Mar 31, 2015
(A) Accounting Conventions
The financial statement has been prepared in accordance with the
historical cost convention, accounting standards issued vide Companies
(Accounting Standard), Rules 2006, as prescribed under section 133 of
the Companies Act 2013 read with rule 7 of Companies (Accounts) Rules,
2014 and other relevant provisions of the Companies Act, 2013 and
earlier years financial statement were prepared as per relevant
provisions of the Companies Act, 1956 (refer General circular 08/2014
dated 04/04/2014 of the Ministry of Corporate Affairs for applicability
of relevant provisions/ schedules/ rules of the Companies Act, 1956 for
the financial statements prepared for the financial year commenced
earlier than 01.04.2014) and the provisions of the Companies Act, 2013
(to the extent applicable).
Use of Estimates .
The preparation of financial statements is in conformity with the
Generally Accepted Accounting Principles (GAAP), which requires
estimates and assumptions to be made that affect the reportable amount
of assets and liabilities on the date of financial statements and the
reportable amount of revenue and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the year in which the results are known /materialized.
(B) FIXED ASSETS
Tangible Assets
i) Fixed assets (other than revalued Plant & Machinery) are stated at
their original cost including freight, duties, taxes and other
incidental expenses relating to acquisition and installation and are
net of credit available under the Excise/Service Tax CENVAT Scheme and
Value Added Tax (VAT) where applicable.
ii) Plant and Machinery are stated at revalued amount ascertained by an
independent professional valuer as at 1st October'' 2010.
iii) Pre-Operative expenditure including borrowing cost (net of
revenue) incurred during the construction / trial run of projects is
allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognized if:
* It is probable that the future economic benefits that are
attributable to the assets will flow to the Company, and
* the cost / fair value (as determined by an independent valuer) of the
assets can be measured reliably.
(C) DEPRECION /AMORTISATION
Fixed Assets:
Depreciation on all fixed assets (other than revalued Plant &
Machinery) is charged on the straight line method on a pro-rata basis
at the rates prescribed under Schedule XIV to the Companies Act, 1956,
except for certain fixed assets provided to employees as per the terms
of the employment and certain tools, which are depreciated over three
to five years based on the useful life to the Company. Where there is a
revision of the estimated useful life of an asset, the unamortized
depreciable amount is charged over the revised remaining useful life
(subject to minimum rates prescribed under Schedule XIV to the
Companies Act, 1956).
In respect of revalued Plant and Machinery, the useful life is
estimated between 6 years to 20 years, as certified by an independent
professional valuer. Depreciation is computed on the revalued amount on
remaining useful life of such assets.
Leasehold land is written-off proportionately over the lease period.
Leasehold Improvements are written off over the period of primary
lease. Capital spares are amortized over the useful life of the
principal item.
Intangible Assets:
Goodwill is amortized on a straight line basis over a period of five
years.
"Technical Designs / Drawings" and "Software for internal Use" are
amortized on a straight line basis over the estimated useful life of
the assets which are as under:
* Software for internal use - 3 years
* SAP ERP Package - 5 years
* Technical Designs / Drawings - Useful life of the related Plant and
Machinery
(D) INVESTMENTS
Long term investments are stated at cost. However, when there is a
decline, other than temporary, in the value of long term investment, an
appropriate provision is made to recognize such decline. Current
investments are valued at the lower of cost and fair value. ''
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools,
work-in-process and finished goods are valued at the lower of cost and
net realizable value. Cost for this purpose is worked out on a moving
weighted average basis. In case of finished goods and work-in-process,
appropriate overheads are loaded on absorption costing basis.
Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R & D}
i) Revenue expenditure incurred for R & D is charged to the Statement
of Profit and Loss.
ii) Fixed Assets purchased for R & D activities are capitalized in
the year, the same are put to use.
(G) REVENUE
i) Sales are accounted when dispatched and are stated inclusive of
excise duty and net of value added tax, sales tax, trade discount and
sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Company''s contribution to Provident Fund is charged to the
Statement of Profit and Loss.
The Company has taken group policies with the Life Insurance
Corporation of India (LIC) to cover the liabilities towards the
superannuation and gratuity benefits for certain categories of
employees. Trustees have been appointed for the purpose of
administering the superannuation and gratuity Funds. The Company makes
provision for the liability for long term defined benefit schemes of
gratuity and leave encashment for all its employees on the basis of
actuarial valuation on the Balance Sheet date based on the
Projected Unit Credit Method. The actuarial valuation of the liability
towards gratuity is made on the basis of assumptions with respect to
the variable elements affecting the computations including estimation
of interest rate of earnings on contribution to LIC, discount rate,
future salary increment. The Company recognizes the actuarial gains and
losses in the Statement of Profit and Loss as income and expense, in
the period in which they occur.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign currency transactions are accounted for at the exchange rate
prevailing on the transaction date. Monetary assets and Liabilities
related to foreign currency transactions which remained unsettled at
the end of the year are translated at year-end rates.
ii) The realized and unrealized gains and losses on foreign exchange
transactions are recognized in the Statement of Profit and Loss. In case
of forward contracts associated with underlying assets outstanding at
the Balance Sheet date, the exchange differences on such contracts are
recognized in the Statement of Profit and Loss in the reporting period.
The premium or discount on all such contracts arising at the inception
is amortized as income or expense over the life of the contract.
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset till the date of start of commercial
production.
ii) Ancillary costs incurred in connection with the arrangement of
borrowings are amortized over the period of the borrowing.
iii) Other borrowing costs are recognized as an expense in the period
in which they are incurred,
K) LEASES
As Lessee:
Lease rentals in respect of assets taken on operating lease1 are
charged to the Statement of Profit and Loss on a straight line basis
over the lease term.
Finance lease transactions entered are considered as financing
arrangements and the leased asset is capitalized at an amount equal to
the present value of future lease payments and a corresponding amount
is recognized as a liability. The lease payments made are apportioned
between finance charge and reduction of outstanding liability in
relation to leased asset.
(L) TAXES ON INCOME
Current Tax
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of Income Tax Act,
1961.
Deferred Tax
Deferred tax is recognized, subject to the consideration of prudence,
as the tax effect of timing difference between the taxable income and
accounting income computed for the current accounting year and reversal
of earlier years'' timing differences.
Deferred tax assets are recognized and carried forward to the extent
that there is a reasonable certainty, except arising from unabsorbed
depreciation and carry forward losses which are recognized to the
extent that there is virtual certainty, that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty of
finished goods lying with the Company at the year end and the estimated
future claims expected to be received (based on past experience) within
the warranty period.
(N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options granted to the employees who accepted the grant under the
Company''s Stock Option Plan are accounted in accordance with Securities
and Exchange Board of India (Employees Stock Option Scheme) Guidelines,
1999. The Company follows the intrinsic value method and accordingly,
the excess, if any, of the market price of the underlying equity shares
as of the date of the grant of the option over the exercise price of
the option, is recognized as employee compensation cost and amortized
on straight line basis over the vesting period.
(O) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any
indication that any asset may be x-''-x impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds the recoverable amount, an impairment loss
is recognized in the accounts to the extent the carrying amount exceeds
the recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company''s EPS comprises the
net profit aftertax (and includes the post tax effect of any extra
ordinary items) attributable to equity shareholders. The number of
shares used in computing Basic EPS is the weighted average number of
shares outstanding during the year. The Diluted EPS is calculated on
the same basis as Basic EPS, after adjusting for the effect of
potential dilutive equity shares.
(Q) PROVISIONS AND CONTINGENCIES
A provision is recognized when there is a present obligation, as a
result of a past event, it is probable that an outflow of resources will
be required to settle the obligation and in respect of which reliable
estimate can be made. A disclosure for a contingent liability is made
when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is a
possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure
is made.
(R) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method, whereby a profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flow from operating, financing and investing
activities of the Company is segregated.
Mar 31, 2014
(A) Accounting Conventions
The financial statements are prepared under the historical cost
convention on accrual, prudence and in accordance with the requirements
of the Companies Act, 1956 and in compliance with the applicable px
accounting standards referred to in sub-section (3C) of the Section 211
of the said Act. The accounting
- policies have been consistently applied by the company.
All assets and liabilities have been classified as current &
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI of 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 12 months period for the
purpose of current & non- current classification of assets and
liabilities being a period higher than the company''s operating cycle.
Use of Estimates
The preparation of financial statements is in conformity with the
Generally Accepted Accounting Principles (GAAP), which requires
estimates and assumptions to be made that affect the reportable amount
of assets and liabilities on the date of financial statements and the
reportable amount of revenue and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the year in which the results are known /materialized.
(B) FIXED ASSETS
Tangible Assets
i) Fixed assets (other than revalued Plant & Machinery) are stated at
their original cost including freight, duties, taxes and other
incidental expenses relating to acquisition and installation and are
net of credit available under the Excise/Service Tax CENVAT Scheme and
Value Added Tax (VAT) where applicable.
Ii) Plant and Machinery are stated at revalued amount ascertained by an
independent professional valuer as at Is'' October'' 2010.
iii) Pre-Operative expenditure including borrowing cost (net of
revenue) incurred during the construction / trial run of projects is
allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognized if:
- It is probable that the future economic benefits that are
attributable to the assets wiil fiow to the Company, and ''
- the cost / fair value (as determined by an independent valuer) of the
assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets:
Depreciation on all fixed assets (other than revalued Plant &
Machinery) is charged on the straight linemethod on a pro-rata basis at
the rates prescribed under Schedule XIV to the Companies Act, 1956,
except
for certain fixed assets provided to employees as per the terms of the
employment and certain tools, which . are depreciated over three to
five years based on the useful life to the Company. Where there is a
revision of the estimated useful life of an asset, the unamortized
depreciable amount is charged overthe revised remaining useful life
(subject to minimum rates prescribed under Schedule''XIV to the
Companies Act,1956)
In respect of revalued Plant and Machinery, the'' useful life is
estimated between 6 years to 20 years, as '' certified by an independent
professional valuer. Depreciation is computed on the revalued amount on
remaining usefullife of such assets.
Leasehold land is written-off proportionately over the lease period.
Leasehold Improvements are written off over the period of primary
lease. Capital spares are amortized overthe useful life of the
principal item.
