Mar 31, 2015
The accounting policies set out below have been applied consistently to
the periods presented in these financial statements.
(i) Basis of Preparation of financial statements
1. The financial statements are prepared in accordance with generally
accepted accounting principles in India.The company is following the
accrual system of accounting and its accounts are in compliance with
the mandatory Accounting Standards specified in 133 of the Companies
Act 2013 read with Rule 7 of the Companies (Account) Rules 2014.
Accounting Policies have continuously applied except where a newly
-issued accounting standard is initially adopted or a revision to
existing accounting standard requires a change in the accounting
policy, or is otherwise stated hereinafter.
2. There is no change in method of accounting during the year
3. The company has stopped maintaining separate books of accounts for
Dehradun Industrial unit w.e.f. 01/ 04/14 on implementation of SAP
system by the company, prior to which separate books were maintained
for Dehradun industrial Unit.
(ii) Use of Estimates
The preparation of financial statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balance of assets and liabilities, revenue and expenses and disclosures
relating to contingent liabilities. The Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these
estimates. Any revision of accounting estimates is recognised
prospectively in the current and future periods.
(iii) Revenue Recognition
i. Revenue from Sales and Job work receipts is recognised on
generation of invoices of the goods after completion of packing of
goods against confirmed orders though actual dispatch of goods may
follow the invoice date.
ii. Dividend income on investment is accounted when the right to
receive is established.
iii. All other incomes are accounted on accrual basis.
(iv) Fixed Assets
Fixed assets are stated at cost of acquisition/construction.
Cost of acquisition is inclusive of freight, duties, and taxes but net
of CENVAT and inclusive of other incidental expenses of bringing the
asset to its working condition for its intended use and interest
attributable to construction, production or acquisition of qualifying
assets. Subsequent expenditure related to an item of tangible fixed
asset are added to its book value only if they increase the future
benefits from the existing asset beyond its previously assessed
standard of performance.
Depreciation on fixed assets has been charged on Written Down Value
(WDV) basis on pro-rata basis on the basis of remaining useful life
prescribed in Schedule II of the Companies Act 2013 amount except to
the extent that assets costing up to Rs. 5000/- are not capitalised and
fully charged to Profit and loss account in the year of purchase.
The company has revised the estimated useful life of the fixed assets
in accordance with the useful life of the assets laid in the schedule -
II of the Companies Act 2013 due to which the depreciation charged is
higher by Rs. 16384749/- as compared to depreciation calculated
according to useful life of assets as per companies Act, 1956 and the
Loss of the year 2014-15 is higher to that extent.
(v) Investments
Long term investments are stated at cost less diminution other than
temporary diminution in value, if any. Current investments are stated
at lower of cost and fair value. An investment in foreign subsidiary is
stated at cost by converting at exchange rate prevailing at the time of
remittance against such investment.
(vi) Expensing out of Intangible Assets
In accordance with Accounting Standard 26 -"Intangible assets " the
useful life of company's patents , trademarks and designs have been
amortised over a period of 10 years. Cost of computer software is
amortised/expensed out equally over a period of five years.
Other major Expenses on Product Registration and brand development
expenses incurred by the company in the 2013-14 is considered to be one
time heavy expenditure the benefit of which is of enduring nature and
is expected to be received for next five years. So the company has
treated the above as deferred revenue expenditure to be written off
equally in five years, with initial year being financial year 2013-14.
(vii) Valuation of Inventories
a) Closing stocks of finished goods is valued at cost or net realizable
value which ever is lower. Closing Stock of Raw Materials, Packing
Materials is valued at the weighted average cost or net realizable
value which ever is lower.
b) Closing stock of Gifts item to be used as part of sale promotion is
valued at cost.
c) Closing Stock of Work in process is valued at the cost of materials
used there in plus conversion cost depending on the stage of
completion.
(viii) Borrowing cost:
Borrowing Cost directly attributable to the acquisition or construction
of qualifying assets is capitalised as a part of the cost of the
assets, up to the date the assets are put to use. Other borrowing costs
are charged to the Profit and Loss Account in the year in which they
are incurred.
