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Accounting Policies of Rai Saheb Rekhchand Mohota Spg. & Wvg. Mills Ltd. Company

Mar 31, 2015

A) BASIS OF PREPARATION

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 relevant provisions of the Companies Act,2013 and other accounting pronouncements of the Institute of Chartered Accountants of India. The financial statements have been prepared under historical cost convention and on accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year except for change in the accounting policy for depreciation as mentioned in Note 36.

b) RECOGNITION OF REVENUE EXPENDITURE

i) Revenues/Income and Costs/Expenditure are generally accounted on accrual, as the are earned or incurred.

ii) Sale of Goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch or goods. Sales are recognised net of sales tax, discount, rebates and excise duty (on goods manufactured).

iii) "Export incentives Under the " "Duty Entitlement Pass Book Scheme", "Duty Draw back Scheme", etc. is accounted in the year of export on accrual basis.

iv) Dividend income on investments is recognized when the right to receive dividend is established.

c) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

d) FIXED ASSETS Tangible Assets

Tangible Assets are stated of acquisition cost, net of accumulated depreciation and accumulated impairment losses if any.

Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of tangible assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realizable value and are shown separately in the financial statements. Any expected loss is recognized immediately in the Statement of Profit and Loss.

Losses arising from the retirement of and gains or losses arising from disposal of tangible assets which are carried at cost are recognized in the Statement of Profit and Loss Intangible Assets

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortised on a straight line basis between 3-5 years.

e) DEPRECIATION

i) Depreciation on Factory Building, Non-Factory Building, Plant & Machinery, Furniture & Fixture, Office Equipments, Vehicles, Computers & Electrical Installation is provided on a Straight Line Method.

ii) Effective 1st April 2014, the Company depreciateds its fixed assets over the useful life in the manner prescribed in Schedule II or the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

iii) No depreciation is provided on Land

iv) Depreciation on additions to assets or on sale/discardment of assets, is calculated pro rata from the month of such addition or upto the month of such sale/discardment, as the case may be.

v) During the current year, the Company has revised its accounting policy in respect of depreciation method of its fixed assets where depreciation was provided in the previous years under the 'written down value method'. Based on an evaluation carried out by the management in the current year, fixed assets are now being depreciated on 'straight line method' over the expected useful life of the fixed assets as against written down value method. This change in accounting policy has been made as it would result in a more appropriate presentation of the financial statements. As a result of this change, depreciation has been calculated retrospectively on straight line method and accordingly the Company has recorded reversal of depreciation expense amounting to Rs. 5,72,81,347/- pertaining to previous years in the current year's Statement of Profit & Loss.

vi) Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets (determined after considering the change in the method of depreciation from WDV to SLM), after retaining the residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of Rs.2,78,76,584/- (Net of Deferred Tax) against the opening balance of General Reserves.

vii) The depreciation expense in the Statement of Profit & Loss for the year is higher by Rs. 2,48,52,146/- consequent to the above change in the method of Depreciation and higher by Rs. 6,37,43,455/- due to change in estimates.

f) INVENTORIES

Inventories of Raw Materials, Work-in-Process, Stores and spares, Finished Goods and Stock-in-Trade are are valued at cost or net realisable value, whichever is lower. Cost of inventories are determined by using weighted average basis. Finished goods and work in progress include all costs of purchases, conversion costs and other costs incurred in bringing the inventories to their present location and condition.

g) INVESTMENTS

Current investments, if any, are carried at the lower of costs and quoted / fair value, computed category wise. Long term investments are carried at costs. Provision for diminution in the value of long term investments is made only if such decline is not temporary in the opinion of the management. For the purpose of arriving at profit/loss on sale of investment, the cost is determined on average basis..

h) BORROWING COST

Borrowing cost directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the assets up to the date the assets is put to use. Other borrowing cost are charged to the Statement of Profit and Loss in the year in which they are incurred.

i) RETIREMENT BENEFITS Defined Contribution Plan

Contribution to defined contribution schemes such as employee's state insurance, labour welfare fund, superannuation scheme, employee pension scheme etc. are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. Company's provident fund contribution in respect of employees is made to government administrated fund and charged as expenses to the statement of Profit & Loss. The above benefits are classified as Defined Contribution Schemes as the company has no further defined obligations beyond the monthly contributions.

