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Accounting Policies of Aseem Global Ltd. Company

Mar 31, 2014

NOTE NO. 1:

Aseem Global Limited (the Company) is a public limited company domiciled in India, incorporated in New Delhi in 1983 under the provisions of Companies Act, 1956. Its shares are listed on Delhi Stock Exchange Limited and Bombay Stock Exchange Limited. The Company is into trading and manufacturing of Non-ferrous metals. Its manufacturing unit is located at Abu Road, Rajasthan.

a) Basis of preparation and presentation of financial statements ''

The financial statements are prepared on historical cost basis and on the principles of going concern. The accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles. Ail income and expenditure are being accounted for on accrual basis. The financial statements are presented in Indian rupees. The financial statements have been prepared in accordance with Schedule VI to the ~ Companies Act, 1956.

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 Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle at 12 months for the purpose of current - noncurrent classification of assets and liabilities.

b) Use of Estimates

In preparing Company''s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined.

c) Revenue Recognition Sales and other incomes:

Sales are recognised when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recognised net of trade discounts, rebates, sales taxes and excise duties (on goods - manufactured and outsourced). It does not include inter-branch transfers. Export Sales are accounted for with reference to the date of bill of lading. Commission on consignment is recognized when the material is sold by the consignee. Income from interest on deposits is recognized on time proportionate basis.

Export Benefits:

Income from export incentives such as duty drawback and premium on sale of import licences, and lease license fee are recognised on an accrual basis.

Refund of Additional Duty of Customs:

In terms of Customs notification no: 102/2007 dated 14-09-2007, the amount of additional duty of customs paid at the time of clearance of goods from Customs for home consumption is refundable if the goods are sold and CENVAT Credit of Additional Duty is denied to the purchaser and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty (Net of CENVAT Credit) paid at the time of clearance of goods is accounted for as expense. CENVAT Credit availed at the time of clearance of goods is accounted for as Balance with Revenue Authorities under Short Term Loans and Advances. After sales of goods if benefit of CENVAT Credit is passed on to the customers, the same is accounted for as -

expense and if the benefit of CENVAT Credit is not passed the same is eligible for refund as per prevailing laws, then the same is accounted for as Special Additional Duty Refundable appearing under Short Term Loans and Advances.

d) Inventories

Inventories are valued at lower of cost and net realizable value, except for scrap and by-products, which is valued at net realizable value. Cost is determined on the basis of the First in First Out method. It includes all the appropriate allocable overheads and excise duty wherever applicable. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Provision for inventory obsolescence is made based on the best estimates of management.

Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

e) Investments

Investments that are readily realizable and are Intended to be held for not more than one year from the date on which such investments are made are classified as current investments. All other investments are classified as Non-Current investments. Current investments are carried at cost or fair value, whichever is lower. Non-Current investments are carried at cost. However, provision for diminution is made to recognize a decline, other than temporary, in the value of the investments, such reduction being determined and made for each investment individually.

f) Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation and CENVAT benefit availed on capital goods.

Expenditure incurred on startup and commissioning of the project and/or substantial expansion, including the expenditure incurred on trial runs (Net of trial run receipts, if any) up to the date of commencement of commercial production are capitalized.

g) Pre-operative/implementation (construction) period expenses

Administration and other general overhead expenses are usually excluded from the cost of fixed assets because they do not relate to a specific fixed asset. However, in some circumstances, such expenses as are specifically attributable to construction of a project or to the acquisition of a fixed asset or bringing it to its working condition, are to be included as part of the cost of the construction project or as a part of the cost of the fixed asset. All expenses, including general administrative expenditure incurred by the company till the completion of the project shall be capitalized under the head pre-operative/implementation (construction) period expenses. Further, decision regarding the apportionment of such accumulations amongst the cost of projects undertaken by the company or otherwise to write off of such expenses, will be taken at the completion/implementation of each of such projects.

h) Depreciation

Depreciation on Fixed Assets is provided on Written Down Value Method at the rates and in the manner prescribed _

under Schedule XIV of the Companies Act, 1956. Amortization of lease hold land is done over the tenure of lease.

i) Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss '' recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

j} Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements,

k) Leases

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Lease payment in respect of such leases is recognized as an expense in the Statement of Profit & Loss on a straight line basis over the lease term or extended term.

