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Accounting Policies of Supreme Industries Ltd. Company

Jun 30, 2015

A. Basis of Accounting

a) The financial statements are prepared in accordance with generally accepted accounting principles in India under the historical cost convention on an accrual basis Pursuant to section 133 of the Companies Act, 2013 ('The Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

b) The preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known/ materialized.

c) All the assets and liabilities have been classified as current or non-current as per the company's normal operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.

B. Revenue Recognition

a) Sales are recognized at the time of transfer of ownership and significant risk of goods to the customer. Service income is recognized when the service is rendered. Sales & Services are accounted for net of Excise Duty, VAT, Service tax, returns, claims & discounts etc.

b) Sales exclude recovery of charges separately collected from customers like transport, packing etc.

c) The Company adopts the Mercantile method in the preparation of the accounts. Claims / Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

d) Government Benefits on account of export sales is estimated and accounted for in the year of export and when there is no significant uncertainty regarding the ultimate collections of export proceeds as applicable.

e) Industrial promotion subsidy / government grants are recognized on accrual basis on compliance of stipulated conditions as notified under the respective scheme.

f) Other Income -

Dividend income on investments is recognised when the right to receive dividend is established.

Interest is recognized on a time proportionate basis taking into account the amounts invested and the rates of interest.

C. Fixed Assets

a) Fixed assets are stated at cost of acquisition or construction (net of CENVAT Credit/ Value Added Tax, subsidy or grants on account of assets) less accumulated depreciation and amortization.

b) Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.

c) The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

d) Self constructed assets are recognized at direct cost incurred and proportionate allocation of overheads incurred to develop the said asset.

e) Gains or Losses arising from disposal of discarded assets which are carried at its book value are recognized in the statement of Profit & Loss.

D. Capital Work-in-Progress and Preoperative Expenses during Construction Period

Capital Work-in-Progress includes expenditure during construction period incurred on projects under implementation treated as pre-operative expenses pending allocation to the assets. These expenses are apportioned to the respective fixed assets on their completion / commencement of commercial production.

E. Depreciation & Amortisation

Tangible Assets

a) Depreciation on assets acquired up to 30th June, 2014 for Building, Plant & Machinery and Moulds & Dies is provided on Straight Line Method and on other assets on Written Down Value Method.

Depreciation on all Assets acquired on or after 1st July, 2014 is provided on the straight line method.

b) Depreciation on Tangible Fixed Assets is provided over the useful lives of the assets as prescribed by Schedule II of the Companies Act, 2013 with the exception of the following;

Plant & Machinery of Plastic Piping System Division, Protective Packaging Division and Cross Laminated Film Division is depreciated on triple shift basis over 12 to 18 years based on internal assessment and independent technical evaluation carried out by external valuers.

The management believes that the useful life as given above best represent the period over which the management expects to use these assets.

c) Depreciation on assets sold or discarded during the year is being provided on pro-rata basis up to the date on which such assets are sold or discarded.

d) Leasehold Land is amortized over the period of lease.

e) Assets costing up to Rs. 10,000/- each are depreciated fully in the year of purchase.

Intangible Assets

Intangible assets developed or acquired are amortised on straight line basis over the useful life as specified below:

a) Computer Software and Licenses - 3 to 4 years

b) Technical License / Know-how Fee - 5 years

Government Grants

Grants received against specific fixed assets are adjusted to the cost of the assets in the year of receipt. Revenue grants are recognized in the Statement of Profit & Loss in accordance with the related scheme and accounted for in the period in which these are accrued.

F. Investments

a) All long term investments are stated at cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary, in the opinion of the management.

b) Current investments are carried at the lower of cost and fair value, determined on a category-wise basis.

G. Inventories

a) Raw Material & Components - at cost using identified lot basis / First in first out (FIFO) or net realizable value whichever is lower.

b) Finished Goods/Semi-Finished Goods - at cost using weighted average cost basis or net realisable value whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventory to their respective present location and condition.

c) Stores, Spare Parts, Packing Materials etc. - at cost using FIFO or at net realisable value whichever is lower.

d) Goods for Resale - at cost using FIFO basis or net realisable value whichever is lower.

e) Inter divisional transfers are valued at works/factory costs of the transferor unit/division, plus transport and other charges.

H. Assets Taken on Lease

In respect of operating leases, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased term.

In respect of assets obtained on finance leases, assets are recognized at their fair value at the date of acquisition or if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a Finance Lease obligation. The excess of lease payments over the recorded lease obligations are treated as Finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. The assets are depreciated as owned depreciable assets.

