Mar 31, 2018
Amounts recognised in profit or loss
Write-downs of inventories to net realisable value amounted to Rs. 35.94 lakhs (31 March 2017 - Rs. nil). These were recognised as an expense during the year and included in âchanges in value of inventories of work-in-progress and finished goodsâ in statement of profit and loss.
Assets and liabilities classified as held for sale
During the year, management decided to discontinue âFine Blanking Componentsâ and âElectricalsâ divisions due to lack of viable orders, profitability and capital investment requirements for new technology. Consequently, certain assets and liabilities were classified as a disposal group.
The Company has sold certain Property plant and equipment which were part of the discontinued manufacturing operations. Further, the Company has identified certain Property, plant and equipment which were part of the discontinued manufacturing operations whose carrying amounts will be recovered principally through a sale transaction rather than through continuing use. The proposal has been approved by the Board of Directors and shareholders of the Company. The Company is in the process of closing the sale transaction and expects to realize the sale proceeds within next 12 months. Accordingly, the said Property plant and equipment have been classified as âNon-current asset held for saleâ.
Segment information
Plant and equipment is disclosed as part of the âElectricalâ segment which has now been discontinued. Freehold land and buildings are disclosed as part of the âFacility Management Servicesâ segment under Segment reporting disclosures.
Non-recurring fair value measurements
Asset classified as held for sale during the reporting period was measured at the lower of its carrying amount and fair value less costs to sell at the time of re-classification.
v Rights, preferences and restrictions attached to equity shares
The Company has one class of equity shares with paid up value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share on all resolutions submitted to shareholders. They have right to participate in the profits of the Company, if declared by the board as interim dividend and recommended by the board and declared by the members as final dividend. They are also entitled to bonus/right issue, as declared by Company from time to time. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, beside other rights available under the Companies Act.
The distribution will be in proportion to the number of equity shares held by the shareholders.
viii Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, by way of bonus shares and shares bought back for the period of 5 years immediately preceding the balance sheet date
The Company has not issued any shares pursuant to contract(s) without payment being received in cash.
No bonus shares have been issued in preceding 5 years.
1500 equity shares of Rs. 10 per share were forfeited by Company against unpaid call money of Rs. 5 per equity share
Mar 31, 2016
A. ACCOUNTING CONVENTIONS
The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the normal time between the acquisition of the assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of its assets and liabilities as current and non-current.
B. FIXED ASSETS INCLUDING INTANGIBLE ASSETS AND DEPRECIATION/AMORTIZATION
a) Fixed assets including intangible assets are stated at cost net of cenvat, less accumulated depreciation and/ or impairment loss, if any. Intangible assets comprise purchased software/licenses. All costs till the commencement of commercial production attributable to the fixed assets and intangible assets are capitalized.
b) Depreciation on fixed assets has been provided on straight-line method at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013.
c) Depreciation on intangible assets has been provided as per Accounting Standard 26 ''Intangible Assets''.
d) The cost of Leasehold land is amortized over the period of lease.
e) In respect of assets added / disposed off during the year, depreciation is charged on a pro-rata basis with reference to the month of addition/disposal.
f) Intangible assets are recognized if it is probable that the future economic benefits that are attributable to the asset will flow to the Company and the cost of the asset can be measured reliably. These assets are valued at cost which comprises its purchase price and any directly attributable expenditure.
C. INVESTMENTS
Investments are classified into current and long term investments. Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments (excluding current maturities of long term investments) are stated at the lower of cost and fair value. Long term investments are carried at cost. Provision for diminution in value of long term investments is made only if such decline is not temporary.
D. INVENTORIES
a) Finished goods are valued at lower of cost or net realizable value. Cost is considered at material cost on movement moving weighted average basis plus appropriate overheads.
b) Work in progress is valued at material cost on movement moving weighted average basis plus appropriate overheads.
c) Scrap is valued at net realizable value.
d) Goods in transit are valued at cost.
e) Other inventories are valued at cost on moment moving weighted average basis.
f) The liability of excise duty on finished goods and scrap lying in the factory at year end is estimated on the basis of sales price of goods and excise rates prevailing on the said date, while determining the cost of closing stock of finished goods and scrap.
