Accounting Policies of G G Dandekar Properties Ltd. Company

Mar 31, 2018

1. Significant Accounting Policies:

1.1. Property, Plant and Equipment (PPE)-

The Company has opted to continue with the carrying values of the PPE disclosed under the previous GAAP as at 1 April, 2016 as the deemed cost of the PPE under Ind AS on the date of transition to Ind AS i.e. 1 April, 2016.

PPE is recognized when it is probable that future economic benefits associated with the item will flow to the Company and cost of the item can be measured reliably. PPE is stated at its original cost net of tax / duty credits availed, if any, including borrowing costs and other attributable costs incurred for bringing the asset to its working condition for its intended use, less accumulated depreciation and cumulative impairment, if any.

Subsequent expenditure incurred is included in the asset''s carrying amount appropriately, only when it is probable that future economic benefits associated with the item will flow to the Company and cost of the item can be measured reliably.

All other repairs and maintenance expenses are charged to the statement of Profit and Loss during the reporting period in which they are incurred.

Items of PPE not ready for its intended use on the reporting date are disclosed as “Capital Work in Progress”.

An item of PPE is de-recognized upon disposal or when retired from active use when no future benefits are expected from its use. Gains/ losses on de-recognition are recognized in the statement of Profit and Loss.

2.2. Intangible Assets-

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can be measured reliably and are stated at cost less accumulated amortization and impairments, if any.

Software, which is not an integral part of the related hardware, is classified as an intangible asset.

The carrying amount of an intangible asset is de-recognized on disposal or when no future economic benefits are expected to flow from its use or disposal. The gain or loss arising from de-recognition is recognized in the Statement of Profit and Loss.

3.3. Depreciation and Amortisation-

a. Depreciation on fixed assets is charged on Written Down Value method using the useful lives and residual values of all the assets, as prescribed under Part - C of Schedule II to the Companies Act, 2013, except as stated in para (b) & (c) below

b. Leasehold land is amortised on straight line basis over the period of lease.

c. Computer Software are being amortised on Straight Line basis over a period of 6 years.

4.4. Non- Current Assets Held for Sale-

The Company classifies non-current assets as held for sale if their carrying amounts are expected to be recovered principally through sale transaction rather than through continuing use. Non-current assets, classified as held for sale are measured at the lower of their carrying amounts and the fair value less costs to sell. The criteria for assets held for sale classification is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition.

5.5. Impairment of Non-Financial Assets-

As at each reporting date, the Company assesses the situation, whether there is an indication that a non-financial asset is required to be impaired and also whether there is an indication of reversal of impairment, if any, recognized in the previous periods. The impairment loss, if any, is recognized in the statement of profit and loss. 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.

5.6. Financial Instruments-

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

a) Financial Assets-

i. Initial Recognition

All financial assets are recognised initially at transaction value and where such transaction values are different from fair value, at fair value plus transaction costs that are directly attributable to the acquisition of the financial assets.

ii. Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

Financial Assets measured at Amortised Cost

Financial assets are subsequently measured at amortised cost, if these financial assets are held within a business model with an objective to hold these assets in order to collect contractual cash flows and the contractual terms of the financial assets give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent measurement is done using effective interest rate (EIR) method and resultant interest income from these financial assets is included in finance income. Impairment losses and reversals thereof arising on these assets are recognised in the Statement of Profit and Loss.

Financial Assets Measured at Fair Value through Other Comprehensive Income

Financial assets are measured at fair value through Other Comprehensive Income (OCI), if financial assets are held within a business model with an objective to hold these assets in order to collect contractual cash flows and to sell financial assets and the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent measurement, until they are derecognised or reclassified, is done at fair value and unrealised gains and losses are recognised in other comprehensive income except for the recognition of impairment losses and reversals thereof, interest revenue and foreign exchange gains and losses are recognised in the Statement of Profit and Loss.

Financial Assets Measured at Fair Value through Profit or loss

Financial assets are measured at fair value through Profit or loss unless it is measured at amortised cost or at fair value through OCI. Subsequent measurement is done at fair value and unrealised gains and losses are recognised in the Statement of Profit and Loss.

iii. Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies the expected credit loss (”ECL”) model for measurement and recognition of impairment loss on financial assets and credit risk exposures. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

The impairment provisions for financials assets are mainly based on past history, assumptions about risk of defaults, expected loss rates and timing of cash flows. As a practical expedient, the company uses a standard provision matrix. The company applies standard ECL impairment allowance based on ageing of receivables to estimate the provision amount. However, if credit risk has increased significantly, lifetime ECL is used.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive after applying a standard provision matrix. ECL impairment loss allowance or reversal thereof is recognised in the Statement of Profit and Loss.

iv. De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

b. Financial Liabilities-

i. Initial Recognition

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

ii. Subsequent Measurement

For the purposes of subsequent measurement, financial liabilities are classified and measured as follows-

Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the Statement of Profit and Loss. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

iii. De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as de-recognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

5.7. Borrowing Costs-

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset, that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as a part of the cost of the asset. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they occur.

