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Accounting Policies of Swarnajyothi Agrotech & Power Ltd. Company

Mar 31, 2015

A) Basis of Accounting and Accounting Conventions:

The financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and results of the operations during the reporting period. Although these estimates are based upon the management's best knowledge of current events and actions, actual results could differ from these estimates.

c) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.

Revenue from sale of goods is recognized on dispatch which coincides with transfer of significant risks and rewards to customer and is exclusive of excise duty and net of trade discounts, sales returns and sales tax, where applicable.

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.Dividend is recognized as and when the company's right to receive payment is established.

d) Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation, impairment losses and specific grants/subsidies, if any. Cost includes purchase price, fright, non refundable taxes and duties and any identifiable expenditure to bring the assets to its present location and working condition for intended use. Finance cost relating to acquisition of fixed assets which takes substantial period of time to get ready for use are included to the extent they relate to the period till such assets are ready for its indented use.

Expenditure directly relating to construction activities capitalized. Indirect is capitalized to the extent those relate to the construction activity or is incidental there to. Income earned during the construction period is deducted from the total expenditure relating to construction activity.

Assets retired from active use and held for disposal are stated at their estimated net releasable values or net book values, whichever is lower.

e) Depreciation:

Depreciation has been provided on the straight-line method as per the life period prescribed in Part "C" of Schedule II of The Companies Act 2013

f) Intangible Assets:

Cost relating to licenses and other intangible assets, which are acquired, are capitalized and amortized on the useful life of the assets as estimated by the management.

g) Impairment :

The carrying amount of the assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and its value in use, the estimates of the time value of money and risks specific to the asset.

After impairments are carried at costs, however, diminution in value is provided to recognize a decline, other than temporary, in the value of the investments.

h) Government grants and subsidies :

Grants and subsidies are recognized when there is a reasonable assurance that the grant or subsidy will be received and that all underline conditions there to will be complied with. When grant or subsidy relates an asset, its value is deducted in arriving in carrying amount of the related asset.

i) Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investment. All other Investments are classified as long term investments current investments are carried at lower of cost and fair value determined on individual investment basis.

Long term investments carried at cost. However, diminishing in value is provided to recognize a decline, other than temporary, in the value of investments.

j) Inventories:

Raw-materials, packing materials, stores & spares and consumables valued at lower of cost, calculated on "First In First Out" basis, and net realizable value. Items held for use in the production of inventories and not written down below cost.If the finished product in which they will be incorporated are expected to be sold at or above cost. Finished goods and work-in-progress are valued at lower of cost and net realizable value. Cost includes material, labour and a proportion of appropriate over heads. Cost of finished goods includes excise duty wherever applicable. Cost is determined on weighted basis. Trading goods are valued at lower of cost and net realizable value.Net realizable value is the estimated selling price in the ordinary course of business, reduced by the estimated cost of computation costs to affect the sale.

k) Income taxes:

Tax expenses companies of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred income taxes reflected the impact of current year timing difference between taxable income and accounting income for the year and reverser of timing differences of earlier years.

Deferred Tax is measured based on tax rates enacted or subsequently enacted at the Balance Sheet Date. Deferred tax assets are recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax asset can be realized. In situations where the company unobserved depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty support by convincing evidence that they can be realized against future taxable profits.

Un-recognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes- down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will available.

l) Foreign Currency Transactions:

Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and foreign currency at the date of the transaction.

Conversion: Foreign currency monetary items are reported at yearend rates. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction.

Exchange differences: Exchange differences are arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

Forward exchange contracts not intended for trading or speculation purposes: In case of forward exchange contracts, difference between the forward rate and exchange rate on the date of transaction is recognized as expense or income over the life the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.

m) Export Benefits, incentives and licenses:

Export benefits on account of entitlement to import of goods free of duty under the 'Duty Entitlement Pass Book under Duty Exemption Scheme' and benefits on account of export promotion scheme included in revenues are accrued and accounted in the year export.

n) Borrowing Cost:

Borrowing costs that are directly relatable to acquisition, construction or production of qualifying assets is capitalized as part of the cost of such asset. All other borrowing costs are charged to revenue.

o) Provisions and Contingent Liabilities:

A provision is recognized when the company has a present obligation as result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet and adjusted to reflect the current best estimates. Financial effect of contingent liabilities is disclosed based on information available up to the date on which financial statements is approved. However where a reasonable estimate of financial effect be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.


