Mar 31, 2015
A) Basis of Accounting and Accounting Conventions:
The financial statements of the Company have been prepared in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the
relevant provisions of the Companies Act, 2013. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
b) Use of Estimates:
The preparation of financial statements in conformity with 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
financial statements and results of the operations during the reporting
period. Although these estimates are based upon the management's best
knowledge of current events and actions, actual results could differ
from these estimates.
c) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and revenue can be reliably
measured.
Revenue from sale of goods is recognized on dispatch which coincides
with transfer of significant risks and rewards to customer and is
exclusive of excise duty and net of trade discounts, sales returns and
sales tax, where applicable.
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.Dividend is recognized
as and when the company's right to receive payment is established.
d) Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation,
impairment losses and specific grants/subsidies, if any. Cost includes
purchase price, fright, non refundable taxes and duties and any
identifiable expenditure to bring the assets to its present location
and working condition for intended use. Finance cost relating to
acquisition of fixed assets which takes substantial period of time to
get ready for use are included to the extent they relate to the period
till such assets are ready for its indented use.
Expenditure directly relating to construction activities capitalized.
Indirect is capitalized to the extent those relate to the construction
activity or is incidental there to. Income earned during the
construction period is deducted from the total expenditure relating to
construction activity.
Assets retired from active use and held for disposal are stated at
their estimated net releasable values or net book values, whichever is
lower.
e) Depreciation:
Depreciation has been provided on the straight-line method as per the
life period prescribed in Part "C" of Schedule II of The Companies Act
2013
f) Intangible Assets:
Cost relating to licenses and other intangible assets, which are
acquired, are capitalized and amortized on the useful life of the
assets as estimated by the management.
g) Impairment :
The carrying amount of the assets is reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
its value in use, the estimates of the time value of money and risks
specific to the asset.
After impairments are carried at costs, however, diminution in value is
provided to recognize a decline, other than temporary, in the value of
the investments.
h) Government grants and subsidies :
Grants and subsidies are recognized when there is a reasonable
assurance that the grant or subsidy will be received and that all
underline conditions there to will be complied with. When grant or
subsidy relates an asset, its value is deducted in arriving in carrying
amount of the related asset.
i) Investments:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investment. All other
Investments are classified as long term investments current investments
are carried at lower of cost and fair value determined on individual
investment basis.
Long term investments carried at cost. However, diminishing in value is
provided to recognize a decline, other than temporary, in the value of
investments.
j) Inventories:
Raw-materials, packing materials, stores & spares and consumables
valued at lower of cost, calculated on "First In First Out" basis, and
net realizable value. Items held for use in the production of
inventories and not written down below cost.If the finished product in
which they will be incorporated are expected to be sold at or above
cost. Finished goods and work-in-progress are valued at lower of cost
and net realizable value. Cost includes material, labour and a
proportion of appropriate over heads. Cost of finished goods includes
excise duty wherever applicable. Cost is determined on weighted basis.
Trading goods are valued at lower of cost and net realizable value.Net
realizable value is the estimated selling price in the ordinary course
of business, reduced by the estimated cost of computation costs to
affect the sale.
k) Income taxes:
Tax expenses companies of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflected the impact of current year timing difference between taxable
income and accounting income for the year and reverser of timing
differences of earlier years.
Deferred Tax is measured based on tax rates enacted or subsequently
enacted at the Balance Sheet Date. Deferred tax assets are recognized
only to the extent that there is reasonable certainly that sufficient
future taxable income will be available against which such deferred tax
asset can be realized. In situations where the company unobserved
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty support by convincing
evidence that they can be realized against future taxable profits.
Un-recognized deferred tax assets of earlier years are re-assessed and
recognized to the extent that it has become reasonably certain or
virtually certain, as the case may be that future taxable income will
be available against which such deferred tax assets can be realized.
The carrying amount of the deferred tax assets are reviewed at each
balance sheet date. The company writes- down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such write-down is reversed to the extent
that it becomes reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will available.
l) Foreign Currency Transactions:
Initial Recognition: Foreign currency transactions are recorded in the
reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and foreign currency at
the date of the transaction.
Conversion: Foreign currency monetary items are reported at yearend
rates. Non-monetary items which are carried in terms of historical cost
denominated in foreign currency are reported using the exchange rate at
the date of transaction.
Exchange differences: Exchange differences are arising on the
settlement of monetary items or on reporting monetary items of company
at rates different from those at which they were initially recorded
during the year, or reported in previous financial statements, are
recognized as income or as expense in the year in which they arise.
