Mar 31, 2015
(a) Basis of Preparation of Financial Statements: These financial
statements have been prepared in accordance with the generally accepted
accounting principles in India under the historical cost convention on
accrual basis. The company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014.
All the assets and liabilities have been classified as current or non
current as per the Company's normal operating cycle and other criteria
set out in Schedule III to the Companies Act, 2013. Based on the nature
of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalent, the
Company has ascertained its operating cycle to be 12 months for the
purpose of current/ non current classification of assets and
liabilities.
(b) Use of estimates: The preparation of financial statements requires
estimates and assumptions to be made that affect the reported balances
of assets and liabilities as at the date of the financial statements
and the reported amounts of income and expenses during the year.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable.
(c) Revenue Recognition: Sales are recognized as soon as goods are
dispatched to customers and are net of returns, discounts and sales tax
but includes freight in case of CIF export contracts. Other Income and
Expenditure are recognized and accounted on accrual basis.
(d) Borrowing Costs: Borrowing costs directly attributable to the
acquisition or construction of qualifying assets are capitalised as
part of the cost of the assets, upto the date the asset is ready for
their intended use. All other borrowing costs are recognised in the of
Profit and Loss in the year in which they are incurred.
(e) Inventories : Raw material is valued at weighted average cost,
stock in process at manufacturing cost based on weighted average cost
of raw material and overhead upto relevant stage of completion, stores
and spares at cost and finished goods at lower of cost of production
and net realisable value. Purchased finished goods are valued at cost
and by-products and waste are valued at net realisable value.
(f) Fixed Assets: Fixed Assets are stated at cost, less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition. Exchange differences on
translation of foreign currency loans obtained to purchase fixed assets
are included in the cost of such assets.
(g) Method of Depreciation and Amortisation:
(i) Depreciation on Factory Building, Plant and Machinery, Electrical
Installations and Equipment is provided on a Straight Line Method and
in case of other assets on Written Down Value Method, over the
estimated useful life of assets.
(ii) Effective 1st April, 2014, the Company depreciates its fixed
assets over the useful life in the manner prescribed in Schedule II of
the Act, as against the earlier practice of depreciating at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
(iii) Cost of Software capitalized is amortised over a period of three
years.
(iv) Depreciation on additions to assets or on sale/discardment of
assets is calculated pro rata from the month of such addition or upto
the month of such sale / discardment, as the case may be.
(h) Leases:
As a lessee :
Leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases are charged to the
Statement of Profit and Loss on a straight-line basis over the period
of the lease or other systematic basis more representative of the time
pattern of the user's benefits.
As a lessor:
The Company has leased certain tangible assets and such leases where
the Company has substantially retained all the risks and rewards of
ownership are classified as operating leases. Lease income on such
operating leases are recognized in the Statement of Profit and Loss on
a straight line basis over the lease term or other systematic basis
over the lease term which is more representative of the time pattern in
which benefit derived from the use of the leased asset is diminished.
Initial direct costs are recognized as an expense in the Statement of
Profit and Loss in the period in which they are incurred.
(i) Investments: Investments that are readily realisable and are
intended to be held for not more than one year from the date of
investment are classified as current investments. All other investments
are classified as long-term investments. Current investments are
carried at cost or fair value, whichever is lower. Long-term
investments are carried at cost. However, provision for diminution is
made to recognise a decline, other than temporary, in the value of the
investments,such reduction being determined and made for each
investment individually.
(j) Accounting for taxes: Provision for tax is made and retained in the
accounts considering the taxable income for the relevant years,
assessment orders and decisions of appellate authorities in the
Company's case. Deferred tax 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.
(k) Foreign currency transactions:
(i) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction, except
transactions covered by forward contracts, which are recorded at the
forward contract rates.
(ii) Monetary assets and liabilities, if any, at the year end are
restated at the year end rates and exchange rate gains and losses are
recognised in the Statement of Profit and Loss.
(l) Earnings per Share: Basic earnings per share is computed by
dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share
is computed by dividing the net profit after tax by the weighted
average number of equity shares as above and also the weighted average
number of equity shares upon conversion of all dilutive potential
equity shares.
(m) Employees benefits:
(i) Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and loss account of the year in which
the related service is rendered. These benefits include compensated
absences such as paid annual leave and performance incentives.
