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Accounting Policies of JK Paper Ltd. Company

Mar 31, 2016

a) Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable
certainty are accounted for on settlement basis.

b) Cash flows are reported using the indirect method.

c) Fixed Assets are stated at cost adjusted by revaluation of certain assets.

d) Expenditure during construction/erection period is included under Capital Work-in-Progress and
allocated to the respective fixed assets on completion of construction/erection.

e) i) Foreign currency transactions are recorded at exchange rates prevailing on the date of
transaction. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are
translated at exchange rate prevailing at the year end. Premium or discount in respect of forward
contracts covered under AS 11 (revised 2003) is recognized over the life of contract. Exchange
differences arising on actual payments / realizations and year end translations including on
forward contracts are dealt with in Statement of Profit and Loss. The foreign exchange loss/gain on
reporting of long- term foreign currency monetary items and forward contracts, held as on reporting
date to be used for, or actually used for repayment of loan taken for depreciable assets,
recapitalized. Non Monetary Foreign Currency items are stated at cost.

ii) In accordance with Announcement issued by the Institute of Chartered Accountants of India all
outstanding derivatives except covered under AS 11 (revised 2003) are marked to market on Balance
Sheet date and loss, if any, is recognized in Statement of Profit & Loss and gains are ignored.

f) Long term investments are stated at cost. Provision for diminution in the value of long term
investments is made only if such a decline is other than temporary in the opinion of the
management. The current investments are stated at lower of cost and quoted / fair value computed
category-wise. When investment is made in partly convertible debentures with a view to retain only
the convertible portion of the debentures, the excess of the face value of the non-convertible
portion over the realization on sale of such portion is treated as a part of the cost of
acquisition of the convertible portion of the debenture. Income in respect of securities with
long-term maturities is accounted for as per contractual obligation.

g) Inventories are valued at the lower of cost and net realizable value (except scrap/waste which
are valued at net realizable value). The cost is computed on weighted average basis. Finished Goods
and Process Stock include cost of conversion and other costs incurred in bringing the inventories
to their present location and condition.

h) i) Revenue from operation is recognized when significant risk and reward of ownership is passed
on to the customer.

ii) Interest Income is recognized on time proportion basis.

iii) Dividend Income on investment is accounted for when the right to receive the payment is
established.

iv) Export incentives, Duty drawbacks and other benefits are recognized in the Statement of Profit
and Loss. Project subsidy is credited to Capital Reserve.

v) Renewable Energy Certificate (REC) benefits are recognized in Statement of Profit & Loss on
receipt of certificate from the relevant authority.

i) Revenue expenditure on Research and Development is charged to Statement of Profit and Loss in
the year in which it is incurred and capital expenditure is added to Fixed Assets.

j) Borrowing cost is charged to Statement of Profit and Loss except cost of borrowing for
acquisition of qualifying assets which is capitalized till the date of commercial use of the asset.
The ancillary costs incurred in connection with the arrangement of borrowings are amortized over
the life of underlying borrowings.


k) i) Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is
provided as per straight line method over their useful lives as prescribed under Schedule II of
Companies Act, 2013. Depreciation on additions due to exchange rate fluctuation is provided on the
basis of residual life of the assets. Depreciation on assets costing up to Rs.50007- and on
Temporary Sheds is provided in full during the year of additions. Intangible Assets are amortized
over their respective individual estimated useful lives on Straight Line Method.

ii) Depreciation on the increased amount of assets due to revaluation is computed on the basis of
the residual life of the assets as estimated by the values on straight-line method.

iii) Leasehold Land is being amortized over the lease period.

I) An asset is treated as impaired when the carrying cost of assets exceeds its recoverable amount.
An impairment loss is charged to the Statement of Profit and Loss when an asset is identified as
impaired. Reversal of impairment loss recognized in prior periods is recorded when there is an
indication that the impairment losses recognized for the assets no longer exist or have decreased.
Post impairment, depreciation is provided on the revised carrying value of the asset over its
remaining useful life.

m) Employee Benefits:

i) Defined Contribution Plan

Employee benefit in the form of Superannuation Fund is considered as defined contribution plan and
charged to the Statement of Profit and Loss in the year when the contribution to the respective
fund is due.

ii) Defined Benefit Plan

Retirement benefits in the form of Gratuity is considered as defined benefit obligation and
provided for on the basis of an actuarial valuation, using the projected unit credit method, as at
the date of Balance Sheet.

