Mar 31, 2016
Note: 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 BASIS OF ACCOUNTING
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 circular 15/2013 dated 13th September, 2013 read with circular 08/2014 dated 4th April, 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 (the ''Act'') shall continue to apply. Consequently, these financial statements have been prepared to comply, in all material aspects, with the accounting standards notified under Section 133 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the other relevant provisions of the Companies Act, 1956 (the ''Act'').
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Act.
1.2 TANGIBLE FIXED ASSETS
a) Tangible Fixed Assets are stated at cost of acquisition or construction including any attributable cost for bringing the asset to its working condition for its intended use or at revalued amounts wherever such assets have been revalued. Subsequent expenditures related to an item of fixed asset (tangible or intangible) are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.
b) Losses arising from retirement of and gain & losses arising from disposal of fixed assets are recognized in Statement of Profit and Loss.
c) Capital Work In Progress is stated at cost.
1.3 INTANGIBLE ASSETS
Intangible assets are capitalized where it is expected to provide future enduring economic benefits. Costs incurred on acquisition of intangible assets are capitalized.
1.4 DEPRECIATION AND AMORTISATION
a) Depreciation on tangible fixed assets is provided as per estimated useful life given in Schedule II to the Companies Act, 2013 after retaining 5% of assets historical value.
b) Intangible assets are amortized over its estimated useful life from the date of its capitalization.
c) Additions on account of exchange fluctuation are depreciated prospectively over the remaining life of the assets.
1.5 IMPAIRMENT OF ASSTES
Assessment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired.
An impairment loss, if any, is recognized wherever the carrying amount of the fixed assets exceeds the recoverable amount i.e. the higher of the assets'' net selling price and value in use. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable account.
1.6 INVESTMENTS
Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments.
Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost less write down for any diminution, other than temporary, in carrying value.
1.7 INVENTORIES
a) Inventories are valued at lower of cost or net realizable value. Cost of finished goods comprise of materials costs, labor and other appropriate overheads, where applicable. Cost for Raw materials, stores & spares are determined on the basis of weighted average method.
b) Inventories of finished goods include goods yet to be graded and marked. Excise duty on finished goods are provided after grading and marking.
c) Spares for specific Plant & Machinery are amortized over the useful life of the related Plant & Machinery, as estimated by the management.
d) Inventories are written down for obsolete / slow moving / non-moving items, wherever necessary.
1.8 PLANTATION WORK-IN-PROGRESS
Plantation work-in-progress is stated at cost.
Plantation work-in-progress includes cultivation and other expenses allocable to the same, which are carried forward till the commercial exploitation of the plantations raised. The wood procured on harvesting is transferred to the operations at the estimated proportionate cost incurred till harvesting and the corresponding amount is adjusted against the plantation work-in-progress.
Plantation Work-in-Progress also includes cost of raising/procurement of seedlings which are adjusted at the time of sale/consumption of such seedlings.
1.9 CDM PROJECT
The expenses incurred in relation to the CDM Project have been shown under the head Advances and the appropriation for such expenses shall be accounted for in the year of realization of Carbon Credit.
1.10 FOREIGN CURRENCY TRANSLATION
Transactions in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are reinstated at exchange rates prevailing on that date. The resultant exchange differences arising from settlement of foreign currency transactions and from the year-end restatement are recognized in the Statement of Profit and Loss
1.11 REVENUE
Revenue from sale of goods are recognized when the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract. It includes excise duty but excludes value added tax/sales tax, trade discounts, returns, as applicable.
1.12 EMPLOYEE BENEFITS
Short term Employee Benefits
Short-term Employee Benefits (i.e. benefits falling due within one year after the end of the period in which employees render the related service) are recognized as expenses in the period in which employee services are rendered as per the Company''s scheme based on expected obligations on undiscounted basis.
Post Employment Benefit Plans
Under Defined Contribution Plans, contributions payable in keeping with the related schemes are recognized as expenses for the year.
For Defined Benefit Plans, the cost of providing benefits is determined using the ''Projected Unit Credit Method'', with actuarial valuations carried out at each Balance Sheet date. Actuarial gains and losses are recognized as income or expenditure immediately in full in the Statement of Profit and Loss for the year in which they occur. The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, if any and as reduced by the fair value of scheme assets.
Other Lomg-term Employee Benefits
Leave encashment/Compensated Absence is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognized immediately in the Statement of Profit and Loss for the year in which they occur. Other long-term employee benefits obligation are recognized on actual basis at each Balance Sheet date.
1.13 BORROWING COST
- General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are incurred
1.14 SHARE ISSUE EXPENSE
- Share issue expense incurred for issue of 7.5% Non-Cumulative redeemable preference share are amortized over the period Shares remain outstanding.
1.15 DEFERRED REVENUE EXPENSES
Deferred revenue expenses are written off in five equal installments commencing from the year in which these expenses are incurred.
1.16 INCOME TAX
- Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961.
Deferred tax assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognized using the tax rates and tax laws that have been enacted or substantively enacted.
1.17 LEASES
Leases in which a significant portion of the risks and rewards of ownership are retained by the less or are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss.
