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Accounting Policies of Shree Rama Multi-Tech Ltd. Company
Mar 31, 2025
[B] Material Accounting Policies:
a) Basis of preparation
(i) Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting
Standards (''Ind AS'') as notified under the Companies (Indian Accounting Standards) Rules,
2015 read with Section 133 of the Companies Act, 2013 and presentation requirements of
Division II of Schedule III to the Companies Act, 2013 (as amended from time to time).
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the
following:
1) certain financial assets and liabilities that are measured at fair value;
2) defined benefit plans - plan assets measured at fair value;
3) assets held for sale - measured at lower of carrying amount of fair value less cost to
sell
(iii) Current non-current classification
All assets and liabilities have been classified as current or non-current as per the
Company''s normal operating cycle (twelve months) and other criteria set out in the
Schedule III to the Act.
(iv) Functional currency
The financial statements are presented in Indian rupee (INR), which is Company''s
functional and presentation currency
(v) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the
nearest lakh as per the requirement of Schedule III, unless otherwise stated.
b) Key accounting estimates and judgments
The estimates and judgments used in the preparation of the financial statements are
continuously evaluated by the company and are based on historical experience and various
other assumptions and factors (including expectations of future events) that the company
believes to be reasonable under the existing circumstances. Differences between actual results
and estimates are recognized in the period in which the results are known/materialized.
The said estimates are based on the facts and events, that existed as at the reporting date, or
that occurred after that date but provide additional evidence about conditions existing as at the
reporting date.
c) Fair value measurement
The fair values of the financial assets and liabilities are measured at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.
All financial instruments are initially recognized and subsequently re-measured at fair value as
described below:
1) The fair value of investment in quoted equity shares and mutual funds is measured at
quoted price or NAV respectively.
2) Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the
counterparty. Based on the evaluation, allowances are taken to account for the expected
losses of these receivables.
3) The fair value of forward foreign exchange contracts and currency swaps is determined
using forward exchange rates and yield curves at the balance sheet date.
The company uses the following hierarchy for determining and disclosing the fair values of
financial instruments by valuation technique:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3: Inputs are not based on observable market data (unobservable inputs).
At each reporting date, the management analyses the movements in the values of assets and
liabilities which are required to be re-measured or re-assessed as per the Company''s
accounting policies. For this analysis, the management verifies the major inputs applied in the
latest valuation by agreeing the information in the valuation computation to contracts and other
relevant documents.
The management, in conjunction with the Company''s external valuers, wherever required, also
compares the change in the fair value of each asset and liability with relevant external sources
to determine whether the change is reasonable on yearly basis.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy, as explained above.
d) Property, plant and equipment
Freehold land is carried at cost. All other items of property, plant and equipment are stated at
cost, net of recoverable taxes, less depreciation and impairment losses, if any. Such cost
includes Purchase price, borrowing cost and other cost that is directly attributable to the
acquisition of the items.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to the Statement of Profit and Loss during the
reporting period in which they are incurred.
All expenditure incurred towards property, plant and equipment including expenditure incurred
during construction / new projects are accumulated and shown as capital work in progress and
not depreciated until such assets are ready for commercial use.
Depreciation methods, estimated useful lives and residual value
Depreciation is provided on a Straight Line Method over the estimated useful lives of assets.
The Company depreciates its property, plant and equipment over the useful life in the manner
prescribed in Schedule II to the Act, and management believe that useful life of assets are same
as those prescribed in Schedule II to the Act, except for certain plant and machinery which
based on an independent technical evaluation, life has been estimated as 20 years (on multiple
shift basis) and for cylinders life has been estimated as 5 years, which is different from that
prescribed in Schedule II to the Act.
The residual values are not more than 5% of the original cost of the asset. The assets residual
values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in the Statement of Profit and Loss.
e) Intangible Assets
Computer software are stated at cost, less accumulated amortisation and impairments, if any.
Amortisation method and useful life
The Company amortizes computer software using the straight-line method over the period of 3
years. Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in the Statement of Profit and Loss.
f) Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash on hand, cash at bank, deposits held at call with financial institutions, other short¬
term highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
g) Inventories
Items of inventories of Raw Material, Finished goods, Spares and Stores, Packing Material &
Fuel are valued at lower of cost or net realizable value except waste which is valued at
estimated net realizable value. Cost of inventories comprise of cost of purchase, cost of
conversion and other costs including manufacturing overheads incurred in bringing them to their
respective present location and condition. Cost is determined on weighted average method.
Net realisable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and the estimated costs necessary to make the sale. Obsolete,
slow-moving and defective inventories are identified by management and wherever necessary,
provision is created for such inventories.
h) Financial instruments
i. Recognition and initial measurement
All financial assets and financial liabilities are initially recognized when the Company
becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item not at
fair value through profit and loss (FVTPL), transaction costs that are directly attributable to
its acquisition or issue. Trade receivables that do not contain a significant financing
component are measured at the transaction price determined under Ind AS 115.
ii. Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at
⢠amortized cost;
⢠Fair Value through Other Comprehensive Income (FVOCI) - equity investment; or
⢠Fair Value Through Profit and Loss (FVTPL)
Financial assets are not reclassified subsequent to their initial recognition, except if and in
the period the Company changes its business model for managing financial assets.
A financial asset is measured at amortized cost if it meets both of the following conditions
and is not designated as at FVTPL:
⢠The asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
⢠The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may
irrevocably elect to present subsequent changes in the investment''s fair value in OCI.
(designated as FVOCI - equity investment). This election is made on an investment-by¬
investment basis.
All financial assets not classified as measured at amortized cost or FVOCI as described
above are measured at FVTPL. This includes all derivative financial assets. On initial
recognition, the Company may irrevocably designate a financial asset that otherwise meets
the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial liabilities
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial
liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it
is designated as such on initial recognition. Financial liabilities at FVTPL are measured at
fair value and net gains and losses, including any interest expense, are recognized in profit
or loss. Other financial liabilities are subsequently measured at amortized cost using the
effective interest method. Interest expense and foreign exchange gains and losses are
recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or
loss.
iii. De-recognition
The company de-recognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the rights to receive the contractual cash flows
in a transaction in which substantially all of the risks and rewards of ownership of the
financial asset are transferred or in which the company neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the
financial asset.