I. Foreign Currency Transactions

a) Initial Recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit & Loss of the year.

b) Measurement of Foreign Currency Items at the Balance Sheet Date

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit & Loss.

c) Forward Exchange Contracts.

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/ income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit & Loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period.

The Company uses foreign currency forward contracts to hedge its actual underlying exposures and not for trading or speculation purpose. The use of these forward contracts reduces the risk and/or cost to the company.

J. Employee Benefits

a) Short Term Benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which related service is rendered.

b) Post Employment Benefits:-

* Defined Contribution Plan

Company's contribution to the superannuation scheme and State Governed Provident Fund Scheme is recognized during the year in which related service is rendered.

* Defined Benefit Plan :- Gratuity

The present value of obligation is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the statement of profit and loss. The Gratuity Funds for the employees are administered by Life Insurance Companies.

c) Compensated Absences: -

The company has a policy of providing compensated absences to its employees. The expense is recognized at the present value of the amount payable determined based on independent actuarial valuation, using projected unit credit method. The company doesn't maintain any plan funds to fund its obligation towards compensated absences.

d) Other benefits comprising of discretionary long service awards are recognized as and when determined.

K. Research & Development Expenditure

Revenue expenditure on research and development is charged to the statement of profit and loss. Expenditure, which results in creation of capital asset, is capitalized in the year in which it is incurred and depreciation is provided on such assets as applicable.

L. Share / Debenture Issue Expenses And Debenture Redemption Reserve Issue expenses are adjusted against the Securities Premium Account.

Debenture Redemption Reserve is created pursuant to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

Premium paid / payable on redemption is adjusted against the Securities Premium Account

M. Taxes on Income

Current tax is determined based on the amount of tax payable in respect of taxable income for the financial year ending on 30th June.

Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period are capable of reversal in one or more subsequent periods. Deferred tax assets, are recognized only to the extent there is virtual certainty supported by convincing evidence of its realization.

Wealth tax is provided in accordance with the provisions of Wealth Tax Act, 1957.

N. Provisions and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a permanent 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 not recognized.

O. Cash and Cash Equivalents

Cash & Cash equivalents include cash & Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments where original maturity is three months or less.

P. Borrowing Cost

Borrowing Cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as adjustment to the interest cost. Interest and other borrowing costs attributable to acquisition, construction or production of qualifying assets that takes a substantial period of time to get ready for its intended use or sale are capitalized. All other borrowing costs are expensed out in the period they occur.

Q. Earnings per Share

Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, with the weighted average number of shares outstanding during the year.

R. Construction Business

The company had ventured into real estate development business and thus the accounting policies relevant specifically in relation to construction business are as under:-

Revenue recognition

Income from real estate sales is recognized on the transfer of all significant risk and rewards of ownership to the buyers and is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

Cost recognition

Proportionate cost including estimated cost of completion of real estate sold is recognized in statement of profit and loss and shown separately under the head "Cost of materials consumed".

Valuation of inventory

Finished / under construction inventory of real estate is stated at cost or net realizable value whichever is lower. Construction work-in-progress includes cost of land, premium for development rights, construction cost, materials, services and allocated interest and expenses incidental to the construction business.

Other accounting policies, wherever applicable, are same as followed in normal course of business.




Jun 30, 2014

A. Basis of Accounting

a) The financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principles in India, the Companies Accounting Standards Rules, 2006 and relevant provisions of Companies Act, 1956 which continues to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs & the relevant provisions of the Companies Act 1956 & Companies Act 2013,as applicable,as adopted consistently by the company. .The accounting is on the basis of a going concern concept.

b) The preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known/ materialized.

c) All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle of twelve months and other criteria set out in Revised Schedule VI to the Companies Act, 1956.

B. Revenue Recognition

a) Sales are recognized at the point of dispatch of goods to the customer. Service income is recognized when the service is rendered. Sales & Services are accounted for net of excise duty, service tax, returns & claims etc.

b) The Company adopts the accrual concept in the preparation of the accounts. Claims / Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

c) Benefit on account of entitlement to import duty-free raw materials under any Scheme as announced by the government, is estimated and accounted for in the year of export and when there is no significant uncertainty regarding the ultimate collections of export proceeds as applicable.

d) Industrial promotion subsidy / government grants are recognized on accrual basis on compliance of stipulated conditions as notified under the respective scheme.

C. Fixed Assets

a) Certain Land, Buildings, Plant & Machinery and Moulds & Dies are stated at revalued amounts as a result of their revaluation less depreciation.

b) Other fixed assets are stated at cost less accumulated depreciation and amortization.

c) Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.

d) The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

D. Capital Work-in-Progress and Preoperative Expenses during Construction Period

Capital Work-in-Progress includes expenditure during construction period incurred on projects under implementation treated as pre-operative expenses pending allocation to the assets. These expenses are apportioned to the respective fixed assets on their completion / commencement of commercial production.