1.18 CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.
1.19 EARNING PER SHARE
Basic earnings per share is calculated by dividing the net profit /(loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit/(loss) for the period after deducting preference dividends and any attributable tax there to for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit /(loss) for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
1.20 PROVISIONS AND CONTINGENT LIABILITIES
Provisions: Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
1.21 USE OF ESTIMATES
The presentation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.
Mar 31, 2015
1.1 BASIS OF ACCOUNTING
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 circular 15/2013 dated
13th September, 2013 read with circular 08/2014 dated 4th April, 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 (the 'Act') shall
continue to apply. Consequently, these financial statements have been
prepared to comply, in all material aspects, with the accounting
standards notified under Section 133 read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the other relevant provisions of the
Companies Act, 1956 (the 'Act').
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule VI to the Act.
1.2 TANGIBLE FIXED ASSETS
a) Tangible Fixed Assets are stated at cost of acquisition or
construction including any attributable cost for bringing the asset to
its working condition for its intended use or at revalued amounts
wherever such assets have been revalued.Subsequent expenditures related
to an item of fixed asset (tangible or intangible) are added to its
book value only if they increase the future benefits from the existing
asset beyond its previously assessed standard of performance.
b) Losses arising from retirement of and gain & losses arising from
disposal of fixed assets are recognised in the Statement of Profit and
Loss.
c) Capital Work In Progress is stated at cost.
1.3 INTANGIBLE ASSETS
Intangible assets are capitalized where it is expected to provide
future enduring economic benefits. Costs incurred on acquisition of
intangible assets are capitalized.
1.4 DEPRECIATION AND AMORTISATION
a) Depreciation on tangible fixed assets is provided as per estimated
useful life given in Schedule II to the Companies Act, 2013 after
retaining 5% of assets historical value.
b) Intangible assets are amortised over its estimated useful life from
the date of its capitalization.
c) Additions on account of exchange fluctuation are depreciated
prospectively over the remaining life of the assets.
1.5 IMPAIRMENT OF ASSTES
Assessment is done at each Balance Sheet date as to whether there is
any indication that an asset (tangible and intangible) may be impaired.
An impairment loss, if any, is recognised wherever the carrying amount
of the fixed assets exceeds the recoverable amount i.e. the higher of
the assets' net selling price and value in use. The impairment loss
recognised in prior accounting periods is reversed if there has been a
change in the estimate of recoverable account.
1.6 INVESTMENTS
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments.
Current investments are carried at cost or fair value, whichever is
lower. Long-term investments are carried at cost less write down for
any diminution, other than temporary, in carrying value.
1.7 INVENTORIES
a) Inventories are valued at lower of cost or net realisable value.
Cost of finished goods comprise of material costs, labour and other
appropriate overheads, where applicable. Cost for raw materials, stores
& spares are determined on the basis of weighted average method.
b) Inventories of finished goods include goods yet to be graded and
marked. Excise duty on finished goods are provided after grading and
marking
c) Spares for specific Plant & Machinery are amortized over the useful
life of the related Plant & Machinery, as estimated by the management.
d) Inventories are written down for obsolete/slow moving/non-moving
items, wherever necessary.
1.8 PLANTATION WORK-IN-PROGRESS
Plantation work-in-progress is stated at cost.
Plantation work-in-progress includes cultivation and other expenses
allocable to the same, which are carried forward till the commercial
exploitation of the plantations raised. The wood procured on harvesting
is transferred to the operations at the estimated proportionate cost
incurred till harvesting and the corresponding amount is adjusted
against the plantation work-in-progress.
Plantation Work-in-Progress also includes cost of raising/procurement
of seedlings which are adjusted at the time of sale/consumption of such
seedlings.
1.9 CDM PROJECT
The expenses incurred in relation to the CDM Project have been shown
under the head Advances and the appropriation for such expenses shall
be accounted for in the year of realisation of Carbon Credit.
1.10 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rates
prevailing on the date of transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled at the end of the year are reinstated at exchange rates
prevailing on that date. The resultant exchange differences arising
from settlement of foreign currency transactions and from the year-end
restatement are recognised in the Statement of Profit and Loss.
1.11 REVENUE
Revenue from sale of goods are recognised when the significant risks
and rewards of ownership in the goods are transferred to the buyer as
per the terms of the contract. It includes excise duty but excludes
value added tax/sales tax, trade discounts, returns, as applicable.
1.12 EMPLOYEE BENEFITS
Short term Employee Benefits
Short-term Employee Benefits (i.e. benefits falling due within one year
after the end of the period in which employees render the related
service) are recognised as expenses in the period in which employee
services are rendered as per the Company's scheme based on expected
obligations on undiscounted basis.
Post Employment Benefit Plans
Under Defined Contribution Plans, contributions payable in keeping with
the related schemes are recognised as expenses for the year.
For Defined Benefit Plans, the cost of providing benefits is determined
using the 'Projected Unit Credit Method', with actuarial valuations
carried out at each Balance Sheet date. Actuarial gains and losses are
recognised as income or expenditure immediately in full in the
Statement of Profit and Loss for the year in which they occur. The
retirement benefit obligation recognised in the Balance Sheet
represents the present value of the defined benefit obligation as
adjusted for unrecognized past service cost, if any and as reduced by
the fair value of scheme assets.