(ii) Post employment and other long term employee benefits are
recognized as an expense in the Profit and Loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amount payable determined using acturial
valuation techniques. Acturial gains and losses are recognized in full
in the Profit and Loss account for the period In which they occur.
Liability in respect of gratuity to employees is covered under the
group gratuity scheme with the Life Insurance Corporation of India and
premium paid is debited to the Profit and Loss Account.
(n) Impairment of Assets: An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
loss is charged to the Statement of Profit and Loss in the year in
which an asset is identified as impaired. The impairment loss
recognized in a prior accounting period is reversed if there has been a
change in the estimate of the recoverable amount.
(o) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(p) Segment Reporting: The Company deals in only one segment
i.e."Textiles". However, as per Accounting Standard (AS) 17 on Segment
Reporting the Company has identified and reported "Domestic" and
"International" as primary business segments.
Mar 31, 2014
(a) Basis of Preparation of Financial Statements : The financial
statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles, the
Accounting Standards and the relevant provisions of the Companies Act,
1956.
(b) Use of estimates : The preparation of finanial statements requires
estimates and assumptions to be made that affect the reported balances
of assets and liabilities as at the date of the financial statements
and the reported amounts of income and expenses during the year.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable.
(c) Revenue Recognition : Sales are recognized on despatch to customers
and are net of returns, discounts and sales tax but includes freight in
case of CIF export contracts. Other Income and Expenditure are
recognized and accounted on accrual basis.
(d) Borrowing Costs : Borrowing costs directly attributable to the
acquisition or construction of qualifying assets are capitalised as
part of the cost of the assets, upto the date the asset is ready for
their intended use. All other borowing costs are recognised in the
Statement of Profit and Loss in the year in which they are incurred.
(e) Inventories : Raw material is valued at weighted average cost,
stock in process at manufacturing cost based on weighted average cost
of raw material and overhead upto relevant stage of completion, stores
and spares at cost and finished goods at lower of cost of production
and net realisable value. Purchased finished goods are valued at cost
and by-products and waste are valued at net realisable value.
(f) Fixed Assets : Fixed Assets are stated at cost, less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition. Exchange differences on
translation of foreign currency loans obtained to purchase fixed assets
are included in the cost of such assets.
(g) Leases : In respect of assets taken on lease by the Company, where
the Company has substantially all the risks and rewards of ownership,
are classified as finance lease. Such a lease is capitalised at the
lower of the fair value or the present value of the minimum lease
payments and a liability is recognised for an equivalent amount. Each
lease rental paid is allocated between the liability and the interest
cost so as to obtain a constant periodic rate of interest on the
outstanding liability for each year. Lease arrangements where the risks
and rewards incidental to ownership of an asset substantially vest with
the lessor, are recognised as operating leases. Lease rentals under
operating leases are recognised as revenue expenses.
(h) Depreciation : Depreciation on fixed assets other than freehold
land and capital work-in-progress is being provided on Straight Line
Method at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956.
(i) Investments : Investments that are readily realisable and are
intended to be held for not more than one year from the date of
investment are classified as current investments. All the other
investments are classified as long-term investments. Current
investments are carried at cost or fair value, whichever is lower.
Long-term investments are carried at cost. However, provision for
diminution is made to recognise a decline, other than temperory, in the
value of the investments, such reduction being determined and made for
each investment individually.
(j) Accounting for taxes : Provision for tax is made and retained in
the accounts considering the taxable income for the relevant years,
assessment orders and decisions of appellate authorities in the
Company''s case. Deferred tax 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.
(k) Foreign currency transactions : (i) Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing on the
date of the transaction, except transactions covered by forward
contracts, which are recorded at the forward contract rates. (ii)
Monetary assets and liabilities, if any, at the year end are restated
at the year end rates and exchange rate gains and losses are recognised
in the Statement of Profit and Loss.
(l) Earnings per Share : Basic earnings per share is computed by
dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share
is computed by dividing the net profit after tax by the weighted
average number of equity shares as above and also the weighted average
number of equity shares upon conversion of all dilutive potential
equity shares.
(m) Employees benefits : (i) Short term employee benefits are
recognized as an expense at the undiscounted amount in the Profit and
loss account of the year in which the related service is rendered.
