Mar 31, 2015
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except for certain financial
instruments which are measured at fair value.
Under the historical cost convention on accrual basis, except for
certain financial instruments which are measured at fair value. These
fianacial statements have been prepared to comply in all material
aspects with the accounting stantards notified under section 133
(Companies (Accounting standards)Rules, 2006, as amended) and other
relevant provisions of the companies Act, 2013.
1.1 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.2 Inventories
Inventories are valued at the lower of cost on FIFO basis and the net
realisable value after providing for obsolescence and other losses,
where considered necessary. Cost includes all charges in bringing the
goods to the point of sale, including octroi and other levies, transit
insurance and receiving charges. Work-in-progress and finished goods
include appropriate proportion of overheads and, where applicable,
excise duty.
1.3 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.4 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.5 Depreciation and amortisation
Depreciation has been provided based on the net depreciable cost as at
01.07.2014 by taking into account the useful life of the asset as on
date per the provisions of Schedule II to the Companies Act, 2013.
1.6 Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
Income from services
Revenues from contracts priced on a time and material basis are
recognised when services are rendered and related costs are incurred.
Revenues from turnkey contracts, which are generally time bound fixed
price contracts, are recognised over the life of the contract using the
proportionate completion method, with contract costs determining the
degree of completion. Foreseeable losses on such contracts are
recognised when probable.
Revenues from maintenance contracts are recognised pro-rata over the
period of the contract.
1.7 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets. Machinery spares which can be
used only in connection with an item of fixed asset and whose use is
expected to be irregular are capitalised and depreciated over the
useful life of the principal item of the relevant assets. Subsequent
expenditure relating to fixed assets is capitalised only if such
expenditure results in an increase in the future benefits from such
asset beyond its previously assessed standard of performance. Fixed
assets acquired and put to use for project purpose are capitalised and
depreciation thereon is included in the project cost till commissioning
of the project.
Fixed assets acquired in full or part exchange for another asset are
recorded at the fair market value or the net book value of the asset
given up, adjusted for any balancing cash consideration. Fair market
value is determined either for the assets acquired or asset given up,
whichever is more clearly evident. Fixed assets acquired in exchange
for securities of the Company are recorded at the fair market value of
the assets or the fair market value of the securities issued, whichever
is more clearly evident.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the Balance Sheet.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses and attributable interest.
1.8 Intangible assets
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and other taxes (other
than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is
recognised as an expense when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits
in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of the asset.
1.9 Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non- integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates.
In the case of integral operations, assets and liabilities (other than
non-monetary items), are translated at the exchange rate prevailing on
the Balance Sheet date. Non-monetary items are carried at historical
cost. Revenue and expenses are translated at the average exchange rates
prevailing during the year. Exchange differences arising out of these
translations are charged to the Statement of Profit and Loss.
Treatment of exchange differences
"Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss. The exchange differences on restatement /
settlement of loans to non-integral foreign operations that are
considered as net investment in such operations are accumulated in a
"Foreign currency translation reserve" until disposal / recovery of the
net investment.
The exchange differences arising on restatement / settlement of
long-term foreign currency monetary items are capitalised as part of
the depreciable fixed assets to which the monetary item relates and
depreciated over the remaining useful life of such assets or amortised
on settlement / over the maturity period of such items if such items do
not relate to acquisition of depreciable fixed assets. The unamortised
balance is carried in the Balance Sheet as "Foreign currency monetary
item translation difference account" net of the tax effect thereon."
1.10 Government grants, subsidies and export incentives
Government grants and subsidies are recognised when there is reasonable
assurance that the Company will comply with the conditions attached to
them and the grants / subsidy will be received. Government grants whose
primary condition is that the Company should purchase, construct or
otherwise acquire capital assets are presented by deducting them from
the carrying value of the assets. The grant is recognised as income
over the life of a depreciable asset by way of a reduced depreciation
charge.
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receiving the same.
