Mar 31, 2018
1.) SIGNIFICANT ACCOUNTING POLICIES:
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
a) Basis of Presentation:
I) Compliance with IndAS
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per Companies Indian Accounting Standard Rules, 2015 notified under section 133 of the Companies Act,2013 (the Act) and other relevant provisions of the Act.
The financial statements up to year ended 31stMarch 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
These financial statements are the first financial statements of the company under Ind AS. Refer note 41 for an explanation of how the transition from previous GAAP to Ind AS has affected the companyâs financial position, financial performance and cash flows.
The Financial statements of the company for the year ended 31st March, 2018 have been approved by the Board of Directors at their meetings held on 30 May, 2018.
(ii) Accounting Convention
The accounts of the Company have been prepared on going concern basis and historical cost basis except certain financial assets and liabilities measured at fair value and defined benefit plans-assets measured at fair value.
(iii) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
(iv) Current/Non-current classification
"All assets and liabilities have been classified as current or non-current as per Companyâs normal operating cycle and other criteria set out in the Schedule III to the Act."
b) Foreign currency translation
Items included in the financial statements of each of the companyâs entities are measured using the currency of the primary economic environment in which the entity operates (âthe functional currencyâ). The financial statements are presented in Indian rupee (INR), which is Nahar Spinning Mills Limitedâs functional and presentation currency.
"Foreign currency translations are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in the Statement of profit and loss."
c) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivables. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates and value added taxes/GST.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the companyâs activities as described below. The company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and specific of each arrangement.
Export Incentives- Export incentives are recognised on post export basis.
Revenue recognition- Revenue from sales are recognised when significant risk and rewards of ownership of the goods has been transferred to the buyer and entity does not have the effective control over the goods sold.
d) Government Grants:
Grants from the government are recognised at their fair value when there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions.
Government grant relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.
Government grants relating to purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss over the expected lives of the related assets and presented within other income.
e) Income Tax:
The income tax expense or credit for the period is the tax payable on the current periodâs taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in the Statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In that case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
f) Trade Receivables:
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
g) Cash and cash Equivalents:
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, other bank balances, and bank overdrafts.
h) Inventories
"Inventories are valued at cost or net realizable value, whichever is lower. However to determine the cost, the following methods are adopted:-"
1. a) For Raw Material on weighted average method plus direct expenses.
b) For Stores and Spares on weighted average method plus direct expenses.
c) For Work-in-Process, cost of Raw Material plus appropriate share of manufacturing expenses / relevant Overheads conversion cost depending upon the stage of completion.
2. "For Finished goods, cost of raw material plus conversion costs, packing cost and other overheads incurred to bring the inventories to their present condition and location.."
3. Further Wastage and Rejections are valued at net realizable value only.
4. Goods in Transit are valued at cost.
i) INVESTMENT AND OTHER FINANCIAL ASSETS
I) Classification
The company classifies its financial assets in the following measurement categories -
- Those to be measured subsequently at fair value (either through other comprehensive income or through Statement of profit and loss), and
- Those measured at amortised cost
The classification depends on the companyâs business model for managing the financial assets and the contractual terms of cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at the fair value through other comprehensive income
ii) Measurement
At initial recognition, the company measures a financial asset at its fair value plus transaction cost that are directly attributable to the acquisition of the financial asset. In the case of a financial asset at fair value through profit or loss, transaction costs of financial assets are expensed in the Statement of profit and loss.
The company subsequently measures all equity investments at fair value. Where the companyâs management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss.
iii) Impairment of financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less cost of disposal and its value in use.
The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
iv) De-recognition of Financial Assets:
Financial asset is derecognised only when
- The company has transferred the rights to receive cash flows from the financial asset or
- Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
v) Income Recognition:
"Interest income - Interest income from debt instruments is recognised using the effective interest rate method."
Dividend income -Dividends are recognised in profit or loss only when the right to receive payment is established.
Rental Income - Rental income is accounted for on accrual basis.
Scrap (i.e. empties, wastage etc. Other than production ) is accounted for on sale basis.
j) Impairment of Non-Financial assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable amount. The recoverable amount is higher of an assetâs fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from assets or group of assets (cash-generating units). Non-Financial assets suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
k) Non- Current Assets Held for Sale:
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and sale is considered highly probable. They are measured at lower of their carrying amount and fair value less cost to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt.
