1. ACCOUNTING CONCEPTS
Financial statements are based on historical cost concept. Mercantile
system of accounting has been followed and income and expenditure are
recognized on accrual basis.
2. FIXED ASSETS AND DEPRECIATION (IN ACCORDANCE WITH AS -10 ISSUED BY
Fixed assets are stated at cost of acquisition.
METHOD OF PROVIDING DEPRECIATION ( IN ACCORDANCE WITH AS - 6 ISSUED BY
ICAI ) Depreciation for Plant and Machinery has been provided on
Straight Line Method and for other assets on Written Down Value Method.
RATE OF DEPRECIATION ADOPTED
On all assets acquired upto 31-03-1987, depreciation has been provided
at the then prevailing rate of depreciation as per Income Tax rules.
For assets acquired from 01-04-1987, rates given in Schedule XIV to the
Companies Act, 1956 have been adopted.
3. INVESTMENTS (IN ACCORDANCE WITH AS -13 ISSUED BY ICAI)
Investments.are stated at cost
4. INVENTORY VALUATION (IN ACCORDANCE WITH AS - 2 ISSUED BY ICAI)
Raw Materials, Process stock and stores & spares - Valued at cost.
Finished Goods - Valued at cost or Market price, whichever is lower.
5. RETIREMENT BENEFITS (IN ACCORDANCE WITH AS -15 ISSUED BY ICAI)
a. Liability for Gratuity ,
i) Company''s Liability towards Gratuity in respect of Directors on
full time employment who beneficially own shares in the Company
carrying more than 5% of the total voting power has been provided for
and not funded. The liability on this account, provided for and not
funded, is Rs.24.58 lakhs as on
ii) Company''s liability towards Gratuity in respect of all other
employees is worked out on actuarial basis and is funded.
b. Contribution to Provident Fund is made as per the provisions of
Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and
remitted to the Provident Fund Commissioner.
c. Liability on account of leave salary has been provided for in
accordance with the scheme in force.
6. RELATED PARTY DISCLOSURES (IN ACCORDANCE WITH AS -18 ISSUED BY
a) List of Related Parties
Associate Company Nil
b) Key Management Personal
Name of the related Party , Nature of relationship
i) Sri R.Srihari Managing Director
ii) Sri S.Balakrishna Wholetime Director
iii) Sri R.Padmanaban Technical Director
c) Particulars of Transaction with Related Parties.
I) Transaction with Associate Company Nil
II) Details of Transaction relating to persons referred to in item ( b)
Remuneration - Rs 34,34,511/-( Previous year - Rs. 34,42,769/-)
I ill Details of Transaction relating to Interest paid for short term
loans Rs.6,05,733/- (Previous year - Rs.3,00,000/-) ‘
7. DEFERRED TAX LIABILITY (IN ACCORDANCE WITH AS -22 ISSUED BY ICAI)
Opening Deferred tax liability as on 01-04-2011 1,78,48,245
Less:- Transferred from P & L account during 2011-12 1,78,48,245
Closing Deferred tax liability as on 31-03-20t2 NiJ
8. CONTINGENCIES (IN ACCORDANCE WITH AS-29 ISSUED BY ICAI)
Contingent liabilities are indicated by way of notes forming part of
9. INCOME IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS-11 ISSUED BY
Export sales in foreign currency are accounted at the exchange rates
prevailing on the date of invoice/ negotiation of documents where such
sales are not covered by forward contracts.
10. EXPENDITURE IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS-11 ISSUED
Expenditure in foreign currency is accounted at the actual amount spent
and provision for expenses to be paid in foreign currency has been made
at the rate of exchange prevailing on the Balance sheet -date.