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Accounting Policies of Bil Energy Systems Ltd. Company

Mar 31, 2015

A BASIS OF PREPARATION OF FINANCIAL STATEMENTS : The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

B USE OF ESTIMATES : The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liability on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognised in the period in which the same identified/materialised.

C FIXED ASSETS :

(a) Fixed Assets including Leasehold Land are recorded at cost. The Company capitalises all costs relating to Fixed Assets acquisition, installation and other financing cost till commencement of commercial production. The company has stated its fixed assets net of CENVAT / Value Added Tax.

(b) Capital Work in Progress is stated at the amount expended upto the date of Balance Sheet including pre operative expenditures, which is subsequently allocated to the relevant fixed assets on a pro-rata basis depending on the prime cost of the assets for new units.

D BORROWING COSTS : Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets till the asset is ready for its intended use. All other borrowing costs are charged to Revenue.

E DEPRECIATION / AMORTISATION :

(a) Depreciation on Fixed Assets is provided on Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the companies Act, 2013 except in respect of the following assets, where useful life is different than those prescribed in Schedule II.

(b) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata upto the date of deletion. Depreciation in the case of uninstalled Fixed Assets is not provided.

(c) Cost of Leasehold Land is amortized over the periods of Lease.

(d) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, is provided @ 100% p.a.

F INVENTORIES :

(a) Inventories are valued at lower of cost or net realisable value.

(b) Excise duty is added in closing inventory of finished goods.

(c) Cost includes the Purchase Cost, Customs Duty, Transportation and Clearing, Forwarding Charges and Exchange Rate Fluctuation arising on account of imports, if any, and in case of Work in Progress and Finished Goods, includes labour and other factory overheads absorbed at normal capacity level.

(d) Waste & Scrap is valued at Net Realisable Value.

(e) Packing materials and Stores & Spares purchased are written off as expense in the year of purchase.

(f) NRV is the estimated selling price in the ordinary course of business.

G FOREIGN EXCHANGE TRANSACTIONS : Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date. However, in the cases where the Company had used foreign currency forward contract to hedge the risk associated with foreign currency fluctuations, the liabilities / assets as at the Balance Sheet are reinstated at the applicable forward contract rates.

H EMPLOYEE RETIREMENT BENEFITS :

(a) Provident Fund is a defined contribution scheme and the Company's contribution is charged to Profit & Loss account for the year to which the same relates.

(b) Retirement benefits in the form of Gratuity and Leave encashment which are defined benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognised in Profit and Loss account of the year.

(c) Short Term Employee Benefits are recognized as an expense in the Profit and Loss account of the year in which the related service is rendered.

I TAXATION

(a) Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

(b) Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognised deferred tax assets, to the extent they become reasonably certain or virtually certain of realisation, as the case may be.

J IMPAIRMENT OF ASSETS : An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The recoverable amount is greater of the asset's net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuous use of the asset to their present value. There is no impairment Profit/Loss for the year ending 31st March, 2015

K ACCOUNTING OF CENVAT TRANSACTIONS : CENVAT benefit is accounted for on accrual basis on purchase of material and assets and incurring of expenses and appropriated against payment of Excise Duty on Clearance of Finished Goods.

L EARNINGS PER SHARE : The earning considered in ascertaining the Company's EPS comprises the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is weighted average number of shares outstanding during the year. The number of shares used in computing diluted EPS comprises of weighted average shares considered for deriving basic EPS and also the weighted average number of Equity shares which could have been issued on the conversion of all dilutive potential equity shares.

M RECOGNITION OF INCOME AND EXPENDITURE :

(a) Incomes & Expenditures are generally accounted on Accrual as they are earned or incurred.

(b) Sales are recognised when significant risks and rewards of ownership of the goods have passed to buyer which generally coincides with delivery. Sales are net of sales return, discount, rebates, and also Excise Duty and Service Tax, Vat, Sales Tax etc.

(c) Imports are recognised on presentation of Bill of Entry at the Customs or on retiring the Import Documents whichever is earlier.

(d) Dividend income is recognized when the right to receive the dividend is unconditional.

N INVESTMENTS : Investments intended to be held for less than a year from the date of acquisition are classified as short term and are stated at cost of acquisition.

O TAX ON DIVIDEND : Tax on distributable Profits by way of Interim and Final Dividend is accounted for in the year to which the declared dividends relate. P CONTINGENT LIABILITIES : Contingent Liabilities as defined in AS-29 "Provisions, Contingent Liabilities" are disclosed by way of notes to the accounts. Disclosure is not made if possibility of outflow of resources embodying economic benefit is remote.