Forward exchange contracts not intended for trading or speculation
purposes: In case of forward exchange contracts, difference between the
forward rate and exchange rate on the date of transaction is recognized
as expense or income over the life the contract. Exchange differences
on such contracts are recognized in the statement of profit and loss in
the year in which the exchange rates change. Any profit or loss arising
on cancellation or renewal of forward exchange contract is recognized
as income or expense for the year.
m) Export Benefits, incentives and licenses:
Export benefits on account of entitlement to import of goods free of
duty under the 'Duty Entitlement Pass Book under Duty Exemption Scheme'
and benefits on account of export promotion scheme included in revenues
are accrued and accounted in the year export.
n) Borrowing Cost:
Borrowing costs that are directly relatable to acquisition,
construction or production of qualifying assets is capitalized as part
of the cost of such asset. All other borrowing costs are charged to
revenue.
o) Provisions and Contingent Liabilities:
A provision is recognized when the company has a present obligation as
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. Provisions are not discounted to its
present value and are determined based on best estimate require to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet and adjusted to reflect the current best estimates.
Financial effect of contingent liabilities is disclosed based on
information available up to the date on which financial statements is
approved. However where a reasonable estimate of financial effect be
made, suitable disclosures are made with regard to this fact and the
existence and nature of the contingent liability.
Mar 31, 2014
A) Basis of Accounting and Accounting Conventions:
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the Indian Generally
Accepted Principles Accepted Accounting Principles (IGAAP) comprising
the Accounting standards Notified under Companies Accounting Standards
Rules 2006 by the Central Government of India under section 211(3C)of
the Companies Act 1956, Various pronouncements of the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956 and guidelines issued by the Securities Exchange Board of India
(SEBI).
b) Use of Estimates:
The preparation of financial statements in conformity with 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
financial statements and results of the operations during the reporting
period. Although these estimates are based upon the management's best
knowledge of current events and actions, actual results could differ
from these estimates.
c) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and revenue can be reliably
measured.
Revenue from sale of goods is recognized on dispatch which coincides
with transfer of significant risks and rewards to customer and is
exclusive of excise duty and net of trade discounts, sales returns and
sales tax, where applicable.
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.Dividend is recognized
as and when the company's right to receive payment is established.
d) Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation,
impairment losses and specific grants/subsidies, if any. Cost includes
purchase price, fright, non refundable taxes and duties and any
identifiable expenditure to bring the assets to its present location
and working condition for intended use. Finance cost relating to
acquisition of fixed assets which takes substantial period of time to
get ready for use are included to the extent they relate to the period
till such assets are ready for its indented use.
Expenditure directly relating to construction activities capitalized.
Indirect is capitalized to the extent those relate to the construction
activity or is incidental there to. Income earned during the
construction period is deducted from the total expenditure relating to
construction activity.
Assets retired from active use and held for disposal are stated at
their estimated net releasable values or net book values, whichever is
lower.
e) Depreciation:
Depreciation on Fixed Assets has been provided on Straight Line Method,
based on the useful life of the assets as estimated by the management
which generally coincides with rates specified in Schedule XIV to the
Companies Act, 1956. Depreciation on addition/deletion of assets during
the year is provided on a pro-rata basis.
f) Intangible Assets:
Cost relating to licenses and other intangible assets, which are
acquired, are capitalized and amortized on the useful life of the
assets as estimated by the management.
g) Impairment :
The carrying amount of the assets is reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
its value in use, the estimates of the time value of money and risks
specific to the asset.
After impairments are carried at costs, however, diminution in value is
provided to recognize a decline, other than temporary, in the value of
the investments.
h) Government grants and subsidies :
Grants and subsidies are recognized when there is a reasonable
assurance that the grant or subsidy will be received and that all
underline conditions there to will be complied with. When grant or
subsidy relates an asset, its value is deducted in arriving in carrying
amount of the related asset.
i) Investments:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investment. All other
Investments are classified as long term investments current investments
are carried at lower of cost and fair value determined on individual
investment basis.
Long term investments carried at cost. However, diminishing in value is
provided to recognize a decline, other than temporary, in the value of
investments.
j) Inventories:
Raw-materials, packing materials, stores & spares and consumables
valued at lower of cost, calculated on "First In First Out" basis, and
net realizable value. Items held for use in the production of
inventories and not written down below cost. If the finished product in
which they will be incorporated are expected to be sold at or above
cost. Finished goods and work-in-progress are valued at lower of cost
and net realizable value. Cost includes material, labour and a
proportion of appropriate over heads. Cost of finished goods includes
excise duty wherever applicable. Cost is determined on weighted basis.
