Mar 31, 2015
(a) Basis of Preparation :
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The financial statements have been prepared to comply in
all material respect in accordance with the notified Accounting
Standards issued under companies (Accounting Standards) Rules, 2006 (as
amended) and the relevant provisions of the Companies Act, 2013. The
financial statements have been prepared under the historical cost
convention on an accrual basis except in case of assets for which
revaluation is carried out.
The accounting policies have been consistently applied by the Company
and are consistent with those applied in the previous year.
(b) Use of estimates :
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
(c) Tangible Fixed Assets :
Fixed Assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
(d) Depreciation on Tangible Fixed assets :
(a) Depreciation of Fixed Tangible Assets has been computed on straight
line basis on cost/enhanced cost in accordance with Schedule-XIV read
with Section 205(2)(b) of the Companies Act, 1956 except in cases
"where the assets have been identified/retired from active use and
where the assets are reduced to the estimated realizable value in the
year of its retirement". The incremental depreciation on enhanced cost
on account of revaluation is adjusted against revaluation reserve. The
company made an internal technical evaluation to evaluate the useful
lives of the fixed assets of the company in view of applicability of
schedule -II of the Companies Act, 2013 which provides for depreciation
on useful lives from the accounting periods commencing on or after 01st
April, 2014 and they opinion that the useful lives as worked out with
the old rate of depreciation are sufficient to provide depreciable
amount over its remaining useful life. The company has used following
estimated useful life to provide depreciation on its fixed assets which
has been calculated on a straight line basis using rates as applied in
earlier years in accordance with schedule-XIV of Companies Act, 1956.
Particulars Estimated useful Useful life as per
life(years) schedule-II of the
Companies Act, 2013
(years)
Building 30 30
Plant & machinery 20/13 15
Furniture and fixtures 15 8
Office equipments 20 5
Vehicles 10 10
Plastic moulds 6 8
Computer 6 3
(e) Intangible assets
Intangible Assets are stated at cost, less accumulated amortization.
Intangible Asset (rights with M& M Resorts Ltd) are amortized using
straight line method over their estimated useful life of eight years.
Cost of leasehold land is not being amortized over the period of lease
and shall be amortized on termination / renewal of lease agreements.
(f) Leases
Where the Company is the lessee
Lease where the lessor effectively retains substantially all the risk
and benefits of ownership of the leased item are classified as
operation lease and rentals and all other expenses are treated as
revenue expenditure with reference to the term(s) of the lease(s).
(g) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
per the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Expenditure on new projects and
substantial expansion
Expenditure directly relating to construction activity is capitalized.
Indirect expenditure incurred during construction period is capitalized
as part of construction cost to the extent to which the expenditure is
indirectly related to construction or is incidental thereto. Income
earned, if any, during construction period is deducted from the total
of the indirect expenditure. During the year no expenditure on new
project/substantial expansion has been incurred.
(h) Inventories
Raw Materials, Components, Stores and Packing Materials are valued at
Cost including taxes. Semi-finished goods are valued at Estimated Cost
including taxes. Finished goods are valued at cost inclusive of excise
duty for which provision has been made. Custom duty on material lying
in bonded warehouse is included in cost when it is actually paid/
incurred at the time of removal from the warehouse and this treatment
has no impact on the profits of the Company.
(i) Investments
Investments are stated at cost. Dividend income is accounted for in the
year in which it is received.
(j) Research and developments
The revenue expenditure on research & development is expensed out under
the relevant head of accounts in the year in which it is incurred.
However, expenditure which results in creation of capital tangible
assets is treated in the same way as expenditure on other fixed assets.
(k) Treatment of Contingent Liabilities
Liabilities of a contingent nature are accounted for only on actual
occurrence/final settlement of the liabilities.
(l) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue in respect of insurance/other claims etc. is
recognized only when it is reasonably certain that the ultimate
collection will be made.
