Mar 31, 2018
1) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:
A) Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act , 2013 (âActâ) (to the extent notified) and guidelines issued by the Securities Exchange of India [SEBI]. The Ind AS as prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) amendment rules 2016.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
B) use Of Estimates and Judgments
The preparation of financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in accordance with the requirement of the respective accounting standard. Changes in estimates are reflected in the financial statements in the period in which changes are made and , if material, their effects are disclosed in the notes to the Financial Statements.
C) Other Intangible Assets
Intangible Assets are stated at cost less accumulated amortisation and impairment. Intangible Assets are amortized over their respective individual estimated useful lives on a straight line basis from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence, demand, competition and other economic factors. Amortisation methods and useful lives are reviewed periodically including at each financial year end.
D) Capital work-in-progress and intangible assets under development
Capital work-in-progress/intangible assets under development are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing cost
E) Financial Instruments
a) Initial Recognition
The Company recognizes the Financial asset and Financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted at trade date.
b) Subsequent Measurement
a) Non Derivative Financial Instrument
i) Financial Assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.
iii) Financial assets at fair value through profit or loss
A financial asset, which is not classified in any of the above categories, is subsequently fair valued through profit or loss.
iv) Financial Liabilities
Financial liabilities are subsequently carried at amortized cost using effective interest method, except for contingent consideration recognized in a business combination, which is subsequently measured at fair value through profit or loss. For trade and other payables maturing within one year from the Balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
v) Investment in Subsidiaries
Investments are stated at cost in accordance with Ind AS 27- Separate Financial statements.
vi) Offsetting of financial Instruments
Financial assets and financial liabilities are off set and the net amount is reported in financial statements if there is a currently enforceable legal right to off set the recognized amounts and there is an intention to settle on a net basis to realize the assets and settle the liabilities simultaneously.
F) Accounting of provisions, contingent liabilities, and contingent assets
A provision is recognized if as a result of past event, the company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is possible obligation or present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote no provision or disclosure is made.
G) Income Taxes Provision For Taxation
Provision is made for income tax annually based on the tax Liability computed after considering Tax allowance and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.
DEFERRED TAX
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred tax asset in the nature of unabsorbed depreciation and loses are recognized only if there is virtual certainty of realization.
H) Revenue Recognition
Revenue from sale of products are recognized on dispatch of goods to customers net of Sales Tax, GST, discounts, rebates for price adjustments, rejections and shortage in transit.
I) Foreign Currency Functional Currency
The functional currency of the company is Indian Rupee. These financial statements are presented in Indian rupees.
TRANSACTIONS AND TRANSLATIONS
Foreign currency denominated monetary assets and liabilities are translated into the relevant functional currency at the exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such transactions are included in the Statement of Profit and Loss. Non-monetary assets and Non - monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non - monetary assets and non - monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.
Revenue, Expenses and Cash flow items denominated in foreign currencies are translated into relevant functional currencies using the exchange rate in effect on the date of the transaction.
J) Retirement benefits
The companyâs liability towards retirement benefits in the form of provident fund is full funded and charged to revenue expenditure. The company contribute to the employee provident fund maintained under the employeeâs provident fund scheme run by the central government. The gratuity liability is provided and charged off as revenue expenditure based on actuarial valuation. The company has subscribed to the group gratuity scheme policy of LIC of India. Un availed encashable earned leave is accounted on accrual basis.
K) Earnings Per Share
Basic earnings per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period.
Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
L) Cash flow Statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing, and financing activities of the Company are segregated.
M) 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. The company depreciates the property, plant and equipment over their estimated useful lives using the straight line method.
Depreciation methods, useful lives and residual values are reviewed periodically, including 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 the non current assets and the cost of the assets not ready not ready for 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. Repairs and Maintenance costs are recognized in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon the sale or retirement of the asset and the resultant gains or losses are recognized in the statement of Profit and Loss.
