(a) BASIS OF ACCOUNTING
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(GAAP) to comply with the Accounting Standards specified under Section
133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies
Act, 2013 ("the Act"). The financial statements have been prepared on
accrual basis under the historical cost convention, except stated
otherwise. The financial statements are presented in Indian Rupees
rounded off to the nearest Rupees in Thousands.
(b) USE OF ESTIMATES
The preparation of the financial statements in conformity with GAAP
requires the management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosure of
contingent liabilities as at the date of the financial statements, and
the reported amounts of revenue and expenses during the reported
period. The Management believes that the estimates used in preparation
of the financial statements are prudent and reasonable. Differences
between the actual results and estimates are recognised in the period
in which the results are known/ materialised.
(c) FIXED ASSETS
All fixed assets are valued at Cost less accumulated Depreciation.
Direct costs are capitalized until assets are ready for use. Subsequent
expenditures related to an item of fixed asset are added to its book
value only if they increase the future benefits from the existing asset
beyond its previously assessed standard performance.
(d) DEPRECIATION
(i) Effective 1st April 2014, the Company depreciates its fixed assets
over the useful life in the manner prescribed in Schedule II of the
Act, as against the earlier practice of depreciating at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
(ii) Depreciation on fixed assets are accounted for on pro-rata basis
with reference to date of use / disposal.
(e) INVENTORIES
(i) Finished Goods - At cost or net realizable value, whichever is
lower.
(ii) Trading Goods - At cost or net realizable value, whichever is
lower.
(iii) Raw Materials, Stores, Spare Parts, Packing Materials &
Work-In-Progress - At cost.
(iv) Raw Material: Upper (Produced) - At Cost
(v) The value of Finished Goods includes Excise Duty, wherever
applicable.
(f) EMPLOYEE BENEFITS
(i) Short Term Employee Benefits (i.e. benefits payable within one
year): These are recognized in the period in which employee services
are rendered.
(ii) Post Employment and other Long Term Employee Benefit (Defined
Contribution Plan):
A Defined Contribution Plan is a post - employment benefit plan under
which the Company pays specified contributions to a separate entity.
The Company makes specified monthly contributions towards Provident
Fund (including Pension Fund) and Employees' State Insurance. The
Company's contribution is recognized as an expense in the Profit and
Loss Statement during the period in which the employee renders the
related service.
In respect of Gratuity, the Company's contribution to the Group
Gratuity - cum - Life Insurance Scheme under Cash accumulation System
of Life Insurance Corporation of India is charged against the revenue,
on receipt of demand.
(g) PROVISIONS
Provisions are recognised where reliable estimate can be made for
probable outflow of resources to settle the present obligation as a
result of past event, and are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
Sheet date and are not discounted to its present value.
(h) FOREIGN CURRENCY TRANSACTIONS
(i) Foreign Currency transactions are recorded at the exchange rates
prevailing on the date of transaction.
(ii) At each Balance sheet date, Foreign Currency Monetary Items are
reported using closing rates.
(iii) Exchange difference arising on the settlement of monetary items
is recognized as income or expense in the period in which they arise.
(i) EXCISE DUTY/SERVICE TAX AND SALES TAX/VALUE ADDED TAX
Excise duty/Service Tax is accounted on the basis of both, payments
made in respect of goods cleared/services provided as also goods lying
in warehouses.
(j) RECOGNITION OF INCOME AND EXPENDITURE
Sales are recognized when goods are supplied and are recorded net of
Trade discount and other Taxes. Other Incomes and Expenses are
accounted for on accrual basis and provision is made for all known
losses and expenses. Interest Income is recognized on time proportion
basis taking into account the amount outstanding and rates applicable.
(k) CONTINGENT LIABILITIES
Contingent Liabilities are not provided for in the Accounts and are
shown separately in notes to financial statements.
(l) INVESTMENTS
Investments, which are readily realisable and intended to be held for
not more than one year the date on which such investments are made, are
classified as current investments. All other investments are classified
as long-term investments. The portion of long term investment expected
to be realised within twelve months after the reporting date are
disclosed under current investments as per the requirement of Schedule
III. Current Investments are carried at Cost or Fair Value, whichever
is lower. Non - Current Investments are carried at Cost.
(m) BORROWING COSTS
Interest and other Borrowing Costs attributable to qualifying assets
are capitalized. Borrowing cost is recognized in the period to which
they relate and is charged to Statement of Profit and Loss.
(n) TAXATION
Provision for Tax is made for both Current Tax, and Deferred Tax charge
or credit. Current Tax is provided on the taxable income of the company
using the applicable tax rates and tax laws. Deferred tax assets and
liabilities arising on account for timing differences, which are
capable of reversal in subsequent periods are recognised using tax
rates and tax laws, which have been enacted or substantively enacted by
the Balance Sheet Date.
(o) SEGMENT REPORTING
The Company identifies primary segments based on the pre-dominant
sources of risk effects and returns depending on organization and of
the management and internal financial reporting system. The operating
segments are the segments for which separate financial information are
available and operating profit/loss therefrom are evaluated regularly
by the management for allocation of resources and assessment of
performance.
Revenue, expenses, assets and liabilities which relate to the company
as a whole which are not allocable to segments on direct and/or
reasonable basis have been included under "unallocated
revenue/expenses/assets/liabilities"
(p) EARNINGS PER SHARE
Annualized Earnings Per Share (Basic and Diluted) is calculated by
dividing the net profit after tax for the year attributable to equity
shareholders of the Company by the weighted average number of equity
shares outstanding during the year.
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