Defined benefit Plans

The company also provides for retirement/post-retirement benefits in the form of gratuity and compensated absences. The company's liability towards such defined benefits plans is determined based on valuation as at Balance Sheet date, made by independent actuaries using project unit credit method. Actuarial gains and losses in respect of the Statement of Profit & Loss in the year in which they are arise. The classification of the company's net obligation into current and non-current is as per the actuarial valuation report.

j) EXCISE DUTY

The company accounts for excise duty on manufactured goods at the time of their clearance from the bonded premises.

k) FOREIGN CURRENCY TRANSACTIONS

All foreign currency transactions have been accounted at the rate prevailing on the date of transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the Statement of Profit & Loss.

l) TAXES ON INCOME

Income Taxes are accounted for in accordance with Accounting Standard 22 "Accounting for Taxes on Income. Income Tax comprises both current and deferred tax. Current tax in measured on the basis of estimated income and tax credits computed in accordance with the provisions of the Income Tax Act,1961. Deferred Tax is recognised on timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

m) POLICY FOR GOVERNMENT GRANTS

The company is entitled to various incentives from Government of Maharashtra under PSI 2007 for Mega Projects for its Burkoni Unit. The company accounts for its entitlement on accrual basis.

n) CASH & CASH EQUIVALENTS

In the cash flow statement, cash and cash equivalents include cash in hand, term deposits with bank and other short-term highly liquid investments with original maturities of three months or less.

o) SEGMENT REPORTING

The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

p) EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

q) LEASE ACCOUNTING

Leasing of assets whereby the lessor essentially remains the owner of the asset is classified as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on Straight Line basis. Any compensation, according to agreement, that the lessee is obliged to pay to the lessor if the leasing contract is terminated prematurely is expensed during the period in which the contract is terminated.


Mar 31, 2013

A) SYSTEM OF ACCOUNTING

Financial Statements are based on historical cost. The company generally follows the mercantile system of accounting and recognizes items of income and expenditure on accrual basis, amount and non-inclusion of provided excise duty on finished goods lying in bonded warehouse.

b) FIXED ASSETS

i) Fixed assets are stated at cost, unless stated otherwise. Cost comprises the purchase price

and other attributable expenses. ii) Revaluation: The net increase in the value of the assets is credited to the revaluation reserve.

c) DEPRECIATION :

Depreciation is charged in the account on the following basis:

i) In Hinganghat Unit Depreciation is provided on all fixed assets under the written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956.

Depreciation on addition to fixed assets during the year is charged on pro-rata basis with reference to the date of addition.

ii) In Burkoni Unit depreciation is provided on all assets under SLM method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956 for single shift working.

iii) Intangible assets are amortized over a period of 10 years.

d) INVENTORIES:

Inventories are valued at cost on weighted average basis.

e) INVESTMENTS:

Investments are stated at cost diminution in the value of which is permanent in nature has been Provided.

f) BORROWING COST:

Borrowing cost directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the assets up to the date the assets is put to use. Other borrowing cost are charged to the Profit and Loss Account in the year in which they are incurred.

g) SALES:

Sales are inclusive of sales tax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is Considered as stock in hand.

h) RETIREMENT BENEFIT:

The Company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognized by Income tax authorities and the company''s contributions are charged against revenue every year.

i) EXCISE DUTY:

The company accounts for excise duty on manufactured goods at the time of their clearance from the bonded premises.

j) FOREIGN CURRENCY TRANSACTIONS:

All foreign currency transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realized till date have been taken at the rates actually realized. The loss or gain due to fluctuations of exchange rates is charged to the Profit & Loss Account.

k) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

I) POLICY FOR GOVERNMENT GRANTS

The company is entitled to various incentive from Government of Maharashtra under PSI 2007 for Mega Projects for its Burkoni Unit. The company accounts for its entitlement as capital income on accrual basis.


