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Accounting Policies of Indian Toners & Developers Ltd. Company

Mar 31, 2015

1.1 BASIS OF ACCOUNTING

The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance with all material aspect, with the applicable accounting principles in India. The applicable accounting standards notified under Section 133 and the other relevant provisions of the Companies Act 2013.

All the Assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent the Company has ascertained its operating cycle to be less than 12 months.

1.2 TANGIBLE AND INTANGIBLE FIXED ASSETS

a) Tangible Assets are stated at cost net of recoverable taxes, trade discounts less accumulated Depreciation provided for. The cost of tangible assets comprises its purchase price, borrowing cost and any cost attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from foreign exchange rate variations attributable to the assets.

Projects under which assets are not ready for their intended use are disclosed under Capital Work-in- Progress.

b) Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. The cost comprises of purchase price, borrowing costs, any cost directly attributable to bringing the assets to its working condition for the intended use.

1.3 DEPRICIATION AND AMORTIZATION OF FIXED ASSETS TANGIBLE ASSETS

a) Depreciation is provided on tangible assets on straight line method on all assets based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

b) Plant & Machinery is deprecated treating it as continuous process Plant (except R & D Plant), at rates and in the manner as per Part-C of Schedule II to the Companies Act, 2013 as amended vide notification no. GSR 237(E), dated 31.03.2014, w.e.f. 01.04.2014. Depreciation on assets added / deducted during the year is charged proportionate with reference to the date of additions / deductions.

c) Depreciation on R&D Plant & Machinery is charged, treating the sane as non-continuous, in the same manner as mentioned above.

d) Fixed assets individually costing up to rupees five thousand are depreciated at the rate of 100 percent.

INTANGIBLE ASSETS

a) Intangible assets, represented by product development are amortized over a period of five years from the quarter in which the same is put to its commercial use.

b) Software's are amortized on straight line method over a period of three years.

1.4 IMPAIRMENT OF ASSETS

The carrying amount of fixed assets are revised at each Balance Sheet date if there is any indication of impairment based upon internal / external factors. Any impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

1.5 LEASES

Operating Leases: There is only one operating lease i.e. the Company's corporate office at Jasola, New Delhi and rentals of the same are expensed on mercantile basis.

1.6 RESEARCH & DEVELOPMENT

Research costs are expensed as incurred and presented under the natural heads of expenditure.

Capital expenditure on Research & Developments is treated in the same manner as Fixed Assets. The Revenue expenditure on R &D (other than on product development) is charged off in the year in which the same are incurred. However, expenditure on development of new product is recognized as intangible asset to the extent it is expected that such asset will generate future economic benefits.

1.7 EMPLOYEE BENEFITS

* Contributions payable for provident fund and employee state insurance, which are defined contribution plans are charged to statement of profit & loss.

* Gratuity and leave encashment which are defined benefits plans are accrued, recognized and calculated on unit credit method, based on actuarial valuation, as at balance sheet date provided by L.I.C. and by an independent actuarial valuer respectively.

* The Company has opted for a group gratuity - cum Life Assurance Scheme of the Life Insurance Corporation of India for employees and the annual contribution for it is charged to the statement of profit & loss on the accrual basis.

* All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits such as salaries, wages and bonus etc. one recognized in the statement of profit & loss in the period in which the employee renders the related service.

1.8 INVESTMENTS

Investments that are readily and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. Current investments are carried at lower of cost and fair value. Non-current investments are carried at cost. However, provision of diminution is made to recognize as decline, other than temporary, in the value of investment, such reduction being determined and made for each investment individually.

1.9 INVENTORY VALUATION

Inventories are valued at lower of cost or net realizable value except scrap, which is valued at net estimated realizable value.

The methods of determining cost of various categories of inventories are as follows:

Raw Materials Stores & power & Fuel Weighted average method and packing Materials

Work-in -process and finished goods Variable Cost at weighted average including an appropriate share of variable and fixed production overheads. Fixed production over heads are included based on normal capacity of production facilities.

