the acquisition or
construction of fixed assets, in which case, they are adjusted to the
carrying cost of such asset.
1.7 DEPRECIATION
Depreciation on fixed assets has been provided on the Straight line
method in accordance with the provisions of Section 205(2)(b) of the
Companies Act, 1956 and in the manner and at the rates specified in
Schedule XIV of the Companies Act, 1956.
1.8 VALUATION OF INVENTORIES
Inventories are valued at lower of cost or net realisable value after
providing for obsolescence, if any. Cost of inventories comprises of
all costs of purchase, cost of conversion and other costs including
manufacturing overheads incurred in bringing them to their respective
present location and condition. Cost of raw material store and spares
and other products are determined on FIFO basis. By- products/ Scrap
are valued at net realisable value.
1.9 EMPLOYEE BENEFITS
i) Defined Contribution Plan : Company''s contribution paid/payable for
the year to defined contribution schemes are charged to statement of
Profit & Loss.
ii) Defined benefit and other Long term Benefit plan : Company liablity
towards defined benefit plans and other long term benefit plan are
determined on the basis of actuarial valuations. Actuarial valuations
are carried out at the balance sheet. Actuarial gains and losses are
recognised in the statement of profit and loss in the period of
occurence of such gain and losses.
The employee benefit obligation recognised in the balance sheet
represent the present value of the defined benefit obligation as
adjusted for unrecognised past service cost.
iii) Short Term Employee Benefits : Short-term employees benefit
expected to be paid in exchange for the services rendered by employees
are recongnised undiscounted during the period employee renders
services.
1.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving a substantial degree of estimation in measurement
are recognised 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 liablities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements
1.11 INVESTMENTS
Current investments are carried at lower of cost or quoted/fair value.
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary.
1.12 BORROWING COSTS
Borrowing cost attributable to the acquisition or construction of a
qualifying asset are capitalised as part of the cost of such asset. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are
recognised as an expense in the period in which they are incurred.
1.13 IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the profit and
loss account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
1.14 EARNING/(LOSS) PER SHARE
Basic earnings/(Loss) per share are calculated by dividing the net
profit/ (Loss) for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
The weighted average number of equity shares outstanding during the
year are adjusted for events of bonus issue to existing shareholders;
share split; and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings/(Loss) per share, the
net profit/(Loss) for the year attributable to equity shareholders and
the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
1.15 FOREIGN EXCHANGE TRANSACTON
Transaction in Foreign Currency are recorded at the exchange rates
prevailing on the date of transaction. Monetary items are restated at
the period end rates. The exchange difference between the rate
prevailing on the date of transaction and on settlement/res.tatment is
recognised as income or expense as the case may be.
Mar 31, 2012
1.1 BASIS OF PREPARTION OF FINANCIAL STATEMENTS
i) The financial statements are prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles in India, the provisions of the Companies Act, 1956 and
applicable accounting standards.
ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
1.2 USE OF ESTIMATES
The prepration of financial statements in confirmity with generally
accepted accounting principles requires estimates and assumptions to be
made that effect the reported amount of asssets and liablities on the
date of the financial statements and the reported amount of revenue and
expenses during the reporting period.Differences between the actual
results and estimates are recognised in the period in which the results
are known/materialised.
1.3 REVENUE RECOGNITION
Revenue is recongnised only when it can be reliably measured and is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, excise duty and sales
during the trial run period, adjusted for discounts, value added tax
and gain/loss on corresponding hedge contracts.
1.4 TAXATION
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from timing differences between book and taxable
profit is accounted for using the tax rates and laws that have been
enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a reasonable/virtual certainty, as the case may be, that
the asset will be realised in future.
1.5 FIXED ASSETS
i) Tangible assets
Owned tangible fixed assets are stated at cost less accumulated
depreciation and impairment loss, if any. All costs relating to
acquistion and installation of fixed assets upto the time the assets
get ready for their intended use are capitalised.
ii) Intangible assets
Intangible assets are recognised only if acquired and it is probable
that the future economic benefits æ
that are attributable to the assets will flow to the Company and the
cost of assets can be measured reliably. The intangible assets are
recorded at cost and are carried at cost less accumulated depreciation
and accumulated impairment losses, if any.
1.6 ACCOUNTING FOR DERIVATIVE INSTRUMENTS
In respect of derivative contracts, premium paid, gains/losses on
settlement and losses on restatment are recognised in the profit and
loss account except in case where they are relate to the acquisition or
construction of fixed assets, in which case, they are adjusted to the
carrying cost of such asset.
