Mar 31, 2015
1. Basis of preparation of financial statement
(a) Basis of Accounting:
The financial statements have been prepared and presented under the
historical cost convention on accrual basis of accounting to comply
with the accounting standards notified under the relevant provisions
of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts)
Rules 2014.
All Assets and Liabilities have been classified as current or non
current as per the company's normal operating cycle and other criteria
set out in Schedule III to Companies Act, 2013. Based on the nature of
product and the time between the acquisition of assets for processing
and their realisation in cash or cash equivalent, the company has
ascertained its operating cycle to be 12 months for the purpose of
current and non current classification of assets and liabilities.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) in India requires Management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosures of contingent liabilities on
the date of financial statements.
2. Fixed Assets
All Fixed Assets are stated at cost net of recoverable taxes, less of
accumulated depreciation / amortisation and impairment loss if any. The
cost of Fixed Assets comprises its purchase price, borrowing cost and
any other cost directly attributable to bringing the assets to its
working condition for its intended use. Capital Subsidy received for a
specific asset is reduced from its cost.The expenditure incurred on
commissioning of the project, including the expenditure incurred on
test runs and experimental production, is capitalised.
3. Depreciation
Depreciation on all tangible fixed assets is provided under Straight
Line Method based on its useful lives as prescribed under Schedule II
of Companies Act, 2013. Leasehold land is amortised over the primary
lease period. Intangible assets are amortised over their estimated
useful life.
4. Lease Accounting
Lease rentals on assets taken on lease are recognised as expense in the
statement of Profit and loss account on an accrual basis over the
lease term.
5. Inventory
a) Raw materials, work in progress, finished goods, packing materials,
stores, spares, traded goods and consumables are carried at the lower
of cost and net realisable value. The comparison of cost and net
realisable value is made on an item-by-item basis. Damaged,
unserviceable and inert stocks are suitably depreciated.
b) In determining cost of raw materials, packing materials, traded
goods, stores, spares and consumables, weighted average cost method is
used. Cost of inventory comprises all costs of purchase, duties, taxes
(other than those subsequently recoverable from tax authorities) and
all other costs incurred in bringing the inventory to their present
location and condition.
c) Cost of finished goods and work-in-process includes the cost of raw
materials, packing materials, an appropriate share of fixed and
variable production overheads, excise duty as applicable and other
costs incurred in bringing the inventories to their present location
and condition. Fixed production overheads are allocated on the basis of
normal capacity of production facilities.
6. Investments
Long term investments are carried at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
not temporary in the opinion of the management. Short term investments
are carried at lower of cost and fair value. The comparison of cost and
fair value is done separately in respect of each category of
investments.
Profit and loss on sale of investments is determined on a first in fi
rst out (FIFO) basis.
7. Revenue Recognition
Revenue is recognised only when there is no significant uncertainty as
to the measurability / collectability of amount.
8. Transactions in Foreign Exchange
Transaction in foreign currency is recorded at the exchange rate
prevailing on the date of the transaction. Any income or expense on
account of exchange difference either on settlement or on translation
is recognised in the statement of profit and loss except in case of
long term liabilities where they relate to acquisition of fixed assets
in which case they are adjusted to carrying amount of fixed assets.
The premium on forward exchange contracts is recognized over the period
of the contracts in the profit and loss account.
9. Employee Benefits
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits and they
are recognized in the period in which the employee renders the related
service. The Company recognises the undiscounted amount of short term
employee benefits expected to be paid in exchange for services
rendered as a liability (accrued expense) after deducting any amount
already paid.
(ii) Post-Employment Benefits:
(a) Defined contribution plans
Defined contribution plans are, Government administered Provident Fund
Scheme and Government administered Pension Fund Scheme for all
employees and Superannuation scheme for eligible employees. The
Company's contribution to defined contribution plans are recognized in
the profit and loss account in the financial year to which they
relate.
The interest to the beneficiaries every year is being notified by the
Government.
(b) Defined benefit plans
(i) Gratuity
The Company provides for gratuity, a defined benefit retirement plan
covering eligible employees, The Company makes a lump-sum payment to
vested employees at retirement, death, incapacitation or termination of
employment based on respective employee's salary and tenure of
employment with the company.
