Mar 31, 2016
(A) Basis of Preparation of Financial Statements
The Financial Statements are prepared as per historical cost convention on Accrual basis and are in conformity with mandatory Accounting Standards specified under section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014.
(B) Sales and Income from Operation
Sales of goods :
(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognized as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.
(ii) Export sales are recognized on the date of bill of lading / Airway bill.
Income from Services : Repairs and Service Income is recognized as revenue after the service is rendered.
Other Operating Income : Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.
Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt.
Excise duty / Duty Drawback refund claims are accounted as and when accrued. Interest & Dividend :
Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head âother incomeâ in the Statement of Profit and Loss.
Dividend : Dividend income is recognized when the Companyâs right to receive dividend is established.
(C) Fixed Assets, Depreciation, Amortization and Impairment Loss
(i) Fixed Assets are stated at cost of acquisition / construction (net of cenvat wherever applicable and expenditure incurred including interest on borrowing and financial cost) except certain land and building which were revalued at market value and are stated at revalued Cost.
(ii) Depreciation is provided on Straight-line Method on all assets at the rates and in the manner specified as per the useful life prescribed in Schedule II to the Companies Act, 2013.
(iii) Intangible Fixed Assets: Depreciation is provided over their estimated economic life, in accordance with Accounting Standard on â Intangible Assets â ( AS-26)
(iv) Leasehold Land is amortized over the period of lease.
(v) In case the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss.
(D) Investments
Long term Investments are stated at cost with an appropriate provision for permanent diminution in value, if any.
(E) Inventories
All Inventories are valued at lower of cost and net realizable value.
Raw Materials and Components / Press tools are valued at lower of cost determined on weighted average basis and net realizable value.
Material-in-transit is valued at lower of cost and net realizable value.
Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials determined on a weighted average basis, labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty.
(F) Debenture / Share Issue Expenses
Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.
(G) Employee Benefits
Employee benefits are provided as follows:
(i) Gratuity : The gratuity liability is funded through the scheme administered
by the ICICI Prudential Life Insurance Co.Ltd, and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.
(ii) Superannuation : Superannuation as per Superannuation Scheme is provided for / paid to employees or to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co .Ltd.
(iii) Companyâs contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.
(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.
(H) R & D Expenses
All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Statement of Profit & Loss Account in the year in which it is incurred.
(I) Foreign Currency Transactions
Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.
(J) Derivative Transactions
The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company.
(K) Income Taxes
Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.
Deferred Tax Assets and Liabilities are recognized as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.
(L) Contingent Liabilities and Commitments
(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.
(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.
Mar 31, 2015
(A) Basis of Preparation of Financial Statements
The Financial Statements are prepared as per historical cost conversion
and on Accrual basis and are in conformity with mandatory Accounting
Standards specified under section 133 of the Companies Act, 2013 read
with rule 7 of Companies (Accounts) Rules, 2014.
(B) Sales and Income from Operation
Sales of goods :
(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts
recovered towards sales tax, octopi, freight and is net of discounts.
Erection and Commissioning Income is recognized as revenue, generally,
to the extent of completion of erection work as assessed or as and when
it becomes due as per terms of contracts.
(ii) Export sales are recognized on the date of bill of lading / Airway
bill.
Income from Services: Repairs and Service Income misrecognised as
revenue after the service is rendered.
Other Operating Income : Income from royalty and others is recognized
on an accrual basis in accordance with the terms of the relevant
agreement.
Claims receivable are accounted at the time of lodgment, depending on
the certainty of receipt and claims payable are accounted at the time
of acceptance.
Excise duty / Duty Drawback refund claims are accounted as and when
accrued.
Interest & Dividend :
Interest : Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the applicable interest
rate. Interest income is included under the head "other income" in the
Statement of Profit and Loss.
Dividend : Dividend income is recognized when the Company's right to
receive dividend is established by the reporting date.