The Provident Fund Contribution is made to trust administered by the trustees. The interest rate to
the members of the trust shall not be lower than the statutory rate declared by the Central
Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. Shortfall, if
any, shall be made good by the Company.

iii) Other long-term benefits Long term compensated absences are provided for on the basis of an
actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.
Actuarial gain/losses, if any, are immediately recognized in the Statement of Profit and Loss.

n) Lease rentals in respect of assets taken on Operating/finance lease are accounted for in
reference to lease terms.

o) Share issue expense is charged to Securities Premium Reserve in the year of issue. ECA Premium
on loans is to be mortised over the tenure of loan.

p) Intangible Assets are being recognized if the future economic benefits attributable to the asset
are expected to flow to the company and the cost of the asset can be measured reliably. The same
are being mortised over the expected duration of benefits.

q) Current tax is the amount of tax payable on the estimated taxable income for the current year as
per the provisions of Income Tax Act, 1961. Deferred tax assets and liabilities are recognized in
respect of current year and prospective years. Deferred Tax Assets are recognized on the basis of
reasonable certainty / virtual certainty as the case may be, that sufficient future taxable income
will be available against which the same can be realized.

r) Provisions involving substantial degree of estimation in measurement are recognized when there
is a present obligation as a result of past events and it is probable that there will be an outflow
of resources. Contingent liabilities are not recognized but are disclosed in the notes.

s) Premium on redemption of preference shares is accounted for in the year of redemption.


(b) Equity Shares:

The equity shareholders have:-

The right to receive dividend out of balance of net profits remaining after payment of dividend to
the preference shareholders. The dividend proposed by Board of Directors is subject to approval of
shareholders in the ensuing general meeting. The Company has only one class of Equity Shares
having face value of Rs. 10/- each and each shareholder is entitled to one vote per share.

In the event of winding up, the equity shareholders will be entitled to receive the remaining
balance of assets if any, after preferential payments and to have a share in surplus assets of the
Company, proportionate to their individual shareholding in the paid up equity capital of the
Company.


Notes :

(a) During the year 1,19,10,000 Equity Shares have been issued at a premium of Rs. 32 per Share.

(b) As per Rule 18(10) of Companies (Share Capital & Debentures) Rules, 2014 Debenture Redemption
Reserve is not required to be created, hence Rs. 1.48 Crore (Previous year Rs. Nil) has been
reversed.

(c) (i) Rs. 57.00 Crore (Previous year Rs. Nil) transferred from Surplus in Statement of Profit &
Loss Account, (ii) Rs.0.29 Crore (Previous year Rs.0.29 Crore) transferred to General Reserve
towards additional Depreciation arising out of revaluation of Fixed Assets.

(d) Details of surplus in Statement of Profit and Loss from Previous year :


Notes :

A Term Loans of Rs 364.97 Crore (FIs - Rs I 16.72 Crore and Banks Rs 248.25 Crore) are secured by
means of first pari passu mortgage/charge on the fixed assets of the Company. Out of the above Term
Loan Rs. 291.22 Crore (FIs - Rs. I 16.72 Crore and Banks Rs. 174.50 Crore) are further secured by
second charge on the current assets of the Company. These Term Loans are/shall be repayable as
under :-

1 Term Loan of Rs. 0.66 Crore is repayable in I half-yearly installment in June 2016,

2 Term Loan of Rs. I 1.06 Crore is repayable in 5 equal half-yearly installments from June-2016 to
June-2018,

3 Term Loans aggregating to Rs. 320.00 Crore are repayable in total I 17 quarterly instilments from
September-2016 to October-2024,

4 Term Loan of Rs. 33.25 Crore is repayable in 7 equal quarterly installments from September-2016
to March-2018.

B Term Loans of Rs. 1006.22 Crore (FIs - Rs. Nil and Banks Rs. 1006.22 Crore) is secured by means
of first pari passu mortgage/charge on the fixed assets, both present and future, of Unit JKPM of
the company. These Term Loans are/shall repayable as under :-

1 Term Loans aggregating to Rs. 561.55 Crore are repayable in total I 10 quarterly installments
from May-2016 to March-2024,

2 Term Loans aggregating to Rs. 444.67 Crore are repayable in total 54 half-yearly installments
from May-2016 toAugust-2023.