E. Depreciation & Amortisation Tangible Assets

a) Depreciation on Building, Plant & Machinery and Moulds & Dies is provided on Straight Line Method and on other assets on Written Down Value Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, except certain specific assets on which depreciation is provided at higher rates based on useful life of the assets estimated by the management.

b) Certain class of assets acquired after 1-7-2009 / 1-7-2010 have been depreciated at rates higher than as specified in Schedule XIV of the Companies Act, 1956, the details thereof are as under :-

- Injection moulding machines- 8.33% p.a. on SLM basis.

- Ancillary Equipments & utilities -14.28% p.a. on SLM basis

- Electronic equipments: - 60% on WDV basis

- Computers:- 60% on WDV basis

- Depreciation on additions to the assets during the year is being provided on pro-rata basis from the date of acquisition/ installation.

c) Depreciation on assets sold or discarded during the year is being provided on pro-rata basis up to the date on which such assets are sold or discarded.

d) Leasehold Land is amortised over the period of lease.

e) Assets costing up to Rs. 5,000/- each are depreciated fully in the year of purchase.

Intangible Assets

Intangible assets developed or acquired are amortised on straight line basis at the rates specified below:

a) Computer Software and Licenses - 25%.

b) Technical License / Know-how Fee - 20%

c) Right To Use - 20%

F. Investments

a) All long term investments are stated at cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary, in the opinion of the management.

b) Current investments are carried at the lower of cost and fair value, determined on a category-wise basis.

G. Inventories

Inventories of plastic goods are valued as under:-

a) Raw Material & Components - at cost using identified lot basis / First in first out (FIFO) or net realizable value whichever is lower.

b) Finished Goods/Semi-Finished Goods - at cost using weighted average cost basis or net realisable value whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventory to their respective present location and condition

c) Stores, Spare Parts, Packing Materials etc. - at cost using FIFO basis except obsolete and non-moving items stated at net realisable value.

d) Goods for Resale - at cost using FIFO basis or net realisable value whichever is lower.

e) Inter divisional transfers are valued at works/factory costs of the transferor unit/division, plus transport and other charges.

H. Assets Taken on Lease

In respect of operating leases, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased term.

In respect of assets obtained on finance leases, assets are recognized at their fair value at the date of acquisition or if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a Finance Lease obligation. The excess of lease payments over the recorded lease obligations are treated as Finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. The assets are depreciated as owned depreciable assets.

I. Foreign Currency Transactions

a) Initial Recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the Statement of Profit & Loss of the year.

b) Measurement of Foreign Currency Items at the Balance Sheet Date

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit & Loss.

c) Forward Exchange Contracts.

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/ income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit & Loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period.

The Company uses foreign currency forward contracts to hedge its actual underlying exposures and not for trading or speculation purpose. The use of these forward contracts reduces the risk and/or cost to the company.

J. Employee Benefits

a) Short Term Benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which related service is rendered.

b) Post Employment Benefits:-

- Defined Contribution Plan

Company''s contribution to the superannuation scheme and State Governed Provident Fund Scheme is recognised during the year in which related service is rendered.

- Defined Benefit Plan :- Gratuity

The present value of obligation is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the statement of profit and loss. The Gratuity Funds for the employees are administered by Life Insurance Corporation of India under Group Gratuity Scheme.

c) Compensated Absences: -

The company has a policy of providing compensated absences to its employees. The expense is recognized at the present value of the amount payable determined based on independent actuarial valuation, using projected unit credit method. The company doesn''t maintain any plan funds to fund its obligation towards compensated absences.

d) Other benefits comprising of discretionary long service awards are recognized as and when determined.

K. Research & Development Expenditure

Revenue expenditure on research and development is charged to the statement of profit and loss. Expenditure, which results in creation of capital asset, is capitalised in the year in which it is incurred and depreciation is provided on such assets as applicable.

L. Share / Debenture Issue Expenses And Debenture Redemption Reserve

Issue expenses are adjusted against the Securities Premium Account.

Debenture Redemption Reserve is created pursuant to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

Premium paid / payable on redemption is adjusted against the Securities Premium Account.

M. Taxes On Income

Current tax is determined based on the amount of tax payable in respect of taxable income for the financial year ending 30th June.

Deferred tax is recognised, subject to consideration of prudence, 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, are recognized only to the extent there is virtual certainty supported by convincing evidence of its realization.

Wealth tax is provided in accordance with the provisions of Wealth Tax Act, 1957.

N. Provisions and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a permanent 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 not recognised.

