Mar 31, 2015
1.01 Basis of accounting and preparation off manila statements
The financial statements of the company have been prepared in
accordance with the generally accepted accounting principles in India
(Indian GAAP) to comply with the accounting standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the his tonal cost
convention. The company generally follows mercantile system of
accounting and recogm.es significant items of income and expenditure on
accrual basis. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year unless otherwise stated.
1.02 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
1.03 Fixed assets
Fixed assets are earned at cost less accumulated depreciation. The cost
of fixed assets includes interest on borrowings attributable to
acquisition of fixed assets up to the date the asset is ready for its
intended use and other incidental expenses incurred up to that date.
Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
1.04 Depreciation and amortization
Depreciation on fixed Assets is calculated on as trough time basis
using the ratesarnved at based on the useful lives estimated by the
management or as per the rates prescribed under Schedule II of compares
Act 2013 whichever is higher.
1.05 Inventories
Raw materials, Packing Materials, Stores and Spares are valued at cost
net of VAT Credits ascertained on FIFO basis.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value. Cost includes direct materials and labour and a
proportion of manufacturing overheads based on normal operating
capacity.
1.06 Revenuer cognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following recognition criteria is applied before
revenue is recognized:
Annexure Statement of Significant Accounting Policies And Practices
Sale of goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on dispatch of the goods. The company collects sales tax and
value added tax (VAT) on behalf of the government and therefore, these
are not economic benefits flowing to the company hence, they are
excluded from revenue during the year.
Interest on bank deposits
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income-m the
statement of profit and loss.
1.07 Foreign Currency Transactions
Expenses and Income are recorded at the exchange rate prevailing on the
date of transaction. Assets and liabilities on the date of the balance
sheet are restated at the exchange rate prevailing on the balance sheet
date. Exchange rate differences arising on settlement of the
transaction and on account of restatement of assets and liabilities are
dealt with m Statement of Profit and Loss.
1.08 Employee Retirement and other benefits
Employees of the company are entitled to retirement benefits of
Provident Fund, Gratuity, and Leave encashment.
a) Defined Contribution Plan:
Company's contribution paid/payable during the year to Provident Fund
and Labour Welf are Fundare recognized the Profit and Loss Account.
b) Defined Benefit Plan: i. Gratuity
Gratuity is covered under the schemes of State Bank of India Life
Insurance Company and premiums for such schemes are recognized the
Profit and Loss Account.
At the reporting date, Company's liability towards gratuity is
determined by independent actuarial valuation using the "Projected Unit
Credit Method" which considers each pentode service giving rise to an
additional unit of benefit entitlement and measures each unit
separately to build up the final obligation. Actuarial gam and losses
are recognized immediately the statement of Profit and Loss Account as
income or expense.
ii. Leave Encashment
Liability on account of leave encashment has been provided on the basis
of actual liability computed sat the year end.
1.09 Taxes on income
Provision for taxation for the year is based on tax liability computed
in accordance with relevant tax rates and tax laws as at the Balance
Sheet date. Provision for deferred tax is made for all timing
differences arising between taxable come and accounting comeat the
rates that have been enacted
Annexure
Statement of Significant Accounting Policies And Practices
or substantively enacted as at the Balance Sheet date. Deferred tax
assets are recognized only if there 1S a reasonable certainty that they
will be realized and are reviewed for the appropriateness of their
respective carrying value at each Balance Sheet date.
1.10 Provisions and Contingent liabilities
Provision is recognized when the company has legal/constructive
obligation for which it is probable that cash outflow may be required
and reliable estimate can be made of the amount of the obligation.
Contingent Liabilities not provided for are indicated by way of a Note
and will be paid/provided on crystallization of the liability.
1.11 Earnings per share(EPS):
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shares by weighted average
number of equity shares outstanding during the year.
1.12 Impairment of Assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generation unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized m the profit and loss account. If at the balance sheet date
there is an indication that if previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
The financial statements of the company have been prepared in
accordance with the generally accepted accounting principles in India
(Indian GAAP) to comply with the accounting standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The company generally follows mercantile system of
accounting and recognizes significant items of income and expenditure
on accrual basis. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year unless otherwise stated.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
1.3 Fixed assets
Fixed assets are carried at cost less accumulated depreciation. The
cost of fixed assets includes interest on borrowings attributable to
acquisition of fixed assets up to the date the asset is ready for its
intended use and other incidental expenses incurred up to that date.
Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
1.4 Depreciation and amortization
Depreciation on fixed assets is provided on straight-line method at the
rates specified and in the manner laid down in Schedule XIV to the
Companies Act, 1956. Deferred revenue expenses are amortised over a
period of five Years.
1.5 Inventories
Raw materials, Packing Materials, Stores and Spares are valued at cost
net of VAT Credits ascertained on FIFO basis.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value. Cost includes direct materials and labour and a
proportion of manufacturing overheads based on normal operating
capacity.
1.6 Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following recognition criteria is applied before
revenue is recognized:
Annexure I
Statement of Significant Accounting Policies And Practices Sale of
goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on dispatch of the goods. The company collects sales tax and
value added tax (VAT) on behalf of the government and therefore, these
are not economic benefits flowing to the company hence, they are
excluded from revenue during the year.
Interest on bank deposits
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
1.7 Foreign Currency Transactions
Expenses and Income are recorded at the exchange rate prevailing on the
date of transaction. Assets and liabilities on the date of the balance
sheet are restated at the exchange rate prevailing on the balance sheet
date. Exchange rate differences arising on settlement of the
transaction and on account of restatement of assets and liabilities are
dealt with in Statement of Profit and Loss.
1.8 Employee Retirement and other benefits
Employees of the company are entitled to retirement benefits of
Provident Fund, Gratuity, and Leave encashment.
a) Defined Contribution Plan:
Company''s contribution paid/payable during the year to Provident Fund
and Labour Welfare Fund are recognized in the Profit and Loss Account.
b) Defined Benefit Plan:
i. Gratuity
Gratuity is covered under the schemes of State Bank of India Life
Insurance Company and premiums for such schemes are recongnized in the
Profit and Loss Account.
At the reporting date, Company''s liability towards gratuity is
determined by independent actuarial valuation using the "Projected Unit
Credit Method" which considers each period of service as giving raise
to an additional unit of benefit entitlement and measures each unit
separately to build up the final obligation. Actuarial gain and losses
are recognized immediately in the statement of Profit and Loss Account
as income or expense.
ii. Leave Encashment
Liability on account of leave encashment has been provided on the basis
of actual liability computed as at the year end.
1.9 Taxes on income
Provision for taxation for the year is based on tax liability computed
in accordance with relevant tax rates and tax laws as at the Balance
Sheet date. Provision for deferred tax is made for all timing
differences arising between taxable income and accounting income at the
rates that have been enacted or substantively enacted as at the Balance
Sheet date. Deferred tax assets are recognised only if there is a
reasonable certainty that they will be realised and are reviewed for
the appropriateness of their respective carrying value at each Balance
Sheet date.
1.10 Provisions and Contingent liabilities
Provision is recognized when the company has legal/constructive
obligation for which it is probable that a cash outflow may be required
and reliable estimate can be made of the amount of the obligation.
Contingent Liabilities not provided for are indicated by way of a Note
and will be paid/provided on crystallization of the liability.
1.11 Earnings per share (EPS):
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shares by weighted average
number of equity shares outstanding during the year.
1.12 Impairment of Assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generation unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet
date there is an indication that if previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements
The financial statements of the company have been prepared in
accordance with the generally accepted accounting principles in India
(Indian GAAP) to comply with the accounting standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The company generally follows mercantile system of
accounting and recognizes significant items of income and expenditure
on accrual basis. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year unless otherwise stated.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in preparation
of the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
1.3 Fixed assets
Fixed assets are carried at cost less accumulated depreciation. The
cost of fixed assets includes interest on borrowings attributable to
acquisition of fixed assets up to the date the asset is ready for its
intended use and other incidental expenses incurred up to that date.
Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
1.4 Depreciation and amortization
Depreciation on fixed assets is provided on straight-line method at the
rates specified and in the manner laid down in Schedule XIV to the
Companies Act, 1956. Deferred revenue expenses are amortised over a
period of five Years.