(C) Fixed Assets, Depreciation, Amortization and Impairment Loss
(i) Fixed Assets are stated at cost of acquisition (net of canvas
wherever applicable and expenditure incurred including interest on
borrowing and financial cost) / construction except certain land and
building which were revalued at market value and are stated at revalued
Cost.
(ii) Depreciation is provided on Straight-line Method on all assets at
the rates and in the manner specified as per the useful life prescribed
in Schedule II to the Companies Act, 2013.
(iii) Intangible Fixed Assets: Over their estimated economic life, in
accordance with Accounting Standard on 'Intangible Assets' (AS-26)
(iv) Leasehold Land is amortized over the period of lease. (v) In case
the recoverable amount of the fixed assets is lower than its carrying
amount, a provision is made for the impairment loss.
(D) Investments
Long term Investments are stated at cost with an appropriate provision
for permanent diminution in value, if any.
(E) Inventories
All Inventories are valued at lower of cost and net realizable value.
Raw Materials and Components / Press tools are valued at lower of cost
determined on weighted average baseband net realizable value.
Material-in-transit is valued at lower of cost and net realizable
value.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value. Cost includes direct materials determined on a
weighted average basis, labor and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods
includes excise duty.
(F) Debenture / Share Issue Expenses
Debenture issue expenses and Share issue expenses are charged out in
the year in which they are incurred.
(G) Employee Benefits
Employee benefits are provided as follows:
(i) Gratuity : The gratuity liability is funded through the scheme
administered
by the ICICI Prudential Life Insurance Colt, and the amount
paid/provided under the scheme are charged to Statement of Profit and
Loss on the basis of actuarial valuations.
(ii) Superannuation : Superannuation payable as per Superannuation
Scheme is provided by payment to Superannuation Trust Fund,
administered by the ICICI Prudential Life Insurance Co.Ltd.
(iii) Company's contributions payable to Provident Fund and Family
Pension Fund are charged to Statement of Profit and Loss.
(iv) The Company extends the benefit of encashment of leave to its
employees while in service as well as on retirement. Though encashment
is at the discretion of the Management for the leave accumulated while
in service as well as on retirement, it is provided for during the year
on the basis of actuarial valuations.
(H) R & D Expenses
All revenue expenses related to R & D including expenses in relation to
development of product / processes are charged to the Statement of
Profit & Loss Account in the year in which it is incurred.
(I) Foreign Currency Transactions
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end exchange rates.
(J) Derivative Transactions
The Company uses derivative financial instruments, such as Forward
Exchange Contracts, to hedge its risks associated with foreign currency
fluctuations. At every period end all outstanding derivative contracts
are fair valued on a mark-to-market basis and any loss on valuation is
recognized in the Statement of Profit and Loss, on each contract basis.
Any gain on mark-to-market valuation on respective contracts is not
recognized by the Company.
(K) Income Taxes
Income tax expense comprises Regular Tax or Minimum Alternate Tax and
is provided for as required by Income Tax Law and Rules & Regulations
framed there under.
Deferred Tax Assets and Liabilities are recognised as per Accounting
Standard (AS-22) on Accounting for Taxes on Income, issued by The
Institute of Chartered Accountants of India. Deferred Tax Assets are
recognized and carried forward to the extent there is a virtual
certainty that sufficient future taxable income will be available
against which such deferred tax asset can be realized.
(L) Contingent Liabilities and Commitments
(a) Provisions are recognized when the Company has present legal or
constructive obligation, asa result of past events, for which it is
probable that anoutflow of economic benefits will be required to settle
the obligation and a reliable estimate can be made for the amount of
the obligation.
(b) Contingent Liabilities are disclosed after careful evaluation by
the Management of facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognized nor disclosed in the
financial statement except MAT Credit Entitlement.
As per requirement of Section 22 of Micro, Small & Medium Enterprises
Development Act, 2006 following information is disclosed to the extent
identifiable:-
Mar 31, 2014
(A) Basis of Preparation of Financial Statements
The Financial Statements are prepared as per historical cost conversion
and on Accrual basis and are in conformity with mandatory Accounting
Standards issued by the Institute of Chartered Accountants of India and
relevant provisions of the Companies Act, 1956 and the generally
accepted accounting policies in India.
