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Accounting Policies of Makers Laboratories Ltd. Company

Mar 31, 2015

A. Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation as more fully described in point no. 2 (e) below.

b. Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of Income and Expenses during the period. The estimates and assumptions used in the financial statements are based upon the management's evaluation of the relevant facts and circumstances as on the date of financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates

c. Revenue Recognition:

i) Revenue from sale of goods is recognised net of returns on transfer of significant risk and rewards in respect of ownership to the buyer which is generally on dispatch of goods. Local sales includes excise duty.

ii) Revenue in respect of insurance/other claims, commission, etc. are recognised only when it is reasonably certain that ultimate collection will be made.

iii) Interest income is recognised on time proportion basis.

iv) Dividend income is accounted when the right to receive the same is established.

d. Fixed Assets:

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized till the assets are ready for use and include financing costs relating to any borrowing attributable to the acquisition of qualifying fixed assets. Capital work in progress and Intangible assets in progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

e. Depreciation / Amortization / Impairment:

Depreciation on Fixed Assets is provided on the useful lives of the assets in the manner prescribed in Schedule II of Companies Act, 2013. Depreciation for asset purchased/sold during a period is proportionately charged. Intangible Asset are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

I mpairment of assets is ascertained at each balance sheet date in respect of the Company's Fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f. Leased Asset :- Operating Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease payments under operating leases are recognized as an expenses with reference to lease terms and other considerations.

g. Foreign Currency Transactions:

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognised in the Statement of Profit and Loss.

h. Investments:

Long term Investment are stated at cost. Diminution in the value of Investment is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

i. Inventories:

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials

At cost net of CENVAT computed on First-In-First-Out -method.

Work- in- process and Finished Goods

At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realisable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable

Stores & Spares

Stores and spare parts are valued at purchase cost.

j. Employee Benefits:

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

k. Taxation:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred Tax is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

l. Cash Flow Statement:

Cash flows are reported using indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

m. Cash and Cash Equivalent:

Cash and cash equivalents in the Balance Sheet comprise cash at bank, cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

n. Earnings Per Share:

The earnings considered in ascertaining the Company's earnings per share comprise the net profit after tax and include the post-tax effect of any extra-ordinary items. The number of shares used in computing basic earnings per share, is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the shares considered for deriving basic earnings per share and also number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

o. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

p. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and its probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. The provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current best estimates. Contingent liabilities are not recognized in the financial statements but disclosed in Notes to Accounts. A contingent asset is neither recognized nor disclosed in the financial statements.

Note: i) Employer's contribution includes payments made by the Company directly to its past employees.

ii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

iii) The Company's Gratuity fund is managed by Life Insurance Corporation of India. The plan assets under the fund are deposited under approved securities.

Note : In accordance with the provisions of Schedule II to the Companies Act, 2013, effective from 1st April,2014, the Company has revised the useful lives of its fixed assets. As a consequence of such revision the charge for depreciation for the year is higher than the previously applied rates by Rs. 52,16,109/-. For assets that have completed the useful lives as a consequence of the aforesaid revision, the carrying value as on 1st April,2014 of Rs. 5,78,545/- has been charged to the opening balance of the surplus in Statement of Profit & Loss net of deferred tax effect thereon of Rs. 2,00,000/-.


Mar 31, 2013

A) Accounting Convention

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act, 1956

The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could differ from those Estimates.

c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT / Service Tax Credit availed.

ii) Intangible assets are recorded at cost of acquisition.

e) Depreciation, Amortization and Impairment

Depreciation on fixed assets is charged on straight line method at Dombivli and Head Office and on Written Down Value method at Ahmadabad in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act,1956.

Intangible assets are amortized over the economic useful life estimated by the Management.

Impairment of assets is ascertained at each balance sheet date in respect of the Company''s Fixed assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

h) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First-Out method. Work- in- process and Finished Goods : At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In- Process and the same or net realizable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares : Stores and spare parts are valued at purchase cost.

i) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank,cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

j) CENVAT Credit

CENVAT Credit utilized during the year is accounted for in excise duty expenses account and unutilized CENVAT balance at the year end is considered as advance excise duty.

k) Service Tax Credit

Service Tax credit utilized during the year towards excise liability is accounted in Excise duty and unutilized Service Tax credit at the year end is considered as advance excise duty.

l) Sales

Local Sales include Excise duty.

m) Revenue Recognition

Revenue in respect of insurance / other claims, interest, commission etc. are recognized only when it is reasonably certain that the ultimate collection will be made.

n) Contingent Liabilities

These are disclosed by way of notes to the accounts . Provision is made in respect of those liabilities which are likely to materialize after the year end, till the finalization of accounts and have material effect on the position stated in the Balance Sheet.

o) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

p) Research & Development

Revenue expenditure on research & development is charged to Statement of Profit & Loss in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

q)Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.

r) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961. Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2012

A) Accounting convention

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year, except for the change in accounting policy explained herein below.