Trading goods are valued at lower of cost and net realizable value.Net
realizable value is the estimated selling price in the ordinary course
of business, reduced by the estimated cost of computation costs to
affect the sale.
k) Income taxes:
Tax expenses companies of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflected the impact of current year timing difference between taxable
income and accounting income for the year and reverser of timing
differences of earlier years.
Deferred Tax is measured based on tax rates enacted or subsequently
enacted at the Balance Sheet Date. Deferred tax assets are recognized
only to the extent that there is reasonable certainly that sufficient
future taxable income will be available against which such deferred tax
asset can be realized. In situations where the company unobserved
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty support by convincing
evidence that they can be realized against future taxable profits.
Un-recognized deferred tax assets of earlier years are re-assessed and
recognized to the extent that it has become reasonably certain or
virtually certain, as the case may be that future taxable income will
be available against which such deferred tax assets can be realized.
The carrying amount of the deferred tax assets are reviewed at each
balance sheet date. The company writes-down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such write-down is reversed to the extent
that it becomes reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will available.
l) Foreign Currency Transactions:
Initial Recognition: Foreign currency transactions are recorded in the
reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and foreign currency at
the date of the transaction.
Conversion: Foreign currency monetary items are reported at yearend
rates. Non-monetary items which are carried in terms of historical cost
denominated in foreign currency are reported using the exchange rate at
the date of transaction.
Exchange differences: Exchange differences are arising on the
settlement of monetary items or on reporting monetary items of company
at rates different from those at which they were initially recorded
during the year, or reported in previous financial statements, are
recognized as income or as expense in the year in which they arise.
Forward exchange contracts not intended for trading or speculation
purposes: In case of forward exchange contracts, difference between the
forward rate and exchange rate on the date of transaction is recognized
as expense or income over the life the contract. Exchange differences
on such contracts are recognized in the statement of profit and loss in
the year in which the exchange rates change. Any profit or loss arising
on cancellation or renewal of forward exchange contract is recognized
as income or expense for the year.
m) Export Benefits, incentives and licenses:
Export benefits on account of entitlement to import of goods free of
duty under the 'Duty Entitlement Pass Book under Duty Exemption Scheme'
and benefits on account of export promotion scheme included in revenues
are accrued and accounted in the year export.
n) Borrowing Cost:
Borrowing costs that are directly relatable to acquisition,
construction or production of qualifying assets is capitalized as part
of the cost of such asset. All other borrowing costs are charged to
revenue.
o) Provisions and Contingent Liabilities:
A provision is recognized when the company has a present obligation as
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. Provisions are not discounted to its
present value and are determined based on best estimate require to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet and adjusted to reflect the current best estimates.
Financial effect of contingent liabilities is disclosed based on
information available up to the date on which financial statements is
approved. However where a reasonable estimate of financial effect be
made, suitable disclosures are made with regard to this fact and the
existence and nature of the contingent liability.
Mar 31, 2013
A) Basis of Accounting and Accounting Conventions:
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the Indian Generally
Accepted Principles Accepted Accounting Principles (IGAAP) comprising
the Accounting standards Notified under Companies Accounting Standards
Rules 2006 by the Central Government of India under section 211(3C)of
the Companies Act 1956, Various pronouncements of the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956 and guidelines issued by the Securities Exchange Board of India
(SEBI).
b) Use of Estimates:
The preparation of financial statements in conformity with 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
financial statements and results of the operations during the reporting
period. Although these estimates are based upon the management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
c) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and revenue can be reliably
measured.
Revenue from sale of goods is recognized on dispatch which coincides
with transfer of significant risks and rewards to customer and is
exclusive of excise duty and net of trade discounts, sales returns and
sales tax, where applicable.
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend is recognized as and when the company''s right to receive
payment is established.
d) Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation,
impairment losses and specific grants/subsidies, if any. Cost includes
purchase price, fright, non refundable taxes and duties and any
identifiable expenditure to bring the assets to its present location
and working condition for intended use. Finance cost relating to
acquisition of fixed assets which takes substantial period of time to
get ready for use are included to the extent they relate to the period
till such assets are ready for its indented use.
Expenditure directly relating to construction activities capitalized.