Liabilities with regard to gratuity are determined by actuarial
valuation performed by an independent actuary at each balance sheet
date using the Projected Unit Credit Method. The gratuity liability
being unfunded, the company recognises the obligation in balance sheet
as liability in accordance with Accounting Standard 15 Employee Benefi
ts. Acturial Gain / Loss arising from experience adjustments and
changes in actuarial assumptions are recognised in statement of Profit
& Loss in period in which they arise.
(ii) Compensated Absences (Leave Encashment)
The Employees of the Company are entitled to compensated absences which
are both accumulating (subject to maximum limit) and non accumulating
in nature. The expected cost of accumulating compensated absences is
determined by actuarial valuation using the Projected Unit Credit
Method on the additional amount expected to be paid or availed as a
result of unused entitlement that has accumulated at balance sheet
date. Expense on non accumulating compensated absences is recognised in
the period in which absences occur.
10. Provision for Taxation
Income tax expense comprises current tax and deferred tax charge or
credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and tax laws that have been enacted or
substantively enacted at the balance sheet date. Deferred tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax laws are recognized only if there is a virtual
certainty of its realization supported by convincing evidence. Deferred
tax assets on account of other timing differences are recognized only
to the extant there is reasonable certainty of its realization. At each
Balance Sheet date, the carrying amount of deferred tax assets are
reviewed to reassure realization.
Minimum Alternate Tax credit (MAT Credit) is recognized as an asset
only when and to the extant there is a convincing evidence that the
Company will pay normal 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
convincing evidence to the effect that the Company will pay normal
income tax during the specified period.
11. Provisions and Contingencies
The company creates a provision when there exists a present obligation
as a result of a past event that probably requires an outfl ow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outfl ow of resources. When there is a possible
obligation or a present obligation in respect of which likelihood of
outfl ow of resources is remote, no provision or disclosure is made.
12. Earnings per share
The basic and diluted earnings per share ("EPS") is computed by
dividing the net profit after tax for the year by weighted average
number of equity shares outstanding during the year.
Mar 31, 2014
1. Basis of preparation of financial statement
(a) Basis of Accounting:
The financial statements have been prepared and presented under the
historical cost convention on accrual basis of accounting to comply
with the accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 and with the relevant provisions of the
Companies Act, 1956.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) in India requires Management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosures of contingent liabilities on
the date of financial statements.
2. Fixed Assets
All the fixed assets are stated at historical cost. In respect of
Assets acquired under new project/ expansion/ restructuring, interest
cost on borrowings and other related expenses during trial runs and
upto satisfactory commencement of commercial production have been
capitalised to Plant & Machinery and anysubsidy given for a specific
assets is reduced from cost. The Accounting Standard prescribed in the
Companies (Accounting Standards) Rules, 2006 and with the relevant
provisions of the Companies Act, 1956 has been compiled with in this
respect.
3. Depreciation
Depreciation has been provided on straight line method on all fixed
assets except Leasehold land at the rates specified in Schedule XIV to
the Companies Act, 1956. Premium on lease hold land is amortised over
the period of lease. Intangible assets are amortised over their
estimated useful life.
4. Lease Accounting
Lease rentals on assets taken on lease are recognised as expense in the
statement of Profit and loss account on an accrual basis over the lease
term.
5. Inventory
a) Raw materials, work in progress, finished goods, packing materials,
stores, spares, traded goods and consumables are carried at the lower
of cost and net realisable value. The comparison of cost and net
realisable value is made on an item-by-item basis. Damaged,
unserviceable and inert stocks are suitably depreciated.
b) In determining cost of raw materials, packing materials, traded
goods, stores, spares and consumables, weighted average cost method is
used. Cost of inventory comprises all costs of purchase, duties, taxes
(other than those subsequently recoverable from tax authorities) and
all other costs incurred in bringing the inventory to their present
location and condition.
c) Cost of finished goods and work-in-process includes the cost of raw
materials, packing materials, an appropriate share of fixed and
variable production overheads, excise duty as applicable and other
costs incurred in bringing the inventories to their present location
and condition. Fixed production overheads are allocated on the basis of
normal capacity of production facilities.
6. Investments
Long term investments are carried at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
not temporary in the opinion of the management. Short term investments
are carried at lower of cost and fair value. The comparison of cost and
fair value is done separately in respect of each category of
investments.
