Mar 31, 2015
A. General :
Accounts are maintained on accrual basis and on the basis of historical
cost convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
B. Revenue Recognition :
a. The company follows practice of accounting for all Income and
Expenditure on accrual basis.
b. Export incentives have been recognized in the year of export.
c. Claims and damages are accounted for to the extent they are
reasonably certain and determinable.
C. Fixed Assets :
a. Fixed Assets are stated at cost of acquisition, inclusive of
freight, duties, taxes and incidental expenses related to acquisition.
Cenvat Credit availed on capital goods and Interest Subsidy under TUF
Scheme pertaining to pre-operative period has been credited to
respective Capital Reserve Accounts. Depreciation attributable to these
reserves has been adjusted there from.
b. Pre-operative Expenditure comprising of revenue expenditure
incurred in connection with project implementation during the period
upto commencement of commercial production are treated as part of
project cost and are capitalized.
c. Adjustments arising from foreign exchange variation, attributable
to Fixed Assets, are capitalized.
D. Depreciation :
Depreciation is provided on the Straight Line Method in the manner
prescribed in Schedule II to the Companies Act, 2013 as applicable to
the continuous process plant. Depreciation on additions/deletions is
provided on pro-rata basis with the reference to the date of
addition/deletion as the case may be.
E. Excise and Custom Duty :
a. Excise duty, if applicable, is accounted on the basis of both,
payments made in respect of goods cleared as also provision made for
goods lying in bonded warehouse.
b. Liability on account of customs duty on imported materials is
accounted in the year in which the goods are cleared from the customs.
F. Foreign Exchange Transactions :
a. Foreign currency transactions which are not covered by forward
contracts are accounted for at the exchange rates prevailing on the
date of such transactions.
b. Balances in the form of Current Assets and Current Liabilities in
foreign currency, outstanding at the close of the year are converted
into Indian currency at appropriate rate of exchange prevailing on the
date of Balance Sheet. Resultant gain or loss is accounted during the
year.
c. Exchange difference in the carrying amount of the Fixed Assets due
to change in the rate of exchange of Fixed Assets linked liability
denominated in foreign exchange has been adjusted to the book value of
the relevant asset.
G. Investments :
Long Term Investments are stated at cost after deducting provision, if
any, made for permanent diminution in the value of investment.
H. Employee Benefits :
a. Short Term Employee Benefits :
All employee benefits falling due wholly within twelve months of
rendering the service are classified as short term employee benefits.
The benefits like salaries, wages, short term compensated absences etc.
and the expected cost of bonus, ex-gratia are recognized in the period
in which the employee renders the related service.
b. Post Employment Benefits :
Defined Benefit Plans : The Employee Gratuity Fund Scheme and
Government Provident Fund Scheme are funded defined benefit schemes.
Employee Gratuity Fund Scheme is covered by Group Insurance Scheme of
Life Insurance Corporation of India and Provident Fund Scheme is
provided on accrual basis.
c. Long Term Employee Benefits :
The obligation for long term employee benefit such as long term
compensated absence is funded benefit which is covered by Group
Insurance Scheme of Life Insurance Corporation of India.
I. Valuation of Inventories :
a. Work-in-progress are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
b. Finished Goods are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
c. Raw Materials and other inventories of Colours, Dyes, Chemicals,
Stores, Spares and Packing Materials etc. are valued at the lower of
cost or net realizable value. Raw materials and other supplies held for
use in production of inventories are not written down below cost except
in cases where material prices have declined, and it is estimated that
the cost of the finished products will exceed their net realizable
value. The cost of Raw Materials is computed on specific identification
basis and other inventories of Colours, Dyes, Chemicals, Stores, Spares
and Packing Materials etc. is computed on FIFO basis.
d. Stock of Waste and Scrap is valued at estimated net realizable
value.
