Mar 31, 2014
Statement of significant accounting policies
2.1 Basis of preparation and presentation of financial statements
The financial statements of the Company have been prepared to comply,
in all material respects, with the accounting principles generally
accepted in India, including mandatory Accounting Standards notified
under the Companies ( Accounting Standard) Rules,2006 (a; amended)
under the historical cost convention and on an accrual basis. The
accounting policies,in all material respects, have been consistently
applied by the Company and are consistent with those used in previous
year.
2.2 Use of estimates
The preparation of the financial statements is in conformity with
Indian GAAP, requiring management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure
of contingent liabilities on the date of the financial statements and
the reported amounts of revenue and expenses during the reporting year.
Although these estimates are based upon management''s best knowledge of
current events and actions,actual results could differ from these
estimates. Any revision to accounting estimates is recognised
prospectively in current and future years.
2.3 Revenue Recognitions Sales and services
Sale of goods are recognised when significant risk and rewards of
ownership of the goods have passed to buyer, which generally Coincides
with dispatch of goods. Gross sales arc inclusive of applicable
excise duty and exclusive of sales tax. Revenue from services are
recognised as and when such services are rendered. Revenue from scrap
is recognised on sale.
Dividend and interest income
Dividend is recognised when declared and interest income is recognised
on a time proportion basis taking into account the amount outstanding
and the rate applicable.
2.4 Tangible and intangible fixed assets
Tangible and intangible fixed assets are stated at cost less
accumulated deprecation/amortisation and impairment loss, if any. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
2.5 Depreciation and amortisation
Depreciation is provided on written down value method on all assets
except machinery & tools for new projects which are being depreciated
on straight line method at the rates prescribed under schedule XIV. The
depreciation on revalued cost of the assets are being reduced from the
revaluation reserve.
2.6 Impairment of tangible and intangible fixed assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on intemai/extemal
factors. An impairment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects
current market assessment of the time value of money and risks specific
to the asset. After impairment, depreciation provided on revised
carrying amount of the assets over its remaining useful life.
Previously recognised impairment loss is further provided or reversed
depending on changes in circumstances.
2.7 Inventories
Raw materials, stores, spares and tools are valued at lower of cost and
net realizable value. Cost of raw materials comprises of cost of
purchase, cost of conversion and other costs incurred in bringing them
to their respective present location and condition. Cost of raw
material is determined on a weighted average method.
Work in progress and finished goods are valued at lower of cost and net
realisable value. Cost includes direct materials and labour and
proportion of manufacturing overheads based on norma! operating
capacity. Cost of finished goods includes excise duty. Cost determined
on a weighted average method.
Net realisable value is estimated selling price in the ordinary course
of business less estimated cost of completion and selling expenses.
2.8 Employee Benefits
Short term employee benefits are recognised as an expense in the
statement of profit and loss of the year in which the related service
is rendered.
Defined Contribution Plans
Company''s contribution paid/payable during the year to Provident
fund,ES1C and labour welfare fund are Defined contribution plans and
are accounted on accrual basis and charged to the statement of profit
and loss of the year. There are no other obligations other than the
contribution payable to respective funds.
Defined Benefit Plans
Gratuity liability is defined benefit obligation and is provided on the
basis of an actuarial valuation on projected unit credit method made at
the end of each year. The company funds the benefit through
contribution to LIC.The company recognises the actuarial gain and
losses in the statement of profit and loss in the period in which they
arise.
Company does not have policy to pay compensated absences.
2.9 Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in value is made to recognise
a decline other than temporary in the value of long term investments.
2.10 Foreign Currency Transactions
Foreign currency transaction are accounted for at the exchange rates
prevailing at the date of transaction. Gain and losses resulting from
settlement of such transaction and from the translation of monetary
assets and liabilities denominated in foreign currencies are recognised
in the statement of profit and loss.
2.11 Taxation
Provision for income tax is made for current and deferred taxes.
Provision for current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income Tax Act,
1961. Deferred tax on account of timing differences between taxable and
accounting income is accounted for by applying tax rates and laws
enacted or substantially enacted on the balance sheet date.