Mar 31, 2014

A Basis of Preparation of Financial Statements : The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

B Use of Estimates: The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liability on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognised in the period in which the same identified/materialised.

C Fixed Assets

(a) Fixed Assets including Leasehold Land are recorded at cost. The Company capitalises all costs relating to Fixed Assets acquisition, installation and other fnancing cost till commencement of commercial production. The company has stated its fixed assets net of CENVAT / Value Added Tax.

(b) Capital Work in Progress is stated at the amount expended upto the date of Balance Sheet including pre operative expenditures, which is subsequently allocated to the relevant fixed assets on a pro-rata basis depending on the prime cost of the assets for new units.

D Borrowing Costs : Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets till the asset is ready for its intended use. All other borrowing costs are charged to Revenue.

E Depreciation / Amortisation

(a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata up to the date of deletion. Depreciation in the case of uninstalled Fixed Assets is not provided.

(b) Depreciation on Fixed Assets except to the extent stated in (a) above, is provided on Straight Line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

(c) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, is provided @ 100% p.a.

F Inventories

(a) Inventories are valued at lower of cost or net realisable value.

(b) Excise duty is added in closing inventory of fnished goods.

(c) Cost includes the Purchase Cost, Customs Duty, Transportation and Clearing, Forwarding Charges and Exchange Rate Fluctuation arising on account of imports, if any, and in case of Work in Progress and Finished Goods, includes labour and other factory overheads absorbed at normal capacity level.

(d) Waste & Scrap is valued at Net Realisable Value.

(e) Packing materials and Stores & Spares purchased are written off as expense in the year of purchase.

(f) NRV is the estimated selling price in the ordinary course of business.

G Foreign Exchange Transactions : Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date. However, in the cases where the Company had used foreign currency forward contract to hedge the risk associated with foreign currency fuctuations, the liabilities / assets as at the Balance Sheet are reinstated at the applicable forward contract rates.

H Employee Retirement benefits

(a) Provident Fund is a Defined contribution scheme and the Company''s contribution is charged to profit & Loss account for the year to which the same relates.

(b) Retirement benefits in the form of Gratuity and Leave encashment which are Defined benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognised in profit and Loss account of the year.

(c) Short Term Employee benefits are recognized as an expense in the profit and Loss account of the year in which the related service is rendered.

I Taxation

(a) Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

(b) Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognised deferred tax assets, to the extent they become reasonably certain or virtually certain of realisation, as the case may be.

J Impairment of Assets : An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The recoverable amount is greater of the asset''s net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuous use of the asset to their present value. There is no impairment profit/Loss for the year ending 31st March, 2014

K Accounting of Cenvat Transactions : CENVAT benefit is accounted for on accrual basis on purchase of material and assets and incurring of expenses and appropriated against payment of Excise Duty on Clearance of Finished Goods.

L Earnings Per Share : The earning considered in ascertaining the Company''s EPS comprises the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is weighted average number of shares outstanding during the year. The number of shares used in computing diluted EPS comprises of weighted average shares considered for deriving basic EPS and also the weighted average number of Equity shares which could have been issued on the conversion of all dilutive potential equity shares.

M Recognition of Income and Expenditure

(a) Incomes & Expenditures are generally accounted on Accrual as they are earned or incurred.

(b) Sales are recognised when significant risks and rewards of ownership of the goods have passed to buyer which generally coincides with delivery. Sales are net of sales return, discount, rebates etc. if any return and also Excise Duty and Service Tax, Vat, Sales Tax.

(c) Imports are recognised on presentation of Bill of Entry at the Customs or on retiring the Import Documents whichever is earlier.

(d) Dividend income is recognized when the right to receive the dividend is unconditional.

N Investments : Investments intended to be held for less than a year from the date of acquisition are classified as short term and are stated at cost of acquisition. During the year provision is made for diminution in value Rs. 196.81 Lacs

O Tax on Dividend : Tax on distributable profits by way of Interim and Final Dividend is accounted for in the year to which the declared dividends relate. P Contingent Liabilities : Contingent Liabilities as Defined in AS-29 "Provisions, Contingent Liabilities" are disclosed by way of notes to the accounts. Disclosure is not made if possibility of outflow of resources embodying economic benefit is remote.


