Mar 31, 2012
1. Basis of Preparation of Financial Statements
The Restated Financial Statements have been prepared under Historical
Cost conventions and on accrual basis in accordance with the Generally
Accepted Accounting Principles (''GAAP'') applicable in India, Companies
(Accounting Standard) Rules, 2006 notified by Ministry of Company
Affairs and Accounting Standards issued by the Institute of Chartered
Accountants of India as applicable and relevant provisions of the
Companies Act, 1956, as adopted consistently by the Company.
2. Use of Estimates
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made, that affects the reported amounts of assets and liabilities on
the date of the Financial Statements and the reported amounts of
revenue and expenses during the reporting period. Differences between
the actual results and estimates are recognized in the period in which
the results are known / materialized.
3. Fixed Assets
a) Fixed Assets are capitalized at cost inclusive of erection expenses
& other incidental expenses in connection with the acquisition of
assets, net of VAT, if any, less accumulated depreciation. Financing
costs relating to acquisition of fixed assets are also included to the
extent they relate to the period till such assets are ready to be put
to use.
b) Fixed assets acquired under Hire Purchase are shown at their
principal cost excluding the interest cost.
4. Depreciation / Amortization
Depreciation on fixed assets is provided on Written Down Value method
(WDV) at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956. In respect of additions made or asset sold /
discarded during the year pro-rata depreciation has been provided.
5. Inventories
Traded goods are valued at cost, determined on FIFO basis. Cost
includes, purchase price and freight and taxes (other than those
subsequently recoverable from the taxing authorities), duties and all
incidental expenses directly attributable to the purchases including
costs incurred in bringing the material to its present location and
condition.
6. Revenue Recognition
Revenue from sales transactions is recognized as and when the property
in goods is sold /transferred to the buyer for a definite
consideration. Other Income has been recognized on the basis of
Accounting Standard - 9 (Revenue Recognition) notified by the Companies
(Accounting Standards) Rules, 2006.
7. Investment
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 are carried at lower of cost or Market / Fair Value
determined on an individual investment basis. Long Term investments are
valued at cost. Provision for diminution in the value of long-term
investment is made only if such decline is other than temporary in
nature.
8. 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. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
9. Employee Benefits
Employee benefit plans comprise both defined benefit and defined
contribution plans.
- Provident fund is a defined contribution plan. Each eligible
employee and the Company make equal contributions at a percentage of
the basic salary specified under the Employees'' Provident Funds and
Miscellaneous Provisions Act, 1952. The Company has no further
obligations under the plan beyond its periodic contributions.
10. Taxation
Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured after taking into consideration the deductions
and exemptions admissible under the provision of Income Tax Act, 1961.
Deferred Tax assets or liabilities are recognized for further tax
consequence attributable to timing difference between taxable income
and accounting income that are measured at relevant enacted tax rates
and in accordance with Accounting Standard 22 on ''Accounting for Taxes
on Income", issued by ICAI. At each Balance Sheet date the Company
reassesses unrecognized deferred tax assets, to the extent they become
reasonably certain or virtually certain of realization, as the case may
be.
11. Leases Finance Lease
Leases which effectively transfer to the Company all risks and benefits
incidental to ownership of the leased item are classified as Finance
Lease. Lease rentals are capitalized at the lower of the fair value and
present value of the minimum lease payments at the inception of the
lease term and disclosed as leased assets. Lease payments are
apportioned between the finance charges and reduction of the lease
liability based on the implicit rate of return.
Operating Lease
Lease where the lesser effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account on a Straight Line Basis over the Lease term.
12. Impairment of Assets
As on Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there are any indications that those
assets have suffered "Impairment Loss". Impairment loss, if any, is
provided to the extent, the carrying amount of assets exceeds their
recoverable amount. Recoverable amount is higher of an asset s net
selling price and its value in use. Value in use is the present value
of estimated future cash flows expected to arise from continuing use of
an asset and from its disposal at the end of its useful life.
13. Foreign Exchange Transactions
i) Transactions in Foreign currency are recorded at the rate of
exchange prevailing on the date of the respective transactions.
ii) Year-end balance of monitory assets and liabilities are translated
at the yearend rates. Exchange differences arising on restatement or
settlement are charged to Profit and Loss Account.
14. Earnings per Share
In determining the Earnings Per share, the company considers the net
profit after tax which includes any post tax effect of any
extraordinary / exceptional item. The number of shares used in
computing basic earnings per share is the weighted average number of
shares outstanding during the period.
The number of shares used in computing Diluted earnings per share
comprises the weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of
equity shares that would have been issued on conversion of all
potentially dilutive shares.
In the event of issue of bonus shares, or share split the number of
equity shares outstanding is increased without an increase in the
resources. The number of Equity shares outstanding before the event is
adjusted for the proportionate change in the number of equity shares
outstanding as if the event had occurred at the beginning of the
earliest period reported.
15. Contingent Liabilities& Provisions
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.
Contingent Liability is disclosed for
a) Possible obligation which will be confirmed only by future events
not wholly within the control of the Company or
b) Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation
cannot be made.
c) Contingent Assets are not recognized in the financial statements
since this may result in the recognition of income that may never be
realized.
d) Counter guarantee in respect of bank guarantee issued by banks on
behalf of company : Amount outstanding as on 31/03/2012 Rs. 1,
33,12,631 / - (P.Y. 1,71,29,916/-)
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