These benefits include compensated absences such as paid annual leave
and performance incentives. (ii) Post employment and other long term
employee benefits are recognized as an expense in the Profit and Loss
account for the year in which the employee has rendered services. The
expense is recognized at the present value of the amount payable
determined using acturial valuation techniques. Acturial gains and
losses are recognized in full in the Profit and Loss account for the
period In which they occur. Liability in respect of gratuity to
employees is covered under the group gratuity scheme with the Life
Insurance Corporation of India and premium paid is debited to the
Profit and Loss Account.
(n) Impairment of Assets : An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
loss is changed to the Profit and Loss Account in the year in which an
asset is identified as impaired. The impairment loss recognized in a
prior accounting period is reversed if there has been a change in the
estimate of the recoverable amount.
(o) Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
(p) Segment Reporting : The Company deals in only one segment
i.e.''Textiles1''. However, as per Accounting Standard (AS)17 on Segment
Reporting the Company has identified and reported "Domestic" and
"International" as primary business segments.
Mar 31, 2013
1. Significant Accounting Policies :
(a) Basis of Preparation of Financial Statements : The financial
statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles, the
Accounting Standards and the relevant provisions of the Companies Act,
1956.
(b) Use of estimates : The preparation of finanial statements requires
estimates and assumptions to be made that affect the reported balances
of assets and liabilities as at the date of the financial statements
and the reported amounts of income and expenses during the year.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable.
(c) Revenue Recognition : Sales are recognized on despatch to customers
and are net of returns, discounts and sales tax. Other Income and
Expenditure are recognized and accounted on accrual basis.
(d) Borrowing Costs : directly attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of the assets, upto the date the asset is ready for their intended use.
All other borowing costs are recognised in the Statement of Profit and
Loss in the year in which they are incurred.
(e) Inventories : Raw material is valued at weighted average cost,
stock in process at manufacturing cost based on weighted average cost
of raw material and overhead upto relevant stage of completion, stores
and spares at cost and finished goods at lower of cost of production
and net realisable value. Purchased finished goods are valued at cost
and by-products and waste are valued at net realisable value.
(f) Fixed Assets : Fixed Assets are stated at cost, less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition. Exchange differences on
translation of foreign currency loans obtained to purchase fixed assets
are included in the cost of such assets.
(g) Leased Assets : Finance Leases - The lower of the fair value of the
assets and present value of minimum lease rentals is capitalised as
fixed assets with corresponding amount shown as lease liability. The
principal component in the lease rental is adjusted against the lease
liability and the interest component is charged to the Profit and Loss
account. Operating Leases - Rentals are expensed with reference to
lease terms and other considerations.
(h) Depreciation : Depreciation of fixed assets is being provided on
Straight Line Method at the rates and in the manner specified in
Schedule XIV of the Companies Act, 1956.
(i) Investments : that are readily realisable and are intended to be
held for not more than one year from the date on which such investments
are made are classified as current investments. All the other
investments are classified as long-term investments. Current
investments are carried at cost or fair value, whichever is lower.
Long-term investments are carried at cost. However, provision for
diminution is made to recognise a decline, other than temperory, in the
value of the investments,such reduction being determined and made for
each investment individually.
(j) Accounting for taxes : Provision for tax is made and retained in
the accounts considering the taxable income for the relevant years,
assessment orders and decisions of appellate authorities in the
Company''s case. Deferred tax 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.
(k) Foreign currency transactions : (if any) are entered as per the
exchange rate prevailing on the date of transaction, Foreign currency
assets, and liabilities covered by forward contracts, (if any), are
stated at the forward contract rates ruling at the year end. Other
exchange differences are dealt with in the Profit and Loss Account.
(l) Earnings per Share : Basic earnings per share is computed by
dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share
is computed by dividing the net profit after tax by the weighted
average number of equity shares as above and also the weighted average
number of equity shares upon conversion of all dilutive potential
equity shares.
(m) Employees benefits : (i) Short term employee benefits are
recognized as an expense at the undiscounted amount in the Profit and
loss account of the year in which the related service is rendered.
These benefits include compensated absences such as paid annual leave
and performance incentives. (ii) Post employment and other long term
employee benefits are recognized as an expense in the Profit and Loss
account for the year in which the employee has rendered services. The
expense is recognized at the present value of the amount payable
determined using acturial valuation techniques. Acturial gains and
losses are recognized in full in the Profit and Loss account for the
period in which they occur. Liability in respect of gratuity to
employees is covered under the group gratuity scheme with the Life
Insurance Corporation of India and premium paid is debited to the
Profit and Loss Account.
