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Union Budget 2017-18
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Accounting Policies of Bright Brothers Ltd. Company

Mar 31, 2013

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Companies Act, 1956, and comply with the applicable Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 and issued by the Institute of Chartered Accountants of India (ICAI). The accounting policies adopted in the preparation of the financial statements are consistent with those follow in the previous years.

(B) Use of Estimates:

The presentation of financial statements is in conformity with generally accepted accounting principles requires the management to make judgement, estimates and assumption that affects the reported amount of assets and liabilities, revenue and expenses, disclosure of contingent liabilities at the end of reporting period. Although such estimates and assumptions are based on the management evaluation of relevant facts and circumstances as on the date of financial statements, the actual amounts (crystallization after preparation of financial statements) may differ from this estimate.

(C) Fixed Assets and Depreciation:

(i) All the fixed assets, other than certain revalued land, are stated at cost, net of Cenvat and Value added tax less accumulated depreciation including impairment loss. All direct cost including financing cost till commencement of commercial production are capitalized as part of fixed assets.

(ii) Cost of land includes lands acquired under lease.

(iii) Cost of building includes buildings constructed on leasehold lands.

(iv) Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

(v) Intangible Assets are amortised for a period not exceeding three years.

(D) Foreign Currency Transactions:

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Foreign currency monetary assets and liabilities are translated at year end exchange rates. Any income or expense on account of exchange differences arising on either on settlement or on translation of monetary items at the year end are recognised as income or expenses in the year in which they arise.

(E) Inventories:

(i) Raw Materials are valued at cost or net realisable value, whichever is lower.

(ii) Finished stock and work in progress stock are valued at cost or net realisable value, whichever is lower.

Finished goods (Trading), at cost or realisable value. (iii) Stores, spares and packing materials are valued at cost.

(F) Investments:

Trade investments comprise investments in which the Company has strategic business interest.

Investments, which are readily realizable and are intended to be held for not more than one year from the date of acquisition, are classified as current investments. All other investments are classified as long term investments. Current investments are carried at lower of cost or realizable value.

(G) Employee Benefits:

Defined contribution Plan: Gratuity:

In accordance with applicable laws, the Company provides for gratuity benefit retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity plan provides for, at retirement or termination of employment, an amount based on the respective employees last drawn salary and the years of employment with the Company. The Company provides the Gratuity benefits through annual contribution to a Gratuity Trust which in turn mainly contributes to Life Insurance of Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Grautity trust. Life Insurance Corporation of India administers the plan and determines the contribution premium to be paid by the trust.

Superannuation:

Defined contribution plan wherein contributions are made to a Trust which in turn contributes to LIC. Apart from being covered under the Gratuity plan described above, the employee of the Company who are Manager and above have the options to participate in a defined contribution superannuation plan maintained by the Company. The Company has no further obligation under the plan except making annual contribution based on a specified percentage of each covered employees.

Providend Fund:

In addition to the above benefits, all employees are entitled to provided benefits as per the law. For this Company makes contribution to Regional provident fund commissioner and there is no further obligation on the Company in future.

(H) Impairment of Assets:

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine: (i) the provision for impairment loss, if any; and

(ii) the reversal of impairment loss recognised in previous periods, if any, Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

(i) in the case of an individual asset, at the higher of the net selling price and the value in use; (ii) in the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit''s net selling price and the value in use. (Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life).

(I) Taxes on Income:

(i) Provision for Current tax including Minimum Alternative Tax (MAT) is made on based on taxable income in accordance with relevant tax rates and laws. MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

(ii) Deferred Tax, being tax on "timing differences" between accounting income and taxable income that originate in one year and capable of reversal in one or more subsequent years has been recognized accounted by using the tax rates and laws that have been substantively enacted as on the Balance Sheet date.

(iii) Deferred tax assets, excluding assets arising from loss/depreciation carried forward are not recognized unless there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In case of carried forward loss/depreciation, it is recognized only if virtual certainty exists.

(J) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

(a) the Company has a present obligation as a result of a past event,

(b) a probable outflow of resources is expected to settle the obligation and

(c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(a) A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation;

(b) A present obligation when no reliable estimate is possible;

(c) A possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent assets are neither recognised, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(K) Leased Assets:

Operating Leases: Assets acquired on lease where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease Rentals are charged to the Profit and Loss account on an accrual basis.

(L) Extraordinary and Exceptional Items:

(i) Extraordinary items:

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expenses, is classified as an extraordinary items and disclosed as such.

