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Accounting Policies of Riga Sugar Co. Ltd. Company

Mar 31, 2015

(a) Basis of Preparation of accounts :

The accounts have been prepared based on 'historical cost' (except for certain fixed assets which are revalued) and governing statutes of India except otherwise stated.

(b) Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent assets and liabilities as at the balance sheet date and the reported amount of income and expenditure during the year.

(c) Revenue:

Revenue are recognized on the basis of certainty of their ultimate collection.

(d) Provisions

Provisions are recognized where realiable estimates can be made for probable outflow of resources to settle present obligation as a result of past event and the same is reviewed at each balance sheet date.

(e) Prior Period Items

Prior period expenses/income are accounted under the respective heads. Material items, if any, are disclosed separately by way of a note, except the items which are necessitated by circumstances although related to prior period but are determined in current period.

(f) Sales:

Sales include Excise Duty, Inter-divisional transfers but excludes sale tax/VAT.

(g) Government Grants and subsidies

Government grants and subsidies identifiable with specific fixed assets are adjusted against the value of those fixed assets. Government grants and subsidies not identifiable with any fixed assets are credited to Capital Reserve.

Government grants and subsidies identifiable with specific revenue expenses are adjusted with such revenue expenses. Government grants and subsidies not identifiable with any specific revenue expenses, are accounted for as other income.

(h) Research & Development:

Revenue Expenditure is charged to Profit & Loss Account and Capital Expenditure is added to the cost of Fixed Assets in the accounting year in which it is incurred.

(i) Expenditure on Modernisation and Expansion:

Expenses directly related to the Modernisation/Expansion Project are capitalised. Interest and financial Charges during construction period are also capitalised. Expenses incurred for arranging finance for capital project are amortized over the period of 10 years.

(j) Borrowing Cost:

Borrowing cost attributable to the acquisition and construction of fixed assets/projects are capitalized till it is put into use for intended future benefit

(k) Fixed Assets:

Fixed Assets are stated at their original cost comprising purchase price, taxes and duties but net of Modvat/Cenvat credit allowed. All costs attributed to bring such assets to working condition and relative borrowing costs attributable to the acquisition and construction of fixed assets are capitalized till put into use for intended use. Capital subsidy received is reduced from cost of relevant fixed assets. The cost of fixed assets may undergo changes subsequent to its acquisition or construction on account of exchange fluctuation, price adjustments, changes in duties or similar factors. The discarded/ obsolete fixed assets are transferred to scrap with recoupment of gross value and accumulated depreciation.

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

Impairment losses, if any, are recognized in accordance with the Accounting Standard specified under section 133 of the Companies Act, 2013, read with rule 7 of Companies (Accounts) rule, 2014.

(l) Depreciation:

Depreciation on tangible assets is provided on the straight line method over the useful life of the assets estimated by the management. Depreciation for assets purchased /sold during the year is proportionately charged. The management estimates the useful life for tangible fixed assets as follow:-

Building- Factory -30 years

Building- Non-Factory -60 years

Plant and Machineries -25 years

Furniture and Fixture -5 years

Computer and Data Processor -3 years

Vehicle -8 years

Intangible assets are amortized over a period of ten years.

(m) Inventory:

Description Basis of Valuation



i) Stores & Spare Parts At lower of cost or net realisable value

ii) Loose tools & Equipment's At lower of cost or net realisable value

iii) Raw Materials At lower of cost or net realisable value

iv) Finished Goods:

a) Sugar At lower of cost or net realisable value.

b) Molasses (Byproduct) At realisable value.

c) Industrial Alcohol At lower of cost or net realisable value.

d) NPK Fertiliser At lower of cost or net realisable value.

e) Bio-Compost & Organic

Fertiliser made of wastes At estimated realisable value.

v) Work in Process (Sugar) At lower of cost or net realisable value.

vi) Standing Crop At estimated realisable value.

vii) Bagassee At estimated realizable value

The cost of inventory comprises cost price and all cost attributed to bring such inventory to its location including taxes and duties (net of credit) and is computed on weighted average basis.

(n) Employee Benefits:

(a) Short Term employee benefits:

These are recognized as an expense at undiscounted amount in the year in which the related services are rendered.

