Accounting Policies of Paramount Communications Ltd. Company
Mar 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of Measurement
The financial statements have been prepared on accrual basis
and under the historical cost convention except following
which have been measured at fair value:
⢠Certain financial assets and liabilities carried at fair
value or amortised cost,
⢠defined benefit plans - plan assets measured at fair
value,
The gain or loss arising on the disposal or retirement of
an item of property, plant and equipment is determined
as the difference between the sales proceeds and the
carrying amount of the asset and is recognised in the
Statement of Profit and Loss on the date of disposal or
retirement.
Identifiable intangible assets are recognised:
a) when the Company controls the asset,
b) it is probable that future economic benefits attributed
to the asset will flow to the Company
c) the cost of the asset can be reliably measured.
Computer softwareâs are capitalised at the amounts paid to
acquire the respective license for use and are amortised over
the period of license, generally not exceeding five years on
straight line basis. The assetsâ useful lives are reviewed at
each financial year end.
3.4 Impairment of non-current assets
An asset is considered as impaired when at the date of Balance
Sheet there are indications of impairment and the carrying
amount of the asset, or where applicable the cash generating
unit to which the asset belongs exceeds its recoverable
amount (i.e. the higher of the net asset selling price and value
in use).The carrying amount is reduced to the recoverable
amount and the reduction is recognized as an impairment
loss in the Statement of Profit and Loss. The impairment loss
recognized in the prior accounting period is reversed if there
has been a change in the estimate of recoverable amount.
Post impairment, depreciation is provided on the revised
carrying value of the impaired asset over its remaining useful
life.
Cash and cash equivalents includes Cash on hand and at
bank and other short-term highly liquid investments with
original maturities of three months or less that are readily
convertible to a known amount of cash and are subject to
an insignificant risk of changes in value and are held for the
purpose of meeting short-term cash commitments.
For the purpose of the Statement of Cash Flows, cash and
cash equivalents consists of cash and short term deposits,
as defined above, net of outstanding bank overdraft as
they are considered an integral part of the Companyâs cash
management.
Inventories are valued at the lower of cost and net realizable
value except scrap, which is valued at net realizable value. Net
realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and
the estimated costs necessary to make the sale. The cost of
inventories comprises of cost of purchase, cost of conversion
and other costs incurred in bringing the inventories to their
respective present location and condition. Cost is computed
on the weighted average basis.
a) Short term employee benefits are recognized as an
expense in the Statement of Profit and Loss of the year
in which the related services are rendered.
b) Leave encashment being a short term benefit is
accounted for using the Projected Unit Credit Method,
on the basis of actuarial valuations carried out by third
party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or
credited to profit and loss in the period in which they
arise.
c) Contribution to Provident Fund, a defined contribution
plan, is made in accordance with the statute, and is
recognised as an expense in the year in which employees
have rendered services.
d) The cost of providing gratuity, a defined benefit plans,
is determined using the Projected Unit Credit Method,
on the basis of actuarial valuations carried out by third
party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged
or credited to Other Comprehensive Income in the
period in which they arise. Other costs are accounted in
statement of profit and loss.
3.8 Foreign currency reinstatement and translation
(a) Functional and presentation currency
The financial statements have been presented in Indian
Rupees ('' rounded to lacs), which is the Companyâs
functional and presentation currency.
Transactions in foreign currencies are initially recorded
by the Company at rates prevailing at the date of
the transaction. Subsequently monetary items are
translated at closing exchange rates of balance sheet
date and the resulting exchange difference recognised
in profit or loss. Differences arising on settlement of
monetary items are also recognised in profit or loss.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the transaction.
Non-monetary items carried at fair value that are
denominated in foreign currencies are translated at
the exchange rates prevailing at the date when the fair
value was determined. Exchange component of the gain
or loss arising on fair valuation of non-monetary items is
recognised in line with the gain or loss of the item that
gave rise to such exchange difference.
3.9 Financial instruments - initial recognition, subsequent
measurement and impairment
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial Assets are measured at amortised cost or fair value
through Other Comprehensive Income or fair value through
Profit or Loss, depending on its business model for managing
those financial assets and liabilities and the assets and
liabilities contractual cash flow characteristics.
Subsequent measurements of financial assets are dependent
on initial categorisation. For impairment purposes significant
financial assets are tested on an individual basis, other
financial assets are assessed collectively in groups that share
similar credit risk characteristics.
A receivable is classified as a ''trade receivableâ if it is in respect
to the amount due from customers on account of goods
sold or services rendered in the ordinary course of business.
Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost using the effective
interest method, less provision for impairment. For some
trade receivables the Company may obtain security in the
form of guarantee, security deposit or letter of credit which
can be called upon if the counterparty is in default under the
terms of the agreement.
Impairment is made on the expected credit losses, which are
the present value of the cash shortfalls over the expected
life of financial assets. The estimated impairment losses are
recognised in a separate provision for impairment and the
impairment losses are recognised in the Statement of Profit
and Loss within other expenses.
Subsequent changes in assessment of impairment are
recognised in provision for impairment and the change in
impairment losses are recognised in the Statement of Profit
and Loss within other expenses.
For foreign currency trade receivable, impairment is assessed
after reinstatement at closing rates.
Individual receivables which are known to be uncollectible
are written off by reducing the carrying amount of trade
receivable and the amount of the loss is recognised in the
Statement of Profit and Loss within other expenses.
Subsequent recoveries of amounts previously written off are
credited to other Income
Investment in equity securities are initially measured at fair
value. Any subsequent fair value gain or loss is recognized
through Profit or Loss if such investments in equity securities
are held for trading purposes. The fair value gains or
losses of all other equity securities are recognized in Other
Comprehensive Income.
Derivative financial instruments
The Company uses derivative financial instruments, such as
forward currency contracts and interest rate swaps to hedge
its foreign currency risks and interest rate risks. Derivative
financial instruments are initially recognised at fair value
on the date a derivative contract is entered into and are
subsequently re-measured at their fair value at the end of
each period. The method of recognizing the resulting gain
or loss depends on whether the derivative is designated as a
hedging instrument, and if so, on the nature of the item being
hedged. Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss.
Financial Liabilities
At initial recognition, all financial liabilities other than fair
valued through profit and loss are recognised initially at fair
value less transaction costs that are attributable to the issue
of financial liability. Transaction costs of financial liability
carried at fair value through profit or loss is expensed in profit
or loss. However, borrowings, which is likely to be assigned
or negotiated are initially measured at fair value through
profit and loss account. Other borrowings are measured
at amortised cost using the effective interest rate method.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fee or costs that are
an integral part of the Effective rate of interest (EIR). The EIR
amortisation is included in finance costs in the Statement of
Profit and Loss.
A payable is classified as âtrade payableâ if it is in respect of
the amount due on account of goods purchased or services
received in the normal course of business. These amounts
represent liabilities for goods and services provided to
the Company prior to the end of financial year which are
unpaid. Trade and other payables are presented as current
liabilities unless payment is not due within 12 months after
the reporting period. They are recognised initially at their fair
value and subsequently measured at amortised cost using
the effective interest method.
Borrowing costs specifically relating to the acquisition or
construction of qualifying assets that necessarily takes a
substantial period of time to get ready for its intended use
are capitalized (net of income on temporarily deployment
of funds) as part of the cost of such assets. Borrowing costs
consist of interest and other costs that the Company incurs in
connection with the borrowing of funds.
For general borrowing used for the purpose of obtaining a
qualifying asset, the amount of borrowing costs eligible for
capitalization is determined by applying a capitalization rate
to the expenditures on that asset. The capitalization rate is
the weighted average of the borrowing costs applicable to
the borrowings of the Company that are outstanding during
the period, other than borrowings made specifically for
the purpose of obtaining a qualifying asset. The amount of
borrowing costs capitalized during a period does not exceed
the amount of borrowing cost incurred during that period.
All other borrowing costs are expensed in the period in which
they occur.
Income tax expense represents the sum of current and
deferred tax. Tax is recognised in the Statement of Profit and
Loss, except to the extent that it relates to items recognised
directly in equity or other comprehensive income, in such
cases the tax is also recognised directly in equity or in other
comprehensive income. Any subsequent change in direct tax
on items initially recognised in equity or other comprehensive
income is also recognised in equity or other comprehensive
income, such change could be for change in tax rate.
Current tax provision is computed for Income calculated after
considering allowances and exemptions under the provisions
of the applicable Income Tax Laws. Current tax assets and
current tax liabilities are off set, and presented as net.
Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the Balance sheet
and the corresponding tax bases used in the computation
of taxable profit and are accounted for using the liability
method. Deferred tax liabilities are generally recognised for
all taxable temporary differences, and deferred tax assets are
generally recognised for all deductible temporary differences,
carry forward tax losses and allowances to the extent that it is
probable that future taxable profits will be available against
which those deductible temporary differences, carry forward
tax losses and allowances can be utilised. Deferred tax assets
and liabilities are measured at the applicable tax rates.
Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available against
which the temporary differences can be utilised.
Deferred tax assets and deferred tax liabilities are off set, and
presented as net.
The carrying amount of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be
available against which the temporary differences can be
utilised.
3.12 Revenue recognition and Other income
Sale of Goods
Revenue from contracts with customers is recognised
when control of the goods or services are transferred to the
customer. Generally, control is transferred upon shipment of
goods to the customer or when the goods is made available
to the customer, provided transfer of title to the customer
occurs and the Company has not retained any significant
risks of ownership or future obligations with respect to the
goods shipped. Revenue is recognized at the fair value of
consideration received or receivable and represents the
net invoice value of goods supplied to third parties after
deducting discounts, volume rebates and amounts collected
on behalf of third parties (for example taxes and duties
collected on behalf of the government) are recognized either
on delivery or on transfer of significant risk and rewards of
ownership of the goods as per IND AS 115.
Consideration is generally due upon satisfaction of
performance obligations and a receivable is recognised when
it becomes unconditional.
The Company is generally the principal as it typically controls
the goods or services before transferring them to the
customer. Revenue is inclusive of Material returned/ rejected
is accounted for in the year of return/ rejection.
The Company does not adjust short-term advances received
from the customer for the effects of significant financing
component if it is expected at the contract inception that the
promised good or service will be transferred to the customer
within a period of one year.
Revenue from rendering of services is recognised over time
by measuring the progress towards complete satisfaction of
performance obligations at the reporting period.
Interest income is recognised on a time proportion basis
taking into account the amount outstanding and the rate
applicable.
Basic earnings per share are calculated by dividing the net
profit or loss for the year attributable to equity shareholders
(after deducting preference dividends and attributable
taxes) by the weighted average number of equity shares
outstanding during the year. Partly paid equity shares are
treated as a fraction of an equity share to the extent that they
were entitled to participate in dividends relative to a fully
paid equity share during the reporting year.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of all
dilutive potential equity shares, if any.
Mar 31, 2018
1. CORPORATE AND GENERAL INFORMATION
Paramount Communications Limited ("PCL)" or (''''the Company'''') is domiciled and incorporated in India. The Company is engaged in manufacturing business of Wires and Cables.
2. BASIS OF PREPARATION
The Company has adopted IND AS for the financial year beginning on 1st April 2017 with 1st April 2016 as the date of transition. These are the Company''s first annual financial statements prepared complying in all material respects with the Indian Accounting Standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rule 2015 (as amended). The financial statements comply with IND AS notified by Ministry of Corporate Affairs ("MCA"). The Company has consistently applied the accounting policies used in the preparation of its opening IND AS Balance Sheet at 1st April 2016 throughout all periods presented, as if these policies had always been in effect and are covered by IND AS 101 ''''First-time adoption of Indian Accounting Standards''''. The transition was carried out from accounting principles generally accepted in India (''''Indian GAAP'''') which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP on the equity as of 1st April 2016 and 31st March 2017 and on the net profit and cash flows for the year ended 31st March 2017 is disclosed in Note no.49 to these financial statements.
The significant accounting policies used in preparing the financial statements are set out in Note no.3 of the Notes to the Financial Statements.
The preparation of the financial statements requires management to make estimates and assumptions. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years (refer Note no.4 on critical accounting estimates, assumptions and judgments).
3. significant accounting policies
3.1 Basis of Measurement
The financial statements have been prepared on accrual basis and under the historical cost convention except following which have been measured at fair value:
- Certain financial assets and liabilities carried at amortized cost,
- defined benefit plans - plan assets measured at fair value,
- Property, plant and equipment on transition to IND AS (refer note no 5 to these financial statements)
The standalone financial statements are presented in Indian Rupees, which is the Company''s functional and presentation currency and all amounts are rounded to the nearest rupees.
3.2 Property, Plant and Equipment
a) For transition to IND AS, the Company has adopted optional exception under IND AS 101 to measure Property, Plant and Equipment at fair value. (refer note 5) Consequently the fair value has been assumed to be deemed cost of Property, Plant and Equipment on the date of transition. Subsequently Property, Plant and Equipment are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the items.
b) Assets are depreciated to the residual values on a straight-line basis over the estimated useful lives based on technical estimates. Assets residual values and useful lives are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are indicators for review of residual value and useful life. Freehold land is not depreciated. Estimated useful lives of the assets are as follows: accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful life.
3.5 Cash and cash equivalents
Cash and cash equivalents includes Cash on hand and at bank and other short-term highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.
For the purpose of the Statement of Cash Flows, cash and cash equivalents consists of cash and short term deposits, as defined above, net of outstanding bank overdraft as they are considered an integral part of the Company''s cash management.
3.6 Inventories
Inventories are valued at the lower of cost and net realizable value except scrap, which is valued at net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their respective present location and condition. Cost is computed on the weighted average basis.
3.7 Employee benefits
a) Short term employee benefits are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.
b) Leave encashment being a short term benefit is accounted for using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss on the date of disposal or retirement.
3.3 Intangible Assets
Identifiable intangible assets are recognized:
a) when the Company controls the asset,
b) it is probable that future economic benefits attributed to the asset will flow to the Company and
c) the cost of the asset can be reliably measured.
Computer software''s are capitalized at the amounts paid to acquire the respective license for use and are mortised over the period of license, generally not exceeding five years on straight line basis. The assets'' useful lives are reviewed at each financial year end.
3.4 Impairment of non-current assets
An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment and the carrying amount of the asset, or where applicable the cash generating unit to which the asset belongs exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use).The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of Profit and Loss. The impairment loss recognized in the prior of the item that gave rise to such exchange difference.
The Company has availed the exemption available in IND AS 101, to continue capitalization of foreign currency fluctuation on long term foreign currency monetary liabilities outstanding on transition date (refer sub note no 4 of Note No 49 ).
3.9 Financial instruments - initial recognition, subsequent measurement and impairment
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial Assets
Financial Assets are measured at mortised cost or fair value through Other Comprehensive Income or fair value through Profit or Loss, depending on its business model for managing those financial assets and liabilities and the assets and liabilities contractual cash flow characteristics.
Subsequent measurements of financial assets are dependent on initial categorization. For impairment purposes significant financial assets are tested on an individual basis, other financial assets are assessed collectively in groups that share similar credit risk characteristics.
Trade receivables
A receivable is classified as a ''trade receivable'' if it is in respect to the amount due from customers on account of goods sold or services rendered in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at mortised cost using the effective interest method, less provision for impairment. For some trade receivables the Company may obtain security in the form of guarantee, security deposit or letter of credit which can be called upon if the counterparty is in default under the terms of the agreement.
I impairment is made on the expected credit losses, which are the present value of the cash shortfalls over or credited to profit and loss in the period in which they arise.
c) Contribution to Provident Fund, a defined contribution plan, is made in accordance with the statute, and is recognized as an expense in the year in which employees have rendered services.
d) The cost of providing gratuity, a defined benefit plans, is determined using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to Other Comprehensive Income in the period in which they arise. Other costs are accounted in statement of profit and loss.
3.8 Foreign currency reinstatement and translation
(a) Functional and presentation currency
The financial statements have been presented in Indian Rupees (''), which is the Company''s functional and presentation currency.
(b) Transactions and balances
Transactions in foreign currencies are initially recorded by the Company at rates prevailing at the date of the transaction. Subsequently monetary items are translated at closing exchange rates of balance sheet date and the resulting exchange difference recognized in profit or loss. Differences arising on settlement of monetary items are also recognized in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the transaction. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the exchange rates prevailing at the date when the fair value was determined. Exchange component of the gain or loss arising on fair valuation of non-monetary items is recognized in line with the gain or loss amortization is included in finance costs in the Statement of Profit and Loss.
Trade and other payables
A payable is classified as ''trade payable'' if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at mortised cost using the effective interest method.
3.10 Borrowing costs
Borrowing costs specifically relating to the acquisition or construction of qualifying assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized (net of income on temporarily deployment of funds) as part of the cost of such assets. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.
For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period does not exceed the amount of borrowing cost incurred during that period.
All other borrowing costs are expensed in the period in which they occur.
3.11 Taxation
I come tax expense represents the sum of current and deferred tax (including MAT). Tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized directly in the expected life of financial assets. The estimated impairment losses are recognized in a separate provision for impairment and the impairment losses are recognized in the Statement of Profit and Loss within other expenses.