Mar 31, 2012

A) SYSTEM OF ACCOUNTING

Financial Statements are based on historical cost. The company generally follows the mercantile system of accounting and recognizes items of income and expenditure on accrual basis except for non-provision of leave with pay amount and non-inclusion of excise duty on finished goods lying in bonded warehouse.

b) FIXED ASSETS

i) Fixed assets are stated at cost, unless stated otherwise. Cost comprises the purchase price and other attributable expenses.

ii) Revaluation: The net increase in the value of the assets is credited to the revaluation reserve.

c) DEPRECIATION:

Depreciation is charged in the account on the following basis:

i) In Hinganghat Unit Depreciation is provided on all fixed assets under the written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956. Depreciation on addition to fixed assets during the year is charged on pro-rata basis with reference to the date of addition.

ii) In Burkoni Unit depreciation is provided on all assets under SLM method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956 for single shift working.

iii) Intangible assets are amortized overa period of 10 years.

d) INVENTORIES:

Inventories are valued at cost on weighted average basis.

e) INVESTMENTS:

Investments are stated at cost diminution in the value of which is permanent in nature has been provided.

f) BORROWING COST:

Borrowing cost directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the assets up to the date the assets is put to use. Other borrowing cost are charged to the Profit and Loss Account in the year in which they are incurred.

g) SALES:

Sales are inclusive of sales tax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is considered as stock in hand.

h) RETIREMENT BENEFIT:

The Company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognized by Income tax authorities and the company's contributions are charged against revenue every year.

i) EXCISE DUTY:

The company accounts for excise duty on manufactured goods at the time of their clearance from the bonded premises.

j) FOREIGN CURRENCYTRANSACTIONS:

All Foreign Currency Transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realized till date have been taken at the rates actually realized. The loss or gain due to fluctuations of exchange rates is charged to the Profit & Loss Account.

k) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2011

A) SYSTEM OF ACCOUNTING

Financial Statements are based on historical cost. The company generally follows the mercantile system of accounting and recognizes items of income and expenditure on accrual basis except for non- provision of leave with pay amount and non-inclusion of excise duty on finished goods lying in bonded warehouse.

b) FIXED ASSETS

i) Fixed assets are stated at cost, unless stated otherwise cost comprises the purchase price and other attributable expenses.

ii) Revaluation: The net increase in the value of the assets is credited to the revaluation reserve.

c) DEPRECIATION:

Depreciation is charged in the account on the following basis:

i) In Hinganghat Unit Depreciation is provided on all fixed assets under the written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956. Depreciation on addition to fixed assets during the year is charged on pro-rata basis with reference to the date of addition.

ii) In Burkoni Unit depreciation is provided on all assets under SLM method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956 for single shift working.

iii) Intangible assets are amortized over a period of 10 years.

d) INVENTORIES:

Inventories are valued at cost on weighted average basis.

e) INVESTMENTS:

Investments are stated at cost diminution in the value of which is permanent in nature has been provided.

f) BORROWING COST:

Borrowing cost directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the assets up to the date the assets is put to use. Other borrowing cost are charged to the Profit and Loss Account in the year in which they are incurred.

g) SALES:

Sales are inclusive of sales tax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is considered as stock in hand.

h) RETIREMENT BENEFIT:

The Company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognized by Income tax authorities and the company's contributions are charged against revenue every year.

i) EXCISE DUTY:

The company accounts for excise duty on manufactured goods at the time of their clearance from the bonded premises.

j) FOREIGN CURRENCY TRANSACTIONS:

All Foreign Currency Transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realized till date have been taken at the rates actually realized. The loss or gain due to fluctuations of exchange rates is charged to the Profit & Loss Account.

k) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2010

A) SYSTEM OF ACCOUNTING

Financial Statements are based on historical cost. The company generally follows the mercantile system of accounting and recognizes items of income and expenditure on accrual basis except for non-provision of leave with pay amount and non-inclusion of excise duty on finished goods lying in bonded warehouse.

b) FIXED ASSETS

i) Fixed assets are stated at cost, unless stated otherwise cost comprises the purchase price and other attributable expenses.

ii) Revaluation: The net increase in the value of the assets is credited to the revaluation reserve.

c) DEPRECIATION

Depreciation is charged in the account on the following basis:

i) In Hinganghat Unit Depreciation is provided on all fixed assets underthe written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956. Depreciation on addition to fixed assets during the year is charged on pro-rata basis with reference to the date of addition.

ii) In Burkoni Unit depreciation is provided on all assets under SLM method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956 for single shift working.

iii) Intangible assets are amortized over a period of 10 years.

d) INVENTORIES

Inventories are valued at cost on weighted average basis.

e) INVESTMENTS

Investments are stated at cost without considering the diminution in the value of investment.

