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Accounting Policies of GEE Ltd. Company

Mar 31, 2015

The Company is engaged in the business of manufacturing of Welding electrodes, Copper coated wires, flux cored wires and welding fluxes. The manufacturing activities are located in Kalyan & Kolkata.

The company is a Public Limited Company.

Basis of Preparation of Financial Statements

The Financial statements of the Company have been prepared on accrual basis under historical cost convention, in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with Accounting Standards specified in Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard or a moreappropriate presentation of the financial statements requiresa change in the accounting policy hitherto in use.

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 statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.The management believes that the estimates used in the preparation offinancial statements are prudent and reasonable.

Fixed Assets

Fixed assets are stated at cost of acquisition except certain items, which have been shown at revalued amount. Direct costs are capitalized until assets are ready to be put to use and are stated net of modvat/cenvat.

Thecost of assets not ready for use as at the balance sheet date is disclosed under capital work-in-progress.

Intangible assets are recognized only if it is probable that thefuture economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

Leased Assets

i. Assets taken on finance lease, including taken on hire purchase arrangements, wherein the Company has an option to acquire the asset,are accounted for as fixed assets in accordance with the Accounting Standard 19 on"leases"(AS 19).

ii. Assets taken on lease under which the lessor effectively retains all the riskand rewards of ownership are classified as operating lease.Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

iii. The cost of improvements to lease properties are capitalized and disclosed appropriately.

Depreciation

Assets are depreciated / amortized on pro rata on straight line basis over the useful lives of the assets, as prescribed under Schedule II of the Companies Act,2013 with effect from 1st April,2014except as under:

a) Depreciation on leasehold land is provided upto 31.3.1994.No depreciation has been charged on leasehold land in subsequent years.

b) Depreciation on Leasehold land, buildings and plant & machinery subject to revaluation, is calculated on the respective revalued amounts, over the balance useful life as determined by the valuation experts.

c) For assets whose remaining useful life as on 1st April 2014 is nil, the carrying amount of such asset after deducting the residual value is charged fully to the Statement of profit and loss.

Depreciation is charged on a proportionate basis for all assets purchased and sold during the period. Individual assets costing less than Rs.5,000are depreciated in full in the period of purchase.

Impairment of Assets:

In compliance with Accounting Standard (AS) 28 -"Impairment of Assets," the Company assesses at each Balance Sheet date whether there is any indication that an asset is impaired where the carrying amount of the asset exceeds its recoverable value. If any such indication exists, then an impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed ift here has been a change in the estimate of recoverable amount.

Investments

Long term investments are stated at cost less provision for diminution other than temporary, if any.Current investments are valued at lower of cost and market value

Inventories

Inventories are valued at lower of cost and net realisable value,cost being ascertained on the following basis:

a) Raw materials,stores,spares,consumable tools and components:on First in First out (FIFO) formula.

b) Work-in-process,finished /trading goods include cost of conversion and other costs incurred in bringing the inventoriesto their present location and conditions.

c) Cost includes taxes and duties and is net of credits under Cenvat/VAT.

Revenue recognition

a) Revenue from sale of products is recognized on dispatch or appropriation of goods in accordance with the terms of sale and is net of sales Tax/Vat and applicable discounts.

b) Materials returned/rejected are accounted for in the year of return/rejection.

c) Export entitlements and other Government grants, if any recognized in the accounts on receipt after the consideration of certainty of their receipt.

d) Dividend income is recognised when the right to receive the dividend is established.

e) Insurance claims are accounted on acceptance/certainty of recovery.

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

Employee benefits

a) Short term employee benefi tobligations are estimated and provided for.

b) Post employment benefitsand other long term employee benefits

Defined contribution plans:

Company's contribution to Provident fund, employee state insurance and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined Benefit plans:

Company's liability towards gratuity and other retirement benefits are actuarially determined at each balance sheet date and provided with Life InsuranceCorporation of India.

Taxes, Duties, etc.