"Government grants in the nature of promoters' contribution like
investment subsidy, where no repayment is ordinarily expected in
respect thereof, are treated as capital reserve. Government grants in
the form of non- monetary assets, given at a concessional rate, are
recorded on the basis of their acquisition cost. In case the non-
monetary asset is given free of cost, the grant is recorded at a
nominal value.
Other government grants and subsidies are recognised as income over the
periods necessary to match them with the costs for which they are
intended to compensate, on a systematic basis."
1.11 Investments
"Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties. Investment properties are carried individually at cost less
accumulated depreciation and impairment, if any. Investment properties
are capitalised and depreciated (where applicable) in accordance with
the policy stated for Tangible Fixed Assets. Impairment of investment
property is determined in accordance with the policy stated for
Impairment of Assets."
1.12 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
1.13 Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product's technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
1.14 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
1.15 Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
fund, compensated absences, long service awards and post-employment
medical benefits.
Defined contribution plans
The Company's contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
Defined benefit plans
For defined benefit plans in the form of gratuity fund and
post-employment medical benefits, the cost of providing benefits is
determined using the Projected Unit Credit method, with actuarial
valuations being carried out at each Balance Sheet date. Actuarial
gains and losses are recognised in the Statement of Profit and Loss in
the period in which they occur. Past service cost is recognised
immediately to the extent that the benefits are already vested and
otherwise is amortised on a straight-line basis over the average period
until the benefits become vested. The retirement benefit obligation
recognised in the Balance Sheet represents the present value of the
defined benefit obligation as adjusted for unrecognised past service
cost, as reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to past service cost, plus
the present value of available refunds and reductions in future
contributions to the schemes.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employee renders the related service. The cost of such
compensated absences is accounted as under :
(a) in case of accumulated compensated absences, when employees render
the services that increase their entitlement of future compensated
absences; and
(b) in case of non-accumulating compensated absences, when the absences
occur.
Long-term employee benefits
Compensated absences which are not expected to occur within twelve
months after the end of the period in which the employee renders the
related service are recognised as a liability at the present value of
the defined benefit obligation as at the Balance Sheet date less the
fair value of the plan assets out of which the obligations are expected
to be settled. Long Service Awards are recognised as a liability at the
present value of the defined benefit obligation as at the Balance Sheet
date.
1.16 Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market / fair value factors.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue / expenses / assets /
liabilities.
1.17 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.18 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
1.19 Premium on redemption of Bonds/Debentures
Premium on redemptin of Bonds/Debentures, net of tax impact, are
adjusted against the Securities Premium Account.
Jun 30, 2014
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except for certain financial
instruments which are measured at fair value.
Under the historical cost convention on accrual basis, except for
certain financial instruments which are measured at fair value. These
financial statements have been prepared to comply in all material
aspects with the accounting standards notified under section 211(3C)
(Companies (Accounting standards)Rules, 2006, as amended) and other
relevant provisions of the companies Act, 1956.
1.1 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.2 Inventories
Inventories are valued at the lower of cost on FIFO basis and the net
realisable value after providing for obsolescence and other losses,
where considered necessary. Cost includes all charges in bringing the
goods to the point of sale, including octroi and other levies, transit
insurance and receiving charges. Work-in-progress and finished goods
include appropriate proportion of overheads and, where applicable,
excise duty.
1.3 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.4 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.5 Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
Assets costing less than ''Rupees 5,000/- each are fully depreciated in
the year of capitalisation
1.6 Revenue recognition Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
Income from services
Revenues from contracts priced on a time and material basis are
recognised when services are rendered and related costs are incurred.
Revenues from turnkey contracts, which are generally time bound fixed
price contracts, are recognised over the life of the contract using the
proportionate completion method, with contract costs determining the
degree of completion. Foreseeable losses on such contracts are
recognised when probable.
Revenues from maintenance contracts are recognised pro-rata over the
period of the contract.
