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Accounting Policies of Indo National Ltd. Company

Mar 31, 2023

1. CORPORATE INFORMATION:

Indo National Limited ("The Company") is a public limited Company domiciled in India and incorporated under the provisions of Companies Act, 1956 and has its registered office in Chennai. The Company is in the business of manufacture and marketing of batteries, torches, LED products, mosquito bats, Electrical accessories and Razors & Blades. Nippo is the first Indian dry battery company to have been certified with ISO 9001 and ISO 14001 international standards and has the ISI mark of quality on all its batteries. Nippo has 20 depots across India and has distribution network with over 3200 distributors across India.

2. SIGNIFICANT ACCOUNTING POLICIES:2.1 Statement of compliance

In accordance with the notification issued by the Ministry of Corporate Affairs, the financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Standalone Financial Statements.

2.2 Basis of accounting and preparation of financial statements

The standalone financial statements have been prepared on the historical cost convention under accrual basis of accounting except for certain financial instruments and defined benefit plan (plan assets measured at fair value)that are measured at fair values at the end of each reporting period.

2.2.1 Measurement of Fair values

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 an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account, when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurement are categorized into level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurments in its entirety, which are described as follows :

(i) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

(ii) Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly and

(iii) Level 3 inputs are unobservable inputs for the asset or liability.

2.3 Use of estimates and judgement

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The

Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialise. Estimates have been used in provision for employee benefits and useful lives of property, plant and equipment.

Recent Accounting Developments

Ministry of Corporate Affairs (MCA), vide notification dated 31st March, 2023, has made the following amendments to Ind AS which are effective 1st April, 2023:

a. Amendments to Ind AS 1, Presentation of Financial Statements where the companies are now required to disclose material accounting policies rather than their significant accounting policies.

b. Amendments to Ind AS 8, Accounting policies, Changes in Accounting Estimates and Errors where the definition of ''change in account estimate'' has been replaced by revised definition of ''accounting estimate''.

c. Amendments to Ind AS 12, Income Taxes where the scope of Initial Recognition Exemption (IRE) has been narrowed down. Based on preliminary assessment, the Company does not expect these amendments to have any significant impact on its standalone financial statements

2.4 Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying property, plant and equipment up to the date the asset is ready for its intended use. Subsequent expenditure on property, plant and equipment after its purchase / completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance. Property, plant and equipment acquired and put to use for project purpose are capitalized and depreciation thereon is included in the project cost till the project is ready for its intended use.

2.4.1 Depreciation

Property, Plant and equipment has been provided on the straight-line method on imported body maker and bag makers, other projects under plant and equipments on assets relating to 3D Project (I line), 3U Unit (New line), 4U Units (New lines), roads laid in factory and solar plant and written down value method on all other tangible assets as per the useful life prescribed in Schedule II to the Companies Act, 2013. Motor car purchased under new block is depreciated over 4 years. Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. Some of the fixed assets are depreciated over its useful life on the basis of the technical certificate received by the company.

2.5 Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. Intagible assets are amortized over their useful life.

2.5.1 Intangible assets under development

The Company expenses costs incurred during research phase to profit or loss in the year in which they are incurred. Development phase expenses are initially recognised as intangible assets under development until the development phase is complete, upon which the amount is capitalised as intangible asset.

2.6 Impairment of tangible and intangible assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, impairment is recognized for such excess amount. The impairment loss is recognized as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the fair value less costs of disposal and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor, that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. When there is indication that an impairment loss recognized for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not recognized.

2.7 Inventories

Inventories are valued at the lower of cost (on FIFO basis) and net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale including octroi and other levies, transit insurance and receiving charges. Finished goods and work in progress include apportionment of overheads. Net realisable value is the estimated selling price less estimated costs for completion and sale.

Raw materials including components, finished goods, work in process, stock in trade, material in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realizable value. In case the technical or economic factors underlying the valuation undergo material or adverse changes, appropriate write down is made in the year of such adverse change. Material in transit is valued at cost.

2.8 Foreign currency transactions and translations

The functional currency of the Company is Indian rupee (INR).

Foreign currency transactions are initially recorded at the spot rates on the date of the transactions. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates. Non-monetary items denominated in other currencies and that are measured in terms of historical cost are translated at the exchange rates prevailing on the dates on which such values are determined.The difference in translation of monetary assets and liabilities and realised gains and losses on foreign currency transactions are recognized in the Statement of Profit and Loss.