The Company was presenting local sales inclusive of sales tax and excise duty, the same is now presented inclusive of excise duty only. The impact of this change on the profit/loss for the year is Rs. Nil.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could differ from those Estimates.

c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT / Service Tax Credit availed.

ii) Intangible assets are recorded at cost of Acquisition.

e) Depreciation, Amortization and Impairment

Depreciation on fixed assets is charged on Straight Line method at Dombivli and Head Office and on Written Down Value method at Ahmadabad in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act,1956.

Intangible assets are amortized over the economic useful life estimated by the Management. Impairment of assets is ascertained at each balance sheet date in respect of the Company's Fixed Assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

h) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First- Out method.

Work- in- process and Finished Goods : At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realizable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares : Stores and spare parts are valued at purchase cost.

i) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank,cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

j) CENVAT Credit

CENVAT Credit utilized during the year is accounted for in excise duty expenses account and unutilized CENVAT balance at the year end is considered as advance excise duty,

k) Service Tax Credit

Service Tax credit utilized during the year towards excise liability is accounted in Excise duty and unutilized Service Tax credit at the year end is considered as advance excise duty.

l) Sales

Local Sales include Excise duty.

m) Revenue Recognition

Revenue in respect of insurance / other claims, interest, commission etc. are recognized only when it is reasonably certain that the ultimate collection will be made.

n) Contingent Liabilities

These are disclosed by way of notes to the accounts . Provision is made in respect of those liabilities which are likely to materialize after the year end, till the finalization of accounts and have material effect on the position stated in the Balance Sheet.

o) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

p) Research & Development

Revenue expenditure on research & development is charged to Statement of Profit & Loss in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

q) Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.

r) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961. Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2011

A) System of Accounting

The Company follows accrual system of accounting for all items of revenue and costs.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act, 1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT/ Service Tax Credit availed. ii) Intangible Assets are recorded at cost of acquisition.

e) Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on straight line method at Dombivli and Head Office and on Written Down Value method at Ahmedabad in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

Intangible assets are amortised over the economic useful life estimated by the Management.

Impairment of assets is ascertained at each balance sheet date in respect of the Companys fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Profit & Loss Account.

h) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First-Out method.

Work- in- process and Finished Goods: At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realisable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares: Stores and spare parts are valued at purchase cost.

i) CENVAT Credit

CENVAT Credit utilised during the year is accounted for in excise duty expenses account and unutilised CENVAT balance at the year end is considered as advance excise duty.

j) Service Tax Credit

Service Tax credit utilised during the year towards excise liability is accounted in Excise duty and unutilised Service Tax credit at the year end is considered as advance excise duty.

k) Sales

Local Sales include Excise duty & Sales tax. Export sales include exchange difference on realisation / negotiation.

l) Revenue Recognition

Revenue in respect of insurance/ other claims, interest, commission etc. are recognised only when it is reasonably certain that the ultimate collection will be made.

m) Contingent Liabilities

These are disclosed by way of notes to the accounts. Provision is made in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

n) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Profit & Loss Account.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

o) Research & Development

Revenue expenditure on research & development is charged to Profit & Loss Account in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

p) Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement/negotiation. Foreign currency transaction remaining not settled/negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognised in the Profit and Loss Account.

q) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961.

Deferred Tax is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2010

(a) System of Accounting

The Company follows accrual system of accounting for all items of revenue and costs.

(b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

(c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

(d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT/Service Tax Credit availed. ii) Intangible Assets are recorded at cost of acquisition.

(e) Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on straight line method in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

Intangible assets are amortised over the economic useful life estimated by the Management.

Impairment of assets is ascertained at each balance sheet date in respect of the Companys Fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

(f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

(g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Profit & Loss Account.

(g) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials: At cost net of CENVAT computed on First-In-First-Out -method.

Work- in- process and Finished Goods: At cost including material cost net of CENVAT, labour cost and

production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realisable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares: Stores and spare parts are valued at purchase cost.

(i) CENVAT Credit

CENVAT Credit utilised during the year is accounted for in excise duty expenses account and unutilised CENVAT balance at the year end is considered as advance excise duty.

(j) Service Tax Credit

Service Tax credit utilised during the year towards excise liability is accounted in Excise duty and unutilised Service Tax credit at the year end is considered as advance excise duty.

(k) Sales

Local Sales include Excise Duty & Sales Tax. Export sales include exchange difference on realisation / negotiation.

(l) Revenue Recognition

Revenue in respect of insurance/other claims, interest, commission etc., are recognised only when it is reasonably certain that the ultimate collection will be made.

(m) Contingent Liabilities

These are disclosed by way of notes to the accounts. Provision is made in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(n) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Profit & Loss Account.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them.

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

(o) Research & Development

Revenue expenditure on research & development is charged to Profit & Loss Account in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

(p) Foreign Exchange Transactions

Transactions denominated in foreign currency settled/negotiated during a month are recorded at exchange rate on the date of settlement/negotiation. Foreign currency transaction remaining not settled/negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognised in the Profit and Loss Account.

(q) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961.

Deferred Tax is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

 
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