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Accounting Policies of Mayur Uniquoters Ltd. Company

Mar 31, 2017

1 General Information:

Mayur Uniquoters Limited (the Company), is engaged in the business of manufacturing of Coated Textile Fabric. The Company is the leading manufacturer of Coated Textile Fabric in India. The Company has its manufacturing units situated at Village-Jaitpura and Dhodsar, Jaipur (India). Knitted Fabric manufactured in Dhodsar plant is consumed largely as captive consumption. The products of the Company i.e. Coated Textile Fabric are widely used in different segments such as Footwear, Furnishings, Automotive OEM, Automotive replacement market, and Automotive Exports. The Company is selling its products directly to OEMs and other manufacturers, wholesalers in India and is also exporting to various countries including US & UK. The equity shares of the Company are presently listed with BSE Limited (BSE) and National Stock Exchange of India Limited (NSE)

2 Summary of 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 133 of the Companies Act 201 3, read with Rule 7 of the Companies (Accounts) Rules, 2014.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013

(B) Property, Plant and Equipment:

Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the management.

- Depreciation:

(i) Depreciation on property, plant and equipment has been provided at the Straight Line Method on the basis of useful life of assets as prescribed in part C of Schedule II of the Companies Act, 2013.

(ii) Depreciation on additions and deletion during the year has been provided on pro rata basis with reference to the date of addition and deletion. Land & Site development has not been depreciated.

(iii) Depreciation has been provided on Triple Shift Basis

- For all coating lines at Jaitpura unit.

- For Knitting & Process and one coating line for Textile Div. at Dhodsar unit.

Depreciation has been provided on Single Shift Basis -For one coating line at Dhodsar unit.

(iv) From the date Schedule II of the Companies Act 2013 comes into effect, the carrying amount of the assets as on that date after retaining the residual value has been depreciated over the remaining useful life of the assets as per this Schedule.

(v) Depreciation methods, useful lives and residual values are reviewed periodically, at each financial year end. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under non-current assets and the cost of assets not put to use before such date are disclosed under ‘capital work-in-progress''. Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.

(C) Intangible Assets:

Intangible assets are stated at cost less accumulated amortization and impairment, if any. Costs directly attributable to acquisition are capitalized until the intangible assets are available for use, as intended by the management. Intangible assets (Computer Software) are amortized over the period of four years as per provision of AS-26

(D) Foreign Currency Transactions:

(i) Cost of imported material is converted to Indian currency at the rates applied in Bill of Entry for custom purposes.

(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 transaction.

(iv) Exchange fluctuation arising on repayment of long term liability incurred for the purpose of acquiring fixed assets is charged to Statement of Profit & Loss as per the provisions of AS-1 1.

(v) 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.

(vi) 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 & expense as the case may be in Statement of Profit & Loss.

(E) Inventories:

(i) Raw material, stores, spares & maintenance items, consumable goods, work-in-process and other goods are valued at lower of landed cost and net realizable value. The cost formula used is Weighted Average Cost. (The average has been calculated on each additional shipment is received.)

(ii) Finished goods are valued at cost or net realizable value, whichever is lower

(iii) The cost of imported raw material includes custom duties and other direct expenditure.

(iv) The cost of finished goods comprises of raw material cost (proportionate of selling price), manufacturing expenses, payment to & provision for employees, depreciation on Plant & Machinery and factory building (as cost per liner meter on production).

(F) 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 but inclusive of excise duty & net of trade discount. 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) Employees Benefits:

(i) The Company has defined contribution plan for its employees'' retirement benefits comprising of Provident Fund & Employees'' State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary. The Company recognizes its contribution as expense of the year in which the liability is incurred.

(ii) The Company has defined benefit plan comprising of Gratuity Fund & Leave Encashment. The Company contributes to the Gratuity and Leave Encashment Fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) Scheme and Group Leave Encashment Scheme. The liability for Gratuity & Leave Encashment is determined on the basis of independent actuarial valuation done at year end. Plan assets are measured at fair value as at Balance Sheet date.

(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 cost are recognized in Statement of Profit & 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 the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset 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 a 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 the carrying amount of an 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 the Weighted Average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities and 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 a 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:

Lease payments under operating leases are recognized as an expense on a straight-line basis in the Statement of Profit & Loss over the lease term.

