Mar 31, 2016
Corporate Information
Metal Coatings (India) Limited (the ''Company'') was incorporated in India as a limited company under the Companies Act, 1956 on 12 December, 1994. The company is listed in Bombay Stock Exchange. The Company commenced its operations on 9 February, 1995 and is engaged in the manufacture and sale of Cold Rolled Steel Strips, H. R. Pickled coils/strips.
Significant Accounting Policies
a. Basis of accounting
The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (''GAAP'') in India and comply with the accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable and in accordance with the provisions of the Companies Act, 2013, as adopted consistently by the Company.
All assets and liabilities have been classified as current or non-current as per the criteria set out in Revised Schedule III to the Companies Act, 2013.
b. Use of Estimates
The preparation of financial statements are in conformity with the India GAAP, which requires the management to make judgments, estimates, and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the end of reporting period. Although these estimates are based upon management''s knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring any adjustments to the carrying amount of assets or liabilities in future period.
c. Fixed Assets
Fixed assets (gross block) are stated at Historical Cost less accumulated depreciation. Cost includes purchase price and all other attributable costs of bringing the assets to working condition for intended use.
Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to profit and Loss for the period during which such expenses are incurred.
Gains or losses arising from de-recognition of fixed Assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
d. Depreciation/amortization
Depreciation on fixed assets is provided on the straight line method at the rates which are based on economic useful lives of these assets and as are prescribed under Schedule II of the Companies Act, 2013. Assets costing less than Rs. 5,000 individually are fully depreciated in the year of purchase.
e. Inventories
Inventories are valued at the lower of cost or net realizable value. In respect of Raw Material, the cost is determined using the First-in, First-out Method. In respect of Finished Goods and Stock in Progress, the cost includes manufacturing expense and appropriate portion of overheads. Scrap is valued at net realizable value.
f. Revenue recognition
Revenue is recognized when the significant risk and rewards of ownership of the goods have been passed to the buyers for a consideration. Sale of goods is exclusive of Value Added Tax and inclusive of Excise duty. All other income has been accounted for on accrual basis except for those income stipulated for recognition on realization basis on the ground of uncertainty under AS-9.
g. Income taxes
Income tax comprises current tax and deferred tax. Current tax is determined in accordance with the provisions of Income Tax Act, 1961.
Deferred tax charge or credit is recognized on timing differences being the difference between taxable income and accounting income that originate in one year and are capable of reversal, subject to consideration of prudence, in one or more subsequent years. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets on unabsorbed depreciation and carry forward of losses are not recognized unless there is a virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are reviewed for the appropriateness of their carrying values at each balance sheet date.
h. Employee Benefits
a. Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange of services rendered by employees is recognized during the period when the employee renders the services. These benefits include compensated absences and performance incentives.
b. Long term employee benefits
- Provident fund and other state plans
Company''s contributions towards recognized Provident Fund, Employee State Insurance Fund and Employees Pension Scheme under defined contribution plans are recognized in the profit and loss account during the year in which the employee renders the related service.
- Gratuity
The Company provides for gratuity, a defined benefit retirement plan. In accordance with ''The Payment of Gratuity Act, 1972'', the plan provides for a lump sum payment to vested employees, at retirement, death, incapacitation, or termination of employment, of an amount based on the respective employee''s last drawn salary and tenure of employment with the Company.
- Compensated absences
The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of unutilized accrued compensated absence and utilize it in future periods or receive cash compensation for the unutilized accrued compensated absence. The Company records an obligation for compensated absences in the period in which the employee renders the service that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date.
Liability with regard to compensated absences and gratuity is accrued based on actuarial valuations at the balance sheet date, carried out by an independent actuary. Actuarial valuation is carried out using the projected unit credit method, which recognizes each year of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation is based on the market yields on government securities as at the balance sheet date. Actuarial gains/ losses are recognized immediately in the profit and loss account as income or expense.
i. Earnings per share
The Company reports basic earnings per equity share in accordance with AS-20, Earnings per Share. Basic earnings per equity share have been computed by dividing net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding for the year.
j. Contingencies/ Provisions
Provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate of the expenditure 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 estimate. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit is remote.
k. 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 are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is recognized if it is other than temporary.
l. Foreign Exchange Transaction
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate ruling on that date. Exchange differences on foreign exchange transactions other than those relating to fixed assets are recognized in the Profit and Loss account. Any gain/loss on exchange fluctuation on the date of payment of expenditure incurred for acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.
m. Lease hold improvements
The company has taken a piece of land on lease at Meola Maharajpur. The company had constructed a building on the said land as a factory . The amount spent by the company on the construction has been appropriately included under the head âLease hold improvementâ in Fixed Assets schedule.