2.9 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs 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 added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the Statement of Profit and Loss.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

2.9.1 Financial assets Classification

The Company classifies its financial assets in the following measurement categories:

(i) those measured at amortised cost and

(ii) those to be measured subsequently at fair value through profit and loss.

(a) Financial assets at amortised cost:

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model whose objective is to hold these assets 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.

(b) Financial assets at fair value through profit or loss:

Financial assets are measured at fair value through profit or loss where it is not measured at amortised cost.

(c) Investment in subsidiaries:

Investment in subsidiaries are measured at cost as per Ind AS 27 - Separate Financial Statements.

(d) Impairment of financial assets

The financial assets will be tested for impairment at each reporting date. Loss allowance for expected credit losses willl be recognised for financial assets measured at amortised cost, if any.

(e) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire.

2.9.2 Financial liabilities and equity Classification

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument:

(a) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

(b) Financial Liabilities

Financial liabilities are measured at amoritsed cost using the effective interest rate method. Trade and other payables maturing within one year from the balance sheet date is measured at carrying amount since the carrying amount approximates the fair value to short term maturity of these instruments.

(c) Derecognition of financial liabilities

The Company derecognizes financial liabilities only when the Company''s obligations are discharged, cancelled or they expire.

2.10 Cash and cash equivalents

Cash comprises of cash in hand and demand deposits with banks. Cash equivalents are shortterm balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Bank overdraft and cash credit are also considered as part of cash and cash equivalents for the purpose of Statement of Cash Flows as they form part of cash management system.

2.11 Revenue recognition(a) Sale of goods

The Company recognizes revenue from sale of goods measured at the fair value of the consideration received or receivable, upon satisfaction of performance obligation which is at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods.

(b) Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

(c) Insurance Claims

Insurance claims are accounted for on the basis of claims admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

2.12 Employee benefits2.12.1 Retirement benefit costs and termination benefits:(a) Defined contribution plan

The eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary. The contributions as specified under the law are made to the Employee Provident Fund Organization(EPFO). The Company is liable only for its fixed contributions which is required to be made in accordance with the schemes in force as notified by EPFO. All contributions made by the company are recognized as expenses for the relevant period.

(b) Defined benefit plan

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net

interest), is reflected immediately in the Balance Sheet with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. The following are the defined benefit plans: Gratuity - The Company has an obligation towards gratuity, a defined benefit plan covering eligible employees. The plan provides for lump sum payment to vested employees on retirement, death while in employment or on separation. Vesting occurs upon completion of five years of service. The liability, which is determined by means of an independent actuarial valuation, is funded with LIC.

Defined benefit costs are categorized as follows:

(i) Service cost (including current service cost, past service cost, gains and losses on curtailment and settlement);

(ii) net interest income or expense and

(iii) remeasurement.

2.12.2 Short term employee benefits and other long-term employee benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and other leaves in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service. Liabilties recognized in respect of short term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange of that related service. Other employee benefits include compensated absences and termination benefits. Both these benefits are settled as per the Company policy and charged to profit and loss account as and when the payment is made.

2.13 Borrowing costs

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognized as an expense.

2.14 Income Tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination or to an item recognised directly in equity or in other comprehensive income.

2.14.1 Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

2.14.2 Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred tax is not recognised for temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of transaction.

Deferred tax assets recognised or unrecognised are reviewed at each reporting date and are recognised / reduced to the extent that it is probable / no longer probable respectively that the related tax benefit will be realised. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. The Company offsets, the current tax assets and liabilities (on a year on year basis) and deferred tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the company will pay normal income tax during the specified period.

2.14.3 Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

2.15 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate of the consideration 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. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

2.16 Leases

From April 1, 2019, leases are recognised as a right-of-use asset and a corresponding liability is recognised at the date at which the leased asset is available for use by the Company. Assets and liabilities arising from a lease are initially measured on present value basis. Lease liability include the net present value of the following payments:

a) fixed payments (including in substance fixed payments), less any lease incentives receivable

b) variable lease payments that are based on an index or a rate, initially measured using the index or rates at the commencement date

c) amounts expected to be payable by the Company under residual value guarantees

d) the exercise price of purchase options if the Company is reasonably certain to exercise that option

e) payment of penalties for terminating the lease, if the lease term reflects the Company exercising that option

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company''s incremental borrowing rate is used, being the rate the Company would have to pay to borrow fund necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to statement of profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

a) the amount of initial measurement of lease liability

b) any lease payments made at or before the commencement date less any incentives received

c) any initial direct costs and

d) restoration costs

Right-of-use assets are generally depreciated over the shorter of asset''s useful life and the lease term on a straight line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s useful life.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straightline basis as an expense in statement of profit and loss. Short term leases are leases with a lease term of 12 months or less.

