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Accounting Policies of Scan Projects Ltd. Company

Mar 31, 2015

A) The Company has forfeited 2138400 Equity Shares (against which the call money amounting to Rs, 10126500.00 were in arrears) in the Board of Directors meeting held on 24/03/2001, in terms of Articles of Association of the Company, in consequence of having failed to pay the call money due thereon on 12/03/2001.

Note: In accordance with the Accounting Standard 22nd Accounting for Taxes on Income" the deferred tax liabilities (net) Rs, 132956.00 has been adjusted by credited to Statement of Profit and Loss during the current year and the total accumulated deferred tax assets (net) as on 31st March 2015 amounts to Rs, 219228.00 [Previous year Rs, 70541.00]

Notes:

a) Provision for taxation on current profit: The Company has made the provision for current income tax liability based on the assessable profit as computed in accordance with the Income Tax Act, 1961.

b) In accordance with the Accounting Standard 22" Accounting for Taxes on Income" the deferred tax liabilities (net) Rs, 132956.00 has been adjusted by credited to Statement of Profit and Loss during the current year and the total accumulated deferred tax assets (net) as on 31st March 2015 amounts to Rs, 219228.00 [Previous year Rs, 70541.00]

a) Basis of Preparation of Financial Statement

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 2013.

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Schedule III to the Companies Act, 2013.

The accounts of Foreign Branch/Permanent Establishment for execution of Job contracted have been prepared in compliance with the local laws and applicable accounting standards and the same are duly incorporated in the Consolidated financial Statement of the company as if the transactions of the foreign Branch operation have been those of the Company itself. In cases where the financial year of foreign operation of Branch/Permanent Establishment is different from that of the Company, the financial statements of the said foreign branch operations have been drawn up so as to be aligned with the financial year of the company.

b) Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 ("the Act"). The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 "Cash Flow Statement". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

c) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

d) Tangible Fixed Assets:

i) Fixed Assets have been stated at historical cost less accumulated depreciation and cumulative impairment. Expenses directly related to the construction or acquisition of the fixed assets have been capitalized and added to the particular assets. Pre-operative expenses incurred till the date of capitalization have been apportioned on pro- rata basis. Items of fixed assets not capitalized and other pre-operative expenses to the extent not apportioned are shown under the head "Capital work in progress".

ii) Depreciation/Amortization: Depreciation up to March 31, 2014 was provided on W.D.V. method on prorate basis at the rate prescribed in schedule XIV to the Companies Act, 1956.

In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation/amortization is charged on written down value method so as to write off the cost of the assets over the useful life and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life of assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation in respect of addition/deduction to fixed assets during the year has been charged on pro-rata basis.

Due to transition from schedule XIV to Schedule II, depreciation on assets existing as on March 31, 2014, which useful life has already been exhausted but depreciation already charged was less than 95% of original cost of the assets than difference of 95% of original cost and depreciation charged till last year transferred to retained earnings and if depreciation charged was more than 95% of original cost of the assets than same has been considered as remaining WDV as on first day of the current financial year.

e) Impairment of Assets

At each Balance Sheet date, the management reviews the carrying amounts of its assets to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the assets and from its disposal and discounted to their present value using a pre-tax discounted rate that reflects the current market assessments of time value of money and risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the Statement of Profit and loss.

f) Foreign currency transactions and foreign operations

i) The reporting currency of the Company is Indian rupee.

ii) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items, carried at historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

iii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss, except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

iv) In respect of Branch/Permanent Establishment for execution of Job contracted, which are integral foreign operations, the same are translated as if the transactions of the foreign operation have been those of the Company itself. For non-integral foreign operation, the assets and liabilities are translated at the rates prevailing at the end of the year. Income and expenses items of the non-integral foreign operation are translated at the average rate prevailing during the year. Any exchange difference arising on consolidation is recognized in the "Foreign Currency Translation Reserve" until the disposal of the operations.

g) Revenue Recognition

i) Revenue from the sale of traded goods i.e. fabricating material, equipment parts, electrical material/components and other items etc. are recognized upon delivery, which is when title passes to the customer.

ii) Revenue from erection, commissioning, supervision, project drawing and designing services/related project is recognized as follows:

a) Cost plus contracts: Contract revenue is determined by adding the aggregate cost plus proportionate margin as agreed with the customer.