Deferred tax assets are recognised and carried forward only if there is
reasonable certainty of situation. However in case of carried forward
losses and unabsorbed depreciation under the Income Tax Act,1961, the
Deferred tax asset is recognised if and only if there is a virtual
certainty backed by convincing evidence of its situation. Such assets
are reviewed at each Balance Sheet date to reassess its realisation.
Advance taxes and provision for current income taxes are presented in
the balance sheet after off- setting advance taxes paid and income tax
provisions arising in the same tax jurisdiction and where company
intends to settle the asset and liability on net basis.
Deferred tax asset and/or liability have been offset as they relate to
the same governing taxation laws.
2.12 Provisions and contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past events; it is probable that an outflow of resources
will be required to settle obligation, in respect of which a
reliable estimate can made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimate.
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognised
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognised because it cannot be measured reliably. The company does
not recognise a contingent liability but discloses its existence in the
financial statements.
Contingent assets are neither recognised nor disclosed.
2.13 Leases
Lease arrangements where the risk and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognised as
operating leases. Lease''s rentals under operating leases are
recognised in statement of profit and loss.
2.14 Cash and cash equivalents
In the cash flow statements, cash and cash equivalents include cash in
hand, demand deposits with banks, other short term highly liquid
investments.
2.15 Earnings/(loss) per share
Basic earnings per share are calculated by dividing 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, net profit or loss for the year
attributable to equity shareholders and the weighted average number of
shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares, if any.
Mar 31, 2013
1.1 Basis of preparation and presentation of financial statements
The financial statements of the Company have been prepared to comply,
in all material respects, with the accounting principles generally
accepted in India, including mandatory Accounting Standards notified
under the Companies ( Accounting Standard) Rules,2006 (as amended)
under the historical cost convention and on an accrual basis. The
accounting policies.in all material respects, have been consistently
applied by the Company and are consistent with those used in previous
year.
1.2 Use of estimates
The preparation of the financial statements is in conformity with
Indian GAAP, requiring management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure
of contingent liabilities on the date of the financial statements and
the reported amounts of revenue and expenses during the reporting year.
Although these estimates are based upon management''s best knowledge of
current events and actions,actual results could differ from these
estimates. Any revision to accounting estimates is recognised
prospectively in current and future years.
1.3 Revenue Recognitions Sales and services
Sale of goods are recognised when significant risk and rewards of
ownership of the goods have passed to buyer, which generally coincides
with dispatch of goods. Gross sales are inclusive of applicable excise
duty and exclusive of sales tax. Revenue from services are recognised
as and when such services are rendered. Revenue from scrap is
recognised on sale.
Dividend and interest income
Dividend is recognised when declared and interest income is recognised
on a time proportion basis taking into account the I amount outstanding
and the rate applicable.
1.4 Tangible and intangible fixed assets
Tangible and intangible fixed assets are stated at cost less
accumulated deprecation/amortisation and impairment loss, if any. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
1.5 Depreciation and amortisation
Depreciation is provided on written down value method on all assets
except machinery & tools for new projects which are being depreciated
on straight line method at the rates prescribed under schedule XIV. The
depreciation on revalued cost of the assets are being reduced from the
revaluation reserve.
1.6 Impairment of tangible and intangible fixed assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects
current market assessment of die time value of money and risks specific
to the asset. After impairment, depreciation provided on revised
carrying amount of the assets over its remaining useful life.
Previously recognised impairment loss is further provided or reversed
depending on changes in circumstances.
1.7 Inventories
Raw materials, stores, spares and tools are valued at lower of cost and
net realizable value. Cost of raw materials comprises of cost of
purchase, cost of conversion and other costs incurred in bringing them
to their respective present location and condition. Cost of raw
material is determined on a weighted average method.
Work in progress and finished goods are valued at lower of cost and net
realisable value. Cost includes direct materials and labour and
proportion of manufacturing overheads based on normal operating
capacity. Cost of finished goods includes excise duty. Cost determined
on a weighted average method.
Net realisable value is estimated selling price in the ordinary course
of business less estimated cost of completion and selling expenses.
1.8 Employee Benefits
Short term employee benefits are recognised as an expense in the
statement of profit and loss of the year in which the related service
is rendered.
