Mar 31, 2015
(A) Basis of Preparation
These Financial Statements have been prepared in accordance with the
generally accepted Accounting Principles in India under the Historical
Cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under section 133 of the Companies Act 2013, read
with rule 7 of the Companies Accounts Rules, 2014.
All Assets & 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.
(B) Tangible Assets
Tangible Assets are stated at cost which includes cost of acquisition,
installation, direct costs and borrowing cost incurred upto the date of
commissioning.
(C) Intangible Assets
Intangible Assets not yet amortized, being under development & not put
to use.
(D) Depreciation
(i) Depreciation on tangible assets has been provided at the SLM Method
on the basis of useful life of assets as prescribed in part C of
schedule 11 of Companies Act, 2013.
(ii) Depreciation on additions and deletion during the year has been
provided on pro-rata basis with reference to the month of addition and
deletion.
(iii) Land & Site Development has not been depreciated.
(iv) From the date Schedule II comes into effect:
(a) has been depreciated over the remaining useful life of the assets
as per this schedule
(b) has been charged to surplus of profit & Loss accounts, where the
remaining useful life of an asset is Nil.
(E) Foreign Currency Transactions
(i) Cost of imported material is converted to Indian currency at the
rates prevailing at the time of payment.
(ii) The expenditure in Foreign Currency is accounted at the rates
prevailing on the date of transaction.
(iii) The Export Sales are accounted for at the actual rates prevailing
at the time of bill discounting.
(iv) Balances of Monetary items in Foreign Currency outstanding at the
close of the year are converted in Indian Currency at the appropriate
rates of exchange prevailing on the date of the Balance Sheet.
(v) Exchange rate difference between the prevailing rate on the date of
transaction and on the date of settlement as also on conversion of
monetary items in Current Assets and Current Liabilities at the end of
the year are recognized as income & expenses as the case may be in
Profit & Loss Account.
(F) Inventories
(i) Raw Material, Stores, Spares & Maintenance items, consumable goods
are valued at lower of landed cost and Net Realizable Value. The cost
formula used is FIFO for all items.
(ii) Work in process is valued at cost.
(iii) Finished Goods are valued at Cost or Net Realizable Value
whichever is lower.
(iv) The cost of imported raw material includes custom duties and other
direct expenditure.
(G) Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Dividend income is recognized
when right to receive is established. Interest income is recognized on
time proportion basis taking into account the amount outstanding and
rate applicable. Sales within India are exclusive of Sales Tax and
Excise Duty. Cut off date for accounting Export Sales is based on the
date of bill of lading. Export sales are accounted for on FOB Basis.
(H) Employee Benefits
(i) The Company has Defied Contribution Plan for its employee's
retirement benefits comprising of Provident Fund & Employee's State
Insurance Fund. The Company and eligible employees make monthly
contribution to the above mentioned funds at a specified percentage of
the covered employee's salary. The Company recognizes its contribution
as expenses of the year in which the liability is incurred.
(ii) Gratuity Liability under the Payment of Gratuity Act is based on
actuarial valuation carried out at the close of the financial year in
accordance with the scheme administered by Life Insurance Corporation
of India through a Gratuity Trust Fund and contribution payable under
the said scheme are charged to Profit & Loss Account. In absences of
information Company is not in a position to disclose details as per
AS-15 (Employee Benefits) in respect of defined benefit Plan
(Gratuity).
(iii) Earn Leave Accruing to employees as on the last day of Financial
Year on accrual basis.
(I) Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale are added to the cost of those assets
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognized in
statement of Profit and Loss in the period in which they are incurred.
(J) Taxation
Income Tax Provision comprises Current Tax and Deferred Tax charge or
credit. Provision for current tax is made on Assessable Income at the
tax rate applicable to the relevant assessment year. The Deferred Tax
Assets and Liability is calculated by applying tax rate and tax laws
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred tax assets arising mainly on account of unabsorbed
depreciation under tax laws are recognized only if there is virtual
certainty of its realization, supported by convincing evidence.
Deferred tax assets on account of other timing differences are
recognized, only to the extent there is a reasonable certainty of its
realization. At each Balance Sheet date, the carrying amount of
deferred assets is reviewed to reassure realization.
(K) Impairment
The carrying amount of Assets are reviewed at each Balance Sheet date
if there is any Indication of Impairment based on Internal as well as
external factors. An Impairment Loss will be recognized wherever
carrying amount of Assets exceeds its estimated Recoverable amount. The
recoverable amount is greater of the assets net selling price and value
in use. In assessing the value in use, the estimated future cash flows
are discounted to the present value at weighted average cost of
capital. After, impairment, depreciation is provided on revised
carrying amount of assets over the remaining useful life. Previously
recognized impairment loss is further provided or reversed depending on
changes in circumstances.