Subsequent changes in assessment of impairment are recognized in provision for impairment and the change in impairment losses are recognized in the Statement of Profit and Loss within other expenses.
For foreign currency trade receivable, impairment is assessed after reinstatement at closing rates.
Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognized in the Statement of Profit and Loss within other expenses.
Subsequent recoveries of amounts previously written off are credited to other Income.
Investment in equity shares
I investment in equity securities are initially measured at fair value. Any subsequent fair value gain or loss is recognized through Profit or Loss if such investments in equity securities are held for trading purposes. The fair value gains or losses of all other equity securities are recognized in Other Comprehensive Income.
Financial Liabilities
At initial recognition, all financial liabilities other than fair valued through profit and loss are recognized initially at fair value less transaction costs that are attributable to the issue of financial liability. Transaction costs of financial liability carried at fair value through profit or loss is expensed in profit or loss. However, borrowings, which is likely to be assigned or negotiated are initially measured at fair value through profit and loss account. Other borrowings are measured at mortised cost using the effective interest rate method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an integral part of the Effective rate of interest (EIR). The EIR same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.
3.12 Revenue recognition and Other income
Sale of Goods
Revenue is recognized at the fair value of consideration received or receivable and represents the net invoice value of goods supplied to third parties after deducting discounts and volume rebates are recognized either on delivery or on transfer of significant risk and rewards of ownership of the goods. Revenue is inclusive of excise duty. Material returned/ rejected is accounted for in the year of return/ rejection.
Interest
I interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
3.13 Recent accounting development
Standards issued but not yet effective:
In AS 115 - Revenue from Contracts with Customers
In March 2018, the Ministry of Corporate Affairs had notified In AS 115 (Revenue from Contracts with Customers) which would be applicable for accounting periods beginning on or after 1st April 2018. This Standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. Revenue is recognized when a customer obtains control of a promised good or service. The standard replaces In AS 18 Revenue and In AS 11 Construction contracts and related appendices.
The Company is in the process of assessing the detailed potential impact of In AS 115, Revenue from Contracts with Customer on its financial statements and related disclosures. Presently, the Company is not able to reasonably estimate the impact that application of In AS 115 is expected to have on its financial statements.
equity or other comprehensive income, in such cases the tax is also recognized directly in equity or in other comprehensive income. Any subsequent change in direct tax on items initially recognized in equity or other comprehensive income is also recognized in equity or other comprehensive income, such change could be for change in tax rate.
Current tax provision is computed for Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws. Current tax assets and current tax liabilities are off set, and presented as net.
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilized. Deferred tax assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set, and presented as net.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which the temporary differences can be utilized.
Minimum Alternative Tax (MAT) is applicable to the Company. Credit of MAT is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the MAT credit becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the profit and loss account and shown as MAT credit entitlement. The Company reviews the recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.
Contingencies
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.
3.16 Operating Lease
An operating lease is a lease other than a finance lease. Leases in which a significant portion of the risks and rewards of ownership are retained by the lesser are classified as operating leases. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned. Payments/receipts under operating lease are recorded in the Statement of Profit and Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases.
3.17 Current /non-current classification
The Company presents assets and liabilities in statement of financial position based on current/ non-current classification.
The Company has presented non-current assets and current assets before equity, non-current liabilities and current liabilities in accordance with Schedule III,
Appendix B to In AS 21 Foreign currency transactions and advance consideration
In March,2018, the Ministry of Corporate Affairs (MCA) has notified Appendix B to In AS 21, Foreign currency transactions and advance consideration which would be applicable for accounting periods beginning on or after 1stApril 2018. The appendix clarifies how to determine the date of transaction for the exchange rate to be used on initial recognition of a related asset, expense or income where an entity pays or receives consideration in advance for foreign currency-denominated contracts.
Presently the Company is not able to reasonably estimate the impact of the application of the appendix B on the financial statements.
3.14 Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares, if any.
3.15 Provisions and contingencies
Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is property, plant and equipment. Management believes that the assigned useful lives and residual value are reasonable.
On transition to IND AS, the Company has adopted optional exemption under IND AS 101 for fair valuation of property, plant and equipment, impact of fair valuation is provided in Note no 49 , subsequent to fair valuation depreciation has been charged on fair valued amount less estimated salvage value. On transition to IND AS, the Company has revisited useful life of various categories of assets, impact of revision in estimate of useful life of various assets is provided in Note no 5. Property, plant and equipment also represent a significant proportion of the asset base of the Company. Therefore, the estimates and assumptions made to determine their carrying value and related depreciation are critical to the Company''s financial position and performance.
(b) Income taxes
Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial statements.
(c) Contingencies
Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
(d) Allowance for uncollected accounts receivable and advances.
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not to be collectible.
I impairment is made on the expected credit losses, which are the present value of the cash shortfall over the expected life of the financial assets.
Division II of Companies Act, 2013 notified by MCA. An asset is classified as current when it is:
a) Expected to be realized or intended to be sold or consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realized within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when:
a) It is expected to be settled in normal operating cycle,
b) It is held primarily for the purpose of trading,
c) I t is due to be settled within twelve months after the reporting period, or
d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Mar 31, 2017
a Basis of Preparation
i. In compliance with the accounting standards referred to in Section 133 and the other relevant provisions of the Companies Act, 2013 to the extent applicable, the company follows the accrual system of accounting in general and the historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP), except where otherwise stated.
ii. The preparation of accounting statements in conformity with GAAP requires the management to make assumption and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statement and the amounts of income and expenses during the period reported under the financial statements. Any revision to the accounting estimates are recognized prospectively when revised.
iii. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.
b Accounting Estimates
i. The preparation of financial statements, in conformity with generally accepted accounting principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and the results of operation during the reported period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from estimates which are recognized in the period in which they are determined.
c Fixed Assets, intangible assets and capital work-in-progress
i. Construction period expenses directly attributable to projects are capitalized. Financing cost during the construction period on loans raised for/allocated to qualifying projects is capitalized. Financing cost incurred on general borrowings used for projects is capitalized. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the computer hardware is being capitalized along with the cost of the hardware. Any subsequent acquisition/upgradation of software is being capitalized as an asset.
d Depreciation and Amortization
i. The cost of capitalized software is amortized over a period of five years from the date of its acquisition.
ii. Depreciation on Fixed Assets is calculated on Straight line method in accordance with the provisions of Schedule II of the Companies Act, 2013 keeping 5% of cost as residual value. The useful lives of fixed assets as defined in the Part C of Schedule II of the Companies Act, 2013 has been taken for all tangible assets other than plant & machineries, which useful lives is estimated 20 years based on internal assessment by the management and independent technical evaluation carried out by external valuers. Addition/deletion in the cost of the fixed assets due to exchange fluctuation in long term foreign currency monetary items arising due to difference in exchange rate vis a vis initial recording and reporting date are depreciated over the balance life of the assets.
iii. No write off is being made in respect of leasehold land, as the lease is a long lease.
e Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
f Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realizable value.
- Raw materials are valued at lower of cost or net realizable value.
- Work-in-Progress is valued at lower of cost or net releasable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realizable value.
ii. Cost of Raw Material is determined on weighted average basis. Cost of Packing Materials and Stores & Spares is determined on weighted average basis. Work-in-Progress includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
g Foreign Currency Transactions
i. Foreign currency transactions remaining unsettled at the year end are translated at year end rate. Premium in respect of forward contracts is accounted over the period of contract. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.
ii. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
iii. Exchange difference arising on reporting of long term foreign currency monetary items:
â In so far as they relate to the acquisition of a depreciable capital assets are adjusted in the cost of assets.
â In other cases are accumulated in a âForeign Currency Monetary Item Translation Difference Account (FCMITDA)'' and are amortized over period of foreign currency monetary item or up to 31st March, 2020, whichever is earlier.
iv. Non monetary foreign currency items are carried at cost.
h Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax/VAT
ii. Other items of revenue are recognized in accordance with the Accounting Standard on âRevenue Recognition'' (AS-9). Accordingly, wherever there are uncertainties in the ascertainment/ realization of income, the same is not accounted for.
i Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. CENVAT credit is accounted on accrual basis on purchases of materials and capital goods.
j Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being paid to a fund maintained by SBI life insurance company Limited under Group Gratuity Scheme. Difference between the fund balance and accrued liability at the end of the year based on actuarial valuation is charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave compensatory & encashment, a terminal employee benefit, being defined benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an expense in the profit and loss account of the year in which the related service is rendered.
k Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from Revaluation Reserve to General Reserve.
ii. Project subsidy from State Government is credited to Capital Reserve.
l Preliminary Expenses
Public Issue expenditure and premium on redemption of FCCBs / Preference Shares are being written off against securities premium.
m Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
n Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the assets in prior years.
o Contingent Liabilities
Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.
