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Accounting Policies of NRC Ltd. Company

Mar 31, 2015

1. BASIS OF ACCOUNTING

a. The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under historical cost convention (except for certain fixed assets which have been revalued), on the basis of a going concern and in accordance with the applicable accounting standards.

b The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis except those with significant uncertainties interalia, including non-accrual of income on assets where principal / accrued income is fully provided as doubtful.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for the year. Actual results may sometimes differ from these estimates. Any revision to accounting estimates is recognised prospectively.

3. FIXED ASSETS

Fixed Assets are stated at cost less depreciation except Land and Buildings which have been revalued and are stated at revalued cost less depreciation, where applicable. Cost comprises of all expenses incurred upto commissioning/putting the assets to use. In line with the basis followed for assets acquired on ownership, interest and other direct expenses incurred during pre-operative period of the assets obtained under Finance Lease arrangements are capitalised.

4. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such asset is reduced to its recoverable amount and the impairment loss is charged to statement of profit and loss. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

5. DEPRECIATION

Depreciation on tangible fixed assets is provided based on the useful life prescribed under part 'C' of schedule II of the Companies Act, 2013

6. INVESTMENTS

Long Term Investments are stated at cost. Provision other than of temporary nature is made for diminution in the value of investments.

7. VALUATION OF INVENTORIES

Inventories are valued at the lower of the cost and net realisable value. Cost of Inventories is computed on moving weighted average basis. Finished goods and work-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

8. REVENUE RECOGNITION

a. Sale of goods is recognised when the property and all the signifi cant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales includes Excise duty and are net off Discounts/Margins(as considered appropriate by the management) sales tax and damaged and detained stocks .Damaged and Dented stocks are accounted / provided for as when inspected and destroyed.

b. Export sales are accounted for on the basis of the date of Bill of Lading / Mates Receipt

c. Export Benefits Claims are accounted for in the year of Export.

9. TRANSACTION OF FOREIGN CURRENCY ITEMS

a. Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the transaction.

b. Foreign Currency transactions remaining unsettled as on the last day of the financial year are translated at the exchange rate prevailing as on the date of Balance Sheet. The resultant difference, if any, is dealt with in the Profit and Loss Account. Premium in respect of forward exchange contracts is recognised over the life of the contracts.

10. BORROWING COST

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to Statement of Profit and Loss.

11. TAXATON

Current Tax is recognised as per Income Tax Act, 1961.

Timing differences in respect of Accounting Income and Taxable income are recognised as Deferred Tax. Deferred Tax assets are recognised to the extent there is reasonable / virtual certainty that sufficient future, taxable income will be available against which such Deferred Tax assets can be realised.

12. EMPLOYEE BENEFITS

a. Gratuity:

Liability under the payment of Gratuity Act, 1972 is a defined benefi t obligation and is provided for on the basis of the actuarial valuation made at the end of each financial year.

b) Provident Fund:

Retirement benefits in the form of Provident Fund / Pension Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

c) Leave Entitlement:

Liability towards Leave Entitlement Benefit is provided for as at the Balance Sheet date as per the actuarial valuation taken at the end of the year.

Actuarial gains/ losses are immediately taken to statement of profit and loss and are not deferred.

13. PROVISIONS, CONTINGENT ASSETS / LIABILITIES

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Disputed show cause notices /show cause-cum-demand notices are not considered as contingent liabilities. Contingent assets are not recognized or disclosed in the financial statements


Mar 31, 2014

1. BASIS OF ACCOUNTING

a. The fi nancial statements are prepared on historical cost convention (except for certain fi xed assets which have been revalued), on the basis of a going concern and in accordance with the applicable accounting standards.

b The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis except those with signifi cant uncertainties interalia, including non-accrual of income on assets where principal / accrued income is fully provided as doubtful.

2. USE OF ESTIMATES

The preparation of fi nancial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosures of contingent liabilities on the date of fi nancial statements and reported amounts of revenue and expenses for the year. Actual results may sometimes differ from these estimates. Any revision to accounting estimates is recognised prospectively.

