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Accounting Policies of Maharashtra Scooters Ltd. Company

Mar 31, 2017

1. Summary of significant accounting policies followed by the Company

Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

The Ministry of Corporate Affairs (MCA) has notified the Companies (Accounting Standards) Amendment Rules, 2016 vide its notification dated 30 March 2016. The said notification read with Rule 3(2) of the Companies (Accounting Standards) Rules, 2006 is applicable to accounting period commencing on or after the date of notification i.e. 1 April 2016.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating and other criteria set out in the Schedule III to 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 equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

1) System of accounting

i) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements and disclosures are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.

2) Revenue recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognizes income on accrual basis.

b) Interest income is accrued over the period of investment and net of amortization of premium/discount with respect to fixed income securities, thereby recognizing the implicit yield to maturity, with reference to coupon dates, where applicable. However, income is accrued only where interest is serviced regularly and is not in arrears, as per the guidelines framed by the management.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit/loss on sale of investment are recognized on the contract date.

3) Fixed assets and depreciation

i) Tangible assets

Tangible assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of self-manufactured assets, less accumulated depreciation and amortization. Borrowing cost attributable to acquisition and installation of fixed assets is capitalized and included in the cost of fixed assets as appropriate.

ii) Depreciation and amortization

a) On Leasehold land

Premium on leasehold land is amortized over the period of lease.

b) On other tangible assets

Depreciation is provided on a pro-rata basis on the straight line method over the useful lives of the assets as prescribed by Schedule II of the Companies Act, 2013.

1. Where a significant component (in terms of cost) of an asset has an economic useful life shorter than that of its corresponding asset, the component is depreciated over its shorter life.

2. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

3. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates up to the previous month in which such assets are sold, discarded or demolished.

c) Impairment of assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined by the present value of estimated future cash flows.

4) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortization of premium paid /discount received, as the case may be, and provision for diminution as considered necessary.

iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally not considered to be of a permanent nature. However, current investments, representing fixed income securities with a maturity less than 1 year and investment not intended to be held for a period more than 1 year, are stated at lower of cost or fair value.

5) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value. Finished stocks and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the Cenvat/VAT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry debtors

Sundry debtors and loans and advances are stated, after making adequate provision for doubtful debts, if any.

6) Employee Benefits

i) Privilege leave entitlements

Privilege leave entitlements are recognized as a liability, in the calendar year of rendering of service, as per the rules of the Company. As accumulated leave can be availed and/or encased at any time during the tenure of employment, the liability is recognized at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved gratuity fund, which covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in plan assets managed by LIC as compared to the actuarial liability is recognized as a liability.

iii) Superannuation

Contribution to superannuation fund is being made as per the scheme of the Company under Cash Accumulation Policy of the Life Insurance Corporation of India.

iv) Provident fund

Provident fund contributions are made to Company''s Provident Fund Trust.

v) Employees'' pension scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

7) Foreign exchange transactions

Transactions in foreign currency are recorded in the financial statements based on the exchange rate existing at the time of the transaction.

8) Taxation

i) Provision for tax is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-Tax Act, 1961.

ii) Deferred tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystallize with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. Deferred tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

9) Provisions and contingent liabilities

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

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs, 10 per share. Each holder of equity shares is entitled to one vote per share. The interim dividend declared by the Board of Directors and the dividend proposed by the Board of Directors and approved by the shareholders in the annual general meeting is paid in Indian rupees. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* As required by revised AS 4, the enterprise should not recognize dividend declared after balance sheet date as a liability. As such the Company has not recognized the declared dividend of Rs, 30 per equity share (300%) for the year ended 31 March 2017. The Company has paid an interim dividend of Rs, 30 per equity share (300%) on 30 March 2016 and said amount was treated as final dividend for the year ended 31 March 2016.


Mar 31, 2016

Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the
historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of Companies
(Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in
consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under
the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all
material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting
Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

The Ministry of Corporate Affairs (MCA) has notified the Companies (Accounting Standards) Amendment Rules, 2016 vide its
notification dated 30 March 2016. The said notification read with Rule 3(2) of the Companies (Accounting Standards) Rules, 2006
is applicable to accounting period commencing on or after the date of notification i.e. 1 April 2016.