E. EMPLOYEE BENEFITS
Superannuation, Provident and Gratuity Funds are accounted for on accrual basis with corresponding payments to recognized scheme/fund. Short term employees'' benefits are recognized as an expense at the undiscounted amount in the Statement of profit and loss for the year in which the related services rendered. The liability for gratuity (in the nature of a defined benefit obligation) is provided on the basis of actuarial valuation (PUC method) conducted by Life Insurance Company of India (LIC), since the gratuity scheme of the company is covered under a group gratuity cum life assurance cash accumulation policy of the LIC. Actuarial gains or loss arising from such valuation are charged to revenue in the year in which they arise.
F. REVENUE RECOGNITION
Revenue from sale of products/job-work is recognized on dispatch of goods from factory premises and is recognized on accrual basis except for export sales, which are booked on the basis of date of custom clearance.
Gross sales as reflected in the financial statements are inclusive of excise duty and net of rebate / trade discounts and returns.
Interest income is recognized on an accrual basis on time proportion method, taking into account the amount outstanding and the rate applicable.
Dividend income is recognized when the right to receive payment is established by the balance sheet date. Exports benefits are recognized on an accrual basis at the anticipated realizable value, based on past experience.
G. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged against the profit of the year in which it is incurred. Capital expenditure on research and development is shown as an addition to fixed assets and depreciation is provided on the same basis as for other fixed assets.
H. FOREIGN EXCHANGE TRANSACTIONS
The Company accounts for effects of difference in foreign exchange rates in accordance with Accounting Standard 11 notified by the Companies (Accounting Standards) Rules, 2006.
a) Transactions in foreign currencies are accounted for at the exchange rate prevailing at the date of transaction/ negotiations.
b) Monetary foreign currencies items outstanding at the year end are reinstated into rupees at the rate of exchange prevailing on the Balance Sheet date.
c) Non monetary foreign currency items are carried at cost.
d) Any income or expenses on account of exchange rate difference either on settlement or on transaction is recognized in the statement of profit and loss.
e) In respect of forward contracts, forward premium or discount arising at the inception of forward contract is amortized over the life of contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which exchange rates change. Any profit and loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.
I. TAXATION
The provision for current income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversed in one or more subsequent periods.
Minimum Alternative Tax ("MAT") paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax in future. MAT Credit entitlement can be carried forward and utilized for a specific period as prescribed under the law from the year in which the same is availed. Accordingly, it is recognized as an asset in the Balance Sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.
J. GOVERNMENT GRANTS
Government grants are deducted from the value of the concerned asset if the grant is specifically received for the purchase, construction or acquisition of the asset. However, if it is received as a contribution towards the total investment or by way of contribution to its capital outlay and no repayment is ordinarily required to be made; such grants are treated as capital reserves.
K. ACCOUNTING FOR ESTIMATES
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Examples of such estimates include estimation of future obligations under employee retirement benefit plans, estimated useful life of fixed assets, classification of assets / liabilities etc. Actual results could differ from these estimates. Any revision to accounting estimates is recognized in accordance with the requirements of the respective accounting standards.
L. IMPAIRMENT
The carrying amounts of assets are reviewed at each balance sheet date in accordance with Accounting Standard 28, ''Impairment of Assets'', to determine whether there is any indication of impairment. An impairment loss is charged to the statement of profit & loss in the year in which an assets is identified as impaired.
M. ACCOUNTING FOR LEASES
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Operating lease charges are expensed on a straight line basis with reference to lease terms and other considerations.
N. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets to the extent that they relate to the period till such assets are ready to be put to use. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss.
O. SEGMENT REPORTING
a) The Company has disclosed business segment as the primary segment for disclosure. The Company has identified three separate segments i.e. Fine Blanking Components, Electricals and others. The Segments are identified with regard to the dominant source, nature of risks and returns, internal organization and management structure and internal reporting systems.
b) The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
c) Segment revenues, Results and Capital employed figures include the respective amounts identifiable to each of the segments. Interest and other financial charges/ incomes are reported at corporate level. Also those assets and liabilities which are not identifiable to the individual segments are reported at corporate level.
d) The inter segmental revenue is accounted for on the basis of transfer price agreed to amongst segments as per market trend.
P. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when the company 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
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.
A contingent asset is neither recognized nor disclosed in the financial statements.
Q. CASH FLOW STATEMENT
The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard-3 on Cash Flow Statements and presents cash flows by operating, investing and financing activities of the Company. The Company considers all highly liquid financial instruments, which are readily convertible into cash, to be cash equivalents.
R. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2014
A. ACCOUNTING CONVENTIONS
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting in accordance with the
Generally Accepted Accounting Principles (GAAP) in India and comply
with the accounting standards as notified under the Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
presentational requirements of the Companies Act, 1956.