1.5 Inventories
Raw materials, Packing Materials, Stores and Spares are valued at cost
net of VAT Credits ascertained on FIFO basis.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value. Cost includes direct materials and labour and a
proportion of manufacturing overheads based on normal operating
capacity.
1.6 Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following recognition criteria is applied before
revenue is recognized:
Sale of goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on dispatch of the goods. The company collects sales tax and
value added tax (VAT) on behalf of the government and therefore, these
are not economic benefits flowing to the company hence, they are
excluded from revenue during the year.
Interest on bank deposits
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
1.7 Foreign Currency Transactions
Expenses and Income are recorded at the exchange rate prevailing on the
date of transaction. Assets and liabilities on the date of the balance
sheet are restated at the exchange rate prevailing on the balance sheet
date. Exchange rate differences arising on settlement of the
transaction and on account of restatement of assets and liabilities are
dealt with in Statement of Profit and Loss.
1.8 Employee Retirement and other benefits
Employees of the company are entitled to retirement benefits of
Provident Fund, Gratuity, and Leave encashment.
a) Defined Contribution Plan:
Company''s contribution paid/payable during the year to Provident Fund
and Labour Welfare Fund are recognized in the Profit and Loss Account.
b) Defined Benefit Plan:
i. Gratuity
Gratuity is covered under the schemes of State Bank of India Life
Insurance Company and premiums for such schemes are recognized in the
Profit and Loss Account.
At the reporting date, Company''s liability towards gratuity is
determined by independent actuarial valuation using the "Projected Unit
Credit Method" which considers each period of service as giving raise
to an additional unit of benefit entitlement and measures each unit
separately to build up the final obligation. Actuarial gain and losses
are recognized immediately in the statement of Profit and Loss Account
as income or expense.
ii. Leave Encashment
Liability on account of leave encashment has been provided on the basis
of actual liability computed as at the year end.
1.9 Taxes on income
Provision for taxation for the year is based on tax liability computed
in accordance with relevant tax rates and tax laws as at the Balance
Sheet date. Provision for deferred tax is made for all timing
differences arising between taxable income and accounting income at the
rates that have been enacted or substantively enacted as at the Balance
Sheet date. Deferred tax assets are recognised only if diere is a
resonable certainity that they will be realised and are reviewed for
the appropriateness of their respective carrying value at each Balance
Sheet date.
1.10 Provisions and Contingent liabilities
Provision is recognized when the company has legal/ constructive
obligation for which it is probable that a cash outflow may be required
and reliable estimate can be made of the amount of the obligation.
Contingent Liabilities not provided for are indicated by way of a Note
and will be paid/provided on crystallization of the liability.
1.11 Earnings pet share (EPS):
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shares by weighted average
number of equity shares outstanding during the year.
1.12 Impairment of Assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generation unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet date
there is an indication that if previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
The financial statements of the company have been prepared in
accordance with the generally accepted accounting principles in India
(Indian GAAP) to comply with the accounting standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The company generally follows mercantile system of
accounting and recognizes significant items of income and expenditure
on accrual basis. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year unless otherwise stated.
1.2 Change in accounting policy (Presentation and disclosure of
financial statements)
During the year ended 31 March 2012, the Revised Schedule VI notified
under the Companies Act, 1956 has become applicable to the company for
preparation and presentation of its financial statements. The adoption
of Revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements. The company has regrouped/reclassified the
previous year figures wherever necessary in accordance with the
requirements applicable in the current year.
1.3 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
1.4 Fixed assets
Fixed assets are carried at cost less accumulated depreciation. The
cost of fixed assets includes interest on borrowings attributable to
acquisition of fixed assets up to the date the asset is ready for its
intended use and other incidental expenses incurred up to that date.
Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
1.5 Depreciation and amortization
Depreciation on fixed assets is provided on straight-line method at the
rates specified and in the manner laid down in Schedule XIV to the
Companies Act, 1956. Deferred revenue expenses are amortized over a
period of five Years.
1.6 Inventories
Raw materials, Packing Materials, Stores and Spares are valued at cost
net of VAT Credits ascertained on FIFO basis.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value. Cost includes direct materials and labour and a
proportion of manufacturing overheads based on normal operating
capacity.