(ix) Foreign Currency Transactions
(a). Transactions in foreign exchange which are covered by forward
contracts are accounted for at the contracted rates, the difference
between the contracted rate and the exchange rate on the date of
transaction is recognized in Profit & Loss Account. Difference relating
to transactions involving more than one financial year are carried over
the period of transaction. In respect of forward contracts which are
entered into to hedge highly probable forecasted transactions the cost
of these contracts, if any, is expensed at the end of the contract.
However there were no forward contracts taken by the company during the
year. Transactions other than those covered by forward contracts are
recognized at the exchange rate prevailing on date of transaction. Gains
& losses arising on account of realization are accounted for in Profit &
Loss Account.
(b). Monetary Assets & Liabilities in foreign currency that are
outstanding at the year end and are not covered by forward contracts are
translated at the year end exchange rates.
(x) Impairment of Assets
Fixed assets are reviewed at each reporting date to determine if there
is any indication of impairment however no asset whose carrying cost
exceeds its recoverable value is held by the company as on 31/03/2015.
(xi) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised only when there is present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of amount of the obligation cannot be made. Contingent assets
are not recognised in the financial statements since this may result in
the recognition of income that may never be realised.
(xii) Current Income Tax and Deferred Tax
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the provisions of local Income Tax
Laws as applicable to the financial year.
Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income of the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance Sheet date.
(xiii) Employee Benefits
(a). Short Term Employee Benefits:
Liability on account of short term employee benefits is recognised on
an undiscounted and accrual basis during the period when the employee
renders service/vesting period of the benefit.
(b). Post Employment Benefits:
Post retirement contribution plans such as Provident Fund are charged
to the Statement of Profit and Loss for the year when the contributions
to the respective funds accrue. Post retirement benefit such as
gratuity and leave encashment are determined and provided on the basis
of actuarial valuation.
(xiv) Segment Information
The company operates exclusively in the Pharmaceutical formulations
business segment and as such there is no reportable segment information
as per Accounting Standard 17.
(xv) The Company has also regrouped and re-classified and rearranged
the previous year figures in accordance with the requirements
applicable in the current year.
(xvi) All the figures have been rounded off to nearest of Rupee.
Mar 31, 2014
The accounting policies set out below have been applied consistently to
the periods presented in these financial statements.
(i) Basis of Preparation of financial statements
1. The financial statements are prepared in accordance with generally
accepted accounting principles in India. The company is following the
accrual system of accounting as per the provisions of sec. 209 (3)(b)
of the companies Act, 1956 and its accounts are in compliance with the
mandatory accounting standards notified under the Companies (Accounting
Standards) Rules, 2006 as amended vide Companies (Accounting Standards)
Amendment Rules, 2009 except to the extent that the Leave encashment
provision is made after deducting 30 days from the leave encashment
entitlement of the employees on a cumulative basis for the tenure of
the employment. This deduction of 30 days is paid only on retirement
and/or termination of employee & is retained by the company if the
Employee resigns without requisite notice to the company as per the
company's rules. The provision for gratuity has been made only for the
employees eligible for gratuity as on 31/03/2014 and not on the basis
of actuarial valuation as laid down under AS 15 notified under the said
rules.
2. There is no change in method of accounting during the year.
3. The company is maintaining separate books of accounts for a)
Dehradun Industrial unit which is treated as a separate division with
in the company and b) trading activities which are head quartered at
Indore.
(ii) Use of Estimates
The preparation of financial statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balance of assets and liabilities, revenue and expenses and disclosures
relating to contingent liabilities. The Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these
estimates. Any revision of accounting estimates is recognised
prospectively in the current and future periods.
(iii) Revenue Recognition
i. Revenue from Sales and Job work receipts is recognised on
generation of invoices of the goods after completion of packing of
goods against confirmed orders though actual dispatch of goods may
follow the invoice date.
ii. Dividend income on investment is accounted when the right to
receive is established.
iii. All other incomes are accounted on accrual basis.
(iv) Fixed Assets
Fixed assets are stated at cost of acquisition/construction.
Cost of acquisition is inclusive of freight, duties, and taxes but net
of CENVAT and inclusive of other incidental expenses of bringing the
asset to its working condition for its intended use and interest
attributable to construction, production or acquisition of qualifying
assets. Subsequent expenditure related to an item of tangible fixed
asset are added to its book value only if they increase the future
benefits from the existing asset beyond its previously assessed
standard of performance.