B. BASIS OF PREPARATION
The financial statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting, unless
stated otherwise and comply with the mandatory Accounting Standards
(''AS'') prescribed under the Companies Act, 1956 read with the General
Circular 08/2014 dated April 04, 2014 issued by the Ministry of
Corporate Affairs, and other accounting principles generally accepted
in India. The accounting policies adopted in the preparation of
financial statements are consistent with those of the previous year.
C. FIXED ASSETS INCLUDING INTANGIBLE ASSETS AND
DEPRECIATION/AMORTIZATION
a) Fixed assets including intangible assets are stated at cost net of
cenvat, less accumulated depreciation and/ or impairment loss, if any.
Intangible assets comprise purchased softwares/licenses. All costs till
commencement of commercial production attributable to the fixed assets
and intangible assets are capitalized.
b) Depreciation on fixed assets including intangible assets has been
provided on straight-line method at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
c) The cost of Leasehold land is amortized over the period of lease.
d) In respect of assets added / disposed off during the year,
depreciation is charged on a pro-rata basis with reference to the month
of addition/disposal.
e) Assets costing up to Rs. 5,000 are fully depreciated in the year of
purchase.
f) Intangible assets are recognised if it is probable that the future
economic benefits that are attributable to the asset will flow to the
Company and the cost of the asset can be measured reliably. These
assets are valued at cost which comprises its purchase price and any
directly attributable expenditure.
D. INVESTMENTS
Investments are classified into current and long term investments.
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Current
investments (excluding current maturities of long term investments) are
stated at the lower of cost and fair value. Long term investments are
carried at cost. Provision for diminution in value of long term
investments is made only if such decline is not temporary.
E. INVENTORIES
a) Finished goods are valued at lower of cost or net realizable value.
Cost is considered at material cost on movement moving weighted average
basis plus appropriate overheads.
b) Work in progress is valued at material cost on movement moving
weighted average basis plus appropriate overheads.
c) Scrap is valued at net realizable value.
d) Goods in transit are valued at cost.
e) Other inventories are valued at cost on moment moving weighted
average basis.
f) The liability of excise duty on finished goods and scrap lying in
the factory at year end is estimated on the basis of sales price of
goods and excise rates prevailing on the said date, while determining
the cost of closing stock of finished goods and scrap.
F. EMPLOYEE BENEFITS
Superannuation, Provident and Gratuity Funds are accounted for on
accrual basis with corresponding payments to recognized scheme/fund.
Short term employees'' benefits are recognized as an expense at the
undiscounted amount in the Statement of profit and loss for the year in
which the related services rendered. The liability for gratuity (in
the nature of a defined benefit obligation) is provided on the basis of
actuarial valuation (PUC method) conducted by Life Insurance Company of
India (LIC), since the gratuity scheme of the company is covered under
a group gratuity cum life assurance cash accumulation policy of the
LIC. Actuarial gains or loss arising from such valuation are charged
to revenue in the year in which they arise.
G REVENUE RECOGNITION
Revenue from sale of products/job-work is recognized on dispatch of
goods from factory premises and is recognized on accrual basis except
for export sales, which are booked on the basis of date of custom
clearance.
Gross sales as reflected in the financial statements are inclusive of
excise duty and net of rebate / trade discounts and returns.
Interest income is recognized on an accrual basis on time proportion
method, taking into account the amount outstanding and the rate
applicable.
Dividend income is recognized when the right to receive payment is
established by the balance sheet date. Exports benefits are recognized
on an accrual basis at the anticipated realizable value, based on past
experience.
H. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to fixed assets and
depreciation is provided on the same basis as for other fixed assets.
I. FOREIGN EXCHANGE TRANSACTIONS
The Company accounts for effects of difference in foreign exchange
rates in accordance with Accounting Standard 11 notified by the
Companies (Accounting Standards) Rules, 2006.
a) Transactions in foreign currencies are accounted for at the exchange
rate prevailing at the date of transaction/ negotiations.
b) Monetary foreign currencies items outstanding at the year end are
restated into rupees at the rate of exchange prevailing on the Balance
Sheet date.
c) Non monetary foreign currency items are carried at cost.
d) Any income or expenses on account of exchange rate difference either
on settlement or on transaction is recognized in the statement of
profit and loss.
e) In respect of forward contracts, forward premium or discount arising
at the inception of forward contract is amortized over the life of
contract. Exchange differences on such contracts are recognized in the
statement of profit and loss in the year in which exchange rates
change. Any profit and loss arising on cancellation or renewal of
forward exchange contract is recognized as income or as expense for the
year.