Excise duty has been accounted for in respect of goods cleared and provision has also been made for goods lying in stock at the year-end.This accounting treatment has no impact on the profit for the year.

Taxation

Provision for taxation is made on the basis of estimated taxable income for current accounting year in accordance with IncomeTax Act, 1961.

DeferredTax is recognized on timing differences;being the difference between taxable income and accounting income that originate in one period and are capableof reversing in one or more subsequent periods.

Earnings perShare

Basicearnings per share is calculated by dividing the net profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for stock splits.

Derivative Transactions - Equity & Commodities Futures and options

Gains are recognized only on settlement/expiry of derivative instruments.

All open positions are marked to market and unrealized losses are provided for.Unrealized gains,if any,on marked to market are not recognized.

Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote.no provision or disclosure is made.


Mar 31, 2014

ACCOUNTING CONVENTION

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956 read with the Companies (Accounting Standard) Rules, 2006 notified under section 211 (3c) of the Companies Act, 1956, except so far as they relate to insurance claims which are accounted on acceptance or certainty of recovery.

Presentation and disclosure of financial statements

The Company has prepared and presented financial statements in Revised Schedule VI. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of the financial statements. However it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balance of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from the estimates.

Fixed Assets and depreciation

Fixed assets are stated at the cost of acquisition except certain items, which have been shown at revalued amount. Direct costs are capitalized until assets are ready to be put to use and are stated net of modvat / cenvat.

The cost of assets not ready for use as at the balance sheet date is disclosed under capital work-in-progress.

In compliance with Accounting Standard (AS) 28 - "Impairment of Assets" the Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

Assets are depreciated /amortised, as below, on straight line basis:

a) Depreciation on leasehold land is provided upto 31.3.1994. No depreciation has been charged on leasehold land in subsequent years.

b) Leasehold land, buildings and plant & machinery subject to revaluation, is calculated on the respective revalued amounts, over the balance useful life as determined by the valuation experts.

c) Assets acquired upto 31-3-1987, at the rates specified in the Income Tax Rules prevalent in the respective years. Buildings, plant & machinery and other assets, acquired after 1.4.1987, at the rates specified in Schedule XIV to the Companies Act, 1956.

d) Depreciation is charged on a proportionate basis for all assets purchased and sold during the period. Individual assets costing less than Rs. 5,000 are depreciated in full in the period of purchase.

Leased Assets

i. Assets taken on finance lease, including taken on hire purchase arrangements, wherein the Company has an option to acquire the asset, are accounted for as fixed assets in accordance with the Accounting Standard 19 on "Leases" (AS 19).

ii. Assets taken on lease under which the lessor effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

iii. The cost of improvements to lease properties are capitalized and disclosed appropriately.

Intangible assets

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

Investments

Long term investments are stated at cost less provision for diminution other than temporary, if any. Current investments are valued at lower of cost and market value.

Inventories

Inventories are valued at lower of cost and net realisable value, cost being ascertained on the following basis:

a) Raw materials, stores, spares, consumable tools and components: on First in First out (FIFO) formula.

b) Work-in-process, finished / trading goods include cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

c) Cost includes taxes and duties and is net of credits under Cenvat/VAT.

Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. Monetary assets and liabilities in foreign currency are translated at year end rates. Exchange differences arising on the settlement of transactions and translation of monetary items are recognized as income or expense.

Revenue recognition

a) Revenue from sale of products is recognized on dispatch or appropriation of goods in accordance with the terms of sale and is net of sales tax/Vat and applicable discounts.

b) Materials returned/rejected are accounted for in the year of return/rejection.

c) Export entitlements and other Government grants, if any recognized in the accounts on receipt after the consideration of certainty of their receipt.

d) Dividend income is recognised when the right to receive the dividend is established.

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets ere capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Employee benefits

a) Short term employee benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits Defined contribution plans:

Company''s contribution to Provident fund, employee state insurance and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined Benefit plans:

Company''s liability towards gratuity and other retirement benefits are actuarially determined at each balance sheet date and provided with Life Insurance Corporation of India.