5.8. Inventories-

a. Raw material, components, stores and spares are valued at lower of cost measured on weighted average cost basis or net realizable value. However, these items are considered to be realizable at cost if the finished products in which they will be used, are expected to be sold at or above cost

b. Work in Progress relating to manufacturing is valued at lower of cost of production or net realisable value.

c. Finished Goods are valued at lower of cost or net realisable value. Cost includes related overheads and excise paid or payable on such goods.

5.9. Foreign Currency Transactions-

The functional currency and presentation currency of the company is Indian Rupee. Transactions in currencies other than the company''s functional currency are recorded on initial recognition using the exchange rate prevailing on the date of transaction. At each Balance Sheet date, foreign currency monetary items are restated using the closing rate. Non-monetary items are measured at historical cost and are not retranslated. Exchange differences that arise on settlement of monetary items or on restating of monetary items at each Balance Sheet date at the closing rate are recognised in the statement of profit or loss in the period in which they arise.

5.10. Provisions, Contingent Liabilities and Contingent Assets-

a. Provisions are recognised only when-

i. the Company has a present obligation as a result of past event (legal or constructive):

ii. a probable outflow of resources embodying economic benefits will be required to settle the obligation; and

iii. the amount of obligation can be reliably estimated.

b. Contingent liabilities are disclosed in case of:

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

ii. a present obligation arising from past events, when no reliable estimate is possible,

iii. a possible obligation arising from past events, whose existence would be confirmed by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company.

c. Contingent assets are neither recognised, nor disclosed.

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

5.11. Revenue Recognition-

a. Revenue is recognised when consideration can be measured reliably and there exists reasonable certainty of its recovery. Revenue is recognized at the fair value of the consideration received or receivable.

b. Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods have passed to the buyer under the terms of the contract which generally coincides with their removal from Factory.

c. Revenue from erection and commissioning services is recognized on completion of contractual obligations.

d. Other Income

Interest income is recognised on time proportion basis determined by the amount outstanding and the rate applicable using the effective interest rate method.

Dividend income is recognized when the Company''s right to receive the same is established.

5.12. Warranty expenses-

The estimated liability for product warranties is recorded at the end of financial year. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise - being typically up to 2 to 3 years.

5.13. Research and Development Expenses-

a. Research and Development Expenses, other than Capital Expenses are charged to Profit and Loss Account as and when incurred.

b. Capital expenditure incurred for research and development activities are included in respective Fixed Assets and Depreciation is provided as per rates specified, in Schedule II of the Companies Act, 2013.

5.14. Tax Expenses-

a. Provision for Current Tax is made on the basis of taxable income for the current accounting period computed in accordance with the provisions of Income Tax Act, 1961 and based on the trend of allowances and disallowances in the earlier years.

Management periodically evaluates positions taken in the tax returns, with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted, at the reporting date.

Current income tax relating to items recognized outside the statement of profit and loss is recognized outside the statement of profit and loss, either in OCI or in equity. Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

b. Provision for Deferred Tax is recognized for all taxable temporary differences between carrying amounts of assets and liabilities in the Company''s financial statements and the corresponding tax bases used in computation of taxable profits and is quantified using tax rates and laws enacted or substantially enacted as on the reporting date. Deferred tax asset is recognised and carried forward only to the extent that it is probable that taxable profits will be available against with those deductible temporary differences can be utilised in the future.

5.15. Lease Rent-

The Company''s leasing arrangements are in the nature of operating leases, the period of which generally range from 11 months to 1 year. These arrangements can usually be terminated / renewed by mutual consent on agreed terms. All the material operating lease payments are recognized as expense in the statement of profit and loss on a straight- line basis over the lease term.