b) Fixed price contract revenue is recognized by adding the aggregate cost and proportionate margin using the percentage completion method. Percentage of completion is determined as a proportion of cost incurred-to- date to the total estimated contract cost.

c) Full provision is made for any loss in the period in which it is foreseen.

d) Services revenue is recognized on time proportion basis and excludes service tax.

iii) Revenue from maintenance contracts are recognized pro-rata over the period of contract.

iv) Interest income is accounted at applicable rates on respective investment. v) Other items of income are accounted as and when the right to receive arises.

h) Retirement Benefits

(i) The Company's contribution to the recognized Provident/Family Pension Fund and Employees State Insurance Fund (Defined Contribution Scheme) schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of Profit and Loss of the year.

(ii) Gratuity Fund: The retirement gratuity benefit to employees is accounted for on accruing basis for the employees', based on their last drawn salary, completed years of services, instead of ascertaining actuarial impact.

(iii) Leave encashment benefit is considered and provided, based on actual as at the end of the financial year.

i) Valuation of Inventories

Inventories are valued as under: -

-Stores, spares, loose tools and other items At cost or net realizable value whichever is less.

-Finished/Traded goods At cost or net realizable value whichever is less.

Project and erection/commissioning related work-in-progress is valued at cost till such time the outcome of the job cannot be ascertained reliably and at realizable value thereafter.

j) Government Grants/Subsidy

The Government grants relating to particular fixed assets are presented by deducting them from the gross value of fixed assets. The grant is recognized as income over the life of depreciable asset by way of a reduced depreciation charge. In respect of Government grants in the nature of Project Subsidy (capital investment state subsidy) are credited to capital reserves.

k) Excise and Other Duties

Excise duty is accounted on finished goods on clearance thereof. CENVAT benefit is accounted for by reducing the purchase cost of material/fixed assets

l) Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

m) Taxes on income

(i) Provision for current tax is made on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act, 1961.

(ii) Deferred tax expenses or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(iii) In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

(iv) Minimum alternative tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is recognized as an assets in the balance sheet when it is probable that the future economic benefit associated with it will flow to the company and the asset can be measured reliably.

n) Miscellaneous Expenditure

i) Preliminary expenses are being written off over a period of 10 years.

ii) Share issue expenditure is being amortized from the year of commercial production over a period of 10 years.

o) Project Development Expenses pending Adjustment

Expenditure incurred during the developmental and preliminary stages of the Company's new expansion/diversification project are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in which it is so abandoned.

p) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

q) Cash and Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.

r) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted from the effect of transactions of noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities is segregated.

s) Extraordinary and exceptional items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosures of such events/transactions are made in the financial statements. Similarly, any external event beyond the control of the Company significantly impacting income or expense is also treated as extraordinary item and disclosed as such.

On certain occasions, the size, type or incidence of an item of income or expenses, pertaining to the ordinary activities of the Company is such that its disclosure improves an understanding of the performance of the Company. Such income or expenses is classified as an exceptional item and accordingly disclosed in the notes to accounts.

t) Lease Accounting:

As a Less or: The Company has given assets on an operating lease basis. Lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

As a Lessee: Operating lease payments are recognized as expenditure in the Statement of Profit and Loss as per the terms of the respective lease agreements.

u) Earnings Per Share

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

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


Mar 31, 2014

A) Basis of Preparation of Financial Statement

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (which continues to be applicable in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and other relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956 The accounts of Foreign Branch/Permanent Establishment for execution of Job contracted have been prepared in compliance with the local laws and applicable accounting standards and the same are duly incorporated in the Consolidated financial Statement of the company as if the transactions of the foreign Branch operation have been those of the Company itself. In cases where the financial year of foreign operation of Branch/Permanent Establishment is different from that of the Company, the financial statements of the said foreign branch operations have been drawn up so as to be aligned with the financial year of the company.

b) Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule VI to the Companies Act, 1956 ("the Act"). The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 "Cash Flow Statement". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule VI to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

c) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

d) Tangible Fixed Assets:

i) Fixed Assets have been stated at historical cost less accumulated depreciation and cumulative impairment. Expenses directly related to the construction or acquisition of the fixed assets have been capitalized and added to the particular assets. Pre-operative expenses incurred till the date of capitalization have been apportioned on pro-rata basis. Items of fixed assets not capitalized and other pre-operative expenses to the extent not apportioned are shown under the head "Capital work in progress".