If the company enters into transactions whereby it transfers assets recognized on its
balance sheet, but retains either all or substantially all of the risks and rewards of the
transferred assets, the transferred assets are not derecognized.
Financial liabilities
The company de-recognizes a financial liability when its contractual obligations are
discharged or cancelled, or expire. The company also de-recognizes a financial liability
when its terms are modified and the cash flows under the modified terms are substantially
different. In this case, a new financial liability based on the modified terms is recognized at
fair value. The difference between the carrying amount of the financial liability extinguished
and the new financial liability with modified terms is recognized in profit or loss.
iv. Off-setting
Financial assets and financial liabilities are offset and the net amount presented in the
balance sheet when, and only when, the company currently has a legally enforceable right
to set off the amounts and it intends either to settle them on a net basis or to realize the
asset and settle the liability simultaneously.
i) Borrowings
Borrowings are initially recognized at net of transaction costs incurred and measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in the Statement of Profit and Loss over the period of the
borrowings using the effective interest method.
Preference shares, which are mandatorily redeemable on a specific date are classified as
liabilities.
j) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset that necessarily takes a substantial period of time to get ready for its intended use or sale
are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the
period in which they occur. Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.
Mar 31, 2024
[B] Material Accounting Policies:
a) Basis of preparation
(i) Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting Standards (âInd AS ) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (as amended from time to time).
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
1) certain financial assets and liabilities that are measured at fair value;
2) defined benefit plans - plan assets measured at fair value;
3) assets held for sale - measured at lower of carrying amount of fair value less cost to sell
(iii) Current non-current classification
All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.
(iv) Functional currency
The financial statements are presented in Indian rupee (INR), which is Company''s functional and presentation currency
(v) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the requirement of Schedule III, unless otherwise stated.
b) Key accounting estimates and judgments
The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognized in the period in which the results are known/matehalized.
The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.
c) Fair value measurement
The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
1) The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NA V respectively.
2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.
3) The fair value of forward foreign exchange contracts and currency swaps /s determined using forward exchange rates and yield curves at the balance sheet date.
The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs are not based on observable market data (unobservable inputs).
At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company''s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The management, in conjunction with the Companyâs external valuers, wherever required, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable on yearly basis.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.
d) Property, plant and equipment
Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost, net of recoverable taxes, less depreciation and impairment losses, if any. Such cost includes Purchase price, borrowing cost and other cost that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.
All expenditure incurred towards fixed assets including expenditure incurred during construction /new projects are accumulated and shown as capital work in progress and not depreciated until such assets are ready for commercial use.
Depreciation methods, estimated useful lives and residual value
Depreciation is provided on a Straight Line Method over the estimated useful lives of assets.
The Company depreciates its property, plant and equipment over the useful life in the manner prescribed in Schedule II to the Act, and management believe that useful life of assets are same as those prescribed in Schedule II to the Act, except for certain plant and machinery which based on an independent technical evaluation, life has been estimated as 20 years (on multiple shift basis) and for cylinders life has been estimated as 5 years, which is different from that prescribed in Schedule II to the Act.
The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.
e) Intangible Assets
Computer software are stated at cost, less accumulated amortisation and impairments, if any. Amortisation method and useful life
The Company amortizes computer software using the straight-line method over the period of 3 years. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.
f) Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, cash at bank, deposits held at call with financial institutions, other shortterm highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
g) Inventories
Items of inventories of Raw Material, Finished goods, Spares and Stores, Packing Material & Fuel are valued at lower of cost or net realizable value except waste which is valued at estimated net realizable value. Cost of inventories comprise of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost is determined on weighted average method.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Obsolete, slow-moving and defective inventories are identified by management and wherever necessary, provision is created for such inventories.
h) Financial instruments
i. Recognition and initial measurement
All financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. Trade receivables that do not contain a significant financing component are measured at the transaction price determined under Ind AS 115.
ii. Classification and subsequent measurement Financial assets
On initial recognition, a financial asset is classified as measured at
⢠amortized cost;
⢠Fair Value through Other Comprehensive Income (FVOCI) - equity investment; or
⢠Fair Value Through Profit and Loss (FVTPL)
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:
⢠The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
⢠The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in OCI. (designated as FVOCI - equity investment). This election is made on an investment-byinvestment basis.
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial liabilities
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss
iii. De-recognition Financial assets
The company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.
Financial liabilities
The company de-recognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The company also de-recognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.
iv. Off-setting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.
i) Segment Reporting:
The Companyâs Chief Operating Decision Maker (CODM) examines the Company''s performance from business and geographic perspective. In accordance with Ind AS-108 -Operating Segments, evaluation by the CODM and based on the nature of activities performed by the Company, which primarily relate to Packaging solution provider, the Company does not operate in more than one business segment.
j) Borrowings
Borrowings are initially recognized at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.
Preference shares, which are mandatorily redeemable on a specific date are classified as liabilities.
k) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
Mar 31, 2018
[A] Significant Accounting Policies:
a) Basis of preparation
(i) Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
1) certain financial assets and liabilities that are measured at fair value;
2) defined benefit plans - plan assets measured at fair value;
3) assets held for sale - measured at lower of carrying amount of fair value less cost to sell.
(iii) Current non-current classification
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.
(iv) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the requirement of Schedule III, unless otherwise stated.
b) Use of estimates and judgements
The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised. The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.
c) Property, plant and equipment
Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value
Depreciation is provided on a Straight Line Method over the estimated useful lives of assets. The Company depreciates its property, plant and equipment over the useful life in the manner prescribed in Schedule II to the Act, and management believe that useful life of assets are same as those prescribed in Schedule II to the Act, except for plant and machinery which based on an independent technical evaluation, life has been estimated as 20 years (on multiple shift basis), which is different from that prescribed in Schedule II to the Act.
Useful life considered for calculation of depreciation for various assets class are as follows-
The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.
d) Intangible Assets Computer Software
Computer software are stated at cost, less accumulated amortisation and impairments, if any.