Mar 31, 2013

A Basis of Preparation of Financial Statements BILPOWER LIM

The fnancial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

B Use of Estimates

The preparation of fnancial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liability on the date of the fnancial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognised in the period in which the same identifed/materialised.

C Fixed Assets

(a) Fixed Assets including Leasehold Land are recorded at cost. The Company capitalises all costs relating to Fixed Assets acquisition, installation and other fnancing cost till commencement of commercial production. The company has stated its fxed assets net of CENVAT / Value Added Tax.

(b) Capital Work in Progress is stated at the amount expended upto the date of Balance Sheet including pre operative expenditures, which is subsequently allocated to the relevant fxed assets on a pro-rata basis depending on the prime cost of the assets for new units.

D Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets till the asset is ready for its intended use. All other borrowing costs are charged to Revenue.

E Depreciation / Amortisation

(a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata up to the date of deletion. Depreciation in the case of uninstalled Fixed Assets is not provided.

(b) Depreciation on Fixed Assets except to the extent stated in (a) above, is provided on Straight Line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

(c) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, is provided @ 100% p.a.

F Inventories

(a) Inventories are valued at lower of cost or net realisable value.

(b) Excise duty is added in closing inventory of fnished goods.

(c) Cost includes the Purchase Cost, Customs Duty, Transportation and Clearing, Forwarding Charges and Exchange Rate Fluctuation arising on account of imports, if any, and in case of Work in Progress and Finished Goods, includes labour and other factory overheads absorbed at normal capacity level.

(d) Waste & Scrap is valued at Net Realisable Value.

(e) Packing materials and Stores & Spares purchased are written off as expense in the year of purchase.

(f) NRV is the estimated selling price in the ordinary course of business.

G Foreign Exchange Transactions

Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date. However, in the cases where the Company had used foreign currency forward contract to hedge the risk associated with foreign currency fuctuations, the liabilities / assets as at the Balance Sheet are reinstated at the applicable forward contract rates.

h Employee Retirement Benefts

(a) Provident Fund is a defned contribution scheme and the Company''s contribution is charged to Proft & Loss account for the year to which the same relates.

(b) Retirement benefts in the form of Gratuity and Leave encashment which are defned beneft plans are determined and accrued on the basis of an independent actuarial valuation and are recognised in Proft and Loss account of the year.

(c) Short Term Employee Benefts are recognized as an expense in the Proft and Loss account of the year in which the related service is rendered.

I Taxation

(a) Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

(b) Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognised deferred tax assets, to the extent they become reasonably certain or virtually certain of realisation, as the case may be.

J Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The recoverable amount is greater of the asset''s net selling price and value in use, determined by discounting the estimated future cash fows expected from the continuous use of the asset to their present value. There is no impairment Proft/Loss for the year ending 31st March, 2013

K Accounting of Cenvat Transactions

CENVAT beneft is accounted for on accrual basis on purchase of material and assets and incurring of expenses and appropriated against payment of Excise Duty on Clearance of Finished Goods.

L Earnings Per Share

The earning considered in ascertaining the Company''s EPS comprises the net proft after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is weighted average number of shares outstanding during the year. The number of shares used in computing diluted EPS comprises of weighted average shares considered for deriving basic EPS and also the weighted average number of Equity shares which could have been issued on the conversion of all dilutive potential equity shares.

M Recognition of Income And Expenditure

(a) Incomes & Expenditures are generally accounted on Accrual as they are earned or incurred.

(b) Sales are recognised when signifcant risks and rewards of ownership of the goods have passed to buyer which generally coincides with delivery. Sales are net of sales return, discount, rebates etc. if any return and also Excise Duty and Service Tax, Vat, Sales Tax.

(c) Imports are recognised on presentation of Bill of Entry at the Customs or on retiring the Import Documents whichever is earlier.

(d) Dividend income is recognized when the right to receive the dividend is unconditional.

N Investments

Investments intended to be held for more than a year from the date of acquisition are classifed as long term and are stated at cost of acquisition. No

POWER LIMITED provision is made for diminution in value, if the decline is only temporary.

O Tax on Dividend

Tax on distributable Profts by way of Interim and Final Dividend is accounted for in the year to which the declared dividends relate.

P Contingent Liabilities

Contingent Liabilities as defned in AS-29 "Provisions, Contingent Liabilities" are disclosed by way of notes to the accounts. Disclosure is not made if possibility of outfow of resources embodying economic beneft is remote.