Defined Contribution Plans
Company''s contribution paid/payable during the year to Provident
fund.ESIC and labour welfare fund are Defined contribution plans and
are accounted on accrual basis and charged to the statement of profit
and loss of the year. There are no other obligations other than the
contribution payable to respective funds.
Defined Benefit Plans
Gratuity liability is defined benefit obligation and is provided on the
basis of an actuarial valuation on projected unit credit method made at
the end of each year. The company funds the benefit through
contribution to LIC.The company recognises the actuarial gain and
losses in the statement of profit and loss in the period in which they
arise.
Company does not have policy to pay compensated absences.
1.9 Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in value is made to recognise a
decline other than temporary in the value of long term investments.
1.10 Foreign Currency Transactions
Foreign currency transaction are accounted for at the exchange rates
prevailing at the date of transaction. Gain and losses resulting from
settlement of such transaction and from the translation of monetary
assets and liabilities denominated in foreign currencies are recognised
in the statement of profit and loss.
1.11 Taxation
Provision for income tax is made for current and deferred taxes.
Provision for current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income Tax Act,
1961. Deferred tax on account of timing differences between taxable and
accounting income is accounted for by applying tax rates and laws
enacted or substantially enacted on the balance sheet date.
Deferred tax assets are recognised and carried forward only if there is
reasonable certainty of situation. However in case of carried forward
losses and unabsorbed depreciation under the Income Tax Act, 1961, the
Deferred tax asset is recognised if and only if there is a virtual
certainty backed by convincing evidence of its situation. Such assets
are reviewed at each Balance Sheet date to reassess its realisation.
Advance taxes and provision for current income taxes are presented in
the balance sheet after off-setting advance taxes paid and income tax
provisions arising in the same tax jurisdiction and where company
intends to settle the asset and liability on net basis.
Deferred tax asset and/or liability have been offset as they relate to
the same governing taxation laws.
1.12 Provisions and contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past events; it is probable that an outflow of resources
will be required to settle 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 required to settle the
obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimate.
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognised
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognised because it cannot be measured reliably. The company does not
recognise a contingent liability but discloses its existence in the
financial statements.
Contingent assets are neither recognised nor disclosed.
1.13 Leases
Lease arrangements where the risk and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognised as
operating leases. Leases rentals under operating leases are recognised
in statement of profit and loss.
1.14 Cash and cash equivalents
In the cash flow statements, cash and cash equivalents include cash in
hand, demand deposits with banks, other short term highly liquid
investments.
1.15 Earnings/floss) per share
Basic earnings per share are calculated by dividing 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, net profit or loss for the year
attributable to equity shareholders and the weighted average number of
shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares, if any.
Mar 31, 2012
(a) Basis of preparation of financial statements
The financial statements are prepared under the historical cost
convention, on accrual basis of accounting to comply in all material
respects, with the mandatory accounting standards as notified, by the.
Companies. (Accounting Standards) Rules, 2006 as amended ('the Rules')
and the relevant provisions of the Companies Act, 1956 ('the Act'). The
accounting policies have been consistently applied by the Company; and
the accounting policies not referred to otherwise, are in conformity
with India Generally Accepted Accounting Principles (Indian GAAP).
All assets and liabilities have been classified as current and
non-current as per the company's normal operating cycle and other
criteria set out in the Schedule-VI to the Companies Act, 1956. Based
on nature of products and time between the acquisition of assets for
processings and their realisation in cash and cash equivalents, the
company has ascertained its operating cycle as 12 months for the
purpose of current-non-current classification of assets and
liabilities.
(b) Use of estimates
The preparation of financial statements in conformity with the Indian
GAAP, requires management to make estimates and assumptions that may
affect the reported amounts of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and the reported amounts of incomes and expenses during the
reporting period. Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from these estimates.
(c) Revenue recognition
i) Sales & Services
Sale of goods are recognised at the time of dispatch to the customer.