3. FIXED ASSETS

Fixed Assets are stated at cost less depreciation except Land and Buildings which have been revalued and are stated at revalued cost less depreciation, where applicable. Cost comprises of all expenses incurred upto commissioning/putting the assets to use. In line with the basis followed for assets acquired on ownership, interest and other direct expenses incurred during pre-operative period of the assets obtained under Finance Lease arrangements are capitalised.

4. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such asset is reduced to its recoverable amount and the impairment loss is charged to statement of profi t and loss. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

5. DEPRECIATION / AMORTISATION

a. Depreciation is calculated at the rates and in the manner specifi ed under Schedule XIV to the Companies Act, 2013 on straight line method except in respect of Laboratory Equipments pertaining to the Rayon Plant (included in Note No-6), Railway Siding and Water Works, Furniture and Vehicles, which has been calculated on written down value method. Continuous process plant as defi ned in Schedule XIV has been taken on technical assessment.

b. In the case of increase on account of revaluation of Buildings, depreciation is computed on the basis of the, residual life as estimated by the valuers.

c. Depreciation on spares purchased subsequently for specifi c machinery and having irregular use is provided prospectively over the residual life of the specifi c machinery.

6. INVESTMENTS

Long Term Investments are stated at cost. Provision other than of temporary nature is made for diminution in the value of investments.

7. VALUATION OF INVENTORIES

Inventories are valued at the lower of the cost and net realisable value. Cost of Inventories is computed on moving weighted average basis. Finished goods and work-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

8. REVENUE RECOGNITION

a. Sale of goods is recognised when the property and all the signifi cant risks and rewards of ownership are transferred to the buyer and no signifi cant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales includes Excise duty and are net off Discounts/Margins(as considered appropriate by the management) sales tax and damaged and detained stocks .Damaged and Dented stocks are accounted / provided for as when inspected and destroyed.

b. Export sales are accounted for on the basis of the date of Bill of Lading / Mates Receipt

c. Export Benefi ts Claims are accounted for in the year of Export.

9. TRANSACTION OF FOREIGN CURRENCY ITEMS

a. Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the transaction.

b. Foreign Currency transactions remaining unsettled as on the last day of the fi nancial year are translated at the exchange rate prevailing as on the date of Balance Sheet. The resultant difference, if any, is dealt with in the Profi t and Loss Account. Premium in respect of forward exchange contracts is recognised over the life of the contracts.

10. BORROWING COST

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to Statement of Profi t and Loss.

11. TAXATON

Current Tax is recognised as per Income Tax Act, 1961.

Timing differences in respect of Accounting Income and Taxable income are recognised as Deferred Tax. Deferred Tax assets are recognised to the extent there is reasonable / virtual certainty that suffi cient future, taxable income will be available against which such Deferred Tax assets can be realised.

12. EMPLOYEE BENEFITS

a) Gratuity:

Liability under the payment of Gratuity Act, 1972 is a defi ned benefi t obligation and is provided for on the basis of the actuarial valuation made at the end of each fi nancial year.

b) Provident Fund:

Retirement benefi ts in the form of Provident Fund / Pension Fund is a defi ned contribution scheme and the contributions are charged to the statement of profi t and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

c) Leave Entitlement:

Liability towards Leave Entitlement Benefi t is provided for as at the Balance Sheet date as per the actuarial valuation taken at the end of the year. Actuarial gains/ losses are immediately taken to statement of profi t and loss and are not deferred.

13. PROVISIONS, CONTINGENT ASSETS / LIABILITIES

A provision is made based on a reliable estimate when it is probable that an outfl ow of resources embodying economic benefi ts will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Disputed show cause notices /show cause-cum-demand notices are not considered as contingent liabilities. Contingent assets are not recognized or disclosed in the fi nancial statements.


Mar 31, 2013

1 BASIS OF ACCOUNTING

a. The fnancial statements are prepared on historical cost convention (except for certain fxed assets which have been revalued), on the basis of a going concern and in accordance with the applicable accounting standards.

b The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis except those with signifcant uncertainties interalia, including non-accrual of income on assets where principal / accrued income is fully provided as doubtful.