Taxes, Duties, etc.

Excise duty has been accounted for in respect of goods cleared and provision has also been made for goods lying in stock at the year-end. This accounting treatment has no impact on the profit for the year.

Taxation

Provision for taxation is made on the basis of estimated taxable income for current accounting year in accordance with Income Tax Act, 1961. Deferred Tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Earnings per Share

Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for stock splits.

Derivative Transactions - Equity & Commodities Futures and options Gains are recognized only on settlement/ expiry of derivative instruments.

All open positions are marked to market and unrealized losses are provided for. Unrealizedgains,ifany,on marked to market are not recognized.

Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2013

ACCOUNTINGCONVENTION

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles in India and provisions of the Companies Act'''' 1956 read with the Companies (Accounting Standard) Rules'''' 2006 notified under section 211 (3c) of the Companies Act'''' 1956''''except so far as they relate to insurance claims which are accounted on acceptance or certainty of recovery.

Presentation and disclosure of financial statements

The Company has prepared and presented financial statements in Revised Schedule Vl.The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of the financial statements. However it has significant impact on presentation and disclosures made in the financial statements.The Company has also reclassified the previous year figures in accordance with the requirements applicable in the currentyear.

Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balance of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period.Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differfrom the estimates.

Fixed Assets and depreciation

Fixed assets are stated at the cost of acquisition except certain items'''' which have been shown at revalued amount. Direct costs are capitalized until assets are ready to be putto useand are stated net of modvat/cenvat.

The cost of assets not ready for use as at the balance sheet date is disclosed under capital work-in-progress.

In compliance with Accounting Standard (AS) 28 -"Impairment of Assets"the Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired.lf any such indication exists''''the recoverable amount of the asset is estimated. An impairment loss is recognized wheneverthe carrying amount of an asset exceeds its recoverable amount.

Assets are depreciated /amortised''''as below''''on straight line basis:

a) Depreciation on leasehold land is provided upto31.3.1994.Nodepreciation has been charged on leasehold land in subsequentyears.

b) Leasehold land'''' buildings and plant & machinery subject to revaluation'''' is calculated on the respective revalued amounts'''' over the balance useful life as determined by the valuation experts.

c) Assets acquired upto 31-3-1987'''' at the rates specified in the Income Tax Rules prevalent in the respective years. Buildings'''' plant & machinery and other assets''''acquired after 1.4.1987''''at the rates specified in Schedule XIV to the Companies Act'''' 1956.

d) Depreciation is charged on a proportionate basis for all assets purchased and sold during the period.lndividual assets costing less than Rs.5''''000are depreciated in full in the period of purchase.

Leased Assets

i. Assets taken on finance lease'''' including taken on hire purchase arrangements'''' wherein the Company has an option to acquire the asset'''' are accounted for as fixed assets in accordance with the Accounting Standard 19 on "Leases" (AS 19).

ii. Assets taken on lease under which the lessor effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

iii. The cost of improvements to lease properties are capitalized and disclosed appropriately. Intangibleassets

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the costoftheassetscan be measured reliably.

Investments

Long term investments are stated at cost less provision for diminution other than temporary'''' if any. Current investments are valued at lower of cost and marketvalue.

Inventories

Inventories are valued at lower of cost and net realisable value''''cost being ascertained on the following basis:

a) Raw materials''''stores''''spares''''consumable tools and components:on First in First out (FIFO) formula.

b) Work-in-process'''' finished / trading goods include cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

c) Cost includes taxes and duties and is net of credits under Cenvat / VAT.

Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. Monetary assets and liabilities in foreign currency are translated at year end rates. Exchange differences arising on the settlement of transactions and translation of monetary items are recognized as income or expense.

Revenue recognition

a) Revenue from sale of products is recognized on dispatch or appropriation of goods in accordance with the terms of sale and is net of sales tax/Vat and applicable discounts.

b) Materials returned/rejected are accounted for in the year of return/rejection.

c) Export entitlementsandotherGovernmentgrants''''if any recognized in the accounts on receipt after the consideration of certainty of their receipt.

d) Dividend income is recognised when the right to receive the dividend is established.