"Non-current assets are not depreciated or amortised while they are classified held for sale. Interest and other expenses attributable to the liabilities of disposal, company classified as held for sale, continue to be recognised."
l) Derivatives that are not designated as hedges
The company enters into certain derivatives/forward contracts to hedge foreign currency risks which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss.
m) Property, plant and equipment Transition to Ind AS
On transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant and equipment recognised as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Depreciation methods, estimated useful lives and residual value
The company depreciates its property, plant and equipment over the useful life in the manner prescribed in the Schedule II to the Companies Act, 2013. Depreciation is charged on straight line bases and residual values are not more than 5% of the original cost of the assets.
n) Intangible assets Computer software
Computer software are stated at cost, less accumulated amortisation and impairment ,if any.
Amortisation methods and periods
The company amortises the computer software with a finite useful life over the period of 5 years.
o) Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. The amounts are unsecured.
p) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using effective interest method.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.
q) Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.
r) Provisions and contingent liabilities
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.
s) Employee benefits
(I) Short term obligations
Liabilities for wages and salaries, including non-monetary benefits, if any, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Other long term employee benefit obligations
The liabilities, if any, which needs to be settled after 12 months from the end of the period in which the employees render the related services are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of reporting period using the projected unit credit method.
(iii) Post-employment obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
"Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet."
(iv) Defined contribution plans
Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.
t) Estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management has made judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses.
The areas involving critical estimates or judgements are:
- Estimation of current tax expense and payable.
- Designation of financial assets /liabilities through FVTPL.
- Estimation of defined benefit obligation.
- Recognition of deferred tax assets for carried forward tax losses.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on company and that are believed to be reasonable under the circumstances.
Mar 31, 2016
i) ACCOUNTING CONVENTION
The Financial Statements are prepared on accrual basis under the historical cost convention in accordance with the accounting standards notified under the relevant provisions referred to in Companies Act, 2013 and other relevant provisions of the said Act.
ii) REVENUE RECOGNITION
a) Sale of Goods: Sale of goods is recognized at the point of dispatch of finished goods to the customers and all the significant risks and rewards of the ownership are transfer to the buyer and the company retains no effective control and no uncertainty exists regarding the recovery of amount. Sales value is inclusive of excise duty wherever applicable paid on the clearance of finished goods.
b) Exports Benefits: Revenue in respect of exports benefits being DEPB / Duty Drawback Scheme is recognized on post export bases.
c) Dividend Income: Dividend income is recognized when the Companyâs right to receive payment is established.
d) Investment Income: Profit/loss arising on sale of investments is considered at the time of sale/redemption.
e) Interest Income: Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
f) Insurance Claims: Insurance Claims are recognized at the time of occurrence of an event if it is reasonable ascertained
iii) FIXED ASSETS AND DEPRECIATION
a) Tangible assets: Tangible assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. Depreciation is charged on Straight Line bases as per the Useful life specified in schedule-II of the Companies Act, 2013
b) Intangible Assets:- Intangible assets are stated at cost less accumulated amount of amortization. Such asset are amortized on Straight Line Bases on the estimated useful life.
iv) INVESTMENTS
Long term investments are stated at cost. Diminution in value of investments, if any has not been considered being temporary in nature.
v) INVENTORIES
Inventories are valued at cost or net realizable value, whichever is lower. However to determine the cost, the following methods are adopted:-
- Raw Material: Moving weighted average cost plus direct expenses.
- Stores and Spares: Moving weighted average cost.
- Work-in-process: Cost of raw material plus appropriate share of manufacturing expenses and other relevant overheads.
- Finished Goods: Cost of raw material plus conversion costs, packing cost and other overheads incurred to bring the inventories to their present condition and location.
- Wastage and rejections: At net realizable value.
vi) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
All the indirect expenses incurred during construction period up to the date of commencement of commercial production will be capitalized on various categories of fixed assets on proportionate bases.
vii) RETIREMENT BENEFITS
a) Gratuity
The Company has taken a Group Gratuity Policy from LIC of India to discharge its liability of Gratuity. The calculation of premium under the policy is made on the basis of actuarial valuation done by LIC.
b) Provident Fund
Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is charged to Profit and Loss account.