l) Borrowing Cost

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to - get ready for its intended use. All other borrowing costs are recognized in the period in which they are incurred.

m) Foreign Currency Conversions/Transactions

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of the transactions. Gains and losses arising out of subsequent fluctuations are accounted for on actual payments or realizations as the case may be. " Current assets and liabilities denominated in foreign currency as on Balance Sheet date are converted at the exchange rates prevailing on that date and Exchange differences arising out of such conversion are recognized in the Statement of Profit and Loss. Exchange differences on forward contracts are recognized in the Statement of Profit and Loss over ;-

The length of the contract. Any profit or loss arising on cancellation or renewal of forward contract is recognized as income or expense as the case may be in the Statement of Profit and Loss.

n) Employee Benefits

(a) Provisions of Employees Provident Fund & Misc. Provisions Act & Employees State Insurance Act are applicable to the Company; hence adequate provisions as required have been made. Employer''s contribution on accrual basis is charged to Statement of Profit & Loss.

(b) Leave Encashment

The Company has no Leave Encashment Scheme as a part of Retirement Benefit scheme. The Employees of the Company are entitled to en-cash their un-availed leave accrued during the year in the year itself in accordance with the Compan/s rules and regulations. The same is therefore, accounted for as and when claims are paid. -

(c) (Provision for Gratuity is made on accrual basis, calculated on actuals. No actuarial valuation has been'' obtained as the numbers of employees are not significant.

o) Taxation

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period.

a) Current Tax

Current tax expense is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at the Balance Sheet date and takes into consideration various deductions and exemptions to which the Company is entitled to as well as the reliance placed by the Company on the legal advices received by it.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the current year and reversal of timing differences for earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

C) Minimum Alternate Tax (MAT) ,

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note on "Accounting for Credit Available in respect of Minimum Alternative Tax under The Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Profit and Loss Account and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

p) Financial Derivatives and Commodity Hedging Transactions

In respect of financial derivatives and commodity hedging contracts, premium paid, losses on restatement and gains/losses on settlement are charged to the Statement of Profit & Loss, except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

q) Earnings Per Share

Basis earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of Equity Shares outstanding during the period. For the purpose of calculating diluted earnings per shares, Net Profit aftertax during the year and weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential Equity Shares. If bonus shares are issued, then the EPS of earlier year is also restated.

r) Government Grants

Government Grants related to specific fixed assets whose primary condition is that an enterprise qualifying for them should purchase, construct or otherwise acquire such assets are shown as a deduction from the gross value of the asset concerned in arriving at its book value. The grant is thus recognized in the profit and loss statement over the useful life of a depreciable asset byway of a reduced depreciation charge.

s) Segment Reporting

The accounting policies adopted for segment reporting are inconformity with the accounting policies adopted for the company. Further,

- Inter segment revenue has been accounted for based on the transaction price agreed to between segments which is primarily market based.

- Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the company as a whole and are not allocable to segments on a reasonable basis, have been included under "Un-allocated corporate expenses net of un-allocated income".

2.2. The Company has only one class of equity shares, having a par value ofRs. 10 per share. Each shareholder is eligible to one vote per share held. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.


Mar 31, 2013

A) Basis of preparation and presentation of financial statements

The financial statements are prepared on historical cost basis and on the principles of going concern. The accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles. All income and expenditure are being accounted for on accrual basis. The financial statements are presented in Indian rupees. The financial statements have been prepared in accordance with Schedule VI to the Companies Act, 1956.

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 Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle at 12 months for the purpose of current - noncurrent classification of assets and liabilities.

b) Use of Estimates

In preparing Company''s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined.

c) Revenue Recognition Export Benefits:

Export benefits and incentives, if any, are accounted for on the basis of accrual. Benefits on account of entitlement to import goods free of duty under the Duty Entitlement Pass Book under Duty Exemption Scheme" applicable upto 30.09.11 is being accounted in the year of export.