J. TAXATION
The provision for current income tax liability is ascertained on the
basis of assessable profits computed in accordance with the provisions
of Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of being reversed in one or more subsequent
periods. Minimum Alternative Tax ("MAT") paid in accordance with the
tax laws, which gives rise to future economic benefits in the form of
adjustment of future income tax liability, is considered as an asset if
there is convincing evidence that the Company will pay normal tax in
future. MAT Credit entitlement can be carried forward and utilized for
a specific period as prescribed under the law from the year in which
the same is availed. Accordingly, it is recognized as an asset in the
Balance Sheet when it is probable that the future economic benefit
associated with it will flow to the Company and the asset can be
measured reliably.
K. GOVERNMENT GRANTS
Government grants are deducted from the value of the concerned asset if
the grant is specifically received for the purchase, construction or
acquisition of the asset. However, if it is received as a contribution
towards the total investment or by way of contribution to its capital
outlay and no repayment is ordinarily required to be made; such grants
are treated as capital reserves.
L. ACCOUNTING FOR ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent liabilities at the date of
the financial statements and the reported amounts of revenue and
expenses during the reporting period. Examples of such estimates
include estimation of future obligations under employee retirement
benefit plans, estimated useful life of fixed assets, classification of
assets / liabilities etc. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized in
accordance with the requirements of the respective accounting
standards.
M. IMPAIRMENT
The carrying amounts of assets are reviewed at each balance sheet date
in accordance with Accounting Standard 28, ''Impairment of Assets'', to
determine whether there is any indication of impairment. An impairment
loss is charged to the statement of profit & loss in the year in which
an assets is identified as impaired.
N. ACCOUNTING FOR LEASES
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased asset are classified as
operating leases. Operating lease charges are expensed on a straight
line basis with reference to lease terms and other considerations.
O. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets to the extent that they relate to the period till such
assets are ready to be put to use. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Statement of
Profit and Loss.
P. SEGMENT REPORTING
a) The Company has disclosed business segment as the primary segment
for disclosure. The Company has identified four separate segments i.e.
Fine Blanking Components, Mufflers, Spokes and Electricals. The
Segments are identified with regard to the dominant source, nature of
risks and returns, internal organization and management structure and
internal reporting systems.
b) The accounting policies adopted for segment reporting are in line
with the accounting policies of the Company.
c) Segment revenues, Results and Capital employed figures include the
respective amounts identifiable to each of the segments. Interest and
other financial charges/ incomes are reported at corporate level. Also
those assets and liabilities which are not identifiable to the
individual segments are reported at corporate level.
d) The inter segmental revenue is accounted for on the basis of
transfer price agreed to amongst segments as per market trend.
Q. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when the company 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 reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
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.
A contingent asset is neither recognized nor disclosed in the financial
statements.
R. CASH FLOW STATEMENT
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard-3 on Cash Flow Statements and presents cash flows
by operating, investing and financing activities of the Company. The
Company considers all highly liquid financial instruments, which are
readily convertible into cash, to be cash equivalents.
S. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the
period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares that
have changed the number of equity shares outstanding without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit for the period attributable
to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2012
A. ACCOUNTING CONVENTIONS
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting in accordance with the
Generally Accepted Accounting Principles (GAAP) in India and comply
with the accounting standards as notified under the Companies
(Accounting Standards) Rules, 2006 and the relevant presentational
requirements of the Companies Act, 1956.
B. BASIS OF PREPARATION
The financial statements have been prepared to comply in all material
aspects with applicable accounting principles in India, the applicable
Accounting Standards notified under Section 211(3C) of the Companies
Act, 1956 and the relevant provisions thereof.
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 Revised Schedule VI to the Companies Act, 1956.
C. FIXED ASSETS INCLUDING INTANGIBLE ASSETS AND DEPRECIATION /
AMORTISATION
a) Fixed assets including intangible assets are stated at cost net of
cenvat, less accumulated depreciation and / or impairment loss, if any.
