Mar 31, 2015
A) Method of Accounting
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013.
The financial statements are prepared on accrual basis under the
historical cost convention, except for certain Fixed Assets which are
carried at revalued amounts. The financial statements are presented in
Indian rupees rounded off to the nearest rupees in Lacs.
b) Use of Estimates
The preparation of financial statements are in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the result of operations during the
reporting period.
c) Fixed Assets & Depreciation
i) Fixed assets are accounted for at cost of acquisition inclusive of
freight, duties, taxes, erection, installation and other incidentals
related to acquisitions and installation but exclusive of Excise Modvat
recoverable on purchase of Capital Goods.
ii) Cost of fixed assets acquired from outside India is converted into
Indian rupees at the exchange rates prevailing on the date of
disbursements.
iii) Fixed assets are stated at cost less accumulated depreciation.
iv) However, Fixed Assets relating to "Transfers Division" have been
stated at the revalued cost as on 31st August 2003; pursuant to order
dt. 14-12-2004 of Hon'ble Calcutta High Court, under the Capital
Reduction Scheme approved by them as per provisions of Section
100(1)(b) of the Companies Act, 1956.
v) Depreciation on Fixed Assets has been provided on a straight line
method, considering the estimated useful life as specified in Schedule
II to the Companies Act, 2013 as notified by the Department of Company
Affairs vide notification no. GSR. 237(E) dated 31.03.2014. Impaired
assets are amortized over the estimated balance useful life.
vi) On assets sold/discarded during the year, depreciation is provided
up to the date of sale/discarding of such assets.
vii) On the assets acquired during the year, depreciation is calculated
on pro-rata basis from the date of acquisition/ installation of the
assets except the assets costing upto Rs. 5000/- each which are fully
depreciated in the year of purchase.
d) Inventories
i) Raw material, Stores and Spare parts, Tools & Implements and Packing
material are valued at average weighted cost.
ii) Stock of Work in process is valued at cost of Raw Material.
iii) Finished stocks are valued at lower of cost or net realizable
value. Cost includes raw material cost and appropriate share of
manufacturing expenses and other expenses directly attributable to
production and are inclusive of depreciation on plant and machinery and
factory building and excise duty paid/payable thereon.
iv) Traded goods are valued at lower of cost and net realisable value
by adopting FIFO method. Cost includes purchase price and other
associated cost directly incurred in bringing the inventory to its
present location.
e) Foreign Exchange Transaction
Transaction in foreign currency is recorded in Indian rupees using the
rates of exchange prevailing on the date of transaction. At each
balance sheet date, recorded monetary balances are reported in Indian
rupees at rates of exchange prevailing at the balance sheet date. All
realized or unrealized exchange adjustment, gains and losses are dealt
with in the Statement of Profit and Loss.
f) Excise & Customs Duty
Excise duty is accounted on the basis of both payments made in respect
of goods cleared and also provision made for finished goods lying in
bonded warehouse.
g) CENVAT Credit
The CENVAT credit available on purchase of raw material, other eligible
inputs and capital goods is adjusted against excise duty payable on
clearance of goods produced. The un-availed CENVAT credit is shown
under the head "Short Term Loans and Advances".
h) Research & Development Expenditure
Revenue expenditure is charged to Statement of Profit and Loss and
capital expenditure is added to the cost of fixed assets in the year in
which it is incurred.
i) Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue and share split, if any. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
j) Taxes on Income
Provision for tax for the year comprises estimated current income tax
determined to be payable in respect of taxable income and deferred tax
being the tax effect of timing differences representing the difference
between taxable and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods and is
calculated in accordance with the relevant domestic tax laws. Deferred
tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will available against which such
deferred tax assets can be realized.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment
loss, if any. Where it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belong. An
intangible asset with an indefinite useful life is tested for
impairment annually and whenever there is an indication that asset may
be impaired.
l) Revenue Recognition
i) Sales represent invoiced value of goods, net of sales return and
trade discount but inclusive of Excise Duty, wherever applicable.
ii) Domestic Sale of goods is recognized at the point of dispatch of
material to customers. Export Sales are accounted for on the basis of
Bill of Lading.
iii) Profit/Loss on sale of fixed assets are recognized in the year of
sale.
iv) Interest is accounted on accrual basis.
m) Borrowing Cost
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized up to the date of its
commissioning as part of the cost of such assets. All other borrowing
costs are charged to Statement of Profit and Loss.