Refund of Additional Duty of Customs:

In terms of Customs notification no: 102/2007 dated 14-09-2007, the amount of additional duty of customs paid at the time of clearance of goods from Customs for home consumption is refundable if the goods are sold and CENVAT Credit of Additional Duty is denied to the purchaser and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty (Net of CENVAT Credit) paid at the time of clearance of goods is accounted for as expense. CENVAT Credit availed at the time of clearance of goods is accounted for as Balance with Revenue Authorities under Current Assets, Loans and Advances. After sales of goods if benefit of CENVAT Credit is passed on to the customers, the same is accounted for as expense and if the benefit of CENVAT Credit is not passed and the same is eligible for refund as per prevailing laws, then the same is accounted for as Special Additional Duty Refundable appearing under Short term loans & Advances.

Sales and other incomes:

Export Sales are accounted for with reference to the date of bill of lading. Domestic sales are accounted for on the basis of transfer of risks and rewards.

Commission on consignment is recognized when the material is sold by the consignee. Income from interest on deposits is recognized on time proportionate basis.

d) Inventories

Inventories are valued at lower of cost or net realizable value and all incidental expenses incurred are included in the cost of goods. All Non-Cenvatable Customs Duties are treated as part of cost and Cenvatable duties are not included forvaluation of inventories.

e) Investments

Investments that are readily realizable and are intended to be held for not more than one year from the date on which such investments are made are classified as current investments. All other investments are classified as Non-Current investments. Current investments are carried at cost or fair value, whichever is lower. Non-Current investments are carried at cost. However, provision for diminution is made to recognize a decline, other than temporary, in the value of the investments, such reduction being determined and made for each investment individually.

f) Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation and CENVAT benefit availed on capital goods.

Expenditure incurred on startup and commissioning of the project and/or substantial expansion, including the expenditure incurred on trial runs (Net of trial run receipts, if any) up to the date of commencement of commercial production are capitalized.

g) Pre-operative/implementation (construction) period expenses

Administration and other general overhead expenses are usually excluded from the cost of fixed assets because they do not relate to a specific fixed asset. However, in some circumstances, such expenses as are specifically attributable to construction of a project or to the acquisition of a fixed asset or bringing it to its working condition, are to be included as part of the cost of the construction project or as a part of the cost of the fixed asset." All expenses, including general administrative expenditure incurred by the company till the completion of the project shall be capitalized under the head pre-operative/implementation (construction) period expenses. Further, decision regarding the apportionment of such accumulations amongst the cost of projects undertaken by the company or otherwise to write off of such expenses, will betaken at the completion/implementation of each of such projects.

h) Depreciation

Depreciation on Fixed Assets is provided on Written Down Value Method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

No amortization of lease hold land is done, in view of long tenure of lease & which is generally renewed after the lease period.

i) Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

j) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

k) Leases

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Lease payment in respect of such leases is recognized as an expense in the Statement of Profit & Loss on a straight line basis over the lease term or extended term. Leasehold land is not amortized in view of long term nature of the lease.

I) Borrowing Cost

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized in the period in which they are incurred.

n) Employee Benefits

a) Provisions of Provident Fund Act & Pension Scheme are applicable to the Company; hence adequate provisions as required have been made. Employer''s contribution on accrual basis is charged to Statement of Profit & Loss.

b) Leave Encashment

The Company has no Leave Encashment Scheme as a part of Retirement Benefit scheme. The Employees of the Company are entitled to en-cash their un-availed leave accrued during the year in the year itself in accordance with the Company''s rules and regulations. The same is therefore, accounted for as and when claims are paid.

c) Provision for Gratuity is made on accrual basis, calculated on actuals. No actuarial valuation has been obtained as the numbers of employees are not significant.

o) Taxation

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit

or loss forthe period.

a) Current Tax

Current tax expense is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at the Balance Sheet date and takes into consideration various deductions and exemptions to which the Company is entitled to as well as the reliance placed by the Company on the legal advices received by it.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the current year and reversal of timing differences for earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

c) Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note on "Accounting for Credit Available in respect of Minimum Alternative Tax underThe Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Profit and Loss Account and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

p) Financial Derivatives and Commodity Hedging Transactions

In respect of financial derivatives and commodity hedging contracts, premium paid, losses on restatement and gains/losses on settlement are charged to the Statement of Profit & Loss, except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

q) Earnings Per Share

Basis earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of Equity Shares outstanding during the period. For the purpose of calculating diluted earnings per shares. Net Profit after tax during the year and weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential Equity Shares. If bonus shares are issued, then the EPS of earlieryear is also restated.

r) Government Grants

Government Grants related to specific fixed assets whose primary condition is that an enterprise qualifying for them should purchase, construct or otherwise acquire such assets are shown as a deduction from the gross value of the asset concerned in arriving at its book value. The grant is thus recognized in the profit and loss statement over the useful life of depreciable asset by way of a reduced depreciation charge.