Cost includes all direct costs, cost of conversion and appropriate portion of variable and fixed production over heads and such other costs incurred as to bring the inventory to its present location and condition inclusive of excise duty wherever applicable. Cost formula used is based upon weighted average cost. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

1.10.FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rate prevailing on / or closely approximating to the date of transaction. Current Assets and Liabilities are restated at the rate prevailing at the period end or at the forward rate where forward cover for specific asset / liability has been taken. The difference between the period end rate and the exchange rate at the date of the transaction is recognized as income or expense in the Statement of profit & loss. In respect of forward exchange contracts, the difference (being premium / discounts) between the contract rate and the rate on the date of transaction is recognized as income or expense in the Statement of profit & loss over the life of the contract.

1.11. TAXATION

Current tax is provided at the rates in force, on the taxable profits arrived at with reference to the provisions of Income Tax Act, 1961.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and is written - down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

1.12. BORROWING COST

Borrowing Costs are charged to Statement of profit & loss, except when funds are specially borrowed to acquire fixed assets, in which case the same is capitalized till the date the subject assets are ready for the intended use.

1.13. The Company has the practice of providing for the liability on account of import duty on Raw material / Stores / Spares in transit or in Bonded Warehouse at the year end and providing for liability on account of Excise duty on stock of finished goods (other than stocks meant for Exports on which no Excise Duty is payable) lying in the factory premises.

1.14. PROVISIONS AND CONTINGENT LIABILITY

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligations. A disclosure of the contingent liability, if determinable, is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. But where is a possible obligation, but the likelihood of outflow of resources is remote, no provision / disclosure is made.

1.15. REVENUE RECOGNITION

(a) Revenue from sale of goods is recognized when the goods are dispatched to the customers and is stated gross of excise duty and net of sales returns and sales tax.

(b) Gain / Loss on investments in Growth / Dividend plans of Mutual Funds are accounted for on sale / redemption of units.

(c) Dividend income is recognized when the right to receive the income is established.

(d) Income from interest on deposits and loans is recognized on time proportionate method.

1.16. USE OF ESTIMATES

In preparing Company's financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined

1.17. EARNINGS PER SHARE

Basics earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.


Mar 31, 2014

GENERAL INFORMATION

Indian Toners & Developers Limited (hereinafter referred to as ''the Company'') is a manufacturer of Toners only.The Company''s manufacturing facilities are located at Rampur (Uttar Pradesh).

1.1 BASIS OF ACCOUNTING

The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance in all material aspect, with the applicable accounting principles in India. The applicable accounting standards notified under Section 211(3C) and the other relevant provisions of the Companies Act 1956.

All the Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent the Company has ascertained its operating cycle to be less than 12 months.

1.2 TANGIBLE AND INTANGIBLEFIXED ASSETS

a) Fixed Assets are stated at cost less accumulated Depreciation provided for.

b) i) Depreciation is provided on straight line method treating the Plant as continuous process Plant

(except R & D Plant), at rates and in the manner as per Schedule XIV to the Companies Act, 1956 as amended vide notification dated 16th December, 1993. Depreciation on assets added / deducted during the year is charged proportionate with reference to the date of additions / deductions.

ii) Depreciation on R & D plants & machinery is charged, treating the same as non – continuous, in the same manner as mentioned above.

c) Intangible assets, represented by product development are amortized over a period of five years from the quarter in which the same is put to its commercial use.

d) Fixed assets individually costing up to rupees five thousand are depreciated at the rate of 100 percent.

e) Software are amortised on straight line method over a period of three years.

1.3 IMPAIRMENT OF ASSETS

The carrying amount of fixed assets are revised at each Balance Sheet date if there is any indication of impairment based upon internal / external factors. Any impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

1.4 RESEARCH & DEVELOPMENT

Research costs are expensed as incurred and presented under the natural heads of expenditure.

Development cost including regulatory cost and legal expenses leading to Product Registration/Market Authorization relating to the new and/or improved product is recognized as an intangible asset to the extent that it is expected that such asset will generate future economic benefits,adequate technical, financial and other resources required to complete the development and to use orsell the asset are available and the expenditure attributable to the asset during its development can be measured reliably.