N) Recent Accounting Pronouncement
Appendix B to Ind AS 21, Foreign Currency Transactions and Advance Consideration: On March 28, 2018 the Ministry of Corporate Affairs (the MCA) notified the companies (Indian Accounting Standards) Amendment Rules 2018 containing Appendix B to Ind AS 21, Foreign Currency Transactions and Advance Consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or Income, when an entity has received or paid advance consideration in a foreign currency.
The amendment will come into force from April 1, 2018. The company has evaluated the effect of this on the financial statements and the impact is not material.
Ind AS 115, Revenue from Contract with Customers: On March 28, 2018 the MCA notified the Ind AS 115. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Further, the disclosure requirement of the new standard is for an entity to disclose sufficient information to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.
The standard permits an entity can elect to adopt the new standard in a new variety of ways, including retrospectively with or without optional practical expedient or through cumulative effect adjustment as of the start of the first period for which it applies the new standard.
O) Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and Cash Equivalents consists of balances with banks which are unrestricted for withdrawal and usage.
P) Inventories
Valuations of inventories are at the lower of cost and net realizable value. Cost of the inventories are computed on a weighted average / FIFO basis
Raw materials including stores and spares valued at lower of cost and net realizable value
Work in progress valued at lower of cost and net realizable value.
Work in progress includes costs incurred up to the stage of completion.
Finished goods valued at lower of cost and net realizable value.
Finished goods include cost of conversion and cost incurred for bringing the same to location.
Q) Segment Reporting Policies
Identification of segments:
The Companyâs operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.
Intersegment Transfers:
The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices.
Mar 31, 2015
1. SYSTEM OF ACCOUNTING
The financial statements are prepared in accordance with Indian
Generally accepted Accounting principles( GAAP) under the historic cost
convention on the accrual basis except for some financial instruments
which are measured at fair value. GAAP comprises of accounting
standards notified under Accounting Standards prescribed under Section
133 of the Companies Act, 2013 ('Act') read with Rule 7 of the
Companies (Accounts) Rules, 2014, the provisions of the Act (to the
extent notified) and other accounting principles generally accepted in
India. Accounting policies have been consistently applied except where
a newly issued accounting standard is initially adopted or a revision
to an existing accounting standard requires a change in the accounting
policy hitherto in use.
2. REVENUE RECOGNITION
Revenue from sale of products are recognized on dispatch of goods to
customers and are net of sales tax, discounts, rebates for price
adjustments, rejections and shortage in transit.
3. FIXED ASSETS
Fixed assets are stated at cost, less accumulated depreciation. Cost
prices include purchase price, duties, levies and any other cost
relating to the acquisition and installation of the assets. Interest
and financing charges on borrowed funds, if any, used to fiancé the
acquisition of fixed assets, until the date the assets are ready for
use are capitalized and included in the cost of the asset.
4. DEPRECIATION
During the year, the Company has adopted estimated useful life of fixed
assets as stipulated by Schedule II to the Companies Act, 2013.
Accordingly, in respect of fixed assets acquired during the year,
depreciation / amortization is charged on a straight line basis so as
to write of the cost of the assets over the useful lives and for the
assets acquired prior to April 01, 2014, the carrying amount as on
April 01, 2014 is depreciated over the remaining useful life and
depreciation on account of assets whose useful life is already
exhausted on April 01, 2014 has been adjusted against opening balance
of reserves and surplus.
5. INVENTORIES
Valuations of inventories are at the lower of cost and net realizable
value. Cost of inventories are computed on a weighted average/FIFO
basis.
6. RETIREMENT BENEFITS TO EMPLOYEES
The company's liability towards retirement benefit in the form of
provident fund is fully funded and charged to revenue expenditure. The
company contributes to the employee provident fund maintained under the
employees provident fund scheme run by the Central Government. The
gratuity liability is provided and charged of as revenue expenditure
based on actuarial valuation. The company has subscribed to the group
gratuity scheme policy of LIC of India. Unveiled encaseable earned
leave is accounted on accrual basis.