C Term Loans aggregating to Rs 78.30 Crore (FIs - Rs. Nil and Banks Rs 78.30 Crore) is secured by
means of first pari passu mortgage/charge on the fixed assets, both present and future, of Unit CPM
of the company. These Term Loans are repayable in total 28 quarterly installments from April-2016
to January-2021.

D Term Loan of Rs. 21.25 Crore (FIs - Rs. 21.25 Crore, Banks Rs. Nil) is secured by equitable
mortgage of townships of the subsidiaries of the company namely Jaykaypur Infrastructure & Housing
Limited located at Jaykaypur, Rayagada and Songadh Infrastructure & Housing Limited located at
Songadh, Tapi and are repayable in 73 monthly installment from April-2016 to April-2022.

E Term Loans aggregating to Rs. 3.16 Crore (Fl - Rs. Nil, Banks Rs. 3.16 Crore) are secured by the
specific charge on the vehicles hypothecated against these loans. These term loans are repayable in
total 106 monthly installment from April-2016 to September-2020.

F Certain charges are in the process of satisfaction. Secured Term Loans from Financial
Institutions and Banks include Rs. 456.39 Crore foreign currency loans.

G Finance Lease of Rs. 0.34 Crore is repayable in 3 quarterly installments from June-2016 to
December-2016.

H FCCB~s of EURO 35 Million @ 6.455% issued on 30th May, 201 I are convertible into equity shares
of the company at an initial conversion price of Rs. 65 per share, subject to price adjustment as
per agreement, after 3 years and 6 months from the date of issue. If not converted then the FCCBs
will be redeemed at par between 15th May 2016 to 15th May 2018 in 5 half yearly installments.

I Term Loan of Rs.40 Crore from related party is repayable in 47 monthly installment from June 2018
to April 2022.

J Public deposits are due for repayment in 2016-17,2017-18 & 2018-19.


Mar 31, 2015

A) Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

b) Cash flows are reported using the indirect method.

c) Fixed Assets are stated at cost adjusted by revaluation of certain assets.

d) Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fixed assets on completion of construction/erection.

e) i) Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Premium or discount in respect of forward contracts covered under AS 11 (revised 2003) is recognized over the life of contract. Exchange differences arising on actual payments / realizations and year end translations including on forward contracts are dealt with in Statement of Profit and Loss. The foreign exchange loss/gain on reporting of long-term foreign currency monetary items and forward contracts, held as on reporting date to be used for, or actually used for repayment of loan taken for depreciable assets, are capitalized. Non Monetary Foreign Currency items are stated at cost.

ii) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 1 1 {revised 2003) are marked to market on Balance Sheet date and loss, if any, is recognized in Statement of Profit & Loss and gains are ignored.

f) Long term investments are stated at cost Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management The current investments are stated at lower of cost and quoted / fair value computed category-wise. When investment is made in partly convertible debentures with a view to retain only the convertible portion of the debentures, the excess of the face value of the non-convertible portion over the realization on sale of such portion is treated as a part of the cost of acquisition of the convertible portion of the debenture. Income in respect of securities with long-term maturities is accounted for as per contractual obligation.

g) Inventories are valued at the lower of cost and net realizable value (except scrap/waste which are valued at net realizable value). The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

h) i) Revenue from operation is recognized when significant risk and reward of ownership is passed on to the customer.

ii) Interest Income is recognized on time proportion basis.

iii) Dividend Income on investment is accounted for when the right to receive the payment is established.

iv) Export incentives, Duty drawbacks and other benefits are recognized in the Statement of Profit and Loss. Project subsidy is credited to Capital Reserve.

v) Renewable Energy Certificate (REC) benefits are recognized in Statement of Profit & Loss on receipt of certificate from the relevant authority.

i) Revenue expenditure on Research and Development is charged to Statement of Profit and Loss in the year in which it is incurred and capital expenditure is added to Fixed Assets.

j) Borrowing cost is charged to Statement of Profit and Loss except cost of borrowing for acquisition of qualifying assets which is capitalized till the date of commercial use of the asset The ancillary costs incurred in connection with the arrangement of borrowings are amortized over the life of underlying borrowings.

k) i) Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line method over their useful lives as prescribed under Schedule II of Companies Act, 2013.