f) BORROWING COST

Borrowing cost directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the assets up to the date the assets is put to use. Other borrowing cost are charged to the Profit and Loss Account in the year in which they are incurred.

g) SALES

Sales are inclusive of excise duty, sales tax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is considered as stock in hand.

h) RETIREMENT BENEFIT:

The Company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognized by Income tax authorities and the companys contributions are charged against revenue every year.

i) EXCISE DUTY:

The company accounts for excise duty on manufactured goods at the time of their clearance from the Bonded premises.

j) FOREIGN CURRENCYTRANSACTIONS:

All Foreign Currency Transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realized till date have been taken at the rates actually realized. The loss or gain due to fluctuations of exchange rates is charged to the Profit & Loss Account.

k) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2004

A. SYSTEM OF ACCOUNTING

Financial Statements are based on historical cost. The company generally follows the mercantile system of accounting and recognises items of income and expenditure on accrual basis except for Non-provision of leave with pay amount and non-inclusion of excise duty on finished goods lying in bonded warehouse.

b. FIXED ASSETS

i) All Fixed Assets are stated at cost of acquisition less accumulated depreciation except some items of plants & machinery which were revalued on 3rd May, 1994 & stated at carrying values based on such valuation.

ii) Work in progress includes the advances paid amounting to Rs. 83,07,857/-

c. DEPRECIATION

Depreciation is charged in the account on the following basis:

i) Depreciation is provided on all fixed assets under the written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956. Depreciation on addition to fixed assets during the year is charged on pro-rata basis with reference to the date of addition.

ii) Intangible assets are amortised over a period of 10 years.

d. INVENTORIES

Inventories are valued at cost.

e. INVESTMENTS

Investments are stated at cost.

f. BORROWING COST

Borrowing cost directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the assets upto the date the asset is put to use. Other borrowing cost are charged to the Profit and Loss Account in the year in which they are incurred.

g. SALES

Sales are inclusive of excise duty, sales tax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is considered as stock in hand.

h. RETIREMENT BENEFIT

The company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognised by Income Tax authorities and the companys contributions are charged against revenue every year.

i. EXCISE DUTY

The company accounts for excise duty on manufactured goods at the time of their clearance from the Bonded Premises.

j. FOREIGN CURRENCY TRANSACTIONS

All Foreign Currency Transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realised till date have been taken at the rates actually realised. The loss or gain due to fluctuations of exchange rates is charged to Profit and Loss Account. FCNR- B demand loan from Banks have been stated at the rate prevailing on the date of transaction.

k. TAXES ON INCOME

Current fax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2003

A. SYSTEM OF ACCOUNTING

Financial Statements are based on historical cost. The company generally follows the mercantile system of accounting and recognises items of income and expenditure on accrual basis except for non-provision of gratuity premium payable to group gratuity fund administered by LIC, Non-provision of leave with pay amount and non-inclusion of excise duty on finished goods lying in bonded warehouse.

b. FIXED ASSETS

i) All Fixed Assets are stated at cost of acquisition less accumulated depreciation except some items of plants & machinery which were revalued on 3rd May, 1994 & stated at such amount.

ii) Work in progress includes the advances paid amounting to Rs. 55,000/-

c. DEPRECIATION

Depreciation is charged in the account on the following basis:

i) Depreciation is provided on all fixed assets under the written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956. Depreciation on addition to fixed assets during the year is charged on pro-rata basis with reference to the date of addition.

ii) Intangible assets is amortised over a period of 10 years.

d. INVENTORIES

Inventories are valued at cost.

e. INVESTMENTS Investments are stated at cost.

f. BORROWING COST

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalised as part of the assets upto the date the assets is put to use. Other borrowing cost are charged to the Profit and Loss Account in the year in which the same is incurred.

g. SALES

Sales are inclusive of excise duty, sales tax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is considered as stock in hand.

h. RETIREMENT BENEFIT

The company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognised by Income Tax authorities and the companys contributions are charged against revenue every year except for nil contribution to Group gratuity fund adminstered by LIC since last 3 years.

i. EXCISE DUTY

The company accounts for excise duty on manufactured goods at the time of their clearance from the Bonded Premises.