Mar 31, 2012

A) Basis of preparation and presentation of financial statements

The financial statements are prepared on Historical Cost basis and on the principles of going concern. The accounting policies not specifically referred to otherwise, are consistent andin consonance with generally accepted accounting principles. All income and expenditure are being accounted for on accrual basis. The financial statements are presented in Indian rupees.

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 adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statement. However, the revised Schedule VI has a significant impact on the presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements 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 to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

b) Use of Estimates

In preparing Company's financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined.

c) Revenue Recognition

Export Benefits

Export benefits and incentives, if any, are accounted for on the basis of accrual. Benefits on account of entitlement to import goods free of duty under the Duty Entitlement Pass Book under Duty Exemption Scheme" applicable upto 30.09.11 is being accounted in the year of export.

Refund of Additional Duty of Customs

In terms of Customs notification no: 102/2007 dated 14-09-2007, the amount of additional duty of customs paid at the time of clearance of goods from Customs for home consumption is refundable if the goods are sold and CENVAT Credit of Additional Duty is denied to the purchaser and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty (Net of CENVAT Credit) paid at the time of clearance of goods is accounted for as expense. CENVAT Credit availed at the time of clearance of goods is accounted for as Balance with Revenue Authorities under Current Assets, Loans and Advances. After sales of goods , If benefit of CENVAT Credit is passed on to the customers, the same is accounted for as expense and if the benefit of CENVAT Credit is not passed and the same is eligible for refund as per prevailing laws, then the same is accounted for as Special Additional Duty Refundable appearing under Short term loans & Advances.

Sales and other incomes

Export Sales are accounted for with reference to the date of bill of lading. Domestic sales are accounted for on the basis of transfer of risks and rewards.

Commission on consignment is recognized when the m aterial is sold by the consignee.

Income from interest on deposits is recognized on time proportionate basis.

d) Inventories

Inventories are valued at lower of cost or net realisable value and all incidental expenses incurred are included in the cost of goods. All Non-Cenvatable Customs Duties are treated as part of cost and Cenvatable duties are not included for valuation of inventories.

e) Investments

Investments that are readily realizable and are intended to be held for not more than one year from the date on which such investments are made are classified as current investments. All other investments are classified as Non Current investments. Current investments are carried at cost or fair value, whichever is lower. Non Current investments are carried at cost. However, provision for diminution is made to recognize a decline, other than temporary, in the value of the investments, such reduction being determined and made for each investment individually.

f) Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation and CENVAT benefit availed on capital goods.

g) Depreciation

Depreciation on Fixed Assets is provided on Written Down Value Method at the rates and in the manner prescribed under

Schedule XIV of the Companies Act, 1956.

No amortization of lease hold land is done, in view of long tenure of lease & which is generally renewed after the lease period.

h) Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

I) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

j) Leases

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Lease payment in respect of such leases are recognized as an expense in the Statement of Profit & Loss on a straight line basis over the lease term or extended term.

k) Borrowing Cost

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily requires a subs tantial period of time to get ready for its intended use. All other borrowing costs are recognized in the period in which they are incurred.

L) Foreign Currency Conversions/Transactions

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of the transactions. Gains and losses arising out of subsequent fluctuations are accounted for on actual payments or realizations as the case may be. Current assets and liabilities denominated in foreign currency as on Balance Sheet date are converted at the exchange rates prevailing on that date and Exchange differences arising out of such conversion are recognised in the Statement of Profit and Loss. Exchange differences on forward contracts are recognized in the Statement of Profit and Loss over the length of the contract. Any profit or loss arising on cancellation or renewal of forward contract is recognized as income or expense as the case may be in the Statement of Profit & Loss.

m) Employee Benefits

a) Provisions of Provident Fund Act & Pension Scheme are applicable to the Company; hence adequate provisions as required have been made. Employer's contribution on accrual basis is charged to the Statement of Profit & Loss.