Other Lomg-term Employee Benefits
Leave encashment/Compensated Absence is determined using Projected Unit
Credit Method with actuarial valuation being carried out at each
Balance Sheet date. Actuarial gains and losses and past service cost
are recognised immediately in the Statement of Profit and Loss for the
year in which they occur. Other long-term employee benefits obligation
are recognised on actual basis at each Balance Sheet date.
1.13 BORROWING COST
- General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognised in the
statement of Profit and Loss in the period in which they are incurred.
1.14 SHARE ISSUE EXPENSE
* Share issue expenses incurred for issue of 7.5% Non- cumulative
Redeemable Preference Share are amortized over the period Shares remain
outstanding.
1.15 DEFERRED REVENUE EXPENSES
Deferred revenue expenses are written off in five equal installments
commencing from the year in which these expenses are incurred.
1.16 INCOME TAX
* Tax expense comprises current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961.
* Deferred tax assets and liabilities arising on account of timing
differences and which are capable of reversal in subsequent periods are
recognised using the tax rates and tax laws that have been enacted or
substantively enacted.
1.17 LEASES
Leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases are charged to the
Statement of Profit and Loss.
1.18 CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash in hand, demand deposits with
banks, other short-term highly liquid investments with original
maturities of three months or less.
1.19 EARNING PER SHARE
Basic earning per share is calculated by dividing the net profit /(loss)
for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share is the net
profit/(loss) for the period after deducting preference dividends and
any attributable tax thereto for the period. The weighted average number
of equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit /(loss) for the period attributable to equity shareholders and
the weighted average number of equity shares outstanding during the
period is adjusted for the effects of all dilutive potential equity
shares.
1.20 PROVISIONS AND CONTINGENT LIABILITIES
Provisions : Provisions involving substantial degree of estimation in
measurement are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources.
* Contingent Liabilities : Contingent liabilities are disclosed when
there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non occurrence of
one or more uncertain future events not wholly within the control of
the company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made.
1.21 USE OF ESTIMATES
The presentation of financial statements in conformity with Indian GAAP
requires the management to make judgements, estimates and assumptions
that effect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in the future periods.
Mar 31, 2014
1.1 8ASIS OF ACCOUNTING
The financial statements are prepared under the historical cost
convention, except stated otherwise, on an accrual basis and in
accordance with [he generally accepted accounting principles in India,
the applicable mandatory Accounting Standards as notified by the
Companies (Accounting Standard) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956.
The financial statements had been prepared and presented as per the
requirement of Revised Schedule VI as.notified, under Companies Act
1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act, 1956 ("The
Act"). 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 - noh current classification of
assets and liabilities.
1.2 TANGIBLE FIXED ASSETS
Tangible Fined Assets are stated at cost of acquisition or construction
including any attributable cost for bringing the asset to its working
condition for Its Intended use or at revalued amounts wherever such
assets have been revalued.
Losses arising from retirement of and gains & losses arising from
disposal of fixed assets are recognized in Profit and Loss Statement.
Capital Work In Progress is stated at cost,
1.3 INTANGIBLES ASSETS
Intangible assets are capitalized where it Is expected to provide
future enduring economic benefits. Costs incurred on acquisition of
intangible assets are capitalized.
1.4 DEPRECIATION AND AMORTISATION
Depreciation on tangible fixed assets is provided on Straight Line
Method at the rates given in Schedule XIV to the Companies Act, 1956,
Intangible assets are amortised over its estimated useful life from the
date of its capitalization.
Additions on account of exchange fluctuation are depreciated
prospectively over the remaining life of the assets.
1.5 INVESTMENTS
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
cost or fair vaiue, whichever is lower. Long-term investments are
carried at cost.
1.6 INVENTORIES
Inventories of finished goods Include goods yet to be graded and
marked. Excise duty on finished goods is provided after grading and
marking.
Inventories are valued at lower of cost or net realisable value. Cost
for own manufactured goods comprise of materials, labour and other
appropriate overheads. Cost for Raw materials, stores and spares are
determined on the basis of weighted average method. Cost of traded
goods is determined on estimated cost basis.
Spares for specific Plant & Machinery are amortized over the useful
life of the related Plant &. Machinery, as estimated by the management.
1.7 PLANTATION WORK-IN-PROGRESS
Plantation work-in-progress Is stated at cost.
- Plantation work-in-progress includes cultivation and other expenses
allocable to the same, which are carried forward till the commercial
exploitation of the plantations raised. The wood procured on
harvesting is transferred to the operations at the estimated
proportionate cost incurred till harvesting and the corresponding
amount is adjusted against the plantation work-in-progress.
Plantation Work-in-Progress also includes cost of raising/procurement
of seedlings which are adjusted at the time of sate/consumption of such
seedlings.
1.8 CDM PROJECT
The expenses Incurred In relation to the CDM Project have been shown
under the head Advances and the appropriation for such expenses shall
be accounted for in the year of realisation of Carbon Credit.