ii) The depreciation has been provided on fixed assets on W.D.V. basis at the rates specified in Schedule XIV of the Companies Act, 1956 as revised vide notification no. GSR No. 756 (E) dated 16-12-1993 issued by the Department of Company Affairs. Depreciation in respect of addition/deduction to fixed assets during the year has been charged on pro-rata basis.

e) Impairment of Assets

At each Balance Sheet date, the management reviews the carrying amounts of its assets to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the assets and from its disposal and discounted to their present value using a pre-tax discounted rate that reflects the current market assessments of time value of money and risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the Statement of Profit and loss.

f) Foreign currency transactions and foreign operations

i) The reporting currency of the Company is Indian rupee.

ii) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the dosing rate, Non-monetary items, carried at historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction,

iii) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss, except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

iv) In respect of Branch/Permanent Establishment for execution of Job contracted, which are integral foreign operations, the same are translated as if the transactions of the foreign operation have been those of the Company itself. For non-integral foreign operation, the assets and liabilities are translated at the rates prevailing at the end of the year. Income and expenses items of the non-integral foreign operation are translated at the average rate prevailing during the year. Any exchange difference arising on consolidation is recognized in the "Foreign Currency Translation Reserve" until the disposal of the operations.

g) Revenue Recognition

i) Revenue from the sale of traded goods i.e. fabricating material, equipment parts, electrical material/components and other items etc. are recognized upon delivery, which is when title passes to the customer.

ii) Revenue from erection, commissioning, supervision, project drawing and designing services/related project is recognized as follows:

a) Cost plus contracts: Contract revenue is determined by adding the aggregate cost plus proportionate margin as agreed with the customer.

b) Fixed price contract revenue is recognized by adding the aggregate cost and proportionate margin using the percentage completion method. Percentage of completion is determined as a proportion of cost incurred-to-date to the total estimated contract cost.

c) Full provision is made for any loss in the period in which it is foreseen.

d) Services revenue is recognized on time proportion basis and excludes service tax.

iii) Revenue from maintenance contracts are recognized pro-rata over the period of contract.

iv) Interest income is accounted at applicable rates on respective investment,

v) Other items of income are accounted as and when the right to receive arises.

h) Retirement Benefits

(i) Retirement benefits in the form of Provident Fund and Family Pension Fund schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of Profit and Loss of the year,

(ii) The retirement gratuity benefits to employees under the Payment of Gratuity Act, 1972 has been accounted for on accruing basis.

(iii) Leave encashment benefit is considered and provided, based on actual as at the end of the financial year.

i) Valuation of Inventories

Inventories are valued as under: -

*Stores, spares, loose tools At cost or net realizable value and other items and other items

*finished/Traded goods At cost or net realizable value whichever is less.

Project and erection/commissioning related work-in-progress is valued at cost till such time the outcome of the job cannot be ascertained reliably and at realizable value thereafter.

j) Government Grants/Subsidv

The Government grants relating to particular fixed assets are presented by deducting them from the gross value of fixed assets. The grant is recognized as income over the life of depreciable asset by way of a reduced depreciation charge. In respect of Government grants in the nature of Project Subsidy (capital investment state subsidy) are credited to capital reserves.

k) Excise and Other Duties

Excise duty is accounted on finished goods on clearance thereof. CENVAT benefit is accounted for by reducing the purchase cost of material/fixed assets

l) Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

m) Taxes on income

(i) Provision for current tax is made on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act, 1961.

(ii) Deferred tax expenses or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(iii) In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets. In other situations, deferred tax assets are recognized only to (he extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

(iv) Minimum alternative tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is recognized as an assets in the balance sheet when it is probable that the future economic benefit associated with it will flow to the company and the asset can be measured reliably.

n) Miscellaneous Expenditure

i) Preliminary expenses are being written off over a period of 10 years.

ii) Share issue expenditure is being amortized from the year of commercial production over a period of 10 years.

o) Project Development Expenses pending Adjustment

Expenditure incurred during the developmental and preliminary stages of the Company''s new expansion/diversification project are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in which it is so abandoned.

p) Provisions. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

q) Cash and Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.

r) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted from the effect of transactions of non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing, cash flows. The cash flow from operating, investing and financing activities is segregated,

s) Extraordinary and exceptional items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosures of such evcnts/transactions are made in the financial statements. Similarly, any external event beyond the control of the Company significantly impacting income or expense is also treated as extraordinary item and disclosed as such.

