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Accounting Policies of Euro Multivision Ltd. Company

Mar 31, 2015

(a) Corporate Information

Euro Multivision Limited (the Company) is a public company domiciled in India and incorporated under the provision of the Companies Act,1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and selling of Optical Discs and Solar Photovoltaic Cells. The company caters to both domestic and international markets.

(b) 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. Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

(c) System of Accounting and Use of estimates

* The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

* Financial statements are prepared under the historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

* Estimates and assumptions used in the preparation of the financial statements and disclosures are based upon Management's evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.

(d) Tangible fixed assets

Fixed assets are stated at cost. The Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use and also comprises of borrowing costs attributable to acquisition and construction of assets up to the date when such asset is ready for its intended use.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

(e) Depreciation/Amortization Tangible Assets

* From the current year, depreciation is provided on a pro rata basis on the straight line method (SLM method) over the useful lives of the respective assets as defined in Schedule II-Part 'C' of the Companies Act, 2013 as against the past practice of computing depreciation at rates with reference to the life of the assets subject to the minimum rates provided by Schedule XIV of the Companies Act,1956.

* Depreciation on additions is being provided on a pro-rata basis from the date of such additions.

* Depreciation on assets sold, discarded or demolished during the year is being provided at their rates upto the date on which such assets are sold, discarded or demolished.

Intangible Assets

These are amortised equally over a period of thirteen years.

(f) Leases

Operating Lease

Leases other than finance lease, are operating leases, and the leased assets are not recognised on the Company's balance sheet. Payments under operating leases are recognised in Profit and Loss Account on a straight-line basis over the term of the lease.

(g) Borrowing Costs

Borrowing Cost attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(h) Impairment of Asset

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(i) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investment are made, are classified as current investments. All other investments are classified as long term investments. Long term investments are stated at cost of acquisition. Diminution in value of such long term investments is not provided for except where determined to be of permanent nature.

(j) Inventories

Items of inventories are measured after providing for obsolescence,if any. Cost of inventories comprises of cost of purchases, cost of estimated conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

(i) Raw Material/ Packing material is valued at cost or Net realizable value whichever is lower. Cost is arrived on FIFO basis

(ii) Finished Goods- Valued at material cost plus estimated conversion cost

(iii) Work in progress- Valued at material cost plus estimated conversion cost

(k) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

(l) Revenue Recognition

Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue. Dividend income is recognised when right to receive is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

(m) Foreign Currency transactions

* Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

* Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

* Non monetary foreign currency items are carried at cost.

* Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

(n) Employee Benefits

Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.

Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using acturial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

Provident Fund

Eligible Employees of Euro Multivision Ltd at plant receive benefits from provident fund, which is a defined contribution plan. Both the employee and the company make monthly contributions to the provident fund equal to a specified percentage of the covered employee's salary.

Employees Group Insurance Scheme

Euro Multivision Ltd contributes towards Employee's Group Insurance Scheme, which is a defined contribution plan for its employees at plant. Liabilities with regard to Gratuity plan are determined by actuary valuation at balance sheet date using the projected unit credit method.

Leave Encashments

The Company provides for the encashment of leave to its employees at plant subject to certain rules and is recognized as long term compensated absence. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilised leave at each balance sheet date on the basis of an independent actuarial valuation. The Company provides for the encashment of leave to its employees at head office and sales departments on an yearly basis and hence recognized as short term compensated absence.

(o) Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from ''timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted of substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is virtual certainty that the asset will be realised in future.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws), is recognised as an asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realisation. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation.

(p) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(q) Provisions and Contingent Liabilities

A provision is recognised when the Company has a present obligation as a result of past events 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. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

(a) Corporate Information

Euro Multivision Limited (the Company) is a public company domiciled in India and incorporated under the provision of the Companies Act,1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and selling of Optical Discs and Solar Photovoltaic Cells. The company caters to both domestic and international markets.

(b) Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP).The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules,2006,(as amended) and the relevant provisions of the Companies Act,1956 read with general circular 15/2013 dated 13th September, 2013 of the Ministry of the Corporate Affairs in respect of section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. The financial statements have been prepared on an accrual basis and under historical cost convention on a going concern basis.

(c) Use of estimates

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

(d) Tangible fixed assets

Fixed assets are stated at cost. The Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use and also comprises of borrowing costs attributable to acquisition and construction of assets up to the date when such asset is ready for its intended use.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets,including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

(e) Depreciation/Amortization Tangible Assets

Depreciation on fixed assets is calculated on a "Straight Line Basis" using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies act,1956, whichever is higher.

Intangible Assets

These are amortised equally over a period of thirteen years.

(f) Leases Operating Lease

Leases other than finance lease, are operating leases, and the leased assets are not recognised on the Company''s balance sheet. Payments under operating leases are recognised in Profit and Loss Account on a straight-line basis over the term of the lease.