Indirect is capitalized to the extent those relate to the construction
activity or is incidental there to. Income earned during the
construction period is deducted from the total expenditure relating to
construction activity.
Assets retired from active use and held for disposal are stated at
their estimated net releasable values or net book values, whichever is
lower.
e) Depreciation:
Depreciation on Fixed Assets has been provided on Straight Line Method,
based on the useful life of the assets as estimated by the management
which generally coincides with rates specified in Schedule XIV to the
Companies Act, 1956. Depreciation on addition/deletion of assets during
the year is provided on a pro-rata basis.
f) Intangible Assets:
Cost relating to licenses and other intangible assets, which are
acquired, are capitalized and amortized on the useful life of the
assets as estimated by the management.
g) Impairment :
The carrying amount of the assets is reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
its value in use, the estimates of the time value of money and risks
specific to the asset.
After impairments are carried at costs, however, diminution in value is
provided to recognize a decline, other than temporary, in the value of
the investments.
h) Government grants and subsidies :
Grants and subsidies are recognized when there is a reasonable
assurance that the grant or subsidy will be received and that all
underline conditions there to will be complied with. When grant or
subsidy relates an asset, its value is deducted in arriving in carrying
amount of the related asset.
i) Investments:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investment. All other
Investments are classified as long term investments current investments
are carried at lower of cost and fair value determined on individual
investment basis.
Long term investments carried at cost. However, diminishing in value is
provided to recognize a decline, other than temporary, in the value of
investments.
j) Inventories:
Raw-materials, packing materials, stores & spares and consumables
valued at lower of cost, calculated on ''First In First Out" basis, and
net realizable value. Items held for use in the production of
inventories and not written down below cost. If the finished product in
which they will be incorporated are expected to be sold at or above
cost.
Finished goods and work-in-progress are valued at lower of cost and net
realizable value. Cost includes material, labour and a proportion of
appropriate over heads. Cost of finished goods includes excise duty
wherever applicable. Cost is determined on weighted basis.
Trading goods are valued at lower of cost and net realizable value.
Net realizable value is the estimated selling price in the ordinary
course of business, reduced by the estimated cost of computation costs
to affect the sale.
k) Income taxes:
Tax expenses companies of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflected the impact of current year timing difference between taxable
income and accounting income for the year and reverser of timing
differences of earlier years.
Deferred Tax is measured based on tax rates enacted or subsequently
enacted at the Balance Sheet Date. Deferred tax assets are recognized
only to the extent that there is reasonable certainly that sufficient
future taxable income will be available against which such deferred tax
asset can be realized. In situations where the company unobserved
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty support by convincing
evidence that they can be realized against future taxable profits.
Un-recognized deferred tax assets of earlier years are re-assessed and
recognized to the extent that it has become reasonably certain or
virtually certain, as the case may be that future taxable income will
be available against which such deferred tax assets can be realized.
The carrying amount of the deferred tax assets are reviewed at each
balance sheet date. The company writes- down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such write-down is reversed to the extent
that it becomes reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will available.
l) Foreign Currency Transactions:
Initial Recognization: Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and foreign currency at
the date of the transaction.
Conversion: Foreign currency monetary items are reported at year end
rates. Non-monetary items which are carried in terms of historical cost
denominated in foreign currency are reported using the exchange rate at
the date of transaction.
Exchange differences: Exchange differences are arising on the
settlement of monetary items or on reporting monetary items of company
at rates different from those at which they were initially recorded
during the year, or reported in previous financial statements, are
recognized as income or as expense in the year in which they arise.
Forward exchange contracts not intended for trading or speculation
purposes: In case of forward exchange contracts, difference between the
forward rate and exchange rate on the date of transaction is recognized
as expense or income over the life the contract. Exchange differences
on such contracts are recognized in the statement of profit and loss in
the year in which the exchange rates change. Any profit or loss arising
on cancellation or renewal of forward exchange contract is recognized
as income or expense for the year.
m) Export Benefits, incentives and licenses:
Export benefits on account of entitlement to import of goods free of
duty under the ÂDuty Entitlement Pass Book under Duty Exemption Scheme''
and benefits on account of export promotion scheme included in revenues
are accrued and accounted in the year export.
n) Borrowing Cost:
Borrowing costs that are directly relatable to acquisition,
construction or production of qualifying assets is capitalized as part
of the cost of such asset. All other borrowing costs are charged to
revenue.
o) Provisions and Contingent Liabilities:
A provision is recognized when the company has a present obligation as
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. Provisions are not discounted to its
present value and are determined based on best estimate require to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet and adjusted to reflect the current best estimates.
