Mar 31, 2014
1. USE OF ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with the
generally accepted accounting principle in India (Indian GAAP) requires
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 reported
amounts of revenues and expenses during the reporting period.
Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Actual result could
differ from these estimates. Any revision to such accounting estimates
is recognized prospectively in future periods.
2. INVENTORIES
Raw materials and Packing materials are valued at lower of cost,
calculated on "First-in-First out" basis, and net realizable value.
Finished goods and work-in-progress are valued at lower of cost and net
realizable value. Cost includes materials, labour and a proportion of
appropriate overheads. Cost of finished goods includes excise duty.
Net realizable value is the estimated selling price in the ordinary
course of business, reduced by the estimated costs of completion and
costs to affect the sale.
3. FIXED ASSETS AND DEPRECIATION
Fixed assets are carried at the cost of acquisition or construction
less accumulated depreciation and impairment losses, if any. The cost
of fixed assets includes non-refundable taxes, duties, freight and
other incidental expenses related to the acquisition and installation
of the respective assets.
Depreciation on fixed assets has been provided using written down value
method at the rates specified in Schedule XIV to the Companies Act,
1956. Depreciation is calculated on a pro-rata basis from the date of
installation till the date the assets are sold or disposed
4. SIGNIFICANT EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
The treatment of contingencies and significant events occurring after
balance sheet date are in accordance with AS- 4 ''Contingencies and
Events Occurring after the Balance Sheet Date'' as notified in Section
211(3C) of the Companies Act,1956.
5. REVENUE RECOGNITION
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Revenue from sale of goods is recognized when significant risks and
rewards in respect of ownership of products are transferred to
customers. Revenue from domestic sales is recognized on delivery of
products to customers from the factory of the company. Revenue from
export sales is recognized when the significant risks and rewards of
ownership
of products are transferred to the customers, which is based upon the
terms of the applicable contract. Gross Sales are exclusive of returns,
applicable trade discounts and allowances and inclusive of Excise Duty
and Sales Tax.
6. SALES
Sales are inclusive of excise duty, and export incentives.
7. WARRANTY CLAIMS
Liability for warranty claims is charged to revenue in the year in
which it is settled by the company.
8. TREATMENT OF EXCISE DUTY
Excise Duty recovered is included in ''Sales''. Excise Duty on despatches
is shown as item of expense. It is included as an element of cost in
the valuation of duty paid stocks.
The CENVAT Credit available on Raw Material, Components, Stores and
Spares and Fixed Assets are correspondingly reduced from these accounts
and unutilised part of credit available is reflected as Balance with
Excise department under Current Assets
9. FOREIGN CURRENCY TRANSACTIONS AND BALANCES
Foreign currency transactions are recorded using the exchange rates
prevailing on the dates of the respective transactions. Exchange
differences arising on foreigncurrency transactions settled during the
year are recognized in the profit and loss account.
Monetary assets and liabilities denominated in foreign currencies as at
the date of balance sheet are translated at year-end rates. The
resultant exchange differences are recognized in the profit and loss
account. Non-monetary assets are recorded at the rates prevailing on
the date of thetransaction.
10. INVESTMENTS
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments. Current
investments are carried at lower of cost and fair value determined on
individual investment basis. Long-term investments are carried at cost.
However, diminution in value is provided to recognize a decline, other
than temporary, in the value of the investments.
11. PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized when the company has a legal and constructive
obligation as a result of a past event, for which it is probable that a
cash flow will be required and a reliable estimate can be made of the
amount of the obligation. However, where such obligations are not
likely to entail outflows in future periods and are contingent on the
future outcome of events, they are disclosed as a matter of information
as "Contingent Liabilities".
12. TAXATION
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961.
Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized. In situations where the
Company has unabsorbed depreciation or carry forward tax losses, all
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that they can be realized against
future taxable profits. Deferred tax assets are reviewed at each
balance sheet date and are written-down or written-up to reflect the
amount that is reasonably / virtually certain (as the case may be) to
be realised
13. EMPLOYEE BENEFITS
A) PROVIDENT FUND AND FAMILY PENSION FUND
The Contributions to Provident Fund and Employee State Insurance
Schemes, which are defined contributionschem to the relevant funds
administered and managed by the Central Government of India, are
charged offto the Profit Loss Account as and when respective funds are
due. The Company has no further obligations under thesepl beyond its
monthly contributions.
B) BONUS
Short term employee benefits including bonus as at the balance sheet
date are recognized as an expense based on expected obligation on an
undiscounted basis.
C) GRATUITY
The Company has an obligation towards Gratuity, a defined benefit
retirement plan covering eligible Employe The plan provides a lump sum
payment to vested employees at retirement, death while in employment or
on terminat of employment of an amount equivalent to 15 days salary
payable for each completed year of service. Vesting occ upon completion
of 5 years of service. Contributions to Gratuity Fund are made to Life
Insurance Corporation India.