Mar 31, 2016
1. SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation
i. In compliance with the accounting standards referred to in Section 133 and the other relevant provisions of the Companies Act, 2013 to the extent applicable, the company follows the accrual system of accounting in general and the historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP),except where otherwise stated.
ii. The preparation of accounting statements in conformity with GAAP requires the management to make assumption and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statement and the amounts of income and expenses during the period reported under the financial statements. Any revision to the accounting estimates are recognized prospectively when revised.
iii. All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act,2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.
b Fixed Assets, intangible assets and capital work-in-progress
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to qualifying projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the computer hardware is being capitalised along with the cost of the hardware. Any subsequent acquisition/upgradation of software is being capitalised as an asset.
c Depreciation and Amortisation
i. The cost of capitalised software is amortised over a period of five years from the date of its acquisition.
ii. Depreciation on Fixed Assets is calculated on Straight line method in accordance with the provisions of Schedule II of the Companies Act, 2013 keeping 5% of cost as residual value. The useful lives of fixed assets as defined in the Part C of Schedule II of the Companies Act, 2013 has been taken for all tangible assets other than plant & machineries, which useful lives is estimated 20 years based on internal assessment by the management and independent technical evaluation carried out by external valuers. Addition/deletion in the cost of the fixed assets due to exchange fluctuation in long term foreign currency monetary items arising due to difference in exchange rate vis a vis initial recording and reporting date are depreciated over the balance life of the assets.
iii. No write off is being made in respect of leasehold land, as the lease is a long lease. d Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
e Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work-in-Progress is valued at lower of cost or net realiasable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Cost of Packing Materials and Stores & Spares is determined on weighted average basis .Work-in-Progress includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
f Foreign Currency Transactions
i. Foreign currency transactions remaining unsettled at the year end are translated at year end rate. Premium in respect of forward contracts is accounted over the period of contract. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.
ii. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
iii. Exchange difference arising on reporting of long term foreign currency monetary items:
â In so far as they relate to the acquisition of a depreciable capital assets are adjusted in the cost of assets.
â In other cases are accumulated in a âForeign Currency Monetary Item Translation Difference Account (FCMITDA)â and are amortised over period of foreign currency monetary item or up to 31st March,2020, whichever is earlier.
iv. Non monetary foreign currency items are carried at cost.
g Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax/VAT.
ii. Other items of revenue are recognized in accordance with the Accounting Standard on âRevenue Recognitionâ (AS-9). Accordingly, wherever there are uncertainties in the ascertainment/ realization of income, the same is not accounted for.
h Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. CENVAT credit is accounted on accrual basis on purchases of materials and capital goods.
i Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being paid to a fund maintained by SBI life insurance company Limited under Group Gratuity Scheme. Difference between the fund balance and accrued liability at the end of the year based on actuarial valuation is charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave compensatory & encashment, a terminal employee benefit, being defined benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an expense in the profit and loss account of the year in which the related service is rendered.
j Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from Revaluation Reserve to General Reserve.
ii. Project subsidy from State Government is credited to Capital Reserve.
k Preliminary Expenses
Public Issue expenditure and premium on redemption of FCCBs / Preference Shares are being written off against securities premium.
l Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
m Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companyâs fixed assets. If any indication exists, an assetâs recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the assets in prior years.
Mar 31, 2015
A Basis of Preparation
i. In compliance with the accounting standards referred to in Section
133 and the other relevant provisions of the Companies Act, 2013 to the
extent applicable, the company follows the accrual system of accounting
in general and the historical cost convention in accordance with the
Generally Accepted Accounting Principles (GAAP), except where otherwise
stated.
ii. The preparation of accounting statements in conformity with GAAP
requires the management to make assumption and estimates that affect
the reported amounts of assets and liabilities and disclosure of
contingent liabilities as at the date of the financial statement and
the amounts of income and expenses during the period reported under the
financial statements. Any revision to the accounting estimates are
recognised prospectively when revised.
iii. All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current-non current classification of assets
and liabilities.
b Fixed Assets, intangible assets and capital work-in-progress
i. Construction period expenses directly attributable to projects are
capitalised. Financing cost during the construction period on loans
raised for/allocated to qualifying projects is capitalised. Financing
cost incurred on general borrowings used for projects is capitalised.
The amount of such borrowing is determined after setting off the amount
of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or
valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the
computer hardware is being capitalised along with the cost of the
hardware. Any subsequent acquisition/upgradation of software is being
capitalised as an asset.
c Depreciation and Amortisation
i. The cost of capitalised software is amortised over a period of five
years from the date of its acquisition.
ii. Depreciation on Fixed Assets is calculated on Straight line method
in accordance with the provisions of Schedule II of the Companies Act,
2013 keeping 5% of cost as residual value. The useful life of fixed
assets as defined in the Part C of Schedule II of the Companies Act,
2013 has been taken for all tangible assets other than plant &
machineries, which useful life is estimated 20 years based on internal
assessment by the management and independent technical evaluation
carried out by external valuers. Addition/deletion in the cost of the
fixed assets due to exchange fluctuation in long term foreign currency
monetary items arising due to difference in exchange rate vis a vis
initial recording and reporting date are depreciated over the balance
life of the assets.
iii. Fixed Assets costing upto Rs.5,000/- each are fully depreciated in
the year of its acquisition
iv. No write off is being made in respect of leasehold land, as the
lease is a long lease.
d Investments
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if, such decline is
other than temporary in the opinion of the management. Current
investments are stated at lower of cost or market value.
e Inventories
i. Inventories are valued as follows :
* Finished Goods are valued at lower of cost or net realisable value.
* Raw materials are valued at lower of cost or net realisable value.
* Work-in-Progress is valued at lower of cost or net realiasable value.
* Packing materials, Stores & Spares are valued at cost.
* Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Cost
of Packing Materials and Stores & Spares is determined on weighted
average basis .Work-in-Progress includes raw material costs and
allocated production overheads on estimated basis. Cost of Finished
Goods is determined by taking derived material costs and other
overheads.
f Foreign Currency Transactions
i. Foreign currency transactions remaining unsettled at the year end
are translated at year end rate. Premium in respect of forward
contracts is accounted over the period of contract. Exchange
differences arising on foreign currency transactions are recognized as
income or expense in the period in which they arise.
ii. Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing on the date of transaction.
iii. Exchange difference arising on reporting of long term foreign
currency monetary items:- Â In so far as they relate to the
acquisition of a depreciable capital assets are adjusted in the cost of
assets.
* In other cases are accumulated in a ''Foreign Currency Monetary Item
Translation Difference Account (FCMITDA)'' and are amortised over period
of foreign currency monetary item or up to 31st March, 2020, whichever
is earlier.
iv. Non monetary foreign currency items are carried at cost.
g Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to
the customers. Sales are net of returns and include excise duty
wherever directly chargeable from customers, but exclude sales tax/VAT.
ii. Other items of revenue are recognised in accordance with the
Accounting Standard on ''Revenue Recognition'' (AS-9). Accordingly,
wherever there are uncertainties in the ascertainment/ realisation of
income, the same is not accounted for.
h Excise Duty
Excise Duty has been accounted on the basis of both payments made in
respect of goods cleared as also provision made for goods lying in
factory premises. CENVAT credit is accounted on accrual basis on
purchases of materials and capital goods.
i Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being
paid to a fund maintained by SBI life insurance company Limited under
Group Gratuity Scheme. Difference between the fund balance and accrued
liability at the end of the year based on actuarial valuation is
charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave
compensatory & encashment, a terminal employee benefit, being defined
benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an
expense in the profit and loss account of the year in which the related
service is rendered.
j Reserves
i. The difference between depreciation on the revalued value of the
asset and depreciation on their historical cost is transferred from
Revaluation Reserve to General Reserve.
ii. Project subsidy from State Government is credited to Capital
Reserve.
k Preliminary Expenses
Public Issue expenditure and premium on redemption of FCCBs /
Preference Shares are being written off against securities premium.
l Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
m Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor. Reversal of impairment losses recognised in prior
years is recorded when there is an indication that the impairment
losses recognised for the asset no longer exist or have decreased.
However, the increase in carrying amount of an asset due to reversal of
an impairment loss is recognised to the extent it does not exceed the
carrying amount that would have been determined (net of depreciation)
had no impairment loss been recognised for the assets in prior years.