Capital expenditure on Research &Developments istreated in the same manner as Fixed Assets.The Revenue expenditure on R &D(other than on product development)is charged off in the year in which the same are incurred. However, expenditure on development of new product is recognized as intangible asset to the extent it is expected that such asset will generate future economic benefits.

1.5 EMPLOYEE BENEFITS

- Contributions payable for provident fund and employee state insurance, which are defined contribution plans are charged to statement of profit & loss.

- Gratuity and leave encashment which are defined benefits plans are accrued, recognized and calculated on unit credit method, based on actuarial valuation, as at balance sheet date provided by L.I.C. and by an independent actuarial valuer respectively.

- The Company has opted for a group gratuity – cum Life Assurance Scheme of the Life Insurance Corporation of India for employees and the annual contribution for it is charged to the statement of profit & loss on the accrual basis.

- All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits such as salaries, wages and bonus etc. one recognized in the statement of profit & loss in the period in which the employee renders the related service.

1.6 INVESTMENTS

Investments that are readily and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. Current investments are carried at lower of cost and fair value. Non-current investments are carried at cost. However, provision of diminution is made to recognize as decline, other than temporary, in the value of investment, such reduction being determined and made for each investment individually.

1.7. INVENTORY VALUATION

Inventories are valued at lower of cost or net realizable value except scrap, which is valued at netestimated realizable value.

The methods of determining cost of various categories of inventories are as follows:

Raw materials, Stores & Spares, Power & Fuel Weighted average method and packing Materials

Variable Cost at weighted average includingan Work-in -process and finished goods appropriate share of variable and fixedproduction overheads. Fixed productionoverheads are included based on normalcapacity of production facilities.

Cost includes all direct costs, cost of conversion and appropriate portion of variable and fixed productionoverheads and such other costs incurred as to bring the inventory to its present location and conditioninclusive of excise duty wherever applicable. Cost formula used is based upon weighted average cost.

Net realizable value is the estimated selling price in the ordinary course of business, less theestimated costs of completion and the estimated costs necessary to make the sale.

1.8. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rate prevailing on / or closely approximating to the date of transaction. Current Assets and Liabilities are restated at the rate prevailing at the period end or at the forward rate where forward cover for specific asset / liability has been taken. The difference between the period end rate and the exchange rate at the date of the transaction is recognized as income or expense in the Statement of profit & loss. In respect of forward exchange contracts, the difference (being premium / discounts) between the contract rate and the rate on the date of transaction is recognized as income or expense in the Statement of profit & loss over the life of the contract.

1.9. TAXATION

Current tax is provided at the rates in force, on the taxable profits arrived at with reference to the provisions of Income Tax Act, 1961.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

Deferred tax assets are reviewed at each balance sheet date and is written – down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

1.10.BORROWING COST

Borrowing Costs are charged to Statement of profit & loss, except when funds are specially borrowed to acquire fixed assets, in which case the same is capitalized till the date the subject assets are ready for the intended use.

1.11.The Company has the practice of providing for the liability on account of import duty on Raw material / Stores / Spares in transit or in Bonded Warehouse at the year end and providing for liability on account of Excise duty on stock of finished goods (other than stocks meant for Exports on which no Excise Duty is payable) lying in the factory premises.

1.12.PROVISIONS AND CONTINGENT LIABILITY

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligations. A disclosure of the contingent liability, if determinable, is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. But where is a possible obligation, but the likelihood of outflow of resources is remote, no provision / disclosure is made.

1.13. REVENUE RECOGNITION

(a) Revenue from sale of goods is recognized when the goods are dispatched to the customers and is stated gross of excise duty and net of sales returns and sales tax.

(b) Gain / Loss on investments in Growth / Dividend plans of Mutual Funds are accounted for on sale / redemption of units.

(c) Dividend income is recognized when the right to receive the income is established.

