Home  »  Company  »  Syncom Formul.  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Syncom Formulation (India) Ltd. Company

Mar 31, 2016

A. SIGNIFICANT ACCOUNTING POLICIES :

i) Basis of Accounting :

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India. To comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, 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 under the historical cost convention on accrual basis.

ii) Use of estimates :

The presentation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period.

Differences between the actual result and estimates are recognized in the period in which the results are known/materialized.

iii) Fixed Assets :

Fixed assets are stated at cost net of modal/cenvat on construction and includes proportionate financial cost till commencement of production less accumulated depreciation.

iv) Depreciation :

Depreciation / Amortization In respect of fixed assets acquired during the year, depreciation/ amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life, as per schedule II of the Companies Act, 2013.

v) Impairment of Assets:

An asset is treated as impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit & loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vi) Inventory valuation :

a) Stock of raw materials/packing materials are valued at cost (net of modal credit) on FIFO basis or net realizable value whichever is lower.

b) Stores & Spares and gift articles are valued at cost or net realizable value whichever is lower.

c) Semi finished goods are valued at approximate cost of input, depending on the stage of completion or net realizable value whichever is lower.

d) Finished goods are valued at cost or net realizable value whichever is lower. Cost for this purpose is determined by reducing the estimated gross margin from the billing price.

vii) Foreign Currency Transaction :

a) Transactions denominated in foreign currencies are normally recorded on exchange rate prevailing at the time of the transaction. Current liabilities related to foreign currency transaction are being converted at the year end at the closing rates for revenue transactions & exchanges gains/ losses in fluctuations of exchange rate are being dealt in the profit & loss account.

b) Monetary items denominated in foreign currencies and covered by forward exchange contracts are translated at the rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference is being recognized over the life of the contract.

viii) Investments :

The Investments are long term & stated at cost. Provision for diminution in the value of long term investment is made only if such a decline is other than temporary in the opinion of the management.

ix) Sales :

The company recognises sales at the point of dispatch of goods to the customer.

x) Modvat/cenvat :

Modvat/cenvat credit is accounted on accrual basis on purchase of materials and capital goods and appropriated against payment of excise duty on clearance of the finished goods.

xi) Excise Duty :

Excise duty has been accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

xii) Treatment of retirement benefit :

Retirement benefit to employees viz, gratuity is being accounted for on actuarial basis.

xiii) Borrowing cost :

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

xiv) Earning per share:

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity outstanding during the year except where the results would be anti-dilutive.

xv) Provision for Current and Deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing differences “between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

xvi) Contingent liabilities :

Contingent liabilities are not provided for. These are being disclosed by way of a note in Notes to Accounts.

xvii) Miscellaneous expenditure :

Miscellaneous expenditure is written off to the profit & loss account over a period of up to five years, depending upon the nature and expected future benefits of such expenditure. The management reviews the amortization period on a regular basis and if expected future benefits from such expenditure are significantly lower from previous estimates, the amortization period is accordingly changed.


Mar 31, 2015

A. SIGNIFICANT ACCOUNTING POLICIES :

I) Basis of Accounting :

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India. To comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, 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 under the historical cost convention on accrual basis.

ii) Use of estimates :

The presentation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period.

Differences between the actual result and estimates are recognised in the period in which the results are known/materialised.

iii) Fixed Assets :

Fixed assets are stated at cost net of modvat/cenvat on construction and includes proportionate financial cost till commencement of production less accumulated depreciation.

iv) Depreciation :

Depreciation / Amortisation In respect of fixed assets acquired during the year, depreciation/ amortisation is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1,2014, the carrying amount as on April 1,2014 is depreciated over the remaining useful life, as per schedule II of the Companies Act, 2013.

v) Impairment of Assets:

An asset is treated as impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit & loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vi) Inventory valuation :

a) Stock of raw materials/packing materials are valued at cost (net of modvat credit) on FIFO basis or net realisable value whichever is lower.

