Home  »  Company  »  ANG Industries  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of ANG Industries Ltd. Company

Mar 31, 2015

27. (a) Accounting Concepts for preparation and Presentation of Financial Statement

The accounts of the Company are prepared to comply with the Generally accepted Accounting Principles in India ( Indian GAAP), including the Accounting Standards notified under the relevant provisions of Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention . The financial statements are presented in Indian Rupees and converted the figures in lacs rounded upto two decimals.

All Assets and Liabilities have been classified as Current or Non Current as per the Company's normal operating cycle and other criteria set out in the revised Schedule III of the Companies Act, 2013. Based on the nature of the products and time between the acquisition of assets for processing and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities .

27. (b) Revenue Recognition

*Sales are recognized upon dispatch of goods from factory against firm orders.

* For other incomes, the company follows the accrual basis of accounting.

27. (c) Export Incentives

The same are booked as income on the basis of claim accrued in favor of the company.

27. (d) Fixed Assets

Fixed assets are stated at historical cost of acquisition or construction net of Tax/duty credits availed, if any, less accumulated depreciation / amortization. The Cost of Fixed assets includes Freight and all other incidental expenses related to acquisition, installation and any attributable cost of bringing the asset to its working conditions for its intended use. Borrowing cost directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. Interest on loans and other financial charges in respect of qualifying assets and expenses incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on trial runs up to the date of commencement of commercial production are capitalized

Advances paid toward acquisition of fixed assets and the cost of assets not ready to be put to use before the year end are disclosed under Capital Work in progress.

27. (e) Depreciation

Depreciation has been provided on straight line method on the basis of useful life of the assets as specified in schedule II of the Companies Act, 2013.

27. (f) Borrowing Costs

Borrowing cost attributable to the acquisition, construction or production of an assets are capitalized as part of the cost of that asset upto the date the asset is put to use. Borrowing cost, Interest on Term Loan, which are not related to fixed assets, are recognized as an expense in the period in which they are incurred.

27. (g) Investments

Investments in the nature of long-term are stated at cost of acquisition. Provision for decline in value, other than temporary, is made on the basis of market quotations whenever available.

27. (h) Valuation of Inventories

* Raw Materials, Stores and Packaging Materials are valued at lower of cost or net realizable value.

* Work in Progress has been valued at Cost of Raw Materials plus 50% of cost of Production.

* Finished Goods are valued at sale price less selling and distribution expenses & profits or net realization value , which ever is lower.

* Excise duty on finished goods lying in factory is accounted for on removal of goods since such liability arises only if they are sold in Domestic Tariff Area.

27. (i) Preliminary & Pre operative Expenses

Preliminary & Preoperative Expenses of period prior to year 2005-06 is written off over a period of ten years. Preliminary Expenses and Preoperative Expenses incurred during the year 2005-06 and later on are being amortised over a period of five years.

27. (j) Research and Development

Revenue expenditure incurred on Research & Development is charged to Profit & Loss Account of the year in which it is incurred, except for development costs which relate to the design and testing of new or improved materials, products or processes which are recognized as an asset to the extent that it is expected that such assets will generate future economic benefits. The expenses incurred prior to year 2005-06 is written off over a period of ten years and the expenses incurred during the year 2005-06 and later on are amortised over a period of five years. However, the expenses incurred during the year 2013-14 and 2014-15 have not been written off.

27. (k) Employee Benefits

All short term employee benefit plan such as salaries, wages , bonus, special award and medical benefits which fall due within 12 months of the period in which the employee render the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to profit and loss account.

The Company has established retirement benefits in the form of Gratuity fund with the Life Insurance of India whose premium is calculated on the basis of actuarial valuation, carried out by an independent actuary as at the balance sheet for the year ended 31st March 2008 and premium recalculated by LIC on the basis of Employees data provided to them.

Contribution to the provident funds are made monthly at a predetermined rate to the Regional Provident fund Commissioner and debited to profit and loss account on an accrual basis.

27. (l) Foreign Currency Transaction

Transaction in foreign currency are recorded at the exchange rates prevailing on the date of the transaction. To the extent, the Foreign bills got discounted with bank ,AS-11 is not applicable and remaining foreign Bills are entered in books at the rate on the date of transaction . Foreign currency assets and liabilities at the year end are translated at the year end exchange rates and the resultant exchange difference is recognized in the Profit & Loss Account, except those relating to acquisition of Fixed assets which are not put to use till year end as the same are adjusted in the cost of fixed assets. Investments made in the foreign Subsidiaries Companies are calculated on the exchange rates at the date of transactions.