Intangible Assets:
Goodwill is amortized on a straight line basis over a period of five
years
) "Technical Designs / Drawings" and "Software for Internal Use" are
amortized on a straight line basis over
the estimated useful life of the assets which are as under:
- Software for internal use-3 years
- SAP ERP Package - 5 years .
-Technical Designs/Drawings - Useful life ofthe related Plant and
Machinery
(D) INVESTMENTS
Long term investments are stated at cost. However, when there is a
decline, other than temporary, in the value of long term investment, an
appropriate provision is made to recognize such decline. Current ''
investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools,
work-in-process and finished goods are
valued at the lower of cost and net realizable value. Cost for this
purpose is worked out on a moving.
weighted average basis. In ease of finished goods and work-in-process,
appropriate overheads are loaded on absorption costing basis.
Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R & D is charged to the Statement
of Profit and Loss.
ii) Fixed Assets purchased for R & D activities are capitalized in the
year, the same are put to use.
(G) REVENUE
i) Sales are accounted when dispatched and are stated inclusive of
excise duty and net of value added tax, sales tax, trade discount and
sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Company''s contribution to Provident Fund is charged to the
Statement of Profit and Loss.
The Company has taken group policies with the Life Insurance
Corporation of India (LIC) to cover theliabilities towards the
superannuation and gratuity benefits for certain categories of
employees. Trustees
have been appointed for the purpose of administering the superannuation
and gratuity Funds. The '' Company makes provision for the liability for
long term defined benefit schemes of gratuity and leave
encashment for all its employees on the basis of actuarial valuation on
the Balance Sheet date based''on the . Projected Unit Credit Method.
The actuarial valuation of the liability towards gratuity is made on
the basis of assumptions with respect to the variable elements
affecting the computations including estimation of
interest rate of earnings on contribution to LIC, discount rate, future
salary increment; The Company recognizes the actuarial gains and losses
in the Statement of Profit and Loss as income and expense, in the
period in which they occur. .
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign currency transactions are accounted for at the exchange rate
prevailing on the transaction date. Monetary assets and Liabilities
related to foreign currency transactions which remained unsettled at
the end of the year are translated at year-end rates.
ii) The realized and unrealized gains and losses on foreign exchange
transactions are recognized in the Statement of Profit and Loss. In
case of forward contracts associated with underlying assets outstanding
at the Balance Sheet date, the exchange differences on such contracts
are recognized in the Statement of Profit and Loss in the reporting
period. The premium or discount on all such contracts arising at the
inception is amortized as income or expense over the life of the
contract.
(J) BORROWING COSTS .
i) Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset till the date of start of commercial
production
ii) Ancillary costs incurred in connection with the arrangement of
borrowings are amortized over the period
of the borrowing.
iii) Other borrowing costs are recognized as an expense in the period
in which they are incurred. .
(K) LEASES As Lessee:
Lease rentals in respect of assets taken on ''operating lease'' are
charged to the Statement of Profit and Loss
) on a straight line basis over the lease term. .
Finance lease transactions entered are considered as financing
arrangements and the leased asset is capitalized at an amount equal to
the present value of future lease payments and a corresponding amount
is recognized as a liability. The lease payments made are apportioned
between finance charge and '' reduction of outstanding liability in
relation to leased asset.
(L) TAXES ON INCOME Current Tax
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of Income Tax Act,
1961.
Deferred Tax .
Deferred tax is recognized, subject to the consideration of prudence,
as the tax effect of timing difference between the taxable income and
accounting income computed for the current accounting year and
reversal of earlier years'' timing differences.
Deferred tax assets are recognized and carried forward to the extent
that there is a reasonable certainty, except arising from unabsorbed
depreciation and carry forward losses which are recognized to the
extent that there is virtual certainty, that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty of
finished goods lying with the Company at the year end and the estimated
future claims expected to be received (based on past experience) within
the warranty period. . - -
(N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options granted to the employees who accepted the grant under the
Company''s Stock Option Plan
are accounted in accordance with Securities and Exchange Board of India
(Employees Stock Option Scheme).
Guidelines, 1999. The Company follows the intrinsic value method and
accordingly, the excess, if any, of the market price of the underlying
equity shares as of the date of the grant of the option over the
exercise price of the option, is recognized as employee compensation
cost and amortized on straight line basis over the vesting period. ''
(O) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any
indication that any asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying .
amount of the assets exceeds the recoverable amount, an impairment loss
is recognized in the accounts ^ to the extent the carrying amount
exceeds the recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company''s EPS comprises the
net profit aftertax (and includes the post tax effect of any extra
ordinary items) attributable to equity shareholders. The number of
shares used in computing Basic EPS is the weighted average number of
shares outstanding during the year. The Diluted EPS is calculated on
the same basis as Basic EPS, after adjusting for the effect of
potential dilutive equity shares,
(Q) PROVISIONS AND CONTINGENCIES
A provision is recognized when there is a present obligation, as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. A disclosure for a contingent liability
is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where
there is a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no '' provision
or disclosure is made.
(R) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method, whereby a profit
before tax is adjusted for the effects of transactions of non-cash
nature and ariy deferrals or accruals of past or future cash receipts
or payments. The cash flow from operating, financing and investing
activities of the Company is segregated.
Mar 31, 2013
[A} Accounting Conventions
The financial statements are prepared under the historical cost
convention on accrual, prudence and in accordance with the requirements
of the Companies Act, 1956 and in compliance with the applicable
accounting standards referred to in sub-section (3C) of the Section 211
of the said Act. The accounting -.. policies have been consistently
applied by the company.
All assets and liabilities have been classified as current &
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI of 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 12 months period for the
purpose of current & non- current classification of assets and
liabilities being a period higher than the company''s operating cycle.
Use of Estimates
The preparation of financial statements is in conformity with the
Generally Accepted Accounting Principles (GAAP); which requires
estimates and assumptions to be made that affect the reportable amount
of assets and liabilities on the date of financial statements and the
reportable amount of revenue and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the year in which the results are known /materialized.
(B} FIXED ASSETS
-i Tangible Assets
i) Fixed assets {other than revalued Plant & Machinery) are stated at
their original cost including freight, duties, taxes and other
incidental expenses relating to acquisition and installation and are
net of credit available under the Excise/Service Tax CENVAT Scheme and
Value Added Tax (VAT) where applicable.
ii] Plant and Machinery are stated at revalued amount ascertained by an
independent professional valuer as at 1st October''2010.
iii) Pre-Operative expenditure including borrowing cost (net of
revenue) incurred during the construction / trial run of projects is
allocated on an appropriate basis to fixed assets on commissioning,
Intangible Assets
Intangible assets are recognized if:
- It is probable that the future economic benefits that are
attributable to the assets will flow to the Company, and
-the cost/fair value (as determined by an independent valuer) of the
assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets:
Depreciation on all fixed assets (other than revalued Plant &
Machinery} is charged on the straight line method on a pro-rata basis
at the rates prescribed under Schedule XIV to the Companies Act, 1956,
except for certain fixed assets provided to employees as per the
terms of the employment and certain tools, which are depreciated over
three to five years based on the useful life to the Company. Where
there is a revision of the estimated useful life of an asset, the
unamortized depreciable amount is charged over the revised remaining
useful life (subject to minimum rates prescribed under Schedule XIV to
the Companies Act, 1956),
In respect of revalued Plant and Machinery, the useful life is
estimated between 6 years to 20 years, as certified by an independent
professional valuer. Depreciation is computed on the revalued amount on
remaining useful life of such assets.
Leasehold land is written-off proportionately over the lease period.
Leasehold Improvements are written off over the period of primary
lease. Capital spares are amortized over the useful life of the
principal item.
Intangible Assets:
Goodwill is amortized on a straight line basis over a period of five
years.
) "Technical Designs / Drawings" and "Software for Internal Use" are
amortized on a straight line basis over the estimated useful iife of
the assets which are as under:
- Software for internal use - 3 years
- SAP ERP Package - 5 years
- Technical Designs / Drawings - Useful iife of the related Plant and
Machinery
{D) INVESTMENTS
Long term investments are stated at cost. However, when there is a
decline, other than temporary, in the value of long term investment, an
appropriate provision is made to recognize such decline. Current
investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose toofs,
work-in-process and finished goods are valued at the lower of cost and
net realizable value. Cost for this purpose is worked out on a moving
weighted average basis. In case of finished goods and work-in-process,
appropriate overheads are loaded on absorption costing basis.
Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R & D is charged to the Statement
of Profit and Loss.
ii) Fixed Assets purchased for R & D activities are capitalized in the
year, the same are put to use.
(G) REVENUE
i) Saies are accounted when dispatched and are stated inclusive of
excise duty and net of value added tax, sales tax, trade discount and
sales return.
ii) Export incentives are accounted for on an accrual basis.
(H} POST EMPLOYMENT BENEFITS
The Company''s contribution to Provident Fund is charged to the
Statement of Profit and Loss.
The Company has taken group policies with the Life Insurance
Corporation of India (LIC} to cover the liabilities towards the
superannuation and gratuity benefits for certain categories of
employees. Trustees have been appointed for the purpose of
administering the superannuation and gratuity Funds. The Company makes
provision for the liability for long term defined benefit schemes of
gratuity and feave encashment for ali its employees on the basis of
actuarial valuation on the Balance Sheet date based on the Projected
Unit Credit Method. The actuarial valuation of the liability towards
gratuity is made on the basis of assumptions with respect to the
variable elements affecting the computations including estimation of
interest rate of earnings on contribution to LIC, discount rate, future
salary increment. The Company recognizes the actuarial gains and Josses
in the Statement of Profit and Loss as income and expense, in the
period in which they occur.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign currency transactions are accounted for at the exchange rate
prevailing on the transaction date, Monetary assets and Liabilities
related to foreign currency transactions which remained unsettled at
the end of the year are translated at year-end rates.
ii) The realized and unrealized gains and losses on foreign exchange
transactions are recognized in the Statement of Profit and Loss. In
case of forward contracts associated with underlying assets outstanding
at the Balance Sheet date, the exchange differences on such contracts
are recognized in the Statement of Profit and Loss in the reporting
period. The premium or discount on all such contracts arising at the
inception is amortized as income or expense over-heJife of the
contract,
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset till the date of start of commercial
production.
ii) Ancillary costs incurred in connection with the arrangement of
borrowings are amortized over the period of the borrowing.
iii) Other borrowing costs are recognized as an expense in the period
in which they are incurred.