2.17 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share (if any) is computed by dividing the profit / (loss) for the year as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.18 Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.


Mar 31, 2018

1. CORPORATE INFORMATION:

Indo National Limited ("The Company") is a public limited Company domiciled in India and incorporated under the provisions of Companies Act, 1956 and has its registered office in Chennai. The Company is in the business of manufacture of Batteries and trading Torches and Emergency power backup products. The Company recently launched LED and Mosquito Bats. Nippo is the first Indian dry battery company to have been certified with ISO 9001 and ISO 14001 international standards and has the ISI mark of quality on all its batteries. Nippo has 28 depots across India and has distribution network with over 3500 (approx.) stockiest PAN India.

2. SIGNIFICANT ACCOUNTING POLICIES:

2.1 Statement of compliance

In accordance with the notification issued by the Ministry of Corporate Affairs, the financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015. For all periods up to and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These are the first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer Note 2.20 for details of first-time adoption - mandatory exceptions and optional exemptions availed by the Company.

2.2 Basis of accounting and preparation of financial statements

The financial statements have been prepared on the historical cost basis except: defined benefit plans- plan assets measured at fair value.

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 an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account, when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

(i) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

(ii) Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly and

(iii) Level 3 inputs are unobservable inputs for the asset or liability.

2.3 Use of estimates and judgment

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize. Estimates have been used in provision for employee benefits and useful lives of property, plant and equipment.

2.4 Revenue recognition Sale of goods

Revenue from the sale of goods is recognized, net of returns and trade discount, when all the following conditions are satisfied:

The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

The amount of revenue can be measured reliably;

It is probable that the economic benefits associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue includes excise duty but excludes sales tax and value added tax.

Interest income

Interest income on financial asset is accrued on a time proportion basis by reference to the principal amount outstanding and the applicable effective interest rate.

2.5 Foreign currency transactions and translations

The functional currency of the Company is Indian rupee (INR).

Foreign currency transactions are initially recorded at the spot rates on the date of the transactions. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates. The difference in translation of monetary assets and liabilities and realized gains and losses on foreign currency transactions are recognized in the Statement of Profit and Loss.

2.6 Borrowing costs

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognized as an expense.

2.7 EMPLOYEE BENEFITS

2.7.1 Retirement benefit costs and termination benefits:

Defined contribution plan

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions. The following are the defined contribution plans: Provident Fund - This is a defined contribution plan framed in accordance with Indian laws, in accordance with which eligible employees participate. Under the plan, both the employee and employer contribute monthly at a determined rate (currently up to 12% of employee''s salary). Contributions under the plan are made to the trust sponsored by the Company and the Pension Scheme framed by the Central Government. Defined benefit plan

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. The following are the defined benefit plans:

Gratuity - The Company has an obligation towards gratuity, a defined benefit plan covering eligible employees. The plan provides for lump sum payment to vested employees on retirement, death while in employment or on separation. Vesting occurs upon completion of five years of service. The liability, which is determined by means of an independent actuarial valuation, is funded with LIC.

Defined benefit costs are categorized as follows:

(i) Service cost (including current service cost, past service cost, gains and losses on curtailment and settlement);

(ii) net interest income or expense and

(iii) remeasurement.

2.7.2 Short term employee benefits and other long-term employee benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and other leaves in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service. Liabilities recognized in respect of short term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange of that related service. Other employee benefits include compensated absences and termination benefits. Both these benefits are settled as per the Company policy and charged to profit and loss account as and when the payment is made.

2.8 INCOME TAX

2.8.1 Current tax

Current tax is the amount of tax payable on the taxable profit for the year as determined in accordance with the applicable tax rates and provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

2.8.2 Deferred tax

Deferred tax is recognized on temporary differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences of items only to the extent that it is probable that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their reliability.

2.8.3 Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

2.9 Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying property, plant and equipment up to the date the asset is ready for its intended use. Subsequent expenditure on property, plant and equipment after

its purchase / completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance. Property, plant and equipment acquired and put to use for project purpose are capitalized and depreciation thereon is included in the project cost till the project is ready for its intended use.