(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) 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.

(O)Cash and Cash Equivalents:

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) Research and Development:

All revenue expenses pertaining to research and development are charged to Statement of Profit & Loss in the year in which they are incurred and expenditure of capital nature is capitalized as fixed assets, and depreciated as per the Company''s policy.

(Q) Government Grants:

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in the Statement of Profit & Loss on as systematic and rational basis over the useful life of the assets. Government grants related to revenue are recognized on a systematic basis in net profit in the Statement of Profit & Loss over the periods necessary to match them with the related costs which they are intended to compensate.


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 21 1 (3C) [Companies(Accounting Standards) Rules,2006,as amended] and the other relevant provisions of the Companies Act,1956.

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 VI to the Companies Act,1956.

(B) Tangible Assets:

Tangible Assets are stated at Cost which includes cost of acquisitions,installaton,direct costs and borrowing cost incurred up to 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 on additions and deletion during the year has been provided on pro rata basis with reference to the date of addition and deletion. Land & Site development has not been depreciated.

(iii) Depreciation has been provided on Triple Shift Basis

- For all coating lines at Jaitpura unit.

- For Knitting & Process line for Textile Div.at Dhodsar unit.

Depreciation has been provided on Single Shift Basis

- For coating line at Dhodsar unit.

(D) Foreign Currency Transactions:

(I) Cost of imported material is converted to Indian currency at the rates applied in Bill of Entry for Custom purposes.

(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 transaction.

(iv) Exchange Fluctuation arising on repayment of Long Term Liability incurred for the purpose of acquiring Fixed Assets is charged to Profit & Loss Account as per the provisions of AS-1 1.

(v) 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.

(vi) 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 & expense as the case may be in Profit & Loss Account.

(E) Inventories:

(I) Raw material,stores,spares & maintenance items, consumable goods, work-in-process and other goods are valued at lower of landed cost and Net Realizable Value.The cost formula used is FIFO for all items except for maintenance items for which the cost formula used is weighted Average Cost.

(ii) Finished goods are valued at Cost or Net Realizable value, Whichever is lower.

(iii) The cost of imported raw material includes custom duties and other direct expenditure.

(iv) The cost of finished goods comprises of Raw material cost (proportionate of selling price), Manufacturing Expenses, payment to & provision for employees, Depreciation on Plant & Machinery and factory building (as cost per liner meter on production).

(F) 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 but inclusive of Excise Duty & net of Trade Discount. 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) Employees Benefits:

(I) The Company has Defined Contribution Plan for its employees' retirement benefits comprising of Provident Fund & Employees' State Insurance Fund.The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary.The Company recognizes its contribution as expense of the year in which the liability is incurred.

(ii) The Company has Defined Benefit Plan comprising of Gratuity Fund & Leave Encashment. The Company contributes to the Gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) Scheme and Group Leave Encashment Scheme. The liability for Gratuity & leave Encashment is determined on the basis of independent actuarial valuation done at year end. Plan assets are measured at fair value as at Balance Sheet Date.

(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 cost 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 the assessable income at the tax rate applicable to the relevant AssessmentYear.The Deferred Tax asset 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 a virtual certainty of its realization, supported by convincing evidence. Deferred Tax assets on account of other timing differences are recognised,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 the carrying amount of an 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 the Weighted Average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities and 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 a 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 on operating lease,lease rentals payable are charged 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) 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.

(O) Cash and Cash Equivalents

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) Research and Development

All revenue expenses pertaining to research and development are charged to profit and loss account in the year in which they are incurred and expenditure of capital nature is capitalized as fixed assets, and depreciated as per the Company's policy.


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 21 1 (3C) [Companies(Accounting Standards) Rules,2006,as amended] and the other relevant provisions of the Companies Act,1956.

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 VI to the Companies Act,1956.

(B) Tangible Assets:

Tangible Assets are stated at Cost which includes cost of acquisitions,installaton,direct costs and borrowing cost incurred up to 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 on additions and deletion during the year has been provided on pro rata basis with reference to the date of addition and deletion. Land & Site development has not been depreciated.

(iii) Depreciation has been provided on Triple Shift Basis

- For all coating lines at Jaitpura unit.

- For Knitting & Process line for Textile Div.at Dhodsar unit.

Depreciation has been provided on Single Shift Basis

- For coating line at Dhodsar unit.