14. RELATED PARTIES DISCLOSURES :
List of Key Managerial personnel:
(1) B.S.Sahney, Managing Director, managerial remuneration shown below:
Relatives of Key management personnel:
(a) Brijween Kaur Sahney, Director
(b) Jasmine Pillai, Director Enterprises over which key management
personnel or relatives exercise significant influence:
(a) Bhupinder Investment Co.Pvt.Ltd., - short term loan balance Rs
368.63 lakhs.
(b) Daaj Hotels and Resorts Pvt.Ltd., - short term loan balance Rs.170
lakhs
The Company had transactions with the following related parties.
Mar 31, 2013
01. GENERAL
Financial Statements are prepared under historical cost convention and
in accordance with generally accepted accounting practices. Revenues
are recognized and expenses are accounted on accrual basis with
necessary provisions for all known Liabilities and Losses.
02. FIXED ASSETS AND DEPRECIATION
i) Fixed Assets are stated at cost, net of cenvat, less accumulated
depreciation. Cost of acquisition of fixed assets is inclusive of
freight, duties, taxes and incidental expenses thereto; and
ii) Depreciation is provided on fixed assets, except on Technical know
how, on Straight Line Method at the rates and in the manner specified
under Schedule  XIV to the Companies Act, 1956. Depreciation on
technical know-how is provided at 20% per annum on straight-line
method.
03. INVESTMENTS:
Long term investments are stated at cost. Provision for diminution in
the value of investments, if any, will be made if it is permanent in
nature. Current investments are stated at net realisable value.
04. INVENTORIES (As certified by the Management)
a. Finished goods are valued at cost or market value which ever is
lower.
b. Work-in-progress, Raw Materials, Components, Stores, Spares etc.,
are valued at cost or realisable value, whichever is lower.
05. SALES:
Sales are inclusive of excise duty, and export incentives.
06. WARRANTY CLAIMS
Liability for warranty claims is charged to revenue in the year in
which it is settled by the company.
0 7 . EXPORT BENEFITS:
Export benefits are accounted on estimated amount of benefits which the
company is entitled to.
0 8 . TREATMENT OF CUSTOMS DUTY
The customs duty payable on imported material lying as at the end of
the year in customs bonded warehouse is neither included in expenses
nor considered in valuation of the inventories of such material/goods.
The duty is accounted for on actual payment on clearance of such
material/goods.
09. TREATMENT OF EXCISE DUTY
i. Excise Duty recovered is included in ''Sales''. Excise Duty on
despatches is shown as item of expense. It is included as an element of
cost in the valuation of duty paid stocks.
ii. The Cenvat credit available on Raw Material, Components, Stores and
Spares and Fixed Assets are correspondingly reduced from these accounts
and unutilised part of credit available is reflected as Balance with
Excise department under Current Assets.
10 . CONTINGENT LIABILITIES IN RESPECT OF :
March 31,2013 March31,2012
Rs/Lakhs Rs/Lakhs
Central Excise demands in Appeal 108.00 123.86
Mar 31, 2012
01. GENERAL
Financial Statements are prepared under historical cost convention and
in accordance with generally accepted accounting practices. Revenues
are recognized and expenses are accounted on accrual basis with
necessary provisions for all known Liabilities and Losses.
02. FIXED ASSETS AND DEPRECIATION
i) Fixed Assets are stated at cost, net of cenvat, less accumulated
depreciation. Cost of acquisition of fixed assets is inclusive of
freight, duties, taxes and incidental expenses thereto; and
ii) Depreciation is provided on fixed assets, except on Technical know
how, on Straight Line Method at the rates and in the manner specified
under Schedule - XIV to the Companies Act, 1956. Depreciation on
technical know-how is provided at 20% per annum on straight-line
method.
03. INVESTMENTS:
Long term investments are stated at cost. Provision for diminution in
the value of investments, if any, will be made if it is permanent in
nature. Current investments are stated at net realisable value.
04. INVENTORIES
(As certified by the Management)
a. Finished goods are valued at cost or market value which ever is
lower.
b. Work-in-progress, Raw Materials, Components, Stores, Spares etc.,
are valued at cost or realisable value, whichever is lower.
05. SALES:
Sales are inclusive of excise duty, and export incentives.
06. WARRANTY CLAIMS
Liability for warranty claims is charged to revenue in the year in
which it is settled by the company.
07. EXPORT BENEFITS:
Export benefits are accounted on estimated amount of benefits which the
company is entitled to.
08. TREATMENT OF CUSTOMS DUTY
The customs duty payable on imported material lying as at the end of
the year in customs bonded warehouse is neither included in expenses
nor considered in valuation of the inventories of such material/goods.
The duty is accounted for on actual payment on clearance of such
material/goods.
09. TREATMENT OFEXCISE DUTY
i Excise Duty recovered is included in 'Sales'. Excise Duty on
despatches is shown as item of expense. It is included as an element of
cost in the valuation of duty paid stocks.
ii. The Cenvat credit available on Raw Material, Components, Stores and
Spares and Fixed Assets are correspondingly reduced from these accounts
and unutilised part of credit available is reflected as Balance with
Excise department under Current Assets.