2.9.1 Depreciation

Property, Plant and equipment has been provided on the straight-line method on imported body maker and bag makers, other projects under plant and equipments on assets relating to 3D Project (I line), 3U Unit (New line), 4U Units (New lines) and solar plant and written down value method on all other tangible assets as per the useful life prescribed in Schedule II to the Companies Act, 2013. Motor car purchased under new block is depreciated over 4 years. Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

2.10 Intangible Assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase / completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

2.10.1 Intangible assets under development

Expenditure on research and development eligible for capitalization are carried as intangible assets under development where such assets are not yet ready for their intended use. An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. 2.10.2Useful lives of intangible assets

Intagible assets are amortized over their useful life.

2.11 Impairment of tangible and intangible assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, impairment is recognized for such excess amount. The impairment loss is recognized as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the fair value less costs of disposal and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor, that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. When there is indication that an impairment loss recognized for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not recognized.

2.12 Inventories

Raw materials including components, finished goods, work in process, stock in trade, material in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realizable value. Cost is computed under FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable. These are shown in balance sheet

based upon technical and economic evaluation carried out by independent valuers but not exceeding the cost thereof. In case the technical or economic factors underlying the valuation undergo material or adverse changes, appropriate write down is made in the year of such adverse change. Material in transit, if any, is valued at cost.

2.13 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate of the consideration 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. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

2.13.1 Warranties

Provisions for service warranties and returns are recognized when the Company has a present or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably measured.

2.14 Cash and cash equivalents

Cash comprises of cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Bank overdraft and cash credit are also considered as part of cash and cash equivalents for the purpose of Statement of Cash Flows.

2.15 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share (if any) is computed by dividing the profit / (loss) for the year as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.16 Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

2.17 Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs 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 added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognized in the Statement of Profit and Loss.

2.17.1 Effective interest method

The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income or expense over the relevant period. The
effective interest rate is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

2.18.1 Financial assets Classification

The Company classifies its financial assets in the following measurement categories:

(i) those measured at amortized cost and

(ii) those to be measured subsequently at fair value through profit and loss.

a. Financial assets at amortized cost:

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business model whose objective is to hold these assets 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.

b. Financial assets at fair value through profit or loss:

Financial assets are measured at fair value through profit or loss where it is not measured at amortized cost.

c. Investment in subsidiaries:

Investment in subsidiaries are measured at cost as per Ind AS 27 - Separate Financial Statements.

d. Impairment of financial assets

The financial assets will be tested for impairment at each reporting date. Loss allowance for expected credit losses will be recognized for financial assets measured at amortized cost, if any.

e. Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire.

2.18.2 Financial liabilities and equity Classification

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument:

a. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

b. Financial Liabilities

Financial liabilities are measured at amortized cost using the effective interest rate method. Trade and other payables maturing within one year from the balance sheet date is measured at carrying amount since the carrying amount approximates the fair value to short term maturity of these instruments.

c. Derecognition of financial liabilities

The Company derecognizes financial liabilities only when the Company''s obligations are discharged, cancelled or they expire.

2.19 First-time adoption - mandatory exceptions and optional exemptions:

Overall principle

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to the certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below:-

a. Derecognition of financial assets and financial liabilities:

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2016 (the transition date).

b. Deemed cost for property, plant and equipment and intangible assets:

The Company has elected to continue with the carrying value of all of its property, plant and equipment, investment property, and intangible assets recognized as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

c. Deemed cost for Investment in Subsidiaries:

The Company has elected to continue with the carrying value of its investment in subsidiary recognized as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.


Mar 31, 2015

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act, 201 3

b) USE OF ESTIMATES

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions that affect the reported amounts, assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year. The management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results could differ from these estimates.

c) PROVISIONS AND CONTINGENCIES

Provisions : Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are not discounted to their present value.

Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

d) INVENTORIES

Raw materials including components, Finished goods, Work in process, Stock in trade (Traded Goods), materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

e) DEPRECIATION

Depreciation is charged on the fixed assets except land at the rates provided in Part "C" of Schedule II of the Companies Act, 2013 as under :

(i) under straight line method on imported Body maker and Bag openers, other projects under plant and machinery on assets relating to 3D Project (I Line), 3U Unit (New Line), Wind Mills and Solar Plant and on intangible assets.

(ii) under written down value method on all the other tangible assets, having regard to the expected useful life and residual value commencing from the date the asset is available for use.

