Mar 31, 2015
I) Basis of Preparation of Financial Statements
The financial statement has been prepared in accordance with the
historical cost convention, accounting standards issued vide Companies
(Accounting Standard), Rules 2006, as prescribed under section 133 of
the Companies Act 2013 read with rule 7 of Companies (Accounts) Rules,
2014 and other relevant provisions of the Companies Act, 2013 and
earlier years financial statement were prepared as per relevant
provisions of the Companies Act, 1956 (refer General circular 08/2014
dated 04/04/2014 of the Ministry of Corporate Affairs for applicability
of relevant provisions/ schedules/ rules of the Companies Act, 1956 for
the financial statements prepared for the financial year commenced
earlier than 01.04.2014) and the provisions of the Companies Act, 2013
(to the extent applicable).
ii) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and
liabilities and disclosures of contingent liabilities and commitments
at the end of the financial statements and results of operations during
the reporting period. Although these estimates are based upon the
management's best knowledge of current events and actions, actual
results could differ from these estimates. Difference between the
actual result and estimates are recognized in the period in which the
results are known/ materialized.
iii) Fixed Assets and Depreciation
a) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any. Costs include costs of acquisitions or
constructions, including incidental expenses thereto and other
attributable costs of bringing the asset to its working condition for
its intended use and are net of available duty/tax credits.
b) Expenditure during construction period
Expenditure related to and incurred during implementation of
new/expansion-cum- modernization projects is included under capital
work-in-progress and the same is allocated to the respective fixed
assets on completion of its construction/erection
c) Intangible Assets
Assets are recognized and disclosed as per Accounting Standard 26
"Intangible Assets".
d) Depreciation and Amortization
Depreciation on fixed assets is provided on straight-line method (SLM)
at the rates and in the manner specified in Schedule II of the
Companies Act 2013, with effect from 1st April 2014 and before that
depreciation is provided on SLM basis at rates specified in schedule
XIV to the Companies Act, 1956.
iv) Impairment of Assets
The carrying amount of assets is reviewed for impairment at each
balance sheet date wherever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount for which the asset's carrying amount exceeds
its recoverable amount
v) Valuation of Inventories
Stores & spares are valued at cost or under net realizable value.
Stock-in- trade is valued at the lower of cost and net realizable
value. Cost is arrived at on the weighted average basis. Appropriate
share of labour and other overheads are.included in the case of work in
progress and finished goods.
vi) Foreign Currency Transactions
Foreign currency transactions are recorded at the rate of exchange
prevailing at the date of the transaction. Monetary items denominated
in foreign currency are reported using the closing exchange rates on
the date of the balance sheet.
In case of forward foreign exchange contracts, the premium or discount,
arising at the inception of such contracts, is as income or expense
over the life of the contract and the exchange differences on such
contracts, i.e., difference between the exchange rate at the reporting/
settlement date and the exchange rate on the date of inception of
contract/ the last reporting, is recognized as income/expense for the
period.
vii) Investments
Long term investments are stated at cost unless there is a permanent
diminution in the value thereof.
viii) Revenue Recognition
a] Sales are inclusive of excise duty but net of returns, rebates, VAT
and sales tax. Products returned/rejected are accounted for in the year
of return/rejection.
b) Export sales are accounted for on the basis of the date of bill of
lading/airways bill..
c) Export benefits available under the Export Import policy of the
Government of India are accounted for in the year of export, to the
extent measurable.
a) Income from services is accounted for at the time of completion of
service and billing thereof.
ix) Employee Benefits
Expenses & liabilities in respect of employee benefits are recorded in
accordance with Accounting Standard (AS)-15 -Employee Benefits'.
i) The contributions to the provident fund for all employees and the
contributions to the superannuation and gratuity funds for managerial
staff are charged to revenue. Provision for gratuity (other than for
managerial staff), determined on an arithmetical (or actuarial) basis
at the end of the year is charged to the revenue.
ii) Provision for leave entitlement, determined on an arithmetical (or
actuarial)
basis at the end of the year, is charged to revenue.
