i. Change in accounting policies
During the year ended 31st March, 2012, the company has prepared the
financial statements as per the format prescribed by the Revised
Schedule VI to the Companies Act,1956 issued by Ministry of Corporate
Affairs. The company has also reclassified the previous year figures in
accordance with requirement for the current period.
ii. The financial statements are prepared under the historical cost
convention as a going concern and are generally in accordance with the
requirements of the Companies Act, 1956. The accounting policies not
specifically mentioned are consistent with generally accepted
iii. All items of income and expenditure are accounted for on accrual
basis. However, gratuity is being accounted for on cash basis as the
Company has not got actuarial valuation done of its total future
liability for its employees on account of gratuity as the employees
eligible for gratuity is insignificant.
Non-current investments are stated at cost. Current investment are
stated at lower of cost or fair value of individual investment.
v. Fixed Assets
Fixed Assets are stated at cost (including adjustments on revaluation)
less accumulated depreciation. Cost of acquisition is inclusive of
freight, duties and other incidental expenses incurred during
construction period and exclusive of convert credit availed thereon.
The Company is providing depreciation on straight line method as per
rates given in Schedule XIV of the Companies Act, 1956 on pro rata
vii. Valuation of inventory
a. Raw materials are valued at cost.
b. Finished goods are valued at lower of cost or net realizable value.
c. Stores items purchased during the year are treated as consumed.
viii. Foreign Currency Transaction
a. Transactions denominated in foreign currencies are normally
recorded at the exchange rates prevailing at the time of the
transaction. Foreign currency transactions remaining unsettled till
finalization of accounts for the year are translated at contracted
rates when covered by forward exchange contracts and at year end rates
in all other cases.
b. Balance in Exchange Earner''s Foreign Currency account is stated at
the exchange rates prevailing at the end of the year.
ix. Contingent Liability Contingent Liability, if any, are generally
not provided for in the accounts and are shown separately as a note to
x. Sales-tax & Service tax collected by the company are not treated as
a part of its revenue.
xi. Taxes on income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognized on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Where there is unabsorbed depreciation and
carry forward losses, deferred tax assets are recognized only if there
is virtual certainty of realization of such assets. Other deferred tax
assets are recognized only to the extent there is reasonable certainty
of realization in future.
xii. Segment Reporting
The accounting policies adopted for segment reporting are in line with
the accounting policy of the company. Revenue and expenses, which
relate to the enterprise as a whole and not allocable to segments on a
reasonable basis, have been included under the head Unallocated
xiii. Financial Derivatives & Commodity Hedging Transactions
a. Financial derivatives and commodity hedging contracts are accounted
on the date of their settlement and realized gain/loss in respect of
settled contracts are recognized in the profit & loss account.
b. The unrealized loss on contracts outstanding at the yearend are
provided for in the books of account of Company in accordance with the
guidance note on Accounting for Equity Index & Equity Stock Futures and
Options issued by the Chartered Accountants of India.
xiv. Impairment of assets
The carrying amount of assets is reviewed at each balance sheet date for
any indication of impairment based on internal external factors. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount and is charged to the Profit & Loss