j. FOREIGN CURRENCY TRANSACTIONS

All Foreign Currency Transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realised till date have been taken at the rates actually realised. The loss or gain due to fluctuations of exchange rates is charged to Profit and Loss Account. FCNR- B demand loan from Banks have been stated at the rate prevailing on the date of transaction.

k. TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2002

A. SYSTEM OF ACCOUNTING

Financial Statements are based on historical cost. The company generally follows the mercantile system of accounting and recognises items of income and expenditure on accrual basis except for non-provision of gratuity premium payable to group gratuity fund administered by LIC and non-inclusion of excise duty on finished goods lying in bonded warehouse.

b. FIXED ASSETS

I) All Fixed Assets are stated at cost of acquisition less accumulated depreciation except some items of plants & machinery which were revalued on 3rd May, 1994 & stated at such amount.

II) Work in progress includes the advances paid amounting to Rs. 1,60,864/-

c. DEPRECIATION

Depreciation is charged in the account on the following basis:

Depreciation has been provided on written down value basis in respect of assets acquired prior to 31 st March, 1992. On assets acquired on or after 1 st April 1992, depreciation has been charged on straight line method (SLM) except plant & machniery, Non-Factory Building and Furniture and Fixtures, on which it is charged on WDV method applying the rates of Schedule XIV of the Companys Act, 1956.

d. INVENTORIES

Inventories are valued at cost on weighted average basis.

e. INVESTMENTS

Investments are stated at cost without considering the diminution in the value of investment.

f. BORROWING COST

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalised as part of the assets upto the date the assets is put to use. Other borrowing cost are charged to the Profit and Loss Account in the year in which the same incurred. However, there are no assets acquired during the year out of borrowed money.

g. SALES

Sales are inclusive of excise duty, sales tax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is considered as stock in hand.

h. RETIREMENT BENEFIT

The company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognised by Income Tax authorities and the

companys contributions are charged against revenue every year except for nil contribution to Group gratuity fund adminstered by LIC since last 2 years.

Liability on account of encashment of leave entitlement of employees is actuarially determined and provided for.

I. EXCISE DUTY

The company accounts for excise duty on manufactured goods at the time of their clearance from the Bonded Premises.

j. FOREIGN CURRENCY TRANSACTIONS

All Foreign Currency Transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realised till date have been taken at the rates actually realised. The loss or gain due to fluctuations of exchange rates is charged to Profit and Loss Account.

k. TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2000

I. SALES

Sales ore inclusive of excise duty, sales fax and processing charges and are net of discount. Consignment sales are accounted for on the receipt of statement of sales from the consignee, till such time it is considered as stock in hand.

ii. RETIREMENT BENEFIT

The company has various schemes of Retirement benefits such as Provident Fund, Gratuity Fund etc. duly recognised by Income Tax authorities and the companys contributions are charged against revenue every year.

Company is accounting encashment of leave benefit on retirement of staff on cash basis. Provision for accruing liability is calculated on actual working basis and is considered in this account.

The gratuity fund benefits are administered by a trust formed for this purpose through the Group Gratuity Schemes of the Life Insurance Corporation of India.

iii. FIXED ASSETS

a) All Fixed Assets are stated at cost of acquisition less accumulated depreciation except some items of plants & machinery which were revalued on 3rd May, 1994 & stated at such amount.

b) Work in progress includes the advances paid amounting to Rs. 5,96,679/-.

iv. DEPRECIATION

Depreciation is charged in the account on the following basis:

Depreciation has been provided on written down value basis in respect of assets acquired prior to 31st March, 1992. On assets acquired on or after 1st April 1992, depreciation has been charged on straight line method (SLM) except plant & machniery on which it is charged on WDV method applying the rates of Schedule XIV of the Companys Act, 1956.

v. INVENTORIES

Inventories are valued at cost on weighted average basis.

vi. INVESTMENTS

Investments are stated at cost.

vii. EXCISE DUTY

The company accounts for excise duty on manufactured goods at the time of their clearance from the Bonded Premises.

viii. ISSUE EXPENSES

Amortisation of Issue Expenses have been adjusted against share premium account.

ix. FOREIGN CURRENCY TRANSACTIONS:

All Foreign Currency Transactions have been accounted at the rate prevailing on the date of transaction. Receivables in foreign currency realised till date have been taken at the rates actually realised. The loss or gain due to fluctuations of exchange rates is charged to Profit and Loss Account.

 
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