All costs till commencement of commercial production attributable to
the fixed assets and intangible assets are capitalized.
b) Depreciation on fixed assets including intangible assets has been
provided on straight-line method at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
c) The cost of Leasehold land is amortized over the period of lease.
d) In respect of assets added / disposed off during the year,
depreciation is charged on a pro-rata basis with reference to the month
of addition/disposal.
e) Assets costing up to Rs. 5,000 are fully depreciated in the year of
purchase.
f) Intangible assets are recognised if it is probable that the future
economic benefits that are attributable to the asset will flow to the
Company and the cost of the asset can be measured reliably. These
assets are valued at cost which comprises its purchase price and any
directly attributable expenditure.
D. INVESTMENTS
Investments are classified into current and long term investments.
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Current
investments (excluding current maturities of long term investments) are
stated at the lower of cost and fair value. Long term investments are
carried at cost. Provision for diminution in value of long term
investments is made only if such decline is not temporary.
E. INVENTORIES
a) Finished goods are valued at lower of cost or net realizable value.
Cost is considered at material cost on moment moving weighted average
basis plus appropriate overheads.
b) Work in progress is valued at material cost on moment moving
weighted average basis plus appropriate overheads.
c) Scrap is valued at net realizable value.
d) Other inventories are valued at cost on moment moving weighted
average basis.
e) The liability of excise duty on finished goods and scrap lying in
the factory at year end is estimated on the basis of sales price of
goods and excise rates prevailing on the said date, while determining
the cost of closing stock of finished goods and scrap.
F. EMPLOYEE BENEFITS
Superannuation, Provident and Gratuity Funds are accounted for on
accrual basis with corresponding payments to recognized scheme/fund.
Short term employees' benefits are recognized as an expense at the
undiscounted amount in the Statement of profit and loss for the year in
which the related services rendered. The liability for gratuity (in the
nature of a defined benefit obligation) is provided on the basis of
actuarial valuation (PUC method) conducted by Life Insurance Company of
India (LIC), since the gratuity scheme of the company is covered under
a group gratuity cum life assurance cash accumulation policy of the
LIC.
G. REVENUE RECOGNITION
Revenue from sale of products/job-work is recognized on dispatch of
goods from factory premises and is recognized on accrual basis except
for export sales, which are booked on the basis of date of custom
clearance. Gross sales as reflected in the financial statements are
inclusive of excise duty and net of rebate / trade discounts and
returns.
Interest income is recognized on an accrual basis on time proportion
method, taking into account the amount outstanding and the rate
applicable.
Dividend income is recognized when the right to receive payment is
established by the balance sheet date. Exports benefits are recognized
on an accrual basis at the anticipated realizable value, based on past
experience.
H. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged against the
profit of the year in which it is incurred. Capital expenditure on
research and development is shown as an addition to fixed assets and
depreciation is provided on the same basis as for other fixed assets.
I. FOREIGN EXCHANGE TRANSACTIONS
The Company accounts for effects of difference in foreign exchange
rates in accordance with Accounting Standard 11 notified by the
Companies (Accounting Standards) Rules, 2006.
a) Transactions in foreign currencies are accounted for at the exchange
rate prevailing at the date of transaction/ negotiations.
b) Monetary foreign currencies items outstanding at the year end are
restated into rupees at the rate of exchange prevailing on the Balance
Sheet date.
c) Non monetary foreign currency items are carried at cost.
d) Any income or expenses on account of exchange rate difference either
on settlement or on transaction is recognized in the statement of
profit and loss.
e) In respect of forward contracts, forward premium or discount arising
at the inception of forward contract is amortized over the life of
contract. Exchange differences on such contracts are recognized in the
statement of profit and loss in the year in which exchange rates
change. Any profit and loss arising on cancellation or renewal of
forward exchange contract is recognized as income or as expense for the
year.
J. TAXATION
The provision for current income tax liability is ascertained on the
basis of assessable profits computed in accordance with the provisions
of Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of being reversed in one or more subsequent
periods.
Minimum Alternative Tax ("MAT") paid in accordance with the tax laws,
which gives rise to future economic benefits in the form of adjustment
of future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal tax in future. MAT
Credit entitlement can be carried forward and utilized for a specific
period as prescribed under the law from the year in which the same is
availed. Accordingly, it is recognized as an asset in the Balance Sheet
when it is probable that the future economic benefit associated with it
will flow to the Company and the asset can be measured reliably.
K. GOVERNMENT GRANTS
Government grants are deducted from the value of the concerned asset if
the grant is specifically received for the purchase, construction or
acquisition of the asset. However, if it is received as a contribution
towards the total investment or by way of contribution to its capital
outlay and no repayment is ordinarily required to be made; such grants
are treated as capital reserves.