Warranty
Provision for warranty is made on the basis of average cost as per past
experience.
x) Taxes on Income
Provision for current tax is made considering various allowances and
benefits available to the Company under the provisions of the Income
Tax Act, 1961.
In accordance with Accounting Standard (AS-22) 'Accounting for Taxes on
Income', deferred taxes resulting from timing differences between book
and tax profits are accounted for at the tax rate substantively enacted
by the Balance Sheet date to the extent the timing differences are
expected to be crystallized. Deferred tax assets are recognized and
reviewed at each Balance Sheet date to the extent there is
reasonable/virtual certainty of realizing such assets against future
taxable income.
Minimum Alternate Tax (MAT) credit is recognized as an asset only when
and to the extent there is convincing evidence that the Company will
pay normal income tax during the specified period.
xi) , Provisions, contingent liabilities, commitments and contingent
assets
Provisions are recognized for present obligations of uncertain timing
or amount arising as a result of a past event where a reliable estimate
can be made and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation. Where it
is not probable that an outflow of resources embodying economic
benefits will be required or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability and commitments,
unless the probability of outflow of resources embodying economic
benefits is remote.
Possible obligations, whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain events, are also
disclosed as contingent liabilities and commitments unless the
probability of outflow of resources embodying economic benefits is
remote. Contingent assets are neither recognized nor disclosed in the
financial statements.
xii) Cash Flow Statements
Cash low statements are reported using the indirect method; where by a
profit before tax is adjusted for the effects of the transactions of
non-cash nature & any deferrals or accruals of past or future cash
receipts or payments. The cash flows from the operating, investing &
financing activities of the Company are segregated.
xiii) Earnings per share
The earnings considered in ascertaining the Company's earnings per
share (EPS) comprise of the net profit after tax attributable to equity
shareholders. The number of shares used in computing basic EPS is the
weighted average number of shares outstanding during the period
adjusted for events of bonus issue post period end,, bonus elements in
right issue to existing shareholders, share split, and reverse share
split (consolidation of shares). The diluted EPS is calculated on the
same basis as basic EPS, after adjusting for the effect of potential
dilutive equity shares unless impact is anti-dilutive. ,
Mar 31, 2014
I) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention, on a going concern basis and in terms of the Accounting
Standards notified by Companies (Accounting Standards) Rules, 2006 in
compliance with Section 211(3c) of the Companies Act, 1956. The Company
follows the mercantile system of accounting and recognizes income and
expenditure on accrual basis to the extent measurable and where there
is certainty of ultimate realisation in respect of incomes. Accounting
policies not specifically referred to otherwise are consistent and in
consonance with the generally accepted accounting principles In India.
The Company has prepared its financial statements in accordance with
Schedule VI as inserted by Notification- S.O. 447(E), dated 28th
February 2011 (As amended by Notification No F.NO. 2/6/2008-CL-V,
Dated 30th March''2011). The Schedule does not impact recognition and
measurement principle followed for the preparation of financial
statements.
However it has necessitated significant changes in the presentation of
and disclosures in financial statements. The. Company has reclassified
its previous year figures to conform to the classification as per the
aforesaid Schedule.
ii) Use of estimates
The. preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and
liabilities and disclosures of contingent liabilities and commitments
at the end of the financial statements and results of operations during
the reporting period. Although these estimates are based upon the
management''s best knowledge of current events and actions, actual
results could differ from these estimates. Difference between the
actual result and estimates are recognized in the period in which the
results are known/ materialized.
iii) Fixed Assets and Depreciation
a) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any. Costs include costs of acquisitions or
constructions, including incidental expenses thereto and other
attributable costs of bringing the asset to its working condition for
its intended use and are net of available duty/tax credits.
b) Expenditure during construction period
Expenditure related to and incurred during implementation of
new/expansion-cum-modernisation projects is included under capital
work-in-progress and the same is allocated to the respective fixed
assels on completion of its construction/ereotion
c) Intangible Assets
Assels are recognized and disclosed as per Accounting Standard 26
"intangible Assets".
d) Depreciation and Amortization
Depreciation on fixed assets is provided on straight-line method (SLM)
at the rates and in the manner specified in Schedule XIV to the
Companies Act, 1956.
iv) . Impairment of Assets
The carrying amount of assets is reviewed for impairment at each
balance sheet date wherever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount for which the asset''s carrying amount exceeds
its recoverable amount.
v) - Valuation of Inventories
* Stores & spares are valued at cost or under net realizable value.