Amortisation method and useful life
The Company amortizes computer software using the straight-line method over the period of 3 years. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.
e) Lease Operating Lease As a lessee
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company, as lessee, are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the Company''s expected inflationary cost increases.
f) Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, bank overdraft, deposits held at call with financial institutions, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
g) Inventories
Items of inventories of Raw Material, Finished goods, Spares and Stores, Packing Material & Fuel are valued at lower of cost or net realizable value except waste which is valued at estimated net realizable value. Cost of inventories comprise of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.
h) Investments and other financial assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and
- those measured at amortised cost.
The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.
(ii) Measurement
At initial recognition, the Company measures a financial asset at its fair value transaction costs of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.
(iii) Impairment of financial assets
The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
i) Segment Reporting:
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
j) Borrowings
Borrowings are initially recognized at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.
Preference shares, which are mandatorily redeemable on a specific date are classified as liabilities.
k) Borrowing costs
Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to Statement of Profit and Loss.
l) Provisions and contingent liabilities
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.
m) Revenue recognition
Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty (upto June''17) and net of returns, trade allowances, rebates, discounts, value added taxes/GST and amounts collected on behalf of third parties.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company''s activities as described below
Sale of goods
Sales are recognised when substantial risk and rewards of ownership are transferred to customer. In case of domestic customer, generally sales take place when goods are dispatched or delivery is handed over to transporter. In case of export customers, generally sales take place when goods are shipped onboard based on bill of lading.
Sales Return
The Company recognises provision for sales return, on the basis of mutual satisfaction which is measured at the sales value excluding taxes & duties.
Other operating revenue:
Export Incentives under various schemes are accounted in the year in which right to receive is irrevocably established.
Other revenue:
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.
Interest received on delayed payment is accounted on receipt basis.
Revenue in respect of insurance/other claims etc, is recognized only when it is reasonably certain that the ultimate collection will be made.
Dividends
Dividends are generally recognised in the Statement of Profit and Loss only when the right to receive payment is established.
n) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.
(iii) Post-employment obligations
The Company operates the following post-employment schemes:
(a) defined benefit plans such as gratuity ; and
(b) defined contribution plans such as provident fund.
Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Defined Contribution Plans
Defined Contribution Plans such as Provident Fund, etc., are charged to the Statement of Profit and Loss as incurred.
Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the Company recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
o) Foreign currency translation
(i) Functional and presentation currency
The financial statements are presented in Indian rupee (INR), which is Company''s functional and presentation currency.
(ii) Transactions and balances
Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.
Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.
p) Income tax
The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if, it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are off set where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.
q) Earnings Per Share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
r) Cash Flow Statement
The Cash Flow statement is prepared by the âIndirect methodâ set out in Ind AS-7 on âCash Flow Statement" and presents the cash flows by operating, investing and financing activities of the Company. Cash and cash equivalent presented in the cash flow statement consist of cash on hand and demand deposits with banks.
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of Financial Statements to evaluate changes in liabilities arising from financing activities, inducing both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement.
s) Critical estimates and judgements :
The preparation of financial statements requires the use of accounting estimates may not match the actual results. Management also needs to exercise judgement in applying the company''s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
t) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable Value. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been a change in the estimate of recoverable amount.
Mar 31, 2016
1) Basis of Accounting:
These financial statements have been prepared under historical cost convention from books of accounts maintained on an accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act 2013 The accounting policies applied by the company are consistent with those used in previous year.
2) Use of Estimates :
The presentation of financial statements require Judgments, estimates and disclosure of contingent liabilities, assumptions to be made that affect the reported amount of Assets and Liabilities, disclosure of Contingent Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.
3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction, net of recoverable taxes, including incidental expenses related to acquisition and installation and financing costs till the commencement of commercial production and adjustments arising from exchange rate variation relating to borrowings attributable to fixed assets, less accumulated depreciation and impairment loss.
4) Depreciation:
i. Depreciation on Fixed Assets other than specified plant and machineries is provided on Straight line Method the basis of useful life of asset in manner prescribed in Schedule II to the Companies Act, 2013 and on Specified Plant and Machineries depreciation is provided on the basis of Useful Life of the asset as determined by Government approved Valuer''s report.
ii. Depreciation on additions to the assets and the assets sold, discarded or disposed off, during the year is provided on pro-rata basis with reference to the date of acquisition / installation or date of sale/disposal.
5) Inventories:
Items of inventories of Raw Material, Finished goods, Spares and Stores, Packing Material
& Fuel are valued at lower of cost or net realizable value except waste which is valued at estimated net realizable value. Cost of inventories comprise of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.
6) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.
7) Investments:
Long Term Investments are carried at cost less provision for permanent diminution, if any, in value of such investments.
8) Employees Retirement Benefits:
Short term employee benefits (which are payable within 12 months after the end of the year in which the employees render service) are measured at cost other than leave encashment payable within 12 months from the end of the year.
Long term employee benefits (which are payable after the end of 12 months from the end of the year in which the employees render service) and post employment benefits (benefits which are payable after completion of employment) are measured on a discounted basis by the Projected Unit Credit method on the basis of Actuarial Valuation.
Contributions to provident fund a defined contribution plan are made in accordance with the statute.
The cost of providing leave encashment and gratuity defined benefit plans are measured using Actuarial Valuation on the basis of Projected Unit Credit Method.
9) Excise duty and Cenvat Credit:
Excise Duty payable on finished goods (Except Finished Goods lying in stocks) are accounted for on clearance of goods. Cenvat credit on Capital goods and Inputs are accounted for on the date of actual receipt of the same, respectively.
10) Foreign Currency Transactions:
(a) 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 the foreign currency of the date of the transaction.
(b) Conversion:
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate of the date of the transaction; and non-monetary items which are carried of fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.
(c) Exchange differences:
Exchange difference arising on the settlement of monetary items or on reporting Company''s monetary items of rates different from those of which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
11) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
(1) Revenue from Sale of goods is recognized on delivery of the goods, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to customers and no effective ownership is retained.
(2) Revenue in respect of insurance/other claims etc, is recognized only when it is reasonably certain that the ultimate collection will be made.