L. ACCOUNTING FOR ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent liabilities at the date of
the financial statements and the reported amounts of revenue and
expenses during the reporting period. Examples of such estimates
include estimation of future obligations under employee retirement
benefit plans, estimated useful life of fixed assets, classification of
assets / liabilities etc. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized in
accordance with the requirements of the respective accounting
standards.
M. IMPAIRMENT
The carrying amounts of assets are reviewed at each balance sheet date
in accordance with Accounting Standard 28, 'Impairment of Assets',
to determine whether there is any indication of impairment. An
impairment loss is recognized when the carrying amount of fixed assets
exceeds its recoverable amount. The recoverable amount of an asset is
lower of net selling price and its value in use.
N. ACCOUNTING FOR LEASES
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased asset are classified as
operating leases. Operating lease charges are recognised as an expense
in the Statement of Profit and Loss on a straight line basis.
O. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets to the extent that they relate to the period till such
assets are ready to be put to use. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Statement of
Profit and Loss.
P. SEGMENT REPORTING
a) The Company has disclosed business segment as the primary segment
for disclosure. The Company has identified four separate segments i.e.
Fine Blanking Components, Mufflers, Spokes and Electricals. The
Segments are identified with regard to the dominant source, nature of
risks and returns, internal organization and management structure and
internal reporting systems.
b) The accounting policies adopted for segment reporting are in line
with the accounting policies of the Company.
c) Segment revenues, Results and Capital employed figures include the
respective amounts identifiable to each of the segments. Interest and
other financial charges/ incomes are reported at corporate level. Also
those assets and liabilities which are not identifiable to the
individual segments are reported at corporate level.
d) The inter segmental revenue is accounted for on the basis of
transfer price agreed to amongst segments as per market trend.
Q. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when the company 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 reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
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.
A contingent asset is neither recognised nor disclosed in the financial
statements.
R. CASH FLOW STATEMENT
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard-3 on Cash Flow Statements and presents cash flows
by operating, investing and financing activities of the Company. The
Company considers all highly liquid financial instruments, which are
readily convertible into cash, to be cash equivalents.
S. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the
period and for allperiods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares that
have changed the number of equity shares outstanding without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit for the period attributable
to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2011
I) ACCOUNTING CONVENTIONS
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the Accounting
Standards issued under the Companies (Accounting Standards) Rules, 2006
and the relevant presentational requirements of the Companies Act,
1956.
II) ACCOUNTING FOR ESTIMATES
The preparation of financial statements is in conformity with the
generally accepted accounting principles and requires estimates and
assumptions to be made that affect reportable amount of assets and
liabilities on date of financial statements and the reported amount of
revenues and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the year in which
the results are known/ materialized.
III) FIXED ASSETS INCLUDING INTANGIBLE ASSETS AND
DEPRECIATION/AMORTISATION
a) Fixed assets including intangible assets are stated at cost net of
cenvat, less accumulated depreciation and / or impairment loss, if any.
Intangible assets comprise purchased computer software/licenses. All
costs till commencement of commercial production attributable to the
fixed assets and intangible assets are capitalized.
b) Depreciation on fixed assets including intangible assets has been
provided on straight-line method at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
c) The cost of Leasehold land is amortized over the period of lease.
IV) INVESTMENTS
Long term investments are stated at cost. Provision for diminution in
value of long term investments is made only if such decline is not
temporary in the opinion of the management.
V) INVENTORIES
a) Finished goods are valued at lower of cost or net realizable value.
Cost is considered at material cost on moment moving weighted average
basis plus appropriate overheads.
b) Work in progress is valued at material cost on moment moving
weighted average basis plus appropriate overheads.
c) Scrap is valued at net realizable value.
d) Other inventories are valued at cost on moment moving weighted
average basis.
e) The liability of excise duty on finished goods and scrap lying in
the factory at year end is estimated on the basis of sales price of
goods and excise rates prevailing on the said date, while determining
the cost of closing stock of finished goods and scrap.
VI) RETIREMENT BENEFITS
Superannuation, Provident and Gratuity Funds are accounted for on
accrual basis with corresponding payments to recognized scheme/fund.
Short term employees benefits are recognized as an expense at the
undiscounted amount in the profit and loss account for the year in
which the related services rendered. The liability for gratuity (in the
nature of a defined benefit obligation) is provided on the basis of
actuarial valuation conducted by Life Insurance Company of India (LIC),
since the gratuity scheme of the company is covered under a group
gratuity cum life assurance cash accumulation policy of the LIC.