J. Borrowing Cost :
Borrowing cost that is attributable to the acquisition or construction
of the qualifying assets is capitalized as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of the time to get ready for intended use. All other borrowing
costs are charged to revenue.
K. Provision for current and deferred tax :
a. Provision for the current tax is made after taking into
consideration benefits admissible under the provisions of Income Tax
Act, 1961.
b. Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
Deferred tax assets are reviewed at each Balance Sheet date and is
written-down or written up to reflect the amount that is reasonably or
virtually certain, as the case may be, to be realized.
L. Impairment of Assets :
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Statement of Profit and Loss. If at the Balance Sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
depreciated historical cost.
M. Provisions and Contingent Liabilities :
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may require an outflow of
resources. Contingent assets are neither recognized nor disclosed.
Mar 31, 2014
A. General :
Accounts are maintained on accrual basis and on the basis of historical
cost convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
B. Revenue Recognition :
a. The company follows practice of accounting for all Income and
Expenditure on accrual basis.
b. Export incentives have been recognized in the year of export.
c. Claims and damages are accounted for to the extent they are
reasonably certain and determinable.
C. Fixed Assets :
a. Fixed Assets are stated at cost of acquisition, inclusive of
freight, duties, taxes and incidental expenses related to acquisition.
Cenvat Credit availed on capital goods and Interest Subsidy under TUF
Scheme pertaining to pre-operative period has been credited to
respective Capital Reserve Accounts. Depreciation attributable to these
reserves has been adjusted there from.
b. Pre-operative Expenditure comprising of revenue expenditure incurred
in connection with project implementation during the period upto
commencement of commercial production are treated as part of project
cost and are capitalized.
c. Adjustments arising from foreign exchange variation, attributable to
Fixed Assets, are capitalized.
D. Depreciation :
Depreciation is provided on the Straight Line Method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956 as
applicable to the continuous process plant. Depreciation on
additions/deletion is provided pro-rata basis with the reference to the
date of addition/deletion as the case may be, except in case of fi xed
assets costing less than Rs. 5,000 per item which are written off in
the year of addition.
E. Excise and Custom Duty :
a. Excise duty, if applicable, is accounted on the basis of both,
payments made in respect of goods cleared as also provision made for
goods lying in bonded warehouse.
b. Liability on account of customs duty on imported materials is
accounted in the year in which the goods are cleared from the customs.
F. Foreign Exchange Transactions :
a. Foreign currency transactions which are not covered by forward
contracts are accounted for at the exchange rates prevailing on the
date of such transactions.
b. Balances in the form of Current Assets and Current Liabilities in
foreign currency, outstanding at the close of the year are converted
into Indian currency at appropriate rate of exchange prevailing on the
date of Balance Sheet. Resultant gain or loss is accounted during the
year.
c. Exchange difference in the carrying amount of the Fixed Assets due
to change in the rate of exchange of Fixed Assets linked liability
denominated in foreign exchange has been adjusted to the book value of
the relevant asset.
G. Investments :
Long Term Investments are stated at cost after deducting provision, if
any, made for permanent diminution in the value of investment.
H. Employee Benefi ts :
a. Short Term Employee Benefi ts :
All employee benefi ts falling due wholly within twelve months of
rendering the service are classifi ed as short term employee benefi ts.
The benefi ts like salaries, wages, short term compensated absences
etc. and the expected cost of bonus, ex-gratia are recognized in the
period in which the employee renders the related service.
b. Post Employment Benefi ts :
Defi ned Benefi t Plans : The Employee Gratuity Fund Scheme and
Government Provident Fund Scheme are funded defi ned benefi t schemes.
Employee Gratuity Fund Scheme is covered by Group Insurance Scheme of
Life Insurance Corporation of India and Provident Fund Scheme is
provided on accrual basis.
c. Long Term Employee Benefi ts :
The obligation for long term employee benefi t such as long term
compensated absence is funded benefi t which is covered by Group
Insurance Scheme of Life Insurance Corporation of India.