(B) Sales and Income from Operation
Sales of goods :
(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts
recovered towards sales tax, octroi, freight and is net of discounts.
Erection and Commissioning Income is recognised as revenue, generally,
to the extent of completion of erection work as assessed or as and when
it becomes due as per terms of contracts.
(ii) Export sales are recognized on the date of bill of lading / Airway
bill.
Income from Services : Repairs and Service Income is recognised as
revenue after the service is rendered.
Other Operating Income : Income from royalty and others is recognized
on an accrual basis in accordance with the terms of the relevant
agreement.
Claims receivable are accounted at the time of lodgment, depending on
the certainty of receipt and claims payable are accounted at the time
of acceptance.
Excise duty / Duty Drawback refund claims are accounted as and when
accrued.
Interest & Dividend :
Interest : Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the applicable interest
rate. Interest income is included under the head "other income" in the
Statement of Profit and Loss.
Dividend : Dividend income is recognized when the Company''s right to
receive dividend is established by the reporting date.
(C) Fixed Assets, Depreciation, Amortization and Impairment Loss
(i) Fixed Assets are stated at cost of acquisition (net of cenvat
wherever applicable and expenditure incurred including interest on
borrowing and financial cost) / construction except certain land and
building which were revalued at market value and are stated at revalued
Cost.
(ii) Depreciation is provided :
a) In respect of assets acquired upto June, 1986 on straight-line
method in accordance with Circular No.1/86 issued by the Department of
Company Affairs.
b) In respect of assets acquired after 1st July, 1986 on straight-line
method at the rates specified in Schedule XIV of the Companies Act,
1956.
(iii) Intangible Fixed Assets: Over their estimated economic life, in
accordance with Accounting Standard on ''Intangible Assets'' (AS-26)
(iv) An amount representing the difference between depreciation on
Revalued Assets and on Original Cost of Assets is transferred from
Revaluation Reserve to Statement of Profit and Loss.
(v) Leasehold Land is amortised over the period of lease, if any.
(vi) In case, the recoverable amount of the fixed assets is lower than
its carrying amount, a provision is made for the impairment loss, if
any.
(D) Investments
Long term Investments are stated at cost with an appropriate provision
for permanent diminution in value.
(E) Inventories
All Inventories are valued at lower of cost and net realisable value.
Raw Materials and Components are valued at lower of cost determined on
weighted average basis and net realisable value.
Material in transit is valued at cost and net realisable value.
Work-in-progress and finished goods are valued at lower of cost and net
realisable value. Cost includes direct materials, labour and a
proportion of manufacturing overheads based on normal operating
capacity. Cost of finished goods includes excise duty and is determined
on a weighted average basis.
(F) Debenture / Share Issue Expenses
Debenture issue expenses and Share issue expenses are charged out in
the year in which they are incurred.
(G) Employee Benefits Employee benefits to employees are provided as
follows:
(i) Gratuity : The gratuity liability is funded through the scheme
administered
by the ICICI Prudential Life Insurance Co.Ltd, and the amount
paid/provided under the scheme are charged to Statement of Profit and
Loss on the basis of actuarial valuations.
(ii) Superannuation : Superannuation payable as per Superannuation
Scheme is
provided by payment to Superannuation Trust Fund, administered by the
ICICI Prudential Life Insurance Co.Ltd.
(iii) Company''s contributions payable to Provident Fund and Family
Pension Fund are charged to Statement of Profit and Loss.
(iv) The Company extends the benefit of encashment of leave to its
employees while in service as well as on retirement. Though encashment
is at the discretion of the Management for the leave accumulated while
in service as well as on retirement, it is provided for during the year
on the basis of actuarial valuations.
(H) R & D Expenses
All revenue expenses related to R & D including expenses in relation to
development of product / processes are charged to the Profit & Loss
Account in the year in which it is incurred.
