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Accounting Policies of STL Global Ltd. Company

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

These Financial statements have been prepared to comply with the Generally Accepted Accounting principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention.

1.2 Use of estimates

The preparation of financial statement in conformity with Indian GAAP requires judgements,estimates and assumptions to be made that affects the reported amount of assets and liabilities, disclosure of contingent 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 recognised in the period in which the results are known/materialised.

1.3 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses ,if any. Cost of inventories comprises of cost of purchase,cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and conditions.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation on fixed assets is provided to the extent of Depreciable amount on the Written Down Value method (W.D.V). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

1.7 Revenue recognition

Revenue from operation includes Sales of goods and services and adjusted for Sale returns and trade discounts and exclude sales tax and value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.8 Fixed Assets

Tangible Assets are stated at cost net of recoverable taxes,trade discounts and include amount added on revaluation , less accumulated depreciation and impairment loss, if any. The Cost of tangible Assets comprises its purchase price, levies and freight and any cost directly attributable to bringing the assets to its working condition for the intended use. Subsequent expenditures related to an item of tangible Assets are added to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performance Intangible Assets are stated at cost of acquisition net of recoverable taxes,less accumulated depreciation and impairment loss, if any. The Cost of intangible Assets comprises purchase price and any cost directly attributable to bringing the assets to its working condition for the intended use.

1.9 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction. Realised gains and losses on foreign exchange transactions during the year are recognized in the Profit & loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognised in the Profit & loss account.

1.10 Investments

Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.11 Employee benefits

The Company's contribution to provident fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made. Gratuity liability is defined benefit obligations and is provided for on the basis of an accrual valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on accrual valuation at the year end.

Accrual gain/losses are immediately taken to profit and loss account and are not deferred.

The Company's contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.12 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.13 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

1.14 Impairment of assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss statement in the year in which an asset is identified as impaired. The Impairment loss recognised in prior accounting period is reversed if there have been a change in the estimate of recoverable amount.

1.15 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.16 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortised over a period of ten years.

1.17 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal. No Provision is made for a liability which is contingent in nature but if material is disclosed in the financial statement by way of notes.


Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements

The Financial statements have been prepared to comply with the Accounting Standards notified by Companies ( Accounting Standards) Rules, 2006 (as amended) and the relevent provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year. The financial statements are presented in the general format specified in Revised Schedule VI to the Companies Act, 1956.

1.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

1.3 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Work-in-progress and finished goods include appropriate proportion of overheads.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation on fixed assets has been provided on the written down value method (W.D.V) on pro rata basis at the rate and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

Sales are recognised, net of returns and trade discounts and exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.9 Tangible fixed assets

Fixed assets are stated at their original cost and net of CENVAT, VAT and Capital subsidy wherever availed less accumulated depreciation. Cost of fixed assets comprises purchase value, duties, levies and freight and any directly attributable cost of bringing the assets to its working condition for the intended use.

Notes forming part of the financial statements

1.10 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction

Realised gains and losses on foreign exchange transactions during the year are recognized in the Profit & loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognised in the Profit & loss account.

1.11 Government grants, subsidies and export incentives

Government grants and subsidies like capital subsidy on acquiring Capital Assets are presented by deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for on the basis of exports sales affected during the period.

Government grants and subsidies like TUFS are recognised by deducting them from the costs of interest for which they are intended to compensate.

1.12 Investments

Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.13 Employee benefits

The Company''s contribution to provident fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Gartuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on actuarial valuation at the year end.

Actuarial gain/losses are immediately taken to profit and loss account and are not deferred.

The Company''s contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.14 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.15 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised

for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.16 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.18 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortised over a period of ten years.

1.19 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal

No Provision is made for a liability which is contingent in nature but if material , the same is disclosed by way of notes.


Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

The Financial statements have been prepared to comply with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year. The financial statements are presented in the general format specified in Revised Schedule VI to the Companies Act, 1956.

1.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialized.

1.3 Inventories

Inventories are valued at the lower of cost and the net realizable value after providing for obsolescence and other losses, where considered necessary. Work-in-progress and finished goods include appropriate proportion of overheads.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortization

Depreciation on fixed assets has been provided on the written down value method (W.D.V) on pro rata basis at the rate and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

Sales are recognized, net of returns and trade discounts and exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.9 Tangible fixed assets

Fixed assets are stated at their original cost and net of CENVAT, VAT and Capital subsidy wherever availed less accumulated depreciation. Cost of fixed assets comprises purchase value,

Notes forming part of the financial statements

duties, levies and freight and any directly attributable cost of bringing the assets to its working condition for the intended use. Capital work in progress is stated at cost and it includes advances given for capital items.

1.10 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction

Realized gains and losses on foreign exchange transactions during the year are recognized in the Profit & Loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognized in the Profit & loss account.

1.11 Government grants, subsidies and export incentives

Government grants and subsidies like capital subsidy on acquiring Capital Assets are presented by deducting them from the carrying value of the assets. The grant is recognized as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for on the basis of exports sales affected during the period.

Government grants and subsidies like TUFS are recognized by deducting them from the costs of interest for which they are intended to compensate.

1.12 Investments

Investment that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.13 Employee benefits

The Company''s contribution to provident fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Gratuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on actuarial valuation at the year end.

Actuarial gain/losses are immediately taken to profit and loss account and are not deferred.

The Company''s contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.14 Borrowing costs

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 assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.15 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such setoff. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

1.16 Impairment of assets

The carrying values of assets/cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.18 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortized over a period of ten years.

1.19 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal No Provision is made for a liability which is contingent in nature but if material, the same is disclosed by way of Notes.


Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The Financial statements have been prepared to comply with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year. The financial statements are presented in the general format specified in Revised Schedule VI to the Companies Act, 1956.