1.7 DEPRECIATION
Depreciation on fixed assets has been provided on the Straight line
method in accordance with the provisions of Section 205(2)(b) of the
Companies Act, 1956 and in the manner and at the rates specified in
Schedule XIV of the Companies Act, 1956..
1.8 VALUATION OF INVENTORIES
Inventories are valued at lowe of cost or net realisable value after
providing for obsolescence , if any.. Cost of inventories comprises of
all costs of purchase, cost of conversion and other costs including
manufacturing overheads incurred in bringing them to their respective
present location and condition. Cost of raw material
store and spares and other products are determined on FIFO basis. By-
products/ Scrap are valued at net realisable value.
1.9 EMPLOYEE BENEFITS
i) Defined Contribution Plan
Company's contribution paid/payable for the year to defined
contribution schemes are charged to statement of Profit & Loss.
ii) Defined benefit and other Long term Benefit plan :
Company liablity towards defined benefit plans and other long term
benefit plan are determined on the basis of actuarial valuations.
Actuarial valuations are carried out at the balance sheet. Actuarial
gains and losses are recognised in the statement of profit and loss in
the period of occurence of such gain and losses.
The employee benefit obligation recognised in the balance sheet
represent the present value of the defined benefit obligation as
adjusted for unrecognised past service cost.
iii) Short Term Employee Benefits:
Short-term employees benefit expected to be paid in exchange for the
services rendered by employees are recongnised undiscounted during the
period employee renders services.
1.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving a substantial degree of estimation in measurement
are recognised 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 liablities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements
1.11 INVESTMENTS
Current investments are carried at lower of cost or quoted/fair value.
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary.
1.12 BORROWING COSTS
Borrowing cost attributable to the acquisition or construction of a
qualifying asset are capitalised as part of the cost of such asset. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are
recognised as an expense in the period in which they are incurred.
1.13 IMPAIRMENT OFASSETS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the profit and
loss account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
1.14 EARNING/(LOSS) PER SHARE
Basic earnings/(Loss) per share are calculated by dividing the net
profit/ (Loss) for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
The weighted average number of equity shares outstanding during the
year are adjusted for events of bonus issue to existing shareholders;
share split; and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings/(Loss) per share, the
net profit/(Loss) for the year attributable to equity shareholders and
the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
1.15 FOREIGN EXCHANGE TRANSACTON
Transaction in Foreign Currency are recorded at the exchange rates
prevailing on the date of transaction. Monetary items are restated at
the period end rates. The exchange differnce between the rate
prevailing on the date of transaction and on settlement/restatment is
recognised as income or expense as the case may be.
Mar 31, 2010
I) GENERAL
a) The financial statements are prepared under the historical cost
convention and in accordance with the requirement of the Companies Act,
1956.
b) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
ii) BASIS OF ACCOUNTING
The Company follows the mercantile system of Accounting and recognises
income and expenditure on accrual basis.
iii) SALES Sales are inclusive of Excise Duty but net of Sales Tax.
iv) TAXATION
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax assets
and liabilities are recognised for future tax consequences attributable
to the timing differences that result between the profit offered for
income tax and the profit as per the financial statements. Deferred tax
assets and liabilities are measured as per the tax rates / laws that
have been enacted or substantively enacted by the Balance Sheet date.
v) FIXED ASSETS AND DEPRECIATION
a) VALUATION OF FIXED ASSETS
Fixed Assets are stated at cost of acquisition inclusive of all
incidental expenses related thereto.
b) DEPRECIATION
Depreciation on all fixed assets has been provided on straight line
method on pro-rata basis for the period of use at the rates specified
in SCHEDULE XIV to the Companies Act, 1956.
vi) VALUATION OF INVENTORIES
Raw Materials, stores and spare parts are valued at cost. Finished
Goods & Scrap are valued at cost or Market value whichever is lower.
vii) RETIREMENT BENEFITS.
Gratuity and Leave Encashment is accounted for on accrual basis, on the
basis of actuarial valuations.
viii) CONTINGENT LIABILITIES
Contingent liabilities are usually not provided for unless it is
probable that the future outcome may be materially detrimental to the
Company and are disclosed by way of notes.
ix) INVESTMENTS
Investments are stated at cost.
x) IMPAIRMENT
i. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
ii. After impairment, depreciation is provided on the revised carrying
amount of the assets over its remaining useful life.
iii. A previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However the carrying value after
reversal is not increased beyond the carrying value that would have
prevailed by charging usual depreciation if there was no impairment.
xi) EXPENDITURE ON NEW PROJECTS AND SUBSTANTIAL EXPANSION
Expenditure directly relating to construction activity is capitalized.