(I) Foreign Currency Transactions
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end exchange rates.
(J) Derivative Transactions
The Company uses derivative financial instruments, such as Forward
Exchange Contracts, to hedge its risks associated with foreign currency
fluctuations. At every period end all outstanding derivative contracts
are fair valued on a mark-to-market basis and any loss on valuation is
recognised in the Statement of Profit and Loss, on each contract basis.
Any gain on mark-to-market valuation on respective contracts is not
recognised by the Company.
(K) Income Taxes
Income tax expense comprises Regular Tax or Minimum Alternate Tax and
is provided for as required by Income Tax Law and Rules & Regulations
framed there under. Deferred Tax Assets and Liabilities are recognised
as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income,
issued by The Institute of Chartered Accountants of India. Deferred Tax
Assets are recognized and carried forward to the extent there is a
virtual certainty that sufficient future taxable income will be
available against which such deferred tax asset can be realized.
(L) Contingent Liabilities and Commitments
(a) Provisions are recognized when the Company has present legal or
constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will be required to
settle the obligation and a reliable estimate can be made for the
amount of the obligation.
(b) Contingent Liabilities are disclosed after careful evaluation by
the Management of facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognized nor disclosed in the
financial statement except MAT Credit Entitlement.
Mar 31, 2013
(A) Basis of Preparation of Financial Statements
The Financial Statements are prepared as per historical cost conversion
and on Accrual basis and are in conformity with mandatory Accounting
Standards issued by the Institute of Chartered Accountants of India and
relevant provisions of the Companies Act, 1956 and the generally
accepted accounting policies in India.
(B) Sales and Income from Operation
Sales of goods :
(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts
recovered towards sales tax, octroi, freight and is net of discounts.
Erection and Commissioning Income is recognised as revenue, generally,
to the extent of completion of erection work as assessed or as and when
it becomes due as per terms of contracts.
(ii) Export sales are recognized on the date of bill of lading / Airway
bill.
Income from Services :
Repairs and Service Income is recognised as revenue after the service
is rendered.
Other Operating Income :
Income from royalty and others is recognized on an accrual basis in
accordance with the terms of the relevant agreement.
Claims receivable are accounted at the time of lodgment, depending on
the certainty of receipt and claims payable are accounted at the time
of acceptance.
Excise duty / Duty Drawback refund claims are accounted as and when
accrued.
Interest & Dividend :
Interest :
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
Dividend :
Dividend income is recognized when the Company''s right to receive
dividend is established by the reporting date.
(C) Fixed Assets, Depreciation, Amortization and Impairment Loss
(i) Fixed Assets are stated at cost of acquisition (net of cenvat
wherever applicable and expenditure incurred including interest on
borrowing and financial cost) / construction except certain land and
building which were revalued at market value and are stated at revalued
Cost.
(ii) Depreciation is provided :
a) In respect of assets acquired upto June, 1986 on straight-line
method in accordance with Circular No.1/86 issued by the Department of
Company Affairs.
b) In respect of assets acquired after 1st July, 1986 on straight-line
method at the rates specified in Schedule XIV of the Companies Act,
1956.
(iii) Intangible Fixed Assets: Over their estimated economic life, in
accordance with Accounting Standard on ''''Intangible Assets'''' (AS-26)
(iv) An amount representing the difference between depreciation on
Revalued Assets and on Original Cost of Assets is transferred from
Revaluation Reserve to Statement of Profit and Loss.
(v) Leasehold Land is amortized over the period of Lease, if any.
(vi) In case, the recoverable amount of the fixed assets is lower than
its carrying amount, a provision is made for the impairment loss, if
any.
(D) Investments
Long term Investments are stated at cost with an appropriate provision
for permanent diminution in value.
(E) Inventories
All Inventories are valued at lower of cost and net realizable value.