viii) FOREIGN EXCHANGE TRANSACTIONS
a) Gain or loss on foreign exchange transactions which are relating to fixed assets acquired from a country outside India are adjusted in the cost of relevant fixed asset. Other gains or losses on foreign exchange transactions are recognized in the Profit & Loss Account. Monetary assets and liabilities other than those covered by forward contracts have been valued at the exchange rates prevailing at the close of the financial year
b) In respect of forward contracts, forward premium or discount arising at the inception of forward contract, any profit/loss arising on cancellation renewal of such contracts and exchange difference on such contracts if pertaining to fixed assets acquired from a country outside India only are adjusted in the cost of relevant fixed asset. Other premiums/discounts at inception of contracts and profit/loss on cancellation/renewal of contracts are recognized in profit & loss account in the year in which exchange rates change.
ix) EXCISE DUTY
Excise duty payable on finished goods, if any, is accounted for on clearance of goods from the factory. Cenvat in respect of excise duty paid on raw material, stores and capital goods is taken, in accordance with the Cenvat Credit Rules 2004 as amended.
x) WARRANTY CLAIMS
As per the nature of business of the company, the question of warranty claims does not arise. The routine claims on account of quality or quantity logged with the company other than those which are disputed one, are accounted for as and when accepted by the company.
xi) ACCOUNTING FOR TAXES ON INCOME
The accounting treatment followed for taxes on income is to provide for Current Tax and Deferred Tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for a period. Deferred Tax is the tax effect of timing differences.
xii) IMPAIRMENT OF ASSETS
At each Balance Sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts.
xiii) BORROWING COST
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as cost of relevant fixed asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.
xiv) GOVERNMENT GRANTS / SUBSIDY
Government grants/subsidies are recognized, when there is a reasonable assurance that the company will comply with the conditions attached to them and the grants/subsidy will be received. The government grants/subsidy received for specific asset is reduce from the cost of asset and other grants are shown as income.
xv) PROVISION AND CONTIGENT LIABILITIES
a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if :
- the company has a present obligation as a result of past event.
- a probable outflow of resources embodying economic benefits is expected to settle the obligation and
- the amount of the obligation can be reliably estimated.
b) Contingent Liability is disclosed in case of :
- a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or
Mar 31, 2015
I) ACCOUNTING CONVENTION
The Financial Statements are prepared on accrual basis under the
historical cost convention in accordance with the accounting standards
notified under the relevant provisions referred to in Companies Act,
2013 and other relevant provisions of the said Act.
ii) REVENUE RECOGNITION
a) Sale of Goods: Sale of goods is recognized at the point of dispatch
of finished goods to the customers. Sales value is inclusive of excise
duty wherever applicable paid on the clearance of finished goods.
b) Exports Benefits: Revenue in respect of exports benefits being DEPB
/ Duty Drawback Scheme is recognized on post export bases.
c) Dividend Income: Dividend income is recognized when the Company's
right to receive payment is established.
d) Investment Income: Profit/loss arising on sale of investments is
considered at the time of sale/redemption.
e) Interest Income: Interest income is recognized on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
f) Insurance Claims: Insurance Claims are recognized at the time of
occurrence of an event if it is reasonable ascertained
iii) FIXED ASSETS AND DEPRECIATION
a) Tangible assets: Tangible assets are stated at cost less accumulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses. Depreciation is charged on
Straight Line bases as per the Useful life specified in schedule-II of
the Companies Act, 2013
b) Intangible Assets:- Intangible assets are stated at cost less
accumulated amount of amortization. Such asset are amortized on
Straight Line Bases on the estimated useful life.
iv) INVESTMENTS
Long term investments are stated at cost. Diminution in value of
investments, if any has not been considered being temporary in nature.
v) INVENTORIES
Inventories are valued at cost or net realizable value, whichever is
lower. However to determine the cost, the following methods are
adopted:-
* Raw Material: Moving weighted average cost plus direct expenses.
* Stores and Spares: Moving weighted average cost.
* Work-in-process: Cost of raw material plus appropriate share of
manufacturing expenses and other relevant overheads.
* Finished Goods: Cost of raw material plus conversion costs, packing
cost and other overheads incurred to bring the inventories to their
present condition and location.