(ii) Exceptional items:

On certain occasions, the size, type or incidence of an item of income or expense, pertaining to ordinary activities of the Company is such that its disclosure improves an understanding of performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

(M) Borrowing Costs:

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time as the asset is ready for its intended use or sale. All other borrowing costs are charged to revenue.

(N) Segment Accounting:

(a) Segment accounting policies

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

(i) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

(ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. Expenses, which relate to the Group as a whole and not allocable to segments, are included under "unallocable corporate expenditure".

(b) The Company''s reporting segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems.

(O) Revenue Recognition:

(i) Sales are net of sales return and trade discounts and excludes all taxes and levies.

(ii) Revenue from the sale of goods is recognized in the statement of profit and loss account when the significant risk and reward of ownership have been transferred to the buyer.

(iii) Income from services is recognized upon completion of the contract, in accordance with the specific terms of the contract with the customer.

(iv) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(v) Dividend Income has been accounted on receipt basis (P) Excise Duty:

Excise duty has been accounted on the basis of payments made in respect of goods cleared. No excise duty provision has been made on closing inventory of finished goods. However, it does not have impact on the profits of the Company.

(Q) Earnings per share:

Earning per share is calculated by divided the profit attributable to the shareholders by the number of equity shares outstanding at the close of the year. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The weighted diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

(S) Cash Flow Statement:

Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:

I. transactions of a non-cash nature

II. any deferrals or accruals of past or future operating cash receipts or payments and

III. items of income or expense associated with investing or financing cash flows.


Mar 31, 2011

(A) DISCLOSURE OF ACCOUNTING POLICIES (AS-1):

The financial statements have been prepared under the historical cost convention on an accrual basis and comply in all material aspects with the applicable Accounting Standards notified under sub-section (3c) of Section 211 of the Companies Act, 1956 of India (the Act) and the relevant provisions of the Act. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(B) VALUATION OF INVENTORIES (AS-2):

Inventories are valued at lower of cost or net realisable value. The general practice adopted by the Company for valuation of inventory is as follows:

(a) Raw Material : At cost (FIFO)

(b) Work-in-Progress : At lower of cost and net realizable value

(c) Finished Goods : At lower of cost and net realizable value

(d) Trading Goods : At lower of cost and net realizable value

(e) Moulds : At cost

(f) Stores & Spares : At cost (FIFO)

(g) Packing Material : At cost (FIFO)

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

(C) CASH FLOW STATEMENT (AS-3):

The cash flow statement is prepared under "Indirect Method" and the same is annexed.

(D) CONTINGENCIES AND EVENTS OCCURING AFTER BALANCE SHEET DATE

(AS-4):

On 16th April, 2011 there was a fire at Faridabad Unit, which has partially resulted in damage/destroyed to stock, plant & machinery, furniture & fixture, computer hardware and software and electrical installation. Since it has not affected the going concern concept, no provision has been given in these financial statements in the line with the Accounting Standard-4.

(E) NET PROFIT AND LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES (AS-5):

Nil.

(F) DEPRECIATION ACCOUNTING (AS-6):

(i) Depreciation has been provided using the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

(ii) Asset individually costing of Rs. 5,000 or less are fully depreciated in the year of acquisition.

(iii) In respect of assets added/sold during the year, pro rata depreciation has been provided.

(iv) Leasehold land and improvements is amortised over the period of lease.

(v) Intangible Assets are amortised for a period not exceeding three years.

(vi) SAP software licence have been amortised over a period of five years.

(G) REVENUE RECOGNITION (AS-9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

The sale comprised of plastic components, moulds and traded goods. Sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyers.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

Dividend income has been accounted on receipt basis.

Profit on sale of investment is recognized only at the time when the investments are realised.

(H) ACCOUNTING FOR FIXED ASSETS (AS-10):

Fixed assets are stated at cost including expenditure incurred in bringing them to usable condition as reduced by Central Value Added Tax Credit (CENVAT), Value Added Tax (VAT) less accumulated depreciation. Cost of lands includes land acquired under lease. Building includes building constructed on leaseholds lands. Fixed Assets acquired under Hire Purchase Scheme are capitalized at their present value and hire charges are expensed. Intangible assets like trademarks and SAP licence are amortized over a period of three years and five years respectively.