1.7 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets. Machinery spares which can be
used only in connection with an item of fixed asset and whose use is
expected to be irregular are capitalised and depreciated over the
useful life of the principal item of the relevant assets. Subsequent
expenditure relating to fixed assets is capitalised only if such
expenditure results in an increase in the future benefits from such
asset beyond its previously assessed standard of performance.
Fixed assets acquired and put to use for project purpose are
capitalised and depreciation thereon is included in the project cost
till commissioning of the project.
Fixed assets acquired in full or part exchange for another asset are
recorded at the fair market value or the net book value of the asset
given up, adjusted for any balancing cash consideration. Fair market
value is determined either for the assets acquired or asset given up,
whichever is more clearly evident. Fixed assets acquired in exchange
for securities of the Company are recorded at the fair market value of
the assets or the fair market value of the securities issued, whichever
is more clearly evident.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the Balance Sheet.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses and attributable interest.
1.8 Intangible assets
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and other taxes (other
than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is
recognised as an expense when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits
in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of the asset.
1.9 Foreign currency transactions and translations Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in nonintegral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates.
In the case of integral operations, assets and liabilities (other than
non-monetary items), are translated at the exchange rate prevailing on
the Balance Sheet date. Non-monetary items are carried at historical
cost. Revenue and expenses are translated at the average exchange rates
prevailing during the year. Exchange differences arising out of these
translations are charged to the Statement of Profit and Loss.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss. The exchange differences on restatement /
settlement of loans to non-integral foreign operations that are
considered as net investment in such operations are accumulated in a
"Foreign currency translation reserve" until disposal / recovery of the
net investment.
The exchange differences arising on restatement / settlement of
long-term foreign currency monetary items are capitalised as part of
the depreciable fixed assets to which the monetary item relates and
depreciated over the remaining useful life of such assets or amortised
on settlement / over the maturity period of such items if such items do
not relate to acquisition of depreciable fixed assets. The unamortised
balance is carried in the Balance Sheet as "Foreign currency monetary
item translation difference account" net of the tax effect thereon.
1.10 Government grants, subsidies and export incentives
Government grants and subsidies are recognised when there is reasonable
assurance that the Company will comply with the conditions attached to
them and the grants / subsidy will be received. Government grants whose
primary condition is that the Company should purchase, construct or
otherwise acquire capital assets are presented by deducting them from
the carrying value of the assets. The grant is recognised as income
over the life of a depreciable asset by way of a reduced depreciation
charge.
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receiving the same.
Government grants in the nature of promoters'' contribution like
investment subsidy, where no repayment is ordinarily expected in
respect thereof, are treated as capital reserve. Government grants in
the form of nonmonetary assets, given at a concessional rate, are
recorded on the basis of their acquisition cost. In case the
nonmonetary asset is given free of cost, the grant is recorded at a
nominal value.
Other government grants and subsidies are recognised as income over the
periods necessary to match them with the costs for which they are
intended to compensate, on a systematic basis.
1.11 Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties. Investment properties are carried individually at cost less
accumulated depreciation and impairment, if any. Investment properties
are capitalised and depreciated (where applicable) in accordance with
the policy stated for Tangible Fixed Assets. Impairment of investment
property is determined in accordance with the policy stated for
Impairment of Assets.
1.12 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
1.13 Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product''s technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
1.14 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
1.15 Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
fund, compensated absences, long service awards and post-employment
medical benefits.
Defined contribution plans
The Company''s contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
Defined benefit plans
For defined benefit plans in the form of gratuity fund and
post-employment medical benefits, the cost of providing benefits is
determined using the Projected Unit Credit method, with actuarial
valuations being carried out at each Balance Sheet date. Actuarial
gains and losses are recognised in the Statement of Profit and Loss in
the period in which they occur. Past service cost is recognised
immediately to the extent that the benefits are already vested and
otherwise is amortised on a straight-line basis over the average period
until the benefits become vested. The retirement benefit obligation
recognised in the Balance Sheet represents the present value of the
defined benefit obligation as adjusted for unrecognised past service
cost, as reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to past service cost, plus
the present value of available refunds and reductions in future
contributions to the schemes.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employee renders the related service. The cost of such
compensated absences is accounted as under :
(a) in case of accumulated compensated absences, when employees render
the services that increase their entitlement of future compensated
absences; and
(b) in case of non-accumulating compensated absences, when the absences
occur.