(K) LEASES
As Lessee:
Lease rentals in respect of assets taken on ''operating lease'' are
charged to the Statement of Profit and Loss '' ) on a straight line
basis over the lease term.
Finance lease transactions entered are considered as financing
arrangements and the leased asset is capitalized at an amount equal to
the present value of future [ease payments and a corresponding amount
is recognized as a liability. The Jease payments made are apportioned
between finance charge and reduction of outstanding liability in
relation to leased asset.
(L) TAXES ON INCOME
Current Tax
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of Income Tax Act,
1961.
Deferred Tax
Deferred tax is recognized, subject to the consideration of prudence,
as the tax effect of timing difference between the taxable income and
accounting income computed for the current accounting year and reversal
of earlier years'' timing differences.
Deferred tax assets are recognized and carried forward to the extent
that there is a reasonable certainty, except arising from unabsorbed
depreciation and carry forward losses which are recognized to the
extent that there is virtual certainty, that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
{M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty of
finished goods iying with the Company at the year end and the estimated
future claims expected to be received (based on past experience) within
the warranty period.
[N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options granted to the employees who accepted the grant under the
Company''s Stock Option Plan are accounted in accordance with Securities
and Exchange Board of India (Employees Stock Option Scheme) Guidelines,
1999. The Company follows the intrinsic value method and accordingly,
the excess, if any, of the market price of the underlying equity shares
as of the date of the grant of the option over the exercise price of
the option, is recognized as employee compensation cost and amortized
on straight line basis over the vesting period.
(0) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any
indication that any asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount. If the carrying
amount of the assets exceeds the recoverable amount, an impairment loss
is recognized in the accounts to the extent the carrying amount
exceedsthe recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company''s EPS comprises the
net profit after tax (and includes the post tax effect of any extra
ordinary items} attributable to equity shareholders. The number of
shares used in computing Basic EPS is the weighted average number of
shares outstanding during the year. The Diluted EPS is calculated on
the same basis as Basic EPS, after adjusting for the effect of
potential dilutive equity shares,
(OJ PROVISIONS AND CONTINGENCIES
A provision is recognized when there is a present obligation, as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. A disclosure for a contingent liability
is made when there is a possible obfigation or a present obligation
that may, but probably will not, require an outflow of resources. Where
there is a possible --\ obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.
{R} CASH FLOW STATEMENT
Cash Flows are reported using the indirect method, whereby a profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flow from operating, financing and investing
activities of the company is segregated.
Mar 31, 2012
(A) Accounting Conventions
The financial statements are prepared under the historical cost convention on accrual, prudence and in accordance with the requirements of the Companies Act, 1956 and in compliance with the applicable accounting standards referred to in sub-section (3C) of the Section 211 of the said Act. The accounting policies have been consistently applied by the company.
All assets and liabilities have been classified as current & non-current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule VI of 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 12 months period for the purpose of current & non- current classification of assets and liabilities being a period higher than the company's operating cycle.
Use of Estimates
The preparation of financial statements is in conformity with the Generally Accepted Accounting Principles (GAAP), which requires estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the year in which the results are known /materialized.
(B) FIXED ASSETS Tangible Assets
i) Fixed assets (other than revalued Plant & Machinery) are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit available under the Excise / Service Tax CENVAT Scheme and Value Added Tax (VAT) where applicable.
ii) Plant and Machinery are stated at revalued amount ascertained by an independent professional valuer as at 1st October' 2010.
iii) Pre-Operative expenditure including borrowing cost (net of revenue) incurred during the construction / trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognized if:
- It is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost / fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION Fixed Assets:
Depreciation on all fixed assets (other than revalued Plant & Machinery) is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except for certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the unamortized depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
In respect of revalued Plant and Machinery the useful life is estimated between 6 years to 20 years, as certified by an independent professional valuer. Depreciation is computed on the revalued amount on remaining useful life of such assets.
Leasehold land is written-off proportionately over the lease period. Leasehold Improvements are written off over the period of primary lease. Capital spares are amortized over the useful life of the principal item.
Intangible Assets:
Goodwill is amortized on a straight line basis over a period of five years.
"Technical Designs / Drawings" and "Software for Internal Use" are amortized on a straight line basis over the estimated useful life of the assets which are as under:
- Software for internal use - 3 years
- SAP ERP Package - 5 years
- Technical Designs / Drawings - Useful life of the related Plant and Machinery
(D) INVESTMENTS
Long term investments are stated at cost. However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognize such decline. Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realizable value. Cost for this purpose is worked out on a moving weighted average basis. In case of finished goods and work-in- process, appropriate overheads are loaded on absorption costing basis.
Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R & D)
i) Revenue expenditure incurred for R & D is charged to the Statement of Profit and Loss.
ii) Fixed Assets purchased for R & D activities are capitalized in the year, the same are put to use.
(G) REVENUE
i) Sales are accounted when dispatched and are stated inclusive of excise duty and net of value added tax, sales tax, trade discount and sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Company's contribution to Provident Fund is charged to the Statement of Profit and Loss.
The Company has taken group policies with the Life Insurance Corporation of India (LIC) to cover the liabilities towards the superannuation and gratuity benefits for certain categories of employees. Trustees have been appointed for the purpose of administering the superannuation and gratuity Funds. The Company makes provision for the liability for long term defined benefit schemes of gratuity and leave encashment for all its employees on the basis of actuarial valuation on the Balance Sheet date based on the Projected Unit Credit Method. The actuarial valuation of the liability towards gratuity is made on the basis of assumptions with respect to the variable elements affecting the computations including estimation of interest rate of earnings on contribution to LIC, discount rate, future salary increment. The Company recognizes the actuarial gains and losses in the Statement of Profit and Loss as income and expense, in the period in which they occur.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and Liabilities related to foreign currency transactions remained unsettled at the end of the year are translated at year-end rates.
ii) The realized and unrealized gains and losses on foreign exchange transactions are recognized in the Statement of Profit and Loss. In case of forward contracts associated with underlying assets outstanding at the Balance Sheet date, the exchange differences on such contracts are recognized in the Statement of Profit and Loss in the reporting period. The premium or discount on all such contracts arising at the inception is amortized as income or expense over the life of the contract.
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset till the date of start of commercial production.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortized over the period of the borrowing.
iii) Other borrowing costs are recognized as an expense in the period in which they are incurred.
(K) LEASES As Lessee:
Lease rentals in respect of assets taken on 'operating lease' are charged to the Statement of Profit and Loss on a straight line basis over the lease term.
Finance lease transactions entered are considered as financing arrangements and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognized as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to leased asset.
(L) TAXES ON INCOME Current Tax:
Provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provision of Income Tax Act, 1961.
Deferred Tax:
Deferred tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting income computed for the current accounting year and reversal of earlier years' timing differences.
Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses which are recognized to the extent that there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty of finished goods lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options granted to the employees who accepted the grant under the Company's Stock Option Plan are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme) Guidelines, 1999. The Company follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognized as employee compensation cost and amortized on straight line basis over the vesting period.
(O) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognized in the accounts to the extent the carrying amount exceeds the recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company's EPS comprises the net profit after tax (and includes the post tax effect of any extra ordinary items) attributable to equity shareholders. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The Diluted EPS is calculated on the same basis as Basic EPS, after adjusting for the effect of potential dilutive equity shares.
(Q) PROVISIONS AND CONTINGENCIES
A provision is recognized when there is a present obligation, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
(R) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method, whereby a profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operating, financing and investing activities of the company is segregated.
Mar 31, 2011
(A) GENERAL
The financial statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards notified under section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956.
(B) FIXED ASSETS
Tangible Assets
i) Fixed assets (other than revalued Plant & Machinery) are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit available under the excise / service tax CENVAT scheme and value added tax where applicable.
ii) Plant and Machinery are stated at revalued amount ascertained by an independent professional valuer as at 1st October'2010.
iii) Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction / trial. run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost / fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets:
Depreciation on all fixed assets (other than revalued plant & machinery) is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except for certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the un amortised depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
In respect of revalued Plant and Machinery the useful life is estimated between 6 years to 20 years, as certified by an independent professional valuer. Depreciation is computed on the revalued amount on remaining useful life of such assets.
Leasehold land is written-off proportionately over the lease period.
Leasehold Improvements are written off over the period of primary lease.
Capital spares are amortised over the useful life of the principal item.
Intangible Assets:
Goodwill is amortised on a straight line basis over a period of five years.
"Technical Designs / Drawings" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
- Software for internal use - 3 years
- SAP ERP Package - 5 years
- Technical Designs / Drawings - Useful life of the related Plant and Machinery
(D) INVESTMENTS
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a moving weighted average basis. In case of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis.
Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed Assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of value added tax, sales tax, trade discounts and sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Company's contribution to Provident Fund is charged to the Profit and Loss Account.
The Company has taken group policies with the Life Insurance Corporation of India (LIC) to cover the liabilities towards the Superannuation and Gratuity benefits for certain categories of employees. Trustees have been appointed for the purpose of administering the Superannuation and Gratuity Funds.The Company makes provision for the liability for long term defined benefit schemes of gratuity and leave encashment for all its employees on the basis of actuarial valuation on the Balance Sheet date based on the Projected Unit Credit Method. The actuarial valuation of the liability towards Gratuity is made on the basis of assumptions with respect to the variable elements affecting the computations including estimation of interest rate of earnings on contributions to LIC, discount rate, future salary increases. The Company recognises the actuarial gains and losses in the Profit and Loss account as income and expense in the period in which they occur.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss account. For forward contracts associated with underlying out standings at the Balance Sheet date, the exchange difference on such contracts are recognised in the profit and loss account in the reporting period in which exchange rates changes. The premium or discount on all such contracts arising at the inception are amortised as income or expense over the life of the contract.
