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Accounting Policies of Neulands Global Industries Ltd. Company

Mar 31, 2015

1.01 Basis of Preparation of Financial Statements

The financial statements have been prepared and presented in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except interest on margin money deposits. The GAPP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and the guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in the accounting policy hither to in use. The financial statements are presented in Indian Rupees (Rs. in Lakhs).

1.02 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

1.03 Fixed Assets Intangible Assets

a) Tangible assets are carried at cost of acquisition less accumulated depreciation and impairment, if any. The cost of tangible fixed asset comprises the purchase price (net of rebates and discounts) and any other directly attributable costs of bringing the assets to working condition for their intended use. Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

b) Subsequent expenditure related to an item of Tangible Asset are added to its book value only if the they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

c) Advances paid towards acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready for their intended use before such date are disclosed as capital work-in-progress.

Intangible Assets

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

1.04 Depreciation and Amortisation

a) Depreciation on Tangible Fixed Assets is provided to the extent of depreciable amount using the Straight Line Method (SLM) over the useful lives of the assets as prescribed under part C of Schedule II to the Companies Act, 2013.

b) Depreciation is calculated on a pro-rata basis for the assets purchased /sold during the year.

c) Intangible assets are amortized over their respective individual estimated useful live on a straight line basis.

1.05 Investments

a) Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments".

b) Current Investments are stated at lower of cost or fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

c) The investments in fully owned subsidiaries are carried out at the cost of acquisition as the same are long term investments.

1.06 Revenue Recognition

a) Revenue is recognized when it is earned and to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

b) Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

c) Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty and VAT are recovered is presented as a reduction from Gross turnover.

d) Interest revenue on fixed deposits is recognized on accrual basis.

1.07 Inventories

Inventories are valued at the lower of Cost or Net Realizable Value. Cost of inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is arrived at,

a) In case of raw materials and other trading products on weighted average cost method.

b) In case of stores and spares on weighted average cost method.

c) In case of work in process and finished goods, includes material cost, labour, manufacturing overheads.

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

1.08 Employee Benefits

a) Short-term employee benefits

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

b) Post-employed benefits

i) Long-term employee benefits (benefits which are payable after the end of twelve months from the end of the period in which the employees render service) and post-employment benefits (benefits which are payable after completion of employment) are measured on a discounted basis by the Projected Unit Credit Method on the basis of annual third party actuarial valuations.

ii) Contributions to provident fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense when employees have rendered service entitling them to the contributions.

iii) The gratuity benefit obligations recognized in the Balance Sheet represents the present value of the obligations as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

1.09 Foreign Currency Transactions

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

b) Exchange differences arising on the settlement of monetary items on reporting company's monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

c) Non-monetary items such as investments are carried at historical cost using the exchange rates on the date of the transaction.

d) Closing monetary foreign current assets and current liabilities have been re-instated in the reporting currency at the exchange rate prevailing on balance sheet date, in accordance with Accounting Standard 11 on "The Effects of changes in Foreign Exchange Rates". The difference arising on these transactions being charged/revenue to the Statement of Profit and Loss.

1.10 Taxes on Income

a) Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income".

b) Taxes comprise both current and deferred tax. Current tax is measured at the amount expected to be paid/recovered from the revenue authorities, using the applicable tax rates and laws.

c) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

d) The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability.

e) Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences. They are measured using the substantively enacted tax rates and tax regulations.

f) The carrying amount of deferred tax assets at each balance sheet date is reduced to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which the deferred tax asset can be realized.

g) Tax on distributed profits payable in accordance with the provisions of Section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the year.

1.11 Earnings per Share

a) The Company reports basic and diluted Earnings Per Share (EPS/DEPS) in accordance with Accounting Standard 20 on "Earnings Per Share". Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

b) Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares from the exercise of convertible share warrants of un-issued share capital, except where the results are anti-dilutive.