(v) Depreciation on fixed and movable assets has been charged on
Written Down Value (WDV) basis on pro-rata basis on the rates
prescribed in Schedule XIV of the Companies Act 1956 except to the
extent that assets costing up to Rs. 5000/- are not capitalised and
fully charged to Profit and loss account in the year of purchase.
(vi) Investments
Long term investments are stated at cost less diminution other than
temporary diminution in value, if any. Current investments are stated
at lower of cost and fair value. An investment in foreign subsidiary is
stated at cost by converting at exchange rate prevailing at the time of
remittance against such investment.
(vii) Expensing out of Intangible Assets
In accordance with Accounting Standard 26 -"Intangible assets " the
useful life of company's patents , trademarks and designs have been
amortised over a period of 10 years. Cost of computer software is
amortised/expensed out equally over a period of five years.
(viii) Valuation of Inventories
a) Closing stocks of finished goods is valued at cost or net realizable
value which ever is lower. Closing Stock of Raw Materials, Packing
Materials is valued at the weighted average cost or net realizable
value which ever is lower.
b) Closing stock of Gifts item to be used as part of sale promotion is
valued at cost.
c) Closing Stock of Work in process is valued at the cost of materials
used there in plus conversion cost depending on the stage of
completion.
(ix) Borrowing cost:
Borrowing Cost directly attributable to the acquisition or construction
of qualifying assets is capitalised as a part of the cost of the
assets, up to the date the assets are put to use. Other borrowing costs
are charged to the Statement of Profit and Loss in the year in which
they are incurred.
(x) Foreign Currency Transactions
(a) . Transactions in foreign exchange which are covered by forward
contracts are accounted for at the contracted
rates, the difference between the contracted rate and the exchange rate
on the date of transaction is recognized in Profit & Loss Account.
Difference relating to transactions involving more than one financial
year are carried over the period of transaction. In respect of forward
contracts which are entered into to hedge highly probable forecasted
transactions the cost of these contracts, if any, is expensed at the
end of the contract. However there were no forward contracts taken by
the company during the year.
Transactions other than those covered by forward contracts are
recognized at the exchange rate prevailing on date of transaction.
Gains & losses arising on account of realization are accounted for in
statement of Profit & Loss.
(b) . Monetary Assets & Liabilities in foreign currency that are
outstanding at the year end and are not covered by
forward contracts are translated at the year end exchange rates.
(xi) Impairment of Assets:
Fixed assets are reviewed at each reporting date to determine if there
is any indication of impairment however there is no asset whose
carrying cost exceeds its recoverable value is held by the company as
on 31/03/2014.
(xii) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised only when there is present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of amount of the obligation cannot be made. Contingent assets
are not recognised in the financial statements since this may result in
the recognition of income that may never be realised.
(xiii) Current Income Tax and Deferred Tax
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the provisions of local Income Tax
Laws as applicable to the financial year.
Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income of the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance Sheet date.
(xiv) Employee Benefits
(a) Short Term Employee Benefits:
Liability on account of short term employee benefits is recognised on
an undiscounted and accrual basis during the period when the employee
renders service/vesting period of the benefit.
(b) Post Employment Benefits:
Post retirement contribution plans such as Provident Fund & ESIC are
charged to the Statement of Profit and Loss for the year when the
contributions to the respective funds accrue. Post retirement benefit
plans such as gratuity is provided on the employees which are eligible
as on 31/03/2014 for gratuity and leave encashment are determined on
the basis of actual leaves outstanding at the year end.
(xv) Segment Information
The company operates exclusively in the Pharmaceutical business segment
and as such there is no reportable segment information as per
Accounting Standard 17.
(xvi) The Company has also regrouped and re-classified and rearranged
the previous year figures in accordance with the requirements
applicable in the current year.
(xvii) All the figures have been rounded off of to nearest of Rupee.
Mar 31, 2013
The accounting policies set out below have been applied consistently to
the periods presented in these financial statements.
(I) Basis of Preparation of financial statements
1. The financial statements are prepared in accordance with generally
accepted accounting principles in India. The company is following the
accrual system of accounting as per the provisions of sec. 209 (3)(b)
of the companies Act, 1956 and its accounts are in compliance with the
mandatory accounting standards notified under the Companies (Accounting
Standards) Rules, 2006 as amended vide Companies (Accounting Standards)
Amendment Rules, 2009 except to the extent that the Leave encashment
provision is made after deducting 30 days from the leave encashment
entitlement of the employees on a cumulative basis for the tenure of
the employment. This deduction of 30 days is paid only on retirement
and/or termination of employee & is retained by the company if the
Employee resigns without requisite notice to the company as per the
company''s rules.