(b) Post employment benefits:

(i) Provident Fund:

Contributions under this defined benefit plan are being deposited to the government administered /trust formed exclusively for maintaining the provident fund related activities of the company, which is an exempted organization under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to profit and loss account on accrual basis.

(ii) Gratuity and Leave Encashment::

Liabilities annually determined by the Actuary are provided for.

(iii) Actuarial Gain/Loss:

Liabilities annually determined by the Actuary are accounted for.

(o) Insurance Claim :

These are accounted for on settlement of claim basis.

(p) Foreign Currency Transaction:

Transactions in Foreign Currency covered under 'Forward Contract' are recorded at the exchange rate prevailing at the time of transaction. The difference between forward rate and exchange rate on the date of the Forward Contract is recognised as income or expense over the life of the contract and is taken to Profit and loss account.

(q) Taxes on Income

Income tax expenses comprise current tax and deferred tax. Deferred tax liabilities and assets are recognized for all timing differences using the taxable rates substantively enacted by the balance sheet date and are reviewed at 31st March. Recognition of deferred tax assets is subject to consideration of prudence.

(r) Earning Per Share

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the net profit after tax by the weighted average number of equity share considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

(s) Contingent Liabilities and Assets:-

Contingent liabilities are not provided for and are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.


Mar 31, 2014

(a) Basis of Preparation of accounts :

The accounts have been prepared based on ''historical cost'' (except for certain fixed assets which are revalued) and governing statutes of India except otherwise stated.

(b) Use of Estimates :

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent assets and liabilities as at the balance sheet date and the reported amount of income and expenditure during the year.

(c) Revenue :

Revenue are recognized on the basis of certainty of their ultimate collection.

(d) Provisions :

Provisions are recognized where realiable estimates can be made for probable outflow of resources to settle present obligation as a result of past event and the same is reviewed at each balance sheet date.

(e) Prior Period Items :

Prior period expenses/income are accounted under the respective heads. Material items, if any, are disclosed separately by way of a note, except the items which are necessitated by circumstances although related to prior period but are determined in current period.

(f) Sales :

Sales include Excise Duty, Inter-divisional transfers but excludes sale tax/VAT.

(g) Government Grants and Subsidies :

Government grants and subsidies identifiable with specific fixed assets are adjusted against the value of those fixed assets. Government grants and subsidies not identifiable with any fixed assets are credited to Capital Reserve.

Government grants and subsidies identifiable with specific revenue expenses are adjusted with such revenue expenses. Government grants and subsidies not identifiable with any specific revenue expenses, are accounted for as other income.

(h) Research & Development :

Revenue Expenditure is charged to Profit & Loss Account and Capital Expenditure is added to the cost of Fixed Assets in the accounting year in which it is incurred.

(i) Expenditure on Modernisation and Expansion :

Expenses directly related to the Modernisation/Expansion Project are capitalised. Interest and financial Charges during construction period are also capitalised. Expenses incurred for arranging finance for capital project are amortized over the period of 10 years.

(j) Borrowing Cost :

Borrowing cost attributable to the acquisition and construction of fixed assets/projects are capitalized till it is put into use for intended future benefit.

(k) Fixed Assets :

Fixed Assets are stated at their original cost comprising purchase price, taxes and duties but net of Modvat/Cenvat credit allowed. All costs attributed to bring such assets to working condition and relative borrowing costs attributable to the acquisition and construction of fixed assets are capitalized till put into use for intended use. Capital subsidy received is reduced from cost of relevant fixed assets. The cost of fixed assets may undergo changes subsequent to its acquisition or construction on account of exchange fluctuation, price adjustments, changes in duties or similar factors. The discarded / obsolete fixed assets are transferred to scrap with recoupment of gross value and accumulated depreciation.

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

Impairment losses, if any, are recognized in accordance with the Accounting Standard notified under the Companies Act, 1956.

(l) Depreciation :

Depreciation on Fixed Assets is provided at the rate and in the manner specified in Schedule XIV to the Companies Act, 1956 considering the Sugar Mill, Ethyl Alcohol, Ethanol & Fertilisers Plants as ''continuous process'' Plants. Depreciation is charged on ''Straight Line Method'' but for the Fixed Assets acquired during the period from 1986-87 to 1988-89, it is charged on "Written Down Value Method''. Discarded assets are depreciated fully. Intellectual Property Rights is amortized over a period of ten years.