Mar 31, 2014
A Basis of Preparation
i. In compliance with the accounting standards referred to in Section
211(3C) and the other relevant provisions of the Companies Act, 1956 to
the extent applicable, the company follows the accrual system of
accounting in general and the historical cost convention in accordance
with the Generally Accepted Accounting Principles (GAAP), except where
otherwise stated.
ii. The preparation of accounting statements in conformity with GAAP
requires the management to make assumption and estimates that affect
the reported amounts of assets and liabilities and disclosure of
contingent liabilities as at the date of the financial statement and
the amounts of income and expenses during the period reported under the
financial statements. Any revision to the accounting estimates are
recognised prospectively when revised.
iii. All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current-non current classification of assets and
liabilities.
b Fixed Assets, intangible assets and capital work-in-progress
i. Construction period expenses directly attributable to projects are
capitalised. Financing cost during the construction period on loans
raised for/allocated to qualifying projects is capitalised. Financing
cost incurred on general borrowings used for projects is capitalised.
The amount of such borrowing is determined after setting off the amount
of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or
valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the
computer hardware is being capitalised along with the cost of the
hardware. Any subsequent acquisition/upgradation of software is being
capitalised as an asset.
c Depreciation and Amortisation
i. The cost of capitalised software is amortised over a period of five
years from the date of its acquisition.
ii. Depreciation is provided on Written - Down Value Method on
buildings added up to 31st March, 1993 and straight line method on
fixed assets added from 1st April, 1993 in accordance with and at the
rates specified in Schedule XIV of the Companies Act, 1956.
Addition/deletion in the cost of the fixed assets due to exchange
fluctuation in long term foreign currency monetary items arising due to
difference in exchange rate vis a vis initial recording and reporting
date are depreciated over the balance life of the assets.
iii. No write off is being made in respect of leasehold land, as the
lease is a long lease.
d Investments
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if, such decline is
other than temporary in the opinion of the management. Current
investments are stated at lower of cost or market value.
e Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work-in-Progress is valued at lower of cost or net realiasable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Cost
of Packing Materials and Stores & Spares is determined on weighted
average basis. Work-in-Progress includes raw material costs and
allocated production overheads on estimated basis. Cost of Finished
Goods is determined by taking derived material costs and other
overheads.
f Foreign Currency Transactions
i. Foreign currency transactions remaining unsettled at the year end
are translated at year end rate. Premium in respect of forward
contracts is accounted over the period of contract. Exchange
differences arising on foreign currency transactions are recognized as
income or expense in the period in which they arise.
ii. Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing on the date of transaction.
iii. Exchange difference arising on reporting of long term foreign
currency monetary items:- Â In so far as they relate to the acquisition
of a depreciable capital assets are adjusted in the cost of assets.
 In other cases are accumulated in a ''Foreign Currency Monetary Item
Translation Difference Account (FCMITDA)'' and are amortised over period
of foreign currency monetary item or up to 31st March,2020, whichever
is earlier.
iv. Non monetary foreign currency items are carried at cost.
g Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the
customers. Sales are net of returns and include excise duty wherever
directly chargeable from customers, but exclude sales tax/VAT.
ii. Other items of revenue are recognised in accordance with the
Accounting Standard on ''Revenue Recognition'' (AS-9). Accordingly,
wherever there are uncertainties in the ascertainment/ realisation of
income, the same is not accounted for.
h Excise Duty
Excise Duty has been accounted on the basis of both payments made in
respect of goods cleared as also provision made for goods lying in
factory premises. CENVAT credit is accounted on accrual basis on
purchases of materials and capital goods.
i Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being
paid to a fund maintained by SBI life insurance company Limited under
Group Gratuity Scheme. Difference between the fund balance and accrued
liability at the end of the year based on actuarial valuation is
charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave
compensatory & encashment, a terminal employee benefit, being defined
benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an
expense in the profit and loss account of the year in which the related
service is rendered.
j Reserves
i. The difference between depreciation on the revalued value of the
asset and depreciation on their historical cost is transferred from
Revaluation Reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital
Reserve.
k Preliminary Expenses
Public Issue expenditure and premium on redemption of FCCBs/Preference
Shares are being written off against securities premium.
l Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
m Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor. Reversal of impairment losses recognised in prior
years is recorded when there is an indication that the impairment
losses recognised for the asset no longer exist or have decreased.
However, the increase in carrying amount of an asset due to reversal of
an impairment loss is recognised to the extent it does not exceed the
carrying amount that would have been determined (net of depreciation)
had no impairment loss been recognised for the assets in prior years.
Mar 31, 2013
A Basis of Preparation
i. In compliance with the accounting standards referred to in Section
211(3C) and the other relevant provisions of the Companies Act, 1956 to
the extent applicable, the company follows the accrual system of
accounting in general and the historical cost convention in accordance
with the Generally Accepted Accounting Principles(GAAP),except where
otherwise stated.
ii. The preparation of accounting statements in conformity with GAAP
requires the management to make assumption and estimates that affect
the reported amounts of assets and liabilities and disclosure of
contingent liabilities as at the date of the financial statement and
the amounts of income and expenses during the period reported under the
financial statements. Any revision to the accounting estimates are
recognised prospectively when revised.
iii. All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act,1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current-non current classification of assets and
liabilities.
b Fixed Assets, intangible assets and capital work-in-progress
i. Construction period expenses directly attributable to projects are
capitalised. Financing cost during the construction period on loans
raised for/allocated to qualifying projects is capitalised. Financing
cost incurred on general borrowings used for projects is capitalised.
The amount of such borrowing is determined after setting off the amount
of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or
valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the
computer hardware is being capitalised along with the cost of the
hardware. Any subsequent acquisition/upgradation of software is being
capitalised as an asset.
c Depreciation and Amortisation
i. The cost of capitalised software is amortised over a period of five
years from the date of its acquisition.
ii. Depreciation is provided on Written - Down Value Method on
buildings added up to 31st March, 1993 and straight line method on
fixed assets added from 1st April, 1993 in accordance with and at the
rates specified in Schedule XIV of the Companies Act, 1956.
Addition/deletion in the cost of the fixed assets due to exchange
fluctuation in long term foreign currency monetary items arising due to
difference in exchange rate vis a vis initial recording and reporting
date are depreciated over the balance life of the assets.
iii. No write off is being made in respect of leasehold land, as the
lease is a long lease.
d Investments
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if, such decline is
other than temporary in the opinion of the management. Current
investments are stated at lower of cost or market value.
e Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work-in-Progress is valued at lower of cost or net realiasable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Cost
of Packing Materials and Stores & Spares is determined on weighted
average basis. Work-in-Progress includes raw material costs and
allocated production overheads on estimated basis. Cost of Finished
Goods is determined by taking derived material costs and other
overheads.
f Foreign Currency Transactions
i. Foreign currency transactions remaining unsettled at the year end
are translated at year end rate. Premium in respect of forward
contracts is accounted over the period of contract. Exchange
differences arising on foreign currency transactions are recognized as
income or expense in the period in which they arise.
ii. Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing on the date of transaction.
iii. Exchange difference arising on reporting of long term foreign
currency monetary items:- Â In so far as they relate to the acquisition
of a depreciable capital assets are adjusted in the cost of assets.
 In other cases are accumulated in a ''Foreign Currency Monetary Item
Translation Difference Account (FCMITDA)'' and are amortised over period
of foreign currency monetary item or up to 31st March,2020, whichever
is earlier.
iv. Non monetary foreign currency items are carried at cost.
g Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the
customers. Sales are net of returns and include excise duty wherever
directly chargeable from customers, but exclude sales tax/VAT.
ii. Other items of revenue are recognised in accordance with the
Accounting Standard on ''Revenue Recognition'' (AS- 9). Accordingly,
wherever there are uncertainties in the ascertainment/ realisation of
income, the same is not accounted for.
h Excise Duty
Excise Duty has been accounted on the basis of both payments made in
respect of goods cleared as also provision made for goods lying in
factory premises. CENVAT credit is accounted on accrual basis on
purchases of materials and capital goods.
i Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being
paid to a fund maintained by SBI life insurance company Limited under
Group Gratuity Scheme. Difference between the fund balance and accrued
liability at the end of the year based on actuarial valuation is
charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave
compensatory & encashment, a terminal employee benefit, being defined
benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an
expense in the profit and loss account of the year in which the related
service is rendered.
j Reserves
i. The difference between depreciation on the revalued value of the
asset and depreciation on their historical cost is transferred from
Revaluation Reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital
Reserve.
j Preliminary Expenses
Public Issue expenditures are being written off against securities
premium, net of taxes, in the year of issue.
l Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
m Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor. Reversal of impairment losses recognised in prior
years is recorded when there is an indication that the impairment
losses recognised for the asset no longer exist or have decreased.