n) Gratuity and Other Retirement Benefits
i) Retirement benefits in the form of Provident Fund are treated as a
defined contribution scheme and the contributions are charged to the
Statement of Profit and Loss of the year when the contributions to the
respective funds are due.
ii) Gratuity liability is a defined obligation and is provided for on
the basis of an actuarial valuation made at the end of each financial
year.
iii) Provision for Leave encashment is made on the basis of estimation
made by actuarial.
iv) Other short term compensated absences are provided for based on
past experience of leave availed.
o) Provisions and Contingent Liabilities
A provision is recognized if material when the Company has a present
obligation as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made based on technical valuation and
past experience. Provisions are not discounted to its present value and
are determined based on management estimate required to settle the
obligation at the balance sheet date. No provision is recognized for
liabilities whose future outcome cannot be ascertained with reasonable
certainties. Such contingent liabilities are not recognized but are
disclosed in the schedule of contingent liability on the basis of
judgment of the management/independent expert. These are reviewed at
each balance sheet date and adjusted to reflect the current management
estimate.
Mar 31, 2014
A) Method of Accounting
The Financial Statements are prepared on historical cost basis and in
accordance with generally accepted accounting principles in India,
applicable Accounting Standards and the relevant presentational
requirements of the Companies Act, 1956. The Company follows accrual
system of accounting in preparation of accounts except where otherwise
stated.
b) Use of Estimates
The preparation of financial statements are in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the result of operations during the
reporting period.
c) Fixed Assets & Depreciation
i) Fixed assets are accounted for at cost of acquisition inclusive of
freight, duties, taxes, erection, installation and other incidentals
related to acquisitions and installation but exclusive of Excise Modvat
recoverable on purchase of Capital Goods.
ii) Cost of fixed assets acquired from outside India is converted into
Indian rupees at the exchange rates prevailing on the date of
disbursements.
iii) Fixed assets are stated at cost less accumulated depreciation.
iv) However, Fixed Assets relating to "Transfers Division" have been
stated at the revalued cost as on 31st August 2003; pursuant to the
order dt. 14-12-2004 of Hon''ble Calcutta High Court, under the Capital
Reduction Scheme approved by them as per provisions of Section
100(1)(b) of the Companies Act, 1956.
v) Depreciation on Fixed Assets has been provided at the rates in
accordance with Schedule XIV to the Companies Act, 1956 as notified by
the Department of Company Affairs vide notification no. GSR. 756(E)
dated 16.12.1993 using Straight Line method. Double shift rates of
depreciation are provided wherever applicable.
vi) On assets sold/discarded during the year, depreciation is provided
up to the date of sale/discarding of such assets.
vii) On the assets acquired during the year, depreciation is calculated
on pro-rata basis from the date of acquisition/ installation of the
assets.
viii) 100% depreciation is charged on assets costing Rs. 5000/- or
less.
d) Inventories
i) Raw material, Stores and Spare parts, Tools & Implements and Packing
material are valued at average weighted cost.
ii) Stock of Work in process is valued at cost of Raw Material.
iii) Finished stocks are valued at lower of costs or net realizable
value. Costs includes raw material cost and appropriate share of
manufacturing expenses and other expenses directly attributable to
production and are inclusive of depreciation on plant and machinery and
factory building and excise duty paid/payable thereon.
iv) Traded goods are valued at lower of cost and net realisable value
by adopting FIFO method. Cost includes purchase price and other
associated cost directly incurred in bringing the inventory to its
present location.
e) Foreign Exchange Transaction
Transaction in foreign currency is recorded in Indian rupees using the
rates of exchange prevailing on the dates of transactions. At each
balance sheet date, recorded monetary balances are reported in Indian
rupees at rates of exchange prevailing at the balance sheet date. All
realizes and unrealized exchange adjustment, gain and losses are dealt
with in the Statement of Profit and Loss.
f) Excise & Customs Duty
Excise duty is accounted on the basis of both payments made in respect
of goods cleared and also provision made for finished goods lying in
bonded warehouse.
g) CENVAT Credit
The CENVAT credit available on purchase of raw material, other eligible
inputs and capital goods is adjusted against excise duty payable on
clearance of goods produced. The un-availed CENVAT credit is shown
under the head "Short-Term Loans and Advances".