Sale of Goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Excise Duty deducted
from turnover (gross) is the amount that is included in the amount of
turnover (gross) and not the entire amount of liability arisen during
the year.
(m) Foreign Currency Transactions
Transactions in foreign currencies are translated at the exchange rate
prevailing on the date of the transaction. In case where the amount is
not received / paid upto the balance sheet date, the conversion of
foreign currency items have been accounted for at the rates prevailing
as at the year end. Exchange differences arising on the settlement of
monetary items or on reinstatement of monetary items at rates different
from those at which they were initially recorded during the year or
reported in previous financial statements, are recognized as income or
as expenses.
(n) Retirement and other employee benefits
i) Retirement benefits in the form of Provident Fund are charged to the
Profit and Loss Account of the year when the contributions to the
respective funds are due. There are no other obligations other than the
contribution payable to the Provident Fund Commissioner as per law.
ii) Provisions for Gratuity & Leave Encashment has been provided under
the project unit credit method as per the actuary valuation at the end
of the financial year and the details of the same are as under:-
S. Particulars Gratuity Gratuity
No Unfunded Unfunded
31.03.2015 31.03.2014
Actuarial Assumptions
1 Discount Rate 8.00 8.50
2 Rate of increase in
Compensation levels 5.50 5.50
3 Rate of return on plan assets 0.00 0.00
4. Expected average remaining
working lives of employees(years) 13.35 15.13
Amount Amount
Rs. Rs.
Expenses Recognized in the
Statement of Profit & Loss Account
1 Current Service Cost 15,78,746 15,00,735
2 Past Service Cost - -
3 Interest Cost 19,09,651 20,15,861
4 Expected Return on Plan Assets
5 Net Actuarial (gain)/loss
recognized in the year (359,309) 18,84,937
6 Expenses recognized in the
statement of profit and loss 31,29,088 54,01,533
Net Assets (Liability) recognized
in the Balance Sheet
1 Present Value of Obligation as
at the end of the year 2,51,93,943 2,24,66,483
2 Fair Value of Plan Assets as
at the end of the year - -
3 Funded Status (2,51,93,943) (2,24,66,483)
4 Current Liability 47,21,896 42,23,846
5 Non Current Liability 2,04,72,047 1,82,42,637
6 Unrecognized Actuarial
(gain)/losses - -
7 Net Asset(Liability)Recognized
in Balance Sheet (2,51,93,943) (2,24,66,483)
Change in Obligation
during the year
1 Present value of Obligation
as at the beginning of the year 2,24,66,483 2,37,16,009
2 Current Service Cost 15,78,746 15,00,735
3 Interest Cost 19,09,651 20,15,861
4 Settlement Cost - -
5 Past Service Cost - -
6 Actuarial (gain)/loss on obligation (359,309) 18,84,937
7 Benefits & Payments (401,628) 66,51,059
8 Present Value of Obligation as
at the end of the year 2,51,93,943 2,24,66,483
S. Particulars Leave Encashment Leave Encashment
No Unfunded Unfunded
31.03.2015 31.03.2014
Actuarial Assumptions
1 Discount Rate 8.00 8.50
2 Rate of increase in
Compensation levels 5.50 5.50
3 Rate of return on plan assets 0.00 0.00
4. Expected average remaining
working lives of employees(years) 13.35 15.16
Amount Amount
Rs. Rs.