(d) Income from interest on deposits and loans is recognized on time proportionate method.

1.14.USE OF ESTIMATES

In preparing Company''s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined

1.15. EARNINGS PER SHARE

Basics earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.


Mar 31, 2013

1.1 BASIS OF ACCOUNTING

The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance in all material aspect, with the applicable accounting principles in India . The applicable accounting standards notified under Section 211 (3C) and the other relevant provisions of the Companies Act 1956.

All the Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent the. Company has ascertained its operating cycle to be less than 12 months.

1.2 TANGIBLE AND INTANGIBLEFIXED ASSETS

a) Fixed Assets are stated at cost less accumulated Depreciation provided for.

b) i) Depreciation is provided on straight line method treating the Plant as continuous process Plant

(except R&D Plant), at rates and in the manner as per Schedule XIV to the Companies Act, 1956 as amended vide notification dated 16th December, 1993. Depreciation on assets added / deducted during the year is charged proportionate with reference to the date of additions / deductions.

ii) Depreciation on R & D plants & machinery is charged, treating the same as non - continuous, in the same manner as mentioned above.

c) Intangible assets, represented by product development are amortized over a period of five years from the quarter in which the same is put to its commercial use,

d) Fixed assets individually costing up to rupees five thousand are depreciated at the rate of 100 percent.

e) Software are amortised on straight line method over a period of three years.

1.3 IMPAIRMENT OF ASSETS

The carrying amount of fixed assets are revised at each Balance Sheet date if there is any indication of impairment based upon internal / external factors. Any impairment loss is recognized whereverthe carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

1.4 RESEARCH & DEVELOPMENT

Research costs are expensed as incurred and presented under the natural heads of expenditure.

Development cost including regulatory cost and legal expenses leading to Product Registration/Market Authorization relating to the new and/or improved product is recognized as ah intangible asset to the extent that it is expected that such asset wilt generate future economic benefrts.adequate technical, financial and other resources required to complete the development and to use orsell the asset are available and the expenditure attributable to the asset during its development can be measured reliably

Capital expenditure on Research &Developments istreated in the same manner as Fixed Assets.The Revenue expenditure on R &D(other than on product developments charged off in the year in which the same are incurred. However, expenditure on development of new product is recognized as intangible asset to the extent it is expected that such asset will generate future economic benefits.

1.5 EMPLOYEE BENEFITS

- Contributions payable for providentfund and employee state insurance, which are defined contribution plans are charged to statement of profit & loss.

- Gratuity and leave encashment which are defined benefits plans are accrued, recognized and calculated on unit credit method, based on actuarial valuation, as at balance sheet date provided by L.I.C. and by an independent actuarial valuer respectively.

- The Company has opted for a group gratuity - cum Life Assurance Scheme of the Life insurance Corporation of India for employees and the annual contribution for it is charged to the statement of profit & loss on the accrual basis.

- All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits such as salaries, wages and bonus etc. one recognized in the statement of profit & loss in the period in which the employee renders the related service.

1.6 INVESTMENTS

Investments that are readily and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. Current investments are carried at lower of cost and fair value. Non-current investments are carried at co;t However, provision of diminution is made to recognize as decline, other than temporary, in the value of investment, such reduction being determined arid made for each investment individually. 1.7.INVENTORYVALUAT10N

Inventories are valued at lower of cost or net realizable value except scrap, which is valued at netestimated realizable value.

The methods of determining cost of various categories of inventories are as follows:

Cost includes all direct costs, cost of conversion and appropriate portion of variable and fixed productionoverheads and such other costs incurred as to bring the inventory to its present location and conditioninclusive of excise duty wherever applicable. Cost formula used is based upon weighted average cost.

