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Union Budget 2017-18
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Accounting Policies of Balmer Lawrie & Company Ltd. Company

Mar 31, 2016

1. Basis of Preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the
historical cost convention on accrual basis complying in all material aspects with the accounting standards notified under
Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working
condition.

b) Fixed Assets manufactured / constructed in-house are valued at actual cost of raw materials, conversion cost and other related
costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre- production expenses is treated as Capital
Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of
transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and
are shown separately in the financial statements. Loss determined, if any, is recognized in the Statement of profit and loss.

f) Depreciation on tangible assets is provided on pro-rata basis on the straight line method over the estimated useful lives of
the asset or over the lives of the assets prescribed under Schedule II of the Companies Act 2013 whichever is lower. Based on
review, the lower estimated useful lives of the following assets are found justifiable compared to the lives mentioned in
Schedule II of the Companies Act 2013:

i Mobile Phones and Portable Personal Computers over two years

ii Items given to employees under furniture equipment scheme over five years

iii Electrical items like air conditioners, fans, refrigerators, etc over 6.67 years

iv Sofa set, Woollen Carpets, Photocopier, Fax machines, Motor Cars & Machine Spares whose use is irregular over five years

In case of Plant & Machinery, other than Continuous Process, based on technical review by a Chartered Engineer, useful life is
estimated at 25 years.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution
in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the
different types of inventories is as under -

a) Raw materials & trading goods, stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of
completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs. 10000 which are charged
off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following :

a) In case of sale of goods:

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty
exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax /
VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding
the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares on establishment of the Company''s right to receive.

6. Employee Benefits

a) Company''s contributions to Provident Fund and Superannuation fund are charged to Statement of Profit and Loss.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards are charged to Statement of Profit & Loss on
the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period''s
financial statement are separately disclosed in the current statement of profit & loss. However, differences in actual
income/expenditure arising out of over or under estimation in prior period are not treated as prior period income/ expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary
activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the
respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are
translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at
cost.

d) In case of foreign branch, translation of the financial statement is made on the following basis.

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are
translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current

Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement
of Profit & Loss except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are
amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the
Statement of Profit & Loss.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or
cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On
expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general
reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against
under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial
period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are
recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying
amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is
recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the
net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present
value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using
the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India. The Company
has identified business segment as its primary reporting segment.

15. Intangible Assets

a) Expenditure incurred for acquiring intangible assets like software of Rs. 500000 and above and license to use software per
item of Rs. 25000 and above, from which economic benefits will flow over a period of time, is capitalized and amortized over the
estimated useful life of the asset or five years, whichever is earlier, from the time the intangible asset starts providing the
economic benefit.

b) Goodwill and Brand Value arising on acquisition are recognized as an asset and are amortised on a straight line basis over 5
years and 10 years respectively.

c) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation in respect of which a reliable estimate can be made.

b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is
confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 100000 in each case.

d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into
demand.


Mar 31, 2015

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre- production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined, if any, is recognized in the profit and loss statement.

f) Depreciation on tangible assets is provided on pro-rata basis on the straight line method over the estimated useful lives of the asset or over the lives of the assets prescribed under Schedule II of the Companies Act 2013 whichever is lower. Based on review, the lower estimated useful lives of the following assets are found justifiable compared to the lives mentioned in Schedule II of the Companies Act 2013:

i. Mobile Phones and Portable Personal Computers over two years

ii. Items given to employees under furniture equipment scheme over five years

iii. Electrical items like air conditioners, fans, refrigerators, etc over 6.67 years

iv. Sofa set, Woollen Carpets, Photocopier, Fax machines, Motor Cars & Machine Spares whose use is irregular over five years

In case of Plant & Machinery other than Continuous Process, based on technical review by a Chartered Engineer, life is assumed to be of 25 years.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods, stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods :

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares on establishment of the Company's right to receive.

6. Employee Benefits

a) Company's contributions to Provident Fund and Superannuation fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period's financial statement are separately disclosed in the current statement of profit & loss . However, differences in actual income/ expenditure arising out of over or under estimation in prior period are not treated as prior period income/expenditure.

b) Income/Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost .

d) In case of foreign branch, translation of the financial statement is made on the following basis

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use . In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India .The Company has identified business segment as its primary reporting segment.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25000 and above, from which economic benefits will flow over a period of time, is capitalized and amortized over the estimated useful life of the asset or five years, whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) Goodwill and Brand Value arising on acquisition are recognized as an asset and are amortised on a straight line basis over 5 years and 10 years respectively.

(c) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.