10. CONTINGENT LIABILITIES IN RESPECT OF :
March 31,2012 March31,2011
Rs/Lakhs Rs/Lakhs
Central Excise demands in Appeal 123.86 123.86
Mar 31, 2011
01. GENERAL
Financial Statements are prepared under historical cost convention and
in accordance with generally accepted accounting practices. Revenues
are recognized and expenses are accounted on accrual basis with
necessary provisions for all known Liabilities and Losses.
02. FIXED ASSETS AND DEPRECIATION
i) Fixed Assets are stated at cost, net of cenvat, less accumulated
depreciation. Cost of acquisition of fixed assets is inclusive of
freight, duties, taxes and incidental expenses thereto; and
ii) Depreciation is provided on fixed assets, except on Technical know
how, on Straight Line Method at the rates and in the manner specified
under Schedule - XIV to the Companies Act, 1956. Depreciation on
technical know-how is provided at 20% per annum on straight-line
method.
03. INVESTMENTS:
Long term investments are stated at cost. Provision for diminution in
the value of investments, if any, will be made if it is permanent in
nature. Current investments are stated at net realisable value.
04. INVENTORIES
(As certified by the Management)
a. Finished goods are valued at cost or market value which ever is
lower.
b. Work-in-progress, Raw Materials, Components, Stores, Spares etc.,
are valued at cost or realisable value, whichever is lower.
05. SALES:
Sales are inclusive of excise duty, and export incentives.
06. WARRANTY CLAIMS
Liability for warranty claims is charged to revenue in the year in
which it is settled by the company.
07. EXPORT BENEFITS:
Export benefits are accounted on estimated amount of benefits which the
company is entitled to.
08. TREATMENT OF CUSTOMS DUTY
The customs duty payable on imported material lying as at the end of
the year in customs bonded warehouse is neither included in expenses
nor considered in valuation of the inventories of such material/goods.
The duty is accounted for on actual payment on clearance of such
material/goods.
09. TREATMENT OF EXCISE DUTY
i. Excise Duty recovered is included in 'Sales'. Excise Duty on
despatches is shown as item of expense. It is included as an element of
cost in the valuation of duty paid stocks.
ii. The Cenvat credit available on Raw Material, Components, Stores and
Spares and Fixed Assets are correspondingly reduced from these accounts
and unutilised part of credit available is reflected as Balance with
Excise department under Current Assets.
Mar 31, 2010
01. GENERAL
Financial Statements are prepared under historical cost convention and
in accordance with generally accepted accounting practices. Revenues
are recognized and expenses are accounted on accrual basis with
necessary provisions for all known Liabilities and Losses.
02. FIXED ASSETS AND DEPRECIATION
i) Fixed Assets are stated at cost, net of modvat, less accumulated
depreciation. Cost of acquisition of fixed assets is inclusive of
freight, duties, taxes and incidental expenses thereto.
ii) Depreciation is provided on fixed assets, except on Technical know
how, on Straight Line Method at the rates and in the manner specified
under Schedule - XIV to the Companies Act, 1956. Depreciation on
technical know-how is provided at 20% per annum on straight-line
method.
iii) As per past practice, expenditure in respect of acquisition of
Fixed Assets and other expenditure including interest on loans taken
for acquisition of such fixed assets incurred in setting up new units
is debited to Capital Work In Progress, pending capitalisation and
commencement of commercial production of these units.
iv) Expenditure of revenue nature including interest on loans incurred
during setting up of additional units are capitalised and apportioned
to Fixed Assets proportionately till the date of commencement of
commercial production.
03. Foreign Currency Loans:
Foreign currency Loans are converted to Rupees at the relevant rates
prevailing on the date of the Balance Sheet. Difference is adjusted to
Fixed Assets in case of Capital Assets and is charged off to revenue,
in case of Current Assets.
04. INVESTMENTS:
Investments are stated at cost. Provision for diminution in the value
of investments, if any, will be made if it is permanent in nature.
05. INVENTORIES
(As certified by the Management)
a. Finished goods are valued at cost or market value which ever is
lower.
b. Work-in-progress, Raw Materials, Components, Stores, Spares etc.,
are valued at cost or realisable value, whichever is lower.
06. SALES:
Sales are inclusive of excise duty, and export incentives.
07. WARRANTY CLAIMS
Liability for warranty claims is charged to revenue in the year in
which it is settled by the company.
08. EXPORT BENEFITS:
Export benefits are accounted on estimated amount of benefits which the
company is entitled to.
09. TREATMENT OF CUSTOMS DUTY
The customs duty payable on imported material lying as at the end of
the year in customs bonded warehouse is neither included in expenses
nor considered in valuation of the inventories of such material/goods.
The duty is accounted for on actual payment on clearance of such
material/goods.
10. TREATMENT OF EXCISE DUTY
i. Excise Duty recovered is included in Sales. Excise Duty on
despatches is shown as item of expense. It is included as an element of
cost in the valuation of duty paid stocks.
ii. The Cenvat credit available on Raw Material, Components, Stores
and Spares and Fixed Assets are correspondingly reduced from these
accounts and unutilised part of credit available is reflected as
Balance with Excise department under Current Assets.