(D) Foreign Currency Transactions:

(I) Cost of imported material is converted to Indian currency at the rates applied in Bill of Entry for Custom purposes.

(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 transaction.

(iv) Exchange Fluctuation arising on repayment of Long Term Liability incurred for the purpose of acquiring Fixed Assets is charged to Profit & Loss Account as per the provisions of AS-1 1.

(v) 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.

(vi) 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 & expense as the case may be in Profit & Loss Account.

(E) Inventories:

(I) Raw material,stores,spares & maintenance items, consumable goods, work-in-process and other goods are valued at lower of landed cost and Net Realizable Value.The cost formula used is FIFO for all items except for maintenance items for which the cost formula used is weighted Average Cost.

(ii) Finished goods are valued at Cost or Net Realizable value, Whichever is lower.

(iii) The cost of imported raw material includes custom duties and other direct expenditure.

(iv) The cost of finished goods comprises of Raw material cost (proportionate of selling price), Manufacturing Expenses, payment to & provision for employees, Depreciation on Plant & Machinery and factory building (as cost per liner meter on production).

(F) 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 but inclusive of Excise Duty & net of Trade Discount. 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) Employees Benefits:

(I) The Company has Defined Contribution Plan for its employees' retirement benefits comprising of Provident Fund & Employees' State Insurance Fund.The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary.The Company recognizes its contribution as expense of the year in which the liability is incurred.

(ii) The Company has Defined Benefit Plan comprising of Gratuity Fund & Leave Encashment. The Company contributes to the Gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) Scheme and Group Leave Encashment Scheme. The liability for Gratuity & leave Encashment is determined on the basis of independent actuarial valuation done at year end. Plan assets are measured at fair value as at Balance Sheet Date.

(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 cost 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 the assessable income at the tax rate applicable to the relevant AssessmentYear.The Deferred Tax asset 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 a virtual certainty of its realization, supported by convincing evidence. Deferred Tax assets on account of other timing differences are recognised,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 the carrying amount of an 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 the Weighted Average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities and 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 a 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 on operating lease,lease rentals payable are charged 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) 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.

(O) Cash and Cash Equivalents

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) Research and Development

All revenue expenses pertaining to research and development are charged to profit and loss account in the year in which they are incurred and expenditure of capital nature is capitalized as fixed assets, and depreciated as per the Company's policy.


Mar 31, 2013

(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 21 I (3C)[Companies(Accounting Standards) Rules,2006,as amended] and the other relevant provisions of the Companies Act, 1956.

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 VI to the Companies Act, 1956.

(B) Tangible Assets

Tangible assets are stated at cost which includes cost of acquisitions,installation, direct costs and borrowing cost incurred up to 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 Triple Shift Basis for Jaitpura Unit and Single shift basis for Dhodsar Unit (Textile Div.)

(iii) Depreciation on additions and deletion during the year has been provided on pro rata basis with reference to the date 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 applied in Bill of Entry for custom purposes.

(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 transaction.

(iv) Exchange fluctuation arising on repayment of long term liability incurred for the purpose of acquiring fixed assets is charged to Profit & Loss Account as per the provisions of AS-11.

(v) 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.

(vi) 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 & expense as the case may be in Profit & Loss Account.

(E) Inventories

(i) Raw material,stores,spares & maintenance items, consumable goods, work-in-process and other goods are valued at lower of landed cost and net realizable value.The cost formula used is FIFO for all items except for maintenance items for which the cost formula used is weighted average cost.

(ii) Finished goods are valued at cost or net realizable value, whichever is lower.

(iii) The cost of imported raw material includes custom duties and other direct expenditure.

(iv) The cost of finished goods comprises of raw material cost (proportionate of selling price), manufacturing expenses, payment to & provision for employees, depreciation on plant & machinery and factory building (as cost per liner meter on production).

(F) 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 but inclusive of excise duty & net of trade discount. 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) Employees Benefits

(i) The Company has defined contribution plan for its employees'' retirement benefits comprising of provident fund & Employees'' State Insurance Fund.The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary. The Company recognizes its contribution as expense of the year in which the liability is incurred.