Stock-in- trade is valued at the lower of cost and net realizable
value. Cost is arrived at on the weighted average basis. Appropriate
share of labour and other overheads '' are included In the case of work
in progress and finished goods.
vi) Foreign Currency Transactions
Foreign currency transactions are recorded at the rate of exchange
prevailing at the date of the transaction.
Monetary items denominated in foreign currency are reported using the
closing exchange rates on the date of the balance sheet.
In case of forward foreign exchange contracts, the premium or discount,
arising at the inception of such contracts, is as income or expense
over the life of the contract and the exchange differences on such
contracts. i,e., difference between the exchange rate at the reporting/
settlement date and the exchange rate on the date of inception of
contract/ the last reporting, is recognized as income /expense for the
period.
vii) Investments
Long term investments are stated at cost unless there is a permanent
diminution in the value thereof.
viii) Revenue Recognition
a) Sales are inclusive of excise duty but net of returns, rebates, VAT
and sales tax. Products returned/rejected are accounted for in the year
of return/rejection.
b) Export sales are accounted for on the basis of the date of bill of
lading/airways bill.
c) Export benefits available under the Export Import policy of the
Government of India are accounted for in the year of export, to the
extent measurable.
a) Income from services is accounted for at the time of completion of
service and billing thereof.
ix) Employee Benefits
Expenses & liabilities in respect of employee benefits are recorded in
accordance with Accounting Standard (AS)-15Employee Benefits''.
i) The contributions to the provident fund for all employees and the
contributions to the superannuation and gratuity funds for managerial
staff are charged to revenue. Provision for gratuity (other than for
managerial staff), determined on an arithmetical (or actuarial) basis
at the end of the year is charged to the revenue.
ii) Provision for leave entitlement, determined on an arithmetical (or
actuarial) basis at the end of the year, is charged to revenue.
Warranty
Provision for warranty is made on the basis of average cost as per past
experience.
x) Taxes on Income
Provision for current tax is made considering various allowances and
benefits available to the Company under the provisions of the Income
Tax Act, 1961.
In accordance with Accounting Standard (AS-22) ''Accounting for Taxes on
Income'', deferred taxes resulting from timing differences between book
and tax profits are accounted for at the tax rate substantively enacted
by the Balance Sheet date to the extent the timing differences are
expected to be crystallized. Deferred tax assets are recognized and
reviewed at each Balance Sheet date to the extent there is
reasonable/virtual certainty of realizing such assets against future
taxable income.
* Minimum Alternate Tax (MAT) credit is recognized as an asset only
when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period.
xi) Provisions, contingent liabilities, commitments and contingent
assets
Provisions are recognized for present obligations of uncertain timing
or amount arising as a result of a past event where a reliable estimate
can be made and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation. Where it
is not probable that an outflow of resources embodying economic
benefits will be required or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability and commitments,
unless the probability of outflow of resources embodying economic
benefits is remote.
Possible obligations, whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain events, are also
disclosed as contingent liabilities and commitments unless the
probability of outflow of resources embodying economic benefits is
remote. Contingent assets are neither recognized nor disclosed in the
financial statements.
xii) Cash Flow Statements
Cash low statements are reported using the indirect method; where by a
profit before tax is adjusted for the effects of the transactions of
non-cash nature & any deferrals or accruals of past or future cash
receipts or payments. The cash flows from the operating, investing &
financing activities of the Company are segregated.
xiii) Earnings per share
The earnings considered in ascertaining the Company''s earnings per
share (EPS) comprise of the net profit after tax attributable to equity
shareholders. The number of shares used in computing basic EPS is the
weighted average number of shares outstanding during the period
adjusted for events of bonus issue post period end, bonus elements in
right issue to existing shareholders, share split, and reverse share
split (consolidation of shares). The diluted EPS is calculated on the
same basis as basic EPS, after adjusting for the effect of potential
dilutive equity shares unless impact is anti-dilutive.