1.9 FOREIGN CURRENCY TRANSLATION
Transactions in foreign currency are accounted for at the exchange
rates prevailing on the date of transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled at the end of the year are translated at year end exchange
rates. Gains/losses arising out of fluctuations In the exchange rates
are recognised In Profit and Loss Statement In the period In which they
arise
1.10 EMPLOYEE BENEFITS
a) Short-term Employees Benefits
Short-term Employee Benefits (i.e. benefits payable within one year)
are recognised in the period in which employee services are rendered.
b) Long-term Employees Benefits
Leave encashment and Compensated Absence is determined using Projected
Unit Credit Method with actuarial valualion being carried out at each
Balance Sheet date. Actuarial gains and losses and past service cost
are recognised immediately in the Profit and Loss Statement for the
year in which they occur.
Other long-term benefits which are not encashable are recognised on
actual basis at each Balance Sheet date.
c) Post Employment Benefit Plans
Under Defined Contribution Plans, contributions payable in keeping with
the related schemes are recognised as expenses for the year.
For Defined Benefit Plans, the cost of porviding benefits Is determined
using the ''Projected Unit Credit Method'', with actuarial valuations
carried out at each Balance Sheet date. Actuarial gains and losses are
recognised as income or expenditure immediately in full in the Profit
and Loss Statement for the year in which they occur.The retirement
benefit obligation recognised in the Balance Sheet represents the
present value of the defined benefit obligation as adjusted for
unrecognized past service cost, if any and as reduced by the fair value
ol scheme assets.
1.11 SALES
Sales are recognised when the substantial risks and rewards of
ownership in the goods are transferred to the buyer as per the terms of
the contract and are recognised net of trade discounts/allowance, sales
return and sales taxes/value added tax.
1.17 INCOME AND EXPENDITURE
Income and expenditure unless otherwise stated are recognised on
accrual basis. Subsidies, insurance claims, export benefits and other
claims are accounted for on acceptance/ascertainment of amount
recoverable,
1.13 BORROWING COST
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
lor their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognised In
Profit and Loss Statement in the period in which they are incurred
1.14 SHARE ISSUE EXPENSE
Share issue expense Incurred for issue of 7.5% Non- cumulative
Redeemable Preference Share are amortized over the period Shares
remaining outstanding,
1.15 DEFERRED REVENUE EXPENSES
Deferred revenue expenses are written off in five equal installments
commencing from the year in which these expenses are Incurred.
1.16 INCOME TAX
Tax expense comprises current and deferred tax: Current Income tax Is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income- tax Act, 1961,
Deferred tax assets and liabilities arising on account of timing
differences and which are capable of reversal tn subsequent periods are
recognised using the tax rates and tax laws that have been enacted or
substantively enacted.
As at the balance sheet date, unless there is an evidence to the
contrary, deferred tax assets pertaining to business loss are only
recognised to the extent that there are deferred tax liabilities
offsetting them.
1.17 IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Statement in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting periods is reversed
if there has been a change in the estimate (if recoverable account.
MM CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash In hand, demand deposits with
banks, other short-term highly liquid investments with original
maturities of three months or less.
1.19 EARNING PER SHARE
Basic earnings per share is calculated by dividing the net profit
/(loss) for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
Earnings considered in ascertaining the Company''s earnings per share is
the net profit/I loss) for the period after deducting preference
dividends and any attributable tax thereto for the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares, that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, (he net profit /{loss) for the period
attributable to equity shareholders and the weighted average number of
equity shares outstanding during the period is adjusted for the effects
of all dilutive potential equity shares.
1.20 PROVISIONS AND CONTINGENT LIABILITIES
Provisions : Provisions involving substantial degree of estimation In
measurement are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made. Is termed
as a contingent liability
1.21 USE OF ESTIMATES
The presentation of financial statements In conformity with Indian GAAP
requires the management to make judgements, estimates and assumptions
that effect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in the future periods.
Mar 31, 2013
1.1 Basis of Accounting
- The financial statements are prepared under the historical cost
convention, except stated otherwise, on an accrual basis and in
accordance with the generally accepted accounting principles in India,
the applicable mandatory Accounting Standards as notified by the
Companies (Accounting Standard) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956.
- The financial statements had been prepared and presented as per the
requirement of Revised Schedule VI as notified under Companies Act
1956.
1.2 FIXED ASSETS
- Fixed Assets are stated at cost of acquisition or construction
including any attributable cost for bringing the asset to its working
condition for its intended use or at revalued amounts wherever such
assets have been revalued.
1.3 INTANGIBLES
- Costs incurred on acquisition of intangible assets are capitalized.
1.4 DEPRECIATION
- Depreciation on tangible assets is provided on Straight Line Method
at the rates given in Schedule XIV to the Companies Act, 1956.
- Intangible assets are amortised on Straight Line Method at the rates
given in schedule XIV to the Companies Act, 1956.
- Extra shift depreciation on plant and machinery is provided on the
basis of actual number of working days worked by respective plants.
- Certain Plant and Machinery based on technical evaluation have been
considered by the management as the continuous process plant and these
have accordingly been depreciated at the prescribed rates.
- Additions on account of exchange fluctuation are depreciated
prospectively over the remaining life of the assets.