5.16. Employee Benefits-

a. Short Term Employee Benefits

Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and are expensed in the period in which the employee renders the related service.

b. Post-Employment Benefits:

i. Defined Contribution Plans

The State governed Employee Pension Scheme, Employees State Insurance Scheme and the Company''s Provident Fund administered by an independent Trust are the defined contribution plans. The liability on account of Company''s contributions paid or payable under these schemes is recognised during the period in which the employee renders the related service and is charged to the Statement of Profit and Loss. The Company has no further obligation beyond these contributions towards employees.

ii. Defined Benefit Plans

The employees'' gratuity fund scheme is the Company''s defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuarial valuation from an independent actuary using the Projected Unit Credit Method. Actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to other comprehensive income in the period in which they occur and not reclassified to Statement of Profit or Loss in subsequent periods.

c. Long Term Employee Benefits:

The accruing liability on account of encashment of leave entitlement of employees as per the rules of the Company is determined and provided for on the basis of the actuarial valuation from an independent actuary. Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss in the period in which they occur.

5.17. Earnings Per Share-

Basic EPS amount is calculated by dividing the net profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

6. First time adoption of Ind -AS:

These standalone financial statements are the first financial statements prepared by the Company in accordance with Ind AS. For periods up to and including the year ended 31 March, 2017, the Company prepared its financial statements in accordance with Indian GAAP. In order to prepare the first financial statements in accordance with Ind AS, the company has prepared opening Balance Sheet as of 1 April, 2016, being the date of transition to Ind AS, by recognising all assets and liabilities whose recognition is required by Ind AS, derecognising items of assets or liabilities which are not permitted to be recognised by Ind AS and reclassifying items from I-GAAP to Ind AS as required and applying Ind AS to measure the recognised assets and liabilities. The impact of transition has been provided in the opening reserves as at 1 April, 2016 and all the periods presented have been restated accordingly.

Exemptions and exceptions applied

Ind AS 101 allows first time adopters certain exemptions and exceptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions and exceptions in translating its Indian GAAP financial statements:

a. The company has opted to continue with the carrying value of all its property plant & equipment (PPE), as measured under the previous GAAP, as the deemed cost as at the transition date.

b. The company has determined the classification and measurement of financial assets on the basis of the facts and circumstances that existed as at 1 April, 2016, the date of transition to Ind AS.

c. The estimates as at 1 April, 2016 and 31 March, 2017 are consistent with those made for the same dates under previous GAAP, apart from the following items where the previous GAAP did not require estimations-

i. Impairment of financial assets based on the expected credit loss model;

ii. Investments in equity instruments carried at FVPL or FVOCI

The estimates used by the Company to present these amounts in accordance with principles of IndAS reflect conditions as at 1 April, 2016 and for the year ended 31 March, 2017.

Statement of Reconciliation of Equity and Reconciliation of Net Profit as reported under previous I- GAAP & reported under Ind AS is as under:

7. Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2018 has notified the following new and amendments to Ind ASs which the Company has not applied as they are effective for annual periods beginning on or after April 1, 2018:

Ind AS 115 Revenue from Contracts with Customers

Ind AS 21 The Effect of Changes in Foreign Exchange Rates

Ind AS 21 - The Effect of Changes in Foreign Exchange Rates

On March 28, 2018, the Ministry of Corporate Affairs (''the MCA'') notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration.

The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. The company is evaluating the impact of this amendment on its financial statements.

Ind AS 115 - Revenue from Contracts with Customers

On March 28, 2018, the MCA notified the Ind AS 115. Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 - Revenue, Ind AS 11 - Construction Contracts when it becomes effective.

The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ''control'' of the goods or services underlying the particular performance obligation is transferred to the customer. The standard introduces a 5-step approach to revenue recognition. It permits two possible methods of transition.

Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

The company is evaluating the impact transition and new provisions on its financial statements.

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Mar 31, 2017

Note B: NOTES FORMING PART OF ACCOUNTS- SIGNIFICANT ACCOUNTING POLICIES:

1. Method of accounting:

These Financial Statements have been prepared under the historical cost convention on accrual basis, in accordance with the Generally Accepted Accounting Principles in India (GAAP), which includes mandatory accounting standards as prescribed u/s.133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, and in compliance with the provisions of the Act to the extent notified. The accounting policies discussed below are consistent with those used in the previous year, unless otherwise stated.

2. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and reported amounts of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation or amortization. Cost is inclusive of freight, duties, taxes (to the extent of credit not availed) and incidental expenses related to acquisition, installation, erection and commissioning. Financing costs relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation and Amortization:

a) Depreciation on fixed assets is charged on Written down Value Method using the useful lives and residual values of all the assets as prescribed under Part - C of Schedule II to the Companies Act, 2013, except as stated in para (b) & (c) below

b) Cost of Leasehold Land is amortized over remaining period of lease agreement.

c) Computer Software are being amortized on Straight Line basis over a period of 6 years.