Mar 31, 2014

A) Basis of Accounting and Accounting Conventions:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the Indian Generally Accepted Principles Accepted Accounting Principles (IGAAP) comprising the Accounting standards Notified under Companies Accounting Standards Rules 2006 by the Central Government of India under section 211(3C)of the Companies Act 1956, Various pronouncements of the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 and guidelines issued by the Securities Exchange Board of India (SEBI).

b) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and results of the operations during the reporting period. Although these estimates are based upon the management's best knowledge of current events and actions, actual results could differ from these estimates.

c) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.

Revenue from sale of goods is recognized on dispatch which coincides with transfer of significant risks and rewards to customer and is exclusive of excise duty and net of trade discounts, sales returns and sales tax, where applicable.

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.Dividend is recognized as and when the company's right to receive payment is established.

d) Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation, impairment losses and specific grants/subsidies, if any. Cost includes purchase price, fright, non refundable taxes and duties and any identifiable expenditure to bring the assets to its present location and working condition for intended use. Finance cost relating to acquisition of fixed assets which takes substantial period of time to get ready for use are included to the extent they relate to the period till such assets are ready for its indented use.

Expenditure directly relating to construction activities capitalized. Indirect is capitalized to the extent those relate to the construction activity or is incidental there to. Income earned during the construction period is deducted from the total expenditure relating to construction activity.

Assets retired from active use and held for disposal are stated at their estimated net releasable values or net book values, whichever is lower.

e) Depreciation:

Depreciation on Fixed Assets has been provided on Straight Line Method, based on the useful life of the assets as estimated by the management which generally coincides with rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion of assets during the year is provided on a pro-rata basis.

f) Intangible Assets:

Cost relating to licenses and other intangible assets, which are acquired, are capitalized and amortized on the useful life of the assets as estimated by the management.

g) Impairment :

The carrying amount of the assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and its value in use, the estimates of the time value of money and risks specific to the asset.

After impairments are carried at costs, however, diminution in value is provided to recognize a decline, other than temporary, in the value of the investments.

h) Government grants and subsidies :

Grants and subsidies are recognized when there is a reasonable assurance that the grant or subsidy will be received and that all underline conditions there to will be complied with. When grant or subsidy relates an asset, its value is deducted in arriving in carrying amount of the related asset.

i) Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investment. All other Investments are classified as long term investments current investments are carried at lower of cost and fair value determined on individual investment basis.

Long term investments carried at cost. However, diminishing in value is provided to recognize a decline, other than temporary, in the value of investments.

j) Inventories:

Raw-materials, packing materials, stores & spares and consumables valued at lower of cost, calculated on "First In First Out" basis, and net realizable value. Items held for use in the production of inventories and not written down below cost. If the finished product in which they will be incorporated are expected to be sold at or above cost. Finished goods and work-in-progress are valued at lower of cost and net realizable value. Cost includes material, labour and a proportion of appropriate over heads. Cost of finished goods includes excise duty wherever applicable. Cost is determined on weighted basis. Trading goods are valued at lower of cost and net realizable value.Net realizable value is the estimated selling price in the ordinary course of business, reduced by the estimated cost of computation costs to affect the sale.

k) Income taxes:

Tax expenses companies of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred income taxes reflected the impact of current year timing difference between taxable income and accounting income for the year and reverser of timing differences of earlier years.

Deferred Tax is measured based on tax rates enacted or subsequently enacted at the Balance Sheet Date. Deferred tax assets are recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax asset can be realized. In situations where the company unobserved depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty support by convincing evidence that they can be realized against future taxable profits.

Un-recognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will available.

l) Foreign Currency Transactions:

Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and foreign currency at the date of the transaction.