(3) Export Incentives in respect of exports made is accounted for when the right to receive is established.
(4) Dividend income is recognized when the right to receive is established.
(5) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.
(6) Interest received on delayed payment is accounted on receipt basis.
12) Earnings per Share:
The earnings considered in ascertaining the Company''s EPS comprises the net profit(loss) after tax (and include the post tax effect of any extra ordinary item). The number of shares used in computing Basic EPS is the weighted average number of 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 by the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
13) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax and Deferred Tax are included in determining the net profit for the year.
A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates.
Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon the merit of each case and/or receiving the actual demand from the department.
14) The Cash Flow statement is prepared by the âIndirect methodâ set out in Accounting Standard 3 on âCash Flow Statement â and presents the cash flows by operating , investing and financing activities of the Company. Cash and cash Equivalent presented in the cash flow statement consist of cash on hand and demand deposits with banks.
15) Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. A contingent liability is disclosed when the company has a possible obligation where it is probable that no outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.
16) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable Value. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been a change in the estimate of recoverable amount.
2 (a) Andhra Bank Ltd. has filed suit in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and the Company as a guarantor and Recovery officer has demanded Rs. 933.34 lacs (net of Recovery already made and including interest). Andhra Bank has also given notice u/s 434 of the Companies Act, 1956 for winding up of the Company. Review petition against recovery certificate Dated 19th September, 2013 is filed.
(b) The Kalupur Commercial Co. Op. Bank (KCCB) has filed a suit against the company for recovery of Rs.50 lacs towards Bills Payable and interest accrued thereon of Rs. 306.90 lacs till 31.03.16 (Previous year Rs. 263.07 lacs) against which the company has preferred an appeal and no provision is made in the books.
3 (a) In respect of 10,00,000 15% Cumulative Preference Shares of Rs.100/- each which were redeemable in three equal installments at the end of third, fourth and fifth year from 30th March,1998, 3,33,334 Preference Shares being first installment were redeemed on 30th March, 2001. The remaining 6,66,666 Preference Shares are yet to be redeemed.
(b) The Company has declared and provided in books dividend of Rs. 100 lacs for the year 2000-01 on 666666 15% Redeemable Preference Shares which was subsequently annulled by Board of Directors and members of the Company in Extra Ordinary Meeting held on 26th Oct, 2002. In view of the pending approval from appropriate authority, the Company has not reversed provision of said annulled dividend and also not transferred the said amount to IEPF
Mar 31, 2015
1) Basis of Accounting:
These financial statements have been prepared under historical cost
convention from books of accounts maintained on an accrual basis
(unless otherwise stated hereinafter) in conformity with accounting
principles generally accepted in India and comply with the Accounting
Standards issued by the Institute of Chartered Accountants of India and
referred to Sec 129 & 133 of the Companies Act 2013 The accounting
policies applied by the company are consistent with those used in
previous year.
2) Use of Estimates :
The presentation of financial statements require Judgments, estimates
and disclosure of contingent liabilities, assumptions to be made that
affect the reported amount of Assets and Liabilities, disclosure of
Contingent Liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known /materialized.
3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction, net of
recoverable taxes, including incidental expenses related to acquisition
and installation and financing costs till the commencement of
commercial production and adjustments arising from exchange rate
variation relating to borrowings attributable to fixed assets, less
accumulated depreciation and impairment loss.
4) Depreciation:
i. Depreciation on Fixed Assets other than specified plant and
machineries is provided on Straight line Method the basis of useful
life of asset in manner prescribed in Schedule II to the Companies Act,
2013 and on Specified Plant and Machineries depreciation is provided on
the basis of Useful Life of the asset as determined by Government
approved Valuer's report.
ii. Depreciation on additions to the assets and the assets sold,
discarded or disposed off, during the year is provided on pro-rata
basis with reference to the date of acquisition / installation or date
of sale/ disposal.
5) Inventories:
Items of inventories of Raw Material, Finished goods, Spares and
Stores, Packing Material & Fuel are valued at lower of cost or net
realizable value except waste which is valued at estimated net
realizable value. Cost of inventories comprise of cost of purchase,
cost of conversion and other costs including manufacturing overheads
incurred in bringing them to their respective present location and
condition.
6) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
7) Investments:
Long Term Investments are carried at cost less provision for permanent
diminution, if any, in value of such investments.
8) Employees Retirement Benefits:
Short term employee benefits (which are payable within 12 months after
the end of the year in which the employees render service) are measured
at cost other than leave encashment payable within 12 months from the
end of the year.
Long term employee benefits (which are payable after the end of 12
months from the end of the year in which the employees render service)
and post employment benefits (benefits which are payable after
completion of employment) are measured on a discounted basis by the
Projected Unit Credit method on the basis of Actuarial Valuation.
Contributions to provident fund a defined contribution plan are made in
accordance with the statute. The cost of providing leave encashment and
gratuity defined benefit plans are measured Using Actuarial Valuation
on the basis of Projected Unit Credit Method.
9) Excise duty and Cenvat Credit:
Excise Duty payable on finished goods (Except Finished Goods lying in
stocks) are accounted for on clearance of goods. Cenvat credit on
Capital goods and Inputs are accounted for on the date of actual
receipt of the same, respectively.
10) Foreign Currency Transactions:
(a) 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 the foreign currency of the date of the
transaction.
(b) Conversion:
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
of the date of the transaction; and non-monetary items which are
carried of fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(c) Exchange differences:
Exchange difference arising on the settlement of monetary items or on
reporting Company's monetary items of rates different from those of
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
(d) Forward Exchange Contracts not intended for trading:
The premium or discount arising of the inception of forward exchange
contracts is amortised as an expense or income over the life of 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 as expense for the
year.
11) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
(1) Revenue from Sale of goods is recognized on delivery of the goods,
when all significant contractual obligations have been satisfied, the
property in the goods is transferred for a price, significant risks and
rewards of ownership are transferred to customers and no effective
ownership is retained.
(2) Revenue in respect of insurance/other claims etc, is recognized
only when it is reasonably certain that the ultimate collection will be
made.