(I) ACCOUNTING FOR THE EFFECT IN FOREIGN EXCHANGE RATE (AS-11):

Foreign Currency transactions:

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. In respect of fixed assets, the exchange rate difference has been adjusted in the cost of assets and in respect of other transactions are recognized in the Profit and Loss Account.

(J) ACCOUNTING FOR GOVERNMENT GRANTS (AS-12):

Government subsidy is accounted under Capital subsidy under the head Reserves and Surplus.

(K) ACCOUNTING FOR INVESTMENT (AS-13):

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. Investments are valued at Cost. However, provision for dimunition in value, if any, is made to recognize a decline other than temporary in nature in the value of investments.

(L) ACCOUNTING FOR RETIREMENT BENEFITS (AS-15):

Disclosure is made as per the requirements of the standard and the same is furnished below:

Short-term employees benefits:

All employees benefits payable wholly within twelve months are classified as short- term employees benefits. Benefits such as salaries, wages, performance incentives etc. are recognized at actual amount due in the period in which the employees rendered the related service.

Post employment benefits:

Defined Contribution plan:

Provident Fund: Contribution to Provident Fund is made to Employees Provident Fund administered by Regional Provident Fund Commissioner. There are no other obligations other than the contribution payable to the funds.

Superannuation Fund: The Company makes contribution to a scheme administered by the Life Insurance Corporation of India (LIC) to discharge superannuating liabilities to the employees. The annual contribution is charged to Profit & Loss Account.

Defined Benefits Plan:

Gratuity: The Company makes contribution to a scheme administered by Life Insurance Corporation of India (LIC) to discharge gratuity liabilities to the employees. Companys annual contribution to the scheme is charged to Profit & Loss Account.

Leave Encashment: The Company provides for the encashment of leave with pay subject to certain rules. Employees are entitled to accumulate leave. The liability is based upon the number of days of unutilized leave at each balance sheet date.

(M) BORROWING COST (AS-16):

The borrowing cost has been treated in accordance with the Accounting Standard on borrowing cost (AS-16). During the year, there were no borrowings attributable to qualifying assets and hence, no borrowing cost has been capitalized.

(N) SEGMENT REPORTING (AS-17):

The Company operates in one Business Segment of Processed Plastics Products and accordingly this is the only primary segment as per Accounting Standard AS-17.

(O) RELATED PARTY DISCLOSURE (AS-18):

Information on Related Party Transactions furnished in this report was complied based on the guidelines issued by The Institute of Chartered Accountants of India, under Accounting Standard on Related Party Transactions (AS-18).

The following are the related parties with whom transactions have been entered into during the year:

Key Management Personnel

Mrs. Hira T. Bhojwani - Whole Time Director

Mr. Suresh Bhojwani - Chairman & Managing Director

Relatives of Key Management Personnel

Mr. Karan S. Bhojwani

Ms. Ruchika S. Bhojwani

Enterprises in which Key Management Personnel have significant influence

M/s. Quality Plastics

M/s. T. W. Bhojwani Leasing Pvt. Ltd.

Summary of the monetary value of the Transaction with related parties are as follows:

(P) ACCOUNTING FOR LEASE (AS-19):

Disclosure as required by Accounting Standard 19, "Leases", issued by The Institute of Chartered Accountant of India, are given below:

1. The Company has taken various factory premises, office premises and guest house under operating lease agreement. These are generally cancellable and are renewable on mutually agreed terms. Operating lease payments are recognized as an expenses in the profit and loss account on a straight line basis over the lease term.

(Q) EARNING PER SHARE (AS-20):

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to Equity shareholders by the weighted average number of equity shares outstanding during the year as under:

Disclosure is made in the profit & loss account as per the requirements of the standard.

(R) ACCOUNTING FOR TAXES ON INCOME (AS-22):

Tax expenses comprises of current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities and determined on the profit of the year in accordance with the provisions of Income Tax Act, 1961. Deferred tax is calculated at tax rates and the laws that have been enacted or substantially enacted by the Balance Sheet date and is recognized on timing difference that originates in one period and capable of reversal in one or more subsequent periods. Deferred tax assets, is recognized subject to consideration of prudence, and carried forward only to the extent that they can be realized. In situation where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profit.

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

(S) INTERIM FINANCIAL REPORTING (AS-25):

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

(T) INTANGIBLE ASSETS (AS-26):

During the year the Company has capitalized a sum of Rs. 13.76 lacs for SAP licence which is written off over a period of 5 years.