(n) Impairment of Assets : An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
loss is chaged to the Profit and Loss Account in the year in which an
asset is identified as impaired. The impairment loss recognized in a
prior accounting period is reversed if there has been a change in the
estimate of the recoverable amount.
(o) Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
(p) Segment Reporting : The Company deals in only one segment
i.e."Textiles". However, as per Accounting Standard (AS)17 on Segment
Reporting the Company has identified and reported "Domestic" and
"International" as primary business segments.
Mar 31, 2012
(a) Basis of Preparation of Financial Statements : The financial
statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles, the
Accounting Standards and the relevant provisions of the Companies Act,
1956.
(b) Use of estimates : The preparation of financial statements requires
estimates and assumptions to be made that affect the reported balances
of assets and liabilities as at the date of the financial statements
and the reported amounts of income and expenses during the year.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable.
(c) Revenue Recognition : Sales are recognized on despatch to customers
and are net of returns, discounts and sales tax. Other Income and
Expenditure are recognized and accounted on accrual basis.
(d) Inventories : Raw material is valued at weighted average cost,
stock in process at manufacturing cost based on weighted average cost
of raw material and overhead upto relevant stage of completion, stores
and spares at cost and finished goods at lower of cost of production
and net realisable value. Purchased finished goods are valued at cost
and by-products and waste are valued at net realisable value.
(e) Fixed Assets : Fixed Assets are stated at cost, less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition. Exchange differences on
translation of foreign currency loans obtained to purchase fixed assets
are included in the cost of such assets.
(f) Leased Assets : Finance Leases- The lower of the fair value of the
assets and present value of minimum lease rentals is capitalised as
fixed assets with corresponding amount shown as lease liability. The
principal component in the lease rental is adjusted against the lease
liability and the interest component is charged to the Profit and Loss
account.
(g) Depreciation : Depreciation of fixed assets is being provided on
Straight Line Method at the rates and in the manner specified in
Schedule XIV of the Companies Act, 1956.
(h) Accounting for taxes : Provision for tax is made and retained in
the accounts considering the taxable income for the relevant years,
assessment orders and decisions of appellate authorities in the
Company's case. Deferred tax 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.
(i) Foreign currency transactions (if any) are entered as per the
exchange rate prevailing on the date of transaction, Foreign currency
assets, and liabilities covered by forward contracts, (if any), are
stated at the forward contract rates ruling at the year end. Other
exchange differences are dealt with in the Profit and Loss Account.
(j) Earnings per Share : Basic earnings per share is computed by
dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share
is computed by dividing the net profit after tax by the weighted
average number of equity shares as above and also the weighted average
number of equity shares upon conversion of all dilutive potential
equity shares.
(k) Employees benefits : (i) Short term employee benefits are
recognized as an expense at the undiscounted amount in the Profit and
loss account of the year in which the related service is rendered.
These benefits include compensated absences such as paid annual leave
and performance incentives. (ii) Post employment and other long term
employee benefits are recognized as an expense in the Profit and Loss
account for the year in which the employee has rendered services. The
expense is recognized at the present value of the amount payable
determined using actuarial valuation techniques. Actuarial gains and
losses are recognized in full in the Profit and Loss account for the
period in which they occur. Liability in respect of gratuity to
employees is covered under the group gratuity scheme with the Life
Insurance Corporation of India and premium paid is debited to the
Profit and Loss Account.
(l) Impairment of Assets : An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
loss is charged to the Profit and Loss Account in the year in which an
asset is identified as impaired. The impairment loss recognized in a
prior accounting period is reversed if there has been a change in the
estimate of the recoverable amount.
(m) Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2011
(a) Basis of Preparation of Financial Statements : The financial
statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles, the
Accounting Standards and the relevant provisions of the Companies Act,
1956.
(b) Use of estimates : The preparation of financial statements requires
estimates and assumptions to be made that affect the reported balances
of assets and liabilities as at the date of the financial statements
and the reported amounts of income and expenses during the year.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable.
(c) Revenue Recognition : Sales are recognized on despatch to customers
and are net of returns, discount and sales tax. Other Income and
Expenditure are recognized and accounted on accrual basis.
(d) Inventories : Raw material is valued at weighted average cost,
Stock in process at manufacturing cost based on weighted average cost
of raw material and overhead upto relevant stage of completion, stores
and spares at cost and finished goods at lower of cost of production
and net realisable value. Purchased finished goods are valued at cost
and by-products and waste are valued at net realisable value.