Further the corresponding figures of overseas subsidiary companies are converted in USD i.e 1USD = 61.04 INR being the average foreign exchange rates prevailing during the financial year . The corresponding figures of Assets and liabilities of overseas subsidiary company is converted in USD at the rates as on date of Balance Sheet i.e 1USD = 62.53 INR

Forward Contracts in the nature of derivatives are market to market, wherever required, as at the Balance sheet date and provision for losses ,if any, is dealt with in the profit and Loss account . Unrealised gains, if any on such derivatives are not recognized in the Profit and Loss account.

27. (m) Tax on Income

a. Current tax is the amount of tax payable on taxable income for the year determined in accordance with the provisions of Income Tax Act, 1961.

b. Deferred tax is provided on timing difference between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets and liabilities are measured using the enacted / substantively enacted tax rate for continuing operations. Adjustment of deferred tax liability attributable to change in tax rate is shown in the profit and loss account as a part of the deferred tax adjustments for the period. Deferred tax assets are recognized only to the extend there is a reasonable certainty that the asset can be realized in future . Deferred tax assets such as MAT paid under section 115JB of Income tax act are reviewed as at the balance sheet date and written down or written up to reflect the amount that is reasonably /virtually certain ( as the case may be) to be realized.

27. (n) Contingencies

Contingencies loss arising from claims, litigation, assessments, fines, penalties etc. are provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated and are disclosed by the way of notes to accounts in the basis of available information.


Mar 31, 2014

(1) Securities offered to Banks to secure Term Loan:- (a) State Bank of India:

- First pari-passu charge on company''s fixed assets (including land & building) situated at A-197, Eldeco SIDCUL Industrial Park, Sitarganj, Uttrakhand.

- First charge on company''s land & building situated at following locations

B – 48, Phase – II, Noida, U.P.

19 – A, Udyog Vihar, Greater Noida, U.P.

- Personal Guarantee of Mr. Premjit Singh, Managing Director

(b) Yes Bank Ltd. :

- First pari-passu charge on company''s fixed assets (including land & building) situated at A-197, Eldeco SIDCUL Industrial Park, Sitarganj, Uttrakhand.

- First charge on company''s fixed assets (including land & building) situated at 150-A, SEZ, Noida, U.P.

- Personal Guarantee of Mr. Premjit Singh, Managing Director

(c) Development Credit Bank Ltd. :

- First pari-passu charge on company''s fixed assets (including land & building) situated at A-197, Eldeco SIDCUL Industrial Park, Sitarganj, Uttrakhand.

- First charge on company''s fixed assets situated at 14/6, Mathura Road, Faridabad, Haryana.

- Personal Guarantee of Mr. Premjit Singh, Managing Director

(2) Securities offered to Banks (viz. State Bank of India, Bank of Baroda, Development Credit Bank Ltd., Yes Bank Ltd. and Citibank N. A.) to secure working capital facilities under multiple banking arrangement, on pari-passu basis:- (a) Hypothecation of inventories viz raw material, stock in process, finished goods, stores and spares etc. including the stock in transit, stocks lying with processors & in third party godown consisting of automotive components, trailers, trailer components, receivables and other current assets, both present and future, except vehicles exclusively hypothecated to banks.

(b) Second charge on gross block (including Land & Building) of the company on pari-passu basis.

(c) Personal Guarantee of Mr. Premjit Singh, Managing Director.

(3) Securities offered to Factoring Companies (viz. SBI Global Factors Ltd. and IFCI Factors Ltd.):

(a) First charge on receivables factored by factoring companies.

(b) Personal Guarantee of Mr. Premjit Singh, Managing Director

(4) GNIDA dues amount is for the deferred instalments on the land at 19-A, Udyog Vihar, Greater Noida, U.P.

(5) All Vehicle Loans are secured by Hypothecation of vehicles financed.

(6) Charge of M/S Intec Capital Ltd. on machinery financed by them.