However, the increase in carrying amount of an asset due to reversal of
an impairment loss is recognised to the extent it does not exceed the
carrying amount that would have been determined (net of depreciation)
had no impairment loss been recognised for the assets in prior years.
Mar 31, 2012
A Basis of Preparation
i. In compliance with the accounting standards referred to in Section 211(3C) and the other relevant provisions of the Companies Act, 1956 to the extent applicable, the company follows the accrual system of accounting in general and the historical cost convention in accordance with the Generally Accepted Accounting Principles(GAAP),except where otherwise stated.
ii. The preparation of accounting statements in conformity with GAAP requires the management to make assumption and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statement and the amounts of income and expenses during the period reported under the financial statements. Any revision to the accounting estimates are recognised prospectively when revised.
iii. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the Companies Act,1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.
b Fixed Assets, intangible assets and capital work-in-progress
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to qualifying projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the computer hardware is being capitalised along with the cost of the hardware. Any subsequent acquisition/upgradation of software is being capitalised as an asset.
c Depreciation and Amortisation
i. The cost of capitalised software is amortised over a period of five years from the date of its acquisition.
ii. Depreciation is provided on Written - Down Value Method on buildings added up to 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956. Addition/deletion in the cost of the fixed assets due to exchange fluctuation in long term foreign currency monetary items arising due to difference in exchange rate vis a vis initial recording and reporting date are depreciated over the balance life of the assets.
iii. No write off is being made in respect of leasehold land, as the lease is a long lease.
d Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
e Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work-in-Progress is valued at lower of cost or net realiasable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Cost of Packing Materials and Stores & Spares is determined on weighted average basis .Work-in-Progress includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
f Foreign Currency Transactions
i. Foreign currency transactions remaining unsettled at the year end are translated at year end rate. Premium in respect of forward contracts is accounted over the period of contract. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.
ii. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
iii. Exchange difference arising on reporting of long term foreign currency monetary items :-
- In so far as they relate to the acquisition of a depreciable capital assets are adjusted in the cost of assets.
- In other cases are accumulated in a 'Foreign Currency Monetary Item Translation Difference Account (FCMITDA)' and are amortised over period of foreign currency monetary item or up to 31st March,2020, whichever is earlier.
iv. Non monetary foreign currency items are carried at cost.
g Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax/VAT.
ii. Other items of revenue are recognised in accordance with the Accounting Standard on 'Revenue Recognition' (AS- 9). Accordingly, wherever there are uncertainties in the ascertainment/ realisation of income, the same is not accounted for.
h Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. CENVAT credit is accounted on accrual basis on purchases of materials and capital goods.
i Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being paid to a fund maintained by SBI life insurance company Limited under Group Gratuity Scheme. Difference between the fund balance and accrued liability at the end of the year based on actuarial valuation is charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave compensatory & encashment, a terminal employee benefit, being defined benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an expense in the profit and loss account of the year in which the related service is rendered.
j Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from Revaluation Reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
k Preliminary Expenses
Public Issue expenditures are being written off against securities premium, net of taxes, in the year of issue.
l Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
m Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2011
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to qualifying projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the computer hardware is being capitalised along with the cost of the hardware. Any subsequent acquisition/upgradation of software is being capitalised as an asset.
iv. The cost of capitalised software is amortised over a period of five years from the date of its acquisition.
v. Depreciation is provided on Written - Down Value Method on buildings added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Addition/deletion in the cost of the fixed assets due to exchange fluctuation in long term foreign currency monetary items arising due to difference in exchange rate vis a vis initial recording and reporting date are depreciated over the balance life of the assets.
vi. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work in process is valued at lower of cost or net realiasable value.
- Packing materials, Stores ACY- Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Cost of Packing materials and stores ACY- spares are determined on weighted average basis .Work- in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign currency transactions remaining unsettled at the yearend are translated at year end rate. Premium in respect of forward contracts is accounted over the period of contract. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.
iii. Exchange difference arising on reporting of long term foreign currency monetary items:-
-In so far as they relate to the acquisition of a depreciable capital assets are adjusted in the cost of assets.
-In other cases are accumulated in a 'Foreign Currency Monetary Item Translation Difference Account (FCMITDA)' and amortised over the balance period of such long term monetary item but not beyond 31st March, 2011.
iv. Non monetary foreign currency items are carried at cost.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax/VAT.
ii. Other items of revenue are recognised in accordance with the Accounting Standard on 'Revenue Recognition' (AS-9). Accordingly, wherever there are uncertainties in the ascertainment/ realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. CENVAT credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being paid to a fund maintained by SBI life insurance company Limited under Group Gratuity Scheme. Difference between the fund balance and accrued liability at the end of the year based on actuarial valuation is charged to Profit ACY- Loss Account.
ii. Liability in respect of employees who are entitled to leave compensatory ACY- encashment, a terminal employee benefit, being defined benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an expense in the profit and loss account of the year in which the related service is rendered.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from Revaluation Reserve to Profit ACY- Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
Public Issue expenditures are being written off against securities premium, net of taxes, in the year of issue.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
l) Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2010
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to qualifying projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the computer hardware is being capitalised along with the cost of the hardware. Any subsequent acquisition/upgradation of software is being capitalised as an asset.
iv. The cost of capitalised software is amortised over a period of five years from the date of its acquisition.
v. Depreciation is provided on Written - Down Value Method on buildings added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Addition/deletion in the cost of the fixed assets due to exchange fluctuation in long term foreign currency monetary items arising due to difference in exchange rate vis a vis initial recording and reporting date are depreciated over the balance life of the assets.
vi. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work in process is valued at lower of cost or net realiasable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work- in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign currency transactions remaining unsettled at the year end are translated at year end rate. Premium in respect of forward contracts is accounted over the period of contract. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.
iii. Exchange difference arising on reporting of long term foreign currency monetary items:-
- In so far as they relate to the acquisition of a depreciable capital assets are adjusted in the cost of assets.
- In other cases are accumulated in a Foreign Currency Monetary Item Translation Difference Account (FCMITDA) and amortised over the balance period of such long term monetary item but not beyond 31st March, 2011.
iv. Non monetary foreign currency items are carried at cost.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax/VAT.
ii. Other items of revenue are recognised in accordance with the Accounting Standard on Revenue Recognition (AS-9). Accordingly, wherever there are uncertainties in the ascertainment/ realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. CENVAT credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being paid to a fund maintained by SBI life insurance company Limited under Group Gratuity Scheme. Difference between the fund balance and accrued liability at the end of the year based on actuarial valuation is charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave compensatory & encashment, a terminal employee benefit, being defined benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an expense in the profit and loss account of the year in which the related service is rendered.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
Public Issue expenditures are being written off against securities premium, net of taxes, in the year of issue.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
l) Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2009
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to qualifying projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the computer hardware is being capitalised along with the cost of the hardware. Any subsequent acquisition/upgradation of software is being capitalised as an asset.
iv. The cost of capitalised software is amortised over a period of five years from the date of its acquisition.
v. Depreciation is provided on Written - Down Value Method on buildings added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Addition/deletion in the cost of the fixed assets due to exchange fluctuation in long term foreign currency monetary items arising due to difference in exchange rate vis a vis initial recording and reporting date are depreciated over the balance life of the assets.
vi. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value. - Raw materials are valued at lower of cost or net realisable value. - Work in process is valued at lower of cost or net realiasable value. - Packing materials, Stores & Spares are valued at cost. - Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work- in-progress includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign currency transactions remaining unsettled at the year end are translated at year end rate. Premium in respect of forward contracts is accounted over the period of contract. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.
iii. Exchange difference arising on reporting of long term foreign currency monetary items:-
- In so far as they relate to the acquisition of a depreciable capital assets are adjusted in the cost of assets.