(3) Export Incentives in respect of exports made is accounted for when
the right to receive is established.
(4) Dividend income is recognized when the right to receive is
established.
(5) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the applicable rate of
interest.
(6) Interest received on delayed payment is accounted on receipt basis.
12) Earnings per Share:
The earnings considered in ascertaining the Company's EPS comprises the
net profit(loss) after tax (and include the post tax effect of any
extra ordinary item). The number of shares used in computing Basic EPS
is the weighted average number of 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 by the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
13) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax and Deferred Tax are
included in determining the net profit for the year.
A provision is made for the current tax based on tax liability computed
in accordance with relevant tax rates and tax laws. A provision is made
for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted tax rates.
Deferred tax assets are recognised only if there is reasonable
certainty that they will be realised and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon
the merit of each case and/or receiving the actual demand from the
department.
14) The Cash Flow statement is prepared by the "Indirect method" set
out in Accounting Standard 3 on "Cash Flow Statement " and presents the
cash flows by operating , investing and financing activities of the
Company. Cash and cash Equivalent presented in the cash flow statement
consist of cash on hand and demand deposits with banks.
15) Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. A contingent liability is disclosed when
the company has a possible obligation where it is probable that no
outflow of resources will be required to settle it. Contingent assets
are neither recognized nor disclosed.
16) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable Value. An impairment loss is charged to the statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in earlier accounting period
is reversed if there has been a change in the estimate of recoverable
amount.
Mar 31, 2014
1) Basis of Accounting:
These financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
Principles, the Accounting Standards issued by the Institute of
Chartered Accountants of India and notified under Companies (Accounting
Standard Rules) 2006 and relevant the provisions of the Companies Act,
1956.
2) Use of Estimates :
The presentation of financial statements require Judgements, estimates
and disclosure of contingent liabilities, assumptions to be made that
affect the reported amount of Assets and Liabilities, disclosure of
Contingent Liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known /materialized.
3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction, net of
recoverable taxes, including incidental expenses related to acquisition
and installation and financing costs till the commencement of
commercial production and adjustments arising from exchange rate
variation relating to borrowings attributable to fixed assets, less
accumulated depreciation and impairment loss.
4) Depreciation:
i. Depreciation for the year is provided on Straight Line Method on
shift basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
ii. Depreciation on additions to the assets and the assets sold,
discarded or disposed off, during the year is provided on pro-rata
basis, at their respective rates with reference to the date of
acquisition / installation or date of sale/disposal.
5) Inventories:
Items of inventories of Raw Material, Finished goods, Spares and
Stores, Packing Material & Fuel are valued at lower of cost or net
realizable value except waste which is valued at estimated net
realizable value. Cost of inventories comprise of cost of purchase,
cost of conversion and other costs including manufacturing overheads
incurred in bringing them to their respective present location and
condition.
6) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
7) Investments:
Long Term Investments are carried at cost less provision for permanent
diminution, if any, in value of such investments.
8) Employees Retirement Benefits:
Short term employee benefits (which are payable within 12 months after
the end of the year in which the employees render service) are measured
at cost other than leave encashment payable within 12 months from the
end of the year.
Long term employee benefits (which are payable after the end of 12
months from the end of the year in which the employees render service)
and post employment benefits (benefits which are payable after
completion of employment) are measured on a discounted basis by the
Projected Unit Credit method on the basis of Actuarial Valuation.
Contributions to provident fund a defined contribution plan are made in
accordance with the statute.
The cost of providing leave encashment and gratuity defined benefit
plans are determined Using Projected Unit Credit Method on the basis of
Actuarial Valuation.
9) Excise duty and Cenvat Credit:
Excise Duty payable on finished goods is accounted for on clearance of
goods. Cenvat credit on Capital goods and Inputs are accounted for on
the date of actual receipt of the same, respectively.
10) Foreign Currency Transactions:
(a) 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 the foreign currency of the date of the
transaction.
(b) Conversion:
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
of the date of the transaction; and non-monetary items which are
carried of fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(c) Exchange differences:
Exchange difference arising on the settlement of monetary items or on
reporting Company''s monetary items of rates different from those of
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
(d) Forward Exchange Contracts not intended for trading:
The premium or discount arising of the inception of forward exchange
contracts is amortised as an expense or income over the life of 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 as expense for the
year.
11) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
(1) Revenue from Sale of goods is recognized on delivery of the goods,
when all significant contractual obligations have been satisfied, the
property in the goods is transferred for a price, significant risks and
rewards of ownership are transferred to customers and no effective
ownership is retained.
(2) Revenue in respect of insurance/other claims etc, is recognized
only when it is reasonably certain that the ultimate collection will be
made.
(3) Export Incentives in respect of exports made is accounted for when
the right to receive is established.
(4) Dividend income is recognized when the right to receive is
established.
(5) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the applicable rate of
interest.
(6) Interest received on delayed payment is accounted on receipt basis.
12) Earnings per Share:
The earnings considered in ascertaining the Company''s EPS comprises the
net profit(loss) after tax (and include the post tax effect of any
extra ordinary item). The number of shares used in computing Basic EPS
is the weighted average number of 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 by the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
13) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax and Deferred Tax are
included in determining the net profit for the year.
A provision is made for the current tax based on tax liability computed
in accordance with relevant tax rates and tax laws. A provision is made
for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted tax rates.
Deferred tax assets are recognised only if there is reasonable
certainty that they will be realised and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon
the merit of each case and/or receiving the actual demand from the
department.
14) The Cash Flow statement is prepared by the "Indirect method" set
out in Accounting Standard 3 on "Cash Flow Statement " and presents the
cash flows by operating, investing and financing activities of the
Company. Cash and cash Equivalent presented in the cash flow statement
consist of cash on hand and demand deposits with banks.
15) Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. A contingent liability is disclosed when
the company has a possible obligation where it is probable that no
outflow of resources will be required to settle it. Contingent assets
are neither recognized nor disclosed.
16) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable Value. An impairment loss is charged to the statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in earlier accounting period
is reversed if there has been a change in the estimate of recoverable
amount.
Mar 31, 2013
1) Basis of Accounting:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles, the Accounting Standards issued by the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956.