* Wastage and rejections: At net realizable value.
vi) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
All the indirect expenses incurred during construction period up to the
date of commencement of commercial production will be capitalized on
various categories of fixed assets on proportionate bases.
vii) RETIREMENT BENEFITS a) Gratuity
The Company has taken a Group Gratuity Policy from LIC of India to
discharge its liability of Gratuity. The calculation of premium under
the policy is made on the basis of actuarial valuation done by LIC.
b) Provident Fund
Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and is charged to Profit and Loss account.
viii) FOREIGN EXCHANGE TRANSACTIONS
a) Gain or loss on foreign exchange transactions which are relating to
fixed assets acquired from a country outside India are adjusted in the
cost of relevant fixed asset. Other gains or losses on foreign exchange
transactions are recognized in the Profit & Loss Account. Monetary
assets and liabilities other than those covered by forward contracts
have been valued at the exchange rates prevailing at the close of the
financial year
b) In respect of forward contracts, forward premium or discount arising
at the inception of forward contract, any profit/loss arising on
cancellation renewal of such contracts and exchange difference on such
contracts if pertaining to fixed assets acquired from a country outside
India only are adjusted in the cost of relevant fixed asset. Other
premiums/discounts at inception of contracts and profit/loss on
cancellation/renewal of contracts are recognized in profit & loss
account in the year in which exchange rates change.
ix) EXCISE DUTY
Excise duty payable on finished goods, if any, is accounted for on
clearance of goods from the factory. Cenvat in respect of excise duty
paid on raw material, stores and capital goods is taken, in accordance
with the Cenvat Credit Rules 2004 as amended.
x) WARRANTY CLAIMS
As per the nature of business of the company, the question of warranty
claims does not arise. The routine claims on account of quality or
quantity logged with the company other than those which are disputed
one, are accounted for as and when accepted by the company.
xi) ACCOUNTING FOR TAXES ON INCOME
The accounting treatment followed for taxes on income is to provide for
Current Tax and Deferred Tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for a period.
Deferred Tax is the tax effect of timing differences.
xii) IMPAIRMENT OF ASSETS
At each Balance Sheet date, an assessment is made whether any
indication exists that an asset has been impaired. If any such
indication exists, an impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in the books of accounts.
xiii) BORROWING COST
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
cost of relevant fixed asset. Other borrowing costs are recognized as
an expense in the period in which they are incurred.
xiv) GOVERNMENT GRANTS / SUBSIDY
Government grants/subsidies are recognized, when there is a reasonable
assurance that the company will comply with the conditions attached to
them and the grants/subsidy will be received. The government
grants/subsidy received for specific asset is reduce from the cost of
asset and other grants are shown as income.
xv) PROVISION AND CONTIGENT LIABILITIES
a) Provisions are recognized for liabilities that can be measured by
using a substantial degree of estimation, if :
* the company has a present obligation as a result of past event.
* a probable outflow of resources embodying economic benefits is
expected to settle the obligation and
* the amount of the obligation can be reliably estimated.
b) Contingent Liability is disclosed in case of :
* a present obligation arising from a past event when it is not
probable that an outflow of resources embodying economic benefits will
be required to settle the obligation or
* a possible obligation, unless the probability of outflow in
settlement is remote.
Mar 31, 2014
I) ACCOUNTING CONVENTION
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the accounting standards referred to in
Section 211(3C) of the Companies Act, 1956 and other relevant
provisions of the said Act.
ii) REVENUE RECOGNITION
a) Sale of Goods: Sale of goods is recognized at the point of dispatch
of finished goods to the customers. Sales value is inclusive of excise
duty wherever applicable paid on the clearance of finished goods.
b) Exports Benefits: Revenue in respect of exports benefits being
DEPB/Duty Drawback Scheme is recognized on post export bases.
c) Dividend Income: Dividend income is recognized when the Company''s
right to receive payment is established.
d) Investment Income: Profit/loss arising on sale of investments is
considered at the time of sale/redemption.
e) Interest Income: Interest income is recognized on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
iii) FIXED ASSETS AND DEPRECIATION
a) Tangible assets: Tangible assets are stated at cost less accomulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses. Depreciation is charged on
Straight Line bases as per the rates
b) Intangible Assets:- Intangible assets are stated at cost less
accumulated amount of amortization. Such asset are amortized on
Straight Line Bases on the estimated useful life.
iv) INVESTMENTS
Long term investments are stated at cost. Diminution in value of
investments, if any has not been considered being temporary in nature.
Market value of Equity Mutual Funds is considered on NAV basis.
v) INVENTORIES
Inventories are valued at cost or net realizable value, whichever is
lower. However to determine the cost, the following methods are
adopted:-
* Raw Material: Moving weighted average cost.
* Stores and Spares: Moving weighted average cost.
* Work-in-process: Cost of raw material plus appropriate share of
manufacturing expenses and other relevant overheads.
* Finished Goods: Cost of raw material plus conversion costs, packing
cost and other overheads incurred to bring the inventories to their
present condition and location.