b) Stores & Spares and gift articles are valued at cost or net realisable value whichever is lower.

c) Semi finished goods are valued at approximate cost of input, depending on the stage of completion or net realisable value whichever is lower.

d) Finished goods are valued at cost or net realisable value which ever is lower. Cost for this purpose is determined by reducing the estimated gross margin from the billing price.

vii) Foreign Currency Transaction :

a) Transactions denominated in foreign currencies are normally recorded on exchange rate prevailing at the time of the transaction.Current liabilities related to foreign currency transaction are being converted at the year end at the closing rates for revenue transactions & exchanges gains/ losses in fluctuations of exchange rate are being dealt in the profit & loss account.

b) Monetary items denominated in foreign currencies and covered by forward exchange contracts are translated at the rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,such difference is being recognised over the life of the contract.

viii) Investments :

The Investments are long term & stated at cost.Provision for diminution in the value of long term investment is made only if such a decline is other than temporary in the opinion of the management.

ix) Sales :

The company recognises sales at the point of dispatch of goods to the customer.

x) Modvat/cenvat :

Modvat/cenvat credit is accounted on accrual basis on purchase of materials and capital goods and appropriated against payment of excise duty on clearance of the finished goods.

xi) Excise Duty :

Excise duty has been accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

xii) Treatment of retirement benefit :

Retirement benefit to employees viz, gratuity is being accounted for on actuarial basis.

xiii) Borrowing cost :

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

xiv) Earning per share:

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity outstanding during the year except where the results would be anti-dilutive.

xv) Provision for Current and Deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing differences"between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

xvi) Contingent liabilities :

Contingent liabilities are not provided for.These are being disclosed by way of a note in Notes to Accounts.

xvii) Miscellaneous expenditure :

Miscellaneous expenditure is written off to the profit & loss account over a period of up to five years,depending upon the nature and expected future benefits of such expenditure. The management reviews the amortization period on a regular basis and if expected future benefits from such expenditure are significantly lower from previous estimates, the amortization period is accordingly changed.


Mar 31, 2014

I) Basis of Accounting:

The financial statements have been prepared under the histoncal cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 The company generally follow mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

All the assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash & cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current /non current classification of assets and liabilities.

ii) Use of estimates:

The presentation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period.

Differences between the actual result and estimates are recognised in the period in which the results are known/materialised.

iii) Fixed Assets:

Fixed assets are stated at cost net of modvat/cenvat on construction and includes proportionate financial cost till commencement of production less accumulated depredation.

iv) Depreciation:

Depreciation on all Assets is being provided on straight line basis as per schedule XIV of the Companies Act, 1956.

v) Impairment of Assets:

An asset is treated as impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit & loss Account in the year in which an asset is identified as impaired The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vi) Inventory valuation:

a) Stock of raw matenals/packing materials are valued at cost (net of modvat credit) on FIFO basis or net realisable value which ever is Lower.

b) Stores & Spares and gift articles are valued at cost or net realisable value which ever is Lower

c) Semi finished goods are valued at approximate cost of input, depending on the stage of completion or net realisable value which ever is Lower.

d) Finished goods are valued at cost or net realisable value which ever is lower. Cost for this purpose is determined by reducing the estimated gross margin from the billing price.

vii) Foreign Currency Transaction:

a) Transactions denominated in foreign currencies are normally recorded on exchange rate prevailing at the time of the transaction.Current liabilities related to foreign currency transaction are being converted at the year end at the closing rates for revenue transactions & exchanges gams/ losses in fluctuations of exchange rate are being dealt in the profit & loss account.

b) Monetary items denominated in foreign currencies and covered by forward exchange contracts are translated at the rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction .such difference is being recognised over the life of the contract.

viii) Investments:

The Investments are long term & stated at cost Provision for diminution in the value of long term investment is made only if such a decline is other than temporary in the opinion of the management.

ix) Sales:

The company recognises sales at the point of dispatch of goods to the customer.

x) Modvat/cenvat:

Modvat/cenvat credit is accounted on accrual basis on purchase of materials and capital goods and appropriated against payment of excise duty on clearance of the finished goods.

xi) Excise Duty:

Excise duty has been accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

xii) Treatment of retirement benefit:

Retirement benefit to employees viz, gratuity is being accounted for on actuarial basis.

xiii) Borrowing cost:

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

xiv) Earning per share:

Basic EPS is computed using the weighted average number of equity shares outstanding during the year equivalent shares Diluted EPS is computed using the weighted average number of equity and diluted equity outstanding during the year except v/here the results would be anti-dilutive.

xv) Provision for current and deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961 Deferred tax resulting from 'timing differences'between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent thal there is a reasonable certainty that the assets will be realised in future.

xvi) Contingent liabilities:

Contingent liabilities are not provided for These are being disclosed by way of a note in the notes to Accounts.

xvii) Miscellaneous expenditure

Miscellaneous expenditure is written off to the profit & loss account over a period of up to five years,depending upon the nature and expected future benefits of such expenditure The management reviews the amortization period on a regular basis and if expected future benefits from such expenditure are significantly lower from previous estimates, the amortization period is accordingly changed.


Mar 31, 2013

1} Basis of Accounting:

The financial statements have been prepared tinder the historical cost convention in accordance with the generally accepted accounting principles and Ihe provisions of the Companies AcLt§56. The company generally follow mercantile system of accounting and recognizes significant items Of income and expenditure to accrual basis. All the assets and liabilities have been classified as currant or non- current as per Ihe company''s normal operating cycle and other criteria set out in schedule VI to the Companies Act, 1956. Based on the nature of products and Ihe time between Ihe acquisition of assets for processing and their realisation in cash & cash equivalents, Ihe Company has ascertained its operating cycle as 12 months for the purpose of cument''non current classification of assets and liabilities.

ii) Use of estimates:

The presentation of financial statements is In conformity with generally accepted accounting principles requires estimates and assumptions to be made, tha! affect the reported amount of assets and liabilities on the dale of financial statements and Ihe reported amount of revenues and expenses during (he period. Differences between the actual result and estimates are recognised in the period in which the results are known/materialised.

ill) Fixed Assets:

Fixed assets are slated at cost net of mod vat/cen vat on construction and Includes proportionate financial cost till commencement of production less accumulated depreciation.

iv) Depreciation:

Depreciation on all Assets is being provided on straight line basis as per schedule XIV of the Companies Act, 1956.

v) Impairment of Assets

An asset is treated as impaired when the carrying cost of Assets exceeds lis recoverable value. An impairment loss Is charged to the Profit & loss Account In the year in which an asset is identified as impaired. The impairment toss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vl) Inventory valuation:

a) Stock of raw materials/packing materials are valued at oast (net of modvat credit) on FiFO basis or net realisable value which ever is Lower.

b) Stores & Spares and gift articles are valued at cost or net realisable value which ever Is Lower.

c) Semi finished goods are valued at approximate cost of input. depending on the stage of completion or net realisable value which ever is Lower.

d) Finished goods are valued at cost or net realisable value which ever Is lower. Cost far this purpose is determined by reducing the estimated gross margin from the billing price.

vil) Foreign Currency Transaction:

a) Transactions denominated in foreign currencies are normally recorded on exchange rate prevailing at the time of Ihe transaction. Current liabilities related to foreign currency transaction are being converted at the year end at Ihe closing rales for revenue transactions and exchanges gams/ losses In fluctuations of exchange rale are being deaH i n the profit & loss account.

b) Monetary items denominated in foreign currencies and covered by forward exchange contracts are translated at the rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rale on the date of transaction, such difference have been recognised over the life of Ihe

viii) Investments:

The Investments are long term * stated at cost. Provision for diminution in the value of tang term investment is rrade only tf such a declmeisolherthanternporaryintheopinionofthemanagement. Ix) Sales:

The company recognises sales at Ihe point of dispatch of goods to the

customer.