The provision for gratuity has been made only for the employees
eligible for gratuity as on 31/03/2013 and not on the basis of
actuarial valuation as laid down under AS 15 notified under the said
rules.
2. There is no change in method of accounting during the year.
3. The company is maintaining separate books of accounts for a)
Dehradun Industrial unit which is treated as a separate division with
in the company and b) trading activities which are head quartered at
Indore.
4 (ii) Use of Estimates
The preparation of financial statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balance of assets and liabilities, revenue and expenses and disclosures
relating to contingent liabilities. The Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these
estimates. Any revision of accounting estimates is recognised
prospectively in the current and future periods.
(iii) Revenue Recognition
I. Revenue from Sales and Job work receipts is recognised on generation
of invoices of the goods " * after completion of packing of goods
against confirmed orders though actual dispatch of goods may follow the
invoice date.
ii. Dividend income on investment is accounted when the right to
receive is established.
iii. All other incomes are accounted on accrual basis.
(iv) Fixed Assets
Fixed assets are stated at cost of acquisition/construction.
Cost of acquisition is inclusive of freight, duties, and taxes but net
of CENVAT and inclusive of other incidental expenses of bringing the
asset to its working condition for its intended use and interest
attributable to construction, production or acquisition of qualifying
assets. Subsequent expenditure related to an item of tangible fixed
asset are added to its book value only if they increase the future
benefits from the existing asset beyond its previously assessed
standard of performance.
(v) Depreciation on fixed and movable assets
Has been charged on Written Down Value (WDV) basis on pro-rata basis on
the rates prescribed in Schedule XIV of the Companies Act 1956 except
to the extent that assets costing up to Rs. 5000/- are not capitalised
and fully charged to Profit and loss account in the year of purchase.
(vi) Investments
Long term investments are stated at cost less diminution other than
temporary diminution in value, if any. Current investments are stated
at lower of cost and fair value. An investment in foreign subsidiary is
stated at cost by converting at exchange rate prevailing at the time of
remittance against such investment.
(vii) Expensing out of Intangible Assets
In accordance with Accounting Standard 26 -"Intangible assets" the
useful life of company''s patents , trademarks and designs have been
amortised over a period of 10 years. Cost of computer software is
amortised/expensed out equally over a period of five years.
(viii) Valuation of Inventories
a) Closing stocks of finished goods is valued at cost or net realizable
value which ever is lower. Closing Stock of Raw Materials, Packing
Materials is valued at the weighted average cost or net realizable
value which ever is lower.
b) Closing stock of Gifts item to be used as part of sale promotion is
valued at cost.
c) Closing Stock of Work in process is valued at the cost of materials
used there in plus conversion cost depending on the stage of
completion.
(ix) Borrowing cost:
Borrowing Cost directly attributable to the acquisition or construction
of qualifying assets is capitalised as a part of the cost of the
assets, up to the date the assets are put to use. Other borrowing costs
are charged to the Profit and Loss Account in the year in which they
are incurred.
(x) Foreign Currency Transactions
(a) Transactions in foreign exchange which are covered by forward
contracts are accounted for at the
contracted rates, the difference between the contracted rate and the
exchange rate on the date of transaction is recognized in Profit & Loss
Account. Difference relating to transactions involving more than one
financial year are carried over the period of transaction. In respect
of forward contracts which are entered into to hedge highly probable
forecasted transactions the cost of these contracts, if any, is
expensed at the end of the contract. However there were no forward
contracts taken by the company during the year.
Transactions other than those covered by forward contracts are
recognized at the exchange rate prevailing on date of transaction.
Gains & losses arising on account of realization are accounted for in
Profit & Loss Account.
(b) Monetary Assets & Liabilities in foreign currency that are
outstanding at the year end and are not covered by forward contracts
are translated at the year end exchange rates.
(xi) Impairment of Assets:
Fixed assets are reviewed at each reporting date to determine if there
is any indication of impairment however there is no asset whose
carrying cost exceeds its recoverable value is held by the company as
on 31/03/2013.