Assets individually costing Rs.5,000/- or less is fully depreciated.

f) REVENUE RECOGNITION

(i) Sales exclude discounts,sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

g) FIXED ASSETS

Fixed assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

h) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of monetary assets and liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

i) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans.The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. and HDFC Life. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are credited / charged to revenue.

iii) In respect of those not covered by L.I.C. and HDFC Life schemes necessary provision has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company's policy.

3) Termination benefits : Payments made under employees 'Early Seperation Scheme' are charged to the statement of Profit and loss.

j) EARNINGS PER SHARE

The company's share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

k) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises of current tax and deferred tax. Current tax is recognised based on assessable income computed in accordance with the Income Tax Act, 1961, and at the prevailing rates. Deferred tax liability is recognized for all timing differences. The deferred tax asset on temporary difference is recognized subject to consideration of prudence.

Deferred tax asset and liabilities are measured at the tax rates that have been enacted or substantively enacted at the balance sheet date.

l) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

m) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

n) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and amortised over their useful life.

o) IMPAIRMENT OF ASSETS

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount is estimated. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the statement of profit and loss to the extent the carrying amount exceeds the recoverable amount.


Mar 31, 2014

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act,1956.

b) USE OF ESTIMATES

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year and management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results could differ from these statements.

c) INVENTORIES

Raw materials including components, Finished goods, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

d) FIXED ASSETS AND DEPRECIATION

Depreciation has been charged:

(i) at 10% under straight line method on imported Body maker and Bag openers, other projects under plant and machinery and intangible assets having regard to the expected useful life and residual value and

(ii) at the rates and in the manner prescribed under schedule XIV of the Companies Act,1956.

(a) on assets relating to 3D Project (I line), 3U Unit (New Line) and assets related to Wind Mills and Solar Plant under the straight line method.

(b) on all the other assets under the written down value method.

e) REVENUE RECOGNITION

(i) Sales exclude discounts,sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

f) FIXED ASSETS

Fixed assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

g) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

h) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans.The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are credited / charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provision has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company''s policy.

3) Termination benefits : Payments made under employees ''Early Seperation Scheme'' are charged to the statement of Profit and loss.

i) EARNINGS PER SHARE

The company''s share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

j) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax liability is recognised for all timing differences. The deferred tax asset on temporary difference is recognised subject to consideration of prudence.

k) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

l) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

m) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and written off over their useful life.

n) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets determined by the Company, no loss has been recognised on impairment of assets.

The Company has issued only one class of equity shares having at par value of Rs.10/- each. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the Annual General Meeting and is declared on approval.


Mar 31, 2013

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act,1956.

b) USE OF ESTIMATES

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year and management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results could differ from these statements.

c) INVENTORIES

Raw materials including components, Finished goods, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

d) FIXED ASSETS AND DEPRECIATION

Depreciation has been charged:

(i) at 10% under straight line method on imported Body maker and Bag openers, other projects under plant and machinery and intangible assets having regard to the expected useful life and residual value and

(ii) at the rates and in the manner prescribed under schedule XIV of the Companies Act,1956.

(a) on assets relating to 3D Project (I line), 3U Unit (New Line) and assets related to Wind Mills under the straight line method.

(b) on all the other assets under written down value method.

e) REVENUE RECOGNITION

(i) Sales exclude discounts,sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

f) FIXED ASSETS

Fixed assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

g) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

h) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans.The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are credited / charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provision has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company''s policy.

3) Termination benefits : Payments made under employees ‘Early Seperation Scheme'' are charged to the statement of Profit and loss.

i) EARNINGS PER SHARE

The company''s share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

j) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax liability is recognised for all timing differences. The deferred tax asset on temporary difference is recognised subject to consideration of prudence.

k) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

l) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

m) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and written off over their useful life.

n) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets determined by the Company, no loss has been recognised on impairment of assets.


Mar 31, 2012

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year and management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results may differ from these statements.

c) INVENTORIES

Finished goods, Raw materials including components, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

d) FIXED ASSETS AND DEPRECIATION

Depreciation has been charged:

(i) at 10% under straight line method on imported Body maker and Bag openers and other projects under plant and machinery having regard to the expected useful life and residual value and

(ii) at the rates and in the manner prescribed under schedule XIV of the Companies Act, 1956.

(a) on assets relating to 3D Project (I line) and assets related to Wind Mills under the straight line method.

(b) on all the other assets under written down value method.

e) REVENUE RECOGNITION

(i) Sales exclude discounts, sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

f) FIXED ASSETS

Fixed assets are stated at cost less depreciation /amortisation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

g) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

h) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss account of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss account of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans. The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provisions has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company's policy.