7. INVESTMENTS
The investments are stated at cost.
8. DEFERRED TAX
Deferred Tax Asset in the nature of unabsorbed depreciation and losses
are recognized only if there is virtual certainty of realization. Other
deferred tax assets are recognized if there is reasonable certainty of
realization.
9. FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of transaction. Foreign currency of assets &
liabilities and realized gains and losses on foreign exchange
transactions, other than those relating to fixed assets are recognized
in the profit and loss account. Exchange difference arising on
liabilities incurred for the purpose of acquiring fixed assets are
adjusted in the carrying value of the respective fixed assets.
10. PROVISION FOR TAXATION
Provision is made for Income Tax annually based on the Tax Liability
computed after considering Tax allowances and exemptions. Provisions
are recorded when it is estimated that a liability due to disallowances
or other matters is probable
11. EARNINGS PER SHARE
The basic earnings per share is computed by dividing net profit after
tax by the number of equity shares outstanding for the period.
Mar 31, 2014
1. SYSTEM OF ACCOUNTING
The financial statements are prepared in accordance with Indian
Generally accepted Accounting principles (GAAP) under the historical
cost convention on the accrual basis except for some financial
instruments which are measured at fair value. GAAP comprises of
accounting standards notified under section 211 (3C) of the Companies
Act, 1956 ("the 1956 Act") [which continues to be applicable in
respect of section 133 of the Companies Act, 2013 ("the 2013 Act") in
terms of general circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs] and the relevant provision of the 1956
Act/2013 Act as applicable. Accounting policies have been consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to existing accounting standards requires a
change in the accounting policy hitherto in use.
2. REVENUE RECOGNITION
Revenue from sale of products are recognized on dispatch of goods to
customers and are net of sales tax, discounts, rebates for price
adjustments, rejections and shortage in transit.
3. FIXED ASSETS
Fixed assets are stated at cost, less accumulated depreciation. Cost
prices include purchase price, duties, levies and any other cost
relating to the acquisition and installation of the assets. Interest
and financing charges on borrowed funds, if any, used to finance the
acquisition of fixed assets, until the date the assets are ready for
use are capitalized and included in the cost of the asset.
4. DEPRECIATION
Depreciation is provided on the straight line method at the rates
specified under schedule XIV of the Companies Act, 1956 and on prorata
basis on the additions made during the year.
5. INVENTORIES
Valuation of inventories are at the lower of cost and net realizable
value. Cost of inventories are computed on a weighted average/FIFO
basis
Raw Materials including stores and spares
Valued at lower of Cost and net realizable value
Work-in-Progress
Valued at lower of cost and net realizable value
Work in process includes costs incurred up to the stage of completion
Finished Goods
Valued at lower of cost and net realizable value
Finished goods include cost of conversion and cost incurred for
bringing the same to the location or storage of completion
6. RETIREMENT BENEFITS TO EMPLOYEES
The company''s liability towards retirement benefit in the form of
provident fund is fully funded and charged to revenue expenditure. The
company contributes to the employee provident fund maintained under the
employees provident fund scheme run by the Central Government. The
gratuity liability is provided and charged off as revenue expenditure
based on actuarial valuation. The company has subscribed to the group
gratuity scheme policy of LIC of India. Unavailed encashable earned
leave is accounted on accrual basis.
7. INVESTMENTS
The investments are stated at cost.
8. DEFERRED TAX
Deferred Tax Asset in the nature of unabsorbed depreciation and losses
are recognized only if there is virtual certainty of realization. Other
deferred tax assets are recognized if there is reasonable certainty of
realization.
9. FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of transaction. Foreign currency of assets &
liabilities and realized gains and losses on foreign exchange
transactions, other than those relating to fixed assets are recognized
in the profit and loss account. Exchange difference arising on
liabilities incurred for the purpose of acquiring fixed assets are
adjusted in the carrying value of the respective fixed assets.