b) Leave Encashment

The Company has no Leave Encashment Scheme as a part of Retirement Benefit scheme. The Employees of the Company are entitled to encash their un -availed leave accrued during the year in the year itself in accordance with the Company's rules and regulations. The same is therefore, accounted for as and when claims are paid.

c) Provision for Gratuity is made on accrual basis, calculated on actuals. No actuarial valuation has been obtained as the numbers of employees are not significant.

n) Unamortized Expenses

All expenses wherein the benefits are likely to accrue over a long period of time are deferred and amortized (systematically charged) to the relevant expense head over the period in which the benefits shall accrue. Unamortized expenses pertaining to future periods are shown in Balance Sheet as Long Term Loans and advances under Non -current Assets/Current Assets as the case may be based upon the period in which it is to be expensed out.

o) Taxation

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period.

a) Current Tax

Current tax expense is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at the Balance Sheet date and takes into consideration various deductions and exemptions to which the Company is entitled to as well as the reliance placed by the Company on the legal advices received by it.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for thecurrent year and reversal of timing differences for earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

c) Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note on " Accounting for Credit Available in respect of Minimum Alternative Tax under The Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to th e extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

p) Financial Derivatives and Commodity Hedging Transactions

In respect of financial derivatives and commodity hedging contracts, premium paid, losses on restatement and gains/losses on settlement are charged to the Statement of Profit & Loss, except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

q) Earnings Per Share

Basis earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of Equity Shares outstanding during the period. For the purpose of calculating dilute d earnings per shares, Net Profit after tax during the year and weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential Equity Shares.If bonus shares are issued, then the EPS of earlier year is a lso restated.


Mar 31, 2011

1) Basis of Accounting:

The accounts of the company are prepared under historical cost convention and in accordance with the applicable Accounting Standards referred to in Section 211(3C) and other requirements of the Companies Act, 1956, except where otherwise stated. For recognition of income & expenses, accrual basis of accounting is being followed.

2) Revenue Recognition:

Export Benefits:

Export benefits and incentives, if any, are account ed for on the basis of accrual. Benefits on account of entitlement to import goods free of dutyunder the Duty Entitlement Pass Book under Duty Exemption Scheme" is being accounted in the year of export.

Refund of Additional Duty of Customs:

In terms of Customs notification no: 102/2007 dated 14-09-2007, the amount of additional duty of customs paid at the time of clearance of goods from Customs for home consumption is refundable if the goods are sold and CENVAT Credit of Additional Duty is denied to the purchaser and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty (Net of CENVAT Credit) paid at the time of clearance of goods is accounted for as expense. CENVAT Credit availed at the time of clearance of goods is accounted for as Balance with Revenue Authorities under Current Assets, Loans and Advances. After sales of goods and deposit of appropriate Sales Tax/VAT, the refund claim is filed with Customs, and thereafter CENVAT Credit as availed earlier is reversed. If benefit of CENVAT Credit is passed on to the customers, the same is accounted for as expense and if the benefit of CENVAT Credit is not passed and the same is eligible for refund as per prevailing laws, then the same is accounted for as Special Additional Duty Refundable appearing under Other Current Assets, to the extent of claims filed with the Customs Authorities.

Sales:

Export Sales are accounted for with reference to the date of bill of lading. Domestic sales are accounted for on the basis of transfer of risks and rewards.

3) Inventories:

Inventories are valued at lower of cost or net realisable value and all incidental expenses incurred are included in the cost of goods. All Non-Cenvatable Customs Duties are treated as part of cost and Cenvatable duties are not included for valuation of inventories.

4) Investments:

Long-term investments are stated at cost. Provision for diminution in the value is made if decline is other than temporary. Current investments are stated at lower of cost or fair market value.

5) Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises the Purchase price and all direct cost attributable to bring the assets to its working condition for the intended use.

6) Depreciation :

Depreciation on Fixed Assets is provided on Written Down Value Method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

7) Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

8) Foreign Exchange Transactions:

a) Transactions in foreign exchange are accounted for at the exchange rates prevailing on the date of transactions.

b) Assets and Liabilities if any related to Foreign Currency Transaction outstanding at the end of the year are translated at the year-end rates and gains/loss on account of Exchange difference on translation or restatement are recognized in the Profit & Loss Account.