1.12 Leases

a) Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired on or after 1st April 2001 are capitalized at the fair value or the present value of minimum lease payments at the inception of the lease, whichever is lower.

b) Lease income from assets given on operating lease is recognized as income in the statement of Profit & Loss. Lease payments for assets taken on operating lease are recognized as expense in the Statement of Profit and Loss.

1.13 Segment Reporting

Disclosure is made as per the requirements of the Standard. Details have furnished under Note No.2.32 of Notes to Accounts.

1.14 Impairment of Assets

a) The Company assesses at each balance sheet date whether there is any indication that any assets forming part of its cash generating units may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss.

b) If at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at the re-assessed recoverable amount subject to a maximum of depreciated historical cost.

1.15 Provision for Doubtful Debts /Advances

a) Provision for doubtful debts/ advances is made when there is uncertainty of realization of debts which are long outstanding. All debts which are over and above one year are provided in full unless there is certainty of its recovery.

b) In addition to the above, provision is also made in respect of dues in respect of which suits are filed. Writing off doubtful debts/advances are made when the un-realisability is established.

1.16 Provisions, Contingent Liabilities and Contingent Assets

a) 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.

b) Contingent Liabilities are not recognised but are disclosed in the notes.

c) Contingent Assets are neither recognised nor disclosed in the financial statements.

1.17 Cash Flow statement

Cash Flow Statement has been prepared using the "Indirect Method" as per the Accounting Standard 3 on "Cash Flow Statements"

1.18 Borrowing cost

a) Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

b) All other borrowing costs are charged to profit and loss account

1.19 Related party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifications issued by the Institute of Chartered Accountants of India

1.20 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.


Mar 31, 2013

1.01 Basis of Preparation of Financial Statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting except interest on margin money deposits in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (AS) notified under Section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian Rupees (Rupees in Lakhs).

1.02 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

1.03 Fixed Assets

a) Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets comprises the purchase price (net of rebates and discounts) and any other directly attributable costs of bringing the assets to working condition for their intended use. Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

b) Advances paid towards acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready for their intended use before such date are disclosed as capital work-in-progress.

1.04 Intangible Assets

Intangible Assets are stated at cost of acquisition less accumulated depreciation.

1.05 Depreciation

a. Depreciation on fixed assets is provided using the Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

b. The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as minimum rates. If the management''s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the management''s estimate of the useful life / remaining useful life.

c. Depreciation is calculated on a pro-rata basis from/ upto the date the assets are purchased / sold.

1.06 Investments

a. Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments".

b. Current Investments are stated at lower of cost and fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

c. The investments in fully owned subsidiaries are carried out at the cost of acquisition as the same are long term investments.

1.07 Revenue Recognition

a. Revenue is recognized when it is earned and to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

b. Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

c. Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty and VAT are recovered is presented as a reduction from Gross turnover.

d. Interest revenue on fixed deposits is recognized on accrual basis.

1.08 Inventories

Inventories are valued at the lower of Cost or Net Realizable Value. Cost of inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is arrived at,

a. In case of raw materials and other trading products on weighted average cost method.

b. In case of stores and spares on weighted average cost method.

c. In case of work in process and finished goods, includes material cost, labour, manufacturing overheads.

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

1.09 Employee Benefits

a. Short-term employee benefits

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

b. Post-employed benefits

i. Long-term employee benefits (benefits which are payable after the end of twelve months from the end of the period in which the employees render service) and post-employment benefits (benefits which are payable after completion of employment) are measured on a discounted basis by the Projected Unit Credit Method on the basis of annual third party actuarial valuations.

ii. Contributions to provident fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense when employees have rendered service entitling them to the contributions.

iii. The gratuity benefit obligations recognized in the Balance Sheet represents the present value of the obligations as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

1.10 Foreign Currency Transactions

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

b. Exchange differences arising on the settlement of monetary items on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

c. Non-monetary items such as investments are carried at historical cost using the exchange rates on the date of the transaction.

d. Closing monetary foreign current assets and current liabilities have been re-instated in the reporting currency at the exchange rate prevailing on balance sheet date, in accordance with Accounting Standard 11 on "The Effects of changes in Foreign Exchange Rates" The difference arising on these transactions being charged/revenue to the Statement of Profit and Loss.