(xii) Provisions. Contingent Liabilities and Contingent Assets
Provisions are recognised only when there is present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of amount of the obligation cannot be made. Contingent assets
are not recognised in the financial statements since this may result in
the recognition of income that may never be realised.
(xiii) Current Income Tax and Deferred Tax
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the provisions of iocal Income Tax
Laws as applicable to the financial year.
Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income of the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance Sheet date.
(xiv) Employee Benefits
(a) Short Term Employee Benefits:
Liability on account of short term employee benefits is recognised on
an undiscounted and accrual basis during the period when the employee
renders service/vesting period of the benefit.
(b) Post Employment Benefits:
Post retirement contribution plans such as Provident Fund & ESIC are
charged to the Statement of Profit and Loss for the year when the
contributions to the respective funds accrue. Post retirement benefit
plans such as gratuity is provided on the employees which are eligible
as on 31/03/2013 for gratuity and leave encashment are determined on
the basis of actual leaves outstanding at the year end.
(xv) Segment Information
The company operates exclusively in the Pharmaceutical business segment
and as such there is no k reportable segment information as per
Accounting Standard 17.
(xvi) The Company has also regrouped and re-classified and rearranged
the previous year figures in accordance with the requirements
applicable in the current year.
(xvii) All the figures have been rounded off of to nearest of Rupee.
Mar 31, 2012
(i) System of accounting.
1. The company is following the accrual system of accounting as per
the provisions of sec. 209 (3)(b) of the companies Act, 1956 and its
accounts are in compliance with the mandatory accounting standards
notified under the Companies (Accounting Standards) Rules, 2006 as
amended vide Companies (Accounting Standards) Amendment Rules, 2009
except to the extent that the provision for gratuity has been made only
for the employees eligible for gratuity as on 31/03/2012 and noton the
basis of actuarial valuation as laid down under AS 15 notified under
the said rules.
2. There is no change in method of accounting during the year.
3. The company is maintaining separate books of accounts for a)
Defraud Industrial unit which is treated as a separate division with
in the company and b) trading activities which are head quartered at
Indore.
(ii) REVENUE RECOGNITION:
All revenues and expenses are accounted for on accrual basis except to
the extent stated otherwise.
(iii) Fixed Assets
Fixed assets are stated at cost of acquisition/construction.
Cost of acquisition is inclusive of freight, duties, taxes but net of
CENVAT and inclusive of other incidental expenses and interest
attributable to construction, production or acquisition of qualifying
assets.
(iv) Depreciation on fixed and movable assets has been charged on WDV
basis on pro-rata basis on the rates prescribed in Schedule XIV of the
Companies Act 1956. Assets costing up to Rs.5000/- are fully
depreciated in the yearof purchase.
(v) Investments:
Long term investments are stated at cost less diminution other than
temporary diminution in value, if any. Current investments are stated
at lower of cost and fair value.
(vi) Expensing out of Intangible Assets
In accordance with Accounting Standard 26 -"Intangible assets " the
useful life of company's patents , trademarks and designs have been
amortised over a period of 10 years. Cost of computer software is
amortised/expensed out equally over a period of five years.
(vii) Inventory Valuation
a) Closing stocks of finished goods is valued at cost or net realizable
value which ever is lower. Closing Stock of Raw Materials, Packing
Materials is valued at the weighted average cost or net realizable
value which ever is lower.
b) Closing stock of Gifts item to be used as part of sale promotion
expenses is valued at cost.
c) Closing Stock of Work in process is valued at the cost of materials
used there in plus conversion costde pending on the stage of completion.
(viii) Borrowing cost:
Borrowing Costs directly attributable to the acquisition or
construction of qualifying assets are capitalized as a part of the cost
ofthe assets, up to the date the assets are put to use. Other borrowing
costs are charged to the Profit and Loss Account in the year in which
they are incurred.
(ix) Preliminary expenses
Opening balance of Preliminary expenses has been fully amortized in the
current year as against miscellaneous expenditure being amortized over
a period of five years upto previous year. Consequently the profit of
the financial Year 2011-12 is lower by Rs. 209433/- due to the change in
accounting policy in this regard.