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets.A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Employee benefits

a) Short term employee benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits Defined contribution plans:

Company''s contribution to Provident fund''''employee state insurance and other funds are determined under the relevant schemes and / or statute and charged to revenue.

Defined Benefit plans:

Company''s liability towards gratuity and other retirement benefits are actuarially determined at each balance sheet date and provided with Life

Insurance Corporation of India.

Taxes'''' Duties'''' etc.

Excise duty has been accounted for in respect of goods cleared and provision has also been made for goods lying in stock at the year-end.This accounting treatment has no impact on the profit fortheyear.

Taxation

Provision for taxation is made on the basis of estimated taxable income for current accounting year in accordance with Income Tax Act'''' 1961. Deferred Tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Earnings perShare

Basic earnings per share iscalculated by dividing the net profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share'''' and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period'''' unless issued at a later date.The number of shares and potentially dilutive equity shares are adjusted for stock splits.

Derivative Transactions-Equity & Commodities Futures and options

Gainsare recognized only on settlement/expiry of derivative instruments.

All open positionsare marked to market and unrealized lossesare provided for.Unrealizedgains''''ifany''''on marked to market are not recognized.

Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may'''' but probably will not'''' require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote''''no provision or disclosure is made.


Mar 31, 2012

ACCOUNTING CONVENTION

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956 read with the Companies (Accounting Standard) Rules, 2006 notified under section 211 (3c) of the Companies Act, 1956, except so far as they relate to insurance claims which are accounted on acceptance or certainty of recovery.

Presentation and disclosure of financial statements

The Company has prepared and presented financial statements in Revised Schedule VI.The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of the financial statements. However it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balance of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from the estimates.

Fixed Assets and depreciation

Fixed assets are stated at the cost of acquisition except certain items, which have been shown at revalued amount. Direct costs are capitalized until assets are ready to be put to use and are stated net of modvat /cenvat.

The cost of assets not ready for use as at the balance sheet date is disclosed under capital work-in-progress.

In compliance with Accounting Standard (AS) 28 - "Impairment of Assets" the Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

Assets are depreciated /amortized, as below, on straight line basis:

a) Depreciation on leasehold land is provided up to 31.3.1994.Nodepreciation has been charged on leasehold land in subsequent years.

b) Leasehold land, buildings and plant & machinery subject to revaluation, is calculated on the respective revalued amounts, over the balance useful life as determined by the valuation experts.

c) Assets acquired up to 31-3-1987, at the rates specified in the Income Tax Rules prevalent in the respective years. Buildings, plant & machinery and other assets, acquired after 1.4.1987,at the rates specified in Schedule XIV to the Companies Act, 1956.

d) Depreciation is charged on a proportionate basis for all assets purchased and sold during the period. Individual assets costing less than Rs. 5,000 are depreciated in full in the period of purchase.

Leased Assets

i. Assets taken on finance lease, including taken on hire purchase arrangements, wherein the Company has an option to acquire the asset, a re accounted for as fixed assets in accordance with the Accounting Standard 19 on "Leases"(AS 19).

ii. Assets taken on lease under which the less or effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

iii. The cost of improvements to lease properties are capitalized and disclosed appropriately.

Intangible assets

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

Investments

Long term investments are stated at cost less provision for diminution other than temporary, if any. Current investments are valued at lower of cost and market value.

Inventories

Inventories are valued at lower of cost and net realizable value, cost being ascertained on the following basis:

a) Raw materials, ,spares, consumable tools and components: on First in First out (FIFO) formula.

b) Work-in-process, finished / trading goods include cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

c) Cost includes taxes and duties and is net of credits under Cenvat/VAT.

Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. Monetary assets and liabilities in foreign currency are translated at year end rates. Exchange differences arising on the settlement of transactions and translation of monetary items are recognized as income or expense.

