(A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:
The Financial Statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards
pursuant to Companies (Accounting Standards) Rules, 2006. All income
and expenditure having material bearing on the financial statements are
recognised on accrual basis.
The preparation of financial statements requires the Management to make
certain estimates and assumptions in the reports amounts of assets and
liabilities (Including contingent liabilities) as on the date of the
financial statements and reported income and expenditure during the
reported period. The Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
(B) FIXED ASSETS:
Fixed Assets are stated at cost of acquisition or construction (net of
cenvat credits). All costs relating to the acqusition and installation
of fixed assets are capitalized and include borrowing costs directly
attributable to construction or acquisition of fixed assets, up to the
date of asset is put to use.
(C) INTANGIBLE ASSETS:
Cost relating to acquisition of Brands and Technical Know-how are
capitalised and ammortised on a straight line basis over a period of
ten years. Software cost is ammortised on Straight line basis over a
period of three years.
Long term investments are carried at cost less provision, if any, for
permanent diminution in value of such investments. Current investments
are stated at lower of cost and quoted/fair value computed category
Raw-materials and packing materials are valued at lower of cost or
market value. Work-in process and Finished Goods are valued at cost and
includes element of production overheads. Traded goods are valued at
cost. Material-in-Transit valued at cost incurred to date. Consumable
stores are charged to the profit and loss account in the year of its
(F) REVENUE RECOGNITION:
(i) The Company recognises sale on despatch of goods to customers.
Sales are exclusive of excise duty, sales tax and sales returns.
(ii) Export Benefits under Duty Entitlement Pass Book Scheme, is
estimated and accounted in the year of exports.
(iii) Revenues from services are recognized when such services are
(G) EXCISE-DUTY: Excise duty is recognised on goods manufactured for
(H) DEPRECIATION/ AMORTISATION:
(i) Depreciation on all the fixed assets have been charged in
accordance with rates specified in Schedule XIV of Companies Act, 1956
on straight line basis.
(ii) Capital Expenditure incurred on the assets not owned by the
company are amortised over a period of five years.
(iii) Depreciation on addition to assets or sale of assets is
calculated pro-rata from the month such addition or upto the month of
sale, as the case may be.
(I) RETIREMENT BENEFITS:
Liability in respect of Defined Benefit Plan for Gratuity is accounted
based on the Actuarial valuation, arrived at after considering the part
funding through Gratuity Policy, in accordance with the method stated
in the Accounting Standard 15 (Revised) on Employees Benefits The
liability in respect of Leave Encashment has been provided as per the
rules of the Company.
The contribution to Provident Fund and other recognised funds are
calculated as per the prescribed rates under the relevant law and
contributions are recognised in the Profit and Loss Account on an
(J) FOREIGN CURRENCY TRANSACTIONS:
Foreign Currency transactions arising during the year are recorded at
the rate of exchange prevailing on the date of transaction.
Transactions which remained unsettled on Balance Sheet date are
restated at the closing rate prevailing on that date. All exchange
differences are dealt with in the statement of Profit & Loss Account ,
except those relating to the acquisition of fixed assets which are
adjusted in the cost of assets.
(K) ACCOUNTING FOR TAXES:
Deferred tax is recognised, for all timing differences, subject to
consideration of prudence, in respect of Deferred Tax Assets.
(L) SUBSIDY ON FIXED ASSETS:
Subsidy received as contribution towards cost of capital Investment
project is considered as Capital Reserve .
(M) OPERATING LEASE - AS 19 LEASES :
Lease charges paid for operating leases are charged to profit and loss
account on a straight- line basis over the lease term.
Each holder of equity shares is entitled to one vote per share with a
right to receive per share dividend declared by the Company. In the
event of liquidation, the equity shareholders are entitled to receive
remaining assets of the Company (after distribution of all preferential
amounts) in the proportion of equity shares held by the shareholders.
During the year, the Company has recorded Dividend @ 5% (previous year:
5% ) on a share of teach.