10. PROVISION FOR TAXATION
Provision is made for Income Tax annually based on the Tax Liability
computed after considering Tax allowances and exemptions. Provisions
are recorded when it is estimated that a liability due to disallowances
or other matters is probable
11. EARNINGS PER SHARE
The basic earnings per share is computed by dividing net profit after
tax by the number of equity shares outstanding for the period.
NOTE 4A - DETAILS OF REPAYMENT OF TERM LOANS
1) During January 2014, the company has borrowed INR 7,75,00,000 from
HDFC Bank Limited. The interest rate is fixed @ 14% PA and is secured
by Specified movable Fixed Assets. The loan is repayable in 8 quarterly
installments of INR 96,87,500 each. The first installment is slated for
April 2015 and the final installment is on January 2017,
2) In March 2009, Opto Circuits India Limited had borrowed US$
7,000,000 from DBS Bank Limited. The interest rate was fixed @ 6.60%
P.A. and is secured by specified movable fixed assets The loan is
repayble in 8 half yearly installment of US$ 777,700 and one final
balance installment of US$ 778,400. The first installment was on March
2010 and final installment was slated for March 2014 but as on 31 Marh
2014 the last 2 installment is still unpaid .
3) Opto Circuits India Ltd has borrowed Vehicle loans from Axis Bank
Limited. The current outstanding balance with Axis Bank Limited is Rs.
46,406 which will be repaid in monthly installments. The final
installment of Axis Bank is slated for July 2014.
NOTE 5A - SHORT TERM BORROWINGS
Notes:-
5.1. A ) Company has working capital facilities with State Bank of
India.Hypothecation of Company''s present and future movable
fixed assets and current assets like stocks, raw materials, semi
finished and finished goods, book debts, receivables, outstanding
monies, bills, rights, stores, components, furniture and fittings;
other movables, plant and machinery, vehicles and assets to be
purchased out of bank finance. Pari Passu First Charge on the assets of
the company. Equitable Mortgage on all the piece and parcel of land
known as Sy. No. 62 part within the village limits of Doddathogur,
Begur Hobli, Bangalore District containing by admeasuring 1.50 acre.
5.1. B) Company has obtained loans from DBS Bank Limited Hypothecation
of the whole of the present and future stocks of raw materials, work in
process, finished goods, semi finished goods, book debts, outstanding
monies receivables, claims, bills, contracts, engagements, securities,
investments, rights and assets belonging to the company, by way of
first charge.
5.1. C) Company has working capital facilities with Indusind Bank
Limited. These facilities are repayable on demand,secured by pari-
passu charge on Stocks and Book Debts of the Company.
5.1. D) Company has working capital facilities with Standard Chartered
Bank by hypothecation of the whole of the present and future stocks of
raw materials, work in process and finished goods, book debts,
outstanding monies, receivables, claims, bills, etc belonging to the
company by way of paripassu charge. The company has also given the
additional security of immovable property of its step down subsidiary
M/s. Altron Hotels Private Limited comprising of all that piece and
parcel of land measuring 0.90 Acres (3682.61 Smts) bearing V.P Khata
No. 309, from out of land bearing Plot No. 24, Sy.No.14 of Konapaana
Agrahara, Begur Hobli, Bangalore South Taluk 560100 together with
buildings and structures standing thereon with all easement right,
common right ingress and egress thereon.
5.1. E) Company has working facilities with Yes Bank Limited by
hypothecation of Pari Passu charge on Current Assets of the borrower to
cover loan amount plus costs, expenses, interest and other incidentals.
Hypothecation of the whole of the Current Assets of raw material, semi
finished & finished goods, stores and spares including consumable
stores and spares relating to plant and machinery and other movables
both present and future stored at Plot No.83, Electronics city,
Bangalore South or wherever else in India and bills receivables and
Book debts belonging to the Company.