-Gratuity Fund

The employee''s Gratutity fund scheme is managed by a Trust ( Life Insurance Corp.of India) is a defined Benefit Plan .The present value of obligation is determined based on Acturial valuation , carreid out by an independent actuary from the Balance sheet for the year ended 31st March 2008 and premium recalculated by LIC on the basis of employees data provided to them on annualy basis for subsequent years.

Contribution to the Provident funds are made monthly at a Predetermined rate to the regional Provident Fund Commissioner and Debited to Profit and Loss account on an accurial basis .

26.(a) Accounting Concepts for preparation and Presentation of Financial Statement

The accounts of the Company are prepared under historical cost convention on accrual basis of accounting, in accordance with generally accepted accounting principles in India and comply with the mandatory Accounting Standards notified under the Companies ( Accounting Standards) Rules, 2006, as amended, and the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian Rupees and converted the figures in lacs rounded upto two decimals.

All Assets and Liabilities have been classified as Current or Non Current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI of the Companies Act, 1956. Based on the nature of the products and time between the acquisition of assets for processing and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities .

26.(b) Revenue Recognition

-Sales are recognized upon dispatch of goods from factory against firm orders.

-For other incomes, the company follows the accrual basis of accounting. 26.(c) Export Incentives

The same are booked as income on the basis of claim accrued in favor of the company.

26.(d) Fixed Assets

Fixed assets are stated at historical cost of acquisition or construction net of Tax/duty credits availed, if any, less accumulated depreciation / amortization. The Cost of Fixed assets includes Freight and all other incidental expenses related to acquisition, installation and any attributable cost of bringing the asset to its working conditions for its intended use. Borrowing cost directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized . Interest on loans and other financial charges in respect of qualifying assets and expenses incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on trial runs up to the date of commencement of commercial production are capitalized Advances paid toward acquisition of fixed assets and the cost of assets not ready to be put to use before the year end are disclosed under Capital Work in progress.

26.(e) Depreciation

Depreciation has been provided on straight line method basis as per the rates specified in schedule XIV of the Companies Act, 1956.

26.(f) Borrowing Costs

Borrowing cost attributable to the acquisition, construction or production of an assets are capitalized as part of the cost of that asset upto the date the asset is put to use. Borrowing cost, Interest on Term Loan, which are not related to fixed assets, are recognized as an expense in the period in which they are incurred.

26.(g) Investments

Investments in the nature of long-term are stated at cost of acquisition. Provision for decline in value, other than temporary, is made on the basis of market quotations whenever available.

26.(h) Valuation of Inventories

- Raw Materials, Stores and Packaging Materials are valued at lower of cost or net realizable value.

- Work in Progress has been valued at Cost of Raw Materials plus 50% of cost of Production.

- Finished Goods are valued at sale price less selling and distribution expenses & profits or net realization value , which ever is lower.

- Excise duty on finished goods lying in factory is accounted for on removal of goods since such liability arises only if they are sold in Domestic Tariff Area.

26.(i) Preliminary & Pre operative Expenses

Preliminary & Preoperative Expenses of period prior to year 2005-06 is written off over a period of ten years. Preliminary Expenses and Preoperative Expenses incurred during the year 2005-06 and later on are being amortised over a period of five years.

26.(j) Research and Development

Revenue expenditure incurred on Research & Development is charged to Profit & Loss Account of the year in which it is incurred, except for development costs which relate to the design and testing of new or improved materials, products or processes which are recognized as an asset to the extent that it is expected that such assets will generate future economic benefits. The expenses incurred prior to year 2005-06 is written off over a period of ten years and the expenses incurred during the year 2005-06 and later on are amortised over a period of five years. However , the expenses incurred during the year 2013-14 have not been written off during the year.

26.(k) Employee Benefits

All short term employee benefit plan such as salaries, wages , bonus, special award and medical benefits which fall due within 12 months of the period in which the employee render the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to profit and loss account .

The Company has established retirement benefits in the form of Gratuity fund with the Life Insurance of India whose premium is calculated on the basis of actuarial valuation, carried out by an independent actuary as at the balance sheet for the year ended 31st March 2008 and premium recalculated by LIC on the basis of Employees data provided to them .

Contribution to the provident funds are made monthly at a predetermined rate to the Regional Provident fund Commissioner and debited to profit and loss account on an accrual basis.