(x) Foreign Currency Transactions
a. Transactions in foreign exchange which are covered by forward
contracts are accounted for at the contracted rates, the difference
between the contracted rate and the exchange rate on the date of
transaction is recognized in Profit & Loss Account. Difference relating
to transactions involving more than one financial year are carried over
the period of transaction. In respect of forward contracts which are
entered into to hedge highly probable forecasted transactions the cost
of these contracts, if any, is expensed at the end of the contract.
However there were no forward contracts taken by the company during the
previous year.
Transactions other than those covered by forward contracts are
recognized at the exchange rate prevailing on date of transaction.
Gains & losses arising on account of realization are accounted for in
Profit & Loss Account.
b. Monetary Assets & Liabilities in foreign currency that are
outstanding at the year end and are not covered by forward contracts
are translated at the year end exchange rates.
Mar 31, 2011
(i) System of accounting.
1. The company is following the accrual system of accounting as per the
provisions of sec. 209 (3)(b) of the companies Act, 1956 and its
accounts are in compliance with the mandatory accounting standards
notified under the Companies (Accounting Standards) Rules, 2006 as
amended vide Companies (Accounting Standards) Amendment Rules, 2009
except to the extent that the provision for gratuity has been made only
for the employees eligible for gratuity as on 31/03/2011 and not on the
basis of actuarial valuation as laid down under AS 15 notified under
the said rules.
2. There is no change in method of accounting during the year.
3. The company is maintaining separate books of accounts for a)
Dehradun Industrial unit which is treated as a separate division with
in the company and b) trading activities which are head quartered at
Indore.
(ii) REVENUE RECOGNITION:
All revenues and expenses are accounted for on accrual basis except to
the extent stated otherwise.
(iii) Fixed Assets
Fixed assets are stated at cost of acquisition/construction.
Cost of acquisition is inclusive of freight, duties, taxes but net of
CENVAT and inclusive of other incidental expenses and interest
attributable to construction, production or acquisition of qualifying
assets.
(iv) Depreciation on fixed and movable assets has been charged on WDV
basis on pro-rata basis on the rates prescribed in Schedule XIV of the
Companies Act 1956. Assets costing up to Rs.5000/- are fully
depreciated in the year of purchase.
(v) Investments:
Long term investments are stated at cost less diminution other than
temporary diminution in value, if any. Current investments are stated
at lower of cost and fair value.
(vi) Expensing out of Intangible Assets
In accordance with Accounting Standard 26 Â"Intangible assets " the
useful life of company''s patents , trademarks and designs have been
amortised over a period of 10 years. Cost of computer software is
amortised/expensed out equally over a period of five years.
(vii) Inventory Valuation
a) Closing stocks of finished goods is valued at cost or net realizable
value which ever is lower. Closing Stock of Raw Materials, Packing
Materials is valued at the weighted average cost or net realizable
value which ever is lower.
b) Closing stock of Gifts item to be used as part of sale promotion
expenses is valued at cost.
c) Closing Stock of Work in process is valued at the cost of materials
used there in plus conversion cost depending on the stage of
completion.
(viii) Borrowing cost:
Borrowing Costs directly attributable to the acquisition or
construction of qualifying assets are capitalised as a part of the cost
of the assets, up to the date the assets are put to use. Other
borrowing costs are charged to the Profit and Loss Account in the year
in which they are incurred.
(ix) Preliminary expenses
Preliminary expenses upto 31/03/2009 are shown as miscellaneous
expenditure in the balance sheet. Expenditure incurred for increase in
authorised capital has also been included in this head as and when the
same are incurred. The same are being amortised over a period of five
years.
The Expenses incurred after 31/03/2009 are written off in the year of
incurrence itself. In case the expenses are incurred for issue of
shares at premium the expenses are written off against the security
premium received from the issue proceeds.
(x) Foreign Currency Transactions
a. Transactions in foreign exchange which are covered by forward
contracts are accounted for at the contracted rates, the difference
between the contracted rate and the exchange rate on the date of
transaction is recognized in Profit & Loss Account. Difference relating
to transactions involving more than one financial year are carried over
the period of transaction. In respect of forward contracts which are
entered into to hedge highly probable forecasted transactions the cost
of these contracts, if any, is expensed at the end of the contract.
However there were no forward contracts taken by the company during the
previous year.
Transactions other than those covered by forward contracts are
recognized at the exchange rate prevailing on date of transaction.