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset upto the date of start of commercial production.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES
As Lessee
Lease rentals in respect of assets taken on 'operating lease' are charged to the Profit and Loss account on a straight line basis over the lease term.
Finance lease transactions entered are considered as financing arrangements and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognised as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to leased asset.
(L) TAXATION
Tax expense for the year comprises of current tax, deferred tax and Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961.
Deferred Income Tax reflects the effect of temporary timing differences between the assets and liabilities recognised for financial reporting purposes and the amounts that are recognised for Income Tax purposes.
Deferred' tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by the Balance Sheet date.
Deferred fax assets in case of carry forward of losses / depreciation are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available. In all other cases deferred tax asset is recognised, where there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty of finished goods lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options' granted to the employees who accepted the grant under the Company's Stock Option Plan are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme) Guidelines, 1999. The Company follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognized as employee compensation cost and amortised on straight line basis over the vesting period.
(O) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognised in the accounts to the extent the carrying amount exceeds the recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company's EPS comprises the net profit after tax (and includes the post tax effect of any extra ordinary items) attributable to equity shareholders. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effect of potential dilutive equity shares.
(Q) PROVISIONS AND CONTINGENCIES
A provision is recognised when there is a present obligation, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Mar 31, 2010
(A) GENERAL
The financial statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards notified under section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956.
(B) FIXED ASSETS
Tangible Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit available under the excise / service tax CENVAT scheme and value added tax where applicable.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except for certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the un amortised depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
Leasehold land is written-off proportionately over the lease period.
Leasehold Improvements are written off over the period of primary lease.
Capital spares are amortised over the useful life of the principal item.
Intangible Assets
Goodwill is amortised on a straight line basis over a period of five years.
"Technical Designs / Drawings" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
- Software for internal use - 3 years
- SAP ERP Package - 5 years
- Technical Designs / Drawings - Useful life of the related Plant and Machinery
(D) INVESTMENTS
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a moving weighted average basis. In case of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed Assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of value added tax, sales tax, trade discounts and sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Companys contribution to Provident Fund is charged to the Profit and Loss Account.
The Company has taken group policies with the Life Insurance Corporation of India (LIC) to cover the liabilities towards the Superannuation and Gratuity benefits for certain categories of employees. Trustees have been appointed for the purpose of administering the Superannuation and Gratuity Funds. The Company makes provision for the liability for long term defined benefit schemes of gratuity and leave encashment for all its employees on the basis of actuarial valuation on the Balance Sheet date based on the Projected Unit Credit Method. The actuarial valuation of the liability towards Gratuity is made on the basis of assumptions with respect to the variable elements affecting the computations including estimation of interest rate of earnings on contributions to LIC, discount rate, future salary increases. The Company recognises the actuarial gains and losses in the Profit and Loss account as income and expense in the period in which they occur.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss account. For forward contracts associated with underlying out standings at the Balance Sheet date, the exchange difference on such contracts are recognised in the profit and loss account in the reporting period in which exchange rates changes. The premium or discount on all such contracts arising at the inception are amortised as in income or expense over the life of the contract.
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset upto the date of start of commercial production.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES
As Lessee
Lease rentals in respect of assets taken on operating lease are charged to the Profit and Loss account on a straight line basis over the lease term.
Finance lease transactions entered are considered as financing arrangements and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognised as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to leased asset,
(L) TAXATION
Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provisions of the income Tax Act, 1961.
Deferred Income Tax reflects the effect of temporary timing differences between the assets and liabilities recognised for financial reporting purposes and the amounts that are recognised for Income Tax purposes.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by the Balance Sheet date.
Deferred tax assets in case of carry forward of losses / depreciation are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available. In all other cases deferred tax asset is recognised, where there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty of finished goods lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options granted to the employees who accepted the grant under the Companys Stock Option Ptan are accounted in accordance with Securities and Exchange Board of India (E:mployees Stock Option Scheme) Guidelines, 1999. The Company follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognized as employee compensation cost and amortised on straight line basis over the vesting period.
(O) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount, if the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognised in the accounts to the extent the carrying amount exceeds the recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Companys EPS comprises the net profit after tax (and includes the post tax effect of any extra ordinary items) attributable to equity shareholders. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effect of potential dilutive equity shares.
(Q) PROVISIONS AND CONTINGENCIES
A provision is recognised when there is a present obligation, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Mar 31, 2009
(A) GENERAL
The financial statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.
(B) FIXED ASSETS
Tangible Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit under the excise CENVAT scheme where applicable.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if:
it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except for certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the unamortised depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
Leasehold land is written-off proportionately over the lease period.
Leasehold Improvements are written off over the period of primary lease.
Capital spares are amortised over the useful life of the principal item.
Intangible Assets
Goodwill is amortised on a straight line basis over a period of five years.
"Technical Designs / Drawings" and "Software for Internal Use" are amortised on straight line basis over the estimated useful lives of the assets which are as under:
Software for internal use - 3 years
SAP ERP Package - 5 years
- Technical Designs / Drawings - Useful life of the related Plant and Machinery
(D) INVESTMENTS
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a moving weighted average basis. In case of finished goods and work-in-process,
appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed Assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Companys contribution to Provident Fund is charged to the Profit and Loss Account.
The Company has taken group policies with the Life Insurance Corporation of India (LIC) to cover the liabilities towards the Superannuation and Gratuity benefits for certain categories of employees. Trustees have been appointed for the purpose of administering the Superannuation and Gratuity Funds.
The Company provides for long term defined benefit schemes of gratuity and leave encashment for all its employees on the basis of actuarial valuation on the Balance Sheet date based on the Projected Unit Credit Method. The actuarial valuation of the liability towards Gratuity is made on the basis of assumptions with respect to the variable elements affecting the computations including estimation of interest rate of earnings on contributions to LIC, discount rate, future salary increases. The Company recognises the actuarial gains and losses in the Profit and Loss account as income and expense in the period in which they occur.
(I) FOREIGN CURRENCYTRANSACTIONS
i) Foreign currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss account. For forward contracts associated with underlying out standings at the Balance Sheet date, the exchange difference on such contracts are recognised in the profit and loss account in the reporting period in which exchange rates changes. The premium or discount on all such contracts arising at the inception are amortised as in income or expense over the life of the contract.
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset upto the date of start of commercial production.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES
As Lessee
Lease rentals in respect of assets taken on operating lease are charged to the Profit and Loss account on a straight line basis over the lease term.
Finance lease transactions entered are considered as financing arrangements and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognised as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to leased asset.
(L) TAXATION
Tax expense for the year comprises of current tax, deferred tax and fringe benefit tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961.
Deferred Income Tax reflects the effect of temporary timing differences between the assets and liabilities recognised for financial reporting purposes and the amounts that are recognised for Income Tax purposes.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by the Balance Sheet date.
Deferred tax assets in case of carry forward of losses / depreciation are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available. In all other cases deferred tax asset is recognised, where there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
Fringe Benefits Tax is determined at current applicable rates on expenses falling within the ambit of Fringe Benefits as defined under the Income Tax Act, 1961.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty tubes lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options granted to the employees who accepted the grant under the Companys Stock Option Plan are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme) Guidelines, 1999. The Company follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognized as employee compensation cost and amortised on straight line basis over the vesting period.
(O) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognised in the accounts to the extent the carrying amount exceeds the recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Companys EPS comprises the net profit after tax (and includes the post tax effect of any extra ordinary items) attributable to equity shareholders. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effect of potential dilutive equity shares.
(Q) PROVISIONS AND CONTINGENCIES
A provision is recognised when there is a present obligation, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Jun 30, 2008
(A) GENERAL
The Financial Statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards notified u/s 211(3C)of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.
(B) FIXED ASSETS/INTANGIBLE ASSETS
Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit under the excise CENVAT scheme where applicable.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except for certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the unamortised depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
Leasehold land is written-off proportionately over the lease period.
Capital spares are amortised over the useful life of the principal item.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Intangible Assets
Goodwill is amortised on a straight line basis over a period of five years.
"Technical Designs/Drawings" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
- Software for internal use- 3 years
- SAP ERP Package-5 years
- Technical Designs / Drawings - Useful life of the related Plant and Machinery
(D) INVESTMENTS
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a moving weighted average basis.
In case of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
I) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed Assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Companys contribution to Provident Fund is charged to the Profit and Loss Account.
The Company has taken group policies with the Life Insurance Corporation of India (LIC) to cover the liabilities towards the Superannuation and Gratuity benefits for certain categories of employees. Trustees have been appointed for the purpose of administering the Superannuation and Gratuity Funds. The Company provides for long term defined benefit schemes of gratuity and leave encashment for all its employees on the basis of actuarial valuation on the Balance Sheet date based on the Projected Unit Credit Method. The actuarial valuation of the liability towards Gratuity is made on the basis of assumptions with respect to the variable elements affecting the computations including estimation of interest rate of earnings on contributions to LIC, discount rate, future salary increases. The Company recognises the actuarial gains and losses in the Profit and Loss account as income and expense in the period in which they occur.
(I) FOREIGN CURRENCY TRANSACTIONS
I) Foreign currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss account. For forward contracts associated with underlying out standings at the Balance Sheet date, the exchange difference on such contracts are recognised in the profit and loss account in the reporting period in which exchange rates changes. The premium or discount on all such contracts arising at the inception are amortised as in income or expense over the life of the contract.
(J) BORROWING COSTS
I) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset upto the date of start of commercial production.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES
As Lessee
Lease rentals in respect of assets taken on operating lease are charged to the Profit and Loss account on a straight line basis over the lease term.
Finance lease transactions entered are considered as financing arrangements and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognised as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to leased asset.
(L) TAXATION
Tax expense for the year comprises of current tax, deferred tax and fringe benefit tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961.
Deferred Income Tax reflects the effect of temporary timing differences between the assets and liabilities recognised for financial reporting purposes and the amounts that are recognised for Income Tax purposes.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by the Balance Sheet date.