Mar 31, 2013
I) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost
convention, on a going, concern basis and in terms of the Accounting
Standards notified by Companies (Accounting Slandards) Rules, 2006 in
compliance with Section 21K3C) of the Companies Act, 1956. The Company
follows the mercantile system of accounting and recognizes income and
expenditure on accrual basis to the extent measurable and where there
is certainty of ultimate realisation in respect of incomes. Accounting
policies not specifically referred lo otherwise are consistent and in
consonance with the generally accepted accounting principies in india.
The Company has prepared its financial statements in accordance with
Schedule VI as inserted by Notification- S.O. 447(E), dated 28th
February 2011 (As amended by Notification No F.NO. 2/6/2008-CL-V, Dated
30th March''2011). The Schedule does not impact recognition and
measurement principle followed for the preparation of financial
statements. However it has necessitated significant changes in the
presentation of and disclosures in financial statements. The Company
has reclassified its previous year figures to conform to the
classification as per the aforesaid Schedule.
ii) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires managemenl to make estimates
and assumptions that affect the reported amount of assets and
liabilities and disclosures of contingent liabilities and commitments
at the end of the financial statements and results of operations during
the reporting period Although these estimates are based upon the
management''s best knowledge of current events and actions, actual
results could differ from these estimates. Difference between the
actual result and estimates are recognized in the period in which, the
results are known/ materialized.
iii) Fixed Assets and Depreciation
a) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any. Costs include costs of acquisitions or
constructions, including incidental expanses thereto and other
attributable costs of bringing Llie asset to its working condition for
its intended use and are net of available duty/tax credits
b) Expenditure during construction period
Expenditure related to and incurred during implementation of
new/expansion-cum-modemisation projects is included under capital
work-in-progress and the same is allocated to the respective fixed
assets on completion of its construction/erection.
c) Intangible Assets
Assets are recognized and disclosed as per Accounting Standard 26
"intangible Assets"
d) Depreciation and Amortization
Depreciation on fixed assets is provided on straight-line method (SLM)
at tne rates and in the manner specified in Schedule XIV to the
Companies Act, 1956.
iv) Impairment of Assets
The carrying amount of assets is reviewed for impairment at each
balance sheet date wherever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment ioss is
recognized for the amount for which the asset''s carrying amou nt
exceeds its recoverable a mou nt
v) Valuation of Inventories
Stores & spares are valued at cost or under net realizable value.
Stock-in- trade is valued at the lower of cost and net realizable
value. Cost is arrived at on the weighted average basis. Appropriate
share of labour and other overheads are included in the case of work in
progress and finished goods.
vi) Foreign Currency Transactions
Foreign currency transactions are recorded at the rate of exchange
prevailing at the date of the transaction. ¦ Monetary items
denominated in foreign currency are reported using the closing exchange
rates on the date of the balance sheet.
In case of forward foreign exchange contracts, the premium or discount,
arising at the inception of such contracts, is as income or expense
over the life of the contract and the exchange differences on such
contracts, i.e., difference between the exchange rate at the reporting/
settlement date and the exchange rate on the date of inception of
contract/ Ihe last reporting, is recognized as income /expense for the
period. Long term investments are stated at cost unfess there is a
permanent diminution in the value thereof. viii} Revenue Recognition
a) Sales are inclusive of excise duty but net of returns, rebates, VAT
and sa''es tax, Products returned/rejected are accounted for in the year
of return/rejection.
b) Export sales are accounted fcr on the basis of the date of bill of
lading/airways bill
c) Export benefits available under the Export Import policy of the
Government of India are accounted for in the year of export, to the
extent measurable.
a) Income from services is accounted for at the time of completion of
service and billing thereof.
ix} Employee BenefLts
Expenses & liabilities in respect of employee benefits are recorded in
accordance with Accounting Standard {ASJ-15 -Employee Benefits''.