Mar 31, 2015
A. Basis of accounting
The financial statements have been prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
the Generally Accepted Accounting Principles ('GAAP') in India and
comply with the accounting standards prescribed by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and in
accordance with the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
All assets and Liabilities have been classified as current or
non-current as per the criteria set out in Revised Schedule VI to the
Company Act, 1956.
b. Use of Estimates
The preparation of financial statements are in conformity with the
India GAAP, which requires the management to make judgments, estimates,
and assumptions that effect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities at
the end of reporting period. Although these estimates are based upon
management's knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring
any adjustments to the carrying amount of assets or liabilities in
future period.
c. Fixed Assets
Fixed assets (gross block) are stated at Historical Cost less
accumulated depreciation. Cost includes purchase price and all other
attributable costs of bringing the assets to working condition for
intended use.
Subsequent expenditure related to an item of fixed assets is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day to day
repair and maintenance expenditure and cost of replacing parts, are
charged to profit and Loss for the period during which such expenses
are incurred.
Gains or losses arising from de-recognition of fixed Assets are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
d. Depreciation/amortisation
Depreciation on fixed assets is provided on the straight line method at
the rates which are based on economic useful lives of these assets and
as are prescribed under Schedule II of the Companies Act, 2013. Assets
costing less than Rs. 5,000 individually are fully depreciated in the
year of purchase.
e. Inventories
Inventories are valued at the lower of cost or net realizable value. In
respect of Raw Material, the cost is determined using the First-in,
First-out Method. In respect of Finished Goods and Stock in Progress,
the cost includes manufacturing expense and appropriate portion of
overheads. Scrap is valued at net realisable value.
f. Revenue recognition
Revenue is recognized when the significant risk and rewards of
ownership of the goods have been passed to the buyers for a
consideration. Sale of goods is exclusive of Value Added Tax and
inclusive of Excise duty. All other income has been accounted for on
accrual basis except for those income stipulated for recognition on
realization basis on the ground of uncertainty under AS-9.
g. Income taxes
Income tax comprises current tax and deferred tax. Current tax is
determined in accordance with the provisions of Income Tax Act, 1961.
Deferred tax charge or credit is recognised on timing differences being
the difference between taxable income and accounting income that
originate in one year and are capable of reversal, subject to
consideration of prudence, in one or more subsequent years. Deferred
tax assets and liabilities are measured using the tax rates and tax
laws that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets on unabsorbed depreciation and carry
forward of losses are not recognized unless there is a virtual
certainty that there will be sufficient future taxable income available
to realize such assets. Deferred tax assets are reviewed for the
appropriateness of their carrying values at each balance sheet date.
h. Employee Benefits
a. Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange of services rendered by employees is recognised during
the period when the employee renders the services. These benefits
include compensated absences and performance incentives.
b. Long term employee benefits
* Provident fund and other state plans
Company's contributions towards recognised Provident Fund, Employee
State Insurance Fund and Employees Pension Scheme under defined
contribution plans are recognised in the profit and loss account during
the year in which the employee renders the related service.
* Gratuity
The Company provides for gratuity, a defined benefit retirement plan.
In accordance with 'The Payment of Gratuity Act, 1972', the plan
provides for a lump sum payment to vested employees, at retirement,
death, incapacitation, or termination of employment, of an amount based
on the respective employee's last drawn salary and tenure of employment
with the Company.