Expenses Recognized in the
Statement of Profit & Loss Account
1 Current Service Cost 5,96,703 5,75,957
2 Past Service Cost - -
3 Interest Cost 6,67,082 5,76,154
4 Expected Return on Plan Assets - -
5 Net Actuarial (gain)/loss
recognized in the year (2,44,934) 476,363
6 Expenses recognized in the
statement of profit and loss 10,18,851 16,28,479
Net Assets (Liability) recognized
in the Balance Sheet
1 Present Value of Obligation as
at the end of the year 8,535,686 78,48,026
2 Fair Value of Plan Assets as
at the end of the year - -
3 Funded Status (85,35,636) (78,48,026)
4 Current Liability 33,71,486 30,76,709
5 Non Current Liability 51,64,200 47,71,317
6 Unrecognized Actuarial
(gain)/losses - -
7 Net Asset(Liability)Recognized
in Balance Sheet (85,35,686) (78,48,026)
Change in Obligation
during the year
1 Present value of Obligation
as at the beginning of the year 78,48,026 67,78,278
2 Current Service Cost 596,703 5,75,957
3 Interest Cost 6,67,082 5,76,154
4 Settlement Cost - -
5 Past Service Cost - -
6 Actuarial (gain)/loss on obligation (2,44,934) 4,76,368
7 Benefits & Payments 3,31,191 5,58,731
8 Present Value of Obligation as
at the end of the year 85,35,686 78,48,026
Note:-The Company has initially set-up its own gratuity fund which is
covered under the group gratuity scheme with Life Insurance Corporation
of India. However the Company is not contributing to Gratuity fund
since F.Y.2008-09. The estimated value of the fund '1,186,000/- has
been shown as amount receivable from LIC under Gratuity Trust policy
under the head short term loans and advances which the company had
already paid to the employees of the company from its own sources.
Liability in respect of gratuity and leave encashment due to the
employees as on 31/03/2015 as per actuarial valuation amount to
Rs.251.94 Lacs and Rs.85.36 Lacks (Rs. 224.66 Lacs and Rs.78.48 lacks)
respectively and which has been duly provided in the books of the
Company. The remaining gratuity liability provided in the financial
statements are in respect of ex-employees of the Pune unit of the
company to whom the payments are outstanding.
(o) Income Taxes
Tax expense comprises of current and deferred Tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
difference of earlier year.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. Deferred tax
assets are recognized if there is virtual certainty supported by
convincing evidence that such deferred tax assets can be realized
against future taxable profits.
(p) Impairment of Assets
As stipulated in AS-28, the company assessed potential generation of
economic benefits from its business units and is of the view that
assets employed in continuing business are capable of generating
adequate returns over their useful lives in the usual course of
business. There is no indication to the contrary and accordingly the
management is of the view that no impairment provision is called for in
these accounts.
(q) Earning Per Share
Basic earning per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
(r) Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past event 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 are not discounted to
its present value and are determined based on best management estimate
required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current
best management estimates.
Mar 31, 2014
1) General
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The financial statements have been prepared to comply in
all material respect in accordance with the notified Accounting
Standards issued under companies (Accounting Standards) Rules, 2006 (as
amended) and the relevant provisions of the Companies Act, 1956. The
financial statements have been prepared under the historical cost
convention on an accrual basis except in case of assets for which
revaluation is carried out.
The accounting policies have been consistently applied by the Company
and are consistent with those applied in the previous year, except for
the change in accounting policy explained below.
2) Change in accounting policy
Presentation and disclosure of financial statements
The accounts have been prepared in accordance with the revised
schedule-VI notified under the Companies Act 1956.
3) i) The Company has set-up its own gratuity fund which is covered
under the group gratuity scheme with Life Insurance Corporation of
India. Liability in respect of gratuity due to the employees as on
31/03/2014 as per actuarial valuation amount to Rs. 287.45 Lacs (Rs.
237.16 Lacs), which has been duly provided in the books of the Company.
However the Company is not contributing to Gratuity fund since F.