Raw Materials and Components are valued at lower of cost determined on
weighted average basis and net realizable value.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value. Cost includes direct materials, labour and a
proportion of manufacturing overheads based on normal operating
capacity. Cost of finished goods includes excise duty and is determined
on a weighted average basis.
(F) Debenture / Share Issue Expenses
Debenture issue expenses and Share issue expenses are charged out in
the year in which they are incurred.
(G) Employee Benefits Benefits to employees are provided as follows:
(i) Gratuity : The gratuity liability is funded through the scheme
administered by the ICICI Prudential Life Insurance Co.Ltd., and the
amount paid/provided under the scheme are charged to Statement of
Profit and Loss on the basis of actuarial valuations.
(ii) Superannuation : Superannuation payable as per Superannuation
Scheme is provided by payment to Superannuation Trust Fund,
administered by the ICICI Prudential Life Insurance Co.Ltd.
(iii) Company''s contributions payable to Provident Fund and Family
Pension Fund are charged to Statement of Profit and Loss.
(iv) The Company extends the benefit of encashment of leave to its
employees while in service as well as on retirement. Though encashment
is at the discretion of the management for the leave accumulated while
in service as well as on retirement, it is provided for during the year
on the basis of actuarial valuations.
(H) R & D Expenses
All revenue expenses related to R & D including expenses in relation to
development of product / processes are charged to the Profit & Loss
Account in the year in which it is incurred.
(I) Foreign Currency Transactions
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end exchange rates.
(J) Derivative Transactions
The Company uses derivative financial instruments, such as Forward
Exchange Contracts, to hedge its risks associated with foreign currency
fluctuations. At every period end all outstanding derivative contracts
are fair valued on a mark-to-market basis and any loss on valuation is
recognised in the Statement of Profit and Loss, on each contract basis.
Any gain on mark-to-market valuation on respective contracts is not
recognised by the Company.
(K) Income Taxes
Income tax expense comprises Regular Tax or Minimum Alternate Tax and
is provided for as required by Income Tax Law and Rules & Regulations
framed thereunder.
Deferred Ta x Assets and Liabilities are recognised as per Accounting
Standard (AS) - 22 on Accounting for Taxes on Income, issued by The
Institute of Chartered Accountants of India. Deferred Tax Assets are
recognized and carried forward to the extent there is a virtual
certainty that sufficient future taxable income will be available
against which such deferred tax asset can be realized.
(L) Contingent Liabilities and Commitments
(a) Provisions are recognized when the Company has present legal or
constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will be required to
settle the obligation and a reliable estimate can be made for the
amount of the obligation.
(b) Contingent Liabilities are disclosed after careful evaluation by
the Management of facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognized nor disclosed in the
financial statement except MAT Credit Entitlement.
Mar 31, 2012
(A) Basis of Preparation of Financial Statements
The Financial Statements are prepared as per historical cost conversion
and on Accrual basis and are in conformity with mandatory Accounting
Standards issued by the Institute of Chartered Accountants of India and
relevant provisions of the Companies Act, 1956 and the generally
accepted accounting policies in India.
(B) Sales and Income from Operation
Sales of goods :
(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts
recovered towards sales tax, octroi, freight and is net of discounts.
Erection and Commissioning Income is recognized as revenue, generally,
to the extent of completion of erection work as assessed or as and when
it becomes due as per terms of contracts.
(ii) Export sales are recognized on the date of bill of lading / Airway
bill.
Income from Services :
Repairs and Service Income is recognized as revenue after the service
is rendered. Other Operating Income :
Income from royalty and others is recognized on an accrual basis in
accordance with the terms of the relevant agreement.
Claims receivable are accounted at the time of lodgment, depending on
the certainty of receipt and claims payable are accounted at the time
of acceptance.
Excise duty / Duty Drawback refund claims are accounted as and when
accrued.
Interest & Dividend :
Interest :-
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
Dividend :-
Dividend income is recognized when the Company's right to receive
dividend is established by the reporting date.