(m) Inventory:

Description Basis of Valuation

i) Stores & Spare Parts At lower of cost or net realisable value

ii) Loose tools & Equipment''s At lower of cost or net realisable value

iii) Raw Materials At lower of cost or net realisable value

iv) Finished Goods :

a) Sugar At lower of cost or net realisable value.

b) Molasses (Byproduct) At realisable value.

c) Industrial Alcohol At lower of cost or net realisable value.

d) NPK Fertiliser At lower of cost or net realisable value.

e) Bio-Compost & Organic

Fertiliser made of waste At estimated realisable value.

v) Work in Process (Sugar) At lower of cost or net realisable value.

vi) Standing Crop At estimated realisable value.

vii) Bagassee At estimated realisable value

The cost of inventory comprises cost price and all cost attributed to bring such inventory to its location including taxes and duties (net of credit) and is computed on weighted average basis.

(n) Employee Benefits :

(a) Short Term employee benefits :

These are recognized as an expense at undiscounted amount in the year in which the related services are rendered.

(b) Post employment benefits :

(i) Provident Fund :

Contributions under this defined benefit plan are being deposited to the government administered /trust formed exclusively for maintaining the provident fund related activities of the company, which is an exempted organization under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to profit and loss account on accrual basis.

(ii) Gratuity and Leave Encashment :

Liabilities annually determined by Actuary are provided for. iii) Actuarial Gain/Loss :

Liabilities annually determined by Actuary are accounted for.

(o) Insurance Claim :

These are accounted for on settlement of claim basis.

(p) Foreign Currency Transaction :

Transactions in Foreign Currency covered under ''Forward Contract'' are recorded at the exchange rate prevailing at the time of transaction. The difference between forward rate and exchange rate on the date of the Forward Contract is recognised as income or expense over the life of the contract and is taken to Profit and loss account.

(q) Taxes on Income :

Income tax expenses comprise current tax and deferred tax. Deferred tax liabilities and assets are recognized for all timing differences using the taxable rates substantively enacted by the balance sheet date and are reviewed at 31st March. Recognition of deferred tax assets is subject ! to consideration of prudence set out in AS-22 of the Companies Act.1956.

(r) Earning Per Share :

Computed in accordance with the AS-20 of the Companies Act, 1956.

(s) Contingent Liabilities and Assets :

Contingent liabilities are not provided for and are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.


Mar 31, 2013

(a) Basis of Preparation of accounts :

The accounts have been prepared based on ''historical cost'' (except for certain fixed assets which are revalued) and governing statutes of India except otherwise stated.

(b) Use of Estimates :

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent assets and liabilities as at the balance sheet date and the reported amount of income and expenditure during the year.

(c) Revenue :

Revenue are recognized on the basis of certainty of their ultimate collection.

(d) Provisions :

Provisions are recognized where realiable estimates can be made for probable outflow of resources to settle present obligation as a result of past event and the same is reviewed at each balance sheet date.

(e) Prior Period Items :

Prior period expenses/income are accounted under the respective heads. Material items, if any, are disclosed separately by way of a note, except the items which are necessitated by circumstances although related to prior period but are determined in current period.

(f) Sales :

Sales include Excise Duty, Inter-divisional transfers but excludes sale tax/VAT.

(g) Governments Grants and subsidies :

Government grants and subsidies identifiable with specific fixed assets are adjusted against the value of those fixed assets. Government grants and subsidies not identifiable with any fixed assets are credited to Capital Reserve. Government grants and subsidies identifiable with specific revenue expenses are adjusted with such revenue expenses. Government grants and subsidies not identifiable with any specific revenue expenses, are accounted for as other income.

(h) Research & Development :

Revenue Expenditure is charged to Profit & Loss Account and Capital Expenditure is added to the cost of Fixed Assets in the accounting year in which it is incurred.

(i) Expenditure on Modernisation and Expansion :

Expenses directly related to the Modernisation/Expansion Project are capitalised. Interest and financial Charges during construction period are also capitalised. Expenses incurred for arranging finance for capital project are amortized over the period of 10 years.

(j) Borrowing Cost :

Borrowing cost attributable to the acquisition and construction of fixed assets/projects are capitalized till it is put into use for intended future benefit.