VII) REVENUE RECOGNITION
Sales and Job Charges are accounted for on the basis of date of
dispatch except for export sales which are booked on the basis of date
of custom clearance.
VIII) DIVIDEND
The dividend income is accounted for when the right to receive the
payment is established.
IX) GOVERNMENT GRANTS
Government grant of the nature of promoters' contribution is credited
to capital reserve at the time of receipt.
X) FOREIGN EXCHANGE TRANSACTIONS
a) Transactions in foreign currencies are accounted for at the exchange
rate prevailing at the date of transaction/ negotiations.
b) Monetary foreign currencies items outstanding at the year end are
restated into rupees at the rate of exchange prevailing on the Balance
Sheet date.
c) Non monetary foreign currency items are carried at cost.
d) Any income or expenses on account of exchange difference either on
settlement or on transaction is recognized in the profit and loss
account.
e) In respect of forward contracts, forward premium or discount arising
at the inception of forward contract is amortized over the life of
contract. Exchange differences on such contracts are recognized in the
profit and loss account in the year in which exchange rates change. Any
profit and loss arising on cancellation or renewal of forward exchange
contract is recognized as income or as expense for the year.
XI) BORROWING COSTS
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of cost of
such assets. Qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. Other borrowing costs
are charged to revenue.
XII) TAXATION
The provision for current income tax liability is ascertained on the
basis of assessable profits computed in accordance with the provisions
of Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of being reversed in one or more subsequent
periods.
XIII) CONTINGENCIES
Contingent liabilities arising from claims, litigation, assessments,
fines, penalties etc. are provided when it is probable that the
contingency will result in the loss and reasonable estimate of the
amount of the resulting loss can be made. Liabilities which are
material and whose future outcome can not be ascertained with
reasonable certainty are treated as contingent liabilities and
disclosed by way of notes to account.
XIV) ACCOUNTING FOR LEASES
Lease payments under operating lease have been charged to profit and
loss account as expense on straight line basis over the lease term.
XV) SEGMENT REPORTING
a) The Company has disclosed business segment as the primary segment
for disclosure. The Company has identified four separate segments i.e.
Fine Blanking Components, Mufflers, Spokes and Electricals. The
Segments are identified with regard to the dominant source, nature of
risks and returns, internal organization and management structure and
internal reporting systems.
b) The accounting policies adopted for segment reporting are in line
with the accounting policies of the Company.
c) Segment revenues, Results and Capital employed figures include the
respective amounts identifiable to each of the segments. Interest and
other financial charges/ incomes are reported at corporate level.
Alsothose assets and liabilities which are not identifiable to the
individual segments are reported at corporate level.
d) The inter segmental revenue is accounted for on the basis of
transfer price agreed to amongst segments as per market trend.
XVI) IMPAIRMENT LOSS
An impairment loss is recognized when the carrying amount of fixed
assets exceeds its recoverable amount. The recoverable amount of an
asset is lower of net selling price and its value in use.
XVII) CASH FLOW STATEMENT
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard-3 on Cash Flow Statements and presents cash flows
by operating, investing and financing activities of the Company. The
Company considers all highly liquid financial instruments, which are
readily convertible into cash, to be cash equivalents
Mar 31, 2010
I) ACCOUNTING CONVENTIONS
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the Accounting
Standards issued under the Companies (Accounting Standards) Rules, 2006
and the relevant presentational requirements of the Companies Act,
1956.
II) ACCOUNTING FOR ESTIMATES
The preparation of financial statements is in conformity with the
generally accepted accounting principles and requires estimates and
assumptions to be made that affect reportable amount of assets and
liabilities on date of financial statements and the reported amount of
revenues and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the year in which
the results are known/ materialised.
III) FIXED ASSETS AND DEPRECIATION
a) Fixed assets including intangible assets are stated at cost net of
cenvat, less accumulated depreciation and/or impairment loss, if any.
All costs till commencement of commercial production are capitalized.
b) Depreciation on fixed assets including intangible assets has been
provided on straight-line method at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956.
IV) INVESTMENTS
Long term investments are stated at cost. Provision for diminution in
value of long term investments is made only if such decline is not
temporary in the opinion of the management.
V) INVENTORIES
a) Finished goods are valued at lower of cost or net realizable value.