Mar 31, 2014

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (Companies (Accounting Standard) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 1956.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre- production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined, if any, is recognized in the profit and loss statement.

f) Depreciation is provided following the straight line method. Rates of Depreciation are in accordance with the provisions of the Companies Act, 1956, as prevailing from time to time, except for items covered under paragraphs (g) and (h) below.

g) The company reviews the depreciation policies followed for various items of assets, their useful life and circumstances prevailing in the business so as to make a more

appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any significant variation is noticed in the pattern of economic benefits embodied in the assets. Based on technical review, (i) certain items of Electrical Installations and Equipment, Furniture and Fittings and Typewriter, Accounting Machine and Office Equipment are being depreciated at the rate of 15%, 20% and 20% per annum respectively; (ii) Mobile Phones at the rate of 50% per annum; (iii) Motor Cars at the rate of 20% per annum; (iv) Portable Personal Computers at the rate of 50% per annum; (v) items given to employees under the furniture equipment scheme, at the rate of 20% per annum; and (vi) assets whose actual cost does not exceed Rs. 5000, at the rate of 100% in the year of addition of the asset, irrespective of the date of addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of five years (by charging depreciation @ 20% p.a. on straight line basis) or the residual life of the Principal asset, whichever is lower.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs 10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods:

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares on establishment of the Company''s right to receive.

6. Employee Benefits

a) Company''s contributions to Provident Fund and Superannuation fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period''s financial statement are separately disclosed in the current statement of profit & loss. However, differences in actual income/expenditure arising out of over or under estimation in prior period are not treated as prior period income/ expenditure.

b) Income / Expenditure upto Rs 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost.

d) In case of foreign branch, translation of the financial statement is made on the following basis

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India. The Company has identified

business segment as its primary reporting segment.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs 500000 and above and license to use software per item of Rs 25000 and above, from which economic benefits will flow over a period of time, is capitalized and amortized over the estimated useful life of the asset or five years , whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) Goodwill and Brand Value arising on acquisition are recognized as an asset and are amortised on a straight line basis over 5 years and 10 years respectively.

(c) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.

B Rights, Preferences and Restrictions attached to Shares

The Company has one class of equity shares having a par value ofRs10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. 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.

D There are no other individual shareholders holding 5% or more in the issued share capital of the company.

E The Board of Directors had approved the issue of additional 1,22,14,560 bonus equity shares of Rs.10 each at its meeting held on March 26, 2013, which have been allotted on May 25, 2013, after obtaining the assent of the members.


Mar 31, 2013

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (Companies (Accounting Standard) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 1956.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortised over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined , if any, is recognised in the profit and loss statement.

f) Depreciation is provided following the straight line method. Rates of Depreciation are in accordance with the provisions of the Companies Act, 1956, as prevailing from time to time, except for items covered under paragraphs (g) and (h) below.

g) The company reviews the depreciation policies followed for various items of assets, their useful life and circumstances prevailing in the business so as to make a more appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any significant variation is noticed in the pattern of economic benefits embodied in the assets. Based on technical review, (i) certain items of Electrical Installations and Equipment , Furniture and Fittings and Typewriter, Accounting Machine and Office Equipment are being depreciated at the rate of 15%, 20% and 20% per annum respectively;

(ii) Mobile Phones at the rate of 50% per annum;

(iii) Motor Cars at the rate of 20% per annum; (iv) Portable Personal Computers at the rate of 50% per annum; (v) items given to employees under the furniture equipment scheme, at the rate of 25% per annum for Computers and 15% per annum for other Items; and (vi) assets whose actual cost does not exceed Rs. 5000, at the rate of 100% in the year of addition of the asset, irrespective of the date of addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of five years (by charging depreciation @ 20% p.a. on straight line basis) or the residual life of the Principal asset, whichever is lower.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under:

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods :

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest - on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from - on establishment of the investments Company''s right to receive. in shares

6. Employee Benefits

a) Company''s contributions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards and Leave Travel Assistance are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) All prior period items which arise in the current period as a result of error or omission in the preparation of prior period''s financial statement are separately disclosed in the current statement of profit & loss. However, differences in actual income/ expenditure arising out of over or under estimation in prior period are not treated as prior period income/ expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) All extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost except that the exchange differences relating to liabilities for acquisition of fixed assets are adjusted in the cost of the asset.

d) In case of foreign branch, translation of the financial statement is made on the following basis:

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchang rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/ subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organization of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets, which take substantial period of time to get ready for its intended use, are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use . In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India .The Company has identified business segment as its primary reporting segment with secondary information reported geographically.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25000 and above, from which economic benefits will flow over a period of time, is amortised over the estimated useful life of the asset or five years , whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.