O. Cash and Cash Equivalents

Cash & Cash equivalents include cash & cheques in hand, bank balances, demand deposits with banks and other short-term highly liquid investments where original maturity is three months or less.

P. Borrowing Cost

Borrowing Cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as adjustment to the interest cost. Interest and other borrowing costs attributable to acquisition, construction or production of qualifying assets that takes a substantial period of time to get ready for its intended use or sale are capitalised. All other borrowing costs are expensed out in the period they occur.

Q. Earnings per Share

Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, with the weighted average number of shares outstanding during the year.

R. Construction Business

The company had ventured into real estate development business and thus the accounting policies relevant specifically in relation to construction business are as under:-

(a) Revenue recognition

Income from real estate sales is recognized on the transfer of all significant risk and rewards of ownership to the buyers and is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

(b) Cost recognition

Proportionate cost including estimated cost of completion of real estate sold is recognized in statement of profit and loss and shown separately under the head "Cost of materials".

(c) Valuation of inventory

Finished / under construction inventory of real estate is stated at cost or net realizable value whichever is lower.

Construction work-in-progress includes cost of land, premium for development rights, construction cost, materials, services and allocated interest and expenses incidental to the construction business.

Other accounting policies, wherever applicable, are same as followed in normal course of business.

Terms/rights attached to Equity shares :

The company has only one class of issued Equity Shares having a par value of Rs. 2 per share. Each Shareholder is eligible for one vote per share held.

The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

36 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD - 15 "EMPLOYEE BENEFITS" i) Gratuity:

In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Life Insurance Corporation of India under Group Gratuity Scheme.

The following table set out the funded status and amount recognised in the Company''s financial statements as at 31st March, 2014 for the Gratuity Plan:

ii) Compensated Absences:

The Company permits encashment of compensated absence accumulated by their employees on retirement, separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave at the balance sheet date is determined and provided on the basis of actuarial valuation as on 31st March 2014 performed by an independent actuary. The Company doesn''t maintain any plan assets to fund its obligation towards compensated absences.


Jun 30, 2013

A. BASIS OF ACCOUNTING

a) The financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principles, the Companies Accounting Standards Rules, 2006 and relevant provisions of Companies Act, 1956. The accounting is on the basis of a going concern concept.

b) The preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

c) All the assets and liabilities have been classified as current or non-current as per the company’s normal operating cycle of twelve months and other criteria set out in Revised Schedule VI to the Companies Act, 1956.

B. REVENUE RECOGNITION

a) Sales & Services are accounted for net of excise duty, service tax, returns & claims etc.

b) The Company adopts the accrual concept in the preparation of the accounts. Claims / Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

c) Benefit on account of entitlement to import duty-free raw materials under any Scheme as announced by the government, is estimated and accounted for in the year of export.

d) Industrial promotion subsidy / government grants are recognized on accrual basis on compliance of stipulated conditions as notified under the respective scheme.

C. FIXED ASSETS

a) Certain Land, Buildings, Plant & Machinery and Moulds & Dies are stated at revalued amounts as a result of their revaluation less depreciation.

b) Other fixed assets are stated at cost less accumulated depreciation and amortization.

c) Interest on borrowings and incidental expenses incurred during the period of construction / installation and till the acquired assets are ready to use are added to the cost of fixed assets.

d) Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.

e) The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

D. CAPITAL WORK-IN-PROGRESS AND PREOPERATIVE EXPENSES DURING CONSTRUCTION PERIOD

Capital Work-in-Progress includes expenditure during construction period incurred on projects under implementation treated as pre-operative expenses pending allocation to the assets. These expenses are apportioned to the respective fixed assets on their completion / commencement of commercial production.

E. DEPRECIATION & AMORTISATION Tangible Assets

a) Depreciation on Building, Plant & Machinery and Moulds & Dies is provided on Straight Line Method and on other assets on Written Down Value Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, except certain specific assets on which depreciation is provided at higher rates based on useful life of the assets estimated by the management.

b) Certain class of assets acquired after 1-7-2009 / 1-7-2010 have been depreciated at rates higher than as specified in Schedule XIV of the Companies Act, 1956, the details thereof are as under :- - Injection moulding machines- 8.33% on SLM basis.

- Ancillary Equipments & utilities -14.28% on SLM basis

- Electronic equipments: - 60% on WDV basis

- Computers:- 60% on WDV basis

- Depreciation on additions to the assets during the year is being provided on pro-rata basis from the date of acquisition / installation.

c) Depreciation on assets sold or discarded during the year is being provided on pro-rata basis up to the date on which such assets are sold or discarded.

d) Leasehold Land is amortised over the period of lease.

e) Assets costing up to R 5,000/- each are depreciated fully in the year of purchase.