Revenue from services are recognised when such services are rendered.
ii) Interest income
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
(d) Fixed assets
Tangible and Intangible assets
i) Fixed Assets are stated at cost of acquisition less accumulated
depreciation. Cost is inclusive of borrowing cost and other incidental
charges incurred up to the date of installation/put to use.
ii) Cenvat Credit availed on purchase of fixed assets is reduced from
the cost of respective assets.
iii) Adjustments arising from foreign exchange rate fluctuation
relation to liabilities attributable to fixed assets are taken to
profit and loss account
(e) Impairment of assets
As asset is impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to the Profit and Loss
account in the year in which an asset is identified as impaired. The
impairment loss recognised in prior accounting periods is reversed, if
there has been a change in the estimate or recoverable amount.
(f) Investments
i) Investment intended to be held for not more than a year are
classified as current investments. These are valued at lower of cost
and fair value.
ii) Long-term investments are stated at cost Provision for diminution
in value is made only if, in the opinion of management, such a decline
is other than temporary.
(g) Inventories are valued at lower of cost or net realizable value
after providing obsolescence, if any. Cost of inventories comprises of
cost of purchase, cost of conversion and other costs incurred in
bringing them to their respective present location and condition.
(h) Depreciation and amortization
Depreciation is provided on written down value method on all assets
except machinery & tools for new projects which are being depreciated
on straight line method at the rates prescribed under schedule XIV. The
depreciation on revalued cost of the assets are being reduced from the
revaluation reserve.
(g) Foreign currency transactions
Foreign Currency transactions on revenue accounts are translated at the
rates prevailing on the day when the expenses are incurred/income
earned Fluctuations on account of exchange rate differences are being
debited/credited to revenue account
(h) Employee Benefits:
i) Defined Contribution Plan.
Companies contribution paid/payable during the year to the Employee
Provident fund, ESIC, Labour Welfare fund are recognized in the Profit
and Loss Account
ii) Defined Benefit Plan
Gratuity: In accordance with applicable Indian laws, the Company
provides for gratuity, a defined benefit retirement plan ("Gratuity
Han") covering all employees. The gratuity Plan provides a lump sum
payment to vested employees, at retirement or termination of
employment, an amount based on the respective employee's last drawn
salary and the years of employment with the company. Liability with
regards to Gratuity Plan is accrued based on actuarial valuation at the
balance sheet date, carried out by the Life Insurance Corporation Of
India. Actuarial gain or loss is recognised immediately in the
statement of profit and loss as income or expense. The company has an
employees' gratuity fund managed by the Life Insurance Corporation of
India ("LIC").
iii) Short Term Employee benefits Short - term employee benefits
expected to be paid in exchange for the services rendered by the
employees is recognised during the period when the employee renders
service.
(j) Provisions, contingent liabilities and contingent assets A
provision is recognized when the Company has a present obligation as a
result of past events and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current best estimates. Contingent liabilities are
disclosed by way of notes to accounts. Contingent assets are hot
recognized or disclosed.
(k) Taxes on income
Tax on Income for the current year is determined on the basis of the
Income Tax Act, 1961.
Deferred tax is recognised oh timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred tax assets are recognised and carried forward to the extent
that there is a reasonable/virtual certainty that sufficient future
taxable income will be available against which such deferred tax asset
can be realised.
(I) Earnings/(loss) per share
Basic earnings/(loss) per share are calculated by dividing the net
profit/(loss) for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for any bonus shares issued during the year and also after
the balance sheet date but before the date the financial statements are
approved by the board of directors
For the purpose of calculating diluted earnings/(loss) per share, the
net profit/(loss) for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.
(m) Financial and Derivative Instruments
During the current year company has not entered into derivative/forward
contracts.
(n) Leases:
Lease arrangements where the risk and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognised as
operating leases. Leases rentals under operating leases are recognised
in profit and loss accounts.
Mar 31, 2011
1. The Financial statements are prepared under the historical cost
convention & comply in all material aspects with the applicable
accounting principles in India, accounting standards notified under
subsection (3C) of 211 of the Companies Act, 1956 & relevant provisions
of the Companies Act, 1956.
2. Fixed Assets : Expenditure which are of capital nature are
capitalized at cost, which comprises of purchase price (net of rebates
and discounts) import duties, levies and any directly attributable cost
of bringing the assets to its working condition for the intended use.