Gains & losses arising on account of realization are accounted for in
Profit & Loss Account.
b. Monetary Assets & Liabilities in foreign currency that are
outstanding at the year end and are not covered by forward contracts
are translated at the year end exchange rates.
(XI) Impairment of Assets:
No asset whose carrying cost exceeds its recoverable value is held by
the company as on 31/03/2011
(xii) The cash subsidy received in the year 2007-08 and 2008-09 from
the government for set up of the Dehradun Industrial unit of the
company has been disclosed as Capital reserve in the balance sheet.
Mar 31, 2010
(i) System of accounting.
1. The company is following the accrual system of accounting as per
the provisions of sec. 209 (3)(b) of the companies Act, 1956 and its
accounts are in compliance with the mandatory accounting standards
notified under the Companies (Accounting Standards) Rules, 2006 as
amended vide Companies (Accounting Standards) Amendment Rules, 2009
except to the extent that the provision for gratuity has been made only
for the employees eligible for gratuity as on 31/03/2010 and not on the
basis of actuarial valuation as laid down under AS 15 notified under
the said rules.
2. There is no change in method of accounting during the year.
3. The company is maintaining separate books of accounts for a)
Dehradun Industrial unit which is treated as a separate division with
in the company and b) trading activities which are head quartered at
Indore.
(ii) REVENUE RECOGNITION:
1. All revenues and expenses are accounted for on accrual basis except
to the extent stated otherwise.
2. Dividend incomes are accounted on getting the right to receive the
dividend.
3. Interest income is accounted on accrual basis.
(iii) Fixed Assets
Fixed assets are stated at cost of acquisition/construction.
Cost of acquisition is inclusive of freight, duties, taxes but net of
CENVAT and inclusive of other incidental expenses and interest
attributable to construction, production or acquisition of qualifying
assets.
(iv) Depreciation on fixed and movable assets has been charged on WDV
basis on pro-rata basis on the rates prescribed in Schedule XIV of the
Companies Act 1956. Assets costing up to Rs.5000/- are fully
depreciated in the year of purchase.
(v) Investments:
Long term investments are stated at cost less diminution other than
temporary diminution in value, if any. Current investments comprising
investments Companies are stated at lower of cost and fair value.
(vi) Expensing out of Intangible Assets
In accordance with Accounting Standard 26 ÃÃIntangible assets à the
useful life of companyÃs patents , trademarks and designs have been
amortised over a period of 10 years. Cost of computer software is
amortised / expensed out equally over a period of five years.
(vii) Inventory Valuation
Closing stocks of finished goods is valued at cost or net realizable
value which ever is lower. Closing Stock of Raw Materials, Packing
Materials is valued at the weighted average cost or net realizable
value which ever is lower.
Closing stock of Gifts item to be used as part of sale promotion
expenses is valued at cost.
Closing Stock of Work in process is valued at the cost of materials
used there in plus conversion cost depending on the stage of
completion.
(viii) Borrowing cost:
Borrowing Costs directly attributable to the acquisition or
construction of qualifying assets are capitalised as a part of the cost
of the assets, up to the date the assets are put to use. Other
borrowing costs are charged to the Profit and Loss Account in the year
in which they are incurred.
(ix) Preliminary expenses
Preliminary expenses are shown as miscellaneous expenditure in the
balance sheet. Expenditure incurred for increase in authorised capital
has also been included in this head as and when the same are incurred.
The same are being amortised over a period of five years.
(x) Share Issue Expenses
The company had come out with its maiden public issue during the year
and has issued 75,00,000 equity share of Rs. 10 each at a premium of
Rs. 65 each, during the year 2009-10. Share issue Expenses of Rs.
53112965/- (including expenses incurred up to 31/03/2009 Rs. 3658706/-)
represents the expenses incurred by the company in respect of public
issue for equity shares which have been written off against the
security premium received by the company on allotment of shares in the
said public issue.
(XI) Impairment of Assets:
No asset whose carrying cost exceeds its recoverable value is held by
the company as on 31/03/2010
(xii) The cash subsidy received in the year 2007-08 and 2008-09 from
the government for set up of the Dehradun Industrial unit of the
company has been disclosed as Capital reserve in the balance sheet.
Mar 31, 2009
(i) System of accounting.