2) Use of JEslimates :
The presentation of financial statements require estimates and
disclosure of contingent liabilities, assump- tions to be made that
affect the reported amount of Assets and Liabilities on the date of the
financial state- ments and the reported amount of revenues and expenses
during the reporting period. Difference between the actual results and
estimates are recognized in the year in which the results are known
/materialized.
3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction, net of
recoverable taxes, including incidental expenses related to acquisition
and installation and financing costs till the commencement of
commercial production and adjustments arising from exchange rate
variation relating to borrowings attributable to fixed assets, less
accumulated depreciation.
4) Depreciation:
i. Depreciation for the year is provided on Straight Line Method on
shift basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
ii. Depreciation on additions to the assets and the assets sold,
discarded or disposed off, during the year is provided on pro-rata
basis, at their respective rates with reference to the date of
acquisition / installation or date of sale/disposal.
5) Inventories:
Items of inventories are valued on the basis given below:
a) Stores and Spares, Packing Materials & Fuel - At cost or net
realisable value, whichever is lower
b) Raw Materials - At cost or net realisable value, whichever is lower
c) Work-in-Process - At cost or net realisable value, whichever is
lower
d) Finished Goods - At cost or net realisable value, whichever is lower
e) Waste At estimated Net realizable Value
6) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
7) Investments:
Long Term Investments are carried at cost less provision for permanent
diminution, if any, in value of such investments.
8) Employees Retirement Benefits:
Short term employee benefits (which are payable within 12 months after
the end of the period in which the employees render service) are
measured at cost other than leave encashment payable within 12 months
from the end of the year.
Long term employee benefits (which are payable after the end of 12
months from the end of the period in which the employees render
service) and post employment benefits (benefits which are payable after
comple- tion of employment) are measured on a discounted basis by the
Projected Unit Credit Method on the basis of Actuarial Valuation.
Contributions to provident fund a defined contribution plan are made in
accordance with the statute.
The cost of providing leave encashment and gratuity defined benefit
plans are determined using Projected Unit Credit Method on the basis of
Actuarial valuation.
9) Excise duty and Cenvat Credit:
Excise Duty payable on finished goods is accounted for on clearance of
goods. Cenvat credit on Capital goods and Inputs are accounted for on
the date of actual receipt of the same, respectively.
10) Foreign Currency Transactions:
(a) 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 the foreign currency of the date of the
transaction.
(b) Conversion:
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
of the date of the transaction; and non-monetary items which are
carried of fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(c) Exchange jitfferences;
Exchange difference arising on the settlement of monetary items or on
reporting Company''s monetary items of rates different from those of
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
(d) Forward Exchange Contracts not intended for trading:
The premium or discount arising of the inception of forward exchange
contracts is amortised as expense or income over the life of 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 as expense for the
year.
11) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
(1) Revenue from Sale of goods is recognized on delivery of the goods,
when ail significant contractual obligations have been satisfied, the
property in the goods is transferred for a price, significant risks and
rewards of ownership are transferred to customers and no effective
ownership is retained.
(2) Revenue in respect of insurance/other claims etc, is recognized
only when it is reasonably certain that the ultimate collection will be
made.
(3) Export Incentives in respect of exports made is accounted for when
right to receive is established.
(4) Dividend income is recognized when the right to receive is
established.
(5) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the applicable rate of
interest.
(6) Interest received on delayed payment is accounted on receipt basis.
12) Earnings per Share:
The earnings considered in ascertaining the Company''s EPS comprises the
net profit after tax (and include the post tax effect of any extra
ordinary item). The number of shares used in computing Basic EPS is the
weighted average number of shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
13) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax and Deferred Tax are
included in determining the net profit for the year.
A provision is made for the current tax based on tax liability computed
in accordance with relevant tax rates and tax laws. A provision is made
for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted tax rates.
Deferred tax assets are recognised only if there is reasonable
certainty that they will be realised and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon
the merit of each case and/or re- ceiving the actual demand from the
department.
14) The Cash Flow Statement :
The Cash Flow Statement is prepared by the "Indirect method" set out in
Accounting Standard 3 on "Cash Flow Statement" and presents the cash
flows by operating, Investing and financing activities of the Com-
pany. Cash and Cash equivalents presented in the cash Flow Statement
consist of cash on hand and de- mand deposits with banks.
15) Provisions and Contingent Liabilities:
A provision is recognized when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. A contingent liability is disclosed when
the company has a possible or present obli- gation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
Mar 31, 2012
1) Basis of Accounting:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles, the Accounting Standards issued by the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956.
2) Use of Estimates :
The presentation of financial statements require estimates and
disclosure of contingent liabilities, assumptions to be made that
affect the reported amount of Assets and Liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual results and
estimates are recognized in the year in which the results are known
/materialized.
3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction, net of
recoverable taxes, including incidental expenses related to acquisition
and installation and financing costs till the commencement of
commercial production and adjustments arising from exchange rate
variation relating to borrowings attributable to fixed assets, less
accumulated depreciation.
4) Depreciation:
i. Depreciation for the year is provided on Straight Line Method on
shift basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
ii. Depreciation on additions to the assets and the assets sold or
disposed off, during the year is provided on pro-rata basis, at their
respective rates with reference to the date of acquisition /
installation or date of sale/disposal.
5) Inventories:
Items of inventories are valued on the Weighted Average Cost and on the
basis given below:
a) Stores and Spares, Packing Materials & Fuel - At cost
b) Raw Materials - At cost or net realisable value, whichever is lower
c) Work-in-Process - At cost or net realisable value, whichever is
lower
d) Finished Goods At cost or net realisable - value, whichever is lower
e) Waste . - At estimated Net realizable Value
6) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
7) Investments:
Long Term Investments are carried at cost less provision for permanent
diminution, if any, in value of such investments.
8) Employees Retirement Benefits:
Short term employee benefits (which are payable within 12 months after
the end of the period in which the employees render service) are
measured at cost other than leave encashment payable within 12 months
from the end of the year.