9) Employee Benefits:

a) Provisions of Provident Fund Act & Pension Scheme are applicable to the Company; hence adequate provisions as required have been made. Employers contribution on accrual basis is charged to Profit & Loss account.

b) Leave Encashment

The Company has no Leave Encashment Scheme as a par t of Retirement Benefit scheme. The Employees of the Company are entitled t o encash their un-availed leave accrued during the year in the year itself in accor dance with the Companys rules and regulations. The same is therefore, accounted for as and when claims are paid.

c) Provision for Gratuity is made on accrual basis, calculated on actuals. No actuarial valuation has been obtained as the numbers of employees are not significant.

10) Borrowing Cost:

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized in the period in which they are incurred.

11)Taxation:

a) Deferred Tax Liabilities/Assets is dealt with in accordance with the Accounting Standard- 22 (AS-22). Deferred Tax Assets are accounted for only if there is virtual certainty of realization in the near future.

b) Minimum Alternate Tax (MAT) if any, is provided based upon the provisions of Section 115JB of the Income Tax Act, 1961 and MAT Credit Ent itlement is considered if sufficient certainty as to future taxable income is there.

12) Financial Derivatives and Commodity Hedging Transactions

In respect of financial derivatives and commodity h edging contracts, premium paid, losses on restatement and gains/losses on settlement are charged to the Profit & Loss Account, except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.


Mar 31, 2010

1) Basis of Accounting:

The accounts of the company are prepared under historical cost convention and in accordance with the applicable Accounting Standards referred to in Section 211(3C) and other requirements of the Companies Act, 1956, except where otherwise stated. For recognition of income & expenses, accrual basis of accounting is being followed.

2) Revenue Recognition:

Export Benefits:

Export benefits and incentives, if any, are accounted for on the basis of accrual. Benefits on account of entitlement to import goods free of duty under the Duty Entitlement Pass Book under Duty Exemption Scheme' is being accounted in the year of export.

Refund of Additional Duty of Customs:

In terms of Customs notification no: 102/2007 dated 14-09-2007, the amount of additional duty of customs paid at the time of clearance of goods from Customs for home consumption is refundable if the goods are sold and CENVAT Credit of Additional Duty is denied to the purchaser and appropriate Sales Tax/VAT thereon is deposited. Total Customs Duty (Net of CENVAT Credit) paid at the time of clearance of goods is accounted for as expense. CENVAT Credit availed at the time of clearance of goods is accounted for as Balance with Revenue Authorities under Current Assets, Loans and Advances. On Sales of goods, CENVAT Credit as availed earlier is reversed. If benefit of CENVAT Credit is passed on to the customers, the same is accounted for as expense and if the benefit of CENVAT Credit is not passed and the same is eligible for refund as per prevailing laws, then the same is accounted for as Special Additional Duty Refundable appearing under Other Current Assets.

Sales:

Export Sales are accounted for with reference to the date of bill of lading. Domestic sales are accounted for on the basis of transfer of risks and rewards.

3) Inventories:

Inventories are valued at lower of cost or net realisable value and all incidental expenses incurred are included in the cost of goods. All Non-Cenvatable Customs Duties are treated as part of cost and Cenavatable duties are not included for valuation of inventories.

4) Investments:

Long-term investments are stated at cost. Provision for diminution in the value is made if decline is other than temporary. Current investments are stated at lower of cost or fair market value.

5) Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises the Purchase price and all direct cost attributable to bring the assets to its working condition for the intended use.

6) Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value Method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

7) Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

8) Foreign Exchange Transactions:

a) Assets and Liabilities if any related to Foreign Currency Transaction outstanding at the end of the year are translated at the year-end rates.

b) Any Income or Expenses on account of Exchange difference on translation or restatement are recognized in the Profit & Loss Account.

c) Transactions in foreign exchange are accounted for at the exchange rates prevailing on the date of transactions.

9) Employee Benefits:

a) Provisions of Provident Fund Act & Pension Scheme are applicable to the Company; hence adequate provisions as required have been made. Employer's contribution on accrual basis is charged to Profit & Loss account.

b) Leave Encashment

The Company has no Leave Encashment Scheme as a part of Retirement Benefit scheme. The Employees of the Company are entitled to encash their un-availed leave accrued during the year in the year itself in accordance with the Company's rules and regulations. The same is therefore, accounted for as and when claims are paid.

c) Provision for Gratuity is made on accrual basis, calculated on actuals. No actuarial valuation has been obtained as the numbers of employees are not significant.