i) The contributions to the provident fund for all employees and the
contributions to the superannuation and gratuity funds for managerial
staff are charged to revenue. Provision for gratuity (other than for
managerial staff)f determined on an arithmetical (or actuarial) basis
at the end of the year is charged to the revenue.
ii) Provision for leave entitlement, determined on an arithmetical for
actuarial) basis at the end of the year, is charged to revenue-
Warranty
Provision for warranty is made on the basis of average cost as per past
experience.
x) Taxes on Income
Provision for current tax is made considering various allowances and
benefits available to the Company under the provisions of the income
Tax Act, 1961.
In accordance with Accounting Standard (AS-22) ''Accounting for Taxes on
income, deferred taxes resulting from timing differences between book
and tax profits are accounted for at the tax rate substantively enacted
by the Balance Sheet date to the extent the liming differences are
expected to be crystallized. Deferred tax assets are recognized and
reviewed at each Balance Sheet date to the extent there is
reasonable/virtual certainty of realising such assets against future
taxabie Minimum Alternate Tax (MAT) credit is recognized as an asset
only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period
xi) Provisions, contingent liabilities, commitments and contingent
assets
Provisions are recognized far present obligations of uncertain timing
or amount arising as a result of a past event where a reliable estimate
can be made and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation. Where it
is not probable thai an outflow of resources embodying economic
benefits will be required or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability and commitments,
unless the probability of outflow of resources embodying economic
benefits is remote.
Possible obligations, whose eKistence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain events, are also
disclosed as contingent liabilities and commitments unless the
probability of outflow of resources embodying economic benefits is
remote, Contingent assets are neither recognized nor disclosed in the
financial statements.
xii) Cash Flow Statements
Cash low statements are reported using the indirect method; where by a
profit before tax is adjusted for the effects of the transactions of
non-cash nature & any deferrals or accruals of past or future cash
receipts or payments. The cash flows from the operating, investing &
financing activities of the Company are segregated.
xjii) Earnings per share
The earnings considered in ascertaining the Company''s earnings per
share (EPS) comprise of the net profit after lax attributable to equity
shareholders. The number of shares used in computing basic EPS is the
weighted average number of shares outstanding during the period
adjusted for events of bonus issue post period end. bonus elements in
right issue to existing shareholders, share split, and reverse share
split (consolidation of shares). The diluted EPS is calculated on the
same basis as basic EPS, after adjusting for the effect of potential
dilutive equity shares unless impact is anti-dilutive.
Mar 31, 2011
1. Accounting convention
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with applicable
Accounting Standards u/s 211 subsection (3C) of the Companies Act 1956
and other provisions of the Act.
2. Fixed assets
Fixed assets are stated at cost of acquisition / construction less
accumulated depreciation. The cost includes all preoperative expenses
relating to construction period in the case of new projects and
expansion of existing factories.
3. Depreciation
Depreciation on fixed assets is provided on the straight-line method
(SLM) at the rates specified in Schedule XIV to the Companies Act,
1956.
4. Investments
Long term investments are stated at cost unless there is a permanent
diminution in the value thereof.
5. Inventories
Stores and spares are valued at cost or under net relisable value.
Stock-in-trade is valued at the lower of cost and net realizable value.
Cost is arrived at on the weighted average basis. Appropriate share of
labour and other overheads are included in the case of work in process
and finished goods.
6. Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rates
prevailing at the date of the transaction.
Monetary items denominated in foreign currency are reported using the
closing exchange rates on the date of the balance sheet.
The exchange differences arising on settlement of monetary items or on
reporting these items at the rates different from the rates at which
these were initially recorded / reported in previous financial
statements, are recognised as income / expense in the period in which
they arise.
In case of forward exchange contracts, the premium or discount, arising
at the inception of such contracts, is amortised as income or expense
over the life of the contract and the exchange difference on such
contracts, i.e., difference between the exchange rate at the reporting
/ settlement date and the exchange rate on the date of inception of
contract / the last reporting, is recognised as income / expense for
the period
7. Revenue recognition
Sales are recognized at the point of dispatch of goods to customers.