Conversion: Foreign currency monetary items are reported at yearend rates. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction.

Exchange differences: Exchange differences are arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

Forward exchange contracts not intended for trading or speculation purposes: In case of forward exchange contracts, difference between the forward rate and exchange rate on the date of transaction is recognized as expense or income over the life the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.

m) Export Benefits, incentives and licenses:

Export benefits on account of entitlement to import of goods free of duty under the 'Duty Entitlement Pass Book under Duty Exemption Scheme' and benefits on account of export promotion scheme included in revenues are accrued and accounted in the year export.

n) Borrowing Cost:

Borrowing costs that are directly relatable to acquisition, construction or production of qualifying assets is capitalized as part of the cost of such asset. All other borrowing costs are charged to revenue.

o) Provisions and Contingent Liabilities:

A provision is recognized when the company has a present obligation as result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet and adjusted to reflect the current best estimates. Financial effect of contingent liabilities is disclosed based on information available up to the date on which financial statements is approved. However where a reasonable estimate of financial effect be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.


Mar 31, 2013

A) Basis of Accounting and Accounting Conventions:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the Indian Generally Accepted Principles Accepted Accounting Principles (IGAAP) comprising the Accounting standards Notified under Companies Accounting Standards Rules 2006 by the Central Government of India under section 211(3C)of the Companies Act 1956, Various pronouncements of the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 and guidelines issued by the Securities Exchange Board of India (SEBI).

b) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and results of the operations during the reporting period. Although these estimates are based upon the management''s best knowledge of current events and actions, actual results could differ from these estimates.

c) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.

Revenue from sale of goods is recognized on dispatch which coincides with transfer of significant risks and rewards to customer and is exclusive of excise duty and net of trade discounts, sales returns and sales tax, where applicable.

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend is recognized as and when the company''s right to receive payment is established.

d) Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation, impairment losses and specific grants/subsidies, if any. Cost includes purchase price, fright, non refundable taxes and duties and any identifiable expenditure to bring the assets to its present location and working condition for intended use. Finance cost relating to acquisition of fixed assets which takes substantial period of time to get ready for use are included to the extent they relate to the period till such assets are ready for its indented use.

Expenditure directly relating to construction activities capitalized. Indirect is capitalized to the extent those relate to the construction activity or is incidental there to. Income earned during the construction period is deducted from the total expenditure relating to construction activity.

Assets retired from active use and held for disposal are stated at their estimated net releasable values or net book values, whichever is lower.

e) Depreciation:

Depreciation on Fixed Assets has been provided on Straight Line Method, based on the useful life of the assets as estimated by the management which generally coincides with rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion of assets during the year is provided on a pro-rata basis.

f) Intangible Assets:

Cost relating to licenses and other intangible assets, which are acquired, are capitalized and amortized on the useful life of the assets as estimated by the management.

g) Impairment :

The carrying amount of the assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and its value in use, the estimates of the time value of money and risks specific to the asset.

After impairments are carried at costs, however, diminution in value is provided to recognize a decline, other than temporary, in the value of the investments.

h) Government grants and subsidies :

Grants and subsidies are recognized when there is a reasonable assurance that the grant or subsidy will be received and that all underline conditions there to will be complied with. When grant or subsidy relates an asset, its value is deducted in arriving in carrying amount of the related asset.

i) Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investment. All other Investments are classified as long term investments current investments are carried at lower of cost and fair value determined on individual investment basis.

Long term investments carried at cost. However, diminishing in value is provided to recognize a decline, other than temporary, in the value of investments.

j) Inventories:

Raw-materials, packing materials, stores & spares and consumables valued at lower of cost, calculated on ''First In First Out" basis, and net realizable value. Items held for use in the production of inventories and not written down below cost. If the finished product in which they will be incorporated are expected to be sold at or above cost.

Finished goods and work-in-progress are valued at lower of cost and net realizable value. Cost includes material, labour and a proportion of appropriate over heads. Cost of finished goods includes excise duty wherever applicable. Cost is determined on weighted basis.