Y.2008-09.
ii) Liability in respect of earned leave due to the employees as on
31/03/2014 as per actuarial valuation amounts to Rs. 78.48 Lacs
(Rs.67.78 Lacs), which has been duly provided in the current financial
year.
iii) Under the scheme of demerger with Lumax Industries Ltd. sale-tax
deferment liability in respect of rear view mirror division was
transferred to the Company. The approval and the certificate for
transfer of deferment of sale tax liability in the name of the Company
from State Authority have been received. The deferment is interest
free and relates to financial year 1999-2000 to 2004-05. The amount is
repayable in five equal yearly installments commencing from the end of
the tenth financial year i.e. 2009-10. The sale-tax deferred liability
amounting to Rs 8,959,858/- (Rs. 8,959,858/-) have been included in
unsecured loans. The overdue installments repayable amount as on
31/03/2014 is Rs. 2,284,607/-
11) ACCOUNTING POLICIES :
i) Method of Depreciation, Depletion & Amortization:
a) Depreciation of Fixed Tangible Assets has been computed on straight
line basis on cost/enhanced cost in accordance with Schedule-XIV read
with Section 205(2)(b) of the Companies Act, 1956 except in cases
"where the assets have been identified/retired from active use and
where the assets are reduced to the estimated realizable value in the
year of its retirement". However depreciation on plastic bins has
been provided at 25%, keeping in view, the life of expectancy of the
bins. The incremental depreciation on enhanced cost on account of
revaluation is adjusted against revaluation reserve.
b) Cost of Leasehold Land is not being amortized over the period of
lease and shall be amortised on termination/renewal of lease
agreements.
c) Intangible Assets-Amortisation of intangible assets is provided on
straight- line method to allocate depreciable amount of an asset over
its usual life.
ii) Conversion of Foreign Currency items:
Transactions in foreign currencies are translated at the exchange rate
prevailing on the date of the transactions and in case of purchase of
materials and sales of goods, the exchange gains/losses on settlement
during the year, are adjusted to respective accounts. In cases where
the amount is not received/paid up to the Balance Sheet date, the
conversion of foreign currency items have been accounted for at the
rates prevailing as at the year end and material variance has been
recognized in the Accounts.
iii) Valuation of Inventories:
Raw Materials, Components, Stores and Packing Materials are valued at
Cost including taxes. Semi-finished goods valued at Estimated Cost
including taxes. Finished goods are valued at cost inclusive of excise
duty for which provision has been made. Custom duty on material lying
in bonded warehouse is included in cost when it is actually paid/
incurred at the time of removal from the warehouse and this treatment
has no impact on the profits of the Company.
iv) Research & Development:
The revenue expenditure on research & development is expensed out under
the relevant head of accounts in the year in which it is incurred.
However, expenditure which results in creation of capital tangible
assets is treated in the same way as expenditure on other fixed assets.
v) Valuation of Fixed Assets:
The Fixed Assets of the Company are recorded at their historical cost
of acquisition except otherwise stated (some of the assets are recorded
at revalued amounts) including installation & commissioning expenses as
reduced by accumulated depreciation to date. Fixed assets identified
under asset rationalization programe are revalued from time to time and
the deficit if any on account of the revaluation is recognised in the
profit & loss statement of the relevant year.
vi) Investments
Investments are stated at cost. Dividend income is accounted for in the
year in which it is received.
vii) Treatment of Contingent Liabilities:
Liabilities of a contingent nature are accounted for only on actual
occurrence/final settlement of the liabilities.
viii) Retirement Benefits to Employees:
The company''s contributions to schemes such as Provident Fund &
Family Pension Fund are charged to Profit & Loss Account as and when
accrued. The company also provides for retirement benefits in the form
of gratuity to all employees, and the liability based on actuarial
valuation is charged to the Profit & Loss Account.
ix) Expenditure on New projects and Substantial Expansion:
Expenditure directly relating to construction activity is capitalized.
