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Accounting Policies of PAE Ltd. Company

Mar 31, 2015

A) Basis of preparation:

The financial statements have been prepared to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, 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 the historical cost convention on an accrual basis. The Company has consistently applied the accounting policies which are consistent with those used in the previous year.

The Accounting Policies adopted in the preparation of financial statements are consistent with those of previous year.

b) Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management's evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

c) Tangible Fixed Assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance. All other expenses on exsisting fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

d) Depreciation on tangible fixed assets:

i. Depreciation is computed using the Written Down Value Method("WDV") as per the useful life of the asset as prescribed in part C of Schedule II of the Companies Act, 2013 leaving a residual value of 5% of original cost of the asset.

ii. Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

e) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated useful economic life of the asset.

ii. Computer software forming part of intangible assets is amortised over a period of five years.

f) Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

g) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

h) Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

i) Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognised on receipt basis.

j) Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/ losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

k) Employee Benefits

i. Defined Contribution Plan; The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group's liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

l) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the statement of profit and loss on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

m) Income Taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets / liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

n) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

o) Provisions, Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions:Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience.The estimate of such warranty cost is revised annually.


Mar 31, 2014

A) Basis of preparation:

The financial statements of the company have been prepared in accrodance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies(Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of significant uncertainties.

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

b) Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

c) Tangible fixed assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance.All other expenses on exsisting fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

d) Depreciation on tangible fixed assets:

i. Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

ii. Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

e) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated useful economic life of the asset.

ii. Computer software forming part of intangible assets is amortised over a period of five years.

f) Impairment of assets:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

g) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

h) Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) T raded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

i) Revenue recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognised on receipt basis.

j) Foreign currency transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/ losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

k) Employee benefits

i. Defined Contribution Plan: The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group''s liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

l) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the statement of profit and loss on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

m) Income taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets / liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

n) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

o) Provisions, contingent liabilities and contingent assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions: Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience.The estimate of such warranty cost is revised annually.

(b) Terms/rights attached to equity / preference shares

(i) The company has equity shares having a face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(ii) During the year ended March 31, 2014, the Company issued 50,00,000 (fifty lacs) 11% Non-convertible, cumulative, redeemable preference shares(NCRPS) of Rs. 10/- each fully paid up. The NCRPS holder shall have a right to vote on resolution placed before the company which directly affect the rights attached to his preference share only, and any resolution for the winding up of the company or repayment or reduction of its equity or preference share capital, provided that where the dividend is not paid for two or more years such class of NCRPS holders shall have right to vote on all resolutions placed before the company. The NCRPS shall be redeemed by the company at par on expiry of 13 years from the date of allotment, or on the request of NCRPS holders, which ever is earlier. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(a) During the year Rs. 40 lacs (previous year nil) was taken as loan against refinance of existing motor vehicles owned by the company from Kotak Mahindra Prime Ltd. This loan carries an interest of 18.08% p.a. and is payable in 24 installments alongwith interest from the date of the loan. The period of maturity w.r.t. balance sheet date is 1 year and 7 month with EMI of Rs. 2.80 lacs for 3 months, with EMI of Rs. 1.88 lacs for 8 months and with EMI of Rs. 1.08 lacs for 8 months respectively.

(b) Fixed deposits from related parties carry interest @ 11% to 11.75% p.a.(previous year 11% to 11.75% p.a.) and are repayable after 3 years from the respective dates of deposit.

(c) Fixed deposits from shareholders and others carry interest ranging from 11% to 11.75% p.a. (previous year 11% to 11.75% p.a.) and are repayable after 2 years and 3 years from the respective dates of deposit.

(d) Unsecured loan from related party having a tenure of 3 years was an interest bearing loan carrying interest @14% and 16.50% p.a. till 31.12.2013. The loan has been converted into interest free loan w.e.f. 01.01.2014.

(a) Margin money deposits with maturity of less than/upto three months is against letter of credit and bank guarantees.

(b) Margin money deposits with maturity more than three months and upto 12 months is against bank guarantees.

(c) Deposits with maturity of more than three months and upto 12 months of Nil (previous year Rs. 54 Lacs) is kept as collateral against cash credit limits with banks.


Mar 31, 2013

A) Basis of preparation:

The financial statements of the company have been prepared in accrodance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of significant uncertainties.