1.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

1.3 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Work-in-progress and finished goods include appropriate proportion of overheads.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation on fixed assets has been provided on the written down value method (W.D.V) on pro rata basis at the rate and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

Sales are recognised, net of returns and trade discounts and exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.9 Tangible fixed assets

Fixed assets are stated at their original cost and net of CENVAT, VAT and Capital subsidy wherever availed less accumulated depreciation. Cost of fixed assets comprises purchase value, duties, levies and freight and any directly attributable cost of bringing the assets to its working condition for the intended use. Capital work in progress is stated at cost and it includes advances given for capital items.

1.10 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction Realised gains and losses on foreign exchange transactions during the year are recognized in the Profit & Loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognised in the Profit & loss account.

1.11 Government grants, subsidies and export incentives

Government grants and subsidies like capital subsidy on acquiring Capital Assets are presented by deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for on the basis of exports sales affected during the period.

Government grants and subsidies like TUFS are recognised by deducting them from the costs of interest for which they are intended to compensate.

1.12 Investments

Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.13 Employee benefits

The Company's contribution to provident fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Gratuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on actuarial valuation at the year end.

Actuarial gain/losses are immediately taken to profit and loss account and are not deferred.

The Company's contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.14 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.15 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.16 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.18 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortised over a period of ten years.

1.19 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal No Provision is made for a liability which is contingent in nature but if material , the same is disclosed by way of notes.


Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The Financial Statement are prepared under the historical cost conversiton , unless stated otherwise, on a going concern, and in accordance with the generally accepted accounting standards issued by the Insitute of Chartered Accounts of India and the Provision of the Companies Act, 1956 as adapted consistently by the Company, to the extent applicable.

b) The Company generally follows mercantile system of accounting and recognize significant ites of income and expenditure on accrual basis. 2. 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 financial statements and the reported amount of revenues and expenses during the reporting period. The Difference between the actual results and estimates are recognized in the period in which the result are known/ materialized.

3. FIXEDASSETS

a)Fixed assets are stated at their original cost net of Modvat/Cenvat/VAT/CApital subsidy wherever availed, lees accumulated depreciation. Cost of fixed assets comprises purchase price, duties, levies. Freight, and any direct attributable cost of bringing the assets to its working condition for the intended use.

(b) Capital work in progress is stated at cost and includes advances for capital items.

4. DEPRECIATION Depreciation on fixed Assets has been provided on straight line method (SLM) on pro rata basis at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on Plant & machinery, depreciation has bneen provided on written down value method. Depreciation on fixed assets acquired from amalgamating company has been provided on Written down value method.

5. IMPAIRMENT OF ASSETS Carrying amount of cash generating units/ assets is reviwed for impairment .Impairment if any is recognized where the carrying amount exceeds the recoverable amount being the higher of net realizable price and value in use.

6. INVESTMENTS

Investments are valued at Cost.

7. INVENTORY

(a) Inventory of Raw material is valued at weighted average cost or net realizable value which ever is lower; Cost being net of excise duty.

b)Inventory of finished goods is valued at the lower of cost or estimated relizable value. For this purpose, cost is being reckoned as full cost (exclusive of interest and administrative overheads) net of excise duty and inludes excise duty in the finished goos. where applicable.

c) Closing stock of work in progress is valued at the lower of cost or estimated realizable value; for this pu8rpose cost does no include excise duty.

(d) Inventory of store & spares is value datcost,exclusive of excise duty.

(e) Scrap is valued at net realizable value.

8. BORROWING COSTS Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that necessaily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

9. SALES

Sales are in clusive of Excise duty and net of Sale tax and trade discounts. wherever applicable.

10. PURCHASE OF RAW MATERIAL

Cost of Purchase less modvat/ cenvat/ Vat Credits. wherever consituted purchase price and includes duties, Freight in ward and other cost directly attributable to such purchase in the year in which they are accounted, wherther the expenditure is immediate or deferred.

11. FOREIGN EXCHANGE TRANSACTIONS

(a) Transactions in the foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction.

b) Any Income or expenses on account of foreign exchange difference either on settlement or on transaction, is being recognized in profit& loss account except in cases where they relate to the acquisition of fixed assets. In which cases are adjusted to the carrying cost of such assets.

12. EXPORT INCENTIVES

Export incentives are accounted for on the basis of exports sales affected during the period.

13. EMPLOYEE BENEFITS

a) Short term employee benefits are charged off at the un discounted amount in the year in which the related service is rendered.

b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The ammount charged off is recognized at the present value of the amounts payable determined using actuarial term benefits are charged to profit and loss Account.

14. DERIVATIVE TRANSACTIONS

In respect of Derivative Contracts, Premium paid, gains/ losses on settlement are recognized and Charged to Profit & Loss Account

15. MODVAT/CENVAT/VAT

Modvat/ cenvat/VAT on capital assets is credited to the assets/capital work in progress account. Modvat/ cenvat/ VAT on raw materials and other material are deducted from the cost of such materials.

16. PROPOSED DIVIDEND

No Dividend has been proposed to declare by the Board.

17. CONTINGENT LIABILITIES

a) Contingent liability in respect of show cause notices received only when they are converted into demands. Payments in respect of such demands. if any are shown as advances.

(b) Contingent liability under various fiscal laws includes those in respect of which the company/department is in appeal.

(c) Contingent liabilities are disclosed by way of notes.

18. TAXATION

Provision for current income taxis made after taking credit forallowance and exemptions.

In accordance with the Accounting standard 22- Accounting for Taxes on income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing difference between the book & Tax profit is accounted for using the tax rates and the tax laws taht have been enacted or substantially enacted as of the balance sheet date. Virtual certainty that the assets can be realized in future.

19. MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure included amalgamation Expenses and are amortized over a period of 10 Years.

 
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