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Accounting Policies of RDB Rasayans Ltd. Company

Mar 31, 2015

1.1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 2013 and in compliance with Companies (Accounts) Rules, 2014 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognized in the period in which they are known or materialized.

1.3 Revenue recognition

a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognized in the accounts on receipt basis due to significant uncertainty regarding their realizations.

1.4 Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated depreciation.

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for their intended use at the reporting date.

1.5 Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule II of the Companies Act, 2013. No depreciation has been provided on Leasehold lands.

1.6 Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.7 Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realizable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other expenditure directly attributable to the purchases.

b) Work-in-progress are valued at cost computed on the basis of cost of raw material, appropriated share of employment cost and related factory overheads.

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing method or net realizable value inclusive of Excise duty.

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage is valued at estimated realizable value.

1.8 Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost of transportation, if any, net of sales return.

1.9 Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

1.10 Value Added Tax and Central Sales Tax

VAT, CST and other local taxes on sales are charged to the Statement of Profit and Loss.

1.11 Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 Claims / Refunds

Claims or refunds are accounted for on the basis of settlement.

1.13 Export benefits

Excise duty on goods cleared for exports from factory are claimed as refund.

1.14 Employees benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Provident fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014. Actuarial gains / losses, if any, are immediately recognized in the Statement of Profit and Loss.

1.15 Taxes on income

a) Current tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognized subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred Tax Asset is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

1.16 Provision / Contingencies

A provision is recognized for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialized.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

1.17 Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

1.18 Share issue expenses

Such expenditures incurred are capitalized and written off on straight line basis over a period of five years.


Mar 31, 2014

1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 1956 and in compliance with Companies (Accounting Standard) Rules, 2006 as notified u/s 211(3C) of Companies Act, 1956 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted

2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognized in the period in which they are known or

3. Revenue recognition

a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognized in the accounts on receipt basis due to significant uncertainty regarding their realizations.

4. Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for

5. Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. No

6. Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

7. Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realizable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other

b) Work-in-progress are valued at cost computed on the basis of cost of raw material,

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage is valued at estimated realizable value.

8. Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost

9. Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

10. Value Added Tax and Central Sales Tax

VAT and CST paid are charged to the Statement of Profit and Loss.

11. Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation

12. Claims/Refunds

Claims or refunds are accounted for on the basis of settlement.

13. Export benefits

Export duty on goods cleared Excise duty on goods cleared for exports from factory are claimed as refund.

14. Employee benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Employees State Insurance Corporation, Provident fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956. Actuarial gains / losses, if any, are immediately

15. Taxes on Income

a) Current Tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognized subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred Tax Asset is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

16. Provision / Contingencies

A provision is recognized for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialized.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

17. Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

18. Share issue expenses

Such expenditures incurred are capitalized and written off on straight line basis over a period of five years.


Mar 31, 2013

1.1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 1956 and in compliance with Companies (Accounting Standard) Rules, 2006 as notified u/s 211(3C) of Companies Act, 1956 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognized in the period in which they are known or materialized.

1.3 Revenue recognition

a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognized in the accounts on receipt basis due to significant uncertainty regarding their realizations.

1.4 Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated depreciation.

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for their intended use at the reporting date.

1.5 Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. No depreciation has been provided on Leasehold lands.

1.6 Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.7 Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realizable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other expenditure directly attributable to the purchases.

b) Work-in-progress are valued at cost computed on the basis of cost of raw material, appropriated share of employment cost and related factory overheads.

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing method or net realizable value inclusive of Excise duty.

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage is valued at estimated realizable value.

1.8 Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost of transportation, if any, net of sales return.

1.9 Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

1.10 Value Added Tax and Central Sales Tax

VAT and CST paid are charged to the Statement of Profit and Loss.

1.11 Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 Claims / Refunds

Claims or refunds are accounted for on the basis of settlement.

1.13 Export benefits

Excise duty on goods cleared for exports from factory are claimed as refund.

1.14 Employees benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered. ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Employees State Insurance Corporation, Provident fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956. Actuarial gains / losses, if any, are immediately recognized in the Statement of Profit and Loss.

1.15 Taxes on income

a) Current tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognized subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. Deferred Tax Asset is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

1.16 Provision / Contingencies

A provision is recognized for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialized.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

1.17 Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

1.18 Share issue expenses

Such expenditures incurred are capitalized and written off on straight line basis over a period of five years.


Mar 31, 2012

1.1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 1956 and in compliance with Companies (Accounting Standard) Rules, 2006 as notified u/s 211(3C) of Companies Act, 1956 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognised in the period in which they are known or materialised.

1.3 Revenue recognition

a) Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognised in the accounts on receipt basis due to significant uncertainty regarding their realisations.

1.4 Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated depreciation.

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for their intended use at the reporting date.

1.5 Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. No depreciation has been provided on Leasehold lands.

1.6 Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.7 Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realisable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other expenditure directly attributable to the purchases.

b) Work-in-progress are valued at cost computed on the basis of cost of raw material, appropriated share of employment cost and related factory overheads.

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing method or net realisable value inclusive of Excise duty.

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realisable value.

e) Wastage is valued at estimated realisable value.

1.8 Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost of transportation, if any, net of sales return.

1.9 Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

1.10 Value Added Tax and Central Sales Tax

VAT and CST paid are charged to the Statement of Profit and Loss.