(ii) The Company has defined benefit plan comprising of Gratuity Fund & Leave Encashment. The Company contributes to the Gratuity and Leave Encashment Fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) Scheme and Group Leave Encashment Scheme.The liability for Gratuity & Leave Encashment is determined on the basis of independent actuarial valuation done at year end. Plan assets are measured at fair value as at Balance Sheet date.

(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 cost 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 the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset 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 a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised,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 the carrying amount of an 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 the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities and 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 a 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 on operating lease,lease rentals payable are charged 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) 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.

(O) Cash and Cash Equivalents

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) Research and Development

All revenue expenses pertaining to research and development are charged to Profit and loss account in the year in which they are incurred and expenditure of capital nature is capitalized as fixed assets, and depreciated as per the company''s policy.


Mar 31, 2012

(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 the other relevant provisions of the Companies Act, 1956.

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 VI to the Companies Act, 1956.

(B) Tangible Assets

Tangible Assets are stated at Cost which includes cost of acquisitions, installaton, direct costs and borrowing cost incurred up to 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 Triple Shift Basis.

(iii) Depreciation on additions and deletion during the year has been provided on pro rata basis with reference to the date 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 applied in Bill of Entry for Custom purposes.

(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 transaction.

(iv) Exchange Fluctuation arising on repayment of Long Term Liability incurred for the purpose of acquiring Fixed Assets is charged to Profit & Loss Account as per the provisions of AS-11.

(v) 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.

(vi) 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 & expense as the case may be in Profit & Loss Account.

(E) Inventories

(i) Raw material, stores, spares & maintenance items, consumable goods, work-in-process and other goods are valued at lower of landed cost and Net Realizable Value. The cost formula used is FIFO for all items except for maintenance items for which the cost formula used is weighted Average Cost.

(ii) Finished goods are valued at Cost or Net Realizable value, Whichever is lower.

(iii) The cost of imported raw material includes custom duties and other direct expenditure.

(iv) The cost of finished goods comprises of Raw material cost (proportionate of selling price), Manufacturing Expenses, payment to & provision for employees, Depreciation on Plant & Machinery and factory building (as cost per liner meter on production).

(F) Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Dividend income is recongnized when right to receive is established. interest income is recongnized on time proportion basis taking into account the amount outstanding and rate applicable. Sales Within India are exclusive of Sales Tax but inclusive of Excise Duty & net of Trade Discount .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) Employees Benefits

(i) The Company has Defined Contribution Plan for its employees' retirement benefits comprising of Provident Fund & Employees' State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary. The Company recognizes its contribution as expense of the year in which the liability is incurred.

(ii) The Company has Defined Benefit Plan comprising of Gratuity Fund & Leave Encashment. The Company contributes to the Gratuity and leave encashment fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) Scheme and Group Leave Encashment Scheme .The liability for Gratuity & leave Encashment is determined on the basis of independent actuarial valuation done at year end. Plan assets are measured at fair value as at Balance Sheet Date.

(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.AII other borrowing cost are recognised 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 the assessable income at the tax rate applicable to the relevant Assessment Year. The Deferred Tax asset 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 a virtual certainty of its realization, supported by convincing evidence. Deferred Tax assets on account of other timing differences are recognised, 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 recognised wherever the carrying amount of an 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 the Weighted Average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities and 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 a 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 on operating lease, lease rentals payable are charged 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) 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 recognised in the period in which the results are known/materialised.

(O) Cash and Cash Equivalents

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.


Mar 31, 2011

(A) System of Accounting:

The Company generally follows the mercantile system of accounting except stated otherwise.

(B) Fixed Assets:

Fixed Assets are stated at Cost which includes cost of acquisitions,installation,direct costs and borrowing cost incurred up to 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 triple shift basis.

(iii) Depreciation on additions and deletion during the year has been provided on pro rata basis with reference to the date 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 applied in bill of entry for custom purposes.

(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 transaction.

(iv) Exchange fluctuation arising on repayment of long term liability incurred for the purpose of acquiring fixed assets is charged to Profit & Loss Account as per the provisions of AS-11.

(v) 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.

(vi) 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 & expense as the case may be in Profit & Loss Account.

(E) Inventories:

(i) Raw material,stores,spares & maintenance items,consumable goods,work-in-process and other goods are valued at lower of landed cost and net realizable value.The cost formula used is FIFO for all items except for maintenance items for which the cost formula used is weighted average cost.