Indirect expenditure incurred during construction Period is capitalized
as part of construction cost to the extent to which the expenditure is
indirectly related to construction or is incidental thereto. Income
earned, if any, during construction period is deducted from the total
of the indirect expenditure. During the year no expenditure on new
project / substantial expansion has been incurred.
x) Revenue Recognition:
Revenue in respect of insurance/other claims and rate differences etc.
is recognized only when it is reasonably certain that the ultimate
collection will be made.
xi) Leases
In respect of operating lease, rentals and all other expenses are
treated as revenue expenditure with reference to the term(s) of the
lease(s)
Mar 31, 2013
I) Method of Depreciation, Depletion & Amortization:
a) Depreciation of Fixed Tangible Assets has been computed on straight
line basis on cost/enhanced cost in accordance with Schedule-XIV read
with Section 205(2)(b) of the Companies Act, 1956 except in cases
"where the assets have been identified/retired from active use and
where the assets are reduced to the estimated realizable value in the
year of its retirement". However depreciation on plastic bins has been
provided at 25%, keeping in view, the life of expectancy of the bins.
The incremental depreciation on enhanced cost on account of revaluation
is adjusted against revaluation reserve.
b) Cost of Leasehold Land is not being amortized over the period of
lease and shall be amortised on termination/ renewal of lease
agreements.
c) Intangible Assets-Amortisation of intangible assets is provided on
straight-line method to allocate depreciable amount of an asset over
its usual life.
ii) Conversion of Foreign Currency items:
Transactions in foreign currencies are translated at the exchange rate
prevailing on the date of the transactions and in case of purchase of
materials and sales of goods, the exchange gains/losses on settlement
during the year, are adjusted to respective accounts. In cases where
the amount is not received/paid up to the Balance Sheet date, the
conversion of foreign currency items have been accounted for at the
rates prevailing as at the year end and material variance has been
recognized in the Accounts.
iii) Valuation of Inventories:
Raw Materials, Components, Stores and Packing Materials are valued at
Cost including taxes. Semi-finished goods valued at Estimated Cost
including taxes. Finished goods are valued at cost inclusive of excise
duty for which provision has been made. Custom duty on material lying
in bonded warehouse is included in cost when it is actually paid/
incurred at the time of removal from the warehouse and this treatment
has no impact on the profits of the Company.
iv) Research & Development:
The revenue expenditure on research & development is expensed out under
the relevant head of accounts in the year in which it is incurred.
However, expenditure which results in creation of capital tangible
assets is treated in the same way as expenditure on other fixed assets.
v ) Valuation of Fixed Assets:
The Fixed Assets of the Company are recorded at their historical cost
of acquisition except otherwise stated (some of the assets are recorded
at revalued amounts) including installation & commissioning expenses as
reduced by accumulated depreciation to date. Fixed assets identified
under asset rationalization programe are revalued from time to time and
the deficit if any on account of the revaluation is recognised in the
profit & loss statement of the relevant year.
vi) Investments
Investments are stated at cost. Dividend income is accounted for in the
year in which it is received.
vii) Treatment of Contingent Liabilities:
Liabilities of a contingent nature are accounted for only on actual
occurrence/ final settlement of the liabilities.
viii)Retirement Benefits to Employees:
The company''s contributions to schemes such as Provident Fund & Family
Pension Fund are charged to Profit & Loss Account as and when accrued.
The company also provides for retirement benefits in the form of
gratuity to all employees, and the liability based on actuarial
valuation is charged to the Profit & Loss Account.
ix) Expenditure on New projects and Substantial Expansion: Expenditure
directly relating to construction activity is capitalized. Indirect
expenditure incurred during construction Period is capitalized as part
of construction cost to the extent to which the expenditure is
indirectly related to construction or is incidental thereto. Income
earned, if any, during construction period is deducted from the total
of the indirect expenditure. During the year no expenditure on new
project / substantial expansion has been incurred.
x ) Revenue Recognition:
Revenue in respect of insurance/other claims and rate differences etc.
is recognized only when it is reasonably certain that the ultimate
collection will be made.
xi) Leases
In respect of operating lease, rentals and all other expenses are
treated as revenue expenditure with reference to the term(s) of the
lease(s)
Mar 31, 2012
I) Method of Depreciation, Depletion & Amortization:
a) Depreciation of Fixed Tangible Assets has been computed on straight
line basis on cost/enhanced cost in accordance with Schedule-XIV read
with Section 205(2)(b) of the Companies Act, 1956 except in cases
"where the assets have been identi- fied/retired from active use and
where the assets are reduced to the estimated realizable value in the
year of its retirement". However depreciation on plastic bins has
been provided at 25%, keeping in view, the life of expectancy of the
bins. The incremental depreciation on enhanced cost on account of
revaluation is adjusted against revaluation reserve.