Depreciation on additions due to exchange rate fluctuation is provided on the basis of residual life of the assets. Depreciation on assets costing up to Rs, 5000/- and on Temporary Sheds is provided in full during the year of additions. Intangible Assets are amortized over their respective individual estimated useful lives on Straight Line Method.

ii) Depreciation on the increased amount of assets due to revaluation is computed on the basis of the residual life of the assets as estimated by the values on straight-line method.

iii) Leasehold Land is being amortized over the lease period.

I) An asset is treated as impaired when the carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss when an asset is identified as impaired. Reversal of impairment loss recognized in prior periods is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

m) Employee Benefits:

i) Defined Contribution Plan

Employee benefit in the form of Superannuation Fund is considered as defined contribution plan and charged to the Statement of Profit and Loss in the year when the contribution to the respective fund is due.

ii) Defined Benefit Plan

Retirement benefits in the form of Gratuity is considered as defined benefit obligation and provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet

The Provident Fund Contribution is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees' Provident Fund and Miscellaneous Provision Act, 1952. Shortfall, if any, shall be made good by the Company.

iii) Other long-term benefits

Long term compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Statement of Profit and Loss.

n) Lease rentals in respect of assets taken on Operating/Finance lease are accounted for in reference to lease terms.

o) Expenditure incurred against which benefit is expected to flow into future periods, are treated as Deferred Revenue Expenditure and charged to Revenue Account over the expected duration of benefit. Share issue expense is charged to Securities Premium Reserve in the year of issue. ECA Premium on loans is to be amortized over the tenure of loan.

p) Intangible Assets are being recognized if the future economic benefits attributable to the asset are expected to flow to the company and the cost of the asset can be measured reliably. The same are being amortized over the expected duration of benefits.

q) Current tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred tax assets and liabilities are recognized in respect of current year and prospective years. Deferred Tax Assets are recognized on the basis of reasonable certainty / virtual certainty as the case may be, that sufficient future taxable income will be available against which the same can be realized.

r) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes.

s) Premium on redemption of preference shares is accounted for in the year of redemption.


Mar 31, 2014

A) Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

b) Cash flows are reported using the indirect method.

c) Fixed Assets are stated at cost adjusted by revaluation of certain assets.

d) Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fixed assets on completion of construction/erection.

e) i) Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction.

Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Premium or discount in respect of forward contracts covered under AS 11 (revised 2003) is recognized over the life of contract. Exchange differences arising on actual payments / realizations and year end translations including on forward contracts are dealt with in Statement of Profit and Loss. The foreign exchange loss/gain on reporting of long-term foreign currency monetary items and forward contracts, held as on reporting date to be used for, or actually used for repayment of loan taken for depreciable assets, are capitalized. Non Monetary Foreign Currency items are stated at cost.

ii) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are marked to market on Balance Sheet date and loss, if any, is recognized in Statement of Profit & Loss and gains are ignored.

f) Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management. The current investments are stated at lower of cost and quoted / fair value computed category-wise. When investment is made in partly convertible debentures with a view to retain only the convertible portion of the debentures, the excess of the face value of the non-convertible portion over the realisation on sale of such portion is treated as a part of the cost of acquisition of the convertible portion of the debenture. Income in respect of securities with long-term maturities is accounted for as per contractual obligation.

g) Inventories are valued at the lower of cost and net realisable value (except scrap/waste which are valued at net realisable value). The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

h) i) Revenue from operation is recognized when significant risk and reward of ownership is passed on to the customer.

ii) Interest Income is recognized on time proportion basis.

iii) Dividend Income on investment is accounted for when the right to receive the payment is established.

iv) Export incentives, Duty drawbacks and other benefits are recognized in the Statement of Profit and Loss. Project subsidy is credited to Capital Reserve.

i) Revenue expenditure on Research and Development is charged to Statement of Profit and Loss in the year in which it is incurred and capital expenditure is added to Fixed Assets.

j) Borrowing cost is charged to Statement of Profit and Loss except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

k) i) Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line method considering the rates in force at the time of respective additions of the assets made before 02.04.1987 and on additions thereafter at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Continuous Process Plants as defined in Schedule XIV have been considered on technical evaluation. Depreciation on additions due to exchange rate fluctuation is provided

on the basis of residual life of the assets. Depreciation on assets costing up to Rs.5000/- and on Temporary Sheds is provided in full during the year of additions. Intangible Assets are being depreciated @ 20% p.a. on Straight Line Method.