(g) Borrowing Costs

Borrowing Cost attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capiatlised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(h) Impairment of Asset

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(i) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investment are made, are classified as current investments. All other investments are classified as long term invetments. Long term investments are stated at cost of acquisition. Diminution in value of such long term investments is not provided for except where determined to be of permanent nature.

(j) Inventories:

Items of inventories are measured after providing for obsolescence,if any. Cost of inventories comprises of cost of purchases, cost of estimated conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

* Raw Material/ Packing material is valued at cost or Net realizable value whichever is lower. Cost is arrived on FIFO basis

* Finished Goods - Valued at material cost plus estimated conversion cost

* Work in progress - Valued at material cost plus estimated conversion cost

(k) Revenue Recognition

Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.Dividend income is recognised when right to receive is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

(l) Foreign Currency transactions

* Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

* Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

* Non monetary foreign currency items are carried at cost.

* Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

(m) Employee Benefits

Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.

Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using acturial valuation techniques. Acturial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

Provident Fund

Eligible Employees of Euro Multivision Ltd at plant receive benefits from provident fund, which is a defined contribution plan. Both the employee and the company make monthly contributions to the provident fund equal to a specified percentage of the covered employee''s salary.

Employees Group Insurance Scheme

Euro Multivision Ltd contributes towards Employee''s Group Insurance Scheme, which is a defined contribution plan for its employees at plant. Liabilities with regard to Gratuity plan are determined by actuary valuation at balance sheet date using the projected unit credit method.

Leave Encashments

The Company provides for the encashment of leave to its employees at plant subject to certain rules and is recognized as long term compensated absence. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilised leave at each balance sheet date on the basis of an independent actuarial valuation. The Company provides for the encashment of leave to its employees at head office and sales departments on an yearly basis and hence recognized as short term compensated absence.

(n) Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from ''''timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted of substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is virtual certainty that the asset will be realised in future.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws), is recognised as an asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realisation. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation. MAT provisions are made applicable to SEZ Units also, w.e.f FY 2011-2012.

(o) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of claulating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(p) Provisions and Contingent Liabilities

A provision is recognised when an enterprise has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted at its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A disclosure by way of contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, required an outflow of resources.

Contingent assets are not recognised in the financial statements.


Mar 31, 2012

(a) Corporate Information

Euro Multivision Limited (the Company) is a public company domiciled in India and incorporated under the provision ofthe Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and selling of Optical Discs and Solar Photovoltaic Cells. The company caters to both domestic and international markets.

(b) Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules,2006,(as amended) and the relevant provisions of the Companies Act, 1956.The financial statements have been prepared on an accrual basis and under historical cost convention on a going concern basis.

(c) Presentation and disclosure of financial statements

During the year ended 31 March 2012, the revised Scheduled VI notified under the Companies Act 1956,has become applicable to company, for preparation and presentation of its financial statements. It has significant impact on presentation and disclosure made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(d) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judegments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although theses estimates are based on the management's best knowledge of the current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(e) Tangible fixed assets

Fixed assets are stated at cost. The Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use and also comprises of borrowing costs attributable to acquisition and construction of assets up to the date when such asset is ready for its intended use.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

(f) Depreciation on Tangible fixed assets

Depreciation on fixed assets is calculated on a "Straight Line Basis'' using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to ihe Companies act, 1956,whichever is higher.

(g) Leases

Operating Lease

Leases other than finance lease, are operating leases, and the leased assets are not recognised on the Company's balance sheet. Payments under operating leases are recognised in Profit and Loss Account on a straight-line basis over ' the term ofthe lease.

(h) Borrowing Costs

Borrowing Cost attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capiatlised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(i) Impairment of Asset

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling pricfe and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(j) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investment are made, are classified as current investments. All other investments are classified as long term investments. Long term investments are stated at cost of acquisition. Diminution in value of such long term investments is not provided for except where determined to be of permanent nature,

(k) Inventories are valued as under:

(i) Raw Materials / Packing Materials-ls valued at cost or net realisable value whichever is lower. Cost is arrived on FIFO basis.

(ii) Finished Goods - Valued at Material cost plus estimated conversion cost.

(iii) Work-in-Progress - Valued at Material cost plus estimated conversion cost.

(I) Revenue Recognition ,

Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

(m) Foreign Currency transactions

- The reporting currency of the Company is Indian Rupee.

- Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

- Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company's monetary items at the closing rate are recognised as income or expense in the period in which they arise.

- The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortised as expense or income over the life of the contract.

- Gain or loss on forward exchange contracts for non speculation relating to firm commitments is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the closing rate available at the reporting date and the contracted forward rate. Such gain or loss is recognised in the profit and loss account.