3) Termination benefits : Payments made under employees 'Early Seperation Scheme' are charged to the statement of Profit and loss.

i) EARNINGS PER SHARE

The company's share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

j) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax liability is recognised for all timing differences. The deferred tax asset on temporary difference is recognised subject to consideration of prudence.

k) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

l) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

m) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and written off over their useful life.

n) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets determined by the Company, no loss has been recognised on impairment of assets.


Mar 31, 2011

A) The financial accounts are prepared under the historical cost convention and accounted on accrual basis.

b) INVENTORIES

Raw materials including components, finished goods, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method.

c) DEPRECIATION

Depreciation has been charged :

i) at 10% under straight line method on machinery imported Body maker and Bag openers and other projects having regard to the expected useful life and residual value and

ii) at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

a) on assets relating to 3D Project (I Line) and assets related to Wind Mill under straight line method.

b) on all the other assets under written down value method.

d) REVENUE RECOGNITION

i) Sales exclude Discounts, Sales Tax recoveries and include Excise Duty.

ii) Interest is recognised on the time basis determined by the amount outstanding and the rate applicable.

e) FIXED ASSETS

Fixed Assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

f) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Profit & Loss Account. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the value of fixed assets.

g) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the profit and loss account of the year in which the employee has rendered services:

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans. The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C and paid under the plan are charged to revenue.

b) Actuarial gains and losses are charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provisions has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per Companys Policy.

3) Termination benefits: Payments made under employees Early Separation Scheme are amortised over a period of five years from the date upto which the scheme was in operation.

h) EARNINGS PER SHARE

The Companys share capital consists only of Equity Shares. The basic earning per share is calculated and disclosed.

i) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax is recognised for all timing differences subject to consideration of prudence. Deferred tax in respect of the accumulated balance as on 31- 03-2001 has been recognised in the accounts as deferred tax, asset / liabilities with a corresponding charge of net amount to the general reserve.

j) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

k) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

l) INTANGIBLE ASSETS

There are no other intangible assets except those disclosed in the accounts separately for Cost of acquired computer software

m) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets, no loss has been recognised on impairment of assets.


Mar 31, 2010

A)The financial accounts are prepared under the historical cost convention and accounted on accrual basis.

b)INVENTORIES

Raw materials including components,finished goods,goods in process,materials in transit,packing materials and stores &spares have been valued at lower of cost and estimated net realiseable value.Cost is computed under the FIFO method.

c)DEPRECIATION

Depreciation has been charged :

i)at 10%under straight line method on machinery imported Body maker and Bag openers and other projects having regard to the expected useful life and residual value of the machinery and

ii)at the rates and in the manner prescribed under Schedule XIV of the Companies Act,1956.

a)on assets relating to 3D Project (I Line)and assets related to Wind Mill under straight line method.

b)on all the other assets under written down value method.

d)REVENUE RECOGNITION

i)Sales exclude Discounts,Sales Tax recoveries and include Excise Duty.

ii)Interest is recognised on the time basis determined by the amount outstanding and the rate applicable.

e)FIXED ASSETS

Fixed Assets are stated at cost less depreciation except land which is stated at cost.Cost comprises purchase price and attributable costs (including financing costs).

f)FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Profit &Loss Account.In respect of liabilities incurred in foreign currencies for acquisition of fixed assets,variations in exchange rates at thetime of repayment of loan instalments are adjusted to the value of fixed assets.

g) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

2) Post employment and other long term employee benefits recognised as expense in the profit and loss account of the year in which the employee has rendered services:

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans. The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C and paid under the plan are charged to revenue.

b) Actuarial gains and losses are charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provisions has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per Company’s Policy.

1) Termination benefits: Payments made under employees ’ Early Separation Scheme’ are amortised over a period of five years from the date upto which the scheme was in operation.

h) EARNINGS PER SHARE

The Company’s share capital consists only of Equity Shares. The basic earning per share is calculated and disclosed.

i) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax is recognised for all timing differences subject to consideration of prudence. Deferred tax in respect of the accumulated balance as on 31- 03-2001 has been recognised in the accounts as deferred tax, asset / liabilities with a corresponding charge of net amount to the general reserve.

j) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

k) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

l) INTANGIBLE ASSETS

There are no other intangible assets except those disclosed in the accounts separately for Cost of acquired computer software

m) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets, no loss has been recognised on impairment of assets.

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