* Wastage and rejections: At net realizable value.
vi) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
All the indirect expenses incurred during construction period upto the
date of commencement of commercial production will be capitalized on
various categories of fixed assets on proportionate bases.
vii) RETIREMENT BENEFITS
a) Gratuity
The Company has taken a Group Gratuity Policy from LIC of India to
discharge its liability of Gratuity. The calculation of premium under
the policy is made on the basis of actuarial valuation done by LIC.
b) Provident Fund
Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and is charged to Profit and Loss account.
viii) FOREIGN EXCHANGE TRANSACTIONS
a) Gain or loss on foreign exchange transactions which are relating to
fixed assets acquired from a country outside India are adjusted in the
cost of relevant fixed asset. Other gains or losses on foreign exchange
transactions are recognized in the Profit & Loss Account. Monetary
assets and liabilities other than those covered by forward contracts
have been valued at the exchange rates prevailing at the close of the
financial year
b) In respect of forward contracts, forward premium or discount arising
at the inception of forward contract, any profit/loss arising on
cancellation renewal of such contracts and exchange difference on such
contracts if pertaining to fixed assets acquired from a country outside
India only are adjusted in the cost of relevant fixed asset. Other
premiums/discounts at inception of contracts and profit/loss on
cancellation/renewal of contracts are recognized in profit & loss
account in the year in which exchange rates change.
ix) EXCISE DUTY
Excise duty payable on finished goods, if any, is accounted for on
clearance of goods from the factory. Cenvat in respect of excise duty
paid on raw material, stores and capital goods is taken, if any, in
accordance with the Cenvat Credit Rules 2004 as amended.
x) WARRANTY CLAIMS
As per the nature of business of the company, the question of warranty
claims does not arise. The routine claims on account of quality or
quantity logged with the company other than those which are disputed
one, are accounted for as and when accepted by the company.
xi) ACCOUNTING FOR TAXES ON INCOME
The accounting treatment followed for taxes on income is to provide for
Current Tax and Deferred Tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for a period.
Deferred Tax is the tax effect of timing differences.
xii) IMPAIRMENT OF ASSETS
At each Balance Sheet date, an assessment is made whether any
indication exists that an asset has been impaired. If any such
indication exists, an impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in the books of accounts.
xiii) BORROWING COST
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
cost of relevant fixed asset. Other borrowing costs are recognized as
an expense in the period in which they are incurred.
xiv) GOVERNMENT GRANTS/SUBSIDY
Government grants/subsidies are recognized, when there is a reasonable
assurance that the company will comply with the conditions attached to
them and the grants/subsidy will be received. The government
grants/subsidy received for specific asset is reduce from the cost of
asset.
xv) PROVISION AND CONTIGENT LIABILITIES
a) Provisions are recognized for liabilities that can be measured by
using a substantial degree of estimation, if:
* the company has a present obligation as a result of past event.
* a probable outflow of resources embodying economic benefits is
expected to settle the obligation and
* the amount of the obligation can be reliably estimated.
b) Contingent Liability is disclosed in case of :
* a present obligation arising from a past event when it is not
probable that an outflow of resources embodying economic benefits will
be required to settle the obligation or
* a possible obligation, unless the probability of outflow in
settlement is remote.
Mar 31, 2012
I) ACCOUNTING CONVENTION
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the accounting standards referred to in
Section 211(3C) of the Companies Act, 1956 and other relevant
provisions of the said Act.
ii) REVENUE RECOGNITION
a) Sale of Goods: Sale of goods is recognized at the point of dispatch
of finished goods to the customers. Sales value is inclusive of excise
duty wherever applicable paid on the clearance of finished goods.
b) Exports Benefits: Revenue in respect of exports benefits being DEPB
/ Duty Drawback Scheme is recognized on post export bases.
c) Dividend Income: Dividend income is recognized when the Company's
right to receive payment is established.
d) Investment Income: Profit/loss arising on sale of investments is
considered at the time of sale/redemption.
e) Interest Income: Interest income is recognized on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
iii) FIXED ASSETS AND DEPRECIATION
Tangible assets: - Tangible assets are stated at cost less accumulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses. Depreciation is charged on
Straight Line bases as per the rates specified in Schedule - XIV of the
Companies Act, 1956. Assets below Rs. 5000/- are depreciated at rare of
100%.
Intangible Assets: - Intangible assets are stated at cost less
accumulated amount of amortization. Such asset are amortized on
Straight Line Bases on the estimated useful life.
iv) INVESTMENTS
Long term investments are stated at cost. Diminution in value of
investments, if any has not been considered being temporary in nature.