10)Borrowing Cost:

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized in the period in which they are incurred.

11)Taxation:

a) Deferred Tax Liabilities/Assets is dealt with in accordance with the Accounting Standard- 22 (AS-22). Deferred Tax Assets are accounted for only if there is virtual certainty of realization in the near future.

b) Minimum Alternate Tax (MAT) is provided based upon the provisions of Section 115JB of the Income Tax Act, 1961 and MAT Credit Entitlement is considered if sufficient certainty as to future taxable income is there.

12)Financial Derivatives and Commodity Hedging Transactions

In respect of financial derivatives and commodity hedging contracts, premium paid, losses on restatement and gains/losses on settlement are charged to the Profit & Loss Account, except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.


Mar 31, 2009

1) Basis of Accounting:

The accounts of the company are prepared under historical cost convention and in accordance with the applicable Accounting Standards referred to in Section 211 (3C) and other requirements of the Companies Act, 1956, except where otherwise stated. For recognition of income & expenses, accrual basis of accounting is being followed.

2) Revenue Recognition:

Export Benefits:

Export benefits and incentives, if any, are accounted for on the basis of accrual. Benefits on account of entitlement to import goods free of duty under the Duty Entitlement Pass Book under Duty Exemption Scheme' is being accounted in the year of export.

Refund of Additional Duty of Customs:

In terms of Customs notification no: 102/2007 dated 14-09-2007, the amount of additional duty of customs paid at the time of clearance of goods from Customs for home consumption is refundable if the goods are sold and CENVAT Credit of Additional Duty is denied to the purchaser and appropriate Sales Tax thereon is deposited. Total Customs Duty paid at the time of clearance of goods is accounted for on payment basis and on subsequent sale of the goods such customs duty account is credited and refundable account is debited.

Sales:

Export Sales are accounted for with reference to the date of bill of lading. Domestic sales are accounted for on the basis of transfer of risks and rewards.

3) Inventories:

Inventories are valued at lower cost or net realisable value, whichever is less and all incidental expenses incurred are included in the cost of goods.

4) Investments:

Long-term investments are stated at cost. Provision for diminution in the value is made if decline is other than temporary. Current investments are stated at lower of cost or fair market value.

5) Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises the Purchase price and all direct cost attributable to bring the assets to its working condition for the intended use.

6) Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value Method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

7) Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

8) Foreign Exchange Transactions:

a) Assets and Liabilities if any related to Foreign Currency Transaction outstanding at the end of the year are translated at the year-end rates

b) Any Income or Expenses on account of Exchange difference on translation or restatement are recognized in the Profit & Loss Account.

9) Employee Benefits:

a) Provisions of Provident Fund Act & Pension Scheme are not applicable to the Company; hence no provision was required to be made.

b) Leave Encashment

The Company has no Leave Encashment Scheme as a part of Retirement Benefit scheme. The Employees of the Company are entitled to encash their un-availed leave accrued during the year in the year itself in accordance with the Company's rules and regulations. The same is therefore, accounted for as and when claims are paid.

c) Provision for Gratuity is made on accrual basis, calculated on actuals. No actuarial valuation has been obtained as the numbers of employees are few.

10)Borrowing Cost:

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized in the period in which they are incurred.

11)Taxation:

a) Deferred Tax Liabilities/Assets is dealt with in accordance with the Accounting Standard- 22 (AS-22). Deferred Tax Assets are accounted for only if there is virtual certainty of realization in the near future.

b) Minimum Alternate Tax (MAT) is provided based upon the provisions of Section 115JB of the Income Tax Act, 19G1 and MAT Credit Entitlement is considered if sufficient certainty as to future taxable income is there.

12)Financial Derivatives and Commodity Hedging Transactions

In respect of financial derivatives and commodity hedging contracts, premium paid, losses on restatement and gains/losses on settlement are charged to the Profit & Loss Account, except in cases where they relate to acquisition of fixed assets, in which ease they are adjusted to the carrying cost of such assets.

 
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