Trading goods are valued at lower of cost and net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, reduced by the estimated cost of computation costs to affect the sale.

k) Income taxes:

Tax expenses companies of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred income taxes reflected the impact of current year timing difference between taxable income and accounting income for the year and reverser of timing differences of earlier years.

Deferred Tax is measured based on tax rates enacted or subsequently enacted at the Balance Sheet Date. Deferred tax assets are recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax asset can be realized. In situations where the company unobserved depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty support by convincing evidence that they can be realized against future taxable profits.

Un-recognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes- down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will available.

l) Foreign Currency Transactions:

Initial Recognization: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and foreign currency at the date of the transaction.

Conversion: Foreign currency monetary items are reported at year end rates. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction.

Exchange differences: Exchange differences are arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

Forward exchange contracts not intended for trading or speculation purposes: In case of forward exchange contracts, difference between the forward rate and exchange rate on the date of transaction is recognized as expense or income over the life the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.

m) Export Benefits, incentives and licenses:

Export benefits on account of entitlement to import of goods free of duty under the ‘Duty Entitlement Pass Book under Duty Exemption Scheme'' and benefits on account of export promotion scheme included in revenues are accrued and accounted in the year export.

n) Borrowing Cost:

Borrowing costs that are directly relatable to acquisition, construction or production of qualifying assets is capitalized as part of the cost of such asset. All other borrowing costs are charged to revenue.

o) Provisions and Contingent Liabilities:

A provision is recognized when the company has a present obligation as result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet and adjusted to reflect the current best estimates. Financial effect of contingent liabilities is disclosed based on information available up to the date on which financial statements is approved. However where a reasonable estimate of financial effect be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.


Mar 31, 2011

1. Basis of Accounting and Accounting Conventions:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the Indian Generally Accepted Principles Accepted Accounting Principles (IGAAP) comprising the Accounting standards Notified under Companies Accounting Standards Rules 2006 by the Central Government of India under section 211(3C)of the Companies Act 1956, Various pronouncements of the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 and guidelines issued by the Securities Exchange Board of India (SEBI).

2. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and results of the operations during the reporting period. Although these estimates are based upon the management's best knowledge of current events and actions, actual results could differ from these estimates.

3. Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.

Revenue from sale of goods is recognized on dispatch which coincides with transfer of significant risks and rewards to customer and is exclusive of excise duty and net of trade discounts, sales returns and sales tax, where applicable.

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend is recognized as and when the company's right to receive payment is established.

4. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation, impairment losses and specific grants/ subsidies, if any. Cost includes purchase price, fright, non refundable taxes and duties and any identifiable expenditure to bring the assets to its present location and working condition for intended use. Finance cost relating to acquisition of fixed assets which takes substantial period of time to get ready for use are included to the extent they relate to the period till such assets are ready for its indented use.

Expenditure directly relating to construction activities capitalized. Indirect is capitalized to the extent those relate to the construction activity or is incidental there to. Income earned during the construction period is deducted from the total expenditure relating to construction activity.

Assets retired from active use and held for disposal are stated at their estimated net releasable values or net book values, whichever is lower.

5. Depreciation:

Depreciation on Fixed Assets has been provided on Straight Line Method, based on the useful life of the assets as estimated by the management which generally coincides with rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion of assets during the year is provided on a pro-rata basis.

6. Intangible Assets:

Cost relating to licenses and other intangible assets, which are acquired, are capitalized and amortized on the useful life of the assets as estimated by the management.

7. Impairment:

The carrying amount of the assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and its value in use, the estimates of the time value of money and risks specific to the asset.

After impairments are carried at costs, however, diminution in value is provided to recognize a decline, other than temporary, in the value of the investments.

8. Government grants and subsidies:

Grants and subsidies are recognized when there is a reasonable assurance that the grant or subsidy will be received and that all underline conditions there to will be complied with. When grant or subsidy relates an asset, its value is deducted in arriving in carrying amount of the related asset.

9. Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investment. All other Investments are classified as long term investments current investments are carried at lower of cost and fair value determined on individual investment basis.