* Compensated absences
The employees of the Company are entitled to compensated absences. The
employees can carry forward a portion of unutilized accrued compensated
absence and utilize it in future periods or receive cash compensation
for the unutilized accrued compensated absence. The Company records an
obligation for compensated absences in the period in which the employee
renders the service that increase this entitlement. The Company
measures the expected cost of compensated absence as the additional
amount that the Company expects to pay as a result of the unused
entitlement that has accumulated at the balance sheet date.
Liability with regard to compensated absences and gratuity is accrued
based on actuarial valuations at the balance sheet date, carried out by
an independent actuary. Actuarial valuation is carried out using the
projected unit credit method, which recognises each year of service as
giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation is measured at the present value of the estimated future
cash flows. The discount rate used for determining the present value of
the obligation is based on the market yields on government securities
as at the balance sheet date. Actuarial gains/ losses are recognised
immediately in the profit and loss account as income or expense.
i. Earnings per share
The Company reports basic earnings per equity share in accordance with
AS-20, Earnings per Share. Basic earnings per equity share have been
computed by dividing net profit after tax attributable to equity
shareholders by the weighted average number of equity shares
outstanding for the year.
j. Contingencies/ Provisions
Provision is recognized when the Company has a present obligation as a
result of past event; it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure 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 estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
k. Investments
Investments that are readily realisable 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 and fair value determined on
an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in value is recognized if it is
other than temporary.
l. Foreign Exchange Transaction
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency and outstanding at the Balance Sheet date are
translated at the exchange rate ruling on that date. Exchange
differences on foreign exchange transactions other than those relating
to fixed assets are recognized in the Profit and Loss account. Any
gain/loss on exchange fluctuation on the date of payment of expenditure
incurred for acquisition of fixed assets is treated as an adjustment to
the carrying cost of such fixed assets.
m. Lease hold improvements
The company has taken a piece of land on lease at Meola Maharajpur. The
company had constructed a building on the said land as a factory . The
amount spent by the company on the construction has been appropriately
included under the head "Lease hold improvement" in Fixed Assets
schedule.
Mar 31, 2014
A. Basis of accounting
The financial statements have been prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
the Generally Accepted Accounting Principles (''GAAP'') in India and
comply with the accounting standards prescribed by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and in
accordance with the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
All assets and Liabilities have been classified as current or
non-current as per the criteria set out in Revised Schedule VI to the
Company Act, 1956.
b. Use of Estimates
The preparation of financial statements are in conformity with the
India GAAP, which requires the management to make judgments, estimates,
and assumptions that effect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities at
the end of reporting period. Although these estimates are based upon
management''s knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring
any adjustments to the carrying amount of assets or liabilities in
future period.
c. Fixed Assets
Fixed assets (gross block) are stated at Historical Cost less
accumulated depreciation. Cost includes purchase price and all other
attributable costs of bringing the assets to working condition for
intended use.
Subsequent expenditure related to an item of fixed assets is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day to day
repair and maintenance expenditure and cost of replacing parts, are
charged to profit and Loss for the period during which such expenses
are incurred.
Gains or losses arising from de-recognition of fixed Assets are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
d. Depreciation/amortisation
Depreciation on fixed assets is provided on the straight line method at
the rates which are based on economic useful lives of these assets and
as are prescribed under Schedule XIV of the Companies Act, 1956. Assets
costing less than Rs. 5,000 individually are fully depreciated in the
year of purchase.
e. Inventories
Inventories are valued at the lower of cost or net realizable value. In
respect of Raw Material, the cost is determined using the First-in,
First-out Method. In respect of Finished Goods and Stock in Progress,
the cost includes manufacturing expense and appropriate portion of
overheads. Scrap is valued at net realisable value.
f. Revenue recognition
Revenue is recognized when the significant risk and rewards of
ownership of the goods have been passed to the buyers for a
consideration. Sale of goods is exclusive of Value Added Tax and
inclusive of Excise duty. All other income has been accounted for on
accrual basis except for those income stipulated for recognition on
realization basis on the ground of uncertainty under AS-9.
g. Income taxes
Income tax comprises current tax and deferred tax. Current tax is
determined in accordance with the provisions of Income Tax Act, 1961.