1.5 INVESTMENTS
- Investments are stated at cost.
1.6 INVENTORIES
- Inventories of finished goods include goods yet to be graded and
marked. Excise duty on finished goods is provided after grading and
marking.
- Inventories are valued at lower of cost or net realisable value. Cost
for own manufactured goods comprise of materials, labour and other
appropriate overheads. Cost for Raw materials, stores and spares are
determined on the basis of weighted average method. Cost of traded
goods is determined on estimated cost basis.
- Spares for specific Plant & Machinery are amortized over the useful
life of the related Plant & Machinery, as estimated by the management.
1.7 PLANTATION WORK-IN-PROGRESS
- Plantation work-in-progress is stated at cost.
- Plantation work-in-progress includes cultivation and other expenses
allocable to the same, which are carried forward till the commercial
exploitation of the plantations raised. The wood procured on
harvesting is transferred to the operations at the estimated
proportionate cost incurred till harvesting and the corresponding
amount is adjusted against the plantation work-in-progress.
- Plantation Work-in-Progress also includes cost of raising/procurement
of seedlings which are adjusted at the time of sale/consumption of such
seedlings.
1.8 CDM PROJECT
- The expenses incurred in relation to the CDM Project have been shown
under the head Advances and the appropriation for such expenses shall
be accounted for in the year of realization of Carbon Credit.
1.9 EXCHANGE FLUCTUATION
- Foreign currency transactions are recorded by applying foreign
exchange rate applicable on the date of filing of Bill of Entry.
Exchange rate differences arising on the date of settlement of
transaction are recognised as exchange difference in foreign currency
transaction.
- Year end balances of foreign currency liabilities/receivables
denominated in foreign currency are translated at the applicable
forward contract or year-end rates as the case may be, and the
resultant gains or losses are appropriately adjusted. Variations in
foreign currency liabilities due to exchange fluctuation are adjusted
in Profit and Loss Statement.
1.10 EMPLOYEE BENEFITS
a) Short term Employee Benefits
The undiscounted amount of short-term Employee Benefits expected to be
paid in exchange for the services rendered by employees is recognised
on accrual basis in the Profit & Loss Statement in the year when the
employee actually renders the service.
b) Long-term Employees Benefits
Leave encashment is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date.
Actuarial gains and losses and past service cost are recognised
immediately in the Profit and Loss Statement for the year in which they
occur.
Other long-term benefits which are not encashable are recognised on
actual basis at each Balance Sheet date.
c) Post Employment Benefit Plans
Under Defined Contribution Plans, contributions payable in keeping with
the related schemes are recognised as expenses for the year.
For Defined Benefit Plans, the cost of providing benefits is determined
using the Rs.Projected Unit Credit Method'', with actuarial valuations
carried out at each Balance Sheet date. Actuarial gains and losses are
recognised as income or expenditure immediately in full in the Profit
and Loss Statement for the year in which they occur. The retirement
benefit obligation recognised in the Balance Sheet represents the
present value of the defined benefit obligation as adjusted for
unrecognized past service cost, if any and as reduced by the fair value
of scheme assets.
1.11 SALES
- Sales are inclusive of Excise duty but exclusive of VAT unless
otherwise stated. Rebates, returns, discounts and allowances are netted
therefrom.
1.12 INCOME AND EXPENDITURE
- Income and expenditure unless otherwise stated are recognised on
accrual basis. Subsidies, insurance claims, export benefits and other
claims are accounted for on acceptance/ ascertainment of amount
recoverable.
1.13 BORROWING COST
- Borrowing cost incurred in relation to the acquisition, construction
of assets are capitalised as part of the cost of such assets upto the
date when such assets are ready for intended use. Other borrowing costs
are charged as an expense in the year in which they are incurred.
1.14 SHARE ISSUE EXPENSE
- Share issue expense incurred for issue of 7.5% Non- cumulative
Redeemable Preference Share are amortized over the period Shares
remaining outstanding.
1.15 INCOME TAX
- Provision for tax is made for both current and deferred taxes.
Current Tax is provided on the taxable income using the applicable tax
rate and tax laws. Deferred tax assets and liabilities arising on
account of timing differences and which are capable of reversal in
subsequent periods are recognised using the tax rates and tax laws that
have been enacted or substantively enacted.
1.16 IMPAIRMENT OF ASSETS
- An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Statement in the year in which an asset is identified
as impaired. The impairment loss recognised in prior accounting periods
is reversed if there has been a change in the estimate of recoverable
account.
1.17 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
- Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2012
1.1 BASIS OF ACCOUNTING
- The financial statements are prepared under the historical cost
convention, except stated otherwise, on an accrual basis and in
accordance with the generally accepted accounting principles in India,
the applicable mandatory Accounting Standards as notified by the
Companies (Accounting Standard) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956.
- The financial statements had been prepared and presented as per the
requirement of Revised Schedule VI as notified under Companies Act
1956.
1.2 FIXED ASSETS
- Fixed Assets are stated at cost of acquisition or construction
including any attributable cost for bringing the asset to its working
condition for its intended use or at revalued amounts wherever such
assets have been revalued.
1.3 INTANGIBLES
- Costs incurred on acquisition of intangible assets are capitalized.