Mar 31, 2012

A) Basis of preparation of Financial Statements

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, I956 and the applicable accounting standards issued by the ICAI.

B) Use of Estimates

The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liability on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognized in the period in which the same are identified materialized.

C) Fixed Assets

(a) Fixed Assets including Leasehold Land are recorded at cost. The Company capitalizes all costs relating to Fixed Assets acquisition, installation and other financing cost till commencement of commercial production. The company has stated its fixed assets net of CENVAT / Value Added Tax.

(b) Capital Work in Progress is stated at the amount expended upto the date of Balance Sheet including pre operative expenditures, which is subsequently allocated to the relevant fixed assets on a pro-rata basis depending on the prime cost of the assets for new units.

D) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such assets till the asset is ready for its intended use. All other borrowing costs are charged to Revenue.

E) Depreciation / Amortization

(a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata up to the date of deletion. Depreciation in the case of uninstalled Fixed Assets is not provided.

(b) Depreciation on Fixed Assets except to the extent stated in (a) above, is provided on Straight Line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

(c) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, is provided @ I00% p.a.

F) Inventories

(a) Inventories are valued at lower of cost or net realizable value.

(b) Excise duty is added in closing inventory of finished goods.

(c) Cost includes the Purchase Cost, Customs Duty, Transportation and Clearing, Forwarding Charges and Exchange Rate Fluctuation arising on account of imports, if any and in case of Work in Progress and Finished Goods, includes labor and other factory overheads absorbed at normal capacity level.

(d) Waste & Scrap is valued at Net Realizable Value.

(e) Packing materials and Stores & Spares purchased are written off as expense in the year of purchase.

(f) NRV is the estimated selling price in the ordinary course of business.

G) Foreign Exchange Transactions

Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date. However, in the cases where the Company had used foreign currency forward contract to hedge the risk associated with foreign currency fluctuations, the liabilities / assets as at the Balance Sheet are reinstated at the applicable forward contract rates.

H) Employee Retirement Benefits

(a) Provident Fund is a defined contribution scheme and the Company's contribution is charged to Profit & Loss account for the year to which the same relates.

NOTES TO FINANCIAL STATEMENT

(b) Retirement benefits in the form of Gratuity and Leave encashment which are defined benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognized in Profit and Loss account of the year.

(c) Short Term Employee Benefits are recognized as an expense in the Profit and Loss account of the year in which the related service is rendered.

I) Taxation

(a) Tax expenses for an year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, I96I and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

(b) Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

J) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The recoverable amount is greater of the asset's net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuous use of the asset to their present value. There is no impairment Profit/Loss for the year ending 31st March, 2012

K) Accounting of Convert Transactions

CENVAT benefit is accounted for on accrual basis on purchase of material and assets and incurring of expenses and appropriated against payment of Excise Duty on Clearance of Finished Goods.

L) Earnings Per Share

The earning considered in ascertaining the Company's EPS comprises the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is weighted average number of shares outstanding during the year. The number of shares used in computing diluted EPS comprises of weighted average shares considered for deriving basic EPS and also the weighted average number of Equity shares which could have been issued on the conversion of all dilutive potential equity shares.

M) Recognition of Income and Expenditure

(a) Incomes & Expenditures are generally accounted on Accrual as they are earned or incurred.

(b) Sales are recognized when significant risks and rewards of ownership of the goods have passed to buyer which generally coincides with delivery. Export sales are accounted for on the basis of date of Bill of Lading. Sales are net of sales return, discount, rebates etc. if any return and also Excise Duty and Service Tax, Vat, Sales Tax.

(c) Export benefits (by way of entitlements for concessional custom duty) are accounted while availing the same.

(d) Imports are recognized on presentation of Bill of Entry at the Customs or on retiring the Import Documents whichever is earlier.

(e) Dividend income is recognized when the right to receive the dividend is unconditional.

N) Investments

Investments intended to be held for more than a year from the date of acquisition are classified as long term and are stated at cost of acquisition. No provision is made for diminution in value, if the decline is only temporary.

O) Tax on Dividend

Tax on distributable Profits by way of Interim and Final Dividend is accounted for in the year to which the declared dividends relate.

P) Contingent Liabilities

Contingent Liabilities as defined in AS-29 "Provisions, Contingent Liabilities" are disclosed by way of notes to the accounts. Disclosure is not made if possibility of outflow of resources embodying economic benefit is remote.


Mar 31, 2011

1. Basis of Preparation of Financial Statements

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

2. Use of Estimates

The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liability on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognised in the period in which the same are identified materialized.