Deferred tax charge or credit is recognised on timing differences being
the difference between taxable income and accounting income that
originate in one year and are capable of reversal, subject to
consideration of prudence, in one or more subsequent years. Deferred
tax assets and liabilities are measured using the tax rates and tax
laws that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets on unabsorbed depreciation and carry
forward of losses are not recognized unless there is a virtual
certainty that there will be sufficient future taxable income available
to realize such assets. Deferred tax assets are reviewed for the
appropriateness of their carrying values at each balance sheet date.
h. Employee Benefits
a. Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange of services rendered by employees is recognised during
the period when the employee renders the services. These benefits
include compensated absences and performance incentives.
b. Long term employee benefits
Provident fund and other state plans
Company''s contributions towards recognised Provident Fund, Employee
State Insurance Fund and Employees Pension Scheme under defined
contribution plans are recognised in the profit and loss account during
the year in which the employee renders the related service.
Gratuity
The Company provides for gratuity, a defined benefit retirement plan.
In accordance with ''The Payment of Gratuity Act, 1972'', the plan
provides for a lump sum payment to vested employees, at retirement,
death, incapacitation, or termination of employment, of an amount based
on the respective employee''s last drawn salary and tenure of employment
with the Company.
Compensated absences
The employees of the Company are entitled to compensated absences. The
employees can carry forward a portion of unutilized accrued compensated
absence and utilize it in future periods or receive cash compensation
for the unutilized accrued compensated absence. The Company records an
obligation for compensated absences in the period in which the employee
renders the service that increase this entitlement. The Company
measures the expected cost of compensated absence as the additional
amount that the Company expects to pay as a result of the unused
entitlement that has accumulated at the balance sheet date.
Liability with regard to compensated absences and gratuity is accrued
based on actuarial valuations at the balance sheet date, carried out by
an independent actuary. Actuarial valuation is carried out using the
projected unit credit method, which recognises each year of service as
giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation is measured at the present value of the estimated future
cash flows. The discount rate used for determining the present value of
the obligation is based on the market yields on government securities
as at the balance sheet date. Actuarial gains/ losses are recognised
immediately in the profit and loss account as income or expense.
i. Earnings per share
The Company reports basic earnings per equity share in accordance with
AS-20, Earnings per Share. Basic earnings per equity share have been
computed by dividing net profit after tax attributable to equity
shareholders by the weighted average number of equity shares
outstanding for the year.
j. Contingencies/ Provisions
Provision is recognized when the Company has a present obligation as a
result of past event; it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure 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 estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
k. Investments
Investments that are readily realisable 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 and fair value determined on
an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in value is recognized if it is
other than temporary.
l. Foreign Exchange Transaction
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency and outstanding at the Balance Sheet date are
translated at the exchange rate ruling on that date. Exchange
differences on foreign exchange transactions other than those relating
to fixed assets are recognized in the Profit and Loss account. Any
gain/loss on exchange fluctuation on the date of payment of expenditure
incurred for acquisition of fixed assets is treated as an adjustment to
the carrying cost of such fixed assets. k. Lease hold improvements
The company has taken a piece of land on lease at Meola Maharajpur. The
company had constructed a building on the said land as a factory. The
amount spent by the company on the construction has been appropriately
included under the head "Lease hold improvement" in Fixed Assets
schedule.
Mar 31, 2012
A. Basis of accounting
The financial statements have been prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
the Generally Accepted Accounting Principles (ÃGAAP') in India and
comply with the accounting standards prescribed by the Companies
(Accounting Standards) Rules, 2006 to the extent applicable and in
accordance with the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
b. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
includes purchase price and all other attributable costs of bringing
the assets to working condition for intended use.
c. Depreciation/amortisation
Depreciation on fixed assets is provided on the straight line method at
the rates which are based on economic useful lives of these assets and
as are prescribed under Schedule XIV of the Companies Act, 1956. Assets
costing less than Rs. 5,000 individually are fully depreciated in the
year of purchase.
d. Revenue recognition
Revenue is recognized when the significant risk and rewards of
ownership of the goods have been passed to the buyers for a
consideration. Sale of goods is exclusive of Value Added Tax and
inclusive of Excise duty.
e. Income taxes
Income tax comprises current tax and deferred tax. Current tax is
determined in accordance with the provisions of Income Tax Act, 1961.