1.11 Taxes on Income

a. Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income".

b. Taxes comprise both current and deferred tax. Current tax is measured at the amount expected to be paid/recovered from the revenue authorities, using the applicable tax rates and laws.

c. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

d. The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability.

e. Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences. They are measured using the substantively enacted tax rates and tax regulations.

f. The carrying amount of deferred tax assets at each balance sheet date is reduced to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which the deferred tax asset can be realized.

g. Tax on distributed profits payable in accordance with the provisions of Section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the year.

1.12 Earnings per Share

a. The Company reports basic and diluted Earnings Per Share (EPS/DEPS) in accordance with Accounting Standard 20 on "Earnings Per Share". Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

b. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares from the exercise of convertible share warrants of un-issued share capital, except where the results are anti-dilutive.

1.13 Leases

a. Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired on or after 1st April 2001 are capitalized at the fair value or the present value of minimum lease payments at the inception of the lease, whichever is lower.

b. Lease income from assets given on operating lease is recognized as income in the statement of Profit & Loss account. Lease payments for assets taken on operating lease are recognized as expense in the Statement of Profit and Loss.

1.14 Segment Reporting

Disclosure is made as per the requirements of the Standard. Details have furnished under Note No.2.31 of Notes to Accounts.

1.15 Impairment of Assets

a. The Company assesses at each balance sheet date whether there is any indication that any assets forming part of its cash generating units may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss.

b. If at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at the re- assessed recoverable amount subject to a maximum of depreciated historical cost.

1.16 Provision for Doubtful Debts /Advances

a. Provision for doubtful debts/ advances is made when there is uncertainty of realization of debts which are long outstanding. All debts which are over and above one year are provided in full unless there is certainty of its recovery.

b. In addition to the above, provision is also made in respect of dues in respect of which suits are filed. Writing off doubtful debts/advances are made when the un-realisability is established.

1.17 Provisions, Contingent Liabilities and Contingent Assets

a. 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.

b. Contingent Liabilities are not recognised but are disclosed in the notes.

c. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.18 Cash Flow statement

Cash Flow Statement has been prepared using the "Indirect Method" as per the Accounting Standard 3 on "Cash Flow Statements"

1.19 Borrowing cost

a. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

b. All other borrowing costs are charged to profit and loss account

1.20 Related party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifications issued by the Institute of Chartered Accountants of India

1.21 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.


Mar 31, 2012

1.01 Basis of Preparation of Financial Statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting except interest on Margin Money Deposits in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (AS) notified under Section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian Rupees (Rs. in Lakhs).

1.02 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

1.03 Fixed Assets

a) Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets comprises the purchase price (net of rebates and discounts) and any other directly attributable costs of bringing the assets to working condition for their intended use. Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

b) Advances paid towards acquisition of Fixed Assets outstanding at each Balance Sheet date and the cost of Fixed Assets not ready for their intended use before such date are disclosed as capital work-in-progress.

1.04 Intangible Assets

Intangible Assets are stated at cost of acquisition less accumulated depreciation.

1.05 Depreciation

a) Depreciation on Fixed Assets is provided using the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

b) The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as minimum rates. If the management's estimate of the useful life of a Fixed Asset at the time of acquisition of the Asset or of the remaining useful life on a subsequent review is shorter than envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the management's estimate of the useful life/remaining useful life.

c) Depreciation is calculated on a pro-rata basis from/upto the date the assets are purchased/sold.

1.06 Investments

a) Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments".

b) Current Investments are stated at lower of cost and fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

c) The investments in fully owned subsidiaries are carried out at the cost of acquisition as the same are long term investments.

