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Accounting Policies of Tarapur Transformers Ltd. Company

Mar 31, 2015

A. Basis Of Preparation Of Financial Statements

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 2013 and the applicable accounting standards issued by the ICAI.

B. Use Of Estimates : The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimate are recognised in the period in which the same are known/materialized.

C. Fixed Assets : Fixed Assets including Leasehold Land are recorded at cost. The Company capitalizes all costs relating to Fixed Assets acquisition and installation and other financial cost till commencement of commercial Production. The Company has stated its Fixed Assets net of CENVAT/Value Added Tax.

D. Borrowing Costs : Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset is ready for its intended use. All other borrowing costs are charged as Revenue Expenditure.

E. Depreciation / Amortisation : 1)Depreciation on additions to Assets is calculated as per Schedule II of the Companies Act 2013. Depreciation in the case of uninstalled Fixed Assets has not been provided.

2) Useful life of tangible assets is the same as it is specified in part C of the schedule II to the Companies 2013 Act. The residual value taken is not more than five percent of the original cost of the tangible assets.

3) Depreciation on assets has been provided at the rates and in the manner prescribed in schedule II to the Companies Act, 2013 on Straight Line Method and under the provisions of Sub-Section (2) of Section 123 of the Companies Act, 2013.

4) Depreciation on Assets in Boisar Unit has not been provided as the production was suspended for the entire year therein.

5) Amortization of Intangible Assets has been provided as per Schedule 11 of the Companies Act 2013.

F. Inventories

(a) Inventories are valued at lower of Cost or Net Realizable Value.

(b) Work in Progress is valued at Cost Plus estimated value of overheads. As on 31st March, 2015, the work in progress is not more that the corresponding order value.

(c) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

(d) Packing material and Stores and Spares purchased are written off as expenses in the year of purchases.

(e) NRV is the estimated selling price in the ordinary course of business.

G. Impairment Of Assets : An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impaired loss is charged to Profit and

Loss Account in the year in which an asset is identified as impaired.

H. Foreign Exchange Transactions

(a) Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date.

(b) Exchange differences arising on repayment of liabilities incurred for the purpose of acquiring fixed assets are adjusted with the carrying amount of the respective fixed assets.

I. Accounting Of Cenvat Transactions : CENVAT benefit is accounted for on accrual basis on purchase of material & assets and incurring of expenses and

appropriated against payment of Excise Duty on clearance of Finished Goods.

J. Taxation : Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

As ascertained by the Management of the company , there is no virtual certainty that future taxable income as per the Income Tax Act,1961 may be available to offset current year's unabsorbed depreciation & business losses under the Income Tax Act,1961. As per Para 17 of the Accounting Standard 22 :- Accounting for Taxes on Income, where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws , deferred tax assets should be recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax asset can be realized.

K. Recognition Of Income And Expenditure

(a) Incomes & Expenditures are generally accounted on accrual as they are earned or incurred except Interest on taxes and duties which are accounted on payment basis or at the time of assessment, whichever is earlier.

(b) Sales are accounted net of Sales Discounts, rebates, etc., if any returns and also Excise Duty and Service tax, VAT and Sales Tax.

(c) Packing Material and Stores & Spares purchased are written off as expenses in the year of purchase.

(d) Imports are recognised on presentation of Bill of Entry at the Customs or on retiring the Import document whichever is earlier.

(e) Dividend Income is recognised when the right to receive the dividend is unconditional.

L. Employee Retirement Benefits

(a) Provident Fund is a defined contribution scheme and the Company's contribution to Provident Fund is charged to Profit & Loss Account.

(b) Retirement Benefits in the form of Gratuity and Leave Encashment which are defined benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognized in Profit & Loss account.

(c) Short Term Employee Benefits are recognised as an expense in the Profit & Loss account for the year in which the related service is rendered.

M. Deferred Revenue Expenses: Deferred revenue expenses which are included expenses for public issue of share and increase of authorized share capital, had been written off over period of 5 years.

N. Investments : Investments are stated at cost of Acquisition. No provision is made for the diminution in value, if the decline is only temporary.