2. USE OF ESTIMATES

The preparation of fnancial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosures of contingent liabilities on the date of fnancial statements and reported amounts of revenue and expenses for the year. Actual results may sometimes differ from these estimates. Any revision to accounting estimates is recognised prospectively.

3 FIXED ASSETS

Fixed Assets are stated at cost less depreciation except Land and Buildings which have been revalued and are stated at revalued cost less depreciation, where applicable. Cost comprises of all expenses incurred upto commissioning/putting the assets to use. In line with the basis followed for assets acquired on ownership, interest and other direct expenses incurred during pre-operative period of the assets obtained under Finance Lease arrangements are capitalised.

4. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such asset is reduced to its recoverable amount and the impairment loss is charged to statement of proft and loss. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

5. DEPRECIATION / AMORTISATION

a. Depreciation is calculated at the rates and in the manner specifed under Schedule XIV to the Companies Act, 1956 on straight line method except in respect of Laboratory Equipments pertaining to the Rayon Plant (included in Note No- 6), Railway Siding and Water Works, Furniture and Vehicles, which has been calculated on written down value method. Continuous process plant as defned in Schedule XIV has been taken on technical assessment.

b In the case of increase on account of revaluation of Buildings, depreciation is computed on the basis of the, residual life as estimated by the valuers.

c Depreciation on spares purchased subsequently for specifc machinery and having irregular use is provided prospectively over the residual life of the specifc machinery.

6. INVESTMENTS

Long Term Investments are stated at cost. Provision other than of temporary nature is made for diminution in the value of investments.

7. VALUATION OF INVENTORIES

Inventories are valued at the lower of the cost and net realisable value. Cost of Inventories is computed on moving weighted average basis. Finished goods and work-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

8. REVENUE RECOGNITION

a Sale of goods is recognised when the property and all the signifcant risks and rewards of ownership are transferred to the buyer and no signifcant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales includes Excise duty and are net off Discounts/Margins(as considered appropriate by the management) sales tax and damaged and detained stocks. Damaged and Dented stocks are accounted / provided for as when inspected and destroyed.

b Export sales are accounted for on the basis of the date of Bill of Lading / Mates Receipt.

c Export Benefts Claims are accounted for in the year of Export.

9. TRANSACTION OF FOREIGN CURRENCY ITEMS

a Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the transaction.

b Foreign Currency transactions remaining unsettled as on the last day of the fnancial year are translated at the exchange rate prevailing as on the date of Balance Sheet. The resultant difference, if any, is dealt with in the Proft and Loss Account. Premium in respect of forward exchange contracts is recognised over the life of the contracts.

10. BORROWING COST

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to Statement of Proft and Loss.

11. TAXATON

Current Tax is recognised as per Income Tax Act, 1961.

Timing differences in respect of Accounting Income and Taxable income are recognised as Deferred Tax. Deferred Tax assets are recognised to the extent there is reasonable / virtual certainty that suffcient future, taxable income will be available against which such Deferred Tax assets can be realised.

12. EMPLOYEE BENEFITS

a) Gratuity:

Liability under the payment of Gratuity Act,1972 is a defned beneft obligation and is provided for on the basis of the actuarial valuation made at the end of each fnancial year.

b) Provident Fund:

Retirement benefts in the form of Provident Fund / Pension Fund is a defned contribution scheme and the contributions are charged to the statement of proft and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

c) Leave Entitlement:

Liability towards Leave Entitlement Beneft is provided for as at the Balance Sheet date as per the actuarial valuation taken at the end of the year.

Actuarial gains/ losses are immediately taken to statement of proft and loss and are not deferred.

13. PROVISIONS ,CONTINGENT ASSETS / LIABILITIES

A provision is made based on a reliable estimate when it is probable that an outfow of resources embodying economic benefts will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Disputed show cause notices / show cause-cum-demand notices are not considered as contingent liabilities. Contingent assets are not recognized or disclosed in the fnancial statements.


Mar 31, 2012

1 BASIS OF ACCOUNTING

a The financial statements are prepared on historical cost convention (except for certain fixed assets which have been revalued), on the basis of a going concern and in accordance with the applicable accounting standards.

b The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis except those with significant uncertainties interalia, including non accrual of income on assets where principal / accrued income is fully provided as doubtful.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for the year. Actual results may sometimes differ from these estimates. Any revision to accounting estimates is recognised prospectively.