Intangible Assets

Intangible assets developed or acquired are amortised on straight line basis at the rates specified below:

a) Computer Software and Licenses - 25%.

b) Technical License / Know-how Fee - 20%

c) Right To Use - 20%

F. INVESTMENTS

a) All long term investments are stated at cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary, in the opinion of the management.

b) Current investments are carried at the lower of cost and fair value, determined on a category-wise basis.

G. INVENTORIES

Inventories of plastic goods are valued as under:- a) Raw Material & Components - at cost using identified lot basis / First in first out (FIFO) or net realizable value whichever is lower.

b) Finished Goods - at cost using weighted average cost basis or net realisable value whichever is lower.

c) Stores, Spare Parts, Packing Materials etc. - at cost using FIFO basis except obsolete and non-moving items stated at net realisable value.

d) Goods for Resale - at cost using FIFO basis or net realisable value whichever is lower.

e) Inter divisional transfers are valued at works / factory costs of the transferor unit / division, plus transport and other charges.

Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventory to their respective present location and condition.

H. ASSETS TAKEN ON LEASE

In respect of operating leases, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased term.

In respect of assets obtained on finance leases, assets are recognized at their fair value at the date of acquisition or if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a Finance Lease obligation. The excess of lease payments over the recorded lease obligations are treated as Finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. The assets are depreciated as owned depreciable assets.

I. FOREIGN CURRENCY TRANSACTIONS

a) Initial Recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the Statement of Profit & Loss of the year.

b) Measurement of Foreign Currency Items at the Balance Sheet Date

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit & Loss.

c) Forward Exchange Contracts

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense / income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit & Loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period.

The Company uses foreign currency forward contracts to hedge its actual underlying exposures and not for trading or speculation purpose. The use of these forward contracts reduces the risk and / or cost to the company.

J. EMPLOYEE BENEFITS

a) Short Term Benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which related service is rendered.

b) Post Employment Benefits:- - Defined Contribution Plan

Company’s contribution to the superannuation scheme and State Governed Provident Fund Scheme is recognised during the year in which related service is rendered.

- Defined Benefit Plan :- Gratuity

The present value of obligation is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the statement of profit and loss. The Gratuity Funds for the employees are administered by Life Insurance Corporation of India under Group Gratuity Scheme.

Provident Fund

For selected employees, monthly contributions are made to a trust administered by the company. The interest rate payable to the beneficiaries shall not be lower than the statutory rate of interest notified by the government. The company has obligation to make good shortfall, if any, between return on investment of the Trust and rates notified by the Government.

For those employees not covered by above, monthly contributions are deposited with Government.

c) Leave Liability:- The liability on account of leave encashment is accounted for on accrual basis.

d) Other benefits comprising of discretionary long service awards are recognized as and when determined.

K. RESEARCH & DEVELOPMENT EXPENDITURE

Revenue expenditure on research and development is charged to the statement of profit and loss. Expenditure, which results in creation of capital asset, is capitalised in the year in which it is incurred and depreciation is provided on such assets as applicable.

L. SHARE / DEBENTURE ISSUE EXPENSES AND DEBENTURE REDEMPTION RESERVE

Issue expenses are adjusted against the Securities Premium Account.

Debenture Redemption Reserve is created pursuant to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

Premium paid / payable on redemption is adjusted against the Securities Premium Account.

M. TAXES ON INCOME

Current tax is determined based on the amount of tax payable in respect of taxable income for the financial year ending 30th June.

Deferred tax is recognised, subject to consideration of prudence, 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, are recognized only to the extent there is virtual certainty supported by convincing evidence of its realization.

Wealth tax is provided in accordance with the provisions of Wealth Tax Act, 1957.

N. PROVISIONS AND CONTINGENT LIABILITIES

Provisions involving substantial degree of estimation in measurement are recognized when there is a permanent 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.

O. CONSTRUCTION BUSINESS

The company had ventured into real estate development business and thus the accounting policies relevant specifically in relation to construction business areas under:- a) Revenue recognition

Income from real estate sales is recognized on the transfer of all significant risk and rewards of ownership to the buyers and is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

b) Cost recognition

Proportionate cost including estimated cost of completion of real estate sold is recognized in statement of profit and loss and shown separately under the head "Cost of materials”.

c) Valuation of inventory

Finished / under construction inventory of real estate is stated at cost or net realizable value whichever is lower.

Construction work-in-progress includes cost of land, premium for development rights, construction cost, materials, services and allocated interest and expenses incidental to the construction business.

Other accounting policies, wherever applicable, are same as followed in normal course of business.