Market value of Equity Mutual Funds is considered on NAV basis.
v) INVENTORIES
Inventories are valued at cost or net realizable value, whichever is
lower. However to determine the cost, the following methods are
adopted: -
- Raw Material: Moving weighted average cost.
- Stores and Spares: Moving weighted average cost.
- Work-in-process: Cost of raw material plus appropriate share of
manufacturing expenses and other relevant overheads.
- Finished Goods: Cost of raw material plus conversion costs, packing
cost and other overheads incurred to bring the inventories to their
present condition and location.
- Wastage and rejections: At net realizable value.
vi) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
All the indirect expenses incurred during construction period upto the
date of commencement of commercial production will be capitalized on
various categories of fixed assets on proportionate bases.
vii) RETIREMENT BENEFITS
a) Gratuity
The Company has taken a Group Gratuity Policy from LIC of India to
discharge its liability of Gratuity. The calculation of premium under
the policy is made on the basis of actuarial valuation done by LIC.
b) Provident Fund
Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and is charged to Profit and Loss account.
viii) FOREIGN EXCHANGE TRANSACTIONS
Gain or loss on foreign exchange transactions which are relating to
fixed assets acquired from a country outside India are adjusted in the
cost of relevant fixed asset. Other gains or losses on foreign exchange
transactions are recognized in the Profit & Loss Account. Monetary
assets and liabilities other than those covered by forward contracts
have been valued at the exchange rates prevailing at the close of the
financial year.
In respect of forward contracts, forward premium or discount arising at
the inception of forward contract, any profit/loss arising on
cancellation renewal of such contracts and exchange difference on such
contracts if pertaining to fixed assets acquired from a country outside
India only are adjusted in the cost of relevant fixed asset. Other
premiums/discounts at inception of contracts and profit/loss on
cancellation/renewal of contracts are recognized in profit & loss
account in the year in which exchange rates change.
ix) EXCISE DUTY
Excise duty payable on finished goods, if any, is accounted for on
clearance of goods from the factory. Cenvat in respect of excise duty
paid on raw material, stores and capital goods is taken, if any, in
accordance with the Cenvat Credit Rules 2004 as amended.
x) WARRANTY CLAIMS
As per the nature of business of the company, the question of warranty
claims does not arise. The routine claims on account of quality or
quantity logged with the company other than those which are disputed
one, are accounted for as and when accepted by the company.
xi) ACCOUNTING FOR TAXES ON INCOME
The accounting treatment followed for taxes on income is to provide for
Current Tax and Deferred Tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for a period.
Deferred Tax is the tax effect of timing differences.
xii) IMPAIRMENT OF ASSETS
At each Balance Sheet date, an assessment is made whether any
indication exists that an asset has been impaired. If any such
indication exists, an impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in the books of accounts.
xiii) BORROWING COST
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
cost of relevant fixed asset. Other borrowing costs are recognized as
an expense in the period in which they are incurred
xiv) GOVERNMENT GRANTS / SUBSIDY
Government grants/subsidies are recognized, when there is a reasonable
assurance that the company will comply with the conditions attached to
them and the grants/subsidy will be received. The government
grants/subsidy received for specific asset is reduce from the cost of
asset
xv) PROVISION AND CONTIGENT LIABILITIES
a) Provisions are recognized for liabilities that can be measured by
using a substantial degree of estimation, if :
- the company has a present obligation as a result of past event
- a probable outflow of resources embodying economic benefits is
expected to settle the obligation and
- the amount of the obligation can be reliably estimated.
b) Contingent Liability is disclosed in case of :
- a present obligation arising from a past event when it is not
probable that an outflow of resources embodying economic benefits will
be required to settle the obligation or
- a possible obligation, unless the probability of outflow in
settlement is remote.
Mar 31, 2011
I) ACCOUNTING CONVENTION
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the accounting standards referred to in
Section 211(3C) of the Companies Act, 1956 and other relevant
provisions of the said Act.
ii) REVENUE RECOGNITION:
a) Sale of Goods: Sale of goods is recognized at the point of dispatch
of finished goods to the customers. Sales value is inclusive of excise
duty wherever applicable paid on the clearance of finished goods.
b) Exports Benefits: Revenue in respect of exports benefits being DEPB
/ Duty Drawback Scheme is recognized on post export bases.
c) Dividend Income: Dividend income is recognized when the Company's
right to receive payment is established.
d) Investment Income: Profit/loss arising on sale of investments is
considered at the time of sale/redemption.
e) Interest Income: Interest income is recognized on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
iii) FIXED ASSETS AND DEPRECIATION
Tangible assets: - Tangible assets are stated at cost less accumulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses. Depreciation is charged on
Straight Line bases as per the rates specified in Schedule - XIV of the
Companies Act, 1956. Assets below Rs.5000/- are depreciated at rate of
100%.