5.1. F) Company has working capital facilities with The Bank of Nova
Scotia by hypothecation of the whole of the present and future stocks
of raw materials, work in process and finished goods, book debts,
outstanding monies, receivables, claims, bills, etc belonging to the
company by way of paripassu charge. The company has also given the
security of immovable property of its Subsidiary Opto Infrastructure
Limited comprising on all that piece and parcel of land known as Plot
No''s 2A1, 2A2, 2A3, 2A3(P3), 2B1, 2B2, 2C1, 2C2, 3,4,5,6,7,8,9 and 10
in survey numbers in the Hassan Sector Specific Hard Ware Zone
Industrial area within the limits of villages Doddabasavanahalli and
Chikkabasavanahalli, Shantigrama Hobli, Hassan Taluk, Hassan dist.
measuring an total extent of 250 acres.
5.2) The short term secured borrowings of Rs. 82,457.95 Lacs includes
Cash credit facility of Rs. 14,545.51 Lacs with interest rate in the
range of 11% p.a to 13% p.a, Preshipment Credit in Foreign Currency and
bill discounting/Postshipment credit in Foreign currency facility of Rs.
31,911.84 Lacs with interest rate in the range of 4% p.a to 9% p.a
,Overdraft of Rs.36,000.59 Lacs with interest rate of 8 to 19.5%.
5.3) The short term interest free unsecured loans of Rs. 2,503.12 Lacs is
from the Directors of the Company, Rs. 1,144.64 Lacs from the
Subsidiaries director. The company has also borrowed Rs. 260.00 Lacs from
the private finance with the interest rate of 15% to 24% which are
repayable on short term basis.
5.4) Scotia bank has issued winding up notice dated 6th March 2014 for
recovery of outstanding dues of Rs. 119 crores as on 31st March 2014. The
Managment is making efforts to negotiate and settle with said bank for
longer repayment. If the Bank does not agree, the managment will
realise the debtors and will settle the account with said bank.
5.5) DBS Bank Limited, State Bank India has suspended charging the
interest for the year ending 31st March 2014. However the company has
provided for the interest in the books of accounts.
Mar 31, 2013
1. SYSTEM OF ACCOUNTING
The Financial statements have been prepared to comply in all material
respects with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India (''ICAI'') and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention on
an accrual basis. The accounting policies have been consistently
applied by the Company and are consistent with those applied in the
previous year.
2. REVENUE RECOGNITION
Revenue from sale of products are recognized on dispatch of goods to
customers and are net of sales tax, discounts, rebates for price
adjustments, rejections and shortage in transit.
3. FIXED ASSETS
Fixed assets are stated at cost, less accumulated depreciation. Cost
prices include purchase price, duties, levies and any other cost
relating to the acquisition and installation of the assets. Interest
and financing charges on borrowed funds, if any, used to finance the
acquisition of fixed assets, until the date the assets are ready for
use are capitalized and included in the cost of the asset.
4. DEPRECIATION
Depreciation is provided on the straight line method at the rates
specified under schedule XIV of the Companies Act, 1956 and on prorata
basis on the additions made during the year.
5. INVENTORIES
Valuation of inventories is at the lower of cost or market value as
certified by the management. Cost of inventories are computed on a
weighted average/FIFO basis
Raw Materials including stores and spares
Valued at lower of Cost and net realizable value
Work-in-Progress
Valued at lower of cost and net realizable value
Work in process includes costs incurred up to the stage of completion
Finished Goods
Valued at lower of cost and net realizable value
Finished goods include cost of conversion and cost incurred for
bringing the same to the location or storage of completion
6. RETIREMENT BENEFITS TO EMPLOYEES
The company''s liability towards retirement benefit in the form of
provident fund is fully funded and charged to revenue expenditure. The
company contributes to the employee provident fund maintained under the
employees provident fund scheme run by the Central Government. The
gratuity liability is provided and charged of as revenue expenditure
based on actuarial valuation. The company has subscribed to the group
gratuity scheme policy of LIC of India. Unavailed encashable earned
leave is accounted on accrual basis.