- In other cases are accumulated in a Foreign Currency Monetary Item Translation Difference Account (FCMITDA) and amortised over the balance period of such long term monetary item but not beyond 31 st March, 2011.
iv. Non monetary foreign currency items are carried at cost.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/ realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. CENVAT credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being paid to a fund maintained by SBI life insurance Company Limited under Group Gratuity Scheme. Difference between the fund balance and accrued liability at the end of the year based on actuarial valuation is charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave compensatory & encashment, a terminal employee benefit, being defined benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an expense in the profit and loss account of the year in which the related service is rendered.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
Public Issue expenditures are being written off against securities premium, net of taxes, in the year of issue.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
I) Impairment of Fixed Assets :
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2008
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to qualifying projects is capitalised Financing cost incurred on general borrowings used (or projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. The cost of any software purchased initially along with the computer hardware is being capitalised along with the cost of the hardware. Any subsequent acquisition/upgradation of software is being capitalised as an asset.
iv The cost of capitalised software is amortised over a period of five years from the date of its acquisition.
v. Depreciation is provided on Written - Down Value Method on buildings added upto 31st March, 1993 and straight line method on fixed assets added from 1 st April, 1993 in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
vi No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work in process is valued at lower of cost or net realisable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work- in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate. Premium in respect of forward contracts is accounted over the period of contract.
iii. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.
iv. Non monetary foreign currency items are carried at cost.
f) Revenue Recognition
i, Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by The Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/ realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Cenvat credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Benefits
i. Liability in respect of Gratuity, a defined benefit plan, is being paid to a fund maintained by SBI life insurance company Limited under Group Gratuity Scheme. Difference between the fund balance and accrued liability at the end of the year based on actuarial valuation is charged to Profit & Loss Account.
ii. Liability in respect of employees who are entitled to leave compensatory & encashment, a terminal employee benefit, being defined benefit plan, is recognized on the basis of actuarial valuation.
iii. Contributions with respect to Provident Fund, is recognized as an expense in the profit and loss account of the year in which the related service is rendered.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
Public Issue expenditures are being written off against securities premium, net of taxes, in the year of issue.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
I) Impairment of Fixed Assets :
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its, recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2007
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. Depreciation is provided on Written - Down Value Method on fixed assets added upto 31 st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
iv. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
- Finished Goods are valued at lower of cost or net realisable value.
- Raw materials are valued at lower of cost or net realisable value.
- Work in process is valued at lower of cost or net realiasable value.
- Packing materials, Stores & Spares are valued at cost.
- Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work- in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate. Premium in respect of forward contracts is accounted over the period of contract.
iii. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which they are adjusted to the carrying cost of such assets.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/ realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Cenvat credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Retirement Benefits
i. Contribution to Gratuity fund is made as per companys scheme and is equivalent to payment made by the said fund to the SBI Life Insurance Company Limited under Group Gratuity Scheme.
ii. Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
i. Preliminary Expenses are written off over a period of ten years.
ii. Public Issue expenditures are being written off against securities premium, net of taxes, in the year of issue.
k) Taxes on income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
I) Impairment of Fixed Assets:
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to therir present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2006
1. SIGNIFICANT ACCOUNTING POLICIES
a) The accounts have been prepared under the historical cost convention except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalized. Financing cost during the construction period on loans raised for/allocated to projects is capitalized. Financing cost incurred on general borrowings used for projects is capitalized. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. Depreciation is provided on Written - Down Value Method on fixed assets added up to 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
iv. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
* Finished Goods are valued at lower of cost or net realisable value.
* Raw materials are valued at lower of cost or net realisable value.
* Work in process is valued at lower of cost or net realiasable value.
* Packing materials, Stores & Spares are valued at cost.
* Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work- in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate. Premium in respect of forward contracts is accounted over the period of contract.
iii. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which they are adjusted to the carrying cost of such assets.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Cenvat credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Retirement Benefits
i. Contribution to Gratuity fund is made as per Company's scheme and is equivalent to payment made by the said fund to the SBI Life Insurance Company Limited under Group Gratuity Scheme. Liability for past services of the Employees in the Company is provided based upon contribution payable by the fund to SBI Life Insurance Company Limited under the aforesaid scheme.
ii. Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
i. Preliminary Expenses are being written off over a period of ten years.
ii. Public Issue expenditure are being written off against share premium over a period of ten years.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
l) Impairment of Fixed Assets :
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2005
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
& Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
Ill. Depreciation is provided on Written - Down Value Method on fixed assets added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
iv. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
* Finished Goods are valued at lower of cost or net realisable value.
* Raw materials are valued at lower of cost or net realisable value.
* Work in process is valued at lower of cost or net realiasable value.
* Packing materials, Stores & Spares are valued at cost.
* Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work-in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate. Premium in respect of forward contracts is accounted over the period of contract.
Ill. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which they are adjusted to the carrying cost of such assets.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Cenvat credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Retirement Benefits & Contribution to Gratuity fund is made as per Companys scheme and is equivalent to payment made by the said fund to the Life Insurance Corporation of India under Group Gratuity Scheme. Liability for past services of the Employees in the Company is provided based upon contribution payable by the fund to LIC under the aforesaid scheme.
ii. Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
I) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
I) Preliminary Expenses
i. Preliminary Expenses are being written off over a period of ten years.
ii. Public Issue expenditure are being written off against share premium over a period of ten years.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
I) Impairment of Fixed Assets :
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the assets in prior years.
Mar 31, 2004
1. SIGNIFICANT ACCOUNTING POLICIES
a) The accounts have been prepared under the historical cost convention except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised. Financing cost incurred on general borrowings used for projects Is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. Depreciation is provided on Written - Down Value Method on fixed assets added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Depreciation on fixed assets-added/disposed Is provided on pro-rata basis with reference to date of addition/disposal.
iv. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) inventories
i. Inventories are valued as follows :
* Finished Goods are valued at lower of cost or net realisable value.
* Raw materials are valued at lower of cost or net realisable value.
* Work in process is valued at lower of cost or net realiasable value.
* Packing materials, Stores & Spares are valued at cost.
* Scrap Is valued at estimated realisable value.
ii. Cost of Raw Material Is determined on weighted average basis. Work-in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and the exchange rate on the date of transaction, such difference having been recognized over the life of the contract.
iii. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which they are adjusted to the carrying cost of such assets.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Cenvat credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Ratirement Benefits
i. Contribution to Gratuity fund is made as per Companys scheme and is equivalent to payment made by the said fund to the Life Insurance Corporation of India under Group Gratuity Scheme. Liability for past services of the Employees in the Company is provided based upon contribution payable by the fund to LIC under the aforesaid scheme.
ii. Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expanses
i. Preliminary Expenses are being written off over a period of ten years.
ii. Public Issue expenditure are being written off against share premium over a period of ten years.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Mar 31, 2003
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. Depreciation is provided on Written - Down Value Method on fixed assets added upto 31 st March, 1993 and straight line method on fixed assets added from 1 st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
iv. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows :
Finished Goods are valued at lower of cost or net realisable value.
Raw materials are valued at lower of cost or net realisable value.
Work in process is valued at lower of cost or net realiasable value.
Packing materials, Stores & Spares are valued.at cost.
Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work- in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and the exchange rate on the date of transaction, such difference having been recognized over the life of the contract.
iii. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which they are adjusted to the carrying cost of such assets.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/ realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Modvat credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Retirement Benefits
i. Contribution to Gratuity fund is made as per Company's scheme and is equivalent to payment made by the said fund to the Life Insurance Corporation of India under Group Gratuity Scheme. Liability for past services of the Employees in the Company is provided'based upon contribution payable by the fund to LIC under the aforesaid scheme.
ii. Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
i. Preliminary Expenses are being written off over a period of ten years.
ii. Public Issue expenditure are being written off against share premium over a period of ten years,
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Mar 31, 2002
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised. Financing cost incurred on general borrowings used for projects is capitalised. The amount of such borrowing is determined after setting off the amount of internal accruals.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. Depreciation is provided on Written-Down Value Method on fixed assets added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
iv. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or market value.
d) Inventories
i. Inventories are valued as follows:
Finished Goods are valued at lower of cost and net realisable value.
Packing materials and Raw materials are valued at lower of cost and net realisable value.
Work in process is valued at lower of cost and net realisable value.
Stores & Spares are valued at cost.
Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work-in-process includes raw material costs and allocated production overheads on estimated basis. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate or at the rates at which foreign currency forward covers have been obtained.
f) Revenue Recognition
i. Sales are accounted for on dispatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Modvat credit is accounted on accrual basis on purchases of materials and capital goods.
h) Employees Retirement Benefits
i. Contribution to Gratuity fund is made as per Companys scheme and is equivalent to payment made by the said fund to the Life Insurance Corporation of India under Group Gratuity Scheme. Liability for past services of the Employees in the Company is provided based upon contribution payable by the fund to LIC under the aforesaid scheme.
ii. Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
i) Reserves
i. The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account,
ii. Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
i. Preliminary Expenses are being written off over a period of ten years.
ii. Public Issue expenditure are being written off against share premium over a period often years.
k) Taxes on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Mar 31, 2001
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i. Construction period expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. Depreciation is provided on Written-Down Value Method on fixed assets added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in schedule XIV of the companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
iv. No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investment
Long terms investment are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management.
d) Inventories
i. Inventories are valued as follows :
* Finished Goods are valued at lower of cost and net realisable value.
* Packing materials and Raw materials are valued at lower of cost and net realisable value.
* Work in process is valued at estimated cost.
* Stores & Spares are valued at cost.