Jun 30, 2012

A. BASIS OF ACCOUNTING.

a) The financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principles, the Companies Accounting Standards Rules, 2006 and relevant provisions of Companies Act; 1956.The accounting is on the basis of a going concern concept.

b) The preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known/ materialized.

B. REVENUE RECOGNITION.

a) Sales & Services are accounted for net of excise duty, service tax, returns & claims etc.

b) The Company adopts the accrual concept in the preparation of the accounts. Claims/ Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

c) Benefit on account of entitlement to import duty-free raw materials under any Scheme as announced by the government, is estimated and accounted for in the year of export.

d) Industrial promotion subsidy/ government grants are recognized on accrual basis on compliance of stipulated conditions as notified under the respective scheme.

C. FIXED ASSETS.

a) Certain Land, Buildings, Plant & Machinery and Moulds & Dies are stated at revalued amounts as a result of their revaluation less depreciation.

b) Other fixed assets are stated at cost less accumulated depreciation and amortization.

c) Interest on borrowings and incidental expenses incurred during the period of construction/installation and till the acquired assets are ready to use are added to the cost of fixed assets.

d) Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.

e) The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

D. CAPITAL WORK - IN - PROGRESS AND PREOPERATIVE EXPENSES DURING CONSTRUCTION PERIOD.

Capital Work In Progress includes expenditure during construction period incurred on projects under implementation treated as pre-operative expenses pending allocation to the assets. These expenses are apportioned to the respective fixed assets on their completion / commencement of commercial production.

E. DEPRECIATION & AMORTISATION.

TANGIBLE ASSETS

a) Depreciation on Building, Plant & Machinery and Moulds & Dies is provided on Straight Line Method and on other assets on Written Down Value Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, except certain specific assets on which depreciation is provided at higher rates based on useful life of the assets estimated by the management.

b) Certain class of assets acquired after 1-7-2009 / 1-7-2010 have been depreciated at rates higher than as specified in Schedule XIV of the Companies Act, 1956 , the details thereof are as under :-

- Injection moulding machines- 8.33% on SLM basis.

- Ancillary Equipments & utilities -14.28% on SLM basis

- Electronic equipments: - 60% on WDV basis

- Computers:-60 % on WDV basis

- Depreciation on additions to the assets during the year is being provided on pro-rata basis from the date of acquisition / installation.

c) Depreciation on assets sold or discarded during the year is being provided on pro- rata basis upto the date on which such assets are sold or discarded.

d) Leasehold Land is amortised over the period of lease.

e) Assets costing upto Rs 5,000/- each are depreciated fully in the year of purchase. INTANGIBLE ASSETS

Cost of software and ERP package and other intangible assets are amortised over a period of four years.

F. INVESTMENTS.

All long term investments are stated at cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary, in the opinion of the management.

G. INVENTORIES.

Inventories of plastic goods are valued as under :-

a) Raw Material & Components - at cost using identified lot basis / First in first out (FIFO) or net realizable value whichever is lower.

b) Finished Goods - at cost using weighted average cost basis or net realisable value whichever is lower.

c) Stores, Spare Parts, Packing Materials etc. - at cost using FIFO basis except obsolete and non-moving items stated at net realisable value.

d) Goods for Resale - at cost using FIFO basis or net realisable value whichever is lower.

e) Inter divisional transfers are valued at works/factory costs of the transferor unit/division, plus transport and other charges.

Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventory to their respective present location and condition.

H. ASSETS TAKEN ON LEASE

In respect of operating leases, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased term.

In respect of assets obtained on finance leases, assets are recognized at their fair value at the date of acquisition or if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a Finance Lease obligation. The excess of lease payments over the recorded lease obligations are treated as Finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. The assets are depreciated as owned depreciable assets.

I. FOREIGN CURRENCY TRANSACTIONS.

A. INITIAL RECOGNITION.

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the Statement of Profit & Loss of the year.

B. MEASUREMENT OF FOREIGN CURRENCY ITEMS AT THE BALANCE SHEET DATE.

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit & Loss.

C. FORWARD EXCHANGE CONTRACTS.

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/ income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit & Loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period.

The Company uses foreign currency forward contracts to hedge its actual underlying exposures and not for trading or speculation purpose. The use of these forward contracts reduces the risk and/or cost to the company.

J. EMPLOYEE BENEFITS.

1. Short Term Benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which related service is rendered.

2. Post Employment Benefits :-

(a) Defined Contribution Plan.

Company's contribution to the superannuation scheme, State Governed Provident Fund Scheme, etc. are recognised during the year in which related service is rendered.

(b) Defined Benefit Plan :- Gratuity.