I. Valuation of Inventories :
a. Work-in-progress are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
b. Finished Goods are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
c. Raw Materials and other inventories of Colours, Dyes, Chemicals,
Stores, Spares and Packing Materials etc. are valued at the lower of
cost or net realizable value. Raw materials and other supplies held for
use in production of inventories are not written down below cost except
in cases where material prices have declined, and it is estimated that
the cost of the fi nished products will exceed their net realizable
value. The cost of Raw Materials is computed on specifi c identifi
cation basis and other inventories of Colours, Dyes, Chemicals, Stores,
Spares and Packing Materials etc. is computed on FIFO basis.
d. Stock of Waste and Scrap is valued at estimated net realizable
value.
J. Borrowing Cost :
Borrowing cost that is attributable to the acquisition or construction
of the qualifying assets is capitalized as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of the time to get ready for intended use. All other borrowing
costs are charged to revenue.
K. Provision for current and deferred tax :
a. Provision for the current tax is made after taking into
consideration benefi ts admissible under the provisions of Income Tax
Act, 1961.
b. Deferred tax charge or credit refl ects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
Deferred tax assets are reviewed at each Balance Sheet date and is
written-down or written up to refl ect the amount that is reasonably or
virtually certain, as the case may be, to be realized.
L. Impairment of Assets :
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Statement of Profit and Loss. If at the Balance Sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is refl ected at the recoverable amount subject to a maximum of
depreciated historical cost.
M. Provisions and Contingent Liabilities :
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outfl ow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may require an outfl ow of
resources. Contingent assets are neither recognized nor disclosed.
Mar 31, 2013
A. General :
Accounts are maintained on accrual basis and on the basis of historical
cost convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
B. Revenue Recognition :
a. The company follows practice of accounting for all Income and
Expenditure on accrual basis.
b. Export incentives have been recognized in the year of export.
c. Claims and damages are accounted for to the extent they are
reasonably certain and determinable.
C. Fixed Assets :
a. Fixed Assets are stated at cost of acquisition, inclusive of
freight, duties, taxes and incidental expenses related to acquisition.
Cenvat Credit availed on capital goods and Interest Subsidy under TUF
Scheme pertaining to pre-operative period has been credited to
respective Capital Reserve Accounts. Depreciation attributable to these
reserves has been adjusted there from.
b. Adjustments arising from foreign exchange variation, attributable
to Fixed Assets, are capitalized.
D. Depreciation :
Depreciation is provided on the Straight Line Method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956 as
applicable to the continuous process plant. Depreciation on
additions/deletion is provided pro-rata basis with the reference to the
date of addition/deletion as the case may be, except in case of fixed
assets costing less than Rs. 5,000 per item which are written off in
the year of addition.
E. Excise and Custom Duty :
a. Excise duty, if applicable, is accounted on the basis of both,
payments made in respect of goods cleared as also provision made for
goods lying in bonded warehouse.
b. Liability on account of customs duty on imported materials is
accounted in the year in which the goods are cleared from the customs.
F. Foreign Exchange Transactions :
a. Foreign currency transactions which are not covered by forward
contracts are accounted for at the exchange rates prevailing on the
date of such transactions.
b. Balances in the form of Current Assets and Current Liabilities in
foreign currency, outstanding at the close of the year are converted
into Indian currency at appropriate rate of exchange prevailing on the
date of Balance Sheet. Resultant gain or loss is accounted during the
year.
c. Exchange difference in the carrying amount of the Fixed Assets due
to change in the rate of exchange of Fixed Assets linked liability
denominated in foreign exchange has been adjusted to the book value of
the relevant asset.
G. Investments :
Long Term Investments are stated at cost after deducting provision, if
any, made for permanent diminution in the value of investment.
H. Employee Benefits :
a. Short Term Employee Benefits :
All employee benefits falling due wholly within twelve months of
rendering the service are classified as short term employee benefits.