Long term employee benefits (which are payable after the end of 12
months from the end of the period in which the employees render
service) and post employment benefits (benefits which are payable after
completion of employment) are measured on a discounted basis by the
Projected Unit Credit Method on the basis of Actuarial Valuation.
Contributions to provident fund a defined contribution plan are made in
accordance with the statute. .
The cost of providing leave encashment and gratuity defined benefit
plans are determined using Projected Unit Credit Method on the basis of
Actuarial Valuation.
9) Excise duty and Cenvat/vat Credit:
Excise Duty payable on finished goods is accounted for on clearance of
goods. Cenvat/ vat credit on Capital goods and Inputs are accounted for
on the date of actual receipt of the same, respectively.
10) Foreign Currency Transactions:
(a) 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 the foreign currency of the date of the
transaction.
(b) Conversion:
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
of the date of the transaction and non-monetary items which are carried
of fair value or other similar valuation denominated in a foreign
currency are reported using the exchange rates that existed when the
values were determined.
(c) Exchange differences:
Exchange difference arising on the settlement of monetary items or on
reporting Company's monetary items of rates different from those of
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
(d) Forward Exchange Contracts not intended for trading:
The premium or discount arising of the inception of forward exchange
contracts is amortised as expense or income over the life of 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 as expense for
the year.
11) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
Revenue from Sale of goods is recognized on delivery of the goods, when
all significant contractual obligations have been satisfied, the
property in the goods is transferred for a price, significant risks and
rewards of ownership are transferred to customers & no effective
ownership is retained However;
a) Revenue in respect of insurance/other claims etc, is recognized only
when it is reasonably certain that the ultimate collection will be
made.
b) Export Incentives in respect of exports made is accounted for when
right to receive is established.
c) Dividend income is recognized when the right to receive is
established.
d) Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable rate of interest.
e) Interest received on delayed payment is accounted on receipt basis.
12) Earnings per Share:
The earnings considered in ascertaining the Company's EPS comprises
the net profit after tax (and include the post tax effect of any extra
ordinary item). The number of shares used in computing Basic EPS is the
weighted average number of shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares. .
13) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax and Deferred Tax are
included in determining the net profit for the year.
A provision is made for the current tax based on tax liability computed
in accordance with relevant tax rates and tax laws. A provision is made
for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted tax rates. Deferred
tax assets are recognised only if there is reasonable certainty that
they will be realised and are reviewed for the appropriateness of their
respective carrying values at each balance sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon
the merit of each case and/or receiving the actual demand from the
department.
14) The Cash Flow Statement:
The Cash Flow Statement is prepared by the "Indirect method" set
out in Accounting Standard 3 on "Cash Flow Statement" and presents
the cash flows by Operating, Investing and Financing activities of the
Company. Cash and Cash equivalents presented in the Cash Flow Statement
consist of cash on hand and demand deposits with banks.
15) Provisions and Contingent Liabilities: ,
A provision is recognized when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. A contingent liability is disclosed when
the company has a possible or present obligation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
Mar 31, 2011
1) Basis of Accounting:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles, the Accounting Standards issued by the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956.
2) Use of Estimates :
The presentation of financial statements require estimates and
disclosure of contingent liabilities assumptions to be made that affect
the reported amount of Assets and Liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual results and
estimates are recognized in the year in which the results are known /
materialized.
3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or construction, net of
cenvat credit, including incidental expenses related to acquisition and
installation and financing costs till the commencement of commercial
production and adjustments arising from exchange rate variation
relating to borrowings attributable to fixed assets, less accumulated
depreciation.
4) Depreciation:
i. Depreciation for the year is provided on Straight Line Method on
shift basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
ii. Depreciation on additions to the assets and the assets sold or
disposed off, during the year is provided on pro-rata basis, at thejr
respective rates with reference to the date of acquisition /
installation or date of sale/ disposal.
5) Inventories:
Items of inventories are valued on the Weighted Average Cost and on the
basis given below:
a) Stores and Spares, Packing Materials & Fuel - At cost
b) Raw Materials - At cost or net realisable value, whichever is lower
c) Work-in-Process - At cost or net realisable value, whichever is
lower
d) Finished Goods - At cost or net realisable value, whichever is lower
e) Waste - At estimated Net Realizable Value
6) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
7) Investments:
Long Term Investments are carried at cost less provision for permanent
diminution, if any, in value of such investments.
8) Employees Retirement Benefits:
Short term employee benefits (which are payable within 12 months after
the end of the period in which the employees render service) are
measured at cost.
Long term employee benefits (which are payable after the end of 12
months from the end of the period in which the employees render
service) and post employment benefits (benefits which are payable after
completion of employment) are measured on a discounted basis by the
Projected Unit Credit Method on the basis of Actuarial Valuation.
Contributions to provident fund a defined contribution plan are made in
accordance with the statute.
The cost of providing leave encashment and gratuity defined benefit
plans are determined using Projected Unit Credit Method on the basis of
Actuarial Valuation.
9) Excise duty and Cenvat Credit:
Excise Duty payable on finished goods is accounted for on clearance of
goods. Cenvat credit on Capital goods and Inputs is accounted for on
the date of actual receipt of the same, respectively.
10) Foreign Currency Transactions:
(a) 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 the foreign currency of the date of the
transaction.
(b) Conversion:
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
of the date of the transaction; and non-monetary items which are
carried of fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(c) Exchange differences:
Exchange difference arising on the settlement of monetary items or on
reporting Company's monetary items of rates different from those of
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
(d) Forward Exchange Contracts not intended for trading:
The premium or discount arising of the inception of forward exchange
contracts is amortised as expense or income over the life of 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 as expense for the
year.
11) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
Revenue from Sale of goods is recognized on delivery of the goods, when
all significant contractual obligations have been satisfied, the
property in the goods is transferred for a price, significant risks and
rewards of ownership are transferred to customers and no effective
ownership is retained However;
a) Revenue in respect of insurance/other claims etc, is recognized only
when it is reasonably certain that the ultimate collection will be
made.
b) Export Incentives in respect of exports made is accounted for when
right to receive is established.
c) Dividend income is recognized when the right to receive is
established.
d) Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable rate of interest.
e) Interest received on delayed payment is accounted on receipt basis.