1.07 Revenue Recognition

a) Revenue is recognized when it is earned and to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

b) Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

c) Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty and VAT are recovered is presented as a reduction from gross turnover.

d) Interest revenue on fixed deposits is recognized on accrual basis.

1.08 Inventories

Inventories are valued at the lower of Cost or Net Realizable Value. Cost of Inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is arrived at,

a) In case of raw materials and other trading products on weighted average cost method.

b) In case of stores and spares on weighted average cost method.

c) In case of work in process and finished goods, includes material cost, labour, manufacturing overheads.

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

1.09 Employee Benefits

a) Short-term employee benefits

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

b) Post-employed benefits

i) Long-term employee benefits (benefits which are payable after the end of twelve months from the end of the period in which the employees render service) and post-employment benefits (benefits which are payable after completion of employment) are measured on a discounted basis by the Projected Unit Credit Method on the basis of annual third party actuarial valuations.

ii) Contributions to Provident Fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense when employees have rendered service entitling them to the contributions.

iii) The gratuity benefit obligations recognized in the Balance Sheet represents the present value of the obligations as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

1.10 Foreign Currency Transactions

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

b) Exchange differences arising on the settlement of monetary items on reporting company's monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

c) Non-monetary items such as investments are carried at historical cost using the exchange rates on the date of the transaction.

d) Closing Monetary Foreign Current assets and current liabilities have been re-instated in the reporting currency at the exchange rate prevailing on Balance Sheet date, in accordance with Accounting Standard 11 on "The Effects of changes in Foreign Exchange Rates" The difference arising on these transactions being charged/revenue to Statement of Profit and Loss.

1.11 Taxes on Income

a) Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income".

b) Taxes comprise both current and deferred tax. Current tax is measured at the amount expected to be paid/recovered from the revenue authorities, using the applicable tax rates and laws.

c) Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

d) The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability.

e) Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences. They are measured using the substantively enacted tax rates and tax regulations.

f) The carrying amount of deferred tax assets at each balance sheet date is reduced to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which the deferred tax asset can be realized.

g) Tax on distributed profits payable in accordance with the provisions of Section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the year.

1.12 Earnings per Share

a) The Company reports basic and diluted Earnings Per Share (EPS/DEPS) in accordance with Accounting Standard 20 on "Earnings Per Share". Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

b) Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares from the exercise of Convertible Share Warrants of un-issued share capital, except where the results are anti-dilutive.

1.13 Leases

a) Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired on or after 1st April 2001 are capitalized at the fair value or the present value of minimum lease payments at the inception of the lease, whichever is lower.

b) Lease income from assets given on operating lease is recognized as income in the Statement of Profit and Loss. Lease payments for assets taken on operating lease are recognized as expense in the Statement of Profit and Loss.

1.14 Segment Reporting

Disclosure is made as per the requirements of the Standard. Details have furnished under Note No. 2.30 of Notes to Accounts.

1.15 Impairment of Assets

a) The Company assesses at each Balance Sheet date whether there is any indication that any assets forming part of its cash generating units may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss.

b) If at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at the re-assessed recoverable amount subject to a maximum of depreciated historical cost.

1.16 Provision for Doubtful Debts/Advances

a) Provision for doubtful debts/advances is made when there is uncertainty of realization of debts which are long outstanding. All debts which are over and above one year are provided in full unless there is certainty of its recovery.

b) In addition to the above, provision is also made in respect of dues in respect of which suits are filed. Writing off doubtful debts/advances are made when the un-realisability is established.

1.17 Provisions, Contingent Liabilities and Contingent Assets

a) 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.

b) Contingent Liabilities are not recognised but are disclosed in the notes.

c) Contingent Assets are neither recognised nor disclosed in the financial statements.

1.18 Cash Flow statement

Cash Flow Statement has been prepared using the "Indirect Method" as per the Accounting Standard 3 on "Cash Flow Statements".