Long term investments carried at cost. However, diminishing in value is provided to recognize a decline, other than temporary, in the value of investments.

10.Inventories:

Raw-materials, packing materials, stores & spares and consumables valued at lower of cost, calculated on "First In First Out" basis, and net realizable value. Items held for use in the production of inventories and not written down below cost. If the finished product in which they will be incorporated are expected to be sold at or above cost.

Finished goods and work-in-progress are valued at lower of cost and net realizable value. Cost includes material, labour and a proportion of appropriate over heads. Cost of finished goods includes excise duty wherever applicable. Cost is determined on weighted basis.

Trading goods are valued at lower of cost and net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, reduced by the estimated cost of computation costs to affect the sale.

11.Employee Benefits:

Employee benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to profit and loss account of the year when the contribution to the respective funds is due. There are no other obligations other than the contributions payable to the respective authorities.

12.Income taxes:

Tax expenses companies of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred income taxes reflected the impact of current year timing difference between taxable income and accounting income for the year and reverser of timing differences of earlier years.

Deferred Tax is measured based on tax rates and the tax loss enacted or subsequently enacted at the Balance Sheet Date. Deferred tax assets are recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax asset can be realized. In situations where the company unobserved depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty support by convincing evidence that they can be realized against future taxable profits.

Un-recognised deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will available.

13.Foreign Currency Transactions:

Initial Recognisation: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and foreign currency at the date of the transaction.

Conversion: Foreign currency monetary items are reported at yearend rates. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction.

Exchange differences: Exchange differences are arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

Forward exchange contracts not intended for trading or speculation purposes: In case of forward exchange contracts, difference between the forward rate and exchange rate on the date of transaction is recognized as expense or income over the life the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.

14.Export Benefits, incentives and licenses:

Export benefits on account of entitlement to import of goods free of duty under the 'Duty Entitlement Pass Book under Duty Exemption Scheme' and benefits on account of export promotion scheme included in revenues are accrued and accounted in the year export.

15.Borrowing Cost:

Borrowing costs that are directly relatable to acquisition, construction or production of qualifying assets is capitalized as part of the cost of such asset. All other borrowing costs are charged to revenue.

16.Earnings per share:

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

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

17.Provisions and Contingent Liabilities:

A provision is recognized when the company has a present obligation as result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet and adjusted to reflect the current best estimates. Financial effect of contingent liabilities is disclosed based on information available upto the date on which financial statements is approved. However where a reasonable estimate of financial effect be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.


Mar 31, 2010

1. Accounting convention & concepts

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the Indian Generally Accepted Principles Accepted Accounting Principles (IGAAP) comprising the Accounting standards Notified under Companies Accounting Standards Rules 2006 by the Central Government of India under section 211 (3C)of the Companies Act 1956, Various pronouncements of the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 and guidelines issued by the Securities Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the Accounting policy hitherto in use.

2. Revenue Recognition

All income and expenditures are accounted for on accrual basis. Dividend Income is recognized as and when received.

3. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. Cost includes all identifiable expenditure to bring the assets to its present location and condition for intended use.

4. Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates specified in Schedule XVI of the Companies Act, 1956. Depreciation on addition/deletion of assets during the year is provided on a pro-rata basis.

5. Investments

Investments held by the Company are long term in nature which are carried at cost. Provision against diminution in value of investment has been made in case diminution is considered as other than temporary as per the criteria laid down by the Board of Directors, after considering that such investment are if strategic in nature. During the year through an EGM resolution, the company has decided to add the assets of its subsidiary company to Fixed Assets in lieu of investments and to that extent all the assets of the subsidiary company have been added to the assets of the company in lieu of investments and subsidiary company was allowed to opt for voluntary winding-up.

6. Valuation of Inventories

Closing Stock is valued at cost or net realizable value whichever is lower. Cost for the above purpose is ascertained on FIFO Method.

7. Taxation

Current tax is determined as the tax payable in respect of taxable income for the year.

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

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable / virtual certainty of realization.

8. Sales

Local Sales included the amount of MVAT

 
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