12) Earnings per Share:
The earnings considered in ascertaining the Company's EPS comprises the
net profit after tax (and include the post tax effect of any extra
ordinary item). The number of shares used in computing Basic EPS is the
weighted average number of shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
13) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax and Deferred Tax are
included in determining the net profit for the year.
A provision is made for the current tax based on tax liability computed
in accordance with relevant tax rates and tax laws. A provision is made
for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted tax rates.
Deferred tax assets are recognized only if there is reasonable
certainty that they will be realised and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon
the merit of each case and/ or receiving the actual demand from the
department.
14) The Cash Flow Statement :
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statement" and presents the cash
flows by Operating, Investing and Financing activities of the Company.
Cash and Cash equivalents presented in the cash Flow Statement consist
of cash on hand and demand deposits with banks.
15) Provisions and Contingent Liabilities:
A provision is recongnised when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. A contingent liability is disclosed when
the company has a possible or present obligation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
Mar 31, 2010
1) Basis of Accounting:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles, the Accounting Standards issued by the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956.
2) Use of Estimates :
The presentation of financial statements require estimates and
disclosure of contingent liabilities assumptions to be made that affect
the reported amount of Assets and Liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual results and
estimates are recognized in the year in which the results are known /
materialized.
3) Fixed Assets:
Fixed Assets are stated at cost of acquisition or constructier* net of
eanvat credit, includm;; incidental expenses related to acquisition and
installation and financing costs tiii the commencement of commercial
production and adjustments arising from exchange rate variation
relating to borrowings attributable to fixed assets, less accumulated
depreciation.
4) Depreciation:
i. Depreciation for the year is provided on Straight Line Method on
shift basi--i at the rates prescribed n Schedule XIV to the Companies
Act, 1956.
ii. Depreciation on additions to the assets and the assets sold o;
disposed oft, during the year is provided on pro-rata basis, at their
respective rates with reference to the date c? acquisition /
installation or date of sale/ disposal.
5) Inventories:
Items of inventories are valued on the Weighted Average Cost ana on the
basis given below:
a) Stores and Spares, Packing Materials & Fuel - At cost
b) Raw Materials - At cost or rei realisable value, whichever is lower
c) Work-in-Process - At cos? or net realisable value, whichever is
lower
d) Finished Goods - At cost or net realisable value, whichever is lower
e) Waste - At estimated Net realizable Value
6) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
7) Investments:
Long Term Investments are carried at cost less provision for permanent
diminution, if any, in value of such investments.
8) Employees Retirement Benefits:
Short term employee benefits (which are payable within 12 months after
the end of the period in which the employees render service) are
measured at cost.
Long term employee benefits (which are payable after the end of 12
months from the end of the period in which the employees render
service) and post employment benefits (benefits which are payabie after
completion of employment) are measured on a discounted basis by the
Projected Unit Credit Method on the basis of Actuarial Valuation.
Contributions to provident fund a defined contribution plan are made in
accordance with the statute.
The cost of providing leave encashment and gratuity defined benefit
plans are determined using Projected Unit Credit Method on the basis of
Actuarial valuation.
9) Excise duty and Cenvat Credit:
Excise Duty payable on finished goods is accounted for on clearance of
goods. Cenvat credit on Capital goods and Inputs is accounted for on
the date of actual receipt of the same, respectively.
10) Foreign Currency Transactions:
(a) 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 the foreign currency of the date of the
transaction.
(b) Conversion:
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
of the date of the transaction; and non-monetary items which are
carried of fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
(c) Exchange differences:
Exchange difference arising on the settlement of monetary items or on
reporting Companys monetary items of rates different from those of
which they were initially recorded during the year, or reported in
previous financial statements, are recognized as income or as expenses
in the year in which they arise.
(d) Forward Exchange Contracts not intended for trading:
The premium or discount arising of the inception of forward exchange
contracts is amortised as expense or income over the life of 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 as expense for the
year.
11) Revenue Recognition:
Income and Expenditure are recognized and accounted on Accrual Basis.
Revenue from Sale of goods is recognized on delivery of the goods, when
all significant contractual obligations have been satisfied, the
property in the goods is transferred for a price, significant risks and
rewards of ownership are transferred to customers & no effective
ownership is retained However;
a) Revenue in respect of insurance/other claims etc, is recognized only
when it is reasonably certain that the ultimate collection will be
made.
b) Export Incentives in respect of exports made is accounted for when
right to receive is established.
c) Dividend income is recognized when the right to receive is
established.
d) Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable rate of interest.
e) Interest received on delayed payment is accounted on receipt basis.
12) Earnings per Share:
The earnings considered in ascertaining the Companys EPS comprises the
net profit after tax (and include the post tax effect of any extra
ordinary item). The number of shares used in computing Basic EPS is the
weighted average number of shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
13) Taxation:
(a) Direct Taxes :
Tax expense for the year, comprising Current Tax and Deferred Tax are
included in determining the net profit for the year.
A provision is made for the current tax based on tax liability computed
in accordance with relevant tax rates and tax laws. A provision is made
for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted tax rates.
Deferred tax assets are recognized only if there is reasonable
certainty that they will be realised and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon
the merit of each case and/ or receiving the actual demand from the
department.
14) The Cash Flow Statement:
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statement" and presents the cash
flows by Operating, Investing and Financing activities of the Company.
Cash and Cash equivalents presented in the cash Flow Statement consist
of cash on hand and demand deposits with banks.
15) Provisions and Contingent Liabilities:
A provision is recongnised when the company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. A contingent liability is disclosed when
the company has a possible or present obligation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
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Shree Rama Multi-Tech Ltd. Tools
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Shree Rama Multi-Tech Ltd. Company Details
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Company History
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Shree Rama Multi-Tech Ltd. Key Financial Ratios
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Shree Rama Multi-Tech Ltd. Results
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Shree Rama Multi-Tech Ltd. Financial Data
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Shree Rama Multi-Tech Ltd. Reports
- Accounting Policies
- Auditors Report
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Shree Rama Multi-Tech Ltd. Corporate Announcements
- Book Closure
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