3 FIXED ASSETS

Fixed Assets are stated at cost less depreciation except Land and Buildings which have been revalued and are stated at revalued cost less depreciation, where applicable. Cost comprises of all expenses incurred upto commissioning/putting the assets to use. In line with the basis followed for assets acquired on ownership, interest and other direct expenses incurred during pre operative period of the assets obtained under Finance Lease arrangements are capitalised.

4. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such asset is reduced to its recoverable amount and the impairment loss is charged to statement of profit and loss. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

5. DEPRECIATION/AMORTISATION

a. Depreciation is calculated at the rates and in the manner specified under Schedule XIV to the Companies Act, 1956 on straight line method except in respect of Laboratory Equipments pertaining to the Rayon Plant (included in Note No 6), Railway Siding and Water Works, Furniture and Vehicles, which has been calculated on written down value method. Continuous process plant as defined in Schedule XIV has been taken on technical assessment.

b In the case of increase on account of revaluation of Buildings, depreciation is computed on the basis of the residual life as estimated by the valuers.

c Depreciation on spares purchased subsequently for specific machinery and having irregular use is provided prospectively over the residual life of the specific machinery.

6. INVESTMENTS

Long Term Investments are stated at cost. Provision other than of temporary nature is made for diminution in the value of investments.

7. VALUATION OF INVENTORIES

Inventories are valued at the lower ofthe cost and estimated net realisable value. Cost of Inventories is computed on moving weighted average basis. Finished goods and work in process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

8. REVENUE RECOGNITION

a Sale of goods is recognised when the property and all the significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales includes Excise duty and are net off Discounts/Margins(as considered appropriate by the management) sales tax and damaged and detained stocks .Damaged and Dented stocks are accounted / provided for as when inspected and destroyed.

b. Export sales are accounted for on the basis ofthe date of Bill of Lading / Mates Receipt

c. Export Benefits Claims are accounted for in the year of Export.

9. TRANSACTION OF FOREIGN CURRENCY ITEMS

a Foreign Currency transactions are recorded at the rate of exchange prevailing on the date ofthe transaction.

b. Foreign Currency transactions remaining unsettled as on the last day ofthe financial year are translated at the exchange rate prevailing as on the date of Balance Sheet. The resultant difference, if any, is dealt with in the Profit and Loss Account. Premium in respect of forward exchange contracts is recognised over the life ofthe contracts.

10. BORROWING COST

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part ofthe cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to statement of profit and loss.

11. TAXATON

Current Tax is recognised as per Income Tax Act, 1961.

Timing differences in respect of Accounting Income and Taxable income are recognised as Deferred Tax. Deferred Tax assets are recognised to the extent there is reasonable / virtual certainty that sufficient future taxable income will be available against which such Deferred Tax assets can be realised.

12. EMPLOYEE BENEFITS

a) Gratuity:

Liability under the payment of Gratuity Act,1972 is a defined benefit obligation and is provided for on the basis ofthe actuarial valuation made at the end of each financial year.

b) Provident Fund:

Retirement benefits in the form of Provident Fund / Pension Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

c) Leave Entitlement:

Liability towards Leave Entitlement Benefit is provided for as at the Balance Sheet date as per the actuarial valuation taken at the end of the year.

Actuarial gains/ losses are immediately taken to statement of profit and loss and are not deferred.

13. PROVISIONS ,CONTINGENT / LIABILITIES

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Disputed show cause notices / show cause cum demand notices are not considered as contingent liabilities. Contingent assets are not recognized or disclosed in the financial statements.

(i) Contingent Liabilities not provided for in respect of (including interest up to the date of Demand/claim):

(a) Claims against the Company not acknowledged as debts (excluding claims where amounts not ascertainable / the cases where the possibility of any outflow on settlement / decision is remote)

(a) The Company has taken various residential /commercial premises under cancellable Operating Leases. The Lease Agreements are usually renewable by mutual consent on mutually agreeable terms.