(U) IMPAIREMENT OF ASSETS (AS-28):

The cash generating units are evaluated at the Balance Sheet date to ascertain the estimated recoverable amounts/value in use as against the Written Down Value. Impairment loss, if any, is recognized whenever the Written Down Value exceeds estimated recoverable amounts/ value in use.

(V) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS-29):

(a) The liability in respect of warranty attached to the products are to the extent of replacement of products. No specific provision has been made in the accounts.

(b) Contingent Liabilities not provided for are disclosed in the notes to the accounts given below and Contingent assets are not recognized.

(c) Capital commitment

Estimated amount of Contract remaining to be executed on Capital account and not provided for Rs. 72.78 lacs (net of advance)

(d) Contested liabilities and Contingencies:

- Stamp duty Rs 36.75 lacs

- Sales Tax Rs. 118.55 lacs

- Excise duty Rs. 133.30 lacs

- Wealth tax Rs 3.31 lacs

- Income Tax Rs. 503.86 lacs

- ESIC Rs 7.65 lacs

Note: In respect of Stamp Duty the Company has deposited the entire amount payable under Protest.


Mar 31, 2010

(A) DISCLOSURE OF ACCOUNTING POLICIES (AS-1):

The financial statements have been prepared under the historical cost convention on an accrual basis and comply in all material aspects with the applicable Accounting Standards notified under sub-section (3c) of Section 211 of the Companies Act, 1956 of India (the Act) and the relevant provisions of the Act. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(B) VALUATION OF INVENTORIES (AS-2):

Inventories are valued at lower of cost or net realisable value. The general practice adopted by the Company for valuation of inventory is as follows:

(a) Raw Material : At cost.(FIFO)

(b) Work-in-Progress : At lower of cost and net realizable value

(c) Finished Goods : At lower of cost and net realizable value

(d) Trading Goods/Moulds : At lower of cost and net realizable value

(e) Stores & Spares : At cost (FIFO)

(f) Packing Material : At cost (FIFO)

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

(C) CASH FLOW STATEMENT (AS-3):

The cash flow statement is prepared under "Indirect Method" and the same is annexed.

(D) CONTINGENCIES AND EVENTS OCCURING AFTER BALANCE SHEET DATE (AS-4):

Nil.

(E) NET PROFIT AND LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES (AS-5):

Nil

(F) DEPRECIATION ACCOUNTING (AS-6):

(i) Depreciation has been provided under the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956 with applicable shift allowances.

(ii) Asset individually costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

(iii) In respect of assets added/sold during the year, pro rata depreciation has been provided.

(iv) Leasehold land and improvements is amortised over the period of lease.

(v) Intangible Assets are amortised for a period not exceeding three years.

(G) REVENUE RECOGNITION (AS-9):

The sale of the Company comprised of sale of plastic components, mould and traded goods. The sales are net of trade discount and sales tax, value added tax and excise duty on own manufacture goods. Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

The revenue and expenditure are accounted on a going concern basis.

(H) ACCOUNTING FOR FIXED ASSETS (AS-10):

Fixed assets are stated at cost including expenditure incurred in bringing them to usable condition as reduced by Central Value Added Tax Credit (CENVAT), Value Added Tax (VAT) less accumulated depreciation. Cost of lands includes land acquired under lease. Building includes building constructed on leaseholds lands. Fixed Assets acquired under Hire Purchase Scheme are capitalized at their present value and hire charges are expensed. Intangible assets like software cost and trademarks is amortized over a period of three years.

(I) ACCOUNTING FOR THE EFFECT IN FOREIGN EXCHANGE RATE (AS-11):

Foreign Currency transactions:

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary asset and liabilities are translated at the exchange rate prevailing on the balance sheet date. Exchange difference arising out of such transaction are recognized in the Profit and Loss Account.

(J) ACCOUNTING FOR GOVERNMENT GRANTS (AS-12):

Government subsidy is accounted under Capital subsidy under the head Reserves and Surplus. During the year the Company has received Rs. 15 lakhs from the Government of Haryana towards subsidy.

(K) ACCOUNTING FOR INVESTMENT (AS-13):

Investments are valued at Cost except where there is a dimunition in value other than temporary in which case the carrying value is reduced to recognize the decline.

(L) ACCOUNTING FOR RETIREMENT BENEFITS (AS-15):

Disclosure is made as per the requirements of the standard and the same is furnished below:

Short term employees benefits:

All employees benefits payable within twelve months are classified as short-term employees benefits. Benefits such as salaries, wages, performance incentives etc. are recognized at actual amount due in the period in which the employees rendered the related service.