Mar 31, 2012

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notifi ed under Section 211(3C) (Companies (Accounting Standard) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 1956.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined, if any, is recognized in the profit and loss statement.

f) Depreciation is provided following the straight line method. Rates of Depreciation are in accordance with the provisions of the Companies Act, 1956, as prevailing from time to time, except for items covered under paragraphs (g) and (h) below.

g) The company reviews the depreciation policies followed for various items of assets, their useful life and circumstances prevailing in the business so as to make a more appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any signifi cant variation is noticed in the pattern of economic benefits embodied in the assets. Based on technical review, (i) certain items of Electrical Installations and Equipment , Furniture and Fittings and Typewriter. Accounting Machine and Office Equipment are being depreciated @ of 15%, 20% and 20% per annum respectively; (ii) Mobile Phones @ of 50% per annum; (iii) Motor Cars @ of 20% per annum (iv) Portable Personal Computers @ of 50% per annum; (v) items given to employees under the furniture equipment scheme, @ of 25% per annum for Computers and

15% per annum for Other Items; and (vi) assets whose actual cost does not exceed Rs.5000, at the rate of 100% in the year of addition of the asset, irrespective of the date of addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of fi ve years (by charging depreciation @20% p. a on straight line basis) or the residual life of the Principal asset, whichever is lower.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods :

When the property and all signifi cant risks and rewards of ownership are transferred to the buyer and no signifi cant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no signifi cant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest - on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares- on establishment of the Company's right to receive.

6. Employee Benefits

a) Company's contributions to Provident Fund and Superannuation fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards and Leave Travel Assistance are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period's financial statement are separately disclosed in the current statement of profit & loss . However, differences in actual income/expenditure arising out of over or under estimation in prior period are not treated as prior period income / expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specifi ed below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost.

d) In case of foreign branch, translation of the financial statement is made on the following basis -

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rale on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fi xed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash fl ows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India. The Company has identifi ed business segment as its primary reporting segment.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25000 and above, from which economic benefits will fl ow over a period of time, is capitalized and amortized over the estimated useful life of the asset or fi ve years, whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outfl ow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confi rmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs.1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.


Mar 31, 2010

1. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realisable value and are shown separately in the financial statements. Loss determined, if any, is recognised in the profit and loss statement.

f) The company reviews the depreciation policies followed for various items of assets, its useful life and circumstances prevailing in the business so as to make a more appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any significant variation is noticed in the pattern of economic benefits embodied in the assets. Based on the above technical review, certain items of Electrical Installations and Equipment , Furniture and Fittings and Typewriter, Accounting Machine and Office Equipment are being depreciated at the rate of 15%, 20% and 25% respectively on straight line basis.

g) Depreciation is provided in accordance with the provisions of the Companies Act, 1956, prevailing from time to time at the straight line method except (i) for mobile phones at the rate of 50% per annum ,(ii) for items given to employees under the furniture equipment scheme which has been provided at the rate of 25% per annum for computers and 15% per annum for other items and (iii) for assets whose actual cost does not exceed Rs. 5000, which has been depreciated fully in the year of addition of the asset, irrespective of the date of such addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of five years (by charging depreciation @ 20% p.a. on straight line basis) or the residual life of the Principal asset, whichever is lower.

2. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

3. Valuation of Inventories

i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written - off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

4. Recognition of Revenue

Revenue is recognised in compliance with the following :

a) In case of sale of goods :

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from on establishment of the investments in shares Companys right to receive.

5. Employee Benefits

a) Companys contributions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment , Long Service Awards and Leave Travel Assistance are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

6. Payments made under Voluntary Retirement / Separation Schemes

a) Compensation comprising of Ex - gratia , Notice-Pay and Rehabilitation Grant payable to employees separating under Voluntary Retirement / Separation Scheme till 31 March , 2005 is treated as Deferred Revenue Expenditure and is written off as per following instalments :-

(i) Paid upto December, 1999 - Five equal yearly instalments ;

(ii) Paid during January, 2000 - Sixty equal monthly to March, 2005 instalments.

b) Compensation under Voluntary Retirement/ Separation Scheme with effect from

1st April, 2005 - Charged off in the same financial year .

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior periods financial statement are separately disclosed in the current statement of profit & loss . However, differences in actual income/expenditure arising out of over or under estimation in prior period are not treated as prior period income/expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Current assets ( other than inventories) and current liabilities are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Long Term Investment, Inventories and Fixed Assets are carried at cost .

d) In case of foreign branch, translation of the financial statement is made on the following basis -

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognised in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/ subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition , construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets . Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India .The Company has identified business segment as its primary reporting segment .

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25,000 and above, from which economic benefits will flow over a period of time, is capitalised and amortised over the estimated useful life of the asset or five years , whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.

 
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