Sales are net of discounts and rebates.
8. Employee's benefits
i) The contributions to the provident fund for all employees and the
contributions to the superannuation and gratuity funds for managerial
staff are charged to revenue. Provision for gratuity (other than for
managerial staff), determined on an arithmetical basis at the end of
the year is charged to the revenue.
ii) Provision for leave entitlement, determined on an arithmetical
basis at the end of the year, is charged to revenue.
9. Warranty
Provision for warranty is made on the basis of average cost as per past
experience.
10. Taxation
Provision for current taxation is ascertained on the basis of
assessable profits computed in accordance with the provisions of the
Income-tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence &
on virtual certainty of future taxable income, on timing differences,
being the differences between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
11. Impairment of assets
The Company assesses whether there is any indication that any asset may
be impaired at the balance sheet date. If any indication exists, the
Company estimates the recoverable amount and an impairment loss is
recognized in the accounts, to the extent the carrying amount exceeds
the recoverable amount.
12. Intangible Assets
Assets are recognized and disclosed as per Accounting Standard 26
"Intangible Assets" issued by the Institute of Chartered Accountants of
India.
Mar 31, 2010
A. Accounting convention
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with applicable
Accounting Standards u/s 211 subsection (3C) of the Companies Act 1956
and other provisions of the Act.
B. Fixed assets
Fixed assets are stated at cost of acquisition / construction less
accumulated depreciation. The cost includes all preoperative expenses
relating to construction period in the case of new projects and
expansion of existing factories.
C. Depreciation
Depreciation on fixed assets is provided on the straight-line method
(SLM) at the rates specified in Schedule XIV to the Companies Act,
1956.
D. Investments
Long term investments are stated at cost unless there is a permanent
diminution in the value thereof.
E. Inventories
Stores and spares are valued at cost or under. Stock-in-trade is valued
at the lower of cost and net realizable value. Cost is arrived at on
the Weighted average basis. Appropriate share of labour and other
overheads are included in the case of work in process and finished
goods.
F. Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rates
prevailing at the date of the transaction.
Monetary items denominated in foreign currency are reported using the
closing exchange rates on the date of the balance sheet.
The exchange differences arising on settlement of monetary items or on
reporting these items at the rates different from the rates at which
these were initially recorded / reported in previous financial
statements, are recognised as income / expense in the period in which
they arise.
In case of forward exchange contracts, the premium or discount, arising
at the inception of such contracts, is amortised as income or expense
over the life of the contract and the exchange difference on such
contracts, i.e., difference between the exchange rate at the reporting
/ settlement date and the exchange rate on the date of inception of
contract / the last reporting, is recognised as income / expense for
the period.
G. Revenue recognition
Sales are recognized at the point of dispatch of goods to customers.
Sales are net of discounts and rebates.
H. Employees benefits
i) The contributions to the provident fund for all employees and the
contributions to the superannuation and gratuity funds for managerial
staff are charged to revenue. Provision for gratuity (other than for
managerial staff), determined on an arithmetical basis at the end of
the year is charged to the revenue.
ii) Provision for leave entitlement, determined on an arithmetical
basis at the end of the year, is charged to revenue.
1. Warranty
Provision for warranty is made on the basis of average cost as per past
experience.
J. Taxation
Provision for current taxation is ascertained on the basis of
assessable profits computed in accordance with the provisions of the
Income-tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence &
on virtual certainty of future taxable income, on timing differences,
being the differences between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
K. Impairment of assets
The Company assesses whether there is any indication that any asset may
be impaired at the balance sheet date. If any indication exists, the
Company estimates the recoverable amount and an impairment loss is
recognized in the accounts, to the extent the carrying amount exceeds
the recoverable amount.
L. Intangible Assets
Assets are recognized and disclosed as per Accounting Standard 26
"Intangible Assets" issued by the Institute of Chartered Accountants of
India.
M. Contingent Liability
Contingent liability, if material, is disclosed by way of notes to the
accounts.