The present value of obligation is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the statement of profit and loss. The Gratuity Funds for the employees' are administered by Life Insurance Corporation of India under Group Gratuity Scheme.

Provident Fund.

For few employees, monthly contributions are made to a trust administered by the company. The interest rate payable to the beneficiaries shall not be lower than the statutory rate of interest notified by the government. The company has obligation to make good shortfall, if any, between return on investment of the Trust and rates notified by the Government.

For those employees not covered by above, monthly contributions are deposited with Government.

3. Leave Liability.

The liability on account of leave encashment is accounted for on accrual basis.

K. RESEARCH & DEVELOPMENT EXPENDITURE.

Revenue expenditure on research and development is charged to the statement of profit and loss. Expenditure, which results in creation of capital asset, is capitalised in the year in which it is incurred and depreciation is provided on such assets as applicable.

L. SHARE / DEBENTURE ISSUE EXPENSES AND DEBENTURE REDEMPTION RESERVE.

Issue expenses are adjusted against the Securities Premium Account.

Debenture Redemption Reserve is created pursuant to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

Premium paid / payable on redemption is adjusted against the Securities Premium Account.

M. TAXES ON INCOME.

Current tax is determined based on the amount of tax payable in respect of taxable income for the financial year ending 31st March.

Deferred tax is recognised, subject to consideration of prudence, 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, are recognized only to the extent there is virtual certainty supported by convincing evidence of its realization.

N. PROVISIONS AND CONTINGENT LIABILITIES.

Provisions involving substantial degree of estimation in measurement are recognized when there is a permanent 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.

O. CONSTRUCTION BUSINESS.

The company has ventured into real estate development business and thus the accounting policies relevant specifically in relation to construction business are as under:-

a. Revenue recognition.

Income from real estate sales is recognized on the transfer of all significant risk and rewards of ownership to the buyers and is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

b. Cost recognition.

Proportionate cost including estimated cost of completion of real estate sold is recognized in statement of profit and loss and shown separately under the head "Cost of materials".

c. Valuation of inventory.

Finished / under construction inventory of real estate is stated at cost or net realizable value whichever is lower.

Construction work in progress includes cost of land, premium for development rights, construction cost, materials, services and allocated interest and expenses incidental to the construction business.

Other accounting policies, wherever applicable, are same as followed in normal course of business.


Jun 30, 2011

A. BASIS OF ACCOUNTING

i. The financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principles, the Companies Accounting Standards Rules, 2006 and relevant provisions of Companies Act; 1956. The accounting is on the basis of a going concern concept.

ii. The preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reported year. Differences between the actual results are recognized in the year in which the results are known/ materialized.

B. REVENUE RECOGNITION

i. Sales & Services are accounted for net of Excise duty, Service tax, Returns & Claims etc.

ii. The Company adopts the accrual concept in the preparation of the accounts. Claims / Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

iii. Benefit on account of entitlement to import duty-free raw materials under any Scheme as announced by the government, is estimated and accounted for in the year of export.

iv. Industrial promotion subsidy / government grants are recognized on accrual basis on compliance of stipulated conditions as notified under the respective scheme.

C FIXED ASSETS

i. Certain Land, Buildings, Plant & Machinery and Moulds & Dies are stated at revalued amounts as a result of their revaluation less depreciation.

ii. Other fixed assets are stated at cost less accumulated depreciation and amortisation.

iii. Interest on borrowings and incidental expenses incurred during the period of construction/installation and till the acquired assets are put to use, are added to the cost of fixed assets.

iv. Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.

v. The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

D. CAPITAL WORK-IN-PROGRESS AND PREOPERATIVE EXPENSES DURING CONSTRUCTION PERIOD

Capital Work In Progress includes expenditure during construction period incurred on projects under implementation treated as pre-operative expenses pending allocation to the assets. These expenses are apportioned to the respective fixed assets on their completion / commencement of commercial production.

E. DEPRECIATION & AMORTISATION Tangible Assets

i. Depreciation on Building, Plant & Machinery and Moulds & Dies is provided on Straight Line Method and on other assets on Written Down Value Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, except certain specific assets on which depreciation is provided at higher rates based on useful life of the assets estimated by the management.

ii. Certain class of assets acquired after 1-7-2009/ 1-7-2010 have been depreciated at rates higher than as specified in Schedule XIV of the Companies Act, 1956 , the details thereof are as under:-

Injection moulding machines - 8.33% on SLM basis.

Ancillary Equipments & utilities -14.28% on SLM basis

Electronic equipments: - 60% on WDV basis

Computers:- 60 % on WDV basis

iii. Depreciation on additions to the assets during the year is being provided on pro-rata basis from the date of acquisition / installation.

iv. Depreciation on assets sold or discarded during the year is being provided on pro-rata basis upto the date on which such assets are sold or discarded.

v. Leasehold Land is amortised over the period of lease.

vi. Assets costing upto Rs. 5,000/- each are depreciated fully in the year of purchase.