1. The company is following the accrual system of accounting as per
the provisions of sec. 209 (3)(b) of the companies Act, 1956 and its
accounts are in compliance with the mandatory accounting standards
notified under the Companies (Accounting Standards) Rules, 2006 as
amended vide Companies (Accounting Standards) Amendment Rules, 2009
except to the extent that the gratuity provision has been made only for
the employees eligible for gratuity as on 31.03.2009 and not on
actuarial valuation basis as laid down under AS 15 notified under the
said Rules.
2. There is change in method of accounting during the year to the
extent that the gratuity and leave encashment has been accounted for on
accrual basis from this year vis-a-vis being accounted for on cash
basis up to the year 2007-08. As a consequence the profit of the
Company is lower by Rs. 10,07,787.00 due to the stated change in the
accounting practice.
3. The Company is maintaining separate books of accounts for a)
Dehradun Industrial Unit which is treated as a separate division within
the Company and b) Trading activities which are headquartered at
Indore.
(ii) Fixed Assets
Fixed assets are stated at cost of acquisition/construction.
Cost of acquisition is inclusive of freight, duties, taxes but net of
CENVAT and inclusive of other incidental expenses and interest on loans
taken for acquisition of assets upto the date of commissioning of
assets.
(iii) Depreciation on fixed and movable assets has been charged on WDV
basis on pro-rata basis on the rates prescribed in Schedule XIV of the
Companies Act 1956. Assets costing upto Rs.5000/- are fully depreciated
in the year of purchase.
(iv) Investments:
Outstanding Investments (Rs. 37418/- as on 31/03/09) are long term and
stated at cost, net of provision for diminution other than temporary
diminution
(v) Deferred Revenue Expenditure:
Deferred Revenue Expenditure represents amount spent during the year
2004-05 and 2005-06, on Repair and Renovation (both interior and
exterior) & interior designing and fitting of office and godown
Premises, both being in a single building structure, taken on rent
during the year 2004-05. The lease arrangement is, for tenure of five
years, with the first option to the company for purchase, of the
building premises at the end of the lease period. Consequently the said
expenditure which is going to benefit the company for at least 5 years
(being the tenure of the lease arrangement) from and onwards 2004-05
has been classified as Deferred Revenue Expenditure.
Consequently expenditure incurred during the year 2004-05 was amortised
equally over the period of 5 years and the expenditure incurred during
the year 2005-06 has been amortised over the period of four years being
the unexpired period of tenure of the rental arrangement as on
1/4/2005. Accordingly an amount of Rs. 1550261.75 (previous year Rs.
1550261.75/-) is written off during the year.
(vi) Expensing out of intangible Assets
In accordance with Accounting Standard 26 -"Intangible assets " the
useful life of companys patents , trademarks and designs have been
amortised over a period of 10 years. Cost of computer software is
amortised /expensed out equally over a period of five years.
(vii) Inventory Valuation
Closing stocks of finished goods is valued at cost or net realizable
value which ever is lower. Closing Stock of Raw Materials, Packing
Materials is valued at the weighted average cost
Closing stock of Gifts item to be used as part of sale promotion
expenses is valued at cost.
Closing Stock of Work in process is valued at the cost of materials
used there in plus conversion cost depending on the stage of
completion.
(viii) Borrowing cost:
Borrowing Costs directly attributable to the acquisition or
construction of fixed assets are capitalised as a part of the cost of
the assets, up to the date the assets are put to use. Other borrowing
costs are charged to the Profit and Loss Account in the year in which
they are incurred.
(ix) Preliminary expenses
Preliminary expenses are shown as miscellaneous expenditure in the
balance sheet. Expenditure incurred for increase in authorised capital
has also been included in this head as and when the same are incurred.
The same are being amortised over a period of five years.
(x) Other Preoperative Expenses
Other Preoperative Expenses of Rs. 3609240/- represent the expenses
incurred by the company in respect of proposed initial public offer for
equity shares of the company. The same shall be written off in five
years after completion of the proposed Public Issue activity.
(xi) Impairment of Assets:
No asset whose carrying cost exceeds its recoverable value is held by
the company as on 31.03.2009.
(xii) The cash subsidy received in the year 2007-08 and 2008-09 from
the government for set up of the Dehradun Industrial unit of the
company has been disclosed as Capital reserve in the balance sheet.
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