ii) Depreciation on the increased amount of assets due to revaluation is computed on the basis of the residual life of the assets as estimated by the valuers on straight-line method.

iii) Leasehold Land is being amortised over the lease period.

l) An asset is treated as impaired when the carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss when an asset is identified as impaired. Reversal of impairment loss recognised in prior periods is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

m) Employee Benefits:

i) Defined Contribution Plan

Employee benefit in the form of Superannuation Fund is considered as defined contribution plan and charged to the Statement of Profit and Loss in the year when the contribution to the respective fund is due.

ii) Defined Benefit Plan

Retirement benefits in the form of Gratuity is considered as defined benefit obligation and provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

The Provident Fund Contribution is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. Shortfall, if any, shall be made good by the Company.

iii) Other long-term benefits

Long term compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Statement of Profit and Loss.

n) Lease rentals in respect of assets taken on finance lease are accounted for in reference to lease terms.

o) Expenditure incurred against which benefit is expected to flow into future periods, are treated as Deferred Revenue Expenditure and charged to Revenue Account over the expected duration of benefit. Share issue expense is charged to Securities Premium Reserve in the year of issue. ECA Premium on loans is to be amortised over the tenure of loan.

p) Intangible Assets are being recognised if the future economic benefits attributable to the asset are expected to flow to the company and the cost of the asset can be measured reliably. The same are being amortised over the expected duration of benefits.

q) Current tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred tax assets and liabilities are recognised in respect of current year and prospective years. Deferred Tax Assets are recognised on the basis of reasonable certainty / virtual certainty as the case may be, that sufficient future taxable income will be available against which the same can be realised.

r) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes.

s) Premium on redemption of preference shares is accounted for in the year of redemption.


Mar 31, 2013

A) Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

b) Cash flows are reported using the indirect method.

c) Fixed Assets are stated at cost adjusted by revaluation of certain assets.

d) Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fixed assets on completion of construction/erection.

e) i) Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Premium or discount in respect of forward contracts covered under AS 11 (revised 2003) is recognized over the life of contract. Exchange differences arising on actual payments/realizations and year end translations including on forward contracts are dealt with in Statement of Profit and Loss except foreign exchange loss/gain on reporting of long-term foreign currency monetary items used for depreciable assets, which are capitalized. Non Monetary Foreign Currency items are stated at cost.

ii) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are marked to market on Balance Sheet date and loss, if any, is recognized in Statement of Profit & Loss and gains are ignored.

f) Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management. The current investments are stated at lower of cost and quoted/fair value computed category-wise. When investment is made in partly convertible debentures with a view to retain only the convertible portion of the debentures, the excess of the face value of the non-convertible portion over the realisation on sale of such portion is treated as a part of the cost of acquisition of the convertible portion of the debenture. Income in respect of securities with long-term maturities is accounted for as per contractual obligation.

g) Inventories are valued at the lower of cost and net realisable value (except scrap/waste which are valued at net realisable value). The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

h) Revenue from operation is recognized when significant risk and reward of ownership is passed on to the customer.

Interest Income is recognized on time proportion basis.

Dividend Income on investment is accounted for when the right to receive the payment is established. Export incentives, Duty drawbacks and other benefits are recognized in the Statement of Profit and Loss. Project subsidy is credited to Capital Reserve.

i) Revenue expenditure on Research and Development is charged to Statement of Profit and Loss in the year in which it is incurred and capital expenditure is added to Fixed Assets.

j) Borrowing cost is charged to Statement of Profit and Loss except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

k) i) Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line method considering the rates in force at the time of respective additions of the assets made before 02.04.1987 and on additions thereafter at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Continuous Process Plants as defined in Schedule XIV have been considered on technical evaluation. Depreciation on additions due to exchange rate fluctuation is provided on the basis of residual life of the assets. Depreciation on assets costing up to Rs.5000/- and on Temporary Sheds is provided in full during the year of additions. Intangible Assets are being depreciated @ 20% p.a. on Straight Line Method.

ii) Depreciation on the increased amount of assets due to revaluation is computed on the basis of the residual life of the assets as estimated by the valuers on straight-line method.

iii) Leasehold Land is being amortised over the lease period.

l) An asset is treated as impaired when the carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss when an asset is identified as impaired. Reversal of impairment loss recognised in prior periods is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

m) Employee Benefits:

i) Defined Contribution Plan

Employee benefit in the form of Superannuation Fund is considered as defined contribution plan and charged to the Statement of Profit and Loss in the year when the contribution to the respective fund is due.

