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Accounting Policies of Hardcastle & Waud Manufacturing Company Ltd. Company

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

The financial statements are prepared to comply in all material aspects under the Historical Cost convention and in accordance with generally accepted accounting principles in India and the mandatory Accounting Standards prescribed under Section 133 of the Companies Act 2013 (Act') read with Rule-7 of the Companies (Accounts) Rules, 2014 and provisions of the Act (to the extent notified).

1.2 Use of Estimates

Preparation of financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting period. Although such estimates and assumptions are made on reasonable and prudent basis taking into account all available information, actual results could differ from these estimates and assumptions and such differences are recognised in the period in which results get crystallised.

1.3 Fixed Assets

Fixed Assets are stated at cost except Trade Marks which are valued based on valuation carried out by an independent agency,

1.4 Depreciation and Amortization

Depreciation on fixed assets is provided on straight line method according to the useful life mentioned in Schedule II Part C to the Companies Act, 2013, Leasehold assets are amortised over the respective residual lease period

1.5 Borrowing costs

Borrowing costs attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cosl of that asset. Other borrowing costs are recognized as expense in the period in which these are incurred.

1.6 Impairment of Assets

At each balance sheet date, the management reviews the carrying amounts of the assets included in each cash generating unit to determine whether there is any indication that those assets were impaired, if any such indication exists, the recoverable amount of the asset is estimaied in order to determine the extent of impairment. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognized as income in the statement of profit and loss.

1.7 Inventories

Raw materials Finished Goods, stores, components and other consumables are valued at cost or net realisable value whichever is lower. Work-in-progress is valued at cost on estimate.

1.8 Investments

Long term Investments are valued at cost. Provision for other than temporary diminution in value of such investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower.

1.9 Foreign Currency Transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction, Foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.10 Lease

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the less or, are recognized as operating leases. Lease rentals under operating leases are recognized in the Statement of Profit and Loss,

1.11 Revenue Recognition

Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible to estimate it with reasonable accuracy. Deferred revenue expenditure is written off over six years Dividends from investments are recognized when the company's right to receive payment is established

1.12 Employee Benefits

Short-term employee benefits (compensated absences) are recognised as expense at the undiscounted amount in the year in which the related service is rendered based on actuarial valuation made at end of the year. Post employment employee benefits are recognised as expense in the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains and losses in respect of post employment benefits are charged to the Statement of Profit and Loss.

1.13 Taxation

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. In the event of unabsorbed depreciation and carry forward of losses, deferred lax assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available to realize such assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

1.14 Cash and Cash Equivalents

Cash and cash equivalents in the Cash Flow Statement comprise cash al bank and in hand.

1.15 Segment Reporting

Identification of Segments: Segments are identified and reported taking into account the nature of products and services, the differing risks and returns, the organizational structure and the internal financial reporting system. The analysis of geographical segments is based and the areas in which major operating divisions of the Company operate. Allocation of common costs: Common allocable costs are allocated to each segment according to the turnover of the respective segments.


Mar 31, 2014

A) Fixed Assets

Stated at cost except Trade Marks which are valued based on valuation carried out by independent agencies

b) Borrowing costs

Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation *

Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. However, In case of Motor Vehicles & Office Computers, the rates are based on technical evaluation of the economic life of assets by the management which are 15% & 24% instead of 9.50% & 16.21% respectively specified in the said Schedule. In case of trade marks, the book value is written off over the residual period of the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value of Leasehold assets is amortised over the respective residual lease period.

d) Inventories

Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation. Cenvat on stocks is added to value of stocks Values of stocks of raw materials, stores and packing materials are determined on first-in first-out basis.

e) Investments

Long term Investments are valued at cost Provision for any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost

f) Foreign Currency Transactions

All foreign currency transactions are accounted for at prevailing rates on the respective date of transactions Liabilities remaining unsettled at the year-end are translated at year-end rates. Differences in transactions of assets and liabilities and realised gams and losses on foreign currency transactions are recognised in the Profit and Loss Account.

g) Lease

Lease Rentals are charged to/accounted for in Profit and Loss Account.

h) Revenue Recognition

Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible lo estimate it with reasonable accuracy. Deferred revenue expenditure is written off over six years.

Dividends from investments are recognized when the company's right to receive payment is established

i) Retirement Benefits

a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered based on actuarial valuations made at the end of the year.

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account for the year in which the employee has rendered V services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year Actuarial gains and losses in respect of post employment benefits are charged to the Profit & Loss Account.

j) Taxation

a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act. 1961 and considering assessment orders and decisions of appellate authorities

b) Deferred Tax for timing difference between tax profits and book profits is accounted for. using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

k) Impairment of Assets

Factors giving rise to any indication of any impairment of the carrying amount of the Company's assets are appraised at each Balance Sheet date to determine and provide/revert an impairment loss following Accounting Standard - 28 for Impairment of Assets

l) Accounting of Derivatives

Realised Income/Losses from dealings in derivative instruments are accounted for and the unrealised gains/losses are not considered till the derivative agreement is not completed. Such profits/losses are shown as exceptional items in the Profit and Loss Account.