1.4 DEPRECIATION
- Depreciation on tangible assets is provided on Straight Line Method
at the rates given in Schedule XIV to the Companies Act, 1956.
- Intangible assets are amortised on Straight Line Method at the rates
given in schedule XIV to the Companies Act, 1956.
- Extra shift depreciation on plant and machinery is provided on the
basis of actual number of working days worked by respective plants.
- Certain Plant and Machinery based on technical evaluation have been
considered by the management as the continuous process plant and these
have accordingly been depreciated at the prescribed rates.
- Additions on account of exchange fluctuation are depreciated
prospectively over the remaining life of the assets.
1.5 INVESTMENTS
- Investments are stated at cost.
1.6 INVENTORIES
- Inventories of finished goods include goods yet to be graded and
marked. Excise duty on finished goods is provided after grading and
marking.
- Inventories are valued at lower of cost or net realisable value. Cost
for own manufactured goods comprise of materials, labour and other
appropriate overheads. Cost for Raw materials, stores and spares are
determined on the basis of weighted average method. Cost of traded
goods is determined on estimated cost basis.
- Spares for specific Plant & Machinery are amortized over the useful
life of the related Plant & Machinery, as estimated by the management.
1.7 PLANTATION WORK-IN-PROGRESS
- Plantation work-in-progress is stated at cost.
- Plantation work-in-progress includes cultivation and other expenses
allocable to the same, which are carried forward till the commercial
exploitation of the plantations raised. The wood procured on
harvesting is transferred to the operations at the estimated
proportionate cost incurred till harvesting and the corresponding
amount is adjusted against the plantation work-in-progress.
- Plantation Work-in-Progress also includes cost of raising/procurement
of seedlings which are adjusted at the time of sale/consumption of such
seedlings.
1.8 CDM PROJECT
- The expenses incurred in relation to the CDM Project have been shown
under the head Advances and the appropriation for such expenses shall
be accounted for in the year of realization of Carbon Credit.
1.9 EXCHANGE FLUCTUATION
- Foreign currency transactions are recorded by applying foreign
exchange rate applicable on the date of filing of Bill of Entry.
Exchange rate differences arising on the date of settlement of
transaction are recognised as exchange difference in foreign currency
transaction.
- Year end balances of foreign currency liabilities/receivables
denominated in foreign currency are translated at the applicable
forward contract or year-end rates as the case may be, and the
resultant gains and losses are appropriately adjusted. Variations in
foreign currency liabilities due to exchange fluctuation are adjusted
in Profit and Loss Statement.
1.10 EMPLOYEE BENEFITS
a) Short term Employee Benefits
The undiscounted amount of short-term Employee Benefits expected to be
paid in exchange for the services rendered by employees is recognised
on actual basis in the Profit & Loss Statement in the year when the
employee actually renders the service.
b) Long-term Employees Benefits
Leave encashment is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date.
Actuarial gains and losses and past service cost are recognised
immediately in the Profit and Loss Statement for the year in which they
occur.
Other long-term benefits which are not encashable are recognised on
actual basis at each Balance Sheet date.
c) Post Employment Benefit Plans
Under Defined Contribution Plans, contributions payable in keeping with
the related schemes are recognised as expenses for the year.
For Defined Benefit Plans, the cost of providing benefits is determined
using the 'Projected Unit Credit Method', with actuarial valuations
carried out at each Balance Sheet date. Actuarial gains and losses are
recognised as income or expenditure immediately in full in the Profit
and Loss Statement for the year in which they occur. The retirement
benefit obligation recognised in the Balance Sheet represents the
present value of the defined benefit obligation as adjusted for
unrecognized past service cost, if any and as reduced by the fair value
of scheme assets.
1.11 SALES
- Sales are inclusive of Excise duty but exclusive of Sales tax/VAT
unless otherwise stated. Rebates, returns, discounts and allowances are
netted therefrom.
1.12 INCOME AND EXPENDITURE
- Income and expenditure unless otherwise stated are recognised on
accrual basis. Subsidies, insurance claims, export benefits and other
claims are accounted for on acceptance/ ascertainment of amount
recoverable.
1.13 BORROWING COST
- Borrowing cost incurred in relation to the acquisition, construction
of assets are capitalised as the part of the cost of such assets upto
the date when such assets are ready for intended use. Other borrowing
costs are charged as an expense in the year in which they are incurred.
1.14 INCOME TAX
- Provision for tax is made for both current and deferred taxes.
Current Tax is provided on the taxable income using the applicable tax
rate and tax laws. Deferred tax assets and liabilities arising on
account of timing differences and which are capable of reversal in
subsequent periods are recognised using the tax rates and tax laws that
have been enacted or substantively enacted.
1.15 IMPAIRMENT OF ASSETS
- An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Statement in the year in which an asset is identified
as impaired. The impairment loss recognised in prior accounting periods
is reversed if there has been a change in the estimate of recoverable
account.
1.16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
- Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2011
1. GENERAL
- Accounts are prepared on historical cost adjusted by the revaluation
of certain Fixed Asset and on the accounting principles of a going
concern.