26.(l) Foreign Currency Transaction

Transaction in foreign currency are recorded at the exchange rates prevailing on the date of the transaction. To the extent, the Foreign bills got discounted with bank ,AS-11 is not applicable and remaining foreign Bills are entered in books at the rate on the date of transaction . Foreign currency assets and liabilities at the year end are translated at the year end exchange rates and the resultant exchange difference is recognized in the Profit & Loss Account, except those relating to acquisition of Fixed assets which are not put to use till year end as the same are adjusted in the cost of fixed assets. Investments made in the foreign Subsidiaries Companies are calculated on the exchange rates at the date of transactions.

Further the corresponding figures of overseas subsidiary companies are converted in USD i.e 1USD = 60.28 INR being the average foreign exchange rates prevailing during the financial year . The corresponding figures of Assets and liabilities of overseas subsidiary company is converted in USD at the rates as on date of Balance Sheet i.e 1USD = 59.76 INR

Forward Contracts in the nature of derivatives are market to market, wherever required, as at the Balance sheet date and provision for losses ,if any, is dealt with in the profit and Loss account . Unrealised gains, if any on such derivatives are not recognized in the Profit and Loss account.

26.(m) Tax on Income

a. Current tax is the amount of tax payable on taxable income for the year determined in accordance with the provisions of Income Tax Act, 1961.

b. Deferred tax is provided on timing difference between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets and liabilities are measured using the enacted / substantively enacted tax rate for continuing operations. Adjustment of deferred tax liability attributable to change in tax rate is shown in the profit and loss account as a part of the deferred tax adjustments for the period. Deferred tax assets are recognized only to the extend there is a reasonable certainty that the asset can be realized in future . Deferred tax assets such as MAT paid under section 115JB of Income tax act are reviewed as at the balance sheet date and written down or written up to reflect the amount that is reasonably /virtually certain ( as the case may be) to be realized.

26.(n) Contingencies

Contingencies loss arising from claims, litigation, assessments, fines, penalties etc. are provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated and are disclosed by the way of notes to accounts in the basis of available information.


Mar 31, 2013

1.(a) Accounting Concepts for Preparation and Presentation of Financial Statement

The accounts of the Company are prepared under historical cost convention on accrual basis of accounting, in accordance with generally accepted accounting principles in India and comply with the mandatory Accounting Standards notified under the

Companies (Accounting Standards) Rules, 2006, as amended, and the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian Rupees and converted the figures in lacs rounded upto two decimals.

During the year ended March 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for presentation of its financial statements. The revised Schedule VI has a significant impact on the presentation and disclosure made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirement applicable in the current year .

All Assets and Liabilities have been classified as Current or Non Current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI of the Companies Act, 1956. Based on the nature of the products and time between the acquisition of assets for processing and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities .

1.(b) Revenue Recognition

-Sales are recognized upon dispatch of goods from factory against firm orders.

-For other incomes, the company follows the accrual basis of accounting.

1.(c) Export Incentives

The same are booked as income on the basis of claim accrued in favor of the Company.

1.(d) Fixed Assets

Fixed assets are stated at historical cost of acquisition or construction net of Tax/duty credits availed, if any, less accumulated depreciation / amortization. The Cost of Fixed assets includes Freight and all other incidental expenses related to acquisition, installation and any attributable cost of bringing the asset to its working conditions for its intended use. Borrowing cost directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized . Interest on loans and other financial charges in respect of qualifying assets and expenses incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on trial runs up to the date of commencement of commercial production are capitalized

Advances paid toward acquisition of fixed assets and the cost of assets not ready to be put to use before the year end are disclosed under Capital Work in Progress.

1.(e) Depreciation

Depreciation has been provided on straight line method basis as per the rates specified in schedule XIV of the Companies Act, 1956.

1.(f) Borrowing Costs

Borrowing cost attributable to the acquisition, construction or production of an assets are capitalized as part of the cost of that asset upto the date the asset is put to use. Borrowing cost, Interest on Term Loan, which are not related to fixed assets, are recognized as an expense in the period in which they are incurred.

1.(g) Investments

Investments in the nature of long-term are stated at cost of acquisition. Provision for decline in value, other than temporary, is made on the basis of market quotations whenever available.