O. Earnings Per Share : The Company reports basic and diluted Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic and Diluted EPS are Computed by dividing the net profit for the year attributable to equity shareholders by the number of equity shares outstanding during the year.


Mar 31, 2014

A. Basis of Preparation of Financial Statements: The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

B. Use of Estimates: The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimate are recognised in the period in which the same are known / materialised.

C. Fixed Assets: Fixed Assets including Leasehold Land are recorded at cost. The Company capitalises all costs relating to Fixed Assets acquisition and installation and other financial cost till commencement of commercial Production. The Company has stated its Fixed Assets net of CENVAT/Value Added Tax.

Expenses incurred relating to Pali Unit prior to commencement of commercial production are classified as project development expenditure and disclosed under Capital work in progress which will be subsequently allocated to the relevant fixed assets on pro rata basis depending on the prime cost of Assets of Pali Unit.

D. Borrowing Costs: Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset is ready for its intended use. All other borrowing costs are charged as Revenue Expenditure.

E. Depreciation/ Amortisation

(a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata upto the date of deletion. Depreciation in the case of uninstalled Fixed Assets has not been provided.

(b) Depreciation on Assets in Boisar Unit has not been provided as the production was suspended for the entire year therein.

(c) Depreciation on assets except to the extent stated in (a) and (b) above, has been provided at the rates and in the manner prescribed in Annual Report 2011 - 2012 schedule XIV to the Companies Act, 1956 on Straight Line Method and in accordance with the provisions of Section 205(2) (b) of the Companies Act, 1956.

(d) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, has been provided @ 100% p.a.

F. Inventories

(a) Inventories are valued at lower of Cost or Net Realizable Value.

(b) Work in Progress is valued at Cost Plus estimated value of overheads. As on 31st March, 2014, the work in progress is not more that the corresponding order value.

(c) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

(d) Packing material and Stores and Spares purchased are written off as expenses in the year of purchases.

(e) NRV is the estimated selling price in the ordinary course of business.

G. Impairment of Assets: An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impaired loss is charged to profit and Loss Account in the year in which an asset is identified as impaired.

H. Foreign Exchange Transactions

(a) Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date.

(b) Exchange differences arising on repayment of liabilities incurred for the purpose of acquiring fixed assets are adjusted with the carrying amount of the respective fixed assets.

I. Accounting of Cenvat Transactions: CENVAT benefit is accounted for on accrual basis on purchase of material & assets and incurring of expenses and appropriated against payment of Excise Duty on clearance of Finished Goods.

J. Taxation: Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Ta x assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

As ascertained by the Management of the company , there is no virtual certainty that future taxable income as per the Income Tax Act,1961 may be available to offset current year''s unabsorbed depreciation & business losses under the Income Ta x Act,1961. As per Para 17 of the Accounting Standard 22 : – Accounting for Taxes on Income, where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws , deferred tax assets should be recognized only to the extent that there is virtual certainty supported by convincing evidence that suffcient taxable income will be available against which such deferred tax asset can be realized.

K. Recognition Of Income And Expenditure

(a) Incomes & Expenditures are generally accounted on accrual as they are earned or incurred except Interest on taxes and duties which are accounted on payment basis or at the time of assessment, whichever is earlier.

(b) Sales are accounted net of Sales Discounts, rebates, etc., if any returns and also Excise Duty and Service tax, VAT and Sales Tax.

(c) Packing Material and Stores & Spares purchased are written off as expenses in the year of purchase.

(d) Imports are recognised on presentation of Bill of Entry at the Customs or on retiring the Import document whichever is earlier.

(e) Dividend Income is recognised when the right to receive the dividend is unconditional.

L. Employee Retirement benefits

(a) Provident Fund is a defned contribution scheme and the Company''s contribution to Provident Fund is charged to profit & Loss Account.

(b) Retirement benefits in the form of Gratuity and Leave Encashment which are defned benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognized in profit & Loss account.

(c) Short Term Employee benefits are recognised as an expense in the profit & Loss account for the year in which the related service is rendered.