- Accounting policies unless stated otherwise, are consistent
2. FIXED ASSETS
- Fixed Assets are stated at cost of acquisition or construction
including any attributable cost for bringing the asset to its working
condition for its intended use or at revalued amounts wherever such
assets have been revalued.
3. INTANGIBLES
- Costs incurred on acquisition of intangible assets are capitalized
and amortized on a straight-line basis as per rates specified in
Schedule XIV of Companies Act, 1956.
4. DEPRECIATION
- Depreciation is provided on Straight Line Method at the rates given
in Schedule XIV to the Companies Act, 1956.
- Extra shift depreciation on plant and machinery is provided on the
basis of actual number of working days worked by respective plants.
- Certain Plant and Machinery based on technical evaluation have been
considered by the management as the continuous process plant and these
have accordingly been depreciated at the prescribed rates.
- Additions on account of exchange fluctuation are depreciated
prospectively over the remaining life of the assets.
5. INVESTMENTS
- Investments are stated at cost.
6. INVENTORIES
- Inventories of finished goods include goods yet to be graded and
marked. Excise duty on finished goods is provided after grading and
marking.
- Inventories are valued at lower of cost or net realisable value.
Cost for own manufactured goods comprise of materials, labour and other
appropriate overheads. Cost for Raw materials, stores and spares are
determined on the basis of weighted average method. Cost of traded
goods is determined on estimated cost basis.
- Spares for specific Plant & Machinery are amortized over the useful
life of the related Plant & Machinery, as estimated by the management.
7. PLANTATION WORK-IN-PROGRESS
- Plantation work-in-progress is stated at cost.
- Plantation work-in-progress includes cultivation and other expenses
allocable to the same, which are carried forward till the commercial
exploitation of the plantations raised. The wood procured on harvesting
is transferred to the operations at the estimated proportionate cost
incurred till harvesting and the corresponding amount is adjusted
against the plantation work-in-progress.
- Plantation Work-in-Progress also includes cost of raising seedlings
which are adjusted at the time of sale/consumption of such seedlings.
8. CDM PROJECT
- The expenses incurred in relation to the CDM Project have been shown
under the head Advances and subject to the Company's proposal being
registered with the UNFC who deal with the CDM Project, the
appropriation for such expenses shall be accounted for in the year of
realization of Carbon Credit.
9. EXCHANGE FLUCTUATION
- Foreign currency transactions are recorded by applying foreign
exchange rate applicable on the date of filing of Bill of Entry.
Exchange rate differences arising on the date of settlement of
transaction are recognised as exchange difference in foreign currency
transaction.
- Year end balances of foreign currency loans and other
liabilities/receivables denominated in foreign currency are translated
at the applicable forward contract or year-end rates as the case may
be, and the resultant gains and losses are appropriately adjusted.
Variation in foreign currency loans / liabilities due to exchange
fluctuation are adjusted in Profit and Loss Account.
10. EMPLOYEE BENEFITS
a) Short term Employee Benefits
The undiscounted amount of short-term Employee Benefits expected to be
paid in exchange for the services rendered by employees is recognised
on actual basis in the Profit & Loss Account in the year when the
employee actually renders the service.
b) Long-term Employees Benefits
Leave encashment is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date.
Actuarial gains and losses and past service cost are recognised
immediately in the Profit and Loss Account for the year in which they
occur.
Other long-term benefits which are not encashable are recognised on
actual basis at each Balance Sheet date.
c) Post Employment Benefit Plans
Under Defined Contribution Plans, contributions payable in keeping with
the related schemes are recognised as expenses for the year.
For Defined Benefit Plans, the cost of providing benefits is determined
using the `Projected Unit Credit Method', with actuarial valuations
carried out at each Balance Sheet date. Actuarial gains and losses are
recognised as income or expenditure immediately in full in the Profit
and Loss Account for the year in which they occur. The retirement
benefit obligation recognised in the Balance Sheet represents the
present value of the defined benefit obligation as adjusted for
unrecognized past service cost, if any and as reduced by the fair value
of scheme assets.
11. SALES
- Sales are inclusive of Excise duty but exclusive of Sales tax/VAT
unless otherwise stated. Rebates, returns, discounts and allowances are
netted therefrom.
12. INCOME AND EXPENDITURE
- Income and expenditure unless otherwise stated are recognised on
accrual basis. Subsidies, insurance claims, export benefits and other
claims are accounted for on acceptance/ ascertainment of amount
recoverable.
13. BORROWING COST
- Borrowing cost incurred in relation to the acquisition, construction
of assets are capitalised as the part of the cost of such assets upto
the date when such assets are ready for intended use. Other borrowing
costs are charged as an expense in the year in which they are incurred.
14. INCOME TAX
- Provision for tax is made for both current and deferred taxes.
Current Tax is provided on the taxable income using the applicable tax
rate and tax laws. Deferred tax assets and liabilities arising on
account of timing differences and which are capable of reversal in
subsequent periods are recognised using the tax rates and tax laws that
have been enacted or substantively enacted.
15. IMPAIRMENT OF ASSETS
- An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting periods is
reversed if there has been a change in the estimate of recoverable
account.