1.19 Borrowing cost

a) Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

b) All other borrowing costs are charged to Statement of Profit and Loss.

1.20 Related party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

1.21 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.


Mar 31, 2011

1. Basis of Preparation of Financial Statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting except interest on Margin Money Deposits in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (AS) notified under Section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian rupees.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

3. Fixed Assets

a. Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets comprises the purchase price (net of rebates and discounts) and any other directly attributable costs of bringing the assets to working condition for their intended use. Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

b. Advances paid towards acquisition of Fixed Assets outstanding at each Balance Sheet date and the cost of Fixed Assets not ready for their intended use before such date are disclosed as capital work-in-progress.

4. Intangible Assets

Intangible Assets are stated at cost of acquisition less accumulated depreciation.

5. Depreciation

a. Depreciation on Fixed Assets is provided using the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

b. The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as minimum rates. If the management's estimate of the useful life of a Fixed Asset at the time of acquisition of the Asset or of the remaining useful life on a subsequent review is shorter than envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the management's estimate of the useful life / remaining useful life.

c. Depreciation is calculated on a pro-rata basis from/ upto the date the assets are purchased /sold.

6. Investments

a. Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments".

b. Current Investments are stated at lower of cost and fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

c. The investments in fully owned subsidiaries are carried out at the cost of acquisition as the same are long term investments.

7. Revenue Recognition

a. Revenue is recognized when it is earned and to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

b. Revenue from sale of Goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

c. Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty and VAT are recovered is presented as a reduction from Gross turnover.

d. Interest revenue on Fixed Deposits is recognized on accrual basis.

8. Inventories

Inventories are valued at the lower of Cost or Net Realizable Value. Cost of Inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is arrived at,

a. In case of Raw materials and other trading products on weighted average cost method.

b. In case of stores and spares on weighted average cost method.

c. In case of Work in Process and Finished Goods, includes material cost, labour, manufacturing overheads.

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

9. Employee Benefits

a. Short-term employee benefits

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

b. Post-employed benefits

i. Long-term employee benefits (benefits which are payable after the end of twelve months from the end of the period in which the employees render service) and post-employment benefits (benefits which are payable after completion of employment) are measured on a discounted basis by the Projected Unit Credit Method on the basis of annual third party actuarial valuations.

ii. Contributions to Provident Fund, a defned contribution plan are made in accordance with the statute, and are recognized as an expense when employees have rendered service entitling them to the contributions.

iii. The gratuity benefit obligations recognized in the Balance Sheet represents the present value of the obligations as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

10. Foreign Currency Transactions

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

b. Exchange differences arising on the settlement of monetary items on reporting company's monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

c. Non-monetary items such as investments are carried at historical cost using the exchange rates on the date of the transaction.

d. Closing Monetary Foreign Current assets and current liabilities have been re-instated in the reporting currency at the exchange rate prevailing on Balance Sheet date, in accordance with Accounting Standard 11 on "The Effects of changes in Foreign Exchange Rates" The difference arising on these transactions being charged/revenue to Profit and Loss Account.

11. Taxes on Income

a. Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income".

b. Taxes comprise both current and deferred tax. Current tax is measured at the amount expected to be paid/recovered from the revenue authorities, using the applicable tax rates and laws.

c. Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

d. The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability.

e. Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences. They are measured using the substantively enacted tax rates and tax regulations.

f. The carrying amount of deferred tax assets at each balance sheet date is reduced to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which the deferred tax asset can be realized.

g. Tax on distributed profits payable in accordance with the provisions of Section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the year.

12. Earnings per Share

a. The Company reports basic and diluted Earnings Per Share (EPS/DEPS) in accordance with Accounting Standard 20 on "Earnings Per Share". Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

b. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares from the exercise of Convertible Share Warrants of un-issued share capital, except where the results are anti-dilutive.