The benefits like salaries, wages, short term compensated absences etc.
and the expected cost of bonus, ex-gratia are recognized in the period
in which the employee renders the related service.
b. Post Employment Benefits :
Defined Benefit Plans : The Employee Gratuity Fund Scheme and
Government Provident Fund Scheme are funded defined benefit schemes.
Employee Gratuity Fund Scheme is covered by Group Insurance Scheme of
Life Insurance Corporation of India and Provident Fund Scheme is
provided on accrual basis.
c. Long Term Employee Benefits :
The obligation for long term employee benefit such as long term
compensated absence is funded benefit which is covered by Group
Insurance Scheme of Life Insurance Corporation of India.
I. Valuation of Inventories :
a. Work-in-progress are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
b. Finished Goods are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
c. Raw Materials and other inventories of Colours, Dyes, Chemicals,
Stores, Spares and Packing Materials etc. are valued at the lower of
cost or net realizable value. Raw materials and other supplies held for
use in production of inventories are not written down below cost except
in cases where material prices have declined, and it is estimated that
the cost of the finished products will exceed their net realizable
value. The cost of Raw Materials is computed on specific
identification basis and other inventories of Colours, Dyes, Chemicals,
Stores, Spares and Packing Materials etc. is computed on FIFO basis.
d. Stock of Waste and Scrap is valued at estimated net realizable
value.
J. Borrowing Cost :
Borrowing cost that is attributable to the acquisition or construction
of the qualifying assets is capitalized as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of the time to get ready for intended use. All other borrowing
costs are charged to revenue.
K. Provision for current and deferred tax :
a. Provision for the current tax is made after taking into
consideration benefits admissible under the provisions of Income Tax
Act, 1961.
b. Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
Deferred tax assets are reviewed at each Balance Sheet date and is
written-down or written up to reflect the amount that is reasonably or
virtually certain, as the case may be, to be realized.
L. Impairment of Assets :
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Statement of Profit and Loss. If at the Balance Sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
depreciated historical cost.
M. Provisions and Contingent Liabilities :
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may require an outflow of
resources. Contingent assets are neither recognized nor disclosed.
N. Preliminary Expenses :
Preliminary Expenses are amortized proportionately over a period of 10
years from the year in which these are incurred.
Mar 31, 2012
A. General:
Accounts are maintained on accrual basis and on the basis of historical
cost convention and materially comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
B. Revenue Recognition :
a. The company follows practice of accounting for all Income and
Expenditure on accrual basis.
b. Export incentives have been recognized in the year of export.
c. Claims and damages are accounted for to the extent they are
reasonably certain and determinable.
C. Fixed Assets : .
a. Fixed Assets are stated at cost of acquisition, inclusive of
freight, duties, taxes and incidental expenses related to acquisition.
Cenvat Credit availed on capital goods and Interest Subsidy under TUF
Scheme pertaining to pre-operative period has been credited to
respective Capital Reserve Accounts.
Depreciation attributable to these reserves has been adjusted there
from. .
b. Adjustments arising from foreign exchange variation, attributable
to Fixed Assets, are capitalized.
D. Depreciation :
Depreciation is provided on the Straight Line Method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956 as
applicable to the continuous process plant. Depreciation on additions/
deletion is provided pro-rata basis with the reference to the date of
addition/deletion as the case may be, except in case of fixed assets
costing less than Rs. 5,000 per item which are written off in the year
of addition.
E. Excise and Custom Duty : .
a. Excise duty, if applicable, is accounted on the basis of both,
payments made in respect of goods cleared as also provision made for
goods lying in bonded warehouse.
b. Liability on account of customs duty on imported materials is
accounted in the year in which the goods are cleared from the customs.