ii) Defined Benefit Plan

Retirement benefits in the form of Gratuity is considered as defined benefit obligation and provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet. The Provident Fund Contribution is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. Shortfall, if any, shall be made good by the Company.

iii) Other long-term benefits

Long term compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Statement of Profit and Loss.

n) Lease rentals in respect of assets taken on finance lease are accounted for in reference to lease terms.

o) Expenditure incurred against which benefit is expected to flow into future periods, are treated as Deferred Revenue Expenditure and charged to Revenue Account over the expected duration of benefit. Share issue expense is charged to Securities Premium Reserve in the year of issue. ECA Premium on loans is to be amortised over the tenure of loan.

p) Intangible Assets are being recognised if the future economic benefits attributable to the asset are expected to flow to the company and the cost of the asset can be measured reliably. The same are being amortised over the expected duration of benefits.

q) Current tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred tax assets and liabilities are recognised in respect of current year and prospective years. Deferred Tax Assets are recognised on the basis of reasonable certainty/virtual certainty as the case may be, that sufficient future taxable income will be available against which the same can be realised.

r) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes.

s) Premium on redemption of preference shares is accounted for in the year of redemption.


Mar 31, 2012

(a) Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

(b) Fixed Assets are stated at cost adjusted by revaluation of certain assets.

(c) Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fixed assets on completion of construction/ erection.

(d) (i) Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction.

Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Premium or discount in respect of forward contracts covered under AS 11 (revised 2003) is recognized over the life of contract. Exchange differences arising on actual payments/ realizations and year end translations including on forward contracts are dealt with in Statement of Profit and Loss except foreign exchange loss/gain on reporting of long-term foreign currency monetary items used for depreciable assets, which are capitalized. Non Monetary Foreign Currency items are stated at cost.

(ii) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are marked to market on Balance Sheet date and loss, if any, is recognized in Statement of Profit and Loss, and gains are ignored.

(e) Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management. The current investments are stated at lower of cost and quoted/fair value computed category-wise. When investment is made in partly convertible debentures with a view to retain only the convertible portion of the debentures, the excess of the face value of the non-convertible portion over the realisation on sale of such portion is treated as a part of the cost of acquisition of the convertible portion of the debenture. Income in respect of securities with long-term maturities is accounted for as per contractual obligation.

(f) Inventories are valued at the lower of cost and net realisable value (except scrap/ waste which are valued at net realisable value). The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(g) Export incentives, Duty drawbacks and other benefits are recognized in the Statement of Profit and Loss. Project subsidy is credited to Capital Reserve.

(h) Revenue expenditure on Research and Development is charged to Statement of Profit and Loss in the year in which it is incurred and capital expenditure is added to Fixed Assets.

(i) Borrowing cost is charged to Statement of Profit and Loss except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

(j) (i) Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line method considering the rates in force at the time of respective additions of the assets made before 02.04.1987 and on additions thereafter at the rates and in the manner specified in Schedule XIV of the Companies Act 1956. Continuous Process Plants as defined in Schedule XIV have been considered on technical evaluation. Depreciation on additions due to exchange rate fluctuation is provided on the basis of residual life of the assets. Depreciation on assets costing up to Rs. 5000/- and on Temporary Sheds is provided in full during the year of additions.

(ii) Depreciation on the increased amount of assets due to revaluation is computed on the basis of the residual life of the assets as estimated by the valuers on straight-line method.

(iii) Leasehold Land is being amortised over the lease period.

(k) An asset is treated as impaired when the carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss when an asset is identified as impaired. Reversal of impairment loss recognised in prior periods is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

(l) Employee Benefits:

(i) Defined Contribution Plan

Employee benefit in the form of Superannuation Fund is considered as defined contribution plan and charged to the Statement of Profit and Loss in the year when the contribution to the respective fund is due.

(ii) Defined Benefit Plan

Retirement benefits in the form of Gratuity is considered as defined benefit obligation and provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

The Provident Fund Contribution is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees' Provident Fund and Miscellaneous Provision Act, 1952. Any shortfall, if any, shall be made good by the Company.

(iii) Other long-term benefits

Long term compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Statement of Profit and Loss.