b) Cost of Leasehold Land is not being amortized over the period of
lease and shall be amortised on termination/renewal of lease
agreements.
c) Intangible Assets-Amortisation of intangible assets is provided on
straight-line method to allocate depreciable amount of an asset over
its usual life.
ii) Conversion of Foreign Currency items:
Transactions in foreign currencies are translated at the exchange rate
prevailing on the date of the transactions and in case of purchase of
materials and sales of goods, the exchange gains/losses on settlement
during the year, are adjusted to respective accounts. In cases where
the amount is not received/paid up to the Balance Sheet date, the
conversion of foreign currency items have been accounted for at the
rates prevailing as at the year end and material variance has been
recognized in the Accounts.
iii) Valuation of Inventories:
Raw Materials, Components, Stores and Packing Materials are valued at
Cost including taxes. Semi-finished goods valued at Estimated Cost
including taxes. Finished goods are valued at cost inclusive of excise
duty for which provision has been made. Custom duty on material lying
in bonded warehouse is included in cost when it is actually paid/
incurred at the time of removal from the warehouse and this treatment
has no impact on the profits of the Company.
iv) Research & Development:
The revenue expenditure on research & development is expensed out under
the relevant head of accounts in the year in which it is incurred.
However, expenditure which results in creation of capital tangible
assets is treated in the same way as expenditure on other fixed assets.
v) Valuation of Fixed Assets:
The Fixed Assets of the Company are recorded at their historical cost
of acquisition except otherwise stated (some of the assets are recorded
at revalued amounts) including installation & commissioning expenses as
reduced by accumulated depreciation to date. Fixed assets identified
under asset rationalization programe are revalued from time to time and
the deficit if any on account of the revaluation is recognised in the
profit & loss statement of the relevant year.
vi) Investments
Investments are stated at cost. Dividend income is accounted for in the
year in which it is received.
vii) Treatment of Contingent Liabilities:
Liabilities of a contingent nature are accounted for only on actual
occurrence/final settlement of the liabilities.
viii) Retirement Benefits to Employees:
The company's contributions to schemes such as Provident Fund &
Family Pension Fund are charged to Profit & Loss Account as and when
accrued. The company also provides for retirement benefits in the form
of gratuity to all employees, and the liability based on actuarial
valuation is charged to the Profit & Loss Account. Also provision
required for leave encashment amounting to Rs. 56.18 Lacs as per
actuarial valuation has been duly provided in the current financial
year.
ix) Expenditure on New projects and Substantial Expansion:
Expenditure directly relating to construction activity is capitalized.
Indirect expenditure incurred during construction Period is capitalized
as part of construction cost to the extent to which the expenditure is
indirectly related to construction or is incidental thereto. Income
earned, if any, during construction period is deducted from the total
of the indirect expenditure. During the year no expenditure on new
project / substantial expansion has been incurred.
x) Revenue Recognition:
Revenue in respect of insurance/other claims and rate differences etc.
is recognized only when it is reasonably certain that the ultimate
collection will be made.
xi) Leases
In respect of operating lease, rentals and all other expenses are
treated as revenue expenditure with reference to the term(s) of the
lease(s)
xii) Taxation:
Tax liability of the company is estimated considering the provisions of
the Income Tax Act, 1961. Deferred tax is recognised subject to the
consideration of prudence, on timing difference, being the difference
between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Mar 31, 2010
I) Method of Depreciation, Depletion & Amortization:
a) Depreciation of Fixed Tangible Assets has been computed on straight
line basis on cost/enhanced cost in accordance with Schedule-XIV read
with Section 205(2)(b) of the Companies Act, 1956 except in cases
"where the assets have been identified/ retired from active use and
where the assets are reduced to the estimated realizable value in the
year of its retirement". However depreciation on plastic bins has been
provided at 25%, keeping in view, the life of expectancy of the bins.