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

1) System of accounting

i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in
case of significant uncertainties.

ii) Financial Statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements and disclosures are based upon Management''s
evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual
results at a subsequent date.

2) Revenue recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognises income on accrual basis.

b) Interest income is accrued over the period of investment and net of amortisation of premium / discount with respect to fixed
income securities, thereby recognising the implicit yield to maturity, with reference to coupon dates, where applicable. However,
income is accrued only where interest is serviced regularly and is not in arrears, as per the guidelines framed by the
management.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit / loss on sale of investment are recognised on the contract date.

3) Fixed assets and depreciation

i) Tangible assets

Tangible assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of
self-manufactured assets, less accumulated depreciation and amortisation. Borrowing cost attributable to acquisition and
installation of fixed assets is capitalised and included in the cost of fixed assets as appropriate.

ii) Depreciation and amortisation

a) On Leasehold land

Premium on leasehold land is amortised over the period of lease.

b) On other tangible assets

Depreciation is provided on a pro-rata basis on the straight line method over the useful lives of the assets as prescribed by
Schedule II of the Companies Act, 2013.

1. Where a significant component (in terms of cost) of an asset has an economic useful life shorter than that of it''s
corresponding asset, the component is depreciated over it''s shorter life.

2. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

3. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates upto the previous month
in which such assets are sold, discarded or demolished.

c) Impairment of assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced
to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined
by the present value of estimated future cash flows.

4) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortisation of premium paid / discount received, as the case may be, and
provision for diminution as considered necessary.

iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally
not considered to be of a permanent nature. However, current investments, representing fixed income securities with a maturity
less than 1 year and investment not intended to be held for a period more than 1 year, are stated at lower of cost or fair value.

5) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realisable value.
Finished stocks and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their
present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished
stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise
duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes,
freight inward, octroi and inward insurance and is net of credit under the Cenvat / VAT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production
overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry debtors

Sundry debtors and loans and advances are stated, after making adequate provision for doubtful debts, if any.

6) Employee Benefits

i) Privilege leave entitlements

Privilege leave entitlements are recognised as a liability, in the calendar year of rendering of service, as per the rules of the
company. As accumulated leave can be availed and / or encashed at any time during the tenure of employment, the liability is
recognised at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved gratuity fund, which covers the same under
Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in plan assets managed by LIC as
compared to the actuarial liability is recognised as a liability.

iii) Superannuation

Contribution to superannuation fund is being made as per the scheme of the Company under Cash Accumulation Policy of the Life
Insurance Corporation of India.

iv) Provident fund

Provident fund contributions are made to Company''s Provident Fund Trust.

v) Employees pension scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

7) Foreign exchange transactions

Transactions in foreign currency are recorded in the financial statements based on the exchange rate existing at the time of the
transaction.

8) Taxation

i) Provision for tax is made for the current accounting period (reporting period) on the basis of the taxable profits computed in
accordance with the Income-Tax Act, 1961.

ii) Deferred tax resulting from timing difference between book profits and taxable profits are accounted for to the extent
deferred tax liabilities are expected to crystallise with reasonable certainty and in case of deferred tax assets with virtual
certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred
tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

9) Provisions and contingent liabilities

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


Mar 31, 2015

Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

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

1) System of Accounting

i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements and disclosures are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

2) Revenue Recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognises income on accrual basis.

b) Interest income is accrued over the period of investment and net of amortisation of premium/discount with respect to fixed income securities, thereby recognising the implicit yield to maturity, with reference to coupon dates, where applicable. However, income is accrued only where interest is serviced regularly and is not in arrears, as per the guidelines framed by the management.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit/loss on sale of investment are recognised on the contract date.

3) Fixed Assets and Depreciation

i) Tangible Assets

Tangible Assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of self-manufactured assets, less accumulated depreciation and amortisation. Borrowing Cost attributable to acquisition and installation of fixed assets is capitalised and included in the cost of fixed assets as appropriate.

ii) Depreciation and Amortisation

a) On leasehold land

Premium on leasehold land is amortised over the period of lease.

b) On other tangible assets

From the current year, depreciation is provided on a pro-rata basis on the straight line method over the useful lives of the assets as prescribed by Schedule II of the Companies Act, 2013 as against the past practice of computing depreciation at rates with reference to the life of assets subject to the minimum of rates provided by Schedule XIV of the Companies Act, 1956.

1. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

2. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates upto the previous month in which such assets are sold, discarded or demolished.

c) Impairment of Assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined by the present value of estimated future cash flows.

4) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortisation of premium paid/discount received, as the case may be, and provision for diminution as considered necessary.

iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally not considered to be of a permanent nature. However, current investments, representing fixed income securities with a maturity less than 1 year and investment not intended to be held for a period more than 1 year, are stated at lower of cost or fair value.

5) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis and estimated net realisable value. Finished Stocks and Work-in-Process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the Cenvat/VAT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry Debtors

Sundry Debtors & Loans and Advances are stated, after making adequate provision for doubtful debts, if any.

6) Employee Benefits

i) Privilege Leave Entitlements

Privilege leave entitlements are recognised as a liability, in the calendar year of rendering of service, as per the rules of the company. As accumulated leave can be availed and/or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved Gratuity Fund, which covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in Plan Assets managed by LIC as compared to the actuarial liability is recognised as a liability.

iii) Superannuation

Contribution to Superannuation Fund is being made as per the Scheme of the Company under Cash Accumulation Policy of the Life Insurance Corporation of India.

iv) Provident Fund

Provident Fund Contributions are made to Company''s Provident Fund Trust.

v) Employees Pension Scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

7) Foreign Exchange Transactions

Transactions in Foreign currency are recorded in the financial statements based on the Exchange rate existing at the time of the transaction.

8) Taxation

i) Provision for Taxation is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystallise with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred Tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

9) Provisions and Contingent Liabilities

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

a Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid in Indian rupees. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders. b Details of shareholders holding more than 5% shares in the company

* During the year ended 31 March 2015, the amount of per share dividend proposed and recognized as distributions to equity shareholders is Rs. 30.00 (previous year Rs. 25.00).

''According to the records available with the Company, dues payable to entities that are classified as the Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is Rs. Nil (previous year: Rs. Nil) . Further, no interest has been paid or was payable to such parties under the said Act during the year.

Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company. This has been relied upon by the auditors.

Consequent to the enactment of the Companies Act, 2013(theAct) and its applicability for accounting periods commencing after 1 April 2014, the Company has re-worked depreciation with reference to the estimated economic lives of fixed assets in the manner prescribed by Schedule II to the Act as against past practice of providing at the minimum of rates prescribed in Schedule XIV of the Companies Act, 1956. In case of any asset whose useful life is completed as at 1 April 2014, the carrying value, net of residual value, has been recognised and charged as depreciation in the Statement of Profit & Loss and in other cases the carrying value has been depreciated over the remaining of the revised life of the assets and recognised in the Statement of Profit and Loss. As a result of this change, the charge of depreciation in Statement of Profit and Loss is higher by Rs. 156.70 Lacs.


Mar 31, 2014

1) System of Accounting

i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.

2) Revenue Recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognises income on accrual basis.

b) Interest is accrued over the period of investment and net of amortisation of premium/discount with respect to fixed income securities, thereby recognising the implicit yield to maturity, with reference to coupon dates. However, income is accrued only where interest is serviced regularly and is not in arrears, as per the guidelines framed by the management.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit/loss on sale of investment are recognised on the contract date.

3) Fixed Assets and Depreciation i) Fixed Assets

Fixed Assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of self-manufactured assets, less accumulated depreciation and amortisation. Borrowing cost attributable to acquisition and installation of fixed assets is capitalised and included in the cost of fixed assets as appropriate. ii) Depreciation and Amortisation

a) On leasehold land

Premium on leasehold land is amortised over the period of lease.

b) On other fixed assets

Depreciation on all assets is provided on “straight line basis" in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956, in the manner and at the rates specified in Schedule XIV to the said Act.

1. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

2. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates up to the previous month in which such assets are sold, discarded or demolished.

4) Impairment of Assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined by the present value of estimated future cash flows.

5) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortisation of premium paid / discount received, as the case may be, and provision for diminution as considered necessary.

iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally not considered to be of a permanent nature. However, current investments, representing fixed income securities with a maturity less than 1 year and investment not intended to be held for a period more than 1 year, are stated at lower of cost or fair value.

6) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realisable value. Finished stocks and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the Cenvat/VAT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry Debtors

Sundry debtors & loans and advances are stated, after making adequate provision for doubtful debts, if any.

7) Provisions

Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provisions reflect best estimate based on available information.

8) Employee Benefits

i) Privilege Leave Entitlements

Privilege leave entitlements are recognised as a liability, in the calendar year of rendering of service, as per the rules of the company. As accumulated leave can be availed and/or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved Gratuity Fund, which covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in Plan Assets managed by LIC as compared to the actuarial liability is recognised as a liability.

iii) Superannuation

Contribution to Superannuation Fund is being made as per the Scheme of the Company under Cash Accumulation Policy of the Life Insurance Corporation of India.

iv) Provident Fund

Provident Fund Contributions are made to Company''s Provident Fund Trust.

v) Employees Pension Scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

9) Foreign Exchange Transactions

Transactions in Foreign currency are recorded in the financial statements based on the Exchange rate existing at the time of the transaction.

10) Taxation

i) Provision for Taxation is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between Book Profits and Taxable Profits are accounted for to the extent deferred tax liabilities are expected to crystallise with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised.

Deferred Tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

11) Provisions and Contingent Liabilities

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


Mar 31, 2013

1) System of Accounting

i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

2) Revenue Recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognises income on accrual basis.

b) Interest is accrued over the period of investment and net of amortisation of premium/discount with respect to fixed income securities, thereby recognising the implicit yield to maturity, with reference to coupon dates. However, income is accrued only where interest is serviced regularly and is not in arrears, as per the guidelines framed by the management.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit/loss on sale of investments is recognised on the contract date.

3) Fixed Assets and Depreciation

i) Fixed Assets

Fixed Assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of self-manufactured assets, less accumulated depreciation and amortisation. Borrowing Cost attributable to acquisition and installation of fixed assets is capitalised and included in the cost of fixed assets as appropriate.

ii) Depreciation and Amortisation

a) On Leasehold land

Premium on leasehold land is amortised over the period of lease.

b) On other Fixed Assets

Depreciation on all assets is provided on "Straight Line basis" in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956, in the manner and at the rates specified in Schedule XIV to the said Act.

1. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

2. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates upto the previous month in which such assets are sold, discarded or demolished.

4) Impairment of Assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined by the present value of estimated future cash flows.

5) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortisation of premium paid / discount received, as the case may be, and provision for diminution as considered necessary.

iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally not considered to be of a permanent nature. However, current investments, representing fixed income securities with a maturity less than 1 year and investment not intended to be held for a period more than 1 year, are stated at lower of cost or fair value.

6) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis and estimated net realisable value. Finished Stocks and Work-in-Process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the Cenvat/VAT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry Debtors

Sundry Debtors & Loans and Advances are stated, after making adequate provision for doubtful debts, if any.

7) Provisions

Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provisions reflect best estimate based on available information.

8) Employee Benefits

i) Privilege Leave Entitlements

Privilege leave entitlements are recognised as a liability, in the calendar year of rendering of service, as per the rules of the company. As accumulated leave can be availed and/or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved Gratuity Fund, which covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in Plan Assets managed by LIC as compared to the actuarial liability is recognised as a liability.

iii) Superannuation

Contribution to Superannuation Fund is being made as per the Scheme of the Company under Cash Accumulation Policy of the Life Insurance Corporation of India.

iv) Provident Fund

Provident Fund Contributions are made to Company''s Provident Fund Trust.

v) Employees Pension Scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

9) Foreign Exchange Transactions

Transactions in Foreign currency are recorded in the financial statements based on the Exchange rate existing at the time of the transaction.

10) Taxation

i) Provision for Taxation is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between Book Profits and Taxable Profits are accounted for to the extent deferred tax liabilities are expected to crystallise with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred Tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

11) Provisions and Contingent Liabilities

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


Mar 31, 2012

1) System of Accounting

i) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements are based upon Management's evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

2) Revenue Recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognizes income on accrual basis.

b) Interest is accrued over the period of investment and net of amortization of premium/discount with respect to fixed income securities, thereby recognizing the implicit yield to maturity, with reference to coupon dates. However, income is accrued only where interest is serviced regularly and is not in arrears, as per the guidelines framed by the management.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit/loss on sale of investment are recognized on the contract date.