Deferred tax charge or credit is recognised on timing differences being
the difference between taxable income and accounting income that
originate in one year and are capable of reversal, subject to
consideration of prudence, in one or more subsequent years. Deferred
tax assets and liabilities are measured using the tax rates and tax
laws that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets on unabsorbed depreciation and carry
forward of losses are not recognized unless there is a virtual
certainty that there will be sufficient future taxable income available
to realize such assets. Deferred tax assets are reviewed for the
appropriateness of their carrying values at each balance sheet date.
f. Employee Benefits
a. Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange of services rendered by employees is recognised during
the period when the employee renders the services. These benefits
include compensated absences and performance incentives.
b. Long term employee benefits
- Provident fund and other state plans
Company's contributions towards recognised Provident Fund, Employee
State Insurance Fund and Employees Pension Scheme under defined
contribution plans are recognised in the profit and loss account during
the year in which the employee renders the related service.
- Gratuity
The Company provides for gratuity, a defined benefit retirement plan.
In accordance with The Payment of Gratuity Act, 1972', the plan
provides for a lump sum payment to vested employees, at retirement,
death, incapacitation, or termination of employment, of an amount based
on the respective employee's last drawn salary and tenure of
employment with the Company.
- Compensated absences
The employees of the Company are entitled to compensated absences. The
employees can carry forward a portion of unutilized accrued compensated
absence and utilize it in future periods or receive cash compensation
for the unutilized accrued compensated absence. The Company records an
obligation for compensated absences in the period in which the employee
renders the service that increase this entitlement. The Company
measures the expected cost of compensated absence as the additional
amount that the Company expects to pay as a result of the unused
entitlement that has accumulated at the balance sheet date.
Liability with regard to compensated absences and gratuity is accrued
based on actuarial valuations at the balance sheet date, carried out by
an independent actuary. Actuarial valuation is carried out using the
projected unit credit method, which recognises each year of service as
giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation is measured at the present value of the estimated future
cash flows. The discount rate used for determining the present value of
the obligation is based on the market yields on government securities
as at the balance sheet date. Actuarial gains/ losses are recognised
immediately in the profit and loss account as income or expense.
g. Earnings per share
The Company reports basic earnings per equity share in accordance with
AS-20, Earnings per Share. Basic earnings per equity share have been
computed by dividing net profit after tax attributable to equity
shareholders by the weighted average number of equity shares
outstanding for the year.
h. Contingencies/ Provisions
Provision is recognized when the Company has a present obligation as a
result of past event; it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best
estimate of the expenditure 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 estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
i. Investments
Investments that are readily realisable 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 and fair value determined on
an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in value is recognized if it is
other than temporary.
j. Foreign Exchange Transaction
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency and outstanding at the Balance Sheet date are
translated at the exchange rate ruling on that date. Exchange
differences on foreign exchange transactions other than those relating
to fixed assets are recognized in the Profit and Loss account. Any
gain/loss on exchange fluctuation on the date of payment of expenditure
incurred for acquisition of fixed assets is treated as an adjustment to
the carrying cost of such fixed assets.
k. Lease hold improvements
The company has taken a piece of land on lease at Meola Maharajpur. The
company had constructed a building on the said land as a factory . The
amount spent by the company on the construction has been appropriately
included under the head lease hold improvement in Fixed Assets
schedule.
The Company has one class of equity shares having a par value of Rs. 10
each. Each shareholder is eligible for one vote per share held.
The dividend proposed i.e 10% by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
Mar 31, 2010
1) The accounts have been prepared under the going concern and historic
cost convention, unless otherwise stated.
2) The sales and raw material purchases are Inclusive of excise duty.
3) Fixed Assets:
i) Fixed Assets are stated at cost to the company less depreciation.
ii) Depreciation Is provided under straight line method at the rates
and In the manner prescribed in Schedule XIV of the Companies
Act, 1956.
4) Valuation of Inventories :
i) Raw Materials, Work-in-process and Stores are valued at cost. ii)
Finished goods are valued at lower of cost and net realisable value.
iii) Scrap is valued at estimated net realisable value.
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