3. Fixed Assets

a) Fixed Assets including Leasehold Land are recorded at cost. The Company capitalises all costs relating to Fixed Assets acquisition, installation and other financing cost till commencement of commercial production. The company has stated its fixed assets net of CENVAT / Value Added Tax.

b) Capital Work in Progress is stated at the amount expended upto the date of Balance Sheet including pre operative expenditures, which is subsequently allocated to the relevant fixed assets on a pro-rata basis depending on the prime cost of the assets for new units.

4. Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such assets till the asset is ready for its intended use. All other borrowing costs are charged to Revenue.

5. Depreciation / Amortisation

a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata up to the date of deletion. Depreciation in the case of uninstalled Fixed Assets is not provided.

b) Depreciation on Fixed Assets except to the extent stated in (a) and (b) above, is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

c) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, is provided @ 100% p.a.

6. Inventories

a) Inventories are valued at lower of cost or net realizable value.

b) Excise duty is added in closing inventory of finished goods.

c) Cost includes the Purchase Cost, Customs Duty, Transportation and Clearing, Forwarding Charges and Exchange Rate Fluctuation arising on account of imports, if any and in case of Work in Progress and Finished Goods, includes labour and other factory overheads absorbed at normal capacity level.

d) Waste & Scrap is valued at Net Realizable Value.

e) Packing materials and Stores & Spares purchased are written off as expense in the year of purchase.

f) NRV is the estimated selling price in the ordinary course of business.

7. Foreign Exchange Transactions

Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date. However, in the cases where the Company had used foreign currency forward contract to hedge the risk associated with foreign currency fluctuations, the liabilities / assets as at the Balance Sheet are reinstated at the applicable forward contract rates.

8. Employee Retirement Benefits

a) Provident Fund is a defined contribution scheme and the Company's contribution is charged to Profit & Loss account for the year to which the same relates.

b) Retirement benefits in the form of Gratuity and Leave encashment which are defined benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognized in Profit and Loss account of the year.

c) Short Term Employee Benefits are recognized as an expense in the Profit and Loss account of the year in which the related service is rendered.

9. Taxation

a) Tax expenses for a year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

b) Deferred Ta x assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

10. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The recoverable amount is greater of the asset's net selling price and value in use, determined by discounting the estimated future cash fl ows expected from the continuous use of the asset to their present value. There is no impairment Profit/loss for the year ending 31st March, 2011

11. Accounting of Cenvat Transactions

CENVAT benefit is accounted for on accrual basis on purchase of material and assets and incurring of expenses and appropriated against payment of Excise Duty on Clearance of Finished Goods.

12. Earning Per Share

The earning considered in ascertaining the Company's EPS comprises the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is weighted average number of share outstanding during the year. The number of share used in computing diluted EPS comprises of weighted average share considered for deriving basic EPS and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

13. Recognition of Income and Expenditure

a) Incomes & Expenditures are generally accounted on Accrual as they are earned or incurred.

b) Sales are recognized when significant risks and rewards of ownership of the goods have passed to buyer which generally coincides with delivery. Export sales are accounted for on the basis of date of Bill of Lading. Sales are net of sales return, discount, rebates etc.

c) Export benefits (by way of entitlements for concessional custom duty) are accounted while availing the same.

d) Imports are recognised on presentation of Bill of Entry at the Customs or on retiring the Import Documents whichever is earlier.

e) Dividend income is recognized when the right to receive the dividend is unconditional.

14. Investments

Investments intended to be held for more than a year from the date of acquisition are classified as long term and are stated at cost of acquisition. No provision is made for diminution in value, if the decline is only temporary.

15. Tax on Dividend

Tax on distributable Profits by way of Interim and Final Dividend is accounted for in the year to which the declared dividends relate.

16. Contingent Liabilities

Contingent Liabilities as defined in AS-29 "Provisions, Contingent Liabilities" are disclosed by way of notes to the accounts. Disclosure is not made if possibility of outflow of resources embodying economic benefit is remote.


Mar 31, 2010

A) Accounts have been prepared and maintained on the basis of historical cost convention and mercantile system of accounting, unless otherwise stated .

b) Preliminary expenses are totally recognised in the Profit and Loss Account in Accordance with AS-26.

c) The Company has not yet started its operation.

d) Taxes on Income : - Current tax is determined as the amount of tax payable in respect of taxable income for the period. Defered tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

 
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