1.11 Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.

1.12 Claims / Refunds

Claims or refunds are accounted for on the basis of settlement.

1.13 Export benefits

Excise duty on goods cleared for exports from factory are claimed as refund.

1.14 Employees benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognised as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Employees State Insurance Corporation, Provident Fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956. Actuarial gains/ losses, if any, are immediately recognised in the Statement of Profit and Loss.

1.15 Taxes on income

a) Current tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognised subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred Tax Asset is recognised and carried forward only to the extent that there is reasonable certainty that the asset will be realised in future.

1.16 Provision / Contingencies

A provision is recognised for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialised.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

1.17 Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

1.18 Share issue expenses

Such expenditures incurred are capitalised and written off on straight line basis over a period of five years.


Mar 31, 2011

A.FINANCIAL STATEMENTS

The financial statements are prepared as a going concern under historical cost conventional accrual basis except those with significant uncertainty and in accordance with the Companies Act,9956.Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

B USE OF ESTIMATSS

The preparation of financial statements in conformity with Indian GAAP requires management of make estimates and assumptions that affect the balances of assets and inabilities and disclosure relating to contingent liabilities as at the reporting date of the financial statement and amounts of income an expensed during the year of accounts. Examples of such estimates include contract costs expected to bi incurred complete construction contracts; provision for doubtful debts, income taxes and future obligation undue employee retirement benefit plans. Management periodically assesses whether their is an indication Thaana asset may be impaired and makes provision in the accounts for any impairment losses estimated. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated Actual results could differ from those estimates. The effects of adjustment arising from revisions meat to the estimate are included in the Profit and Loss statement of the year in which revisions are made.

C REVENUE RECOGNITION

a) Revenue from Sale of Goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory

b) All other Income are accounted for an accrual basis except otherwise stated.

D. FIXED ASSETS

a) Leasehold Land is stated at cost.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred duties and taxes (net of CENVAT/ VAT) and incidental expenses less accumulated depreciation.

E. DEPRECIATION

Depreciation on fixed assets except leasehold land has been provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956 No depreciation has been navies on Lease Hold Land. P provided on

F.INVESTMENTS

Investments are stated at cost.

G. INVENTORIES

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realize value. cost comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the from the taxing authorities), freight inwards and other expenditure directly attributable to the acquisition.

b) Work Progress ii valued at cost computed on the basis of cost of raw mat and a share of employment cost and related factory overheads appropriated

c) Finished Goods valued at cost determined on abortion cost method or net realizable value whichever is lower.

d) Packing & Printing Materials and Stores & Spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage as valued at estimated realizable value

H. EXICSE DUTY

Excise duty has been accounted on the basis of payments made in respect of goods cleared and also provision on excise duty on finished goods lying as stock in factory has been considered for valuation.

FOREIGN CURRENCY TRANSACTION

foreign currency transaction are recorded in the reporting currency applying to foreign currency amount toe exchange rate between the reporting currency and the foreign currency tt thud data of transaction Foreign currency monetary items are reported using the closing rates. Exchanged difference arising nn reporting company s monetary items at rates different from those at which they weir initially recorded during the year are recognized as income or as expense in the year in which they arise. '

J.SALES

Sales represent invoice value of finish goods sold inclusive of Excise Duya and VAn net of sales return.

K. SUBSIDIES

Interest and Employment Generation Subsidy will be accounted for on receipt basis.

L. CLAIMS/REFUNDS

Excise, Insurance and other claims I refunds are accounted for on acceptance / actuary receipt P Payment bass.

M, EXPORT BENEFITS

Export entitlements in the form of Duty Drawback and/or Duty Entitlement Pass Book (DEPB scheme are recognized in the profit and loss account when the right to receive credit as pet the terms of the scSLffc established in respect of exports made and when there is no significant uncertainty rereading the ultimate collection of the relevant export proceeds.

N. EMPLOYEES BENEFITS

a) Defined Contribution Plan: Employee benefits in the form of ESIC and Provident Fund are considered as defined contribution plan and the contributions are charged to the Profit and loss account of the year when the contributions to the respective funds are due

b) Defined Benefit Plan: Employee benefits in the form of Gratuity Leave Encashment considered a defined benefit plan and are being accounted for on an accrual basis

O.TAXES ON INCOME.

a) Current Tax: Current tax is determined as the amount of tax payable income for the year determined in accordance with the provisions of the income tax act 1961. Minimum Alternative Tax credit available if any under section 115JB of the income tax act,7961 is accounted in the year in which the benefits are claimed

b) Deferred Tax: Deferred tax misrecognized subject to consideration of Prudence on the basis of timing differences being the differences between taxable income and accounting income that originate in one period and dupable our resale in one or more subsequent period using the tax rate and laws that have been enacted our substantially enacted as on the balance sheet date. The Different tax Asset is recognized and deride forward only to the extent that there is reasonable certainty that the asset will be realized ii future. reasonable certainty that the asset will

P. PRIOR PERIOD ADJUSTMENTS

Adjustment of identifiable items of Income & Expenditure pertaining to the rigor period is

Q. CONTINGENCIES

Liabilities, which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of noted to the accounts.

R. INTANGIBLE ASSETS

The company has not changed its accounting for recognition of intangible assets.

 
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