F. Foreign Exchange Transactions :
a. Foreign currency transactions which are not covered by forward
contracts are accounted for at the exchange rates prevailing on the
date of such transactions. .
b. Balances in the form of Current Assets and Current Liabilities in
foreign currency, outstanding at the close of the year are converted
into Indian currency at appropriate rate of exchange prevailing on .
the date of Balance Sheet. Resultant gain or loss is accounted during
the year.
c. Exchange difference in the carrying amount of the Fixed Assets due
to change in the rate of exchange of Fixed Assets linked liability
denominated in foreign exchange has been adjusted to the book value of
the relevant asset.
G. Investments:
Long Term Investments are stated at cost after deducting provision, if
any, made for permanent diminution in the value of investment.
H. Employee Benefits : ,
a. Short Term Employee Benefits :
All employee benefits falling due wholly within twelve months of
rendering the service are classified as short term employee benefits.
The benefits like salaries, wages, short term compensated absences etc.
and the expected cost of bonus, ex-gratia are recognized in the period
in which the employee renders the related service.
b. Post Employment Benefits : '
Defined Benefit Plans : The Employee Gratuity Fund Scheme and
Government Provident Fund Scheme are funded defined benefit schemes.
Employee Gratuity Fund Scheme is covered by Group Insurance Scheme of
Life Insurance Corporation of India and Provident Fund Scheme is
provided on accrual basis.
c. Long Term Employee Benefits :
The obligation for long term employee benefit such as long term
compensated absence is funded benefit which is covered by Group
Insurance Scheme of Life Insurance Corporation of India.
I. Valuation of Inventories :
a. Work-in-progress are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
b. Finished Goods are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
c. Raw Materials and other inventories of Colours, Dyes, Chemicals,
Stores, Spares and Packing Materials etc. are valued at the lower of
cost or net realizable value. Raw materials and other supplies held for
use in production of inventories are not written down below cost except
in cases where material prices have declined, and it is estimated that
the cost of the finished products will exceed their net realizable
value. The cost of Raw Materials is computed on specific identification
basis and other inventories of Colours, Dyes, Chemicals, Stores, Spares
and Packing Materials etc. is computed on FIFO basis.
d. Stock of Waste and Scrap is valued at estimated net realizable
value.
J. Borrowing Cost:
Borrowing cost that is attributable to the acquisition or construction
of the qualifying assets is capitalized as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of the time to get ready for intended use. All other borrowing
costs are charged to revenue.
K. Provision for current and deferred tax :
a. Provision for the current tax is made after taking into
consideration benefits admissible under the provisions of Income Tax
Act, 1961.
b. Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
Deferred tax assets are reviewed at each Balance Sheet date and is
written-down or written up to reflect the amount that is reasonably or
virtually certain, as the case may be, to be realized.
L. Impairment of Assets :
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit and Loss Account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
M. Provisions and Contingent Liabilities :
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may require an outflow of
resources. Contingent assets are neither recognized nor disclosed.
N. Preliminary Expenses :
Preliminary Expenses are amortized proportionately over a period of 10
years from the year in which these are incurred.
Mar 31, 2010
1. General:
Accounts are maintained on accrual basis and on the basis of historical
cost convention and materialy comply with the mandatory accounting
standards issued by the Institute of Chartered Accountants of India.
2. Revenue Recognition:
a. The company follows practice of accounting for all Income and
Expenditure on accrual basis.
b. Export incentives under the DEPB scheme have been recognized in the
year of export.
c. Claims and damages are accounted for to the extent they are
reasonably certain and determinable.
3. Fixed Assets :
a. Fixed Assets are stated at cost of acquisition, inclusive of
freight, duties, taxes and incidental expenses related to acquisition.
Cenvat Credit availed on capital goods and Interest Subsidy under TUF
Scheme * pertaining to preoperative period has been credited to
respective Capital Reserve Accounts. Depreciation attributable to these
reserves has been adjusted there from.
b. Adjustments arising from foreign exchange variation, attributable
to fixed assets, are capitalized.