(k) Fixed Assets :

Fixed Assets are stated at their original cost comprising purchase price, taxes and duties but net of Modvat/Cenvat credit allowed. All costs attributed to bring such assets to working condition and relative borrowing costs attributable to the acquisition and construction of fixed assets are capitalized till put into use for intended use. Capital subsidy received is reduced from cost of relevant fixed assets. The cost of fixed assets may undergo changes subsequent to its acquisition or construction on account of exchange fluctuation, price adjustments, changes in duties or similar factors. The discarded/ obsolete fixed assets are transferred to scrap with recoupment of gross value and accumulated depreciation.

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment, if any. Impairment losses, if any, are recognized in accordance with the Accounting Standard notified under the Companies Act, 1956.

(l) Depreciation :

Depreciation on Fixed Assets is provided at the rate and in the manner specified in Schedule XIV to the Companies Act, 1956 considering the Sugar Mill, Ethyl Alcohol, Ethanol & Fertilisers Plants as ''continuous process'' Plants.

Depreciation is charged on ''Straight Line Method'' but for the Fixed Assets acquired during the period from 1986-87 to 1988-89, it is charged on "Written Down Value Method''. Discarded assets are depreciated fully. Intellectual Property Rights is amortized over a period of ten years.

m) Inventory :

Description Basis of Valuation

i) Stores & Spare Parts At lower of cost or net realisable value.

ii) Loose tools & Equipment''s At lower of cost or net realisable value.

iii) Raw Materials At lower of cost or net realisable value.

iv) Finished Goods :

a) Sugar At lower of cost or net realisable value.

b) Molasses (By product) At realisable value.

c) Industrial Alcohol At lower of cost or net realisable value.

d) NPK Fertiliser At lower of cost or net realisable value.

e) Bio-Compost & Organic Fertiliser At estimated realisable value.

v) Work in Process (Sugar) At lower of cost or net realisable value.

vi) Standing Crop At estimated realisable value.

vii) Bagassee At estimated realisable value.

The cost of inventory comprises cost price and all cost attributed to bring such inventory to its location including taxes and duties (net of credit) and is computed on weighted average basis.

n) Employee Benefits :

(a) Short Term employee benefits :

These are recognized as an expense at undiscounted amount in the year in which the related services are rendered.

(b) Post employment benefits : (i) Provident Fund :

Contributions under this defined benefit plan are being deposited to the government administered/trust formed exclusively for maintaining the provident fund related activities of the company, which is an exempted organization under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to profit and loss account on accrual basis.

(ii) Gratuity and Leave Encashment :

Liabilities annually determined by Actuary are provided for.

(iii) Actuarial Gain/Loss :

Liabilities annually determined by Actuary are accounted for.

o) Insurance Claim :

These are accounted for on settlement of claim basis.

p) Foreign Currency Transaction :

Transactions in Foreign Currency covered under ''Forward Contract'' are recorded at the exchange rate prevailing at the time of transaction. The difference between forward rate and exchange rate on the date of the Forward Contract is recognised as income or expense over the life of the contract and is taken to Profit and loss account.

q) Taxes on Income :

Income tax expenses comprise current tax and deferred tax. Deferred tax liabilities and assets are recognized for all timing differences using the taxable rates substantively enacted by the balance sheet date and are reviewed at 31st March. Recognition of deferred tax assets is subject to consideration of prudence set out in AS-22 of the Companies Act.1956.

r) Earning Per Share :

Computed in accoudance with the AS-20 the Companies Act, 1956.

s) Contingent Liabilities & Assets :

Contingent liabilities are not provided for and are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.


Mar 31, 2012

A) Basis of Preparation of accounts :

The accounts have been prepared based on 'historical cost' (except for certain fixed assets which are revalued) and governing statutes of India except otherwise stated.

b) Use of Estimates :

The preparation of financial statements requires management to make estimates and assumption that affect the reported amount of assets and liabilities and disclosures relating to contingent assets and liabilities as at the balance sheet date and the reported amount of income and expenditure during the year.

c) Revenue :

Revenue are recognized on the basis of certainty of their ultimate collection.

d) Provisions :

Provisions are recognized where realiable estimates can be made for probable outflow of resources to settle present obligation as a result of past event and the same is reviewed at each balance sheet date.