Financial effect of contingent liabilities is disclosed based on
information available up to the date on which financial statements is
approved. However where a reasonable estimate of financial effect be
made, suitable disclosures are made with regard to this fact and the
existence and nature of the contingent liability.
Mar 31, 2011
1. Basis of Accounting and Accounting Conventions:
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the Indian Generally
Accepted Principles Accepted Accounting Principles (IGAAP) comprising
the Accounting standards Notified under Companies Accounting Standards
Rules 2006 by the Central Government of India under section 211(3C)of
the Companies Act 1956, Various pronouncements of the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956 and guidelines issued by the Securities Exchange Board of India
(SEBI).
2. Use of Estimates:
The preparation of financial statements in conformity with 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
financial statements and results of the operations during the reporting
period. Although these estimates are based upon the management's best
knowledge of current events and actions, actual results could differ
from these estimates.
3. Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and revenue can be reliably
measured.
Revenue from sale of goods is recognized on dispatch which coincides
with transfer of significant risks and rewards to customer and is
exclusive of excise duty and net of trade discounts, sales returns and
sales tax, where applicable.
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend is recognized as and when the company's right to receive
payment is established.
4. Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation,
impairment losses and specific grants/ subsidies, if any. Cost includes
purchase price, fright, non refundable taxes and duties and any
identifiable expenditure to bring the assets to its present location
and working condition for intended use. Finance cost relating to
acquisition of fixed assets which takes substantial period of time to
get ready for use are included to the extent they relate to the period
till such assets are ready for its indented use.
Expenditure directly relating to construction activities capitalized.
Indirect is capitalized to the extent those relate to the construction
activity or is incidental there to. Income earned during the
construction period is deducted from the total expenditure relating to
construction activity.
Assets retired from active use and held for disposal are stated at
their estimated net releasable values or net book values, whichever is
lower.
5. Depreciation:
Depreciation on Fixed Assets has been provided on Straight Line Method,
based on the useful life of the assets as estimated by the management
which generally coincides with rates specified in Schedule XIV to the
Companies Act, 1956. Depreciation on addition/deletion of assets during
the year is provided on a pro-rata basis.
6. Intangible Assets:
Cost relating to licenses and other intangible assets, which are
acquired, are capitalized and amortized on the useful life of the
assets as estimated by the management.
7. Impairment:
The carrying amount of the assets is reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
its value in use, the estimates of the time value of money and risks
specific to the asset.
After impairments are carried at costs, however, diminution in value is
provided to recognize a decline, other than temporary, in the value of
the investments.
8. Government grants and subsidies:
Grants and subsidies are recognized when there is a reasonable
assurance that the grant or subsidy will be received and that all
underline conditions there to will be complied with. When grant or
subsidy relates an asset, its value is deducted in arriving in carrying
amount of the related asset.
9. Investments:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investment. All other
Investments are classified as long term investments current investments
are carried at lower of cost and fair value determined on individual
investment basis.
Long term investments carried at cost. However, diminishing in value is
provided to recognize a decline, other than temporary, in the value of
investments.
10.Inventories:
Raw-materials, packing materials, stores & spares and consumables
valued at lower of cost, calculated on "First In First Out" basis, and
net realizable value. Items held for use in the production of
inventories and not written down below cost. If the finished product in
which they will be incorporated are expected to be sold at or above
cost.
Finished goods and work-in-progress are valued at lower of cost and net
realizable value. Cost includes material, labour and a proportion of
appropriate over heads. Cost of finished goods includes excise duty
wherever applicable. Cost is determined on weighted basis.
Trading goods are valued at lower of cost and net realizable value.
Net realizable value is the estimated selling price in the ordinary
course of business, reduced by the estimated cost of computation costs
to affect the sale.
11.Employee Benefits:
Employee benefit in the form of provident fund is a defined
contribution scheme and the contributions are charged to profit and
loss account of the year when the contribution to the respective funds
is due. There are no other obligations other than the contributions
payable to the respective authorities.
12.Income taxes:
Tax expenses companies of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflected the impact of current year timing difference between taxable
income and accounting income for the year and reverser of timing
differences of earlier years.
Deferred Tax is measured based on tax rates and the tax loss enacted or
subsequently enacted at the Balance Sheet Date. Deferred tax assets are
recognized only to the extent that there is reasonable certainly that
sufficient future taxable income will be available against which such
deferred tax asset can be realized. In situations where the company
unobserved depreciation or carry forward tax losses, all deferred tax
assets are recognized only if there is virtual certainty support by
convincing evidence that they can be realized against future taxable
profits.