(b) The rental expense in respect of Operating Leases are charged as rent under Note 23.


Sep 30, 2009

1 BASIS OF ACCOUNTING

a. The financial statements are prepared on historical cost convention (except for certain fixed assets which have been revalued), on the basis of a going concern and in accordance with the applicable accounting standards.

b The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis except those with significant uncertainties interalia, including non-accrual of income on assets where principal / accrued income is fully provided as doubtful.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted account- ing principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for the period. Actual results may sometimes differ from these estimates. Any revision to accounting estimates is recognised prospectively.

3. FIXED ASSETS

Fixed Assets are stated at cost less depreciation except Land and Buildings which have been revalued and are stated at revalued cost less depreciation, wherever applicable. Cost comprises of all expenses incurred upto commissioning/putting the assets to use. In line with the basis followed for assets acquired on ownership, interest and other direct expenses incurred during pre-operative period of the assets obtained under Finance Lease arrangements are capitalised.

4. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such asset is reduced to its recoverable amount and the impairment loss is charged to profit and loss account. If at the Balance Sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

5. DEPRECIATION/AMORTISATION

a. Depreciation is calculated at the rates and in the manner specified under Schedule XIV of the Companies Act, 1956 on straight line method except in respect of Laboratory Equipments pertaining to the Rayon Plant (included in item c of Schedule 5), Railway Siding and Water Works, Furniture and Vehicles, which has been calculated on written down value method. Continuous process plant as defined in Schedule XIV has been taken on technical assessment.

b. In the case of increase on account of revaluation of Buildings, depreciation is computed on the basis of the residual life as estimated by the valuers.

c. Depreciation on spares purchased subsequently for specific machinery and having irregular use is provided prospectively over the residual life of the specific machinery.

6. INVESTMENTS

Long Term Investments are stated at cost. Provision other than of temporary nature is made for diminution in the value of investments.

7. VALUATION OF INVENTORIES

Inventories are valued at the lower of the cost and estimated net realisable value. Cost of Inventories is computed on moving weighted average basis. Finished goods and work in process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

8. REVENUE RECOGNITION

Sale of goods is recognised when the property and all the significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales ! includes Excise duty and are net off Discounts/Margins(as considered appropriate

i by the management) sales tax and damaged and detained stocks .Damaged and Dented stocks are accounted / provided for as when inspected and destroyed.

9. TRANSACTION OF FOREIGN CURRENCY ITEMS

a. Foreign Currency transactions are recorded at the rate of exchange prevailing on the date of the transaction.

b. Foreign Currency transactions remaining unsettled as on the last day of the i financial year are translated at the exchange rate prevailing as on the date of

Balance Sheet. The resultant difference, if any, is dealt with in the Profit and Loss Account. Premium in respect of forward exchange contracts is recognised over the life of the contracts:

10. BORROWING COST

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to profit and loss i account.

11. TAXATON

Current Tax is recognised as per Income Tax Act, 1961.

Timing differences in respect of Accounting Income and Taxable income are recognised as Deferred Tax. Deferred Tax assets are recognised to the extent there is reasonable / virtual certainty that sufficient future taxable income will be available against which such Deferred Tax assets can be realised.

The Provision of Fringe Benefit Tax has been made in respect of employees benefits and other specified expenses as determined under the Income Tax Act, 1961.

12. EMPLOYEE BENEFITS

a) Gratuity:

Liability under the payment of Gratuity Act, 1972 is a defined benefit obligation and is provided for on the basis of the actuarial valuation made at the end of each financial year.

b) Provident Fund:

Retirement benefits in the form of Provident Fund / Pension Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

c) Leave Entitlement:

Liability towards Leave Entitlement Benefit is provided for as at the Balance Sheet date as per the actuarial valuation taken at the end of the year.

Actuarial gains/ losses are immediately taken to Profit and Loss account and are not deferred.

13. PROVISIONS, CONTINGENT / LIABILITIES

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Disputed show cause notices / show cause-cum-demand notices are not considered as contingent liabilities. Contingent assets are not recognized or disclosed in the financial statements.

 
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