Long-term employee benefits
Compensated absences which are not expected to occur within twelve
months after the end of the period in which the employee renders the
related service are recognised as a liability at the present value of
the defined benefit obligation as at the Balance Sheet date less the
fair value of the plan assets out of which the obligations are expected
to be settled. Long Service Awards are recognised as a liability at the
present value of the defined benefit obligation as at the Balance Sheet
date.
1.16 Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment. Inter-segment revenue is accounted on the
basis of transactions which are primarily determined based on market /
fair value factors. Revenue, expenses, assets and liabilities which
relate to the Company as a whole and are not allocable to segments on
reasonable basis have been included under unallocated revenue /
expenses / assets / liabilities.
1.17 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.18 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax
laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow
to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
realisability.
1.19 Premium on redemption of Bonds/Debentures
Premium on redemptin of Bonds/Debentures , net of tax impact, are
adjusted against the Securities Premium Account
Mar 31, 2011
1. System of Accounting
The Company adopts the accrual concept in the preparation of the
Accounts. The preparation of financial statements requires the
management to make estimates and assumptions considered in the reported
amounts of assets and liabilities (including contingent liabilities) as
of the date of the financial statements and reported income and
expenses during the reporting period. Management believes that the
estimates used in preparation of the financial statements are prudent
and reasonable. Future results could differ from the estimates.
2. Revenue Recognition
Revenue from services are recognised as and when the services are
performed. Sales are stated at selling price inclusive of all taxes.
Expenditure on software purchase and developed/customised during the
year is treated as revenue expenditure. Interest income: Interest
income is recognised on a time proportion basis.
3. Foreign Currency Transactions
i) Initial Recognition: Foreign currency transactions are recorded in
the reporting currency by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency
at the date of the transaction.
ii) Exchange Differences: Exchange differences arising on the
settlement of monetary items or on reporting companys monetary items
at rates different from those at which they were initially recorded
during the year or reported in previous financial statements are
recognised as income or as expenses in the year in which they arise.
iii) Conversion: Foreign Currency monetary items are reported using the
closing rate. Non monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using
the exchange rate at the date of the transaction; and non monetary
items which are carried at fair value denominated in a foreign currency
are reported using the exchange rates, that existed when the values
were determined.
4. Inventories
Raw materials: Raw materials are valued at cost or net realisable
values, whichever is lower on FIFO basis.
Project division: Work-in-progress is valued at the contract rates less
profit margin/estimates. Finished goods are Valued at cost.
5. Fixed Assets
i. Tangible Fixed Assets
Tangible Fixed Assets are stated at cost, less accumulated depreciation
and impairment losses, if any. Cost comprises the purchase price and
any attributable cost of bringing asset to its working condition for
its intended use. Borrowing cost relating to acquisition of fixed
assets which take a substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
ii. Intangible Fixed Assets and amortisation:
Intangible assets have finite useful lives and are measured at cost and
amortised over their expected useful economical lives as follows:
Research and development cost are expensed, except for certain
development cost which are capitalised from the time commercial and
technological feasibility criteria are met. Expenditure already charged
to the profit & loss account is not restated. The capitalised cost is
amortised on completion of the project over 5 years on a straight line
basis.
6. Depreciation and amortisation
Depreciation on tangible Fixed Assets is provided using the straight
line method, at the rates prescribed under schedule XIV of the
Companies Act, 1956. Depreciation on additions during the year is
provided on a pro-rata basis. Assets costing upto Rs. 5,000 each are
written off in the year of capitalisation.
Temporary sheds are amortised over the period of the project on project
Ãto-project basis
7. Income Taxes
Tax expense comprises of Current & Deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income tax Act. Deferred income tax reflects
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax assets and liabilities are measured based on tax rates and
laws enacted at the balance sheet date.