3) Fixed Assets and Depreciation

i) Fixed Assets

Fixed Assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of self-manufactured assets, less accumulated depreciation and amortization. Borrowing Cost attributable to acquisition and installation of fixed assets is capitalized and included in the cost of fixed assets as appropriate.

ii) Depreciation and Amortization

a) On Leasehold land

Premium on leasehold land is amortized over the period of lease.

b) On other Fixed Assets

Depreciation on all assets is provided on "Straight Line basis" in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956, in the manner and at the rates specified in Schedule XIV to the said Act.

1. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

2. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates up to the previous month in which such assets are sold, discarded or demolished.

4) Impairment of Assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined by the present value of estimated future cash flows.

5) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortization of premium paid / discount received, as the case may be, and provision for diminution as considered necessary.

iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally not considered to be of a permanent nature. However, current investments, representing fixed income securities with a maturity less than 1 year and investment not intended to be held for a period more than 1 year, are stated at lower of cost or fair value.

6) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value. Finished Stocks and Work-in-Process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the Cenvat/VAT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry Debtors

Sundry Debtors & Loans and Advances are stated, after making adequate provision for doubtful debts, if any.

7) Provisions

Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provisions reflect best estimate based on available information.

8) Employee Benefits

i) Privilege Leave Entitlements

Privilege leave entitlements are recognized as a liability, in the calendar year of rendering of service, as per the rules of the company. As accumulated leave can be availed and/or encased at any time during the tenure of employment, the liability is recognized at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved Gratuity Fund, which covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in Plan Assets managed by LIC as compared to the actuarial liability is recognized as a liability.

iii) Superannuation

Contribution to Superannuation Fund is being made as per the Scheme of the Company under Cash Accumulation Policy of the Life Insurance Corporation of India.

iv) Provident Fund

Provident Fund Contributions are made to Company's Provident Fund Trust.

v) Employees Pension Scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

9) Foreign Exchange Transactions

Transactions in Foreign currency are recorded in the financial statements based on the Exchange rate existing at the time of the transaction.

10) Taxation

i) Provision for Taxation is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between Book Profits and Taxable Profits are accounted for to the extent deferred tax liabilities are expected to crystallize with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. Deferred Tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

11) Provisions and Contingent Liabilities

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


Mar 31, 2011

A) System of Accounting

i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements are based upon Managements evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

b) Revenue Recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognises income on accrual basis.

b) Interest is accrued over the period of investment and net of amortisation of premium/discount with respect to fixed income securities, thereby recognising the implicit yield to maturity, with reference to coupon dates. However, income is accrued only where interest is serviced regularly and is not in arrears, as per the guidelines framed by the management.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit/loss on sale of investment are recognised on the contract date.

c) Fixed Assets and Depreciation

i) Fixed Assets

Fixed Assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of self-manufactured assets, less accumulated depreciation and amortisation. Borrowing Cost attributable to acquisition and installation of fixed assets is capitalised and included in the cost of fixed assets as appropriate.

ii) Depreciation and Amortisation

a) On Leasehold land

Premium on leasehold land is amortised over the period of lease.

b) On other Fixed Assets

Depreciation on all assets is provided on "Straight Line basis" in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956, in the manner and at the rates specified in Schedule XIV to the said Act.

1. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

2. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates upto the previous month in which such assets are sold, discarded or demolished.

d) Impairment of Assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined by the present value of estimated future cash flows.

e) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortisation of premium paid / discount received, as the case may be, and provision for diminution as considered necessary. iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally not considered to be of a permanent nature.

f) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realisable value. Finished Stocks and Work-in-Process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the Cenvat/VAT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry Debtors

Sundry Debtors & Loans and Advances are stated, after making adequate provision for doubtful debts, if any.

g) Provisions

Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provisions reflect best estimate based on available information.

h) Employee Benefits

i) Privilege Leave Entitlements

Privilege leave entitlements are recognised as a liability, in the calendar year of rendering of service, as per the rules of the company. As accumulated leave can be availed and/or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved Gratuity Fund, which covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in Plan Assets managed by LIC as compared to the actuarial liability is recognised as a liability.

iii) Superannuation

Contribution to Superannuation Fund is being made as per the Scheme of the Company under Cash Accumulation Policy of the Life Insurance Corporation of India.

iv) Provident Fund

Provident Fund Contributions are made to Companys Provident Fund Trust.

v) Employees Pension Scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

i) Foreign Exchange Transactions

Transactions in Foreign currency are recorded in the financial statements based on the Exchange rate existing at the time of the transaction.

j) Taxation

i) Provision for Taxation is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between Book Profits and Taxable Profits are accounted for to the extent deferred tax liabilities are expected to crystallise with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred Tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.