1.(h) Valuation of Inventories

- Raw Materials, Stores and Packaging Materials are valued at lower of cost or net realizable value.

- Work in Progress has been valued at Cost of Raw Materials plus 50% of Cost of Production.

- Finished Goods are valued at sale price less selling and distribution expenses & profits or net realization value , which ever is lower.

- Excise duty on finished goods lying in factory is accounted for on removal of goods since such liability arises only if they are sold in Domestic Tariff Area.

1.(i) Preliminary & Pre operative Expenses

Preliminary & Preoperative Expenses of period prior to year 2005-06 is written off over a period of ten years. Preliminary Expenses and Preoperative Expenses incurred during the year 2005-06 and later on are being amortised over a period of five years.

1.(j) Research and Development

Revenue expenditure incurred on Research & Development is charged to Profit & Loss Account of the year in which it is incurred, except for development costs which relate to the design and testing of new or improved materials, products or processes which are recognized as an asset to the extent that it is expected that such assets will generate future economic benefits. The expenses incurred prior to year 2005-06 is written off over a period of ten years and the expenses incurred during the year 2005-06 and later on are amortised over a period of five years.

1.(k) Employee Benefits

All short term employee benefit plan such as salaries, wages , bonus, special award and medical benefits which fall due within 12 months of the period in which the employee render the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to profit and loss account .

The Company has established retirement benefits in the form of Gratuity fund with the Life Insurance of India whose premium is calculated on the basis of actuarial valuation, carried out by an independent actuary as at the Balance Sheet for the year ended 31st March 2008 and premium recalculated by LIC on the basis of Employees data provided to them .

Contribution to the provident funds are made monthly at a predetermined rate to the Regional Provident Fund Commissioner and debited to profit and loss account on an accrual basis.

1.(l) Foreign Currency Transaction

Transaction in foreign currency are recorded at the exchange rates prevailing on the date of the transaction. To the extent, the Foreign Bills got discounted with bank, AS-11 is not applicable and remaining foreign Bills are entered in books at the rate on the date of transaction. Foreign currency assets and liabilities at the year end are translated at the year end exchange rates and the resultant exchange difference is recognized in the Profit & Loss Account, except those relating to acquisition of Fixed assets which are not put to use till year end as the same are adjusted in the cost of fixed assets. Investments made in the Foreign Subsidiaries Companies are calculated on the exchange rates at the date of transactions.

Further the corresponding figures of overseas subsidiary companies are converted in USD i.e 1USD = INR 54.65 being the foreign exchange rates prevailing at the end of financial year .

Forward Contracts in the nature of derivatives are market to market, wherever required, as at the Balance Sheet date and provision for losses, if any, is dealt with in the Profit and Loss account . Unrealised gains, if any on such derivatives are not recognized in the Profit and Loss account.

1.(m) Tax on Income

a. Current tax is the amount of tax payable on taxable income for the year determined in accordance with the provisions of Income Tax Act, 1961.

b. Deferred tax is provided on timing difference between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets and liabilities are measured using the enacted / substantively enacted tax rate for continuing operations. Adjustment of deferred tax liability attributable to change in tax rate is shown in the profit and loss account as a part of the deferred tax adjustments for the period. Deferred tax assets are recognized only to the extend there is a reasonable certainty that the asset can be realized in future . Deferred tax assets such as MAT paid under section 115 JB of Income Tax Act are reviewed as at the balance sheet date and written down or written up to reflect the amount that is reasonably /virtually certain ( as the case may be) to be realized. Further, no Deferred Tax is being provided on the timing difference for the units availed exemption of Income Tax under section 80 IC etc.

1.(n) Contingencies

Contingencies loss arising from claims, litigation, assessments, fines, penalties etc. are provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated and are disclosed by the way of notes to accounts in the basis of available information.


Mar 31, 2012

1. Accounting Concepts

The accounts are prepared under historical cost convention, on accrual basis of accounting, in accordance with generally accepted accounting principles in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Revenue Recognition

-Sales are recognized upon dispatch of goods from factory against firm orders.

-For other incomes, the company follows the accrual basis of accounting.

3. Export Incentives

The same are booked as income on the basis of claim accrued in favor of the company.

4. Fixed Assets

Fixed assets are stated at historical cost of acquisition or construction and include all other incidental expenses related to acquisition and any attributable cost of bringing the asset to its working conditions for its intended use.