x) Mottvat/cenyat:

ModVat/cenvat credit is accounted on accrual basis on purchase of materials and capital goods and appropriated against payment of excise duty on clearance of the finished goods.

xi) Excise Duty:

Excise dutyhasbeen accounted on the. basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

xii) Treatment of retirement benefit:

Retirement benefit to employees viz, gratuity is being accounted for on actuarial basis.

xiii) BprrowioflCfflL''

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as pari of the cost of such assets. A qualifying asset is one that necessary takes substantial period of tJma to get ready tor intended use. All other borrowing costs are charged lo revenue.

xrV| Earning per sKai»i

Basic EPC is computed using Ihe weighted average number of equity shares outstanding during the year. Equivalent shares Diluted EPS is computed using the weighted average number of equity and diluted equity outstanding during the year except where the results wouW be anti-dflufive. xv| Provision for current and deferred Tax:

Provision tor current tax is made after taking into consideration benefits admissible under Ihe provisions of tjie Income tasAct, 1961. Deterred lax resulting from timing differences" between book and taxable profits is accounted tor using the lax rates and laws that have been enacted or substantively enacted as on the balance sheet dale. The deferred tax asset is recognised and carried forward only to Ihe extent that there is a reasonable ertainty that the assets will be realised in future.

xvl) Cent Indent liabilities:

Contingent liabilities are not provided for. These are being

dtsclosed by way of a note in Ihe notes lo Accounts.

xvii| Miscellaneous expenditure:

Miscellaneous expenditure is written off to the profit and loss account over a period of up to Trve years, depending upon the nature and expected future benefits of such expenditure. The management reviews the amortization period an a regular basis and if expected future benefits from such expenditure are significantly lower from previous estimates, the amortization period is accordingly changed.


Mar 31, 2012

I) Basis of Accounting:

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. The company generally follow mercantile system of accounting and recognizes significant items of income and expenditure to accrual basis. All the assets and liabilities have been classified as current or non- current as per the company's normal operating cycle and other criteria set out in schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash & cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non current classification of assets and liabilities.

ii) Use of estimates:

The presentation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period. Differences between the actual result and estimates are recognised in the period in which the results are known/materialised.

iii) Fixed Assets:

Fixed assets are stated at cost net of modvat/cenvat on construction and includes proportionate financial cost till commencement of production less accumulated depreciation.

iv) Depreciation:

Depreciation on all Assets is being provided on straight line basis as per schedule XIV of the Companies Act, 1956.

v) Impairment of Assets

An asset is treated as impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit & loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vi) Inventory valuation:

a) Stock of raw materials/packing materials are valued at cost (net of modvat credit) on FIFO basis or net realisable value which ever is Lower.

b) Stores & Spares and gift articles are valued at cost or net realisable value which ever is Lower.

c) Semi finished goods are valued at approximate cost of input, depending on the stage of completion or net realisable value which ever is Lower.

d) Finished goods are valued at cost or net realisable value which ever is lower. Cost for this purpose is determined by reducing the estimated gross margin from the billing price.

vii) Foreign Currency Transaction:

a) Transactions denominated in foreign currencies are normally recorded on exchange rate prevailing at the time of the transaction. Current liabilities related to foreign currency transaction are being converted at the year end at the closing rates for revenue transactions and exchanges gains/ losses in fluctuations of exchange rate are being dealt in the profit & loss account.

b) Monetary items denominated in foreign currencies and covered by forward exchange contracts are translated at the rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference have been recognised over the life of the

viii) Investments:

The Investments are long term & stated at cost. Provision for diminution in the value of long term investment is made only if such a decline is otherthan temporary in the opinion of the management. ix) Sales:

The company recognises sales at the point of dispatch of goods to the customer.

x) Modvat/cenvat:

Modvat/cenvat credit is accounted on accrual basis on purchase of materials and capital goods and appropriated against payment of excise duty on clearance of the finished goods.

xi) Excise Duty:

Excise duty has been accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

xii) Treatment of retirement benefit:

Retirement benefit to employees viz, gratuity is being accounted for on actuarial basis.

xiii) Borrowing cost:

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

xiv) Earning per share:

Basic EPC is computed using the weighted average number of equity shares outstanding during the year. Equivalent shares Diluted EPS is computed using the weighted average number of equity and diluted equity outstanding during the year except where the results would be anti-dilutive.

xv) Provision for current and deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible underthe provisions of the Income taxAct, 1961. Deferred tax resulting from "timing differences" between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable ertainty that the assets will be realised in future.

xvi) Contingent liabilities:

Contingent liabilities are not provided for. These are being disclosed byway of a note in the notes to Accounts.

xvii) Miscellaneous expenditure:

Miscellaneous expenditure is written off to the profit and loss account over a period of up to five years, depending upon the nature and expected future benefits of such expenditure. The management reviews the amortization period on a regular basis and if expected future benefits from such expenditure are significantly lower from previous estimates, the amortization period is accordingly changed.


Mar 31, 2010

I) Recognition of income & expenditure:

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

The company generally follow mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

ii) Use of estimates:

The presentation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period. Differences between the actual result and estimates are recognised in the period in which the results are known/materialised.

Hi) Fixed Assets:

Fixed assets are stated at cost net of modvat/cenvat on construction and includes proportionate financial cost till commencement of production less accumulated depreciation.

iv) Depreciation:

Depreciation on all Assets, is being provided on straight line basis as per schedule XIV of the Companies Act, 1956.

v) Impairment of Assets

An asset is treated as impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit & ioss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vi) Inventory valuation:

a) Stock of raw materials/packing materials are valued at cost (net of modvat credit) on FIFO basis or net realisable value which ever is Lower.

b) Stores & Spares and gift articles are valued at cost or net realisable value which ever is Lower.

c) Semi finished goods are valued at approximate cost of input, depending on the stage of completion or net realisable value which ever is Lower.

d) Finished goods are valued at cost or net realisable value which ever is lower. Cost for this purpose is determined by reducing the estimated gross margin from the billing price.

vii) Foreign Currency Transaction:

a) Transactions denominated in foreign currencies are normally recorded on exchange rate prevailing at the time of the transaction. Current liabilities related to foreign currency transaction are being converted at the year end at the closing rates for revenue transactions and exchanges gains/ losses in fluctuations of exchange rate are being dealt in the profit & loss account.

b) Monetary items denominated in foreign currencies and covered by forward exchange contracts are translated at the rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference have been recognised over the life of the contract.

viii) Investments:

The Investments are long term & stated at cost. Provision for diminution in the value of long term investment is made only if such a decline is other than temporary in the opinion of the management.

ix) Sales:

The company recognises sales at the point of dispatch of goods to the customer. Sales are net of discounts, Sales Tax, Excise Duty and returns.

x) Modvat/cenvat:

Modvat/cenvat credit is accounted on accrual basis on purchase of materials and capital goods and appropriated against payment of excise duty on clearance of the finished goods.

xi) Excise Duty:

Excise duty has been accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

xii) Treatment of retirement benefit:

Retirement benefit to employees viz, gratuity is being accounted for on actuarial basis.

xiii) Borrowing cost:

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

xiv) Earning per share:

Basic EPC is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity equivalent shares outstanding during the year except where the results would be anti- dilutive.

xv) Provision for current and deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income taxAct, 1961. Deferred tax resulting from "timing differences" between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable ertainty that the assets will be realised in future.

xvi) Contingent liabilities:

Contingent liabilities are not provided for. These are being disclosed by way of a note in the notes to Accounts.

xvii) Miscellaneous expenditure:

Miscellaneous expenditure is written off to the profit and loss account over a period of up to five years, depending upon the nature and expected future benefits of such expenditure. The management reviews the amortization period on a regular basis and if expected future benefits from such expenditure are significantly lower from previous estimates, the amortization period is accordingly changed.

Find IFSC