M. Deferred Revenue Expenses: Deferred Revenue Expenses include Expenses for Public issue of share and increase of Authorized Share

Capital. These expenses are being written off over period of 5 Years. N. Investments: Investments are stated at cost of Acquisition. No provision is made for the diminution in value, if the decline is only temporary. O. Earning Per Share: The Company reports basic and diluted Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic and Diluted EPS are Computed by dividing the net profit for the year attributable to equity shareholders by the number of equity shares outstanding during the year.


Mar 31, 2013

A. Basis Of Preparation Of Financial Statements

The fnancial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

B. Use Of Estimates

The preparation of fnancial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities on the date of the fnancial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimate are recognised in the period in which the same are known / materialised

C. Fixed Assets

Fixed Assets including Leasehold Land are recorded at cost The Company capitalises all costs relating to Fixed Assets acquisition and installation and other fnancial cost till commencement of commercial Production. The Company has stated its Fixed Assets net of CENVAT/Value Added Tax.

Expenses incurred relating to Pali Unit prior to commencement of commercial production are classifed as project development expenditure and disclosed under Capital work in progress which will be subsequently allocated to the relevant fxed assets on pro rata basis depending on the prime cost of Assets of Pali Unit.

D. Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset is ready for its intended use. All other borrowing costs are charged as Revenue Expenditure.

E. Depreciation/ Amortisation

(a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata upto the date of deletion. Depreciation in the case of uninstalled Fixed Assets has not been provided.

(b) Depreciation on Assets in Boisar Unit has not been provided as the production was suspended for the entire year therein.

(c) Depreciation on assets except to the extent stated in (a) and (b) above, has been provided at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956 on Straight Line Method and in accordance with the provisions of Section 205(2) (b) of the Companies Act, 1956.

(d) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, has been provided @ 100% p.a.

F. Inventories

(a) Inventories are valued at lower of Cost or Net Realizable Value.

(b) Work in Progress is valued at Cost Plus estimated value of overheads. As on 31st March, 2013, the work in progress is not more that the corresponding order value.

(c) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

(d) Packing material and Stores and Spares purchased are written off as expenses in the year of purchases.

(e) NRV is the estimated selling price in the ordinary course of business.

(f) Obsolete stock provided in Boisar Unit

G. Impairment Of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impaired loss is charged to Proft and Loss Account in the year in which an asset is identifed as impaired.

H. Foreign Exchange Transactions

(a) Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date.

(b) Exchange differences arising on repayment of liabilities incurred for the purpose of acquiring fxed assets are adjusted with the carrying amount of the respective fxed assets.

I. Accounting Of Cenvat Transactions

CENVAT beneft is accounted for on accrual basis on purchase of material & assets and incurring of expenses and appropriated against payment of Excise Duty on clearance of Finished Goods.

J. Taxation

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

As ascertained by the Management of the company , there is no virtual certainty that future taxable income as per the Income Tax Act,1961 may be available to offset current year''s unabsorbed depreciation & business losses under the Income Tax Act,1961. As per Para 17 of the Accounting Standard 22 : - Accounting for Taxes on Income, where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws , deferred tax assets should be recognized only to the extent that there is virtual certainty supported by convincing evidence that suffcient taxable income will be available against which such deferred tax asset can be realized.

K. Recognition Of Income And Expenditure

(a) Incomes & Expenditures are generally accounted on accrual as they are earned or incurred except Interest on taxes and duties which are accounted on payment basis or at the time of assessment, whichever is earlier.

(b) Sales are accounted net of Sales Discounts, rebates, etc., if any returns and also Excise Duty and Service tax, VAT and Sales Tax.

(c) Packing Material and Stores & Spares purchased are written off as expenses in the year of purchase.

(d) Imports are recognised on presentation of Bill of Entry at the Customs or on retiring the Import document whichever is earlier.

(e) Dividend Income is recognised when the right to receive the dividend is unconditional.

L. Employee Retirement Benefts

(a) Provident Fund is a defned contribution scheme and the Company''s contribution to Provident Fund is charged to Proft & Loss Account.

(b) Retirement Benefts in the form of Gratuity and Leave Encashment which are defned beneft plans are determined and accrued on the basis of an independent actuarial valuation and are recognized in Proft & Loss account.

(c) Short Term Employee Benefts are recognised as an expense in the Proft & Loss account for the year in which the related service is rendered.