h) Research & Development Expenditure
Revenue expenditure is charged to Statement of Profit and Loss and
capital expenditure is added to the cost of fixed assets in the year in
which it is incurred.
i) Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue and share split, if any. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
j) Taxes on Income
Provision for tax for the year comprises estimated current income tax
determined to be payable in respect of taxable income and deferred tax
being the tax effect of timing differences representing the difference
between taxable and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods and is
calculated in accordance with the relevant domestic tax laws. Deferred
tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment
loss, if any. Where it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belong. An
intangible asset with an indefinite useful life is tested for
impairment annually and whenever there is an indication that asset may
be impaired.
l) Gratuity and Other Retirement Benefits
i) Retirement benefits in the form of Provident Fund are treated as a
defined contribution scheme and the contributions are charged to the
Statement of Profit and Loss of the year when the contributions to the
respective funds are due.
ii) Gratuity liability is a defined obligation and is provided for on
the basis of an actuarial valuation made at the end of each financial
year.
iii) Provision for Leave encashment has been made on the basis of
estimation made by actuarial.
iv) Other short term compensated absences are provided for based on
past experience of leave availed. m) Revenue Recognition
i) Sales represent invoiced value of goods, net of sales return and
trade discount but inclusive of Excise Duty, wherever applicable.
ii) Domestic Sale of goods is recognized at the point of dispatch of
material to customers. Export Sales are accounted for on the basis of
Bill of Lading.
iii) Profit/Loss on sale of fixed assets are recognized in the year of
sale.
iv) Interest is accounted on accrual basis.
n) Borrowing Cost
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized upto the date of its
commissioning as part of the cost of such assets. All other borrowing
costs are charged to Statement of Profit and Loss.
o) Provisions and Contingent Liabilities
A provision is recognized if material when the Company has a present
obligation as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made based on technical valuation and
past experience. Provisions are not discounted to its present value and
are determined based on management estimate required to settle the
obligation at the balance sheet date. No provision is recognized for
liabilities whose future outcome cannot be ascertained with reasonable
certainties.
Such contingent liabilities are not recognized but are disclosed in the
schedule of contingent liability on the basis of judgment of the
management/independent expert. These are reviewed at each balance sheet
date and adjusted to reflect the current management estimate.
Mar 31, 2013
A) Method of Accounting
The Financial Statements are prepared on historical cost basis and in
accordance with generally accepted accounting principles in India,
applicable Accounting Standards and the relevant presentational
requirements of the Companies Act, 1956. The Company follows accrual
system of accounting in preparation of accounts except where otherwise
stated.
b) Use of Estimates
The preparation of financial statements are in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the result of operations during the
reporting period.
c) Fixed Assets & Depreciation
i) Fixed assets are accounted for at cost of acquisition inclusive of
freight, duties, taxes, erection, installation and other incidentals
related to acquisitions and installation but exclusive of Excise Modvat
recoverable on purchase of Capital Goods.
ii) Cost of fixed assets acquired from outside India is converted into
Indian rupees at the exchange rates prevailing on the date of
disbursements.
iii) Fixed assets are stated at cost less accumulated depreciation.
iv) However, Fixed Assets relating to "Transfers Division" have been
stated at the revalued cost as on 31st August 2003; pursuant to the
order dt. 14-12-2004 of Hon''ble Calcutta High Court, under the Capital
Reduction Scheme approved by them as per provisions of Section
100(1)(b) of the Companies Act, 1956.
v) Depreciation on Fixed Assets has been provided at the rates in
accordance with Schedule XIV to the Companies Act, 1956 as notified by
the Department of Company Affairs vide notification no. GSR. 756(E)
dated 16.12.1993 using Straight Line method. Double shift rates of
depreciation are provided wherever applicable.
vi) On assets sold/discarded during the year, depreciation is provided
up to the date of sale/discarding of such assets.
vii) On the assets acquired during the year, depreciation is calculated
on pro-rata basis from the date of acquisition/ installation of the
assets.
viii) 100% depreciation is charged on assets costing Rs. 5000/- or
less.
d) Inventories
i) Raw material, Stores and Spare parts, Tools & Implements and Packing
material are valued at average weighted cost.
ii) Stock of Work in process is valued at cost of Raw Material.