7. INVESTMENTS
The investments are stated at cost.
8. DEFERRED TAX
Deferred Tax Asset in the nature of unabsorbed depreciation and losses
are recognized only if there is virtual certainty of realization. Other
deferred tax assets are recognized if there is reasonable certainty of
realization. Tax expenses towards deferred tax asset for UNIT II has
been recognized and tax liability for the SEZ UNIT do not arise as the
the income is covered under section 10AA of the Income Tax Act, 1961.
The effect on Deferred Tax Asset & Liabilities of a change in rates is
recognized in the income statement in the period of enactment of the
change.
9. FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of transaction. Foreign currency of assets &
liabilities and realized gains and losses on foreign exchange
transactions, other than those relating to fixed assets are recognized
in the profit and loss account. Exchange difference arising on
liabilities incurred for the purpose of acquiring fixed assets are
adjusted in the carrying value of the respective fixed assets.
10. PROVISION FOR TAXATION AND MAT
Provision is made for Income Tax annually based on the Tax Liability
computed after considering Tax allowances and exemptions. Provisions
are recorded when it is estimated that a liability due to disallowances
or other matters is probable. The company is not charging of MAT on SEZ
profit, as the MAT payment is in the nature of advance tax which will
be set of against liability arising in future years. The unclaimable
MAT amount will be written of as expenditure in the year in which carry
forward/adjustment is not permissible.
11. EARNINGS PER SHARE
The basic earnings per share is computed by dividing net profit after
tax by the number of equity shares outstanding for the period.
Mar 31, 2012
1. SYSTEM OF ACCOUNTING
The financial statements have been prepared to comply in all material
respects with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India ('ICAI') and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the Company
and are consistent with those applied in the previous year.
2. REVENUE RECOGNITION
Revenue from sale of products are recognized on dispatch of goods to
customers and are net of sales tax, discounts, rebates for price
adjustments, rejections and shortage in transit.
3. FIXED ASSETS
Fixed assets are stated at cost, less accumulated depreciation. Cost
prices include purchase price, duties, levies and any other cost
relating to the acquisition and installation of the assets. Interest
and fnancing charges on borrowed funds, if any, used to finance the
acquisition of fixed assets, until the date the assets are ready for use
are capitalized and included in the cost of the asset.
4. DEPRECIATION
Depreciation is provided on the straight line method at the rates
specified under schedule xIV of the Companies Act, 1956 and on prorata
basis on the additions made during the year.
5. INVENTORIES
Valuation of inventories is at the lower of cost or market value as
certified by the management. Cost of inventories are computed on a
weighted average/FIFO basis
Raw Materials including stores and spares
Valued at lower of Cost and net realizable value
Work-in-Progress
Valued at lower of cost and net realizable value
Work in process includes costs incurred up to the stage of completion
Finished Goods
Valued at lower of cost and net realizable value
Finished goods include cost of conversion and cost incurred for
bringing the same to the location or storage of completion
6. RETIREMENT BENEFITS TO EMPLOYEES
The Company's liability towards retirement Benefit in the form of
provident fund is fully funded and charged to revenue expenditure. The
Company contributes to the employee provident fund maintained under the
employees provident fund scheme run by the Central Government. The
gratuity liability is provided and charged of as revenue expenditure
based on actuarial valuation. The Company has subscribed to the group
gratuity scheme policy of LIC of India. Unavailed encashable earned
leave is accounted on accrual basis.
7. INVESTMENTS
The investments are stated at cost.
8. DEFERRED TAx
Deferred Tax Asset in the nature of unabsorbed depreciation and losses
are recognized only if there is virtual certainty of realization. Other
deferred tax assets are recognized if there is reasonable certainty of
realization. Tax expenses towards deferred tax asset for UNIT II has
been recognized and tax liability for the SEZ UNIT do not arise as the
income is covered under section 10AA of the Income Tax Act, 1961. The
effect on deferred tax asset & liabilities of a change in rates is
recognized in the income statement in the period of enactment of the
change.
9. FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of transaction. Foreign currency of assets &
liabilities and realized gains and losses on foreign exchange
transactions, other than those relating to fixed assets are recognized
in the profit and loss account. Exchange difference arising on
liabilities incurred for the purpose of acquiring fixed assets are
adjusted in the carrying value of the respective fixed assets.
10. PROVISION FOR TAXATION AND MAT Provision is made for Income Tax
annually based on the Tax Liability computed after considering Tax
allowances and exemptions. Provisions are recorded when it is estimated
that a liability due to disallowances or other matters is probable.
The company is not charging of MAT on SEZ profit, which will be set of
against liability arising in future years. In the event of non set of
due to the effect of not carrying forward, it will be written of in that
financial year.
11. EARNINGS PER SHARE
The basic earnings per share is computed by dividing net profit after
tax by the number of equity shares outstanding for the period.
Mar 31, 2011
1. System of Accounting the financial statements have been prepared to
comply in all material respects with the mandatory accounting standards
issued by the institute of Chartered accountants of india ('iCai') and
the relevant provisions of the Companies act, 1956. the financial
statements have been prepared under the historical cost convention on
an accrual basis. the accounting policies have been consistently
applied by the Company and are consistent with those applied in the
previous year.
2. Revenue recognition revenue from sale of products are recognized on
dispatch of goods to customers and are net of sales tax, discounts,
rebates for price adjustments, rejections and shortages in transit.
3. Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Cost
price includes purchase price, duties, levies and any other costs
relating to the acquisition and installation of the assets. interest
and financing charges on borrowed funds, if any, used to finance the
acquisition of fixed assets, until the date the assets are ready for use
are capitalized and included in the cost of the asset.
4. Depreciation
Depreciation is provided on the straight line method at the rates
specifed under schedule xiV of the Companies act, 1956 and on prorata
basis on the additions made during the year.
5. Inventories
Valuation of inventories is at the lower of cost or market value as
certified by the management. Cost of inventories are computed on a
weighted average/FiFO basis.
raw materials including stores and spares
Valued at lower of cost and net realizable value
Work in process
Valued at lower of cost and net realizable value. Work in process
includes costs incurred up to the stage of completion
Finished Goods
Valued at lower of cost and net realizable value. Finished goods
include cost of conversion and cost incurred for bringing the same to
the loca- tion or storage of completion
6. Retirement benefits To Employees
The Company's liability towards retirement benefit in the form of
provident fund is fully funded and charged to revenue expenditure. the
Company contributes to the employee provident fund maintained under the
employees provident fund scheme run by the Central Government. the
gratuity liability is provided and charged off as revenue expenditure
based on actuarial valuation. the Company has subscribed to the group
gratuity scheme policy of LiC of india. unavailed encashable earned
leave is accounted on accrual basis.
7. Investments
The investments are stated at cost.
8. Deferred tax
Deferred tax asset in the nature of unabsorbed depreciation and losses
are recognized only if there is virtual certainty of realization.
Other deferred tax assets are recognized if there is reasonable
certainty of realization. tax expenses towards deferred tax asset for
unit ii has been recognized and tax liability for the seZ unit do not
arise as the income is covered under section 10aa of the income tax
act, 1961. the effect on deferred tax asset & liabilities of a change
in rates is recognized in the income statement in the period of
enactment of the change.
9. Foreign Currency Transactions
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of transaction. Foreign currency of assets &
liabilities and realized gains and losses on foreign exchange
transactions, other than those relating to fixed assets are recognized
in the profit and loss account. exchange difference arising on
liabilities incurred for the purpose of acquiring fixed assets are
adjusted in the carrying value of the respective fixed assets.