(C) Fixed Assets, Depreciation, Amortization and Impairment Loss
(i) Fixed Assets are stated at cost of acquisition (net of canvas
wherever applicable and expenditure incurred including interest on
borrowing and financial cost) / construction except certain land and
building which were revalued at market value and are stated at revalued
Cost.
(ii) Depreciation is provided :
a) In respect of assets acquired up to June, 1986 on straight-line
method in accordance with Circular No.1/86 issued by the Department of
Company Affairs.
b) In respect of assets acquired after 1st July, 1986 on straight-line
method at the rates specified in Schedule XIV of the Companies Act,
1956.
(iii) Intangible Fixed Assets: Over their estimated economic life, in
accordance with Accounting Standard on 'Intangible Assets' (AS-26)
(iv) An amount representing the difference between depreciation on
Revalued Assets and on Original Cost of Assets is transferred from
Revaluation Reserve to Statement of Profit and Loss.
(v) Leasehold Land is amortized over the period of Lease, if any.
(vi) In case, the recoverable amount of the fixed assets is lower than
its carrying amount, a provision is made for the impairment loss, if
any.
(D) Investments
Long term Investments are stated at cost with an appropriate provision
for permanent diminution in value.
(E) Inventories
All Inventories are valued at lower of cost and net realizable value.
Raw Materials and Components are valued at lower of cost determined on
weighted average basis and net realizable value.
Work-in-progress and finished goods are valued at lower of cost and net
realizable value. Cost includes direct materials, labour and a
proportion of manufacturing overheads based on normal operating
capacity. Cost of finished goods includes excise duty and is determined
on a weighted average basis.
(F) Debenture / Share Issue Expenses
Debenture issue expenses and Share issue expenses are charged out in
the year in which they are incurred.
(G) Employee Benefits Employee benefits to employees are provided as
follows:
(i) Gratuity : The gratuity liability is funded through the scheme
administered by the ICICI Prudential Life Insurance Co.Ltd., and the
amount paid/provided under the scheme are charged to Statement of
Profit and Loss on the basis of actuarial valuations.
(ii) Superannuation : Superannuation payable as per Superannuation
Scheme is
provided by payment to Superannuation Trust Fund, administered by the
ICICI Prudential Life Insurance Co.Ltd.
(iii) Company's contributions payable to Provident Fund and Family
Pension Fund are charged to Statement of Profit and Loss.
(iv) The Company extends the benefit of encashment of leave to its
employees while in service as well as on retirement. Though encashment
is at the discretion of the management for the leave accumulated while
in service as well as on retirement, it is provided for during the year
on the basis of actuarial valuations.
(H) R & D Expenses
All revenue expenses related to R & D including expenses in relation to
development of product / processes are charged to the Profit & Loss
Account in the year in which it is incurred.
(I) Foreign Currency Transactions
Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end exchange rates.
(J) Derivative Transactions
The Company uses derivative financial instruments, such as Forward
Exchange Contracts, to hedge its risks associated with foreign currency
fluctuations. At every period end all outstanding derivative contracts
are fair valued on a mark-to-market basis and any loss on valuation is
recognized in the Statement of Profit and Loss, on each contract basis.
Any gain on mark-to-market valuation on respective contracts is not
recognized by the Company.
(K) Income Taxes
Income tax expense comprises Regular Tax or Minimum Alternate Tax and
is provided for as required by Income Tax Law and Rules & Regulations
framed there under.
Deferred Tax Assets and Liabilities are recognized as per Accounting
Standard (AS) - 22 on Accounting for Taxes on Income, issued by The
Institute of Chartered Accountants of India.
(L) Contingent Liabilities and Commitments
(a) Provisions are recognized when the Company has present legal or
constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will be required to
settle the obligation and a reliable estimate can be made for the
amount of the obligation.
(b) Contingent Liabilities are disclosed after careful evaluation by
the Management of facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognized nor disclosed in the
financial statement except MAT Credit Entitlement.