5. Investments:

Long term investments are stated at cost. Provision is made to recognize the decline, other than temporary in nature, in carrying amount of such investments. Current investments are stated at the lower of cost or fair value.

6. Inventories:

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

b) Cost of raw materials, components, consumables, tools, stores and spares is arrived at on weighted average cost basis.

c) Cost of finished goods and Work in progress is arrived at on the basis of weighted average cost of raw material and other cost of conversion thereof for bringing the inventories up to their present location and condition.

7. Foreign Currency Transactions:

a) Initial Recognition: Foreign Currency Transactions are translated into Indian Rupee at the exchange rates prevailing on the date of transactions.

b) Conversion: At the end of accounting year, the monetary items denominated in foreign currencies are restated at the exchange rates prevailing on the last day of the accounting year.

c) Exchange Differences: The exchange differences arising on settlement/ conversion of foreign currency transactions are recognized in Profit and Loss Account.

8. Research and Development Expenses

a) Research and Development Expenses, other than Capital Expenses are charged to Profit and Loss Account as and when incurred.

b) Capital expenditure incurred for research and development activities are included in respective Fixed Assets and Depreciation is provided as per rates specified, in Schedule II of the Companies Act, 2013.

9. Revenue Recognition:

a) Sales are accounted for net of Central Sales Tax and Value Added Tax.

b) Revenue from sale is recognized when the significant risks and rewards of ownership of goods have been passed to customers, which generally coincides with their removal from Factory.

c) Revenue from erection and commissioning services is recognized on completion of contractual obligations.

d) Interest income is recognized on accrual basis at applicable interest rate.

e) Dividend income is recognized when the Company''s right to receive dividend is established.

10. Warranty expenses:

The estimated liability for product warranties is recorded at the end of financial year. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise - being typically up to 2 to 3 years.

11. Employee Benefits:

a) Short Term Employee Benefits:

All employee benefits falling due wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages, bonus and other allowances and short term compensated absences etc. are recognized in the period in which the employee renders the related service.

b) Post-Employment Benefits:

i. Defined Contribution Plans:

The State governed Employee Pension Scheme, Employees State Insurance Scheme, the Company''s Provident Fund administered by an independent Trust and the Company''s Superannuation Scheme are the defined contribution plans. The liability on account of company''s contribution paid or payable under these schemes is recognized during the period in which the employee renders the related service and is charged to the Profit and Loss account. The Company has no further obligation beyond these contributions.

ii. Defined Benefit Plans:

The employees'' gratuity fund scheme is the Company''s defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

c) Long Term Employee Benefits:

The accruing liability on account of encashment of leave entitlement of employees as per the rules of the Company is determined and provided for on the basis of the actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

12. Provision for Current and Deferred Tax:

a) Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

b) Provision for Deferred Tax resulting from ''Timing Difference'' between books and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance Sheet date.

c) Deferred tax assets for tax loss and depreciation carried forward are recognized to the extent that the realization of the related tax benefit through the future taxable profits is virtually certain and is supported by convincing evidence that sufficient future taxable profits can be realized.

13. Borrowing Cost:

Borrowing costs are charged to Profit and Loss Account, except in cases where borrowings are directly attributable to acquisition, construction or production of a qualifying asset. A qualifying asset is one which necessarily takes substantial period of time to get ready for intended use.

14. Impairment of Assets:

Provision for impairment loss, if any, is recognized to the extent by which the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is determined on the basis of the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

15. Provisions, Contingent Liabilities and Contingent Assets:

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

i. The company has a present obligation as a result of past event,

ii. The probable outflow of resources is expected to settle the obligation, and

iii. The amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed in the case of:

i. A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

ii. A possible obligation unless the probability of outflow of resources is remote.

c) Contingent Assets are neither recognized nor disclosed.

Provisions & Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects and the amounts are reviewed at each balance sheet date.

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Mar 31, 2015

1. Method of accounting :

These Financial Statements have been prepared under the historical cost convention on accrual basis, in accordance with the Generally Accepted Accounting Principles in India (GAAP), which includes mandatory accounting standards as prescribed u/s.133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, and in compliance with the provisions of the Act to the extent notified. The accounting policies discussed below are consistent with those used in the previous year, unless otherwise stated.