4. Depreciation:
Depreciation is provided on the Straight Line Method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956 as
applicable to the continuous process plant. Depreciation on additions/
deletion is provided pro-rata basis with the reference to the date of
addition/deletion as the case may be, except in case of fixed assets
costing less than Rs. 5,000 per item which are written off in the year
of addition.
5. Excise Duty and Custom Duty :
a. Excise duty, if applicable, is accounted on the basis of both,
payments made in respect of goods cleared as also provision made for
goods lying in bonded warehouse.
b. Liability on account of customs duty on imported materials is
accounted in the year in which the goods are cleared from the customs.
6. Foreign Exchange Transactions :
a. Foreign currency transactions which are not covered by forward
contracts are accounted for at the exchange rates prevailing on the
date of such transactions.
b. Balances in the form of Current Assets and Current Liabilities in
foreign currency,, outstanding at the close of the year are converted
into Indian currency at appropriate rate of exchange prevailing on the
date of Balance Sheet. Resultant gain or loss is accounted during the
year.
c. Exchange difference in the carrying amount of the Fixed Assets due
to change in the rate of exchange of fixed assets linked liability
denominated in foreign exchange has been recognised in Profit and Loss
Account.
7. Investments:
Long Term Investments are stated at cost after deducting provision, if
any, made for permanent diminution in the value of investment.
8. Employee Benefits:
a. Short Term Employee Benefits :
All employee benefits falling due wholly within twelve months of
rendering the service are classified as short term employee benefits.
The benefits like salaries, wages, short term compensated absences etc.
and the expected cost of bonus, ex-gratia are recognized in the period
in which the employee renders the related service.
b. Post-Employment Benefits:
Defined Benefit Plans: The Employee Gratuity Fund Scheme and Government
Provident Fund Scheme are funded defined benefit schemes. Employee
Gratuity Fund Scheme is covered by Group Insurance Scheme of Life
Insurance Corporation of India and Provident Fund Scheme is provided on
accrual basis.
c. Long Term Employee Benefits :
The obligation for long term employee benefit such as long term
compensated absence, fs funded benefit which is covered by Group
Insurance Scheme of Life Insurance Corporation of India.
9. Valuation of Inventories :
a. The Semi-Finished Goods and Finished Goods are valued at the lower
of cost or net realizable value. The cost is computed on weighted
average method and includes cost of materials, cost of conversion and
other costs incurred in acquiring the inventory and bringing them to
their present location and condition.
b. Raw Materials and other inventories of Stores, Spares, and Packing
Materials etc. are valued at the lower of cost or net realizable value.
Raw materials and other supplies held for use in production of
inventories are not written down below cost except in cases where
material prices have declined, and it is estimated that the cost of the
finished products will exceed their net realizable value. The cost of
Raw Materials is computed on specific identification basis and other
inventories of Stores, Spares and Packing Materials etc. is computed on
FIFO basis.
c. Stock of Waste and Scrap is valued at estimated net realizable
value.
10. Borrowing Cost:
Borrowing cost that is attributable to the acquisition or construction
of the qualifying assets is capitalized as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial
period of the time to get ready for intended use. All other borrowing
costs are charged to revenue.
11. Provision for current and deferred tax :
a. Provision for the current tax is made after taking into
consideration benefits admissible under the provisions of Income Tax
Act, 1961.
b. Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
Deferred tax assets are reviewed at each Balance Sheet date and is
written-down or written up to reflect the amount that is reasonably or
virtually certain, as the case may be, to be realized.
12. Impairment of Assets :
The Company assesses at each Balance Sheet date whether theTe is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit and Loss Account. If at the Balance Sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
13. Provisions and Contingent Liabilities:
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may require an outflow of
resources. Contingent assets are neither recognized nor disclosed.
14. Deferred Revenue Expenses and Preliminary Expenses :
Deferred Revenue Expenses and Preliminary Expenses are amortized
proportionately over a period of 10 years from the year in which these
are incurred.