- Gain or loss on forward exchange contracts for speculation relating to firm commitments is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the reporting date for the remaining maturity of the contract and the contracted forward rate. Such gain or loss is recognised in the profit and loss account.

- Cash flows arising on account of roll-over/ cancellation of forward contracts are recognised as income / expense of the period in line with the movement in the underlying exposures.

- Pursuant to the notification of the Companies (Accounting Standards) Amendment Rule 2009 issued by Ministry of Corporate Affairs on March 31, 2009 amending Accounting Standard - 11 (AS - 11) The Effects of Changes in Foreign Exchange Rates (revised 2003), exchange differences relating to long term monetary items are dealt with in the following manner:

(i) Exchange differences relating to long term monetary items, arising during the year, in so far as they relate to the acquisition of a depreciable capital asset are added to / deducted from the cost of the asset and depreciated overthe balance life of the aesset. .

(ii) In other cases, such differences are accumulated in the "Foreign Currency Monetary Translation Difference Account" and amortised to the profit and loss account over the balance life of the long term monetary item but not beyond March 31,2011.

(iii) All other exchange differences are recognised as income or expense in the profit and loss account.

(iv) The Company has not yet adopted AS-30 as it is not mandatory in nature for the financial year 2011-2012 in respect of forward contracts outstanding at the beginning of the financial year.

(n) Employee Benefits

Gratuity

In accordance with the Payment of Gratuity Act, 1972, Euro Multivision Ltd provides for gratuity, a defined benefit retirement plan (the Gratuity Plan) covering eligible employees of the Company. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, or termination of employment, of an amount based on the respective employees's salary and the tenure of employment with the company.

The Company has Group Gratuity Policy managed by LIC and liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard 15 (Revised). Liabilities with regard to the Gratuity Plan are determined by actuarial valuation at Balance Sheet date using the projected unit credit method. The Company contributes all ascertained liabilities to the Euro Multivision Ltd Employee's Group Gratuity Fund Trust. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the Profit and Loss Account in the period in which they arise.

Provident Fund

Eligible Employees of Euro Multivision Ltd at plant receive benefits from provident fund, which is a defined contribution plan. Both the employee and the company make monthly contributions to the provident fund equal to a specified percentage of the covered employee's salary.

Employees Group Insurance Scheme

Euro Multivision Ltd contributes towards Employee's Group Insurance Scheme, which is a defined contribution plan for its employees at plant.

Leave Encashments

The Company provides for the encashment of leave to its employees at plant subject to certain rules and is recognized as long term compensated absence. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilised leave at each balance sheet date on the basis of an independent actuarial valuation. The Company provides for the encashment of leave to its employees at head office and sales departments on an yearly basis and hence recognized as short term compensated absence.

(o) Taxes on Income

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessments / appeals.

Deferred Tax resulting from 'timing difference' between book and taxable profit for the year is accounted for using the current tax rates. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future. However, in case of deferred tax assets representing unabsorbed depreciation or carry forward losses are recognised, if and only if there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws), is recognised as an asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realisation. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation. MAT provisions are made applicable to SEZ Units also, w.e.f FY 2011-2012.

(p) Earnings per share -

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(q) Provisions and Contingent Liabilities

Provisions involving a substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.


Mar 31, 2010

(a) Basis of Accounting :

The financial statements are prepared under historical cost convention on a going concern basis in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956

(b) Fixed Assets :

Fixed Assets are stated at cost. Cost Comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use and also comprises of borrowing costs attributable to acquisition and construction of assets up to the date when such asset is ready for its intended use.

(c) Depreciation :

Depreciation on fixed assets is provided on the "Straight Line Method" as per the rates and in the manner prescribed by Schedule XIV of the Companies Act, 1956.

(d) Valuation of Inventories : Inventories are valued as under: (i) Raw Materials - At cost

(ii) Finished Goods - Valued at material cost plus estimated conversion cost

(iii) Semi-Finished Goods - Valued at material cost plus estimated conversion cost

(e) Retirement Benefits :

(i) Gratuity : Liability for Gratuity is ascertained and provided for as per the Acturial Valuation.

(ii) Provident Fund : Provident Fund is charged to the profit & loss account in the year in which employee has rendered service.

(iii) Leave Encashment : Liability for accumulated earned leave of employees is ascertained and provided for as per the Company Rules.

(f) Investments :

Long Term Investments are stated at cost less provision, if any, for permanent diminution in their value.

(g) Taxes on Income :

Provision for taxation comprises of Current Tax, Deferred Tax and Fringe Benefit Tax. Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred Tax Provision is made as required under Accounting Standard 22 Accounting for taxes on income issued by The Institute of Chartered Accountants of India. Deferred Tax Asset has been reckoned only to the extent, the Company is confident of recovering the same from future profits.