iii) Finished stocks are valued at lower of costs or net realizable
value. Costs includes raw material cost and appropriate share of
manufacturing expenses and other expenses directly attributable to
production and are inclusive of depreciation on plant and machinery and
factory building and excise duty paid/payable thereon.
iv) Traded goods are valued at lower of cost and net realisable value
by adopting FIFO method. Cost includes purchase price and other
associated cost directly incurred in bringing the inventory to its
present location.
e) Foreign Exchange Transaction
Transaction in foreign currency is recorded in Indian rupees using the
rates of exchange prevailing on the dates of transactions. At each
balance sheet date, recorded monetary balances are reported in Indian
rupees at rates of exchange prevailing at the balance sheet date. All
realizes and unrealized exchange adjustment, gain and losses are dealt
with in the Statement of Profit and Loss.
f) Excise & Customs Duty
Excise duty is accounted on the basis of both payments made in respect
of goods cleared and also provision made for finished goods lying in
bonded warehouse.
g) CENVAT Credit
The CENVAT credit available on purchase of raw material, other eligible
inputs and capital goods is adjusted against excise duty payable on
clearance of goods produced. The un-availed CENVAT credit is shown
under the head "Short-Term Loans and Advances".
h) Research & Development Expenditure
Revenue expenditure is charged to Statement of Profit and Loss and
capital expenditure is added to the cost of fixed assets in the year in
which it is incurred.
i) Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue and share split, if any. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
j) Taxes on Income
Provision for tax for the year comprises estimated current income tax
determined to be payable in respect of taxable income and deferred tax
being the tax effect of timing differences representing the difference
between taxable and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods and is
calculated in accordance with the relevant domestic tax laws. Deferred
tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will available against which such
deferred tax assets can be realized.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment
loss, if any. Where it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belong. An
intangible asset with an indefinite useful life is tested for
impairment annually and whenever there is an indication that asset may
be impaired.
l) Gratuity and Other Retirement Benefits
i) Retirement benefits in the form of Provident Fund is treated as a
defined contribution scheme and the contributions are charged to the
Statement of Profit and Loss of the year when the contributions to the
respective funds are due.
ii) Gratuity liability is a defined obligation and is provided for on
the basis of an actuarial valuation made at the end of each financial
year.
iii) Provision for Leave encashment has been made on the basis of
estimation made by actuarial.
iv) Other short term compensated absences are provided for based on
past experience of leave availed.
m) Revenue Recognition
i) Sales represent invoiced value of goods, net of sales return and
trade discount but inclusive of Excise Duty, wherever applicable.
ii) Domestic Sale of goods is recognized at the point of dispatch of
material to customers. Export Sales are accounted for on the basis of
Bill of Lading.
iii) Profit/Loss on sale of fixed assets are recognized in the year of
sale.
iv) Interest is accounted on accrual basis.
n) Borrowing Cost
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized upto the date of its
commissioning as part of the cost of such assets. All other borrowing
costs are charged to Statement of Profit and Loss.
o) Provisions and Contingent Liabilities
A provision is recognized if material when the Company has a present
obligation as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made based on technical valuation and
past experience. Provisions are not discounted to its present value and
are determined based on management estimate required to settle the
obligation at the balance sheet date. No provision is recognized for
liabilities whose future outcome cannot be ascertained with reasonable
certainties. Such contingent liabilities are not recognized but are
disclosed in the schedule of contingent liability on the basis of
judgment of the management/independent expert. These are reviewed at
each balance sheet date and adjusted to reflect the current management
estimate.
Mar 31, 2012
A) Method of Accounting
The Financial Statements are prepared on historical cost basis and in
accordance with generally accepted accounting principles in India,
applicable Accounting Standards and the relevant presentational
requirements of the Companies Act, 1956. The Company follows accrual
system of accounting in preparation of accounts except where otherwise
stated.
b) Use of Estimates
The preparation of financial statements are in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the result of operations during the
reporting period.
c) Fixed Assets & Depreciation
i) Fixed assets are accounted for at cost of acquisition inclusive of
freight, duties, taxes, erection, installation and other incidentals
related to acquisitions and installation but exclusive of Excise Modvat
recoverable on purchase of Capital Goods.
ii) Cost of fixed assets acquired from outside India is converted into
Indian rupees at the exchange rates prevailing on the date of
disbursements.
iii) Fixed assets are stated at cost less accumulated depreciation.