Deferred tax assets are recognised only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised. If
the company has carry forward of unabsorbed depreciation and tax
losses, deferred tax assets are recognised only if there is virtual
certainty, supported by convincing evidence, that such deferred tax
assets can be realised against future taxable profits. At each balance
sheet date, the company re-assesses unrecognised deferred tax assets.
Unrecognised deferred tax assets of earlier years are re-assessed and
recognised to the extent that it has become reasonable certain that
future taxable income will be available against which such deferred tax
assets can be realised.
8. Deferred Revenue Expenditure
FCCB issue expenses are being written off in proportion to conversion
of FCCBs into Equity Shares or repayment of such FCCBs (as the case may
be) as and when such conversion/repayment takes place.
9. Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. Current
investments are measured at cost. All other investments are classified
as long term investments. Long term investments are measured at cost,
however provision for diminution in value is made to recognise a
decline other than temporary in the value of the investments.
10. Employee Benefits- Retirement benefits
Employee Benefits like Provident Fund and Gratuity are charged to the
profit and loss account of the year when the contributions to the
respective accounts are due. There are no other obligations other than
the contributions payable to the respective authority / account.
11. Earning per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares out standing during the period
and is adjusted for the events of conversion of FCCBs.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity share holders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares, if
any.
12. Provisions
A provision is recognised when the company has a potential obligation
as a result of past event and it is provable that an out flow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
13. Cash and cash equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at
bank, Cash in hand, Fixed deposits and Un-claimed dividend a/c
14. Use of estimates:
The preparation of financial statement in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of
financial statements and the results of operation during the reporting
period end. Although these estimates are based upon management best
knowledge of current events and actions, actual results could differ
from these estimates.
15. Segment report policies
Identification of segments: The companys operating businesses are
organised and managed according to the nature of products and services
provided to offer similar products serving similar markets.
16. Borrowing cost
Borrowing costs include interest and commitment charges on borrowings,
amortisation costs incurred in connection with arrangement of
borrowings. Costs incurred on borrowings directly attributable to
project development, which take a substantial period of time to
complete, are capitalised within such time development / producing the
asset for each cost center.
All other borrowing costs are recognised in the profit and loss account
in the period in which they are incurred.
Mar 31, 2010
1. System of Accounting
The Company adopts the accrual concept in the preparation of the
Accounts. The preparation of financial statements requires the
management to make estimates and assumptions considered in the reported
amounts of assets and liabilities (including contingent liabilities) as
of the date of the financial statements and reported income and
expenses during the reporting period. Management believes that the
estimates used in preparation of the financial statements are prudent
and reasonable. Future results could differ from the estimates.
2. Revenue Recognition
Revenue from Services are recognized as and when the Services are
performed. Sales are stated at selling price inclusive of all taxes.
Expenditure on software purchase and developed/customized during the
year is treated as revenue expenditure. Interest income : Interest
income is recognized on a time proportion basis.
3. Foreign Currency Transactions
i) Initial Recognition: Foreign currency transactions are recorded in
the reporting currency by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency
at the date of the transaction.
ii) Exchange Differences: Exchange differences arising on the
settlement of monetary items or on reporting companys monetary items
at rates different from those at which they were initially recorded
during the year, or reported in previous financial statements are
recognized as income or as expenses in the year in which they arise.
iii) Conversion: Foreign Currency monetary items are reported using the
closing rate. Non monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using
the exchange rate at the date of the transaction; and non monetary
items which are carried at fair value denominated in a foreign currency
are reported using the exchange rates that existed when the values were
determined.
4. Inventories
i. Raw materials: Raw materials are valued at cost or net realizable
values, whichever is lower on FIFO basis. ii. Project division: Work
in progress is valued at the contract rates less profit
margin/estimates iii. Finished goods are Valued at cost.