10. Provisions For Taxation
A provision is made for income tax annually based on the tax liability
computed after considering tax allowances and exemptions. provisions
are recorded when it is estimated that a liability due to disallowances
or other matters is probable. minimum alternate tax (mat) paid in
accordance with the tax laws, which gives rise to future economic
benefits in the form of adjustment of future income tax liability is
considered as asset if there is convincing evidence that the Company
will pay normal tax after the tax holiday period.
11. Earnings Per Share
The basic earnings per share is computed by dividing net profit after
tax by the number of equity shares outstanding for the period.
Mar 31, 2010
1. System of Accounting
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting standards issued by the
Institute of Chartered Accountants of India (ÃICAIÃ) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the company
and are consistent with those applied in the previous year.
2. Revenue Recognition
Revenue from sale of products are recognized on dispatch of goods to
customers and are net of sales tax, discounts, rebates for price
adjustments, rejections and shortages in transit.
3. Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Cost in
prices includes purchase price, duties, levies and any other cost
relating to the acquisition and installation of the assets. Interest
and financing charges on borrowed funds, if any, used to finance the
acquisition of fixed assets, until the date the assets are ready for
use are capitalized and included in the cost of the asset.
4. Depreciation
Depreciation is provided on the straight line method at the rates
specified under schedule xIV of the Companies Act, 1956 and on prorata
basis on the additions made during the year.
5. Inventories
Valuation of inventories is at the lower of cost or market value as
certified by the management.
Raw Materials including stores and spares
Valued at lower of cost and net realizable value
Work in Process
Valued at lower of cost and net realizable value
Work in process includes costs incurred up to the stage of completion
Finished Goods
Valued at lower of cost and net realizable value
Finished goods include cost of conversion and cost incurred to bring
the same to the loca- tion or storage of completion
Cost of inventories is computed on a weighted average/FIFO basis
6. Retirement benefits to employees
The companyÃs liability towards retirement benefit in the form of
provident fund is fully funded and charged to revenue expen- diture.
The company contributes to the employee provided fund maintained under
the employees provident scheme run by the Central Government. The
gratuity liability is provided and charged off as revenue expenditure
based on actuarial valuation. The company has subscribed to the group
gratuity scheme policy of LIC of India.
7. Investments
The investments are stated at cost.
8. Deferred Tax
Deferred Tax Asset in the nature of unabsorbed depreciation and loses
are recognized only if there is virtual certainty of realiza- tion.
Other Deferred Tax Assets are recognized if there is reasonable
certainty of realization. Tax expenses towards Deferred Tax
Asset for UNIT II has been recognized and tax liability for the SEZ
UNIT do not arise as the the income is covered under section 10AA of
the Income Tax Act, 1961. The effect on Deferred Tax Asset &
Liabilities of a change in rates is recognized in the income statement
in the period of enactment of the change.
9. Foreign Currency Transactions
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of transaction. Foreign currency of assets &
liabilities and realized gains and losses on foreign exchange
transactions, other than those relating to fixed assets are recognized
in the profit and loss account. Exchange difference arising on
liabilities incurred for the purpose of acquiring fixed assets are
adjusted in the carrying value of the respective fixed assets.
10. Provisions for Taxation
A provision is made for Income Tax annually based on the tax liability
computed after considering tax allowances and exemp- tions. Provisions
are recorded when it is estimated that a liability due to disallowances
or other matters is probable. Minimum Alternate Tax (MAT) paid in
accordance with the tax laws, which gives rise to future economic
benefits in the form of adjustment of future income tax liability is
considered an asset, if there is convincing evidence that the company
will pay normal tax after the tax holiday period. Accordingly it is
recognized as an asset in the balance sheet when it is probable that
the future economic benefit associated with it, will flow to the
company and the asset can be measured reliably.
11. Earnings per Share
The basic earnings per share is computed by dividing net profit after
tax by the number of equity shares outstanding for the period.
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