M. Deferred Revenue Expenses:

Deferred Revenue Expenses include Expenses for Public issue of share and increase of Authorized Share Capital. These expenses are being written off over period of 5 Years.

N Investments

Investments aArAen nstanuteuadal a lRt cReoepstp oorf Atrc t2qu02is10iti1on1-. N2-o 02 1p0r2o1v2ision is made for the diminution in value, if the decline is only temporary. O. Earning Per Share

The Company reports basic and diluted Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic and Diluted EPS are Computed by dividing the net proft for the year attributable to equity shareholders by the number of equity shares outstanding during the year.


Mar 31, 2012

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

B. USE OF ESTIMATES

The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognised in the period in which the same are known / materialised

C. FIXED ASSETS

Fixed Assets including Leasehold Land are recorded at cost. The Company capitalises all costs relating to Fixed Assets acquisition and installation and other financial cost till commencement of commercial Production. The Company has stated its Fixed Assets net of CENVAT/Value Added Tax.

Expenses incurred relating to Pali Unit prior to commencement of commercial production are classified as project development expenditure and disclosed under Capital work in progress which will be subsequently allocated to the relevant fixed assets on pro-rata basis depending on the prime cost of Assets of Pali Unit.

D. BORROWING COSTS

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset is ready for its intended use. All other borrowing costs are charged as Revenue Expenditure.

E. DEPRECIATION/ AMORTISATION

(a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro-rata up to the date of deletion. Depreciation in the case of uninstalled Fixed Assets has not been provided.

(b) Depreciation on Assets in Boisar Unit has not been provided as the production was suspended for the entire year therein.

(c) Depreciation on assets except to the extent stated in (a) and (b) above, has been provided at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956 on Straight Line Method and in accordance with the provisions of Section 205(2) (b) of the Companies Act, 1956.

(d) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, has been provided @ 100% p.a.

F. INVENTORIES

(a) Inventories are valued at lower of Cost or Net Realizable Value.

(b) Work in Progress is valued at Cost Plus estimated value of overheads. As on 31st March, 2012, the work in progress is not more than the corresponding order value.

(c) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

(d) Packing material and Stores and Spares purchased are written off as expenses in the year of purchases.

(e) NRV is the estimated selling price in the ordinary course of business.

G. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impaired loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

H. FOREIGN EXCHANGE TRANSACTIONS

(a) Foreign Currency Transactions are expressed in Indian Currency at the rates prevailing on the date of transaction. All the Foreign Currency Liabilities / Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date.

(b) Exchange differences arising on repayment of liabilities incurred for the purpose of acquiring fixed assets are adjusted with the carrying amount of the respective fixed assets.

I. ACCOUNTING OF CENVAT TRANSACTIONS

CENVAT benefit is accounted for on accrual basis on purchase of material & assets and incurring of expenses and appropriated against payment of Excise Duty on clearance of Finished Goods.

J. TAXATION

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

As ascertained by the Management of the company , there is no virtual certainty that future taxable income as per the Income Tax Act,I96I may be available to offset current year's unabsorbed depreciation & business losses under the Income Tax Act,I96I. As per Para I7 of the Accounting Standard 22 : - Accounting for Taxes on Income, where an enterprise has unabsorbed depreciation or carry

forward of losses under tax laws , deferred tax assets should be recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax asset can be realized.

K. RECOGNITION OF INCOME AND EXPENDITURE

(a) Incomes & Expenditures are generally accounted on Accrual as they are earned or incurred except Interest on taxes and duties which are accounted on payment basis or at the time of assessment, whichever is earlier.

(b) Sales are accounted net of Sales Discounts, rebates, etc., if any returns and also Excise Duty and Service tax, VAT and Sales Tax.

(c) Packing Material and Stores & Spares purchased are written off as expenses in the year of purchase.

(d) Imports are recognized on presentation of Bill of Entry at the Customs on retiring the Import document whichever is earlier.

(e) Dividend Income is recognized when the right to receive the dividend is unconditional.

L. EMPLOYEE RETIREMENT BENEFITS

(a) Provident Fund is a defined contribution scheme and the Company's contribution to Provident Fund is charged to Profit & Loss Account.