Mar 31, 2010

A) System of Accounting

i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared underthe historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements are based upon Managements evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

b) Revenue Recognition

i) Sales

Sales are accounted for on dispatch from the point of sale.

ii) Income

a) The Company recognises income on accrual basis.

b) Interest is accrued overthe period of investment.

c) Dividends are accounted for when the right to receive the same is established.

d) Profit/loss on sale of investment are recognised on the contract date.

c) Fixed Assets and Depreciation

i) Fixed Assets

Fixed Assets except freehold land are carried at cost of acquisition or construction or at manufacturing cost in the case of self-manufactured assets, less accumulated depreciation and amortisation. Borrowing Cost attributable to acquisition and installation of fixed assets is capitalised and included in the cost of fixed assets as appropriate.

ii) Depreciation and Amortisation

a) On Leasehold land

Premium on leasehold land is amortised overthe period of lease.

b) On other Fixed Assets

Depreciation on all assets is provided on "Straight Line Basis" in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956, in the manner and at the rates specified in Schedule XIV to the said Act.

1. Depreciation on additions is being provided on pro-rata basis from the month of such additions.

2. Depreciation on assets sold, discarded or demolished during the year is being provided at the rates upto the previous month in which such assets are sold, discarded or demolished.

d) Impairment of Assets

If the carrying amount of the fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price and value in use, determined by the present value of estimated future cash flows.

e) Investments

i) Investments other than fixed income securities are valued at cost of acquisition.

ii) Fixed income securities are carried at cost, less amortisation of premium paid / discount received, as the case may be, and provision for diminution as considered necessary.

iii) Investments made by the Company are of a long-term nature, hence diminutions in value of quoted investments are generally not considered to be of a permanent nature.

f) Current Assets

i) Inventories

a) Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realisable value. Finished Stocks and Work-in-Process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Finished stocks lying in the factory includes provision for excise duty liability. Finished stocks in transit are valued inclusive of excise duty and insurance and those lying at the depots are valued inclusive of excise duty, insurance and inward freight.

b) Cost for the purposes of valuation of raw-material, bought out parts and stores and tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit underthe CenvatA/AT scheme.

c) Costs of conversion for the purposes of valuation of finished stock and work-in-process include fixed and variable production overheads incurred in converting materials into finished goods.

d) Machinery spares and maintenance materials are charged out as expenses in the year of purchase.

ii) Sundry Debtors

Sundry Debtors & Loans and Advances are stated, after making adequate provision for doubtful debts, if any.

g) Provisions

Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provisions reflect best estimate based on available information.

h) Employee Benefits

i) Privilege Leave Entitlements

Privilege leave entitlements are recognised as a liability, in the calendar year of rendering of service, as per the rules of the company. As accumulated leave can be availed and/or encashed at anytime during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

ii) Gratuity

Payment for present liability of future payment of gratuity is being made to approved Gratuity Fund, which covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India. However, any deficits in Plan Assets managed by LIC as compared to the actuarial liability is recognised as a liability.

iii) Superannuation

Contribution to Superannuation Fund is being made as per the Scheme of the Company under Cash Accumulation Policy of the Life Insurance Corporation of India.

iv) Provident Fund

Provident Fund Contributions are made to Companys Provident Fund Trust.

v) Employees Pension Scheme

Contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

i) Foreign Exchange Transactions

Transactions in Foreign currency are recorded in the financial statements based on the Exchange rate existing at the time of the transaction.

j) Taxation

i) Provision for Taxation is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between Book Profits and Taxable Profits are accounted for to the extent deferred tax liabilities are expected to crystallise with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised.

Deferred Tax provisions are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

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