Un-recognised deferred tax assets of earlier years are re-assessed and
recognized to the extent that it has become reasonably certain or
virtually certain, as the case may be that future taxable income will
be available against which such deferred tax assets can be realized.
The carrying amount of the deferred tax assets are reviewed at each
balance sheet date. The company writes-down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax
asset can be realized. Any such write-down is reversed to the extent
that it becomes reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will available.
13.Foreign Currency Transactions:
Initial Recognisation: Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and foreign currency at
the date of the transaction.
Conversion: Foreign currency monetary items are reported at yearend
rates. Non-monetary items which are carried in terms of historical cost
denominated in foreign currency are reported using the exchange rate at
the date of transaction.
Exchange differences: Exchange differences are arising on the
settlement of monetary items or on reporting monetary items of company
at rates different from those at which they were initially recorded
during the year, or reported in previous financial statements, are
recognized as income or as expense in the year in which they arise.
Forward exchange contracts not intended for trading or speculation
purposes: In case of forward exchange contracts, difference between the
forward rate and exchange rate on the date of transaction is recognized
as expense or income over the life the contract. Exchange differences
on such contracts are recognized in the statement of profit and loss in
the year in which the exchange rates change. Any profit or loss arising
on cancellation or renewal of forward exchange contract is recognized
as income or expense for the year.
14.Export Benefits, incentives and licenses:
Export benefits on account of entitlement to import of goods free of
duty under the 'Duty Entitlement Pass Book under Duty Exemption Scheme'
and benefits on account of export promotion scheme included in revenues
are accrued and accounted in the year export.
15.Borrowing Cost:
Borrowing costs that are directly relatable to acquisition,
construction or production of qualifying assets is capitalized as part
of the cost of such asset. All other borrowing costs are charged to
revenue.
16.Earnings per share:
Basic earnings per share is calculated by dividing net profit or loss
for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effects of all dilutive potential equity shares.
17.Provisions and Contingent Liabilities:
A provision is recognized when the company has a present obligation as
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. Provisions are not discounted to its
present value and are determined based on best estimate require to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet and adjusted to reflect the current best estimates.
Financial effect of contingent liabilities is disclosed based on
information available upto the date on which financial statements is
approved. However where a reasonable estimate of financial effect be
made, suitable disclosures are made with regard to this fact and the
existence and nature of the contingent liability.
Mar 31, 2010
1. Accounting convention & concepts
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the Indian Generally
Accepted Principles Accepted Accounting Principles (IGAAP) comprising
the Accounting standards Notified under Companies Accounting Standards
Rules 2006 by the Central Government of India under section 211 (3C)of
the Companies Act 1956, Various pronouncements of the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956 and guidelines issued by the Securities Exchange Board of India
(SEBI).
Accounting policies have been consistently applied except where a newly
issued Accounting Standard is initially adopted or a revision to an
existing Accounting Standard requires a change in the Accounting policy
hitherto in use.
2. Revenue Recognition
All income and expenditures are accounted for on accrual basis.
Dividend Income is recognized as and when received.
3. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
includes all identifiable expenditure to bring the assets to its
present location and condition for intended use.
4. Depreciation
Depreciation on Fixed Assets has been provided on Straight Line Method
at the rates specified in Schedule XVI of the Companies Act, 1956.
Depreciation on addition/deletion of assets during the year is provided
on a pro-rata basis.
5. Investments
Investments held by the Company are long term in nature which are
carried at cost. Provision against diminution in value of investment
has been made in case diminution is considered as other than temporary
as per the criteria laid down by the Board of Directors, after
considering that such investment are if strategic in nature. During the
year through an EGM resolution, the company has decided to add the
assets of its subsidiary company to Fixed Assets in lieu of investments
and to that extent all the assets of the subsidiary company have been
added to the assets of the company in lieu of investments and
subsidiary company was allowed to opt for voluntary winding-up.
6. Valuation of Inventories
Closing Stock is valued at cost or net realizable value whichever is
lower. Cost for the above purpose is ascertained on FIFO Method.
7. Taxation
Current tax is determined as the tax payable in respect of taxable
income for the year.
Deferred tax for the year is recognized on timing difference; being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized and carried
forward only if there is a reasonable / virtual certainty of
realization.
8. Sales
Local Sales included the amount of MVAT