On certain occasions, the size, type or incidence of an item of income or expenses, pertaining to the ordinary activities of the Company is such that its disclosure improves an understanding of the performance of the Company. Such income or expenses is classified as an exceptional item and accordingly disclosed in the notes to accounts.

t) Lease Accounting;

As a Lessor: The Company has given assets on an operating lease basis. Lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

As a Lessee; Operating lease payments are recognized as expenditure in the Statement of Profit and Loss as per the terms of the respective lease agreements.

u) Earning Per Share

Basic earning per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by weighted average number of equity shares outstanding during (he year.For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighed average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.


Mar 31, 2010

A) FIXED ASSETS:

i) Fixed Assets have been stated at historical cost less depreciation. Expenses directly related to the construction or acquisition of the fixed assets have been capitalized and added to the particulars assets. pre-operative expenses. Incurred till the date of capitalization have been apportioned on pro-rata basis. Items of fixed assets not capitalized and other pre-operative expenses to the extent not apportioned are shown under the head " Capital Work in Progress".

ii) The depreciation has been provided on fixed assets on W.D.V. basis at the rates specified in schedule XIV of the Companies Act, 1956 as revised vide notification no GSR No.756 (E) date 16-12-1993 issued by the Department of Company Affairs. Depreciation in respect of addition / deduction to fixed assets during the year has been charged on pro-rata basis.

B) GENERAL

i) The accounts of the company are prepared on historical cost basis and on the accounting principles of going concern concept.

ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

C) REVENUE RECOGNITION

The expenses and income considered payable and receivable respectively are accounted for on accrual basis.

D) VALUATION OF INVENTORIES

Inventories are valued as under:-

- Raw Material and packing material At Cost

- Stock-in-process i.e. Semi-finished goods (clinker) At cost or net realizable value whichever is less

- Stores and spares At Cost

- Finished goods At Cost or net realizable value whichever is less.

Note: Cost for the purpose of valuation of finished goods and stock in process is determined by considering material, labour and other related overheads.

E) MISCELLANROUS EXPENDITURE

i) Preliminary expenses are being written off over a period of 10 years.

ii) Share issue expenditure is being amortized from the year of commercial production over a period of 10 years.

F) EXCISE AND OTHER DUTIES

Excise duty is accounted on finished goods on clearance thereof CENVAT benefit is accounted for by reducing the purchase cost of material / fixed assets.

G) SALES

a) The company recognizes sales of goods as the point of removal from factory / warehouses for delivery to the customers.

b) Sales comprises amount invoiced for goods sold inclusive of Excise duty but net of sales Tax and returns / rejections (if any)

H) GOVERNMENT GRANTS / SUBSIDY

The grants relating to particular fixed assets are shown as deduction from the gross value of fixed assets and those of the nature of project subsidy (Capital investment state subsidy) are credited to capital reserves.

I) ACCOUNTING STANDARDS

The Accounts for the year ended 31-03-2010 have been prepared in compliance with the applicable accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

J) CONTINGENT LIABILITIES

Un-provided contingent liabilities are disclosed in the accounts by way of notes, giving nature and quantum of such liability.

K) RETIREMENT BENEFIT

(i) Retirement benefits in the form of provident Fund and Family pension Fund schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the profit and Loss Account of the year.

(ii) Presently, no employee falls under the category in which the gratuity liability is applicable.

L) PROJECT DEVELOPMENT EXPENSES PENDING ADJUSTMENT

Expenditure incurred during the development and preliminary stages of the company's new expansion / diversification project are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off thought the natural heads of expenses in which it is so abandoned.

M) TAXATION

(i) Provision is made for current income tax, liability which is likely to arise as the results for the period at the current rate of tax in accordance with the provisions of the Income Tax Act, 1961.

(ii) Provisions is made for taxation deferred as a result of material timing difference between the incidence of income and expenditure for taxation and accounts purposes, using the liability / assets method, only to the extent that in the opinion of the directors ,there is a reasonable probability that a liability / asset will crystallize in the near future.

 
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