Profit and loss on sale of investments is determined on a first in
first out (FIFO) basis.
7. Revenue Recognition
Revenue is recognised only when there is no significant uncertainty as
to the measurability / collectability of amount.
8. Transactions in Foreign Exchange
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Exchange differences
arising on foreign exchange transactions settled during the year are
recognised in the Profit and loss account of the year.
Monetary assets and liabilities denominated in foreign currencies,
which are outstanding as at the year end are translated at the closing
exchange rate and the resultant exchange differences are recognised in
the Profit and loss account.
The premium or discount on forward exchange contracts is recognized
over the period of the contracts in the profit and loss account.
9. Employee Benefits
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits and they are
recognised in the period in which the employee renders the related
service The Company recognises the undiscounted amount of short term
employee benefits expected to be paid in exchange for services rendered
as a liability (accrued expense) after deducting any amount already
paid.
(ii) Post-employment benefits:
(a) Defined contribution plans
Defined contribution plans are, Government administered Provident Fund
Scheme and Government administered Pension Fund Scheme for all
employees and Superannuation scheme for eligible employees. The
Company''s contribution to defined contribution plans are recognised in
the profit and loss account in the financial year to which they relate.
The interest to the beneficiaries every year is being notified by the
Government.
(b) Defined benefit plans
(i) Defined benefit gratuity plan
The Company operates a defined benefit gratuity plan for employees.
The cost of providing defined benefits is determined using the
Projected Unit Credit Method with actuarial valuations being carried
out at each balance sheet date. Past service cost is recognised
immediately to the extent that the benefits are already vested, else is
amortised on a straight-line basis over the average period until the
amended benefits become vested.
The defined benefit obligations recognised in the balance sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognised actuarial gains and losses and unrecognised
past service costs, and as reduced by the fair value of plan assets, if
applicable. Any defined benefit asset (negative defined benefit
obligations resulting from this calculation) is recognised representing
the unrecognised past service cost plus the present value of available
refunds and reductions in future contributions to the plan.
(iii) Other long term employee benefits
Entitlements to annual leave and sick leave are recognised when they
accrue to employees. Sick leave can only be availed while annual leave
can either be availed or encashed subject to a restriction on the
maximum number of accumulation of leaves. The Company determines the
liability for such accumulated leaves using the Projected Accrued
Benefit Method with actuarial valuations being carried out at each
balance sheet date
10. Provision for Taxation
Income tax expense comprises of current tax (i.e. amount of tax for the
period determined in accordance with the Income Tax Act, 1961),
deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and fringe benefit tax (computed in accordance with the
relevant provisions of the Income tax Act, 1961).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future;
however, where there is unabsorbed depreciation or carry forward loss
under taxation laws, deferred tax assets are recognised only if there
is a virtual certainty of realisation of such assets. Deferred tax
assets are reviewed as at each balance sheet date to reassess
realisation.
11. Provisions and Contingencies
The company creates a provision when there exists a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.
12. Earnings per share
The basic and diluted earnings per share ("EPS") is computed by
dividing the net profit after tax for the year by weighted average
number of equity shares outstanding during the year.
Mar 31, 2013
1. Basis of preparation of financial statement
(a) Basis of Accounting:
The financial statements have been prepared and presented under the
historical cost convention on accrual basis of accounting to comply
with the accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 and with the relevant provisions of the
Companies Act, 1956.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) in India requires Management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosures of contingent liabilities on
the date of financial statements.
2. Fixed Assets
All the fixed assets are stated at historical cost. In respect of
Assets acquired under new project/ expansion/ restructuring, interest
cost on borrowings and other related expenses during trial runs and
upto satisfactory commencement of commercial production have been
capitalised to Plant & Machinery and any subsidy given for a specific
assets is reduced from cost. The Accounting Standard prescribed in the
Companies (Accounting Standards) Rules, 2006 and with the relevant
provisions of the Companies Act, 1956 has been compiled with in this
respect.
3. Depreciation
Depreciation has been provided on straight line method on all fixed
assets except Leasehold land at the rates specified in Schedule XIV to
the Companies Act, 1956. Premium on lease hold land is amortised over
the period of lease. Intangible assets are amortised over their
estimated useful life.