Deferred tax assets in case of carry forward of losses are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available. In all other cases deferred tax asset is recognised, where there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
Fringe Benefits Tax is determined at current applicable rates on expenses falling within the ambit of Fringe Benefits as defined under the Income Tax Act, 1961.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty tubes lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) EMPLOYEE STOCK OPTION BASED COMPENSATION
Stock options granted to the employees who accepted the grant under the Companys Stock Option Plan are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme) Guidelines, 1999. The Company follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognized as employee compensation cost and amortised on straight line basis over the vesting period.
(O) IMPAIRMENT OF ASSETS
At each balance sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognised in the accounts to the extent the carrying amount exceeds the recoverable amount.
(P) EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Companys EPS comprises the net profit after tax (and includes the post tax effect of any extra ordinary items) attributable to equity shareholders. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effect of potential dilutive equity shares.
(Q) PROVISIONS AND CONTINGENCIES
A provision is recognised when there is a present obligation, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Jun 30, 2007
(A) GENERAL
The accounts of the Company are prepared on an accrual basis, under the historical cost convention and in accordance with the requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) FIXED ASSETS / INTANGIBLE ASSETS
Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit under the excise CENVAT scheme where applicable. Exchange difference in respect of liabilities incurred to acquire fixed assets from outside India, including gains/losses arising from forward contracts, is adjusted to the carrying amount of fixed assets.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except for certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the unamortised depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
Leasehold land is written off proportionately over the lease period.
Capital spares are amortised over the useful life of the principal item.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Intangible Assets
Goodwill is amortised on a straight line basis over a period of five years.
"Technical Designs / Drawing" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
- Software for internal use - 3 years
- SAP ERP Package - 5 years
- Technical Designs / Drawings - Useful life of the related Plant and Machinery.
(D) INVESTMENTS
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose, tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a moving weighted average basis. In case
of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed Assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return,
ii) Export incentives are accounted for on an accrual basis.
(H) POST EMPLOYMENT BENEFITS
The Companys contribution to Provident Fund is charged to the Profit and Loss Account.
The Company has taken group policies with the Life Insurance Corporation of India (LIC) to cover the liabilities towards the Superannuation and Gratuity benfits. Trustees have been appointed for the purpose of administering the Superannuation and Gratuity Funds. The Company provides for long term defined benefit scheme of gratuity and leave encashment on the basis of actuarial valuation on the Balance Sheet date based on the Projected Unit Credit Method. The actuarial valuation of the liability towards Gratuity is made on the basis of assumptions with respect to the variable elements affecting the computations including estimation of interest rate fo earnings on contributions to LIC discount rate, future salary increases. The Company recognises the actuarial gains and losses in the Profit and Loss account as income and expense in the period in which they occur.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets acquired from outside India, are recognised in the Profit and Loss account. For forward contracts associated with underlying outstandings at the Balance Sheet date, the exchange difference on such contracts are recoginsed in the profit and loss account in the reporting period in which exchange rates changes. The Premium or discount on all such contracts arising at the inception are amortised as in income or expense over the life of the contract.
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset upto the date of start of commercial production..
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing,
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES
As Lessor
Fixed assets given under Finance Lease are recognised as a receivable at an amount equal to the net investment in the lease Lease rentals are apportioned between principal and interest using the internal rate of return (IRR) method and finance income is accordingly recognised.
As Lessee
Lease rentals in respect of assets taken on operating lease are charged to the Profit and Loss account on a straight line basis over the lease term.
(L) TAXATION
Tax expense for the year, comprises of current tax, deferred tax and fringe benefit tax. Current taxes are measured at the current rate of tax in accordance with provisions of the income Tax Act, 1961.
Deferred Income Tax reflects the effect of temporary timing differences between the assets and liabilities recognised for financial reporting purpose and the amounts that are recongnised for Income Tax purposes.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subse- quently enacted by the Balance Sheet date.
Deferred tax assets in case of carry forward of losses are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available. In all other cases deferred tax asset is recongnised, where there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
Fringe Benefits Tax is determined at Current applicable rates on expenses falling within the ambit of Fringe Benefits as defined under the Income Tax Act, 1961.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty tubes lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) IMPAIRMENT OF ASSETS
At each Balance Sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognised in the accounts to the extent the carrying amount exceeds, the recoverable amount.
(O) PROVISIONS AND CONTINGENCIES
A provision is recongnised when there is a present obligation, as result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liablitity is made when there is a possible obligation or a present obligation that may, but probably will not, require an ourflow of resources. Where there is a possible obligation or a present obligation in respect of which the liklihood of outflow or resources is remote, no provision or disclosure is made.
Mar 31, 2006
(A) GENERAL
The accounts of the Company are prepared on an accrual basis, under the historical cost convention and in accordance with the requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) FIXED ASSETS/INTANGIBLE ASSETS
Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit under the excise CENVAT scheme where applicable. Exchange difference in respect of liabilities incurred to acquire fixed assets from outside India, including gains/losses arising from forward contracts, is adjusted to the carrying amount of fixed assets.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except for certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the unamortised depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
Leasehold land is written off proportionately over the lease period.
Capital spares are amortised over the useful life of the principal item.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Intangible Assets
Goodwill is amortised on a straight line basis over a period of five years.
Technical Designs/Drawing" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
- Software for internal use - 3 years
- SAP ERP Package - 5 years
- Technical Designs/Drawings - Useful life of the related Plant and Machinery.
(D) INVESTMENTS
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a moving weighted average basis. In case
of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed Assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) RETIREMENT BENEFITS
The Company contributes to approved Gratuity and Superannuation Trusts to provide for the liability in respect of retirement benefits, as per the Companys scheme for its managerial staff. Shortfall, if any, between the amount as actuarially determined as at the balance sheet date and the balance in the funds, is additionally provided for in the accounts. For others, gratuity has been provided as per actuarial valuation as at the balance sheet date. Liability for leave encashment is provided as per actuarial valuation as at the balance sheet date.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets acquired from outside India, are recognised in the Profit and Loss account. In respect of transactions covered by forward exchange contracts, other than those relating to fixed assets acquired from outside India, the difference between the contract rate and the spot rate on the date of transaction is charged/credited to the Profit and Loss account over the life of the contract. (Also refer to (B) above).
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES As Lessor
Fixed assets given under Finance Lease are recognised as a receivable at an amount equal to the net investment in the lease. Lease rentals are apportioned between principal and interest using the internal rate of return (IRR) method and finance income is accordingly recognised.
As Lessee
Lease rentals in respect of assets taken on `operating lease are charged to the Profit and Loss account on a straight line basis over the lease term.
(L) TAXATION
Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit(loss) for the period.
Current tax is determined on the basis of tax liability on the total income computed under the provisions of Income Tax Act, 1961, or tax liability determined under section 115JB "Minimum Alternate Tax" (MAT) of the Income tax Act, 1961, whichever is applicable.
Provision is made for deferred tax for all timing differences arising between taxable income and accounting income at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against which such deferred tax assets can be realised.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty tubes lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) IMPAIRMENT OF ASSETS
At each Balance Sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognised in the accounts to the extent the carrying amount exceeds, the recoverable amount.
Mar 31, 2005
(A) GENERAL
The accounts of the Company are prepared on an accrual basis, under the historical cost convention and in accordance with the requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) FIXED ASSETS/INTANGIBLE ASSETS
Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit under the excise CENVAT scheme where applicable. Exchange difference in respect of liabilities incurred to acquire fixed assets from outside India, including gains/losses arising from forward contracts, is adjusted to the carrying amount of fixed assets.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except, in case of certain fixed assets provided to employees as per the terms of the employment and certain tools, which are depreciated over three to five years based on the useful life to the Company. Where there is a revision of the estimated useful life of an asset, the unamortised depreciable amount is charged over the revised remaining useful life (subject to minimum rates prescribed under Schedule XIV to the Companies Act, 1956).
Leasehold land is written off proportionately over the lease period.
Capital spares are amortised over the useful life of the principal item.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Intangible Assets
Goodwill is amortised on a straight line basis over a period of five years.
`Technical Designs/Drawing" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
- Software for internal use - 3 years
- SAP ERP Package - 5 years
- Technical Designs/Drawings - Useful life of the related Plant and Machinery.
(D) INVESTMENTS
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a moving weighted average basis. In case of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed Assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return.
ii) Export incentives are accounted for on an accrual basis.
(H) RETIREMENT BENEFITS
The Company contributes to approved Gratuity and Superannuation Trusts to provide for the liability in respect of retirement benefits, as per the Companys scheme for its managerial staff. Shortfall, if any, between the amount as actuarially determined as at the balance sheet date and the balance in the funds, is additionally provided for in the accounts. For others, gratuity has been provided as per actuarial valuation as at the balance sheet date.
Liability for leave encashment is provided as per actuarial valuation as at the balance sheet date.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets acquired from outside India, are recognised in the Profit and Loss account. In respect of transactions covered by forward exchange contracts, other than those relating to fixed assets acquired from outside India, the difference between the contract rate and the spot rate on the date of transaction is charged/credited to the Profit and Loss account over the life of the contract. (Also refer to (B) above).
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES As Lessor
Fixed assets given under `Finance Lease` are recognised as a receivable at an amount equal to the net investment in the lease. Lease rentals are apportioned between principal and interest using the internal rate of return (IRR) method and finance income is accordingly recognised.
As Lessee
Lease rentals in respect of assets taken on `operating lease` are charged to the Profit and Loss account on a straight line basis over the lease term.
(L) TAXATION
Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit/(loss) for the year.
Current tax is determined on the basis of tax liability on the total income computed under the provisions of Income Tax Act, 1961 or tax liability determined under section 115JB "Minimum Alternate Tax" (MAT) of the Income tax Act, 1961 whichever is applicable.
Provision is made for deferred tax for all timing differences arising between taxable income and accounting income at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against which such deferred tax assets can be realised.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty tubes lying with the Company at the year end and the estimated future claims expected to be received (based on past experience) within the warranty period.
(N) IMPAIRMENT OF ASSETS
At each Balance Sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds the recoverable amount, an impairment loss is recognised in the accounts to the extent the carrying amount exceeds, the recoverable amount.
Mar 31, 2004
(A) GENERAL
The accounts of the Company are prepared on an accrual basis, under the historical cost convention and in accordance with the requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) FIXED ASSETS/INTANGIBLE ASSETS
Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit under the excise CENVAT scheme where applicable. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if and only if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Tangible Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except, in case of certain fixed assets provided to employees as per the terms of the employment, which are depreciated over three to five years based on the useful life to the Company.