13. Leases

a. Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired on or after 1 April 2001 are capitalized at the fair value or the present value of minimum lease payments at the inception of the lease, whichever is lower.

b. Lease income from assets given on operating lease is recognized as income in the statement of Profit & Loss account. Lease payments for assets taken on operating lease are recognized as expense in the statement of Profit & Loss account.

14. Segment Reporting

Disclosure is made as per the requirements of the Standard. Details have furnished under item No.18 of Schedule 18 Notes on Accounts.

15. Impairment of Assets

a. The Company assesses at each Balance Sheet date whether there is any indication that any assets forming part of its cash generating units may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account.

b. If at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is refected at the re-assessed recoverable amount subject to a maximum of depreciated historical cost.

16. Provision for Doubtful Debts /Advances

a. Provision for Doubtful Debts/ Advances is made when there is uncertainty of realization of debts which are long outstanding. All debts which are over and above one year are provided in full unless there is certainty of its recovery.

b. In addition to the above, provision is also made in respect of dues in respect of which suits are fled. Writing off doubtful debts/advances are made when the un-realisability is established.

17. Provisions, Contingent Liabilities and Contingent Assets

a. 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.

b. Contingent Liabilities are not recognised but are disclosed in the notes.

c. Contingent Assets are neither recognised nor disclosed in the financial statements.

18. Cash Flow statement

Cash Flow Statement has been prepared using the "Indirect Method" as per the Accounting Standard 3 on "Cash Flow Statements"

19. Borrowing cost

a. Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

b. All other borrowing costs are charged to profit and loss account

20. Related party disclosure

Disclosure is made as per the requirements of the Standard and as per the clarifications issued by the Institute of chartered Accountants of India under Item No.9 of Schedule 18 Notes on Accounts.

21. Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of Listing Agreement with Stock Exchanges. The recognition and measurement principle as laid down in the Standard have been followed in the preparation of these results.




Sep 30, 2009

1. Basis of Preparation of Financial Statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting except interest on margin money deposits in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and also in accordance with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956, to the extent applicable.

The financial statements are presented in Indian rupees.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

3. Fixed Assets and Depreciation

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets comprises the purchase price (net of rebates and discounts) and any other directly attributable costs of bringing the assets to working condition for their intended use. Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

Advances paid towards acquisition of Fixed Assets outstanding at each Balance Sheet date and the cost of Fixed Assets not ready for their intended use before such date are disclosed as capital work-in-progress.

Depreciation on Fixed Assets is provided using the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as minimum rates. If the managements estimate of the useful life of a Fixed Asset at the time of acquisition of the Asset or of the remaining useful life on a subsequent review is shorter than envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the managements estimate of the useful life / remaining useful life.

Depreciation is calculated on a pro-rata basis from/upto the date the assets are purchased/ sold. An amount of Rs. 6,96,283 being the depreciation amount on revalued assets in the earlier years has been reduced from Depreciation reserve and revaluation reserve.

4. Investments

Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments".

Current Investments are stated at lower of cost and fair value. Any reduction in the carrying

amount and any reversals of such reductions are charged or credited to the Profit and Loss Account.

The investments in fully owned subsidiaries are carried out at the cost of acquisition as the same are long term investments.

5. Revenue Recognition

Revenue is recognized when it is earned and to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty and VAT recovered is presented as a reduction from gross turnover.

Interest revenue on Fixed Deposits is recognized on cash basis.

6. Inventories

Inventories are valued at the lower of cost and net realizable value. Cost of Inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is arrived at,

a) In case of raw materials and other trading products on weighted average cost method.

b) In case of stores and spares on weighted average cost method.

c) In case of work in process and finished goods, includes material cost, labour, manufacturing overheads. Excise duty in respect of finished goods lying within the factory is excluded in valuation of Inventories.

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

7. Employee Benefits

Short-term employee benefits (benefits which are payable within twelve months after the end of the period in which the employees render service) are measured at cost.