Mar 31, 2012

A) Fixed Assets

Stated at cost except Trade Marks which are valued based on valuation carried out by independent agencies.

b) Borrowing costs

Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation

Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. However, in case of Motor Vehicles & Office Computers, the rates are based on technical evaluation of the economic life of assets by the management which are 15% & 24% instead of 9.50% & 16.21% respectively specified in the said Schedule. In case of trade marks, the book value is written off over the residual period of the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value of Leasehold assets is amortised over the respective residual lease period.

d) Inventories

Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation. Cenvat on stocks is added to value of stocks. Values of stocks of raw materials, stores and packing materials are determined on first-in first-out basis.

e) Investments

Long term Investments are valued at cost.Provision for any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost.

f) Foreign Currency Transactions

All foreign currency transactions are accounted for at prevailing rates on the respective date of transactions. Liabilities remaining unsettled at the year-end are translated at year-end rates. Differences in transactions of assets and liabilities and realised gains and losses on foreign currency transactions are recognised in the Profit and Loss Account.

g) Lease

Lease Rentals are charged/accounted for in Profit and Loss Account.

h) Revenue Recognisition

Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible to estimate it with reasonable accuracy. Deferred revenue expenditure is written off over six years.

i) Retirement Benefits

a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered based on actuarial valuations made at the end of the year,

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains and losses in respect of post employement benefits are charged to the Profit & Loss Account.

j) Taxation

a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities.

b) Deferred Tax for timing difference between tax profits and book profits is accounted for, using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

k) Impairment of Assets

Factors giving rise to any indication of any impairment of the carrying amount of the Company's assets are appraised at each Balance Sheet date to determine and provide/revert an impairment loss following Accounting Standard - 28 for Impairment of Assets.

I) Accounting of Derivatives

Realised Income/Losses from dealings in derivative instruments are accounted for and the unrealised gains/losses are not considered till the derivative agreement is not completed. Such profits/losses are shown as exceptional items in the Profit and Loss Account.


Mar 31, 2011

(I) Fixed Assets Stated at cost except Trade Marks which are valued based on valuation carried out by independent agencies.

(ii) Borrowing costs: Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

(iii) Depreciation:Depreciation on fixed assets is provided oh straight line method in accordance with Schedule XIV of the Companies Act. 1956. However, in case of Motor Vehicles & Office Computers, the rates are based on technical evaluation of the economic life of assets by the manaqement which are 15% & 24% instead of 9.50% & 16 21 % respectively specified in the said Schedule. In case of trade marks, (he book value is written off over the residua? period of the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value of Leasehold assets is amortised over the respective residual lease period

(iv) Inventories Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation Cenvat on stocks is added to value of stocks. Values of stocks of raw materials, stores and packing materials are determined on first-in first-out basis.

(v) Investments Long term Investments are valued at cost.Provision tor any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost.

(vi) Foreign Currency : All foreign currency transactions are accounted for at prevailing rates on the respective dale of transactions. Liabilities remaining unsettled at the year-end are translated Transactions at year-end rates. Differences in transactions of assets and liabilities and realised gains and losses on foreign currency transactions are recognised in the Profit and Loss Account.

(vii) Lease : Lease Rentals are charged/accounted for in Profit and Loss Account.

(viii) Revenue: Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible to estimate it with reasonable accuracy. Deferred revenue

Recognisition expenditure is written off over six.years.

(iX)Retirement : a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted amount in the Profit & Loss Account of the year in which the « Benefits related service is rendered based on actuarial valuations made at the end of the year

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account for the year in which the employee has rendered services The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains and losses in respect of post employement benefits are charged to the Profit & Loss Account.

(x) Taxation a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act. 1961 and considering assessment orders and decisions of appellate authorities.

b) DeferrecTTaxfor timing difference between tax profits and book profits is accounted for, using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

(xi) Impairment of Factors giving rise to any indication of any impairment of the carrying amount of the Company s assets are appraised at each Balance Sheet date to determine and provide/

Assets revert an impairment toss following Accounting Standard-28 for Impairment of Assets.

(xii) Accounting of derivative : Realised Income/Losses from dealings in instruments are accounted for and the unrealised gains/losses are not considered till the derivative agreement is not Derivatives completed. Such profits/losses are shown as exceptionalitems in the Profit and Loss Account


Mar 31, 2010

(i) Fixed Assets : Valued at cost except Trade Marks which are valued based on valuation carried out by independent agencies.

(ii) Borrowing costs : Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

(iii) Depreciation Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. However, in case of trade marks, the book value is written off over the residual periodof the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value, of Leasehold assets is amortised over the respective residual lease period.

(iv) Inventories : Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation. Cenvat on stocks is added to value of stocks. Values of stocks of raw materials, stores and packing materials are determined on first-in first- out basis.

(v) Investments : Long term Investments are valued at cost.Provision for any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost.

(vi) Foreign Currency : All foreign currency transactions are accounted for at prevailing rates on the respective date of transactions. Liabilities remaining unsettled Transactions at the year-end are translated at year-end rates. Differences in transactions of assets and liabilities and realised gains and tosses on foreign currency Transactions are recognised in the Profit and Loss Account.

(vii) Lease Lease Rented are charged/accounted for in Profit and Loss Account.

(viii) Revenue Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it Recognisition is not possible to estimate it with reasonable accuracy. Deterred revenue expenditure is written off over six years.

(ix) Retirement a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted Benefits amount in the Profit & Loss Account of the year in whicn the related service is rendered based on actuarial valuations made at the end of the year.

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account Account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains & losses in respect of post employement benefits are charged to the Profit & Loss Account.

(x) Taxation : a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities.

b) Deferred Tax for timing difference between tax profits and book profits is accounted for, using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

(xi) Impairment Factors giving rise to any indication of any impairment of the carrying amount of the Companys assets of Assets are appraised at each Balance Sheet date to determine and provide/ revert an impairment loss following Accounting Standard - 28 for Impairment of Assets.

(xii) Accounting : Realised lncome/Losses from dealings in derivative instruments are accounted for and the unrealised of Derivatives gains/losses are not considered till the derivative agreement is not completed. Such profits/losses are shown as exceptional items in the Profit and Loss Account.

 
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