2. Use of Estimates :

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and reported amounts of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation or amortization. Cost is inclusive of freight, duties, taxes (to the extent of credit not availed) and incidental expenses related to acquisition, installation, erection and commissioning. Financing cost relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation and Amortization:

a) Depreciation on fixed assets is charged on Written Down Value Method using the useful lives and residual values of all the assets as prescribed under Part - C of Schedule II to the Companies Act, 2013, except as stated in para (b) & (c) below

b) Cost of Leasehold Land is amortized over remaining period of lease agreement.

c) Computer Software are being amortised on Straight Line basis over period of 6 years.

5. Investments:

Long term investments are stated at cost. Provision is made to recognize the decline, other than temporary in nature, in carrying amount of such investments. Current investments are stated at the lower of cost or fair value.

6. Inventories:

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

e) Cost of raw materials, components, consumables, tools, stores and spares is arrived at on weighted average cost basis.

f) Cost of finished goods and Work in progress is arrived at on the basis of weighted average cost of raw material and other cost of conversion thereof for bringing the inventories up to their present location and condition.

7. Foreign Currency Transactions:

a) Initial Recognition: Foreign Currency Transactions are translated into Indian Rupee at the exchange rates prevailing on the date of transactions.

b) Conversion: At the end of accounting year, the monetary items denominated in foreign currencies are restated at the exchange rates prevailing on the last day of the accounting year.

c) Exchange Differences: The exchange differences arising on settlement/ conversion of foreign currency transactions are recognized in Profit and Loss Account.

8. Research and Development Expenses

a) Research and Development Expenses, other than Capital Expenses are charged to Profit and Loss Account as and when incurred.

b) Capital expenditure incurred for research and development activities are included in respective Fixed Assets and Depreciation is provided as per rates specified, in Schedule II of the Companies Act, 2013.

9. Revenue Recognition:

a) Sales are accounted for net of Central Sales Tax and Value Added Tax.

b) Revenue from sale is recognized when the significant risks and rewards of ownership of goods have been passed to customers, which generally coincides with their removal from Factory.

c) Revenue from erection and commissioning services is recognized on completion of contractual obligations.

d) Interest income is recognized on accrual basis at applicable interest rate.

e) Dividend income is recognized when the Company's right to receive dividend is established.

10. Employee Benefits:

a) Short Term Employee Benefits :

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, bonus and other allowances and short term compensated absences etc. are recognized in the period in which the employee renders the related service.

b) Post-Employment Benefits:

i. Defined Contribution Plans:

The State governed Employee Pension Scheme, Employees State Insurance Scheme, the Company's Provident Fund administered by an independent Trust and the Company's Superannuation Scheme are the defined contribution plans. The liability on account of company's contribution paid or payable under these schemes is recognized during the period in which the employee renders the related service and is charged to the Profit and Loss account. The Company has no further obligation beyond these contributions.

ii. Defined Benefit Plans:

The employees' gratuity fund scheme is the Company's defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

c) Long Term Employee Benefits:

The accruing liability on account of encashment of leave entitlement of employees as per the rules of the Company is determined and provided for on the basis of the actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

11. Provision for Current and Deferred Tax:

a) Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

b) Provision for Deferred Tax resulting from 'Timing Difference' between books and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance Sheet date.

c) Deferred tax assets for tax loss and depreciation carried forward are recognized to the extent that the realization of the related tax benefit through the future taxable profits is virtually certain and is supported by convincing evidence that sufficient future taxable profits can be realized.

12. Borrowing Cost:

Borrowing costs are charged to Profit and Loss Account, except in cases where borrowings are directly attributable to acquisition, construction or production of a qualifying asset. A qualifying asset is one which necessarily takes substantial period of time to get ready for intended use.

13. Impairment of Assets:

Provision for impairment loss, if any, is recognized to the extent by which the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is determined on the basis of the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

14. Provisions, Contingent Liabilities and Contingent Assets:

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

i. The company has a present obligation as a result of past event,

ii. The probable outflow of resources is expected to settle the obligation, and

iii. The amount of obligation can be reliably estimated.

b) Contingent liabilities are disclosed in the case of:

i. A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

ii. A possible obligation unless the probability of outflow of resources is remote.

c) Contingent Assets are neither recognized nor disclosed.

Provisions & Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects and the amounts are reviewed at each balance sheet date.

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Mar 31, 2013

1. Method of accounting:

The financial statements have been prepared under historical cost convention on accrual basis and comply with notified accounting standards as referred to in Section 211 (3C) and other relevant provisions of the Companies Act, 1956; unless otherwise specified.

2. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assump. tions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and reported amounts of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation or amortization. Cost is inclusive of freight, duties, taxes (to the extent of credit not availed) and incidental expenses related to acquisition, installation, erection and commissioning. Financing cost relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation and Amortization:

a. Depreciation on Fixed Assets has been charged on Written Down Value Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956, except as stated in Para (b) & (c) below.

b. Cost of Leasehold Land is amortized over remaining period of lease agreement.

c. Computer Software are being amortized on Straight Line Method over period of 6 years.

5. Investments:

Long term investments are stated at cost. Provision is made to recognize the decline, other than temporary in nature, in carrying amount of such investments. Current investments are stated at the lower of cost or fair value.

6. Inventories:

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

b. Cost of raw materials, components, consumables, tools, stores and spares is arrived at on weighted average cost basis.

c. Cost of finished goods and Work in progress is arrived at on the basis of weighted average cost of raw material and other cost of conversion thereof for bringing the inventories up to their present location and condition.

7. Foreign Currency Transactions:

a. Initial Recognition: Foreign Currency Transactions are translated into Indian Rupee at the exchange rates prevailing on the date of transactions.

b. Conversion: At the end of accounting year, the monetary items denominated in foreign currencies are restated at the exchange rates prevailing on the last day of the accounting year.

c. Exchange Differences: The exchange differences arising on settlement/ conversion of foreign currency transactions are recognized in Profit and Loss Account.

d. The financial statements of non.integral foreign operations are translated as per provisions of AS.11.

8. Research and Development Expenses

a. Research and Development Expenses, other than Capital Expenses are charged to Profit and Loss Account as and when incurred.

b. Capital expenditure incurred for research and development activities are included in respective Fixed Assets and Depreciation is provided as per rates specified, in Schedule XIV of the Companies Act, 1956.

9. Revenue Recognition:

a. Sales are accounted for net of Central Sales Tax and Value Added Tax.

b. Revenue from sale is recognized when the significant risks and rewards of ownership of goods have been passed to customers, which generally coincides with their removal from Factory.

c. Revenue from erection and commissioning services is recognized on percentage Completion method.

d. Interest income is recognized on accrual basis at applicable interest rate.

e. Dividend income is recognized when the Company''s right to receive dividend is established.

10. Employee Benefits:

a. Short Term Employee Benefits:

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, bonus and other allowances and short term compensated absences etc. are recognized in the period in which the employee renders the related service.

b. Post.Employment Benefits:

i. Defined Contribution Plans:

The State governed Employee Pension Scheme, Employees State Insurance Scheme, the Company''s Provident Fund administered by an independent Trust and the Company''s Superannuation Scheme are the defined contribution plans. The liability on account of company''s contribution paid or payable under these schemes is recognized during the period in which the employee renders the related service and is charged to the Profit and Loss account. The Company has no further obligation beyond these contributions.

ii. Defined Benefit Plans:

The employees'' gratuity fund scheme is the Company''s defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

c. Long Term Employee Benefits:

The accruing liability on account of encashment of leave entitlement of employees as per the rules of the Company is determined and provided for on the basis of the actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

11. Provision for Current and Deferred Tax:

i. Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

ii. Provision for Deferred Tax resulting from Timing Difference'' between books and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance Sheet date. The deferred tax asset is recog. nized only to the extent that there is a reasonable certainty that the assets will be adjusted in future.

12. Borrowing Cost:

Borrowing costs are charged to Profit and Loss Account, except in cases where borrowings are directly attributable to acquisition, construction or production of a qualifying asset. A qualifying asset is one which necessarily takes substantial period of time to get ready for intended use.

13. Impairment of Assets:

Provision for impairment loss, if any, is recognized to the extent by which the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is determined on the basis of the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

14. Provisions, Contingent Liabilities and Contingent Assets:

i. 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 past event,

b. The probable outflow of resources is expected to settle the obligation, and

c. The amount of obligation can be reliably estimated.

-ii. Contingent liabilities are disclosed in the case of:

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

b. A possible obligation unless the probability of outflow of resources is remote.

iii. Contingent Assets are neither recognized nor disclosed.

Provisions & Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects and the amounts are reviewed at each balance sheet date.

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Mar 31, 2012

A-1. Method of accounting:

The financial statements have been prepared under historical cost convention on accrual basis and comply with notified accounting standards as referred to in Section 211 (3C) and other relevant provisions of the Companies Act, 1956; unless otherwise specified.