Long-term employee benefits (benefits which are payable after the end of twelve months from the end of the period in which the employees render service) and post employment benefits (benefits which are payable after completion of employment) are measured on a discounted basis by the Projected Unit Credit Method on the basis of annual third party actuarial valuations.

Contributions to Provident Fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense when employees have rendered service entitling them to the contributions.

The gratuity benefit obligations recognized in the Balance Sheet represents the present value of the obligations as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

8. Foreign Currency Transactions

Foreign currency transactions are recorded in the reporting currency at the exchange rates prevailing on the date of the transaction.

Exchange differences arising on the settlement of monetary items on reporting companys monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise

Non-monetary items such as investments are carried at historical cost using the exchange rates on the date of the transaction.

Closing Monetary Foreign Current assets and current liabilities have been re-instated in the reporting currency at the exchange rate prevailing on Balance Sheet date, in accordance with Accounting Standard 11 on "The Effects of changes in Foreign Exchange Rates": The difference arising on these transactions being charged/revenue to Profit and Loss Account.

9. Taxes on Income

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income". Taxes comprise both current and deferred tax. Current tax is measured at the amount expected to be paid/recovered from the revenue authorities, using the applicable tax rates and laws.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences. They are measured using the substantively enacted tax rates and tax regulations.

The carrying amount of deferred tax assets at each balance sheet date is reduced to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which the deferred tax asset can be realized.

Fringe Benefit Tax (FBT) payable under the provisions of Section 115WC of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Fringe Benefits Tax" issued by the ICAI regarded as an additional income tax and considered in determination of profits for the year upto 31st March 2009.

Tax on distributed profits payable in accordance with the provisions of Section 1150 of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the year.

10. Earnings per Share

The Company reports basic and diluted Earnings Per Share (EPS/DEPS) in accordance with Accounting Standard 20 on "Earnings per share". Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares from the exercise of Convertible Share Warrants of un- issued share capital, except where the results are anti-dilutive.

11. Leases

Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired on or after 1 April 2001 are capitalized at the fair value or the present value of minimum lease payments at the inception of the lease, whichever is lower.

Lease income from assets given on operating lease is recognized as income in the statement of Profit & Loss account. Lease payments for assets taken on operating lease are recognized as expense in the statement of Profit & Loss account.

12. Segment Reporting

Disclosure is made as per the requirements of the standard. Details have furnished under item No. 18 of Schedule 18 Notes on Accounts.

13. Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that any assets forming part of its cash generating units may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at the re-assessed recoverable amount subject to a maximum of depreciated historical cost.

14. Provision for Doubtful Debts /Advances

Provision for Doubtful Debts/ Advances are made when there is uncertainty of realization of debts which are long outstanding. All debts which are over and above one year are provided in full unless there is certainty of its recovery.

In addition to the above, provision is also made in respect of dues in respect of which suits are filed. Writing off doubtful debts/advances are made when the un-realisability is established.

15. Provisions and Contingent Liabilities

Contingent liabilities as defined in Accounting Standard (AS) 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the accounts. Provision

is made if it is probable that an outflow of future economic benefits will be required for an Item previously dealt with as a contingent liability

16. Cash flow statement has been prepared under indirect method.

17. Borrowing Cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalised. During the period under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized

18. Related Party Disclosure

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of chartered Accountants of India under Item No.9 of Schedule 18 Notes on Accounts.

19. Consolidated Financial Statements

Consolidated financial statements of the Company and its wholly owned subsidiaries 1) Pac Ventures Pte. Ltd., Singapore, 2) Sujana Holdings Ltd., Dubai, 3) Nuance Holdings, Hong Kong and 4) Sun Trading Limited, Cayman Islands are enclosed.

20. Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of listing agreement with stock exchanges. The recognition and measurement principle as laid down in the standard have been followed in the preparation of these results.

 
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