Indirect expenditure incurred during construction period is capitalized
as part of the indirect construction cost to the extent to which the
expenditure is indirectly related to construction or is incidental
thereto. Other indirect expenditure (including borrowing costs)
incurred during the construction period, which are not related to the
construction activity nor is incidental thereto are charged to the
Profit & Loss Account. Income earned during construction period is
deducted from the total of the indirect expenditure.
All direct capital expenditure on expansion is capitalized. As regards
indirect expenditure on expansion, only that portion is capitalized
which represents the marginal increase in such expenditure involved as
a result of expansion. Both direct and indirect expenditure are
capitalized only if they increase the value of the asset beyond its
originally assessed standard of performance.
xii) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue to existing shareholders; share split; and
reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
xiii) PROVISIONS
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
xiv) FOREIGN EXCHANGE TRANSACTON
Transaction in Foreign Currency are converted at the rates prevailing
on the date of transaction. Gain/Loss on Realization/Payment of revenue
transaction in the same year is charged to "Exchange Fluctuation
Account" in the Profit & Loss Account.
Mar 31, 2009
GENERAL
a) The financial statements are prepared under the historical cost
convention and in accordance with the requirement of the Companies Act,
1956.
b) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
ii) BASIS OF ACCOUNTING
The Company follows the mercantile system of Accounting and recognises
income and expenditure on accrual basis.
iii) SALES
Sales are inclusive of Excise Duty but net of Sales Tax.
iv) TAXATION
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax assets
and liabilities are recognised for future tax consequences attributable
to the timing differences that result between the profit offered for
income tax and the profit as per the financial statements. Deferred tax
assets and liabilities are measured as per the tax rates / laws that
have been enacted or substantively enacted by the Balance Sheet date.
v) FIXED ASSETS AND DEPRECIATION
a) VALUATION OF FIXED ASSETS
Fixed Assets are stated at cost of acquisition inclusive of all
incidental expenses related thereto.
b) DEPRECIATION
Depreciation on all fixed assets has been provided on straight line
method on pro-rata basis for the period of use at the rates specified
in SCHEDULE XIV to the Companies Act, 1956.
vi) VALUATION OF INVENTORIES
Raw Materials, stores and spare parts are valued at cost. Finished
Goods & Scrap are valued at cost or Market value whichever is lower.
vii) RETIREMENT BENEFITS.
Gratuity and Leave Encashment is accounted for on accrual basis, on the
basis of actuarial valuations.
viii) CONTINGENT LIABILITIES
Contingent liabilities are usually not provided for unless it is
probable that the future outcome may be materially detrimental to the
Company and are disclosed by way of notes.
ix) INVESTMENTS
Investments are stated at cost.
x) IMPAIRMENT
i. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
ii. After impairment, depreciation is provided on the revised carrying
amount of the assets over its remaining useful life.
iii. A previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However the carrying value after
reversal is not increased beyond the carrying value that would have
prevailed by charging usual depreciation if there was no impairment.
xi) EXPENDITURE ON NEW PROJECTS AND SUBSTANTIAL EXPANSION
Expenditure directly relating to construction activity is capitalized.
Indirect expenditure incurred during construction period is capitalized
as part of the indirect construction cost to the extent to which the
expenditure is indirectly related to construction or is incidental
thereto. Other indirect expenditure (including borrowing costs)
incurred during the construction period, which are not related to the
construction activity nor is incidental thereto are charged to the
Profit & Loss Account. Income earned during construction period is
deducted from the total of the indirect expenditure.
AH direct capital expenditure on expansion is capitalized. As regards
indirect expenditure on expansion, only that portion is capitalized
which represents the marginal increase in such expenditure involved as
a result of expansion. Both direct and indirect expenditure are
capitalized only if they increase the value of the asset beyond its
originally assessed standard of performance.
xii) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue to existing shareholders; share split; and
reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings per share, the net
profit or foss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
xiii) PROVISIONS
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
xiv) FOREIGN EXCHANGE TRANSACTON
Transaction in Foreign Currency are converted at the rates prevailing
on the date of transaction. Gain/ Loss on Realization/Payment of
revenue transaction in the same year is charged to "Exchange
Fluctuation Account" in the Profit & Loss Account.
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