1.7 Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following recognition criteria is applied before
revenue is recognized:
Sale of goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on dispatch of the goods. The company collects sales tax and
value added tax (VAT) on behalf of the government and therefore, these
are not economic benefits flowing to the company hence, they are
excluded from revenue during the year.
Interest on bank deposits
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
1.8 Foreign Currency Transactions
Expenses and Income are recorded at the exchange rate prevailing on the
date of transaction. Assets and liabilities on the date of the balance
sheet are restated at the exchange rate prevailing on the balance sheet
date. Exchange rate differences arising on settlement of the
transaction and on account of restatement of assets and liabilities are
dealt with in Statement of Profit and Loss.
1.9 Employee Retirement and other benefits
Employees of the company are entitled to retirement benefits of
Provident Fund, Gratuity, and Leave encashment.
a) Defined Contribution Plan:
Company's contribution paid/payable during the year to Provident Fund
and Labour Welfare Fund are recognized in the Profit and Loss Account.
b) Defined Benefit Plan:
i. Gratuity
Gratuity is covered under the schemes of State Bank of India Life
Insurance Company and premiums for such schemes are recognized in the
Profit and Loss Account. At the reporting date, Company's liability
towards gratuity is determined by independent actuarial valuation using
the "Projected Unit Credit Method" which considers each period of
service as giving rise to an additional unit of benefit entitlement
and measures each unit separately to build up the final obligation.
Actuarial gain and losses are recognized immediately in the statement
of Profit and Loss Account as income or expense.
ii. Leave Encashment
Liability on account of leave encashment has been provided on the basis
of actual liability computed as at the year end.
1.10 Taxes on income
Provision for taxation for the year is based on tax liability computed
in accordance with relevant tax rates and tax laws as at the Balance
Sheet date. Provision for deferred tax is made for all timing
differences arising between taxable income and accounting income at the
rates that have been enacted or substantively enacted as at the Balance
Sheet date. Deferred tax assets are recognized only if there is a
reasonable certainty that they will be realized and are reviewed for
the appropriateness of their respective carrying value at each Balance
Sheet date.
1.11 Provisions and Contingent liabilities
Provision is recognized when the company has legal/constructive
obligation for which it is probable that a cash outflow may be required
and reliable estimate can be made of the amount of the obligation.
Contingent Liabilities not provided for are indicated by way of a Note
and will be paid/provided on crystallization of the liability.
1.12 Earnings per share (EPS):
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shares by weighted average
number of equity shares outstanding during the year.
1.13 Impairment of Assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generation unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet date
there is an indication that if previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
Mar 31, 2010
ACCOUNTING CONVENTION:
The Financial statements are prepared based on historical cost
convention.
FIXED-ASSETS;
Tangible Fixed Assets are stated at cost net of depreciation as
provided in the statements. Depreciation is provided on Straight line
method as per Section 205 read with Schedule XIV of the Companies Act,
1956, on the basis of continuous process plant.
INYENTORIESi
Inventories are valued at the lower of cost and net realisable value.
The Raw Materials and Stores and Spares are computed by using FIFO
method.
FOREIGN EXCHANGE TRANSACTIONS:
Foreign currency transactions are recorded at the rates prevailing on
the date of the transactions. Monetary assets and liabilites in foreign
currency are translated at year end rate or at the rates of exchange
fixed under contractual arrangments. Exchange differences arising on
settlement of transactions and translation of monetary items are
recognised as income or expense.
CONTINGENT LIABILITIES:
No liability is provided in respect of contingent liabilities, but only
mentioned by way of note to accounts. SS^Su EN iofto Provident fund
determined under the relavent statute and charged to revenue. The
gratuity contribution has been made on the basis of acturial valuation
under AS15 given by SBI life insurance Company.
The Liability for leave encashment is provided for on the basis of
accrued leaves at the close of the year.
ACCOUNTING FOR INCOME TAX :
Current tax represents the amount that otherwise would have been
payable under the Income-tax Act, 1961, had the financial year been
reckoned as the basis for computation of tax payable under the
prevailing tax laws.
DEFERRED INCOME TAX :
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the differences between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
MISCELLANEOUS EXPENDITURE :
Preliminary expenses are amortised over a period of ten years in equal
instalments.
SALES:
Sales represent the amount realised or realisable for goods sold
including freight and sales tax thereon.