(b) Retirement Benefits in the form of Gratuity and Leave Encashment which are defined benefit plans are determined and accrued on the basis of an independent actuarial valuation and are recognized in Profit & Loss account.

(c) Short Term Employee Benefits are recognized as an expense in the Profit & Loss account for the year in which the related service is rendered.

M. DEFERRED REVENUE EXPENSES

Deferred Revenue Expenses include Expenses for Public issue of share and increase of Authorized Share Capital. These expenses are being written off over period of 5 Years.

N INVESTMENTS

Investments are stated at cost of Acquisition. No provision is made for the diminution in value, if the decline is only temporary.

O. EARNING PER SHARE

The Company reports basic and diluted Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic and Diluted EPS are Computed by dividing the net profit for the year attributable to equity share holders by the number of equity shares outstanding during the year.


Mar 31, 2010

Not Available


Mar 31, 2008

1. Basis of Preparation of Financial Statements

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

2. Use of Estimates

The preparation of financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimate are recognised in the period in which the same are known/materialised

3. Fixed Assets

Fixed Assets including Leasehold Land are recorded at cost. The Company capitalises all costs relating to Fixed Assets acquisition and installation of the same.

Expenses incurred relating to Wada Unit prior to commencement of commercial production are classified as project development expenditure and disclosed under Capital work in progress which will be subsequently allocated to the relevant fixed assets on pro rata basis depending on the prime cost of Assets of Wada Unit.

4. Depreciation / Amortisation

(a) Depreciation on additions to Assets is calculated Pro- rata from the date of such additions and similarly on deletion from assets is calculated pro rata up to the date of deletion. Depreciation in the case of uninstalled Fixed Assets has not been provided.

(b) Depreciation on assets except to the extent stated in (a) above, has been provided at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956, on Straight Line Method and in accordance with the provisions of Section 205(2) (b) of the Companies Act, 1956.

(c) Depreciation on assets, whose actual cost does not exceed Rupees Five Thousand each, has bee provided @ 100% p.a.

5. Inventories

(a) Raw Materials are valued at Cost

(b) Work in Progress is valued at Cost Plus estimated value of overhead. During the year under reference, the company also started manufacturing of power transformers at Wada unit. The first batch has been sent for testing & the batch will work as prototypes. In this view, the entire cost has been shown directly under closing stock in the balance sheet, (without corresponding figures being shown in profit & loss account)

(c) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

6. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impaired loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

7. Foreign Exchange Transactions

1).Foreign Currency Transactions are expressed in Indian Currency at the rates Prevailing on the date of transaction. All the Foreign Currency Liabilities/Assets as at the Balance Sheet date are restated at the applicable exchange rates prevailing at that date.

2).Exchange differences arising on repayment of liabilities incurred for the purpose of acquiring fixed assets are adjusted with the carrying amount of the respective fixed assets.

8. Accounting of Cenvat Transactions

CENVAT benefit is accounted for on accrual basis on purchase of material & availing of services.

9. Taxation

Tax expenses for an year comprise of current tax and deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference betweer taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

10.Fringe Benefit Tax Fringe Benefit Tax is recognized in accordance with the relevant provision of the Income Tax Act, 1961 and the Guidance note on Fringe Benefit Tax issued by the ICAI

11.Recognition of Income and Expenditure

(a) Incomes & Expenditures are generally accounted or Accrual as they are earned or incurred except Interest on taxes and duties which are accounted on payment basis or at the time of assessment, whichever is earlier.

(b) Sales are accounted net of Sales Discounts, rebates, etc., if any and returns but inclusive of Excise Duty and Service tax, VAT, Sales Tax and Freight, Insurance.

(c) Packing Material and Stores & Spares purchased are written off as expenses in the year of purchase.

12.Employee Retirement Benefits

(a) Companys contribution to Provident Fund is charged to Profits Loss Account.

(b) The amount of Gratuity liability for the year is charged to Profits Loss account.

B.Notes Forming Part of the Accounts - 1. Contingent Liabilities Guarantee given to Various Electricity Board Rs. 27068509/- Margin of Rs. 5374640/- is available (P.Y 100000/-)

 
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