Intangible Assets: - Intangible assets are stated at cost less
accumulated amount of amortization. Such asset are amortized on
Straight Line Bases on the estimated useful life.
iv) INVESTMENTS
Long term investments are stated at cost. Diminution in value of
investments, if any has not been considered being temporary in nature.
Market value of Equity Mutual Funds is considered on NAV basis.
v) INVENTORIES
Inventories are valued at cost or net realizable value, whichever is
lower. However to determine the cost, the following methods are
adopted: -
Raw Material: Moving weighted average cost.
Stores and Spares: Moving weighted average cost.
Work-in-process: Cost of raw material plus appropriate share of
manufacturing expenses and other relevant overheads.
Finished Goods: Cost of raw material plus conversion costs, packing
cost and other overheads incurred to bring the inventories to their
present condition and location.
Wastage and rejections: At net realizable value.
vi) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
In respect of new unit, the expenditure incurred during construction
period up to the date of balance sheet is shown as under installation /
pre-operative expenses, pending capitalization of fixed assets.
vii) RETIREMENT BENEFITS
a) Gratuity
The Company has taken a Group Gratuity Policy from LIC of India to
discharge its liability of Gratuity. The calculation of premium under
the policy is made on the basis of actuarial valuation done by LIC.
b) Provident Fund
Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and is charged to Profit and Loss account.
viii) FORIEGN EXCHANGE TRANSACTIONS
Gain or loss on foreign exchange transactions which are relating to
fixed assets acquired from a country outside India are adjusted in the
cost of relevant fixed asset. Other gains or losses on foreign exchange
transactions are recognized in the Profit & Loss Account. Monetary
assets and liabilities other than those covered by forward contracts
have been valued at the exchange rates prevailing at the close of the
financial year.
In respect of forward contracts, forward premium or discount arising at
the inception of forward contract, any profit/loss arising on
cancellation renewal of such contracts and exchange difference on such
contracts if pertaining to fixed assets acquired from a country outside
India only are adjusted in the cost of relevant fixed asset. Other
premiums/discounts at inception of contracts and profit/loss on
cancellation/renewal of contracts are recognized in profit & loss
account in the year in which exchange rates change.
ix) EXCISE DUTY
Excise duty payable on finished goods, if any, is accounted for on
clearance of goods from the factory. Cenvat in respect of excise duty
paid on raw material, stores and capital goods is taken, if any, in
accordance with the Cenvat Credit Rules 2004 as amended.
x) WARRANTY CLAIMS
As per the nature of business of the company, the question of warranty
claims does not arise. The routine claims on account of quality or
quantity logged with the company other than those which are disputed
one, are accounted for as and when accepted by the company.
xi) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
All the indirect expenses incurred during construction period upto the
date of commencement of commercial production will be capitalized on
various categories of fixed assets on proportionate bases.
xii) ACCOUNTING FOR TAXES ON INCOME
The accounting treatment followed for taxes on income is to provide for
Current Tax and Deferred Tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for a period.
Deferred Tax is the tax effect of timing differences.
xiii) IMPAIRMENT OF ASSETS
At each Balance Sheet date, an assessment is made whether any
indication exists that an asset has been impaired. If any such
indication exists, an impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in the books of accounts.
xiv)BORROWING COST
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
cost of relevant fixed asset. Other borrowing costs are recognized as
an expense in the period in which they are incurred.
xv) GOVERNMENT GRANTS / SUBSIDY:
Government grants/subsidies are recognized, when there is a reasonable
assurance that the company will comply with the conditions attached to
them and the grants/subsidy will be received. The government grants/
subsidy received for specific asset is reduced from the cost of the
asset.
xvi)PROVISION AND CONTIGENT LIABILITIES
a) Provisions are recognized for liabilities that can be measured by
using a substantial degree of estimation, if :
- the company has a present obligation as a result of past event.