Net realizable value is the estimated selling price in the ordinary course of business, less theestimated costs of completion and the estimated costs necessary to make the sale. 1.8.FOREIGN CURRENCYTRANSACTtONS

Transactions in foreign currency are recorded at the exchange rate prevailing on / or closely approximating to the date of transaction. Current Assets and Liabilities are restated at the rate prevailing at the period end or at the forward rate where forward cover for specific asset / liability has been taken. The difference between the period end rate and the exchange rate at the date of the transaction is recognized as income or expense in the Statement of profit & loss. In respect of forward exchange contracts, the difference (being premium / discounts) between the contract rate and the rate on the date of transaction is recognized as income or expense in the Statement of profit & loss over the life of the contract.

1.9.TAXATION

Current tax is provided at the rates in force, on the taxable profits arrived at with reference to the provisions of Income Tax Act, 1961.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been«nacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and is written-down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

1.10.BQRRQWINGC0ST

Borrowing Costs are charged to Statement of profit & loss, except when funds are specially borrowed to acquire fixed assets, In which case the same is capitalized till the date the subject assets are ready for the intended use.

t.11 .The Company has the practice of providing for the liability on account of import duty on Raw material / Stores / Spares in transit or in Bonded Warehouse at the year end and providing for liability on account of Excise duty on stock of finished goods (other than stocks meant for Exports on which no Excise Duty is payable) lying in the factory premises.

1.12.PRQVISI0NS ANP CONTINGENT LIABILITY

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligations. A disclosure of the contingent liability, if determinable, is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. But where is a possible obligation, but the likelihood of outflow of resources is remote, no provision / disclosure is made.

1.13. REVENUE RECOGNITION

(a) Revenue from sale of goods is recognized when the goods are dispatched to the customers and is stated gross of excise duty and net of sales returns and sales tax.

(b) Gain / Loss on investments in Growth / Dividend plans of Mutual Funds are accounted for on sale / redemption of units.

(c) Dividend income is recognized when the right to receive the income is established.

(d) Income from interest on deposits and loans is recognized on time proportionate method.

1.14.USE QF ESTIMATES

In preparing Company''s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined

1.15. EARNINGS PER SHARE

Basics earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.16. LEASES

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Lease payment in respect of such leases are recognized as expenses in the Statement of profit & loss on a straight line basis over the lease terms or extended term.


Mar 31, 2012

1.1 BASIS OF ACCOUNTING

The financial statements have been prepared on an accrual basis and under historical costconvention and in compliance in all material aspect, with the applicable accounting principles in India .The applicable accounting standards notified under Section 211 (3C) and the other relevant provisions of the Companies Act 1956.

All the Assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent the Company has ascertained its operating cycle to be less than 12 months.

1.2 FIXED ASSETS

a) Fixed Assets are stated at cost less accumulated Depreciation provided for.

b) i) Depreciation is provided on straight line method treating the Plant as continuous process Plant (except R & D Plant), at rates and in the manner as per Schedule XIV to the Companies Act, 1956 as amended vide notification dated 16th December, 1993. Depreciation on assets added / deducted during the year is charged proportionate with reference to the date of additions / deductions, ii) Depreciation on R & D plants & machinery is charged, treating the same as non - continuous, in the same manner as mentioned above,

c) Intangible assets, represented by product development are amortized over aperiod of five years from the quarter in which the same is put to its commercial use.

d) Fixed assets individually costing up to rupees five thousand are depreciated at the rate of 100 percent,

e) Software are amortised on straight line method over a period of three years.

1.3 IMPAIRMENT OF ASSETS

The carrying amount of fixed assets are revised at each Balance Sheet date if there is any indication of impairment based upon internal / external factors. Any impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

1.4 RESEARCH & DEVELOPMENT

Capital expenditure on Research & Developments istreated in the same manner as Fixed Assets.The Revenue expenditure on R & D (other than on product developments charged off in the year in which the same are incurred. However, expenditure on development of new product is recognized as intangible asset to the

- extent it is expected that such asset will generate future economic benefits.

1.5 EMPLOYEE BENEFITS

- Contributions payable for provident fund and employee state insurance, which are defined contribution plans are charged to statement of profit & loss.

- Gratuity and leave encashment which are defined benefits plans are accrued, recognized and calculated on unit credit method, based on actuarial valuation, as at balance sheet date provided by L.I.C. and by an independent actuarial valuer respectively.