(m) Lease rentals in respect of assets taken on finance lease are accounted for in reference to lease terms.

(n) Expenditure incurred against which benefit is expected to flow into future periods, are treated as Deferred Revenue Expenditure and charged to Revenue Account over the expected duration of benefit. Share issue expense is charged to Securities Premium Reserve in the year of issue. ECA Premium on loans is to be amortised over the tenure of loan.

(o) Intangible Assets are being recognised if the future economic benefits attributable to the asset are expected to flow to the company and the cost of the asset can be measured reliably. The same are being amortised over the expected duration of benefits.

(p) Current tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Ta x Act, 1961. Deferred tax assets and liabilities are recognised in respect of current year and prospective years. Deferred tax assets are recognised on the basis of reasonable certainty / virtual certainty as the case may be, that sufficient future taxable income will be available against which the same can be realised.

(q) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes.

(r) Premium on redemption of preference shares is accounted for in the year of redemption.


Mar 31, 2011

1. Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

2. Fixed Assets are stated at cost adjusted by revaluation of certain assets.

3. Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fixed assets on completion of construction/ erection.

4. a) Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction.

Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Premium or discount in respect of forward contracts covered under AS I I (Revised 2003) is recognized over the life of contract. Exchange differences arising on actual payments / realizations and year end translations including on forward contracts are dealt with in Profit and Loss Account except foreign exchange loss/gain on reporting of long- term foreign currency monetary items used for depreciable assets, which are capitalized. Non Monetary Foreign Currency items are stated at cost.

b) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS I I (Revised 2003) are mark to market on Balance Sheet date and loss, if any, is recognized in Profit & Loss Account and gain being ignored.

5. Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management. The current investments are stated at lower of cost and quoted / fair value computed category-wise.When investment is made in partly convertible debentures with a view to retain only the convertible portion of the debentures, the excess of the face value of the non-convertible portion over the realisation on sale of such portion is treated as a part of the cost of acquisition of the convertible portion of the debenture. Income in respect of securities with long-term maturities is accounted for as per contractual obligation.

6. Inventories are valued at the lower of cost and net realisable value (except scrap/ waste which are valued at net realisable value).The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Export incentives, Duty drawbacks and other benefits are recognized in the Profit and Loss Account. Project subsidy is credited to Capital Reserve.

8. Revenue expenditure on Research and Development is charged to Profit and Loss Account in the year in which it is incurred and capital expenditure is added to Fixed Assets.

9. Borrowing cost is charged to Profit and Loss Account except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

10. (a) Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line method considering the rates in force at the time of respective additions of the assets made before 02.04.1987 and on additions thereafter at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Continuous Process Plants as defined in Schedule XIV have been considered on technical evaluation. Depreciation on additions due to exchange rate fluctuation is provided on the basis of residual life of the assets. Depreciation on assets costing up to Rs.5,000/- and on Temporary Sheds is provided in full during the year of additions.

(b) Depreciation on the increased amount of assets due to revaluation is computed on the basis of the residual life of the assets as estimated by the valuers on straight-line method.

(c) Leasehold Land is being amortised over the lease period.

11. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the profi t and loss account when an asset is identifi ed as impaired. Reversal of impairment loss recognised in prior periods is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

12. Employee Benefi ts:

(a) Defined Contribution Plan

Employee benefi t in the form of Superannuation Fund is considered as Defined contribution plan and charged to the Profi t and Loss Account in the year when the contribution to the respective fund is due.

(b) Defined Benefi t Plan

Retirement benefi ts in the form of Gratuity is considered as Defined benefi t obligation and provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

The Provident Fund Contribution is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees’ Provident Fund and Miscellaneous Provision Act, 1952. Any shortfall, if any, shall be made good by the Company.

(c) Other long-term benefi ts

Long term compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Profi t and Loss Account.

13. Lease rentals in respect of assets taken on fi nance lease are accounted for in reference to lease terms.

14. Miscellaneous expenditure are amortised as under:

Expenditure incurred against which benefi t is expected to fl ow into future periods, are treated as Deferred Revenue Expenditure and charged to Revenue Account over the expected duration of benefi t. Share issue expenses will be charged to Profi t & Loss account in the year of issue.

15. Intangible Assets are being recognised if the future economic benefi ts attributable to the asset are expected to fl ow to the company and the cost of the asset can be measured reliably. The same are being amortised over the expected duration of benefi ts.