- a probable outflow of resources embodying economic benefits is
expected to settle the obligation and
- the amount of the obligation can be reliably estimated.
b) Contingent Liability is disclosed in case of :
- a present obligation arising from a past event when it is not
probable that an outflow of resources embodying economic benefits will
be required to settle the obligation or
- a possible obligation, unless the probability of outflow in
settlement is remote.
Mar 31, 2010
I) ACCOUNTING CONVENTION
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the accounting standards referred to in
Section 211(3C) of the Companies Act, 1956 and other relevant
provisions of the said Act
ii) REVENUE RECOGNITION:
a) Dividend Income: Dividend income is recognized when the Companys
right to receive payment is established.
b) Investment Income: Profit / loss arising on sale of investments is
considered at the time of sale/redemption.
c) Interest Income: Interest income is recognized on a time proportion
basis taking into account the amount outstanding and the rate
applicable.
iii) FIXED ASSETS AND DEPRECIATION
Tangible assets: - Tangible assets are stated at cost less accumulated
depreciation. Cost of acquisition is inclusive of freight, duties,
taxes and other incidental expenses. Depreciation is charged on
Straight Line bases as per the rates specified in Schedule - XIV of the
Companies Act, 1956.
Intangible Assets: - The Company is not having any in-tangible assets.
iv) INVESTMENTS
Long term investments are stated at cost. Diminution in value of
investments, if any has not been considered being temporary in nature.
Market value of Equity Mutual Funds is considered on NAV basis.
v ) INVENTORIES
The company is in the initial stage of putting up of BOPP unit. The
company is not having any type of inventory in the beginning as well as
at the end of the year except imported raw materials as at the end of
the year which are valued at cost. All the expenses such as clearing
charges, freight, insurance etc. incurred up the place of factory
premises are included in the cost of raw materials as reduced by any
amount of taxes (if any), the credit of which are allowed under the
provisions of relevant act.
v i ) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
In respect of new unit, the expenditure incurred during construction
period up to the date of balance sheet is shown as under installation /
pre-operative expenses, pending capitalization of fixed assets.
vii) RETIREMENT BENEFITS
a) Gratuity
The Company has taken a Group Gratuity Policy from LIC of India to
discharge its liability of Gratuity. The calculation of premium under
the policy is made on the basis of actuarial valuation done by LIC.
b) Provident Fund
Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and is charged to Profit and Loss account.
viii) FORIEGN EXCHANGE TRANSACTIONS
The company is in the process of setting up of BOPP unit. All the gain
or loss on foreign exchange transactions are relating to fixed assets
acquired from a country outside India and are adjusted in the cost of
relevant fixed asset. Monetary assets and liabilities other than those
covered by forward contracts have been valued at the exchange rates
prevailing at the close of the financial year.
In respect of forward contracts, forward premium or discount arising at
the inception of forward contract, any profit/loss arising on
cancellation renewal of such contracts and exchange difference on such
contracts are pertaining to fixed assets acquired from a country
outside India only and are adjusted in the cost of relevant fixed
asset.
ix) EXCISE DUTY
Cenvat in respect of excise duty paid on raw material, stores and
capital goods is taken, if any, in accordance with the Cenvat Credit
Rules 2004 as amended.
x ) EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
The company is in the process of setting up of its BOPP plant. All the
indirect expenses incurred during construction period upto the date of
commencement of commercial production will be capitalized on Various
categories of fixed assets on proportionate bases.
xi) ACCOUNTING FOR TAXES ON INCOME
The accounting treatment followed for taxes on income is to provide for
Current Tax and Deferred Tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for a period.
Deferred Tax is the tax effect of timing differences.
xii) IMPAIRMENT OF ASSETS
At each Balance Sheet date, an assessment is made whether any
indication exists that an asset has been impaired. If any such
indication exists, an impairment loss i.e. the amount by which the
carrying amount of an asset exceeds its recoverable amount is provided
in the books of accounts.
xiii) BORROWING COST
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are shown as
pre-operative expenses, and will be capitalized as part of the cost of
the asset upon completion of the project.
xiv) PROVISION AND CONTIGENT LIABILITIES
a) Provisions are recognized for liabilities that can be measured by
using a substantial degree of estimation, if :
- the company has a present obligation as a result of past event.
- a probable outflow of resources embodying economic benefits is
expected to settle the obligation and
- the amount of the obligation can be reliably estimated.
b) Contingent Liability is disclosed in case of :
- a present obligation arising from a past event when it is not
probable that an outflow of resources embodying economic benefits will
be required to settle the obligation or
- a possible obligation, unless the probability of outflow in
settlement is remote.