- The Company has opted for a group gratuity - cum Life Assurance Scheme of the Life Insurance Corporation of India for employees and the annual contribution for it is charged to the statement of profit & loss on the accrual basis.

- All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits such as salaries,wages and bonus etc. one recognized in the statement of profit & loss in the period in which the employee renders the related service. '

1.6 INVESTMENTS

(a) Investments are classified into Current & long term investments. Current investments are stated at lower of cost and fair value. Long Term Investments are stated at cost. However, provision of diminution in value is made for decline other than temporary in nature.

(b) Gain / Loss on investments in Growth / Dividend plans of Mutual Funds are accounted for on sale / redemption of units.

(c) Dividend from the Units of Mutual Funds is accounted for when the Company becomes legally entitled to it '

1.7.INVENTORY VALUATION

a) Finished goods: Lower of cost or net realizable value.

b) Raw Materials, Stores & Spares, Power & Fuel and packing Materials: At the lower of cost or net realization value.

c) Stock in process: Lower of cost or net realizable value.

d) Raw material and stores & spares and packing materials costs are computed on weighted average basis.

e) Finished goods and work in process include cost of conversion and other costs incurred in bringing the inventories to their present locations and condition.

1.8.FQREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rate prevailing on / or closely approximating to the date of transaction. Current Assets and Liabilities are restated at the rate prevailing at the period end or at the forward rate where forward cover for specific asset / liability has been taken. The difference between the period end rate and the exchange rate at the date of the transaction is recognized as income or expense irr the Statement of profit & loss. In respect of forward exchange contracts, the difference (being premium / discounts) between the contract rate and the rate on the date of transaction is recognized as income or expense in the Statement of profit & loss over the life of the contract.

1.9.TAXATION

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and is written - down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

Current tax is provided at the rates in force, on the taxable profits arrived at with reference to the provisions of Income Tax Act, 1961. .

1.10. BORROWING COST

Borrowing Costs are charged to Statement of profit & loss, except when funds are specially borrowed to acquire fixed assets, in which case the same is capitalized till the date the subject assets are ready for the intended use.

1.11 The Company has the practice of providing for the liability on account of import duty on Raw material / Stores / Spares in transit or in Bonded Warehouse at the year end and providing for liability on account of Excise duty on stock of finished goods (other than stocks meant for Exports on which no Excise Duty is payable) lying in the factory premises.

1.12. PROVISIONS AND CONTINGENT LIABILITY

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligations. A disclosure of the contingent liability, if determinable, is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. But where is a possible obligation, but the likelihood of outflow of resources is remote, no provision / disclosure is made. .

1.13. REVENUE RECOGNITION

Revenue from sale of goods is recognized when the goods are dispatched to the customers and is stated gross of excise duty and net of sales returns and sales tax.

1.14 USE OF ESTIMATES

In preparing Company's financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Any revision to accounting estimates is recognized in the period the same is determined.

1.15: EARNINGS PER SHARE

Basics earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

1.16. LEASES

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Lease payment in respect of such leases are recognized as expenses in the Statement of profit & loss on a straight line basis over the lease terms or extended term.


Mar 31, 2010

1. Basis of Accounting

The Company follows mercantile system of Accounting and recognizes all significant items of income and expenditure on accrual basis and these accounts have been prepared in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India as well as notified by the Government of India, applicable to it.

2. FIXED ASSETS:

a) Fixed Assets are stated at cost less Depreciation provided for.

b) i) Depreciation on all Assets is charged on straight line method treating the Plant as continuous process Plant (except R&D Plant), at rates and in the manner as per Schedule XIV to the Companies Act, 1956 as amended vide notification dated 16th December, 1993. Depreciation on assets added / deducted during the year is charged proportionate with reference to the date of additions / deductions. ii) Depreciation on R & D plants & machinery is charged, treating the same as non - continuous. in the same manner as mentioned above.