16. Current tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Ta x Act, 1961. Deferred tax assets and liabilities are recognised in respect of current year and prospective years. Deferred tax assets are recognised on the basis of reasonable certainty / virtual certainty as the case may be, that suffi cient future taxable income will be available against which the same can be realised.

17. Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outfl ow of resources. Contingent liabilities are not recognised but are disclosed in the notes.

18. Premium on redemption of preference shares is accounted for in the year of redemption.


Mar 31, 2010

1. Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

2. Fixed Assets are stated at cost adjusted by revaluation of certain assets.

3. Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fi xed assets on completion of construction/ erection.

4. a) Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction.

Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Premium or discount in respect of forward contracts covered under AS 11 (revised 2003) is recognized over the life of contract. Exchange differences arising on actual payments / realizations and year end translations including on forward contracts are dealt with in Profi t and Loss Account except foreign exchange loss/gain on reporting of long-term foreign currency monetary items used for depreciable assets, which are capitalized. Non Monetary Foreign Currency items are stated at cost. b) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are mark to market on Balance Sheet date and loss, if any, is recognized in Profi t & Loss Account and gain being ignored.

5. Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management. The current investments are stated at lower of cost and quoted / fair value computed category-wise. When investment is made in partly convertible debentures with a view to retain only the convertible portion of the debentures, the excess of the face value of the non-convertible portion over the realisation on sale of such portion is treated as a part of the cost of acquisition of the convertible portion of the debenture. Income in respect of securities with long-term maturities is accounted for as per contractual obligation.

6. Inventories are valued at the lower of cost and net realisable value (except scrap/ waste which are valued at net realisable value). The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Export incentives, Duty drawbacks and other benefi ts are recognized in the Profi t and Loss Account. Project subsidy is credited to Capital Reserve.

8. Revenue expenditure on Research and Development is charged to Profi t and Loss Account in the year in which it is incurred and capital expenditure is added to Fixed Assets.

9. Borrowing cost is charged to Profi t and Loss Account except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

10. (a) Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line method considering the rates in force at the time of respective additions of the assets made before 02.04.1987 and on additions thereafter at the rates and in the manner specifi ed in Schedule XIV of the Companies Act 1956. Continuous Process Plants as defi ned in Schedule XIV have been considered on technical evaluation. Depreciation on additions due to exchange rate fl uctuation is provided on the basis of residual life of the assets. Depreciation on assets costing up to Rs.5,000/- and on Temporary Sheds is provided in full during the year of additions.

(b) Depreciation on the increased amount of assets due to revaluation is computed on the basis of the residual life of the assets as estimated by the valuers on straight-line method.

(c) Leasehold Land is being amortised over the lease period.

11. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the profi t and loss account when an asset is identifi ed as impaired. Reversal of impairment loss recognised in prior periods is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

12. Employee Benefi ts:

(a) Defi ned Contribution Plan

Employee benefi t in the form of Superannuation Fund is considered as defi ned contribution plan and charged to the Profi t and Loss Account in the year when the contribution to the respective fund is due.

(b) Defi ned Benefi t Plan

Retirement benefi ts in the form of Gratuity is considered as defi ned benefi t obligation and provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

The Provident Fund Contribution is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees’ Provident Fund and Miscellaneous Provision Act, 1952. Any shortfall, if any, shall be made good by the Company.

(c) Other long-term benefi ts

Long term compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Profi t and Loss Account.

13. Lease rentals in respect of assets taken on fi nance lease are accounted for in reference to lease terms.

14. Miscellaneous expenditure are amortised as under:

Expenditure incurred against which benefi t is expected to fl ow into future periods, are treated as Deferred Revenue Expenditure and charged to Revenue Account over the expected duration of benefi t.

15. Intangible Assets are being recognised if the future economic benefi ts attributable to the asset are expected to fl ow to the company and the cost of the asset can be measured reliably. The same are being amortised over the expected duration of benefi ts.

16. Current tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Ta x Act, 1961. Deferred tax assets and liabilities are recognised in respect of current year and prospective years. Deferred Tax Assets are recognised on the basis of reasonable certainty / virtual certainty as the case may be, that suffi cient future taxable income will be available against which the same can be realised.

17. Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outfl ow of resources. Contingent liabilities are not recognised but are disclosed in the notes.

18. Premium on redemption of preference shares is accounted for in the year of redemption.

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