4. Lease Accounting
Lease rentals on assets taken on lease are recognised as expense in the
statement of Profit and loss account on an accrual basis over the lease
term.
5. Inventory
a) Raw materials, work in progress, finished goods, packing materials,
stores, spares, traded goods and consumables are carried at the lower
of cost and net realisable value. The comparison of cost and net
realisable value is made on an item-by-item basis. Damaged,
unserviceable and inert stocks are suitably depreciated.
b) In determining cost of raw materials, packing materials, traded
goods, stores, spares and consumables, weighted average cost method is
used. Cost of inventory comprises all costs of purchase, duties, taxes
(other than those subsequently recoverable from tax authorities) and
all other costs incurred in bringing the inventory to their present
location and condition.
c) Cost of finished goods and work-in-process includes the cost of raw
materials, packing materials, an appropriate share of fixed and
variable production overheads, excise duty as applicable and other
costs incurred in bringing the inventories to their present location
and condition. Fixed production overheads are allocated on the basis of
normal capacity of production facilities.
6. Investments
Long term investments are carried at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
not temporary in the opinion of the management. Short term investments
are carried at lower of cost and fair value. The comparison of cost and
fair value is done separately in respect of each category of
investments.
Profit and loss on sale of investments is determined on a first in
first out (FIFO) basis.
7. Revenue Recognition
Revenue is recognised only when there is no significant uncertainty as
to the measurability / collectability of amount.
8. Transactions in Foreign Exchange
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transaction. Exchange differences
arising on foreign exchange transactions settled during the year are
recognised in the Profit and loss account of the year.
Monetary assets and liabilities denominated in foreign currencies,
which are outstanding as at the year end are translated at the closing
exchange rate and the resultant exchange differences are recognised in
the Profit and loss account.
The premium or discount on forward exchange contracts is recognized
over the period of the contracts in the profit and loss account.
9. Employee Benefits
(i) Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits and they are
recognised in the period in which the employee renders the related
service The Company recognises the undiscounted amount of short term
employee benefits expected to be paid in exchange for services rendered
as a liability (accrued expense) after deducting any amount already
paid.
(ii) Post-employment benefits:
(a) Defined contribution plans
Defined contribution plans are, Government administered Provident Fund
Scheme and Government administered Pension Fund Scheme for all
employees and Superannuation scheme for eligible employees. The
Company''s contribution to defined contribution plans are recognised in
the profit and loss account in the financial year to which they relate.
The interest to the beneficiaries every year is being notified by the
Government.
(b) Defined benefit plans
(i) Defined benefit gratuity plan
The Company operates a defined benefit gratuity plan for employees.
The cost of providing defined benefits is determined using the
Projected Unit Credit Method with actuarial valuations being carried
out at each balance sheet date. Past service cost is recognised
immediately to the extent that the benefits are already vested, else is
amortised on a straight-line basis over the average period until the
amended benefits become vested.
The defined benefit obligations recognised in the balance sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognised actuarial gains and losses and unrecognised
past service costs, and as reduced by the fair value of plan assets, if
applicable. Any defined benefit asset (negative defined benefit
obligations resulting from this calculation) is recognised representing
the unrecognised past service cost plus the present value of available
refunds and reductions in future contributions to the plan.
(iii)Other long term employee benefits
Entitlements to annual leave and sick leave are recognised when they
accrue to employees. Sick leave can only be availed while annual leave
can either be availed or encashed subject to a restriction on the
maximum number of accumulation of leaves. The Company determines the
liability for such accumulated leaves using the Projected Accrued
Benefit Method with actuarial valuations being carried out at each
balance sheet date
10. Provision for Taxation
Income tax expense comprises of current tax (i.e. amount of tax for the
period determined in accordance with the Income Tax Act, 1961),
deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and fringe benefit tax (computed in accordance with the
relevant provisions of the Income tax Act, 1961).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future;
however, where there is unabsorbed depreciation or carry forward loss
under taxation laws, deferred tax assets are recognised only if there
is a virtual certainty of realisation of such assets. Deferred tax
assets are reviewed as at each balance sheet date to reassess
realisation.
11. Provisions and Contingencies
The company creates a provision when there exists a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.
12. Earnings per share
The basic and diluted earnings per share ("EPSÂ) is computed by
dividing the net profit after tax for the year by weighted average
number of equity shares outstanding during the year.
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