The incremental depreciation on enhanced cost on account of revaluation
is adjusted against revaluation reserve.
b) Cost of Leasehold Land is not being amortized over the period of
lease and shall be amortised on termination/ renewal of lease
agreements.
c) Intangible Assets-Amortisation of intangible assets is provided on
straight-line method to allocate depreciable amount of an asset over
its usual life.
ii) Conversion of Foreign Currency items:
Transactions in foreign currencies are translated at the exchange rate
prevailing on the date of the transactions and in case of purchase of
materials and sales of goods, the exchange gains/losses on settlement
during the year, are adjusted to respective accounts. In cases where
the amount is not received/paid up to the Balance Sheet date, the
conversion of foreign currency items have been accounted for at the
rates prevailing as at the year end and material variance has been
recognized in the Accounts.
iii) Valuation of Inventories:
Raw Materials, Components, Stores and Packing Materials are valued at
Cost including taxes. Semi-finished goods valued at Estimated Cost
including taxes. Finished goods are valued at cost inclusive of excise
duty for which provision has been made. Custom duty on material lying
in bonded warehouse is included in cost when it is actually paid/
incurred at the time of removal from the warehouse and this treatment
has no impact on the profits of the Company.
iv) Research & Development:
The revenue expenditure on research & development is expensed out under
the relevant head of accounts in the year in which it is incurred.
However, expenditure which results in creation of capital tangible
assets is treated in the same way as expenditure on other fixed assets.
v) Valuation of Fixed Assets:
The Fixed Assets of the Company are recorded at their historical cost
of acquisition except otherwise stated (some of the assets are recorded
at revalued amounts) including installation & commissioning expenses as
reduced by accumulated depreciation to date. Fixed assets identified
under asset rationalization programme are revalued from time to time
and the deficit if any on account of the revaluation is recognised in
the profit & loss statement of the relevant year.
vi) Investments:
Investments are stated at cost. Dividend income is accounted for in the
year in which it is received.
vii) Treatment of Contingent Liabilities:
Liabilities of a contingent nature are accounted for only on actual
occurrence/final settlement of the liabilities.
viii) Retirement Benefits to Employees:
The companys contributions to schemes such as Provident Fund & Family
Pension Fund are charged to Profit & Loss Account as and when accrued.
The company also provides for retirement/post retirement benefits in
the form of Gratuity to all employees under scheme with the LIC
wherein, liability towards the premium of the policy, based on
actuarial valuation is charged to the Profit & Loss Account. However
during the year and of earlier financial year 2008-09 liability for
gratuity could not be ascertained as the company has not taken
actuarial valuation for the same. Also provision for leave encashment
amounting to Rs.63.07 Lacs (Rs.58.58 Lacs) is not made since the
liability is of a fluctuating nature from year to year and is accounted
for only at the time of retirement of the employees. (Read along with
note No. 2(ii))
ix) Expenditure on New projects and Substantial Expansion:
Expenditure directly relating to construction activity is capitalized.
Indirect expenditure incurred during construction Period is capitalized
as part of construction cost to the extent to which the expenditure is
indirectly related to construction or is incidental thereto. Income
earned, if any, during construction period is deducted from the total
of the indirect expenditure.
x) Revenue Recognition:
Revenue in respect of insurance/other claims and rate differences etc.
is recognized only when it is reasonably certain that the ultimate
collection will be made.
xi) Leases:
In respect of operating lease, rentals and all other expenses are
treated as revenue expenditure with reference to the term(s) of the
lease(s)
xii) Taxation:
Tax liability of the company is estimated considering the provisions of
the Income Tax Act, 1961. Deferred tax is recognised subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
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