iv) However, Fixed Assets relating to "Transfers Division" have been
stated at the revalued cost as on 31st August 2003; pursuant to the
order dt. 14-12-2004 of Hon'ble Calcutta High Court, under the Capital
Reduction Scheme approved by them as per provisions of Section
100(1)(b) of the Companies Act, 1956.
v) Depreciation on Fixed Assets has been provided at the rates in
accordance with Schedule XIV to the Companies Act, 1956 as notified by
the Department of Company Affairs vide notification no. GSR. 756(E)
dated 16.12.1993 using Straight Line method. Double shift rates of
depreciation are provided wherever applicable.
vi) On assets sold/discarded during the year, depreciation is provided
up to the date of sale/discarding of such assets.
vii) On the assets acquired during the year, depreciation is calculated
on pro-rata basis from the date of acquisition/installation of the
assets.
viii) 100% depreciation is charged on assets costing Rs. 5000/- or
less.
d) Inventories
i) Raw material, Stores and Spare parts, Tools & Implements and Packing
material are valued at average weighted cost.
ii) Stock of Work in process is valued at cost of Raw Material.
iii) Finished stocks are valued at lower of costs or net realizable
value. Costs includes raw material cost and appropriate share of
manufacturing expenses and other expenses directly attributable to
production and are inclusive of depreciation on plant and machinery and
factory building and excise duty paid/payable thereon.
iv) Traded goods are valued at lower of cost and net realisable value
by adopting FIFO method. Cost includes purchase price and other
associated cost directly incurred in bringing the inventory to its
present location.
e) Foreign Exchange Transaction
Transaction in foreign currency is recorded in Indian rupees using the
rates of exchange prevailing on the dates of transactions. At each
balance sheet date, recorded monetary balances are reported in Indian
rupees at rates of exchange prevailing at the balance sheet date. All
realizes and unrealized exchange adjustment, gain and losses are dealt
with in the Statement of Profit and Loss.
f) Excise & Customs Duty
Excise duty is accounted on the basis of both payments made in respect
of goods cleared and also provision made for finished goods lying in
bonded warehouse.
g) CENVAT Credit
The CENVAT credit available on purchase of raw material, other eligible
inputs and capital goods is adjusted against excise duty payable on
clearance of goods produced. The un-availed CENVAT credit is shown
under the head "Short-Term Loans and Advances".
h) Research & Development Expenditure
Revenue expenditure is charged to Statement of Profit and Loss and
capital expenditure is added to the cost of fixed assets in the year in
which it is incurred.
i) Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue and share split, if any. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
j) Taxes on Income
Provision for tax for the year comprises estimated current income tax
determined to be payable in respect of taxable income and deferred tax
being the tax effect of timing differences representing the difference
between taxable and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods and is
calculated in accordance with the relevant domestic tax laws. Deferred
tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will available against which such
deferred tax assets can be realized.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment
loss, if any. Where it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belong. An
intangible asset with an indefinite useful life is tested for
impairment annually and whenever there is an indication that asset may
be impaired.
l) Gratuity and Other Retirement Benefits
i) Retirement benefits in the form of Provident Fund is treated as a
defined contribution scheme and the contributions are charged to the
Statement of Profit and Loss of the year when the contributions to the
respective funds are due.
ii) Gratuity liability is a defined obligation and is provided for on
the basis of an actuarial valuation made at the end of each financial
year.
iii) Leave encashment has been provided on basis of estimation made by
actuarial.
iv) Other short term compensated absences are provided for based on
past experience of leave availed.
m) Revenue Recognition
i) Sales represent invoiced value of goods, net of sales return and
trade discount but inclusive of Excise Duty, wherever applicable.
ii) Domestic Sale of goods is recognized at the point of dispatch of
material to customers. Export Sales are accounted on the basis of Bill
of Lading.
iii) Profit/Loss on sale of fixed assets are recognized in the year of
sale.
iv) Interest is accounted on accrual basis.
n) Borrowing Cost
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. All other borrowing costs are charged to Statement of
Profit and Loss.
o) Provisions and Contingent Liabilities
A provision is recognized if material when the Company has a present
obligation as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made based on technical valuation and
past experience. Provision are not discounted to its present value and
are determined based on management estimate required to settle the
obligation at the balance sheet date. No provision is recognized for
liabilities whose future outcome cannot be ascertained with reasonable
certainties. Such contingent liabilities are not recognized but are
disclosed in the schedule of contingent liability on the basis of
judgment of the management/independent expert. These are reviewed at
each balance sheet date and adjusted to reflect the current management
estimate.