Lease hold land is written off proportionately over the lease period.
Capital spares are amortised over the useful life of the principal item.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Intangibles
Goodwill is amortised on a straight line basis over a period of five years.
"Technical Designs/Drawings" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
- Software for internal use - 3 years
- Technical Designs/Drawings - Useful life of the related Plant and Machinery
(D) INVESTMENT
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and fair value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a monthly weighted average basis. In case of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Fixed assets purchased for R&D activities are capitalised in the year the same are put to use.
(G) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return.
ii) Duty drawback and Advance Licences/DEPB are accounted for on an accrual basis. Special import licences are accounted for in the year of sale.
(H) RETIREMENT BENEFITS
The Company contributes to approved Gratuity and Superannuation Trusts to provide for the liability in respect of retirement benefits, as per Company's scheme for its managerial staff. Shortfall, if any, between the amount as actuariaty determined as at the balance sheet date and the balance in the funds is additionally provided for in the accounts. For others, gratuity has been provided as per actuarial valuation as at the Balance Sheet date.
Liability for leave encashment is provided as per actuarial valuation as at the balance sheet date.
(I) FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognised in the Profit and Loss account. In respect of transactions covered by forward exchange contracts, other than those relating to fixed assets, the difference between the contract rate and the spot rate on the date of transaction is charged/credited to the profit and loss account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
(J) BORROWING COSTS
i) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
hi) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(K) LEASES
As Lessor
Fixed assets given under `Finance Lease' are recognised as a receivable at an amount equal to the net investment in the lease. Lease rentals are apportioned between principal and interest using the internal rate of return (IRR) method and finance income is accordingly recognised.
As Lessee
Lease rentals in respect of assets taken on `operating lease' are charged to the profit and loss account on a straight line basis over the lease term.
(L) TAXATION
Tax expense for the year, comprising current tax and deferred tax is included in determining the net profitless) for the year.
Current tax is determined on the basis of tax liability on the total income computed under the provisions of Income Tax Act, 1961 or tax liability determined under section 115JB "Minimum Alternate Tax" (MAT) of the Income tax Act, 1961, whichever is applicable.
Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against which such deferred tax assets can be realised.
Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.
(M) WARRANTY
Warranty cost is provided on the basis of average cost of warranty tubes lying with the Company at the year end and the estimated future claims expected to be received (based on past experience).
Mar 31, 2003
(A) GENERAL
The accounts of the Company are prepared on an accrual basis, under the historical cost convention and in accordance with the requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) FIXED ASSETS/INTANGIBLE ASSETS
Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to - acquisition and installation and are net of credit under the excise CENVAT scheme where applicable. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
Intangible Assets
Intangible assets are recognised if and only if:
- it is probable that the future economic benefits that are attributable to the assets will flow to the Company, and
- the cost/fair value (as determined by an independent valuer) of the assets can be measured reliably.
(C) DEPRECIATION/AMORTISATION
Tangible Fixed Assets
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except, in case of certain fixed assets provided to employees as per the terms of the employment, which are depreciated over three to five years based on the useful life to the Company.
Lease hold land is written off proportionately over the lease period.
Capital spares are amortised over the useful life of the principal item.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Intangibles
Goodwill is amortised on a straight line basis over a period of five years.
"Technical Designs/Drawings" and "Software for Internal Use" are amortised on a straight line basis over the estimated useful lives of the assets which are as under:
* Software for internal use - 3 years
* Technical Designs/Drawings - Useful life of the related Plant and Machinery
(D) INVESTMENT
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline. Current investments are valued at the lower of cost and market value.
(E) INVENTORIES
Raw materials and components, stores and spares, loose tools, work-in-process and finished goods are valued at the
lower of cost and net realisable value. Cost for this purpose is worked out on a monthly weighted average basis. In case of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) MISCELLANEOUS EXPENDITURE
Deferred Revenue Expenditure:-
Revenue expenditure having endurable benefit is amortized over a period of 3-5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(G) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Assets purchased for R&D activities are capitalised in the year the same are put to use.
(H) REVENUE
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return.
ii) Duty drawback and Advance Licences/DEPB are accounted for on an accrual basis. Special import licences are accounted for in the year of sale.
(I) RETIREMENT BENEFITS
The Company has contributed to approved Gratuity and Superannuation Trusts to provide for the liability in respect of retirement benefits, as per Companys scheme for its managerial staff. For others, gratuity has been provided as per actuarial valuation as at the year end.
Liability for leave encashment is provided as per actuarial valuation as at the year end.
(J) FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognised in the Profit and Loss account. In respect of transactions covered by forward exchange contracts, other than relating to fixed assets, the difference between the contract rate and the spot rate on the date of transaction is charged to the profit and loss account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
(K) BORROWING COSTS
i) Borrowing cost that are directly attributable to the acquisition, construction or prduction of an asset are capitalised as part of the cost of that asset.
ii) Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of the borrowing.
iii) Other borrowing costs are recognised as an expense in the period in which they are incurred.
(L) LEASES
As Lessor
Fixed assets given under `Finance Lease` are recognised as a receivable at an amount equal to the net investment in the lease. Lease rentals are apportioned between principal and interest using the internal rate of return (IRR) method and finance income is accordingly recognised. As Lessee Lease rentals in respect of assets taken on `operating lease` are charged to the profit and loss account on a straight line basis over the lease term.
(M) TAXATION
Tax expense for the year, comprising current tax and deferred tax is included in determining the net profi/(loss) for the year.
Current tax is determined on the basis of tax liability on the total income computed under the provisions of Income Tax Act, 1961 or tax liability determined under seciton 115JB "Minimum Alternate Tax" (MAT) of the Income tax Act, 1961, whichever is applicable. Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.
(N) WARRANTY
Warranty cost is provided on the basis of average cost of warranty tubes lying with the Company at the year end and the estimated future claims expected to be received (based on past experience).
Mar 31, 2002
(A) General
The accounts of the Company are prepared on an accrual basis, under the historical cost convention and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit under the excise CENVAT scheme where applicable. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on Commissioning.
(C) Depreciation/Amortisation
Depreciation on all fixed assets is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956, except, in case of certain fixed assets provided to employees as per the terms of the employment, which are depreciated over three to five years based on the useful life to the Company. Lease hold land is written off proportionately over the lease period. Capital spares are amortised over the useful life of the principal item. Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
(D) Investment
Long term investments are stated at cost.
However, when there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and market value.
(E) Inventories
Inventories are valued at the lower of cost and net realisable value. Cost for this purpose is worked out on a monthly weighted average basis. In case of finished goods and work-in-process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) Miscellaneous Expenditure
Deferred Revenue Expenditure:-
Revenue expenditure having endurable benefit is amortized over a period of 3-5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(G) Research And Development (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Assets purchased for R&D activities are capitalised in the year the same are put to use.
(H) Revenue
i) Sales are accounted for on despatch and are stated inclusive of excise duty and net of sales tax, trade discounts and sales return.
ii) Duty drawback and Advance Licences/DEPB are accounted for on an accrual basis. Special import licences are accounted for in the year of sale.
(I) Retirement Benefits
The Company has contributed to approved Gratuity and Superannuation Trusts to provide for the liability in respect of retirement benefits, as per Company's scheme for its managerial staff. For others, gratuity has been provided as per actuarial valuation. Liability for leave encashment is provided as per actuarial valuation.
(J) Foreign Currency Transactions
i) Foreign Currency transactions are accounted for at the exchange rate prevailing on the transaction date. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognised in the Profit and Loss account. In respect of transactions covered by forward exchange contracts, other than relating to fixed assets, the difference between the contract rate and the spot rate on the date of transaction is charged to the profit and loss account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
(K) BORROWING COSTS
Borrowing cost that are directly attributable to the acquisition, construction or production of an asset are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
(L) Leases As Lessor
Fixed assets given under 'Finance Lease' are recognised as a receivable at an amount equal to the net investment in the lease. Lease rentals are apportioned between principal and interest using the internal rate of return (IRR) method and finance income is accordingly recognised.
As Lessee
Lease rentals in respect of assets taken on 'operating lease' are charged to the profit and loss account on a straight line basis over the lease term.
(M) Taxation
Tax expense for the period, comprising current tax and deferred tax is included in determining the net profit/(loss) for the year. However, in the year of transition, the accumulated deferred tax liability at the beginning has been recognised with a corresponding charge to the General Reserve in accordance with Accounting Standard - 22 issued by the Institute of Chartered Accountants of India.
Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against which such deferred tax assets can be realised.
* Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.
Mar 31, 2001
(A) GENERAL
The accounts of the Company are prepared on accural basis, under the historical cost convention and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) FIXED ASSETS
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Preoperative expenditure including borrowing cost (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed asses on commissioning.
(C) DEPRECIATION /AMORTISATION
Depreciation is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Lease hold land is written off proportionately over the lease period. Capital spares are amortised over the useful life of the principal item.
(D) INVESTMENT
Long term investments are stated at cost.
However, where there is a decline, other than temporary, in the value of long term investment, an appropriate provision is made to recognise such decline.
Current investments are valued at the lower of cost and market value.
(E) INVENTORIES
Inventories are valued at the lower of cost and net realisable value. Cost for the purpose is worked out on a monthly weighted average basis. In case of finished goods and work in process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of excise duty.
(F) MISCELLANEOUS EXPENDITURE
1) Deferred Revenue Expenditure :-
(a) Revenue expenditure having endurable benefit is amortized over a period of 3-5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(b) Loss incurred in a fire in 1997-98 during the construction period of line-ll has been deferred to be written off over a period of 5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(G) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Assets purchased for R&D activities are capitalized in the year the same are put to use.
(H) REVENUE
i) Sales are accounted for on desptach and are stated inclusive of excise duty and net of sales tax, discounts and sales return.
ii) Duty drawback and Advance Licences/DEPB are accounted for on an accural basis. Special import licences are accounted for in the year of sale.