(L) Provisions, Contingent Liabilities & Contingent Assets
The company recognizes a provision where there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A Disclosure for a contingent liability is made when there
is possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
assets are neither recognized nor disclosed. Provisions, Contingent
Liabilities and Contingent Assets are reviewed at each Balance Sheet
date.
(M) Lease Transaction
For assets taken/Given on operating lease, lease rentals
payable/receivable are charged/creditors to revenue.
(N) Investments
Investments are valued at cost. Provision for diminution in the value
of long term investments is made. Only if such decline is other than
temporary.
(O) Research & Development
Revenue expenditure pertinent to research & development is charged to
the Profit & Loss Account in the year in which it is incurred.
(P) Cash & Cash Equivalent
In the Cash Flow Statement, Cash and Cash Equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
(Q) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the 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 period
in which the results are known / materialized.
Mar 31, 2014
(A) Basis of Preparation
These Financial Statements have been prepared in accordance with the
generally accepted Accounting Principles in India under the Historical
Cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended and all other relevant provisions of
the Companies Act, 1956.
All Assets & 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 VI to the Companies Act, 1956.
(B) Tangible Assets
Tangible Assets are stated at cost which includes cost of acquisition,
installation, direct costs and borrowing cost incurred upto the date of
commissioning.
(C) Depreciation
(i) Depreciation has been provided at the SLM rates as prescribed by
Schedule XIV of the Companies Act, 1956.
(ii) Depreciation has been provided on Double Shift Basis.
(iii) Depreciation on additions and deletion during the year has been
provided on pro-rata basis with reference to the month of addition and
deletion.
(iv) Land & Site Development has not been depreciated.
(D) Foreign Currency Transactions
(i) Cost of imported material is converted to Indian currency at the
rates prevailing at the time of payment.
(ii) The expenditure in Foreign Currency is accounted at the rates
prevailing on the date of transaction.
(iii) The Export Sales are accounted for at the actual rates prevailing
at the time of bill discounting.
(vi) Alances of Monetary items in Foreign Currency outstanding at the
close of the year are
converted in Indian Currency at the appropriate rates of exchange
prevailing on the date of thes
Balance Sheet.
(v) Exchange rate difference between the prevailing rate on the date of
transaction and on the date of settlement as also on conversion of
monetary items in Current Assets and Current Liabilities at the end of
the year are recognized as income & expenses as the case may be in
Profit & Loss Account.
(E) Inventories
(i) Raw Material, Stores, Spares & Maintenance items, consumable goods
are valued at lower of landed cost and Net Realizable Value. The cost
formula used is FIFO for all items.
(ii) Work in process is valued at cost.
(iii) Finished Goods are valued at Cost or Net Realizable Value
whichever is lower.
(iv) The cost of imported raw material includes custom duties and other
direct expenditure.
(F) Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Interest income is recognized
on time proportion basis taking into account the amount outstanding and
rate applicable. Sales within India are exclusive of Sales Tax and
Excise Duty. Cut off date for accounting Export Sales is based on the
date of bill of lading. Export sales are accounted for on FOB Basis.
(G) Employee Benefits
(i) The Company has Defied Contribution Plan for its employee''s
retirement benefits comprising of Provident Fund & Employee''s State
Insurance Fund. The Company and eligible employees make monthly
contribution to the above mentioned funds at a specified percentage of
the covered employee''s salary. The Company recognizes its contribution
as expenses of the year in which the liability is incurred.
(ii) Gratuity Liability under the Payment of Gratuity Act is based on
actuarial valuation carried out at the close of the financial year in
accordance with the scheme administered by Life Insurance Corporation
of India through a Gratuity Trust Fund and contribution payable under
the said scheme are charged to Profit & Loss Account. In absences of
information Company is not in a position to disclose details as per
AS-15 (Employee Benefits) in respect of defined benefit Plan
(Gratuity).
(iii) Earn Leave Accruing to employees as on the last day of Financial
Year on accrual basis.
(iv) Compensation to Employees who have opted for retirement under the
Voluntary Retirement Scheme of the Company is charged to Profit & Loss
Account in the year of exercise of option.
(H) Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets. Which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale are added to the cost of those assets
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognized in
statement of Profit and Loss in the period in which they are incurred.
(I) Taxation
Income Tax Provision comprises Current Tax and Deferred Tax charge or
credit. Provision for current tax is made on Assessable Income at the
tax rate applicable to the relevant assessment year. The Deferred Tax
Assets and Liability is calculated by applying tax rate and tax laws
that have been enacted or substantively enacted by the Balance Sheet
date. Deferred tax assets arising mainly on account of unabsorbed
depreciation under tax laws are recognized only if there is virtual
certainty of its realization, supported by convincing evidence.
Deferred tax assets on account of other timing differences are
recognized, only to the extent there is a reasonable certainty of its
realization. At each Balance Sheet date, the carrying amount of
deferred assets is reviewed to reassure realization.