Unutilised MAT Credit has been recognized as an asset in accordance with the recommendation contained in the Guidance Note issued by Institute of Chartered Accountants of India.

(h) Borrowing Costs :

Borrowing Cost attributable to acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

(i) Foreign Currency Transactions :

Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transaction. Current assets and current liabilities in foreign currency are stated at the period ended closing rates. The resulting exchange gain/loss is recognized in the profit and loss account.

(j) Impairment of Asset :

Factors giving rise to any indication of impairment of carrying amounts of the Companys Assets are appraised at each Balance Sheet date to determine and provide / reserve an impairment loss. There is no such impairment in the carrying amount of the Companys Assets.

(k) Provisions and Contingent Liabilities :

Provisions are recognized when the company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when a Company has possible obligation or a present obligation and it is uncertain as to whether a cash outflow will be required to settle the obligation.


Mar 31, 2009

(a) Basis of Accounting :

The financial statements are prepared under historical cost convention on a going concern basis in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, ,

(b) Fixed Assets :

Fixed Assets are stated: at cost. .Cost Comprises the purchase price and any attributable cost of bringingthe asset to its working condition for its intended use and also comprises of borrowing costs attributable to acquisition and construction of assets up to the date when such asset is ready for its intended use.

(c) Change in Accounting Policy :

Pursuant to the notification of the Companies (Accounting Standards) Amendment Rule 2009 issued by Ministry of Corporate Affairs on March 31, 2009 amending Accounting Standard - 11 (AS - 11) The Effects of Changes in Foreign Exchange Rates (revised 2003), exchange differences relating to long term monetary items are dealt with in the following manner:

a) Exchange differences relating to long term monetary items, arising during the year, in so far as they relate to the acquisition of a depreciable capital asset are added to / deducted from the cost of the asset and depreciated over the balance life of the asset.

b) In other cases, such differences are accumulated in the "Foreign Currency Monetary Translation Difference Account" and amortised to the profit and loss account over the balance life of the long term monetary item but not beyond March 31, 2011.

b) All other exchange differences are recognised as income or expense in the profit and loss account.

(d) Depreciation:

Depreciation on fixed assets is provided on the "Straight Line Method" as per the rates and in the manner prescribed by Schedule XIV of the Companies Act, 1956.

(e) Valuation of Inventories : Inventories are valued as under:

(i) Raw Materials - AtCost

(ii) Finished Goods - Valued at Material cost plus estimated conversion cost

(iii)Semi-Finished:Goods - Valued at material cost plus estimated conversion cost

(f) Retirement Benefits : (ii Gratuity:

Gratuity is accounted as and when it is accrued and due as per the Payment of Gratuity Act.

(ii) Provident fund :

Provident Fund is charged to theprofit & loss account in the year in which employee has -rendered service:

Leave Encashment:

Liability for accumulated earned leave of employees is ascertained and provided for as per the Company Rules

(g) Investments:

Long Term Investments are stated at cost less provision, if any, for permanent diminution in their value.

(h) Taxes on Income:

Provision for taxation comprises of Current tax, Deferred Tax and Fringe Benefit Tax. Current Tax Provision has been made in accordance with the Income Tax Act, 1961

Deferred Tax Provision is made as required under Accounting Standard 22 Accounting for taxes on income issued by The Institute of Chartered Accountants of India. Deferred Tax Asset has been reckoned only to the extent the company is confident of recovering the same from future profits.

Unutilised MAT Credit has been recognized as an asset in accordance with the recommendation contained in the Guidance Note issued by Institute of Chartered Accountants of India:

(i) Borrowing Costs

Borrowing Cost attributable to acquisition, construction or production of qualifying assets are capitalized as part of the cost of.that asset,till the asset is ready for use.-Other borrowing costs are recognized as: an.expense in the period in which these are incurred.

(j) Foreign Currency transactions

Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transaction. Current assets and current liabilities in foreign currency are stated at the period ended closing rates. The resulting exchange gain/loss is recognized in the profit and loss account.

(k) Impairment of Asset:

Factors giving risetoany indication of impairment of carrying amounts of the companys Assets are appraised at each Balance Sheetdate to determine and provide / reserve an impairment loss.There is no:such impairment in the carrying amount of the Companys Assets.

(l) Miscellaneous Expenditure

Treatment of Miscellaneous Expenditure relating to Preliminary Expenses incurred is in the accordance of the Accounting Standard 26 Intangible Assetsissued by Institute of Chartered Accountants of India.

(m) Provisions and Contingent Liabilities :

Provisions are recognized when the company has a legal and constructive obligation as a result of past event, for which it is probablethat a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when a company has possible obligation or a present obligation and it is uncertain also. whether a cash outflow will be required to settle the obligation.

 
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