Revenue recognition

a) Revenue from sale of products is recognized on dispatch or appropriation of goods in accordance with the terms of sale and is net of sales tax/Vat and applicable discounts.

b) Materials returned/rejected are accounted for in the year of return/rejection.

c) Export entitlements and other Government grants, if any recognized in the accounts on receipt after the consideration of certainty of their receipt.

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

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part ofthe cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Employee benefits

a) Short term employee benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits Defined contribution plans:

Company's contribution to Provident fund, employee state insurance and other funds are determined under the relevant schemes and / or statute and charged to revenue.

Defined Benefit plans:

Company's liability towards gratuity and other retirement benefits are actuarially determined at each balance sheet date and provided with Life Insurance Corporation of India.

Taxes, Duties, etc.

Excise duty has been accounted for in respect of goods cleared and provision has also been made for goods lying in stock at the year-end. This accounting treatment has no impact on the profit for the year.

Taxation

Provision for taxation is made on the basis of estimated taxable income for current accounting year in accordance with Income Tax Act, 1961. Deferred Tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Earnings per Share

Basic earnings per share is calculated by dividing the net profit after Tax for the year at attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for stock splits.

Derivative Transactions - Equity & Commodities Futures and options

Gainsarerecognized only unsettlement/expiry of derivative instruments.

All open positions are marked to market and unrealized losses are provided for. Unrealized gains, if any, on marked to market are not recognized.

Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2011

Accounting Convention

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the generally accepted principles in India and provisions of the Companies Act, 1956 read with the Companies (Accounting Standard) Rules, 2006 except so far as they relate to insurance claims which are accounted on acceptance or certainty of recovery.

Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balance of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from the estimates.

Fixed Assets and Depreciation

Fixed assets are stated at the cost of acquisition except certain items, which have been shown at revalued amount. Direct costs are capitalized until assets are ready to be put to use and are stated net of modvat / cenvat.

Advances paid towards acquisition of fixed assets and the cost of assets not ready for use as at the balance sheet date are disclosed under capital work-in-progress.

In compliance with Accounting Standard (AS) 28 - "Impairment of Assets", the Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

Assets are depreciated /amortised, as below, on straight line basis:

a) Depreciation on leasehold land is provided upto 31.3.1994. No depreciation has been charged on leasehold land in subsequent years.

b) Leasehold land, buildings and plant & machinery subject to revaluation, is calculated on the respective revalued amounts, over the balance useful life as determined by the valuation experts.

c) Assets acquired upto 31-3-1987, at the rates specified in the Income Tax Rules prevalent in the respective years. Buildings, plant & machinery and other assets, acquired after 1.4.1987, at the rates specified in Schedule XIV to the Companies Act, 1956.

d) Depreciation is charged on a proportionate basis for all assets purchased and sold during the period. Individual assets costing less than Rs. 5,000 are depreciated in full in the period of purchase.

Investments

Long term investments are stated at cost less provision for diminution other than temporary, if any. Current investments are valued at lower of cost and market value.

Inventories

Inventories are valued at lower of cost and net realisable value, cost being ascertained on the following basis:

a) Raw materials, stores, spares, consumable tools and components: on First in First out (FIFO) formula.

b) Work-in-process, finished / trading goods include cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

c) Cost includes taxes and duties and is net of credits under Cenvat /VAT.

Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. Monetary assets and liabilities in foreign currency are translated at year end rates. Exchange differences arising on the settlement of transactions and translation of monetary items are recognized as income or expense.

Revenue Recognition

a) Revenue from sale of products is recognized on dispatch or appropriation of goods in accordance with the terms of sale and is net of sales tax/Vat and applicable discounts.

b) Materials returned/rejected are accounted for in the year of return/rejection.

c) Export entitlements and other Government grants, if any recognized in the accounts on receipt after the consideration of certainty of their receipt.

d) Derivative transactions are considered as off Balance Sheet items and cash flows arising there from are recognized in the accounts on their respective settlement as per terms of contract.

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

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Employee Benefits

a) Short term employee benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits:

Defined Contribution plans:

Company's contribution to Provident fund, employee state insurance and other funds are determined under the relevant schemes and / or statute and charged to revenue.