Post employment benefits:

Defined Contribution plan:

Provident Fund: Contribution to Provident Fund is made to Employees Provident Fund administered by Regional Provident Fund Commissioner.

Superannuation fund: The Company makes contribution to a scheme administered by the Life Insurance Corporation of India (LIC) to discharge superannuating liabilities to the employees. The annual contribution is charged to Profit & Loss Account.

Defined Benefits Plan:

Gratuity: The Company makes contribution to a scheme administered by Life Insurance Corporation of India (LIC) to discharge gratuity liabilities to the employees. Companys annual contribution to the scheme is charged to profit & loss account.

Leave Encashment: The Company provides for the encashment of leave with pay subject to certain rules. Employees are entitled to accumulate leave. The liability is based upon the number of days of unutilized leave at each balance sheet date.

(M) BORROWING COST (AS-16):

The borrowing cost has been treated in accordance with the Accounting Standards on borrowing cost (AS -16) issued by The ICAI. During the year, there were no borrowings attributable to qualifying assets and hence, no borrowing cost has been capitalized.

(N) SEGMENT REPORTING (AS-17):

The Company operates in one Business Segment of Processed Plastics Products and accordingly there is no separate reportable segment as per Accounting Standard AS-17.

(O) RELATED PARTY DISCLOSURE (AS-18):

Information on Related Party Transactions furnished in this report was complied based on the guidelines issued by the Institute of Chartered Accountants of India, under Accounting Standard on Related Party Transactions (AS-18).

The following are the related parties with whom transactions have been entered into during the year:

Key Management Personnel

Mrs. Hira T. Bhojwani - Whole Time Director

Mr. Suresh Bhojwani - Chairman & Managing Director

Relatives of Key Management Personnel

Mrs. Devika S. Bhojwani Mr. Karan S. Bhojwani Ms. Ruchika S. Bhojwani M/s. T. W. Bhojwani HUF Mr. V. W. Bhojwani

Enterprises in which Key Management Personnel have significant influence

M/s. T. W. Bhojwani Leasing Pvt. Ltd. M/s. Quality Plastics

(P) ACCOUNTING FOR LEASE (AS-19):

Disclosure as required by Accounting Standard 19, "Leases", issued by The Institute of Chartered Accountant of India, are given below:

1. The Company has taken various residential, office and warehouse premises under operating lease agreement. These are generally cancellable and are renewed on mutually agreed terms. The Company has given refundable interest free security deposits under certain agreements.

(Q) EARNING PER SHARE (AS-20):

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to Equity shareholders by the weighted average number of equity shares outstanding during the year as under:

(R) ACCOUNTING FOR TAXES ON INCOME (AS-22):

Current tax is determined on the profit of the year in accordance with the provisions of Income tax Act, 1961. Deferred tax is calculated at tax rates and the laws that have been enacted or substantially enacted by the Balance Sheet date and is recognized on timing difference that originates in one period and capable of reversal in one or more subsequent periods. Deferred tax assets, is recognized subject to consideration of prudence, are recognized and carried forward only to the extent that they can be realized.

(S) INTERIM FINANCIAL REPORTING (AS-25):

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

(T) INTANGIBLE ASSETS (AS-26):

During the year the Company has not capitalized any sum towards intangible assets.

(U) IMPAIREMENT OF ASSETS (AS-28):

The cash generating units are evaluated at the Balance Sheet date to ascertain the estimated recoverable amounts/value in use as against the Written Down Value. Impairment loss, if any, is recognized whenever the Written Down Value exceeds estimated recoverable amounts/ value in use.

(V) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS-29):

(a) The liability in respect of warranty attached to the products are to the extent of replacement of products. No specific provision has been made in the accounts..

(b) Contingent Liabilities not provided for are disclosed in the notes to the accounts given below and Contingent assets are not recognized.

(a) Estimated amount of Contract remaining to be executed on Capital account and not provided for Rs. 199.76 lacs (net of advance).

(c) Contested liabilities and Contingencies:

- Stamp duty Rs. 36.75 lacs

- Sales Tax Rs. 171.14 lacs

- Excise duty Rs. 159.07 lacs

- Service tax Rs. 19.76 lacs

- Wealth tax Rs. 3.31 lacs

- ESIC Rs. 4.64 lacs

Note: In respect of Stamp Duty the Company has deposited the entire amount payable under Protest.

 
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