e) Prior Period Items :

Prior period expenses/income are accounted under the respective heads. Material items, if any, are disclosed separately by way of a note, except the items which are necessitated by circumstances although related to prior period but are determined in current period.

f) Sales :

Sales include Excise Duty, Inter-divisional transfers but excludes sale tax/VAT.

g) Governments Grants and subsidies :

Government grants and subsidies identifiable with specific fixed assets are adjusted against the value of those fixed assets. Government grants and subsidies not identifiable with any fixed assets are credited to Capital Reserve. Government grants and subsidies identifiable with specific revenue expenses are adjusted with such revenue expenses. Government grants and subsidies not identifiable with any specific revenue expenses, are accounted for as other income.

h) Research & Development :

Revenue Expenditure is charged to Profit & Loss Account and Capital Expenditure is added to the cost of Fixed Assets in the accounting year in which it is incurred.

i) Expenditure on Modernisation and Expansion :

Expenses directly related to the Modernisation/Expansion Project are capitalised. Interest and financial Charges during construction period are also capitalised. Expenses incurred for arranging finance for capital project are amortized over the period of 10 years. j) Borrowing Cost :

Borrowing cost attributable to the acquisition and construction of fixed assets/projects are capitalized till it is put into use for intended future benefit. k) Fixed Assets :

Fixed Assets are stated at their original cost comprising purchase price, taxes and duties but net of Modvat/Cenvat credit allowed. All costs attributed to bring such assets to working condition and relative borrowing costs attributable to the acquisition and construction of fixed assets are capitalized till put into use for intended use. Capital subsidy received is reduced from cost of relevant fixed assets. The cost of fixed assets may undergo changes subsequent to its acquisition or construction on account of exchange fluctuation, price adjustments, changes in duties or similar factors.

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

Impairment losses, if any, are recognized in accordance with the Accounting Standard notified under the Companies Act, 1956. l) Depreciation :

Depreciation on Fixed Assets is provided at the rate and in the manner specified in Schedule XIV to the Companies Act, 1956 considering the Sugar Mill, Ethyl Alcohol, Ethanol & Fertilisers Plants as 'continuous process' Plants. Depreciation is charged on 'Straight Line Method' but for the Fixed Assets acquired during the period from 1986-87 to 1988-89, it is charged on "Written Down Value Method'. Discarded assets are depreciated fully. Intellectual Property Rights is amortized over a period of ten years. m) Inventory :

The cost of inventory comprises cost price and all cost attributed to bring such inventory to its location including taxes and duties (net of credit) and is computed on weighted average basis. n) Employee Benefits :

(a) Short Term employee benefits :

These are recognized as an expense at undiscounted amount in the year in which the related services are rendered.

(b) Post employment benefits :

(i) Provident Fund :

Contributions under this defined benefit plan are being deposited to the government administered/trust formed exclusively for maintaining the provident fund related activities of the company, which is an exempted organization under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to profit and loss account on accrual basis.

(ii) Gratuity and Leave Encashment :

Liabilities annually determined by Actuary are provided for.

(iii) Actuarial Gain/Loss :

Liabilities annually determined by Actuary are accounted for.

o) Insurance Claim :

These are accounted for on settlement of claim basis.

p) Foreign Currency Transaction :

Transactions in Foreign Currency covered under 'Forward Contract' are recorded at the exchange rate prevailing at the time of transaction. The difference between forward rate and exchange rate on the date of the Forward Contract is recognised as income or expense over the life of the contract and is taken to Profit and loss account.

q) Taxes on Income :

Income tax expenses comprise current tax and deferred tax. Deferred tax liabilities and assets are recognized for all timing differences using the taxable rates substantively enacted by the balance sheet date and are reviewed at 31st March. Recognition of deferred tax assets is subject to consideration of prudence set out in AS-22 of the Companies Act.1956.

r) Earning Per Share :

Computed in accoudance with the AS-20 the Companies Act, 1956.

s) Contingent Liabilities & Assets :

Contingent liabilities are not provided for and are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.