(I) RETIREMENT BENEFITS
The Company has contributed to approved Gratuity and Superannuation Trusts to provide for the liability in respect of retirement benefits, as per Company's scheme for its managerial staff. For others, gratuity has been provided as per actuarial valuation. Liability for leave encashment is provided as per actuarial valuation.
(J) FOREIGN CURRENCY TRANSACTIONS
i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognized in the profit and loss account. In respect of transactions covered by forward exchange contracts, other than relating to fixed assets, the difference between the contract rate and the spot rate on the date of transaction is charged to the profit and loss account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Mar 31, 2000
(A) GENERAL
The accounts of the Company are prepared on accrual basis, under the historical cost convention and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India.
(B) FIXED ASSETS
Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation and are net of credit. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Preoperative expenditure (net of revenue) incurred during the construction/trial run of projects is allocated on an appropriate basis to fixed assets on commissioning.
(C) DEPRECIATION/AMORTISATION
Depreciation is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Lease hold land is written off proportionately over the lease period.
Capital spares are amortised over the useful life of the principal item.
(D) INVESTMENT
Long Term Investments are stated at cost.
Current Investments are valued at the lower of cost and market value.
(E) INVENTORIES
Inventories are valued at the lower of cost and net realisable value. Cost for the purpose is worked out on a monthly weighted average basis. In case of finished goods and work in process, appropriate overheads are loaded on absorption costing basis. Finished goods are stated inclusive of Excise Duty.
Also refer to Note `5' in schedule `R'.
(F) MISCELLANEOUS EXPENDITURE
Deferred Revenue Expenditure :-
(a) Revenue expenditure having endurable benefits is amortized over a period of 3-5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(b) Loss incurred in a fire in 1997-98 during the construction period of line-II has been deferred to be written off over a period of 5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(G) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Assets purchased for R&D activities are capitalized in the year the same are put to use.
(H) REVENUE
i) Sales are inclusive of excise duty and net of sales tax, discounts and sales return.
ii) Duty drawback and advance licences/DEPB are accounted for on an accrual basis. Special import licences are accounted for in the year of sale.
(1) RETIREMENT BENEFITS
The Company has contributed to approved Gratuity and Superannuation Trusts to provide for the liability in respect of retirement benefits, as per Company's scheme for its managerial staff. For others, gratuity has been provided as per actuarial valuation. Liability for leave encashment is provided as per actuarial valuation.
(J) FOREIGN CURRENCY TRANSACTIONS
i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognized in the profit and loss account. In respect of transactions covered by forward exchange contracts, other than relating to fixed assets, the difference between the contract rate and the spot rate on the date of transaction is charged to the profit and loss account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Mar 31, 1999
(A) GENERAL
The accounts of the company are prepared on an accrual basis, under the historical cost convention.
(B) FIXED ASSETS
Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Preoperative expenditure (net of revenue) incurred during the construction/trial run phase of projects is allocated on an appropriate basis to fixed assets on commissioning.
(C) DEPRECIATION
Depreciation is charged on the straight line method on a pro-rata basis at the rates prescribed under Schedule XIV to the Companies Act, 1956.
Depreciation on foreign currency fluctuation is charged from the subsequent year over the residual useful life of the asset. Lease hold land is written off proportionately over the lease period.
(D) INVESTMENT Long Term Investments are stated at cost. Current Investments are valued at the lower of cost and market value. (E) INVENTORIES Valuation of Stocks : a) Raw Materials
at monthly weighted average cost b) Stores, Spares, Components and Loose Tools
at monthly weighted average cost c) Raw Materials/Stores in Transit
at cost d) Work in Process
at cost e) Finished Goods
lower of cost (Absorption Cost method) or net realisable value.
Also refer to Note 9 on Schedule S
(F) MISCELLANEOUS EXPENDITURE
i) Preliminary and Share Issue Expenditure :
Preliminary and share issue expenditure are amortised over a period of 10 years.
ii) Deferred Revenue Expenditure :
Revenue expenditure having endurable benefits is amortised over a period of 3-5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(G) RESEARCH AND DEVELOPMENT (R&D)
i) Revenue expenditure incurred for R&D is charged to the Profit and Loss Account.
ii) Assets purchased for R&D activities are capitalised in the year the same are put to use. (Read with Note 8 on schedule S)
(H) REVENUE
i) Sales are inclusive of excise duty and net of sales tax, discounts and sales return.
ii) Duty drawback and advance licences/DEPB are accounted for on an accrual basis. Special import licences are accounted for in the year of sale.
(I) RETIREMENT BENEFITS
The Company has contributed to approved Gratuity and Superannuation trusts, to provide for the liability in respect of retirement benefits, as determined under a scheme of insurance taken with the Life Insurance Corporation of India, for its managerial staff. For others, gratuity has been provided as per actuarial valuation.
Liability for leave encashment is provided as per actuarial valuation.
(J) FOREIGN CURRENCY TRANSACTIONS
i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognised in the profit and loss account. In respect of transactions covered by forward exchange contracts, other than relating to fixed assets, the difference between the contract rate and the spot rate on the date of transaction is charged to the profit and loss account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Mar 31, 1998
(A) GENERAL
These Accounts have been prepared on historical cost basis. All expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on Mercantile basis.
(B) FIXED ASSETS
Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets. Preoperative expenditure (net of revenue) incurred during the period of commissioning of projects are charged to capital work-in-progress and capitalised on completion of the project. These expenses wherever directly attributed to various fixed assets have been allocated accordingly, the balance expenses are allocated on a prorata basis among various fixed assets.
(C) DEPRECIATION
For the current year depreciation has been charged on straight line method on a pro-rata basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.
Depreciation on Foreign Currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Lease hold land is written off proportionately over the lease period.
(D) INVESTMENT
Long Term Investments are stated at cost.
Current Investments are valued at lower of cost or market value.
(E) INVENTORIES
i) Valuation of Stocks :
a) Raw Material at monthly weighted average cost b) Stores, Spares, Components & Loose Tools at monthly weighted average cost c) Raw Materials/Stores in transit at cost d) Work in process at cost e) Finished Goods lower of cost (Absorption cost method) or net realisable value.
ii) Excise duty/custom duty payable on finished goods/imported material is accounted for at the time of removal of goods. Non-provision of the same, however, will not affect the profit for the year. Finished Goods outside the factory are valued including excise.
(F) MISCELLANEOUS EXPENDITURE
i) Preliminary and Share Issue expenditure :-
Preliminary and share issue expenditure are amortised over a period of 10 years
ii) Deferred Revenue expenditure :-
Revenue expenditure having endurable benefits are amortised over a period of 5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(G) RESEARCH & DEVELOPMENT
i) Equipments purchased for Research & Development for existing products are capitalised in the year of Installation.
ii) Revenue expenditure incurred for Research & Development for existing products are charged to Profit & Loss a/c for the year.
iii) Expenditure relating to the Development of new products are accumulated and amortised over a period depending upon the estimated life of the product commencing from the year of establishment of commercial viability.
(H) REVENUE
i) Sales are inclusive of Excise Duty and net of sales tax, discounts and sales return.
ii) Duty Drawback and Advance Licence are accounted for on accrual basis. Special Import licences are accounted for in the year of sale.
(I) RETIREMENT BENEFITS
Liability in respect of retirement benefits to the executives of the company (including contributions to Gratuity fund for managerial staff and superannuation funds) are provided as per company's schemes and gratuity for other employees and leave encashment are provided as per actuarial valuation
(J) FOREIGN CURRENCY TRANSACTIONS
i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates/forward contract rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognised in the Profit and Loss account. In respect of transactions covered by forward exchange contracts, the difference between the contract rate and the spot rate on the date of transaction is charged to the Profit & Loss Account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Mar 31, 1997
GENERAL
These Accounts have been prepared on historical cost basis. All
expenses and income to the extent considered payable and receivable,
unless stated otherwise, have been accounted for on Mercantile basis.
FIXED ASSETS Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation. Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Pre-operative expenditure (net of revenue) incurred during the period of commissioning of projects are charged to capital work-in-progress and capitalised on completion of the project.
DEPRECIATION For the current year depreciation has been charged on straight line method on a pro-rata basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.
Depreciation on Foreign Currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Lease hold land is written off proportionately over the lease period.
INVESTMENT Long Term Investments are stated at cost. Current Investments are valued at lower of cost or market value.
INVENTORIES i) Valuation of Stocks: a) Raw Material at monthly weighted average cost b) Stores, Spares, Components & Loose Tools at monthly weighted average cost c) Raw Materials/Stores in transit at cost d) Work in process at cost e) Finished Goods lower of cost or net realisable value.
ii) Excise duty/custom duty payable on finished goods/imported material is accounted for at the time of removal of goods Non-provision of the same, however, will not affect the profit for the year. Finished Goods outside the factory are valued including excise.
MISCELLANEOUS EXPENDITURE i) Preliminary and Share Issue expenditure:- Preliminary and share issue expenditure are amortised over a period of 10 years
ii) Deferred Revenue expenditure: Revenue expenditure having endurable benefits are amortised over a period of 3 to 5 years in line with the guidelines of the Institute of Chartered Accountants of India.
RESEARCH & DEVELOPMENT i) Equipments purchased for Research & Development for existing products are capitalised in the year of Installation.
ii) Revenue expenditure incurred for Research & Development for existing products are charged to Profit & Loss a/c for the year.
iii) Expenditure relating to the Development of new products are accumulated and amortised over a period depending upon the estimated life of the product commencing from the year of establishment of commercial viability.
REVENUE i) Sales are inclusive of Excise Duty and net of sales tax, discounts and sales return.
ii) Duty Drawback and Advance Licence are accounted for on accrual basis. Special Import licences are accounted for in the year of sale.
RETIREMENT BENEFITS Liability in respect of retirement benefits to the executives of the company (including contributions to Gratuity fund for managerial staff and superannuation funds) are provided as per company's schemes and gratuity for other employees and leave encashment are provided as per actuarial valuation
FOREIGN CURRENCY TRANSACTIONS i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates/forward contract rates.
ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions, other than relating to fixed assets, are recognised in the Profit and Loss account. In respect of transactions covered by forward exchange contracts, the difference between the contract rate and the spot rate on the date of transaction is charged to the Profit & Loss account over the life of the contract.
iii) Exchange difference in respect of liabilities incurred to acquire fixed assets including gains/losses arising from forward contracts is adjusted to the carrying amount of fixed assets.