Mar 31, 2010
A) Method of Accounting
The Financial Statements are prepared on historical cost basis and in
accordance with generally accepted accounting principles. The Company
follows accrual system of accounting in the preparation of accounts
except where otherwise stated.
b) Fixed Assets & Depreciation
i) Fixed assets are stated at cost less accumulated depreciation.
ii) However, Fixed Assets relating to "Transfers Division" have been
stated at the revalued cost as on 31st August, 2003; pursuant to the
order dt. 14-12-2004 of Honble Calcutta High Court, under the Capital
Reduction Scheme approved by them as per provisions of Section
100(1)(b) of the Companies Act, 1956.
iii) Depreciation on Fixed Assets has been provided at the rates in
accordance with Schedule XIV of the Companies Act, 1956 as notified by
the Department of Company Affairs vide notification no. GSR. 756(E)
dated 16.12.1993 using Straight Line method. Double shift rates of
depreciation are provided wherever applicable.
iv) 100% depreciation has been charged on assets costing Rs. 5000/- or
less.
c) Inventories
Finished stocks and trading stocks are valued at lower of estimated
cost or net realizable value. Stock in process is taken at cost. Raw
material, Stores and Spare parts and Tools & implements are valued at
cost. Cost of finished goods includes excise duty.
d) Foreign Exchange Transaction
All Monetary assets and liabilities related to foreign currency
transaction have been translated into Indian Rupees at the appropriate
year end exchange rates as per Revised Accounting Standard-11. The
difference in transaction of monetary assets and liabilities and
realised gains and losses on foreign exchange transactions, other than
those relating to fixed assets are recognized in Profit and Loss
Account.
e) Excise & Customs Duty
Excise duty has been accounted on the basis of both payments made in
respect of goods cleared and also provision made for goods lying in
bonded warehouse.
f) CENVAT Credit
The CENVAT credit available on purchase of raw material, other eligible
inputs and capital goods is adjusted against excise duty payable on
clearance of goods produced. The un-availed CENVAT credit is shown
under the head ÃLoans & AdvancesÃ.
g) Research & Development Expenditure
Revenue expenditure is charged to Profit & Loss account and capital
expenditure is added to the cost of fixed assets in the year in which
it is incurred.
h) Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue and share split. For the purpose
of calculating diluted earnings per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.
i) Taxes on Income
Provision for tax for the year comprises estimated current income tax
determined to be payable in respect of taxable income and deferred tax
being the tax effect of timing differences representing the difference
between taxable and accounting income that originate in one period and
are capable of
reversal in one or more subsequent periods and is calculated in
accordance with the relevant domestic tax laws. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will available against which such
deferred tax assets can be realized.
j) Impairment of Assets
The Company on an annual basis makes an assessment of any indicator
that may lead to impairment of assets. If any such indication exists,
the Company estimates the recoverable amount of the assets. If such
recoverable amount is less than the carrying amount, then the carrying
amount is reduced to its recoverable amount by treating the difference
between them as impairment loss and is charged to profit & loss
account.
k) Gratuity and Other Retirement Benefits
i) Retirement benefit in the form of Provident Fund are treated as a
defined contribution scheme and the contributions are charged to the
Profit & Loss Account of the year when the contributions to the
respective funds are due.
ii) Gratuity liability is a defined obligation and is provided for on
the basis of an actuarial valuation made at the end of each financial
year.
iii) Leave encashment has been provided on basis of estimation made by
actuarial.
iv) Other short term compensated absences are provided for based on
past experience of leave availed.
l) Sales
Sales represent invoiced value of goods, net of sales return and trade
discount but inclusive of Excise duty, wherever applicable.
m) Provisions and Contingent Liabilities
A provision is recognized if material when the Company has a present
obligation as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made based on technical valuation and
past experience. Provisions are not discounted to its present value and
are determined based on management estimate required to settle the
obligation at the balance sheet date. No provision is recognized for
liabilities whose future outcome cannot be ascertained with reasonable
certainties. Such contingent liabilities are not recognized but are
disclosed in the schedule of contingent liability on the basis of
judgment of the management/independent expert. These are reviewed at
each balance sheet date and adjusted to reflect the current management
estimate.
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