5. Fixed Assets
i. Tangible Fixed Assets
Tangible Fixed Assets are stated at cost, less accumulated depreciation
and impairment losses, if any. Cost comprises the purchase price and
any attributable cost of bringing asset to its working condition for
its intended use. Borrowing cost relating to acquisition of fixed
assets which take a substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
ii. Intangible Fixed Assets and Amortization:
Intangible assets have finite useful lives and are measured at cost and
amortized over their expected useful economical lives as follows:
Research and development cost are expensed, except for certain
development cost which are capitalized from the time commercial and
technological feasibility criterias are met. Expenditure already
charged to the profit Et loss account is not restated. The capitalized
cost is amortized on completion of the project over 5 years on a
straight line basis.
6. Depreciation and Amortization
Depreciation on tangible Fixed Assets is provided using the straight
line method, at the rates prescribed under Schedule XIV of the
Companies Act, 1956. Depreciation on additions during the year is
provided on a pro-rata basis. Assets costing Rs. 5,000/-each are
written off in the year of capitalization.
Temporary sheds are amortized over the period of the project on project
-to-project basis
7. Income Taxes
Tax expense, comprises of current, deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred Income Tax reflects
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax assets and liabilities are measured, based on tax rates
and laws enacted are substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. If
the Company has carry forward of unabsorbed depreciation and tax losses
and deferred tax assets are recognized only if there is virtual
certainty, supported by convincing evidence, that such deferred tax
assets can be realized against future taxable profits. At each balance
sheet date, the Company re-assesses un recognized deferred tax assets.
Un recognized deferred tax assets of earlier years are re-assessed and
recognized to the extent that it has become reasonable certain that
future taxable income will be available against which such deferred tax
assets can be realized.
8. Deferred Revenue Expenditure
The Expenditure incurred on issue of FCCBs is amortized in proportion
to the conversion of FCCBs into Equity Share Capital as and when the
conversion takes place.
9. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. Current
investments are measured at cost All other investments are classified
as long term investments. Long term investments are measured at cost,
however provision for diminution in value is made to recognize a
decline other than temporary in the value of the investments.
10. Employee Benefits- Retirement benefits
Retirement benefits in the form of Provident Fund and Superannuation
scheme are defined contribution schemes and the contributions are
charged to the profit and loss account of the year when the
contributions to the respective funds are due. There are no other
obligations other than the contributions payable to the respective
authority.
11. Earning per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares out standing during the
period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the period attributable to equity share holders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares, if
any.
12. Provisions
A provision is recognized when the company has a potential obligation
as a result of past event and it is provable that an out flow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
13. Cash and cash equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at
bank, Cash in hand, Fixed deposits and Un claimed dividend a/c
14. Use of estimates:
The preparation of financial statement in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of
financial statements and the results of operation during the reporting
period end. Although these estimates-based upon management best
knowledge of current events and actions, actual results could differ
from these estimates.
15. Segment report policies
Identification of segments: The companys operating businesses are
organized and managed according to the nature of products and services
provided to offer similar products serving similar markets.
16. Borrowing cost
Borrowing costs include interest and commitment charges on borrowings,
amortization costs incurred in connection with arrangement of
borrowings. Costs incurred on borrowings directly attributable to
development projects, which take a substantial period of time to
complete, are capitalized within the development / producing asset for
each cost center.
All other borrowing costs are recognized in the profit and loss account
in the period in which they are incurred.
1. All amounts presented in the financial statements are in "Rupees in
Lakhs", except Per share data as other wise stated.
2. The figures of the previous year have been regrouped/recast to
render them comparable with the figures of the current year, as below:
a) During the current year, turnover has been reported in gross
(including taxes) figures. Accordingly, previous years turnover has
also been grossed up.
b) Cash and Bank Balances shown in the Balance Sheet including deposits
made towards margin monies and fixed deposits were regrouped and
reported for the previous year.
c) Project and service expenses consist of consumption of materials,
sub-contractor bills, purchase of software and other direct expenses.
Accordingly, previous year figures also have been regrouped and
reported.
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