16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
- Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2010
1. GENERAL
Accounts are prepared on historical cost adjusted by the revaluation of
certain Fixed Asset and on the accounting principles of a going
concern. Accounting policies unless stated otherwise, are consistent.
2. FIXED ASSETS
Fixed Assets are stated at cost of acquisition or construction
including any attributable cost for bringing the asset to its working
condition for its intended use or at revalued amounts wherever such
assets have been revalued.
3. INTANGIBLES
Costs incurred on acquisition of intangible assets are capitalized and
amortized on a straight-line basis as per rates specified in Schedule
XIV of Companies Act, 1956.
4. DEPRECIATION
Depreciation is provided on Straight Line Method at the rates given in
Schedule XIV to the Companies Act, 1956.
Extra shift depreciation on plant and machinery is provided on the
basis of actual number of working days worked by respective plants.
Certain Plant and Machinery based on technical evaluation have been
considered by the management as the continuous process plant and these
have accordingly been depreciated at the prescribed rates.
Additions on account of exchange fluctuation are depreciated
prospectively over the remaining life of the assets.
5. INVESTMENTS
Investments are stated at cost.
6. INVENTORIES
Inventories of finished goods include goods yet to be graded and
marked. Excise duty on finished goods is provided after grading and
marking.
Inventories are valued at lower of cost or net realisable value. Cost
for own manufactured goods comprise of materials, labour and other
appropriate overheads. Cost for Raw materials, stores and spares are
determined on the basis of weighted average method. Cost of traded
goods is determined on estimated cost basis.
Spares for specific Plant & Machinery are amortized over the useful
life of the related Plant & Machinery, as estimated by the management.
7. PLANTATION WORK-IN-PROGRESS
Plantation work-in-progress is stated at cost.
Plantation work-in-progress includes cultivation and other expenses
allocable to the same, which are carried forward till the commercial
exploitation of the plantations raised. The wood procured on harvesting
is transferred to the operations at the estimated proportionate cost
incurred till harvesting and the corresponding amount is adjusted
against the plantation work-in-progress.
Plantation Work-in-Progress also includes cost of raising seedlings
which are adjusted at the time of sale/consumption of such seedlings.
8. CDM PROJECT
The expenses incurred in relation to the CDM Project have been shown
under the head Advances and subject to the Companys proposal being
registered with the UNFC who deal with the CDM Project, the
appropriation for such expenses shall be accounted for in the year of
realization of Carbon Credit.
9. EXCHANGE FLUCTUATION
Foreign currency transactions are recorded by applying foreign exchange
rate applicable on the date of filing of Bill of Entry. Exchange rate
differences arising on the date of settlement of transaction are
recognised as exchange difference in foreign currency transaction.
Year end balances of foreign currency loans and other
liabilities/receivables denominated in foreign currency are translated
at the applicable forward contract or year-end rates as the case may
be, and the resultant gains and losses are appropriately adjusted.
Variation in foreign currency loans / liabilities due to exchange
fluctuation are adjusted in Profit and Loss Account
10. EMPLOYEE BENEFITS
a) Short term Employee Benefits
The undiscounted amount of short-term Employee Benefits expected to be
paid in exchange for the services rendered by employees is recognised
on actual basis in the Profit & Loss Account in the year when the
employee actually renders the service.
b) Long-term Employees Benefits
Leave encashment is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date.
Actuarial gains and losses and past service cost are recognised
immediately in the Profit and Loss Account for the year in which they
occur.
Other long-term benefits which are not encashable are recognised on
actual basis at each Balance Sheet date.
c) Post Employment Benefit Plans
Under Defined Contribution Plans, contributions payable in keeping with
the related schemes are recognised as expenses for the year.
For Defined Benefit Plans, the cost of providing benefits is determined
using the Projected Unit Credit Method, with actuarial valuations
carried out at each Balance Sheet date. Actuarial gains and losses are
recognised as income or expenditure immediately in full in the Profit
and Loss Account for the year in which they occur. The retirement
benefit obligation recognised in the Balance Sheet represents the
present value of the defined benefit obligation as adjusted for
unrecognized past service cost, if any and as reduced by the fair value
of scheme assets.
11. SALES
Sales are inclusive of Excise duty but exclusive of Sales tax/VAT
unless otherwise stated. Rebates, returns, discounts and allowances are
netted therefrom.
12. INCOME AND EXPENDITURE
Income and expenditure unless otherwise stated are recognised on
accrual basis. Subsidies, insurance claims, export benefits and other
claims are accounted for on acceptance/ ascertainment of amount
recoverable.
13. BORROWING COST
Borrowing cost incurred in relation to the acquisition, construction of
assets are capitalised as the part of the cost of such assets upto the
date when such assets are ready for intended use. Other borrowing costs
are charged as an expense in the year in which they are incurred.
14. INCOME TAX
Provision for tax is made for both current and deferred taxes. Current
Tax is provided on the taxable income using the applicable tax rate and
tax laws. Deferred tax assets and liabilities arising on account of
timing differences and which are capable of reversal in subsequent
periods are recognised using the tax rates and tax laws that have been
enacted or substantively enacted.
15. IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting periods is reversed
if there has been a change in the estimate of recoverable account.
16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.