Intangible Assets

Cost of software and ERP package is amortised over a period of four years.

F. INVESTMENTS

Investments are stated at cost. Provision for diminution, if any, is made to recognize a decline, other than temporary, in the value of investments as per the opinion of the management.

G. INVENTORIES

Inventories of plastic goods are valued as under:

i. Raw Material & Components - at cost using identified lot basis / First in first out (FIFO) or net realizable value whichever is lower.

ii. Finished Goods - at cost using weighted average cost basis or net realisable value whichever is lower.

iii. Stores, Spare Parts, Packing Materials etc. - at cost using FIFO basis except obsolete and non-moving items stated at net realisable value.

iv. Goods for Resale - at cost using FIFO basis or net realisable value whichever is lower.

v. Inter divisional transfers are valued either at works/factory costs of the transferor unit/division, plus transport and other charges.

Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventory to their respective present location and condition.

H. FOREIGN CURRENCY TRANSACTIONS

(a) All transaction in foreign currency, are recorded at the rates of exchange prevailing on dates when the relevant transactions take place.

(b) Monetary assets and liabilities in foreign currency, outstanding at end of the year, are converted in Indian Currency at appropriate rate of exchange prevailing on date of Balance Sheet. Resultant Gain or Loss is accounted for during the year.

(c) In respect of forward exchange contracts entered into to hedge foreign currency risks, the difference between the forward rate and exchange rate at the inception of the contract is recognised as income or expense over the life of the contract. Further, the exchange differences arising on such contracts are recognised as income or expense along with the exchange differences on the underlying assets/liabilities. Profit or loss on cancellations/renewals of forward exchange contracts is recognised during the year.

(d) Non-monetary foreign currency items are carried at cost.

I. EMPLOYEE BENEFITS

1. Short Term Benefits are recognised as an expense at the undiscounted amount in the Profit and Loss Account of the year in which related service is rendered.

2. Post Employment Benefits:

(a) Defined Contribution Plan:

Company's contribution to the superannuation scheme, state governed provident fund scheme, etc. are recognised during the year in which related service is rendered.

(b) Defined Benefit Plan:

- Gratuity

The present value of obligation is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Profit and Loss Account. The Gratuity Funds for the employees are administered by Life Insurance Corporation of India under Group Gratuity Scheme.

- Provident Fund

For few employees, monthly contributions are made to a trust administered by the company. The interest rate payable to the beneficiaries is notified by the government. The company has obligation to make good shortfall, if any, between return on investment of the Trust and rates notified by the Government.

For those employees not covered by above, monthly contributions are deposited into Government.

3. Leave Liability

The liability on account of leave encashment is accounted for on accrual basis.

J RESEARCH & DEVELOPMENT EXPENDITURE

Revenue expenditure on research and development is charged to the Profit & Loss Account. Expenditure, which results in creation of capital asset, is capitalised in the year in which it is incurred and depreciation is provided on such assets as applicable.

K. SHARE / DEBENTURE ISSUE EXPENSES AND DEBENTURE REDEMPTION RESERVE

i. Issue expenses are adjusted against the Share Premium Account.

ii. Debenture Redemption Reserve is created pursuant to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

iii. Premium paid / payable on redemption is adjusted against the Share Premium Account.

L. TAXES ON INCOME

Current tax is determined based on the amount of tax payable in respect of taxable income for the financial year ending 31st March 2011.

Deferred tax is recognised, subject to consideration of prudence, 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, are recognized only to the extent there is virtual certainty supported by convincing evidence of its realization.

M. PROVISIONS AND CONTINGENT LIABILITIES

Provisions involving substantial degree of estimation in measurement are recognized when there is a permanent 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.

N. CONSTRUCTION BUSINESS

The company has ventured into real estate development business and thus the accounting policies relevant specifically in relation to construction business are as under:

a. Revenue recognition

Income from real estate sales is recognized on the transfer of all significant risk and rewards of ownership to the buyers and is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

b. Cost recognition

Proportionate cost including estimated cost of completion of real estate sold is recognized in Profit & Loss Account and shown separately under Cost of materials.

c. Valuation of inventory

Finished / under construction inventory of real estate is stated at cost or net realizable value whichever is lower.

Construction work in progress includes cost of land, premium for development rights, construction cost, materials, services and allocated interest and expenses incidental to the construction business.

Other accounting policies, wherever applicable, are same as followed in normal course of business.





 
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