a) BASIS OF ACCOUNTING
The financial accounts are prepared under the historical cost
convention and accounted on accrual basis and in accordance with
Accounting Principles generally accepted in India and comply with the
Accounting Standards notified by the Central Government of India, under
the Companies (Accounting Standards) Rules 2006 and relevant
provisions of the Companies Act, 1956.
b) USE OF ESTIMATES
The preparation of the financial statements is in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities and the disclosure relating to contingent assets and
liabilities as on the date of financial statements and the reported
amount of revenues and expenses during the reporting year and
management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. The actual results may
differ from these statements.
Finished goods, Raw materials including components, goods in process,
materials in transit, packing materials and stores & spares have been
valued at lower of cost and estimated net realiseable value. Cost is
computed under the FIFO method. Excise duty payable on manufactured
finished goods held in the factory is included in the value of closing
stock wherever applicable.
d) FIXED ASSETS AND DEPRECIATION
Depreciation has been charged:
(i) at 10% under straight line method on imported Body maker and Bag
openers and other projects under plant and machinery having regard to
the expected useful life and residual value and
(ii) at the rates and in the manner prescribed under schedule XIV of
the Companies Act, 1956.
(a) on assets relating to 3D Project (I line) and assets related to
Wind Mills under the straight line method.
(b) on all the other assets under written down value method.
e) REVENUE RECOGNITION
(i) Sales exclude discounts, sales tax recoveries and include excise
(ii) Interest is recognised on time basis determined by the amount
outstanding and the rate(s) applicable.
f) FIXED ASSETS
Fixed assets are stated at cost less depreciation /amortisation except
land which is stated at cost. Cost comprises purchase price and
attributable costs (including financing costs).
g) FOREIGN CURRENCY TRANSLATION
Net gain or loss on conversion at year end of current assets and
current liabilities other than transactions relating to fixed assets is
recognised in the Statement of Profit and Loss. In respect of
liabilities incurred in foreign currencies for acquisition of fixed
assets, variations in exchange rates at the time of repayment of loan
instalments are adjusted to the cost of fixed assets.
h) EMPLOYEE BENEFITS
1) Short term employee benefits are recognised as an expense at the
undiscounted amount in the statement of profit and loss account of the
year in which the related service is rendered.
2) Post employment and other long term employee benefits are recognised
as expense in the statement of profit and loss account of the year in
which the employee has rendered services.
i) Employees Provident Fund, Employees State Insurance and
Superannuation are defined contribution plans. The contributions under
these plans are charged to revenue.
ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The
contributions actuarially assessed by the L.I.C. and paid under the
plan are charged to revenue.
b) Actuarial gains and losses are charged to revenue.
iii) In respect of those not covered by L.I.C., schemes necessary
provisions has been made as applicable.
iv) Future liability on leave encashment to employees has been provided
as per company''s policy.
3) Termination benefits : Payments made under employees ''Early
Seperation Scheme'' are charged to the statement of Profit and loss.
i) EARNINGS PER SHARE
The company''s share capital consists only of Equity Shares. The basic
and diluted earnings per share are calculated and disclosed.
j) ACCOUNTING FOR TAXES ON INCOME
Tax expense for the current year comprises current tax and deferred
tax. Deferred tax liability is recognised for all timing differences.
The deferred tax asset on temporary difference is recognised subject to
consideration of prudence.
k) RELATED PARTY DISCLOSURES have been made as per Accounting Standard
l) RESEARCH AND DEVELOPMENT
Revenue expenditure on Research and Development is charged to Profit
and Loss Account as and when incurred. Expenditure on assets acquired
m) INTANGIBLE ASSETS
Intangible assets are disclosed in the accounts separately and written
off over their useful life.
n) IMPAIRMENT OF ASSETS
There being no indication of impairment of assets determined by the
Company, no loss has been recognised on impairment of assets.