(ii) Finished goods are valued at cost or net realizable value, whichever is lower.

(iii) The cost of imported raw material includes custom duties and other direct expenditure.

(iv) The cost of finished goods comprises of raw material cost (proportionate of selling price), manufacturing expenses,payment to & provision for employees, depreciation on plant & machinery and factory building (as cost per liner meter on production).

(F) Revenue Recognition:

All incomes are accounted on accrual basis generally.

(G) Employees Benefits:

(i) The Company has defined contribution plan for its employees retirement benefits comprising of Provident Fund & Employees State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary.The Company recognizes its contribution as expense of the year in which the liability is incurred.

(ii) The Company has defined benefit plan comprising of Gratuity Fund & Leave Encashment. The Company contributes to the Gratuity and Leave Encashment Fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) Scheme and Group Leave Encashment Scheme.The liability for Gratuity & Leave Encashment is determined on the basis of independent actuarial valuation done at year end. Plan assets are measured at fair value as at Balance Sheet date.

(H) Sales:

(i) Sales within india are exclusive of sales tax but inclusive of excise duty & net of trade discount. (ii) Cut off date for accounting export sales is based on the date of bill of lading. (iii) Export sales are accounted for on FOB basis.

(I) Taxation:

Income tax provision comprises current tax and deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year.The deferred tax asset 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 a virtual certainty of its realization,supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised, 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.extemal factors. An impairment loss will be recognised wherever the carrying amount of an 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 the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities and 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 a 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.


Mar 31, 2010

(A) System of Accounting:

The Company generally follows the mercantile system of accounting except stated otherwise.

(B) Fixed Assets:

Fixed Assets are stated at Cost which includes cost of acquisitions, installation, direct costs and borrowing cost incurred up to 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 Triple Shift Basis.

(iii) Depreciation on additions and deletion during the year has been provided on pro rata basis with reference to the

date 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 applied in Bill of Entry for Custom purposes.

(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 transaction.

(iv) Exchange Fluctuation arising on repayment of Long Term Liability incurred for the purpose of acquiring Fixed

Assets is charged to Profit & Loss A/c as per the provisions of AS-11. (v) 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. (vi) 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 & expense as the case may be in Profit & Loss Account.

(E) Inventories:

(i) Raw material, stores, spares & maintenance items, consumable goods, work-in-process and other goods are

valued at lower of landed cost and Net Realizable Value. The cost formula used is FIFO for all items except for

maintenance items for which the cost formula used is weighted Average Cost. (ii) Finished goods are valued at Cost or Net Realizable value, Whichever is lower. (iii) The cost of imported Raw material includes custom duties and other direct expenditure. (iv) The cost of finished goods comprises of Raw material cost (proportionate of selling price), Manufacturing

Expenses, payment to & provision for employees, Depreciation on Plant & Machinery and factory building (as

cost per liner meter on production).

(F) Revenue Recognition:

All incomes are accounted on accrual basis generally.

(C) Employees Benefits:

(i) The Company has Defined Contribution Plan for its employees retirement benefits comprising of Provident Fund & Employees State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employees salary. The Company recognizes its contribution as expense of the year in which the liability is incurred.

(ii) The Company has Defined Benefit Plan comprising of Gratuity Fund & Leave Encashment. The Company contributes to the Gratuity and Leave Encashment fund managed by the Life Insurance Corporation of India under its Group Gratuity (Cash Accumulation) Scheme and Group Leave Encashment Scheme. The liability for Gratuity & Leave Encashment is determined on the basis of independent actuarial valuation done at year end. Plan assets are measured at fair value as at Balance Sheet Date.

(H) Sales:

(i) Sales within India are exclusive of Sales Tax but inclusive of Excise Duty & net of Trade Discount. (ii) Cut Off date for accounting Export Sales is based on the date of Bill of Lading. (iii) Export Sales are accounted for on FOB Basis.

(J) Taxation:

Income Tax provision comprises Current Tax and Deferred Tax charge or credit. Provision for Current Tax is made on the assessable income at the tax rate applicable to the relevant Assessment year. The Deferred Tax asset 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 unabsorbeddepreciation under tax laws are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred Tax assets on account of other timing differences are recognised, 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 recognised wherever the carrying amount of an 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 the Weighted Average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities and 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 a 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.

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