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

b) Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

c) Tangible Fixed Assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance.All other expenses on exsisting fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

d) Depreciation on tangible fixed assets:

i. Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

ii. Depreciation on value written up on revaluation of buildings and ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

e) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated useful economic life of the asset. ii. Computer software forming part of intangible assets is amortised over a period of five years.

f) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

g) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

h) Inventories:

Inventories are valued after providing for obsolescence, if any, as under:- a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

i) Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognised on receipt basis.

j) Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/ losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

k) Employee Benefits

i. Defined Contribution Plan:The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group''s liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

l) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the statement of profit and loss on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

m) Income Taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets / liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

n) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

o) Provisions, Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent assets are neither recognized nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions:Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience.The estimate of such warranty cost is revised annually.


Mar 31, 2012

A) Basis of preparation:

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies(Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of significant uncertainties.

The Accounting Policies adopted in the preparation of Financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

b) Presentation and disclosure of financial statements:

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. It has significant impact on presentation and disclosures made in the financial statements. The company has reclassified the previous year figures in accordance with the requirement applicable in the current year.

c) Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management's evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

d) Tangible fixed assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

e) Depreciation on tangible fixed assets:

i. Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

ii. Depreciation on value written up on revaluation of "Buildings and Ownership flats" has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

f) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated use full economic life of the asset.

ii. Computer software forming part of intangible assets is amortised over a period of five years.

g) Impairment of assets:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

h) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (incase of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

i) Inventories:

Inventories are valued after providing for obsolescence, if any, asunder:

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in transit are valued at cost,

j) Revenue recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognized on receipt basis.

k) Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

I) Employee benefits:

i. Defined Contribution Plan: The Group makes defined contribution to provident fund, ESI and superannuation schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group's liabilities towards gratuity and long term benefit in the form of leave encashment are recongnized on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

m) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the profit and loss account on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

n) Income taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets I liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

o) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Provisions, contingent liabilities and contingent assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent assets are neither recognized nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions: Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience. The estimate of such warranty cost is revised annually.


Mar 31, 2011

1. Basis of Accounting:

a) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

b) Financial statements are based on historical costs and are prepared in accordance with the requirements of the Companies Act, 1956 and the applicable Accounting Standards as prescribed by Companies (Accounting Standards) Rules 2006 (as amended).

2. Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

3. Fixed Assets and Depreciation/Amortisation:

a) Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use.

b) Computer Software forming part of Intangible assets is amortized over a period of five years.

c) Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

d) Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to Profit and Loss Account.

4. Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

5. Investments:

Investments are classified as long-term and current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

6. Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

7. Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts Sales Tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements.

8. Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the profit and loss account over the period of the contract.

9. Employee Benefits:

a) Defined Contribution Plan: The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the Profit and Loss Accountas they are incurred.

b) Defined Benefit Plan and long term benefits: Groups liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the Profit and Loss Account.

10. Leases:

Lease payments under operating lease are recognized as an expense in the Profit and Loss Account on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

11. Taxation:

Provision for Current tax and Wealth Tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each balance sheet date.

12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.


Mar 31, 2010

1. Basis of Accounting:

a) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

b) Financial statements are based on historical costs and are prepared in accordance with the requirements of the Companies Act, 1956 and the applicable Accounting Standards as prescribed by Companies (Accounting Standards) Rules 2006 (as amended).

2. Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of statements. The actual results may differfrom these estimates.

3. Fixed Assets and Depreciation/Amortisation:

a) Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use.

b) Computer Software forming part of Intangible assets is amortized overa period of five years.

c) Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

d) Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to Profit and Loss Account.

4. Impairment of Assests:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

5. Investments:

Investments are classified as long-term and current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost orfair value whichever is lower.

6. Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of Fl FO method.

b) GoodsinTransitarevaluedatcost.

7. Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, Sales Tax/VATand returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements.

8. Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/Losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the profit and loss account over the period of the contract.

9. Employee Benefits:

a) Defined Contribution Plan: The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the Profit and LossAccountas they areincurred.

b) Defined Benefit Plan and long term benefits: Groups liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the Profit and LossAccount.

10. Leases:

Lease payments under operating lease are recognized as an expense in the Profit and LossAccount on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis overthe lease term.

11. Taxation:

Provision for Current Tax and Wealth Tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each balance sheet date.

12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

 
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