3. IMPAIRMENT OF ASSETS

The carrying amount of fixed assets are revised at each Balance Sheet date if there is any indication of impairment based upon internal / external factors. Any impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of asset but selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

4. RESEARCH & DEVELOPMENT:

Capital expenditure on Research & Developments is treated in the same manner as Fixed Assets The Revenue expenditure on R & D are charged off in the year in which the same are incurred.

5. EMPLOYEE BENEFITS:

Contribution payable for provident fund and employee state insurance which is defined contribution scheme, is charged to profit & loss account.

Gratuity and leave encashment which are defined benefits are accrued calculated on unit credit method based on actuarial valuation as at balance sheet date provided by LLC. and by an indepen- dent actuarial valuer respectively.

The Company has opted for a group gratuity-cum Life Assurance Scheme of the Life Insurance Corporation of India for employees and the annual contribution for it is charged to the profit & loss account on the accrual basis.

6. INVESTMENTS

(a) All the Long Term Investments are stated at cost. All the current investments are stated at cost or market rate whichever is lower as at the date of annual accounts. However, provision of diminution in value is made for declines otherthan temporary in nature.

(b) Income / Loss on investments in Growth / Dividend plans of Mutual Funds is accounted for on sale / redemption of units.

( c) Dividend Income from the Units of Mutual Funds is accounted for when the Company becomes legally entitled to it.

7. INVENTORY VALUATION:

a) Stock of Finished goods: At cost or net realisable value whichever is lower.

b) Stock of Raw Materials, Stores & Spares, Power & Fuel and packing Materials : At or below cost.

c) Stock in process : At cost or net realisable value whichever is lower.

d Stock of Laser Printers, etc (trading goods) :At cost or net realizable value which ever is lower Cost of raw material and stores & spares and packing materials is computed on Weighted Average basis Finished goods and work in process include cost of conversion and other costs incurred in bringing the inventories to their present locations and condition.

8. FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded at the exchange rate prevailing on / or closely approximating to the date of transactions. Current Assets and Liabilities are restated at the rate prevailing at the period end or at the forward rate where forward cover for specific asset / liability has been taken. The difference between the period end rate and the exchange rate at the date of the transaction is recognized as income or expense in the Profit and Loss Account. In respect of forward exchange contracts, the difference (being premium / discounts) between the contract rate and the rate on the date of transaction is-recognized as income or expense in the Profit and Loss Account over the life of the contract.

9. TAXATION

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and is written - down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized. Current tax is provided at the rates in force, on the taxable profits arrived at with reference to the provisions of Income Tax Act, 1961.

10. BORROWING COST:

Borrowing Costs are charged to Profit & Loss Account, except when funds are specially borrowed to acquire fixed assets, in which case the same is capitalized till the date the subject assets are ready for the intended use.

11. EXPORT BENEFITS:

Entitlements of Export Incentives (such as Advance Licences) on goods exported during the year are accounted for on accrual basis and such benefits are accounted through other Income and the correspond- ing debit is given to Export Benefit receivable /Adjustable Account which is adjusted to cost of Raw Material as and when goods are imported.

12. The Company has the practice of providing for the liability on account of import duty on Raw material / Stores / Spares in transit or in Bonded Warehouse at the year end and providing for liability on account of Excise duty on stock of finished goods (other than stocks meant for Exports on which no Excise Duty is payable) lying in the factory premises.

13. PROVISIONS AND CONTINGENT LIABILITY

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligations. A disclosure of the contingent liability, if determinable, is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. But where is a possible obligation but the likelihood of outflow of resources is remote, no provision / disclosure is made.

14. REVENUE RECOGNITION

Revenue from sale of goods is recognized when the goods are dispatched to the customers and is stated net of excise duty, sales returns and sales tax.

15. USE OF ESTIMATES

In preparing Companys financial statements in conformity with accounting principles generally accepted h India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined.

16. EARNINGS PER SHARE

Basics earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

17. LEASES

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Lease payment in respect of such leases are recognized as an expenses in the Profit & Loss Account on a straight line bases over the lease terms or extended term.



 
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