Mar 31, 1996
(A) GENERAL
These Accounts have been prepared on historical cost basis. All expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on Mercantile basis.
(B) FIXED ASSETS
Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation. Assets acquired through foreign currency loans are adjusted for year end exchange variation/forward contract rates.
Direct expenditure incurred during the period of commissioning of major projects are charged to capital work-in-progress and the costs are allocated to the respective fixed assets, on completion of projects.
(C) DEPRECIATION
For the current year depreciation has been charged on straight line method on a pro-rata basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.
Depreciation on Foreign Currency fluctuation is charged from the subsequent year over the residual useful life of the assets.
Lease hold land is written off proportionately over the lease period.
(D) INVESTMENT
Long Term Investments are stated at cost.
Current Investments are valued at lower of cost or market value.
(E) INVENTORIES
i) Valuation of Stocks:
a) Raw Material at monthly weighted average cost
b) Stores, Spares, Components & Loose Tools at monthly weighted average cost c) Raw Materials/Stores in transit at cost d) Work in process at cost e) Finished goods lower of cost or net realisable value.
ii) Excise duty /Custom duty payable on finished goods/imported material is accounted for at the time of removal of goods. Non-provision of the same, however, will not affect the profit for the year. Finished Goods outside the factory are valued including excise.
(F) MISCELLANEOUS EXPENDITURE
i) Preliminary and Share Issue expenditure:-
Preliminary and share issue expenditure are amortised over a period of 10 years.
ii) Deferred Revenue expenditure:-
Revenue expenditure having endurable benefits are amortised over a period of 3 to 5 years in line with the guidelines of the Institute of Chartered Accountants of India.
(G) RESEARCH & DEVELOPMENT
i) Equipments purchased by the company for Research and Development purposes are capitalised in the year of installation and included in fixed assets.
ii) Expenditure relating to the development of specific products are accumulated and capitalised on establishment of commercial viability. The same is depreciated over the period depending upon the estimated life of the product commencing from the year of capitalisation.
iii) All other revenue expenditures incurred for Research and Development activities are charged to the Profit & Loss Account for the year.
(H) REVENUE
i) Sales are inclusive of Excise Duty and net of sales tax, discounts and sales return.
ii) Duty Drawback and Advance Licence are accounted for on accrual basis. Special Import licences are accounted for in the year of sale.
iii) All foreign currency liabilities are stated at the rates ruling at the end of the year/forward cover rates. Exchange rates difference arising on foreign currency liabilities, except those relating to acquisition of fixed assets, are dealt with in the Profit & Loss Account.
iv) Gains/Losses on cancellation of forward exchange contracts are dealt with as under:-
a) Gains/Losses relating to fixed asset are adjusted in value of fixed assets.
b) Gains/Losses other than those relating to fixed assets are charged to revenue account.
Mar 31, 1995
FIXED ASSETS
Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation. Assets acquired through foreign currency loans are adjusted for year end exchange variation/forward contract rates, Roll over charges on forward exchange contracts relating to specific borrowings attributable to these fixed assets are capitalised.
Direct expenditure incurred during the period of commissioning of major projects are charged to capital work-in-progress ant the costs are allocated to the respective fixed assets, on completion of projects.
DEPRECIATION
For the current year depreciation has been charged on pro-rata basis at the rates prescribed under Schedule XIV of Companies Act, 1956.
Depreciation on Foreign Currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
INVESTMENT
1. Long Term Investments are stated at cost.
2. Current Investments are valued at lower of cost or market value.
INVENTORIES
i) Valuation of Stocks:
a) Raw Material at cost
b) Stores, Spares, Components & Loose Tools at cost
c) Raw Materials/Stores in transit at cost
d) Work in process at cost
e) Finished goods lower of cost or net realisable value.
ii) Excise duty /Custom duty payable on finished goods/imported material is accounted for the time of removal of goods. Non-provision of the same, however, will not affect the profit for the year. Finished Goods outside the factory are valued including excise.
MISCELLANEOUS EXPENDITURE
i) Preliminary and Share Issue expenditure:-
Preliminary and share issue expenditure are amortised over a period of 10 years.
ii) Deferred Revenue expenditure:-
Revenue expenditure having endurable benefits are amortised over a period of 3 to 5 years in line with the guidelines of the Institute of Chartered Accountants of India.
RESEARCH & DEVELOPMENT
i) Equipments purchased by the company for Research and Development purposes are capitalised in the year of installation and included in fixed assets.
ii) Expenditure relating to the development of specific products are accumulated and capitalised on establishment of commercial viability. The same is depreciated over the period depending upon the estimated life of the product commencing from the year of capitalisation.
iii) All other revenue expenditure incurred for Research and Development activities are charged to the Profit & Loss Account for the year.
REVENUE
i) Sales are inclusive of Excise Duty and net of sales tax, discounts and sales return.
ii) Duty Drawback has been accounted for on the basis of applicable Brand Rate/All Industry Rate on accrual basis. REP licences are accounted for in the year of sales of REP licences.
iii) Cost of reprocessing warranty tubes is charged in the year of processing of tubes.
iv) All foreign currency liabilities are stated at the rates ruling at the end of the year or at forward cover rates. Exchange rates difference arising on foreign currency liabilities, except those relating to acquisition of fixed assets, are dealt with in the Profit & Loss Account.
v) Gains on cancellation of forward exchange contracts are credited to the revenue in the year of cancellation of forward contracts.
RETIREMENT BENEFITS
i) Contribution to Provident and Superannuation Funds are accounted for on accrual basis.
ii) Liability for gratuity is recognised on the basis of actuarial valuation.
Mar 31, 1994
FIXED ASSETS:
Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition and installation. Assets acquired through foreign currency loans are adjusted for year end exchange variation/Forward contract rates, Roll over charges on Forward exchange contracts relating to specific borrowings attributable to these fixed assets. Expenditure including interest incurred during the period of commissioning of major projects are charged to capital work-in-progress and on completion the costs are allocated to the respective fixed assets.
DEPRECIATION:
For the current year depreciation has been charged on straight line pro-rata basis at the revised rate of Schedule XIV notified by the Govt. under its Circular No.GSR 756 E dated 16.12.93 under the category of continuous process plant based on technical and legal expert opinion.
i) The previous years depreciation has been re-calculated a nd the net excess depreciation charged in earlier year has been written back and separately dissclosed in the Profit & Loss appropriation account as per the Accounting Standards laid down by the Institute of Chartered Accountants of India.
ii) The current year depreciation has been calculated at the revised rate. This change has reduced the depreciation for the year by Rs.660 lacs.
iii) Depreciation on Foreign Currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
FOREIGN CURRENCY TRANSACTIONS:
All foreign currency liability are stated at the rates ruling at the end of the period or at forward cover rates and exchange rate difference arising on such transactions are dealt with in the Profit & Loss Account except those relating to acquisition of Fixed Assets.
INVENTORIES:
Valuation of stocks:
a. Raw material at cost b. Stores, Spares, Components & Loosse tools at cost c. Raw materials/Stores in transit at cost d. Work in process at cost e. Finished goods lower of cost or net realisable value
ii) Excise duty payable on finished good sis accounted for at the time of removal of goods from the factory. Nonprovision of excise duty on finisshed goods lying at works, however, will not affect the profit for the year. Finished goods outside factory are valued including excise.
RETIREMENT BENEFITS:
i) Contribution to Provident and Superannuation Funds are accounted for on accrual basis. ii) Liability for gratuity is recognised on the basis of actuarial valuation.
Mar 31, 1993
Foreign Currency Transactions :
All foreign currency transactions are stated at the rates ruling
at the end of the period or at forward cover rates and exchange
rate difference arising on such transactions are dealt with in
the Profit & Loss Account except those relating to acquisition of
Fixed Assets which in turn are adjusted in the cost of Assets.
Income arising from sale of REP and Advance Licences for picture tubes exported during the period is accounted for on sale thereof.
Depreciation : a) The Company has provided depreciation on its fixed assets on straight line method in accordance with Schedule XIV to the Companies Act, 1956 except as Stated in (b) and (c) below:
b) The Company has charged depreciation on plant & machinery at 11.31% being the general industrial rate for triple shift which is lower than the rate specified in schedule XIV of the Companies Act, 1956 for 1990-91, 1991-92 and 1992-93. Company Law Board has granted permission under Section 205 (1) of the Companies Act, 1956 for the year 1990-91 and 1991-92. Approval for 1992-93 is awaited. Consequently the arrears of depreciation for the current period is Rs 516 lacs (Previous year Rs 473 lacs) and cumulative arrears of depreciation amounts to Rs 1,335 lacs.
c) Depreciation on Foreign Currency fluctuation is charged from the subsequent year over the residual useful life of the asset.
Fixed Assets: Fixed assets are stated at original cost. Interest on borrowing for fixed assets acquisition and revenue expenses incurred for the period prior to commencement of commercial production are capitalised as part of assets cost.
Retirement Benefits: Contribution to provident and supernnuation Funds are accounted for on accrual basis. Gratuity provision is made on actuarial valuation basis
Jul 31, 1992
1. Foreing Currency Transations :
All foreign curreny liabilities are stated at the rates ruling at the end of the year or at forward cover rates and exchange rate difference arising on such transactions are dealt with in the Profit & Loss Account except those relating to acquisition of Fixed Assets which are adjusted in the cost of Assets.
2. The Company has provided depreciation on its fixed assets on straight line method in accordance with Schedule XIV to the Companies Act, 1956 except as stated in (b) and (c) below :
Jul 31, 1991
The Company has provided depreciation on its fixed assets on straight line method in accordance with Schedule XIV to the Companies Act, 1956 except as stated in (b) below:
The Company Law Board has granted approval under Section 205(1)(c) of the Companies Act, 1956 for charging depreciation for this period on Plant & Machinery at rates lower than specified in Schedule XIV to the Companies Act, 1956. Accordingly, the Company has charged depreciation on Plant & Machinery @ 11.31% (General Industry Rate-Triple Shift basis). Consequently, the arrears of depreciation for this period amount to Rs.346 lakh.