(e) Fixed Assets : Fixed Assets are stated at cost, less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition. Exchange differences on
translation of foreign currency loans obtained to purchase fixed assets
are included in the cost of such assets.
(f) Depreciation : Depreciation on fixed assets is being provided on
Straight Line Method at the rates and in the manner specified in
Schedule XIV of the Companies Act, 1956.
(g) Accounting for taxes : Provision for tax is made and retained in
the accounts considering the taxable income for the relevant year,
assessment orders and decisions of appellate authorities in the
Company's case. Deferred tax 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.
(h) Foreign currency transactions (if any) are entered as per the
exchange rate prevailing on the date of transaction. Foreign currency
assets, and liabilities covered by forward contracts,(if any), are
stated at the forward contract rates ruling at the year end. Other
exchange differences are dealt with in the Profit and Loss Account.
(i) Employee benefits : (i) Short term employee benefits are recognized
as an expense at the undiscounted amount in the Profit and loss account
of the year in which the related service is rendered. These benefits
include compensated absences such as paid annual leave and performance
incentives. (ii) Post employment and other long term employee benefits
are recognized as an expense in the Profit and Loss account for the
year in which the employee has rendered services. The expense is
recognized at the present value of the amount payable determined using
acturial valuation techniques. Acturial gains and losses are recognized
in full in the Profit and Loss account for the period in which they
occur. Liability in respect of gratuity to employees is covered under
the group gratuity scheme with the Life Insurance Corporation of India
and premium paid is debited to the Profit and Loss Account.
(j) Impairment of Assets : An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
loss is charged to the Profit and Loss Account in the year in which an
asset is identified as impaired. The impairment loss recognized in a
prior accounting period is reversed if there has been a change in the
estimate of the recoverable amount.
Mar 31, 2010
(a) Basis of Preparation of Financial Statements : The financial
statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles, the
Accounting Standards and the relevant provisions of the Companies Act,
1956.
(b) Use of estimates : The preparation of financial statements requires
estimates and assumptions to be made that affect the reported balances
of assets and liabilities as at the date of the financial statements
and the reported amounts of income and expenses during the year.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable.
(c) Revenue Recognition : Sales are recognized on despatch to customers
and are net of returns, discount and sales tax. Other Income and
Expenditure are recognized and accounted on accrual basis.
(d) Inventories : Raw material is valued at weighted average cost,
Stock in process at manufacturing cost based on weighted average cost
of raw material and overhead upto relevant stage of completion, stores
and spares at cost and finished goods at lower of cost of production
and net realisable value. Purchased finished goods are valued at cost
and by-products and waste are valued at net realisable value.
(e) Fixed Assets : Fixed Assets are stated at cost, less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition. Exchange differences on
translation of foreign currency loans obtained to purchase fixed assets
are included in the cost of such assets.
(f) Depreciation : Depreciation on fixed assets is being provided on
Straight Line Method at the rates and in the manner specified in
Schedule XIV of the Companies Act, 1956.
(g) Accounting for taxes : Provision for tax is made and retained in
the accounts considering the taxable income for the relevant year,
assessment orders and decisions of appellate authorities in the
Companys case. Deferred tax 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.
(h) Foreign currency transactions (if any) are entered as per the
exchange rate prevailing on the date of transaction. Foreign currency
assets, and liabilities covered by forward contracts,(if any), are
stated at the forward contract rates ruling at the year end. Other
exchange differences are dealt with in the Profit and Loss Account.
(i) Employee benefits : (i) Short term employee benefits are recognized
as an expense at the undiscounted amount in the Profit and loss account
of the year in which the related service is rendered. These benefits
include compensated absences such as paid annual leave and performance
incentives. (ii) Post employment and other long term employee benefits
are recognized as an expense in the Profit and Loss account for the
year in which the employee has rendered services. The expense is
recognized at the present value of the amount payable determined using
acturial valuation techniques. Acturial gains and losses are recognized
in full in the Profit and Loss account for the period in which they
occur. Liability in respect of gratuity to employees is covered under
the group gratuity scheme with the Life Insurance Corporation of India
and premium paid is debited to the Profit and Loss Account.
(j) Impairment of Assets : An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
loss is charged to the Profit and Loss Account in the year in which an
asset is identified as impaired. The impairment loss recognized in a
prior accounting period is reversed if there has been a change in the
estimate of the recoverable amount.