Mar 31, 2010
(A) Sales
(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts
recovered towards sales tax, octroi, freight and is net of discounts.
(ii) Erection and commissioning Income is recognised as revenue,
generally, to the extent of completion of erection work as assessed or
as and when it becomes due as per terms of contracts.
(iii) Repairs and Service Income is recognised as revenue after the
service is rendered.
(B) Accounting of Claims and Subsidies
(i) Claims receivable are accounted at the time of lodgement, depending
on the certainty of receipt and claims payable are accounted at the
time of acceptance.
(ii) Excise duty / Duty Drawback refund claims are accounted as and
when accrued.
(iii) Investment subsidy not specifically related to the fixed assets
is credited to Capital Reserve and retained till the requisite
conditions are fulfilled.
(C) Fixed Assets, Depreciation and Impairment Loss
(i) Fixed Assets are stated at cost of. acquisition (net of cenvat
wherever applicable) / construction except certain land and building
which were revalued at market value and are stated at revalued Cost.
(ii) Depreciation is provided :
a) In respect of assets acquired upto June, 1986 on straight-line
method in accordance with Circular No.1/86 issued by the Department of
Company Affairs.
b) In respect of assets acquired after 1st July, 1986 on straight-line
method at the rates specified in Schedule XIV of the Companies Act,
1956.
(iii) An amount representing the difference between depreciation on
Revalued Assets and on Original Cost of Assets is transferred from
Revaluation Reserve to Profit and Loss Account.
(iv) Cost of Lease-hold land is not amortised.
(v) In case, the recoverable amount of the fixed assets is lower than
its carrying amount, a provision is made for the impairment loss.
(D) Expenditure during Construction period
In case of new projects and substantial expansion, expenditure incurred
including interest on borrowings and financing cost is capitalised.
(E) Investments
Long term Investments are stated at cost with an appropriate provision
for permanent diminution in value.
(F) Inventories
All Inventories are valued at lower of cost and net realisable value.
Raw Materials and Components are valued at lower of cost determined on
weighted average basis and net realisable value.
Work in progress is valued at lower of cost and net realisable value.
Finished Goods is valued at lower of cost including excise payable
thereon and net realisable value.
(G) Deferred Revenue Expenditure
Debenture / Share Issue Expenses
Debenture Issue expenses and Share Issue expenses are charged out in
the year in which they are incurred.
(H) Retirement Benefits Retirement benefits to employees are provided
as follows:
(i) Gratuity : Gratuity payable to employees is provided on the basis
of
actuarial valuations.
(ii) Superannuation : Superannuation payable to certain employees is
provided for
by provision / payment to Superannuation Trust Fund as per
Superannuation Scheme.
(iii) Companys contributions payable to Provident Fund and Family
Pension Fund are charged to Profit and Loss account.
(iv) The Company extends the benefit of encashment of leave to its
employees while in service as well as on retirement. However, it does
not have any defined Retirement Benefit Scheme in this regard. Though
encashment is at the discretion of the management for the leave
accumulated while in service as well as on retirement, it is provided
for during the year on the basis of actuarial valuations.
(I) Research and Development
Revenue expenditure relating to Research and Development is charged out
in the year in which it is incurred. Capital expenditure incurred for
Research and Development is capitalised.
(J) Foreign Currency Transactions
(i) Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end exchange rates.
(ii) The difference in translation of monetary assets & liabilities and
realized gains & losses on foreign exchange transaction are recognised
in the Profit and Loss Account.
(K) Deferred Tax
Deferred Tax Assets and Liabilities are recognised in accordance with
Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued
by The Institute of Chartered Accountants of India.
(L) Provisions, contingent liabilities and contingent assets
(a) Provisions are recognised when the Company has present legal or
constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will be required to
settle the obligation and a reliable estimate can be made for the
amount of the obligation.
(b) Contingent Liabilities are disclosed after careful evaluation by
the Management of à facts and legal aspects of the matter involved.
(c) Contingent Assets are neither recognised nor disclosed in the
Financial Statements.