* Scrap is valued at estimated realisable value.
ii. Cost of Raw Material is determined on weighted average basis. Work-in-process includes raw material costs and allocated productions overheads. Cost of Finished Goods is determined by taking derived material costs and other overheads.
e) Foreign Currency Transactions
i. Transaction denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign currency transactions remaining unsetteled at the year end are translated at year end closing rate or at the rates at which foreign currency forward covers have been obtained.
f) Revenue Recognition
i. Sales are accounted for on despatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Instituts of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Modvat credit is accounted on accrual basis on purchases of materials and capital goods.h) Employees Retirement Benefits
i) Contribution to gratuity fund is made as per company's scheme and is equivalent to payment made by the said fund to the Life Insurance Corporation of India under Group Gratuity Scheme Liability for past services of the Employees in the Company is provided based upon contribution payable by the fund to LIC under the aforesaid scheme.
ii) Leave encashment is paid to employees on calendar year basis and charged to Profit & Los Account.
i) Reserves
i) The difference between depreciation on the revalued value of the assets and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii) Project subsidy from the State Government is credited to Capital Reserve.
j) Preliminary Expenses
i) Preliminary Expenses are being written off over a period of ten years.
ii) Public Issue expenditure are being written off against share premium over a period of ten years
Mar 31, 2000
1. SIGNIFICANT ACCOUNTING POLICIES
a) The accounts have been prepared under the historical cost convention except where otherwise stated.
b) Fixed Assets
i) Construction period expenses including administration and supervision expenses directly attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised.
ii) Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii) Depreciation is provided on Written - Down Value Method on fixed assets added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 an accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to date of addition/disposal.
iv) No write off is being made in respect of leasehold land, as the lease is a long lease.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the management.
d) Inventories
i) Inventories are valued as follows :
* Finished Goods are valued at lower of cost and net realisable value.
* Consumable Stores, Packing materials and Raw materials are valued at cost.
* Work in process is valued at estimated cot.
* Scrap is valued at estimated realisable value.
ii) Cost of Raw Material is determined on weighted average basis. Work-in-process includes raw material costs and allocated production overheads. Cost of Finished Goods is determined by taking derived material costs and other production overheads.
e) Foreign Currency Transactions
i) Transaction denomination in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
ii) Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate or the rates at which foreign currency forward covers have been obtained.
f) Revenue Recognition
i) Sales are accounted for on despatch of goods from the factory to the customers. Sales are net of returns and include excise duty wherever directly chargeable from customers, but exclude sales tax.
ii) Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying in factory premises. Modvat credit is accounted on accrual basis on purchases of materials. In case of capital goods, modvat is accounted when asset is put to use.
h) Employees Retirement Benefits
i) Contribution to Gratuity fund is made as per Company's scheme and is equivalent to payment made by the said fund to the Life Insurance Corporation of India under Group Gratuity Scheme. Liability for past services of the Employees in the Company is provided based upon contribution payable by the fund to LIC under the aforesaid scheme.
ii) Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
i) Reserves
i) The difference between deprecation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii) Project subsidy from State Government is credited to Capital Reserve.
j) Preliminary Expenses
i) Preliminary Expenses are being written off over a period of ten years.
ii) Public Issue expenditure are being written off against share premium over a period of ten years.
Mar 31, 1999
A) The accounts have been prepared under the historical cost convention
except where otherwise stated.
b) Fixed Assets
i) Construction period expenses including administration and supervision expenses directly attributable projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised.
ii) Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii) Depreciation is provided on Written - Down Value Method on fixed assets added upto 31st March, 1993 a Straight Line Method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added! disposed is provided on pro-rata basis with reference to month of addition / disposal.
c) Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if, such decline is other than temporary in the opinion of the Management.
d) Inventories
i) Finished Goods are valued at lower of cost or net realisable value.
ii) Consumable Stores, Packing materials and Raw materials are valued at cost.
iii) Work in process is valued at estimated cost.
iv) Scrap is valued at estimated realisable value.
e) Foreign Currency Transactions
i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
ii) Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate when not covered by Forward Contracts.
f) Revenue Recognition
i) Sales are accounted for on despatch of goods from the factory to the customers. Sales are net of return and include Excise duty wherever directly chargeable from customers, but exclude Sales Tax.
ii) Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment realisation of income, the same is not accounted for.
g) Excise Duty
Excise Duty payable on finished goods is accounted for on the clearance of goods from the factory premises. Modvat credit is accounted on accrual basis on purchases of materials. In case of capital goods, modvat is accounted when asset is put to use.
h) Employees / Retirement Benefits
i) Contribution to Gratuity fund is made as per Company's scheme and is equivalent to payment made by the said fund to the Life Insurance Corporation of India under Group Gratuity Scheme. Liability for past services of the Employees in the Company is provided based upon contribution payable by the fund to LIC under the aforesaid scheme.
ii) Leave encashment is paid to employees on calendar year basis and charged to Profit & Loss Account.
i) Reserves
i) The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
ii) Project subsidy from state Government is credited to Capital Reserve.
j) Preliminary Expenses
i) Preliminary Expenses are being written off over a period of ten years.
ii) Public Issue expenditure are being written off against share premium over a period of ten years.
Mar 31, 1998
1. The accounts have been prepared under the historical cost convention except where otherwise stated.
2. Fixed Assets
i. Construction period expenses including administration and supervision expenses attributable to projects are capitalised. Financing cost during the construction period on loans raised for/allocated to projects is capitalised.
ii. Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii. Depreciation is provided on written down value method of fixed assets added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro-rata basis with reference to month of addition/disposal.
3. Investments
Investments are stated at cost.
4. Inventories
i. Finished Goods are valued at lower of cost or net realisable value.
ii. Consumable Stores, Packing materials and Raw materials are valued at cost.
iii. Work in process is valued at estimated cost.
iv. Scrap is valued at estimated realisable value.
5. Foreign Currency Transactions
i. Transaction denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
ii. Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate when not covered by forward contracts.
6. Revenue Recognition
i. Sales are accounted for on despatch of goods from the factory to the customers. Sales are net of return and include Excise duty but exclude Sales Tax.
ii. Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
7. Excise Duty
Excise Duty payable on finished goods is accounted for on the clearance of goods from the factory premises. Modvat credit is accounted on accrual basis on purchases of materials.
8. Employees/Retirement Benefits
i. Gratuity Liability is accounted for on cash basis. The actual liability in respect of gratuity has not been determined.
ii. Leave encashment is paid to employees on calendar year basis. No provision is made for the balance amount.
9. Reserve
The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
10. Preliminary Expenses
i. Preliminary Expenses are being written off over a period of ten years.
ii. Public Issue expenditure are being written off against share premium over a period of ten years.
Mar 31, 1996
The accounts have been prepared under the historical cost convention except where otherwise stated.
Fixed Assets i) Construction period expenses including administration and supervision expenses attributable to projects are capitalised. Financing cost during the construction period on loans raised for allocated to projects is capitalised.
ii) Fixed Assets are stated at cost including allocated costs or valuation less accumulated depreciation.
iii) Depreciation is provided on written down value method of fixed assets added upto 31st March, 1993 and straight line method on fixed assets added from 1st April, 1993 in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added/disposed is provided on pro rata basis with reference to month of addition/disposal.
Investments Investments are stated at cost.
Inventories i) Finished Goods are valued at lower of cost or net realisable value.
ii) Consumable Stores, Packing materials and Raw materials are valued at cost.
iii) Work in process is valued at estimated cost.
iv) Scrap is valued at estimated realisable value.
Foreign Currency Transactions i) Transaction denominated in foreign currencies are recorded at the exchange rate prevailing on the data of transaction.
ii) Foreign Currency transactions remaining unsettled at the year end are translated at year end closing rate when not covered by forward contracts.
Revenue Recognition i) Sales are accounted for on despatch of goods from the factory to the customers. Sales are net of return and include Excise duty but exclude Sales Tax.
ii) Other items of revenue are recognised in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly wherever, there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.
Excise Duty Excise Duty payable on finished goods is accounted for on the clearance of goods from the factory premises. However, this would have no impact on the profit of the company. Modvat credit is accounted on accrual basis on purchases of materials.
Employees/Retirement Benefits i) Gratuity Liability is accounted for on cash basis. The actual liability in respect of gratuity has not been determined.
ii) Leave encashment is paid to employees on calendar year basis. No provision is made for the balance amount.
Reserve The difference between depreciation on the revalued value of the asset and depreciation on their historical cost is transferred from revaluation reserve to Profit & Loss Account.
Preliminary Expenses i) Preliminary Expenses are being written off over a period of ten years.
ii) Public Issue expenditure are being written off against share premium over a period of ten years.
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