Defined Benefit plans:

Company's liability towards gratuity and other retirement benefits are actuarially determined at each balance sheet date and provided with Life Insurance Corporation of India.

Taxes, Duties, etc.

Excise duty has been accounted for in respect of goods cleared and provision has also been made for goods lying in stock at the year-end.This accounting treatment has no impact on the profit for the year.

Taxation

Provision for taxation is made on the basis of estimated taxable income for current accounting year in accordance with Income Tax Act, 1961.

Deferred Tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Earnings per Share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for stock splits.

Provisions and Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2010

Accounting Convention

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the generally accepted principles in India and provisions of the Companies Act, 1956 read with the Companies (Accounting Standard) Rules, 2006 except so far as they relate to insurance claims which are accounted on acceptance or certainty of recovery.

Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balance of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from the estimates.

Fixed Assets and Depreciation

Fixed assets are stated at the cost of acquisition except certain items, which have been shown at revalued amount. Direct costs are capitalized until assets are ready to be put to use and are stated net of modvat / cenvat.

Advances paid towards acquisition of fixed assets and the cost of assets not ready for use as at the balance sheet date are disclosed under capital work-in-progress.

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the greater of the net selling price and value in use. The Company follows Accounting Standard 28 pronounced by The Institute of Chartered Accountants of India for accounting impairment loss of assets.

Assets are depreciated / amortised, as below, on straight line basis:

a) Depreciation on leasehold land is provided upto 31.3.1 994. No depreciation has been charged on leasehold land in subsequent years.

b) Leasehold land, buildings and plant & machinery subject to revaluation, is calculated on the respective revalued amounts, over the balance useful life as determined by the valuation experts.

c) Assets acquired upto 31-3-1987, at the rates specified in the Income Tax Rules prevalent in the respective years. Buildings, plant & machinery and other assets, acquired after 1.4.1987, at the rates specified in Schedule XIV to the Companies Act, 1956.

d) Depreciation is charged on a proportionate basis for all assets purchased and sold during the period. Individual assets costing less than Rs. 5,000 are depreciated in full in the period of purchase.

Investments

Long term investments are stated at cost less provision for diminution other than temporary, if any. Current investments are valued at lower of cost and market value.

Inventories

Inventories are valued at lower of cost and net realisable value, cost being ascertained on the following basis:

a) Raw materials, stores, spares, consumable tools and components: on First in First out (FIFO) formula.

b) Work-in-process, finished / trading goods include cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

c) Cost includes taxes and duties and is net of credits under Cenvat/VAT.

Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing on the date of the transaction. Monetary assets and liabilities in foreign currency are translated at year end rates. Exchange differences arising on the settlement of transactions and translation of monetary items are recognized as income or expense.

Revenue Recognition

a) Revenue from sale of products is recognized on dispatch or appropriation of goods in accordance with the terms of sale and is net of sales tax/Vat and applicable discounts.

b) Materials returned/rejected are accounted for in the year of return/rejection.

c) Export entitlements and other Government grants, if any recognized in the accounts on receipt after the consideration of certainty of their receipt.

d) Derivative transactions are considered as off Balance Sheet items and cash flows arising there from are recognized in the accounts on their respective settlement as per terms of contract.

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

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Employee Benefits

a) Short term employee benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits:

Defined Contribution plans:

Companys contribution to Provident fund, employee state insurance and other funds are determined under the relevant

schemes and / or statute and charged to revenue.

Defined Benefit plans:

Companys liability towards gratuity and other retirement benefits are actuarially determined at each balance sheet date and

provided with Life Insurance Corporation of India.

Taxes, Duties, etc.

Excise duty has been accounted for in respect of goods cleared and provision has also been made for goods lying in stock at the year-end. This accounting treatment has no impact on the profit for the year.

Taxation

Provision for taxation is made on the basis of estimated taxable income for current accounting year in accordance with Income Tax Act, 1961.

Deferred Tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Earnings per Share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for stock splits.

Provisions and Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

 
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