(J) Impairment
The carrying amount of Assets are reviewed at each Balance Sheet date
if there is any Indication of Impairment based on Internal as well as
external factors. An Impairment Loss will be recognized wherever
carrying amount of Assets exceeds its estimated Recoverable amount. The
recoverable amount is greater of the assets net selling price and value
in use. In assessing the value in use, the estimated future cash flows
are discounted to the present value at weighted average cost of
capital. After, impairment, depreciation is provided on revised
carrying amount of assets over the remaining useful life. Previously
recognized impairment loss is further provided or reversed depending on
changes in circumstances.
(K) Provisions, Contingent Liabilities & Contingent Assets
The company recognizes a provision where there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A Disclosure for a contingent liability is made when there
is possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
assets are neither recognized nor disclosed. Provisions, Contingent
Liabilities and Contingent Assets are reviewed at each Balance Sheet
date.
(L) Lease Transaction
For assets taken/ Given on operating lease, lease rentals payable/
Receivable are charged/Credited to revenue.
(M) Investments
Investments are valued at cost. Provision for diminution in the value
of long term investments is made, only if such decline is other than
temporary.
(N) Research & Development
Revenue expenditure pertinent to research & development is charged to
the Profit & Loss Account in the year in which it is incurred.
(O) Cash & Cash Equivalent
In the Cash Flow Statement, Cash and Cash Equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
(P) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the 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 period
in which the results are known / materialized.
Mar 31, 2013
1. SIGNIFICANT ACCOUNTING POLICIES
(A) Basis of Preparation
These Financial Statements have been prepared in accordance with the
generally accepted Accounting Principles in India under the Historical
Cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and all other relevant provisions
of the Companies Act, 1956. All Assets & 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 VI to the
Companies Act, 1956.
(B) Tangible Assets
Tangible Assets are stated at cost which includes cost of acquisition,
installation, direct costs and borrowing cost incurred upto the date of
commissioning.
(C) Depreciation
(i) Depreciation has been provided at the SLM rates as prescribed by
Schedule XIV of the Companies Act, 1956.
(ii) Depreciation has been provided on Double Shift Basis.
(iii) Depreciation on additions and deletion during the year has been
provided on pro-rata basis with reference to the month of addition and
deletion.
(iv) Land &Site Development has not been depreciated.
(D) Foreign Currency Transactions
(i) Cost of imported material is converted to Indian currency at the
rates prevailing at the time of payment.
(ii) The expenditure in Foreign Currency is accounted at the rates
prevailing on the date of transaction.
(iii) The Export Sales are accounted for at the actual rates prevailing
at the time of bill discounting.
(vi) Balances of Monetary items in Foreign Currency outstanding at the
close of the year are converted in Indian Currency at the appropriate
rates of exchange prevailing on the date of the Balance Sheet.
(v) Exchange rate difference between the prevailing rate on the date of
transaction and on the date of settlement as also on conversion of
monetary items in Current Assets and Current Liabilities at the end of
the year are recognized as income & expenses as the case may be in
Profit & Loss Account.
(E) Inventories
(i) Raw Material, Stores, Spares & Maintenance items, consumable goods
are valued at lower of landed cost and Net Realizable Value. The cost
formula used is FIFO for all items.
(ii) Work in process is valued at cost.
(iii) Finished Goods are valued at Cost or Net Realizable Value
whichever is lower.
(iv) The cost of imported raw material includes custom duties and other
direct expenditure.
(F) Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Interest income is recognized
on time proportion basis taking into account the amount outstanding and
rate applicable. Sales within India are exclusive of Sales Tax and
Excise Duty. Cutoff date for accounting Export Sales is based on the
date of bill lading. Export sales are accounted for on FOB Basis.
(G) Employee Benefits
(i) The Company has Defied Contribution Plan for its employee''s
retirement benefits comprising of Provident Fund & Employee''s State
Insurance Fund. The Company and eligible employees make monthly
contribution to the above mentioned funds at a specified percentage of
the covered employee''s salary. The Company recognizes its contribution
as expenses of the year in which the liability is incurred.
(ii) Gratuity Liability under the Payment of Gratuity Act is based on
actuarial valuation carried out at the close of the financial year in
accordance with the scheme administered by Life Insurance Corporation
of India through a Gratuity Trust Fund and contribution payable under
the said scheme are charged to Profit & Loss Account. In absences of
information Company is not in a position to disclose details as per
AS-15 (Employee Benefits) in respect of defined benefit Plan
(Gratuity).
(iii) Earn Leave Accruing to employees as on the last day of Financial
Year on accrual basis.
(iv) Compensation to Employees who have opted for retirement under the
Voluntary Retirement Scheme of the Company is charged to Profit & Loss
Account in the year of exercise of option.
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