Cost is considered at material cost on monthly moving weighted average
basis plus appropriate overheads.
b) Work in progress is valued at material cost on monthly moving
weighted average basis plus appropriate overheads.
c) Scrap is valued at net realisable value.
d) Other inventories are valued at cost on monthly moving weighted
average basis.
e) The liability of excise duty on finished goods and scrap lying in
the factory at year end is estimated on the basis of sales price of
goods and excise rates prevailing on the said date, while determining
the cost of closing stock of finished goods and scrap.
VI) RETIREMENT BENEFITS
Superannuation, Provident and Gratuity Funds are accounted for on
accrual basis with corresponding payments to recognized scheme/fund.
Short term employees benefits are recognized as an expense at the
undiscounted amount in the profit and loss account for the year in
which the related services rendered. The liability for gratuity (in the
nature of a defined benefit obligation) is provided on the basis of
acturial valuation conducted by Life Insurance Company of India (LIC),
since the gratuity scheme of the company is covered under a group
gratuity cum life assurance cash accumulation policy of the LIC.
VII) REVENUE RECOGNITION
Sales are accounted for on the basis of date of dispatch except for
export sales which are booked on the basis of date of custom clearance.
VIII) DIVIDEND
The dividend income is accounted for when the right to receive the
payment is established.
IX) GOVERNMENTGRANTS
Government grant of the nature of promoters contribution is credited
to capital reserve at the time of receipt.
X) FOREIGN EXCHANGE TRANSACTIONS
a) Transactions in foreign currencies are accounted for at the exchange
rate prevailing at the date of transaction/ negotiations.
b) Monetary foreign currencies items outstanding at the year end are
restated into rupees at the rate of exchange prevailing on the Balance
Sheet date.
c) Non monetary foreign currency items are carried at cost.
d) Any income or expenses on account of exchange difference either on
settlement or on transaction is recognized in the profit and loss
account, except in cases where they relate to fixed assets in which
they are adjusted in the carrying cost of such assets.
e) In respect of forward contracts, forward premium or discount arising
at the inception of forward contract is amortized over the life of
contract. Exchange differences on such contracts are recognized in the
profit and loss account in the year in which exchange rates change. Any
profit and loss arising on cancellation or renewal of forward exchange
contract is recognized as income or as expense for the year.
XI) BORROWING COSTS
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of cost of
such assets. Qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. Other borrowing costs
are charged to revenue.
XII) TAXATION
The provision for current income tax liability is ascertained on the
basis of assessable profits computed in accordance with the provisions
of Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of being reversed in one or more subsequent
periods.
The provision for Fringe Benefit Tax is ascertained on the basis of
Fringe Benefits assessable value as per the provisions of the Income
Tax Act, 1961 (upto year ending 31.03.2009).
XIII) CONTINGENCIES
Contingent liabilities arising from claims, litigation, assessments,
fines, penalties etc. are provided when it is probable that the
contingency will result in the loss and reasonable estimate of the
amount of the resulting loss can be made. Liabilities which are
material and whose future outcome can not be ascertained with
reasonable certainty are treated as contingent liabilities and
disclosed by way of notes to account.
XIV) ACCOUNTING FOR LEASES
Lease payments under operating lease have been charged to profit and
loss account as expense on straight line basis over the lease term.
XV) SEGMENT REPORTING
a) The Company has disclosed business segment as the primary segment
for disclosure. The Company has identified four separate segments i.e.
Fine Blanking Components, Mufflers, Spokes and Electricals. The
Segments are identified with regard to the dominant source, nature of
risks and returns, internal organization and management structure and
internal reporting systems.
b) The accounting policies adopted for segment reporting are in line
with the accounting policies of the Company.
c) Segment revenues, Results and Capital employed figures include the
respective amounts identifiable to each of the segments. Interest and
other financial charges/ incomes are reported at corporate level. Also
those assets and liabilities which are not identifiable to the
individual segments are reported at corporate level.
d) The inter segmental revenue is accounted for on the basis of
transfer price agreed to amongst segments as per market trend.
XVI) IMPAIRMENT LOSS
An impairment loss is recognized when the carrying amount of fixed
assets exceeds its recoverable amount. The recoverable amount of an
asset is lower of net selling price and its value in use.
XVII) CASH FLOW STATEMENT
The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard - 3 on Cash Flow Statements and presents cash flows
by operating, investing and financing activities of the Company. The
Company considers all highly liquid financial instruments, with are
readily convertible into cash, to be cash equivalents.
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