A-2. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and reported amounts of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

A-3. Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation or amortization. Cost is inclusive of freight, duties, taxes (to the ex- tent of credit not availed) and incidental expenses related to acquisition, installation, erection and commissioning. Financing cost relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

Goodwill is stated at a nominal value of Re. 1/-

A-4. Depreciation and Amortization:

a. Depreciation on Fixed Assets has been charged on Written Down Value Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956, except as stated in Para (b) & (c) below.

b. Cost of Leasehold Land is amortized over remaining period of lease agreement.

c. Computer Softwares are being amortized over their estimated useful life of 6 years.

A-5. Investments:

Long term investments are stated at cost. Provision is made to recognize the decline, other than temporary in nature, in carrying amount of such investments. Current investments are stated at the lower of cost or fair value.

A-6. Inventories:

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

b. Cost of raw materials, components, consumables, tools, stores and spares is arrived at on weighted average cost basis.

c. Cost of finished goods and Work in progress is arrived at on the basis of weighted average cost of raw material and other cost of conversion thereof for bringing the inventories up to their present location and condition.

A-7. Foreign Currency Transactions:

a. Initial Recognition: Foreign Currency Transactions are translated into Indian Rupee at the exchange rates prevailing on the date of transactions.

b. Conversion: At the end of accounting year, the monetary items denominated in foreign currencies are restated at the exchange rates prevailing on the last day of the accounting year.

c. Exchange Differences: The exchange differences arising on settlement/ conversion of foreign currency transactions are recognized in Profit and Loss Account.

d. The financial statements of non-integral foreign operations are translated as per provisions of AS-11.

A-8. Research and Development Expenses

a. Research and Development Expenses, other than Capital Expenses are charged to Profit and Loss Account as and when incurred.

b. Capital expenditure incurred for research and development activities are included in respective Fixed Assets and Depreciation is provided as per rates specified, in Schedule XIV of the Companies Act, 1956.

A-9. Revenue Recognition:

a. Sales are accounted for net of Central Sales Tax and Value Added Tax.

b. Revenue from sale is recognized when the significant risks and rewards of ownership of goods have been passed to customers, which generally coincides with their removal from Factory.

c.Revenue from erection and commissioning services is recognized on percentage completion method.

d.Interest income is recognized on accrual basis at applicable interest rate.

e.Dividend income is recognized when the Company's right to receive dividend is established.

A-10. Warranty Costs:

Warranty obligations are accounted for as and when claims are admitted.

A-11. Employee Benefits:

a. Short Term Employee Benefits:

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, bonus and other allowances and short term compensated absences etc. are recognized in the period in which the employee renders the related services.

b. Post-Employment Benefits:

i. Defined Contribution Plans:

The State governed Employee Pension Scheme, Employees State Insurance Scheme, the Company's Provident Fund administered by an independent Trust and the Company's Superannuation Scheme are the defined contribution plans. The liability on account of company's contribution paid or payable under these schemes is recognized during the period in which the employee renders the related service and is charged to the Profit and Loss account. The Company has no further obligation beyond these contributions.

ii. Defined Benefit Plans:

The employees' gratuity fund scheme is the Company's defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

c. Long Term Employee Benefits:

The accruing liability on account of encashment of leave entitlement of employees as per the rules of the Company is determined and provided for on the basis of the actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

A-12. Provision for Current and Deferred Tax:

i. Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

ii. Provision for Deferred Tax resulting from 'Timing Difference' between books and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on Balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable certainty that the assets will be adjusted in future.

A-13. Borrowing Cost:

Borrowing costs are charged to Profit and Loss Account, except in cases where borrowings are directly attributable to acquisition, construction or production of a qualifying asset. A qualifying asset is one which necessarily takes substantial period of time to get ready for intended use.

A-14. Impairment of Assets:

Provision for impairment loss, if any, is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is determined on the basis of the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

A-15. Provisions, Contingent Liabilities and Contingent Assets:

i. 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 past event,

b. The probable outflow of resources is expected to settle the obligation, and

c. The amount of obligation can be reliably estimated.

ii. Contingent liabilities are disclosed in the case of:

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

b. A possible obligation unless the probability of outflow of resources is remote.

iii. Contingent Assets are neither recognized nor disclosed.

Provisions & Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects and the amounts are reviewed at each Balance Sheet date.

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Mar 31, 2010

1. Method of Accounting:

The financial statements have been prepared under historical cost convention on accrual basis and comply with notified accounting standards as referred to in Section 211 (3C) and other relevant provisions of the Companies Act, 1956, unless otherwise specified.

2. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and reported amounts of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation or amortization. Cost is inclusive of freight, duties, taxes (to the extent of credit not availed) and incidental expenses related to acquisition, installation, erection and commissioning. Financing cost relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. Goodwill is stated at a nominal value of Re. 1/-

4. Depreciation and Amortization:

a) Depreciation on Fixed Assets has been charged on Written Down Value Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956, except as stated in Para (b) & (c) below.

b) Cost of Leasehold Land is amortized over remaining period of lease agreement.

c) Computer Softwares are being amortized over their estimated useful life of 6 years.

5. Investments:

Long term investments are stated at cost. Provision is made to recognize the decline, other than temporary in nature, in carrying amount of such investments. Current investments are stated atthe lower of cost orfair value.

6. Inventories:

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

b) Cost of raw materials, components, consumables, tools, stores and spares is arrived at on weighted average cost basis.

c) Cost of finished goods and Work in progress is arrived at on the basis of weighted average cost of raw material and other cost of conversion thereof for bringing the inventories upto their present location and condition.

7. Foreign Currency Transactions:

a) Initial Recognition: Foreign Currency Transactions are translated into Indian Rupee at the exchange rates prevailing on the date of transactions.

b) Conversion: At the end of accounting year, the monetary items denominated in foreign currencies are restated at the exchange rates prevailing on the last day of the accounting year.

c) Exchange Differences: The exchange differences arising on settlement / conversion of foreign currency transactions are recognized in Profit and Loss Account.

d) The financial statements of non-integral foreign operations are translated as per provisions of AS-11.

8. Research and Development Expenses:

a) Research and Development Expenses, other than Capital Expenses are charged to Profit and Loss Account as and when incurred.

b) Capital expenditure incurred for research and development activities are included in respective Fixed Assets and Depreciation is provided as per rates specified, in Schedule XIV of the Companies Act, 1956.

9. Revenue Recognition:

a) Sales are accounted for net of Central Sales Tax and Value Added Tax. .

b) Revenue from sale is recognized when the significant risks and rewards of ownership of goods have been passed to customers, which generally coincides with their removal from factory.

c) Revenue from erection and commissioning services is recognized on percentage completion method.

d) Interest income is recognized on accrual basis at applicable interest rate.

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

10. Warranty Costs:

Warranty obligations are accounted for as and when claims are admitted.

11. Employee Benefits:

a) Short Term Employee Benefits:

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, bonus and other allowances and short term compensated absences etc. are recognized in the period in which the employee renders the related service.

b) Post-Employment Benefits:

i. Defined Contribution Plans:

The State governed Employee Pension Scheme, Employees State Insurance Scheme, the Companys Provident Fund administered by an independent Trust and the Companys Superannuation Scheme are the defined contribution plans. The liability on account of Companys contribution paid or payable under these schemes is recognized during the period in which the employee renders the related service and is charged to the Profit and Loss account. The Company has no further obligation beyond these contributions.

ii. Defined Benefit Plans:

The employees gratuity fund scheme is the Companys defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

c) Long Term Employee Benefits:

The accruing liability on account of encashment of leave entitlement of employees as per the rules of the Company is determined and provided for on the basis of the actuarial valuation from an independent actuary. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

12. Provision for Current and Deferred Tax:

I. Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

ii. Provision for Deferred Tax resulting from Timing Difference between books and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable certainty that the assets will be adjusted in future.

13. Borrowing Cost:

Borrowing costs are charged to Profit and Loss Account, except in cases where borrowings are directly attributable to acquisition, construction or production of a qualifying asset. A qualifying asset is one which necessarily takes substantial period of time to get ready for intended use.

14. Impairment of Assets:

Provision for impairment loss, if any, is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is determined on the basis of the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

15. Provisions, Contingent Liabilities and Contingent Assets:

i. 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 past event,

b. The probable outflow of resources is expected to settle the obligation, and

c. The amount of obligation can be reliably estimated.

ii. Contingent liabilities are disclosed in the case of:

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

b. A possible obligation unless the probability of outflow of resources is remote.

iii. Contingent Assets are neither recognized nor disclosed.

Provisions & Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects and the amounts are reviewed at each balance sheet date

16. Change in accounting policy related to Warranty:

During the year, the Company has changed the accounting policy in respect of warranty. No provision for warranty expenses is made in the books from current year onwards.

In earlier years, the Company was periodically assessing and providing for the estimated liability on sale of its products, based on past performance of such products.

Due to this change, Rs. 1.50 Lacs has been written back in the current year, which was appearing as Provision for Warranty in the books for previous years. The Company has incurred Rs.9.70 Lacs as warranty expenses in the current year.