Sep 30, 2009

A) Basis of Preparation of accounts :

The accounts have been prepared based on historical cost (except for certain fixed assets which are revalued) and governing statutes of India except otherwise stated.

b) Use of Estimates :

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent assets and liabilities as at the balance sheet date and the reported amounts of income and expenses during the year.

c) Provisions:

Provisions are recognized where reliable estimates can be made for probable outflow of resources to settle present obligation as a result of past event and the same is reviewed at each balance sheet date.

d) Fixed Assets :

Fixed Assets are stated at their original cost comprising purchase price, taxes and duties but net of Modvat/Cenvat credit allowed. All costs attributed to bring such assets to working condition for their intended use and relative borrowing costs are also comprised therein. Intellectual Property Rights is amortized over a period of ten years.

e) Depreciation:

Depreciation on Fixed Assets is provided at the rate and in the manner specified in Schedule XIV to the Companies Act, 1956 considering the Sugar Mill, Ethyl Alcohol, Ethanol & Fertilisers Plants as continuous process Plants. Depreciation is charged on Straight Line Method but for the Fixed Assets acquired during the period from 1986- 87 to 1988-89, it is charged on "Written Down Value Method. Discarded assets are depreciated fully.

f) Inventories:

Description Basis of Valuation

i) Finished Goods :

a) Sugar At lower of cost or net realisable value.

b) Molasses (By product) At realisable value.

c) Industrial Alcohol At lower of cost or net realisable value.

d) Fertiliser At lower of cost or net realisable value.

e) Bio-Compost & Organic Manure (by product) At estimated realisable value.

ii) Work in Process (Sugar) At lower of cost or net realisable value.

iii) Standing Crop At estimated realisable value.

iv) Stores & Spare Parts At lower of cost or net realisable value.

v) Raw Materials At lower of cost or net realisable value.

The cost of Inventories is computed on weighted average basis.

Excise Duty is paid on removal of excisable goods from the factory. The liability for the same on the finished goods is being provided.

g) Sales:

Sales include Excise Duty, Inter-divisional transfers.

h) Expenses:

To be consistent with matching principle, expenses incurred during the off-season of the current accounting year which are directly related to the operation of the ensuing season are deferred to the forthcoming accounting year.

i) Research & Development:

Revenue Expenditure is charged to Profit & Loss Account and Capital Expenditure is added to the cost of Fixed Assets in the accounting year in which it is incurred. j) Expenditure on Modernisation and Expansion :

Expenses directly related to the Modernisation/Expansion Project are capitalised. Interest and Financial Charges during construction period are also capitalised.

k) Employee Benefits :

(a) Short Term employee benefits :

These are recognized as an expense at undiscounted amount in the year in which the related services are rendered.

(b) Post employment benefits :

(i) Provident Fund :

Contributions under this defined benefit plan are being deposited to the government administered/trust formed exclusively for maintaining the provident fund related activities of the company, which is an exempted organization under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to profit and loss account on accrual basis.

(ii) Gratuity:

Liabilities are annually determined by Actuary as per AS-15 (revised), are not provided for and are recognized at the time of retirement.

(iii) Leave Encashment:

Liabilities are annually determined by Actuary as per AS-15 (revised), are not provided for and are recognized at the time of retirement.

(iv) Actuarial Gain/Loss :

Are recognized immediately in the profit and loss account as income/expeses.

l) Insurance Claim :

These are accounted for on settlement of claim basis.

m) Foreign Currency Transaction :

Transactions in Foreign Currency covered under Forward Contract are recorded at the exchange rate prevailing at the time of transaction. The difference between forward rate and exchange rate on the date of the Forward Contract is recognised as income or expense over the life of the contract and is taken to Profit and loss account.

n) Taxes on Income :

Income tax expenses comprise current tax and deferred tax. Deferred tax liabilities and assets are recognized for all timing differences using the taxable rates substantively enacted by the balance sheet date and are reviewed at 31 st March and 30th September. Recognition of deferred tax assets is subject to consideration of prudence set out in AS-22 of the Companies Act.1956.

o) Earning Per Share :

In accordance with the Accounting Standard 20 "Earnings per Shares" issued by the Institute of Chartered Accountants of India, basic/diluted earnings per share is computed using the weighted average number of shares outstanding during the period.

p) Prior Period Items :

Prior period expenses/income are accounted under the respective heads. Material items, if any, are disclosed separately by way of a note.

q) Contingent Liabilities & Assets :

Contingent liabilities are not provided for and are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.