Advances paid toward acquisition of fixed assets and the cost of assets not ready to be put to use before the year end are disclosed under Capital Work in progress.

5. Depreciation

Depreciation has been provided on straight line method basis as per the rates specified in schedule XIV of the Companies Act, 1956.

6. Borrowing Costs

Borrowing cost attributable to the acquisition, construction or production of an assets are capitalized as part of the cost ofthat asset. Borrowing cost, Interest on Term Loan, which are not related to fixed assets, are recognized as an expense in the period in which they are incurred.

7. Investments

Investments in the nature of long-term are stated at cost of acquisition. Provision for decline in value, other than temporary, is made on the basis of market quotations whenever available.

8. Valuation of Inventories

- Raw Materials, Stores and Packaging Materials are valued at lower of cost or net realizable value.

- Work in Progress has been valued at Cost of Raw Materials plus 50% of cost of Production.

- Finished Goods are valued at sale price less selling and distribution expenses & profits.

- Excise duty on finished goods lying in factory is accounted for on removal of goods since such liability arises only if they are sold in DomesticTariff Area.

9. Preliminary & Pre operative Expenses

Preliminary & Preoperative Expenses of period prior to year 2005-06 is written off over a period often years. Preliminary Expenses and Preoperative Expenses incurred during the year 2005-06 and later on are being amortised over a period of five years.

10. Research and Development

Revenue expenditure incurred on Research & Development is charged to Profit & Loss Account of the year in which it is incurred, except for development costs which relate to the design and testing of new or improved materials, products or processes which are recognized as an asset to the extent that it is expected that such assets will generate future economic benefits. The expenses incurred prior to year 2005-06 is written off over a period often years and the expenses incurred during the year 2005-06 and later on are amortised over a period of five years.

11. Employee Benefits

All shortterm employee benefit plan such as salaries, wages, bonus, special award and medical benefits which fall due within 12 months of the period in which the employee render the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to profit and loss account.

The Company has established retirement benefits in the form of Gratuity fund with the Life Insurance of India whose premium is calculated on the basis of actual valuation, carried out by an independent actual as at the balance sheet for the year ended 31st March 2008 and premium recalculated by LIC on the basis of Employees data provided to them .

Contribution to the provident funds are made monthly at a predetermined rate to the Regional Provident fund Commissioner and debited to profit and loss account on an accrual basis.

12 Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rates prevailing on the date ofthe transaction. To the extent, the Foreign bills got discounted with bank, AS-11 is not applicable and remaining foreign Bills are entered in books at the rate on the date of transaction . Foreign currency assets and liabilities at the year end are translated at the year end exchange rates and the resultant exchange difference is recognized in the Profit & Loss Account, except those relating to acquisition of Fixed assets which are not put to use till year end as the same are adjusted in the cost of fixed assets. Investments made in the foreign Subsidiaries Companies are calculated on the exchange rates on the date of transactions.

Further the corresponding figures of overseas subsidiary companies are converted in USD i.e 1USD =INR 50.85 being the foreign exchange rates prevailing at the end of last financial year.

Forward Contracts in the nature of derivatives are market to market, wherever required, as at the Balance sheet date and provision for losses ,if any, is dealt with in the profit and Loss account. Unrealised gains, if any on such derivatives are not recognized in the Profit and Loss account.

13 Taxon Income

a. Current tax is the amount of tax payable on taxable income for the year determined in accordance with the provisions of Income Tax Act, 1961.

b. Deferred tax is provided on timing difference between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets and liabilities are measured using the enacted / substantively enacted tax rate for continuing operations. Adjustment of deferred tax liability attributable to change in tax rate is shown in the profit and loss account as a part ofthe deferred tax adjustments for the period. Deferred tax assets are recognized only to the extend there is a reasonable certainty that the asset can be realized in future . Deferred tax assets such as MAT paid under section 115JB of Income Tax Act are reviewed as at the Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Further, no Deferred tax is being provided on the timing difference for the units availed exemption of I ncomeTax under section 801C etc.

14. Contingencies

Contingencies loss arising from claims, litigation, assessments, fines, penalties etc. are provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated and are disclosed by way of notes to accounts in the basis of available information.

 
Subscribe now to get personal finance updates in your inbox!