3. Depreciation: Depreciation is provided on written down value method
on all assets except machinery & tools for new projects which are being
depreciated on straight line method at the rates prescribed under
schedule XIV. The depreciation on revalued cost of the assets are being
reduced from the revaluation reserve.
4. Foreign Currency transactions: Foreign Currency transactions on
revenue accounts are translated at the rates prevailing on the day when
the expenses are incurred/ income earned. Fluctuations on account of
exchange rate differences are being debited/credited to revenue
account.
5. Revenue Recognition: Revenue is recognised at the point of dispatch
of materials to customers from stock points. Other income is accounted
on accrual basis.
6. Inventories are valued at lower of cost or net realizable value
after providing obsolescence, if any. Cost of inventories comprises of
cost of purchase, cost of conversion and other costs incurred in
bringing them to their respective present location and condition.
7. Investments: Long term Investments are valued at purchase cost.
Provision for diminution in the value of long-term investment is made
only if such decline is other than temporary in the opinion of the
management.
8. Employee Benefits:
a) Defined Contribution Plan
Companies contribution paid/payable during the year to the Employee
Provident fund ,ESIC, Labour Welfare fund are recognized in the Profit
and Loss Account
b) Defined Benefit Plan
Gratuity: In accordance with applicable Indian laws, the Company
provides for gratuity, a defined benefit retirement plan ("Gratuity
Plan" ) covering all employees. The gratuity Plan provides a lump sum
payment to vested employees, at retirement or termination of
employment, an amount based on the respective employee's last drawn
salary and the years of employment with the company. Liability with
regards to Gratuity Plan is accrued based on actuarial valuation at the
balance sheet date, carried out by the Life Insurance Corporation Of
India. Actuarial gain or loss is recognised immediately in the
statement of profit and loss as income or expense. The company has an
employees' gratuity fund managed by the Life Insurance Corporation of
India ("LIC").
c) Short term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered.
9. Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognised, subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or subsequent periods.
10. Impairment of Assets: An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
of loss is chargeable to the profit & loss account in the year in which
an asset is identified as impaired. The impairment loss recognised in
prior accounting period is reversed if there has been a change in
estimate of recoverable amount.
11. Earnings per Share:
Basic/diluted earning per share is calculated by dividing the net
profit or loss for the year attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the year.
12. Financial and Derivative Instruments
During the current year company has not entered into derivative/forward
contracts.
13. Provisions:
A provision is recognized when an enterprise has a present obligation
as a 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 management estimate
required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current
management estimates.
14. Leases:
Lease arrangements where the risk and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognised as
operating leases. Leases rentals under operating leases are recognised
in profit and loss accounts.
Mar 31, 2010
1. The Financial statements are prepared under the historical cost
convention & comply in all material aspects with the applicable
accounting principles in India, accounting standards notified under
subsection (3C) of 211 of the Companies Act, 1956 & relevant provisions
of the Companies Act, 1956.
2. Fixed Assets : Expenditure which are of capital nature are
capitalized at cost, which comprises of purchase price (net of rebates
and discounts) import duties, levies and any directly attributable cost
of bringing the assets to its working condition for the intended use.
3. Depreciation: Depreciation is provided on written down value method
on all assets except machinery & tools for new projects which are being
depreciated on straight line method at the rates prescribed under
schedule XIV. The depreciation on revalued cost of the assets are being
reduced from the revaluation reserve.
4. Foreign Currency transactions: Foreign Currency transactions on
revenue accounts are translated at the rates prevailing on the day when
the expenses are incurred/ income earned. Fluctuations on account of
exchange rate differences are being debited/credited to revenue
account.
5. Revenue Recognition: Revenue is recognised at the point of dispatch
of materials to customers from stock points. Other income is accounted
on accrual basis.
6. Inventories are valued at lower of cost or net realizable value
after providing obsolescence, if any. Cost of inventories comprises of
cost of purchase, cost of conversion and other costs incurred in
bringing them to their respective present location and condition.
7. Investments: Long term Investments are valued at purchase cost.
Provision for diminution in the value of long-term investment is made
only if such decline is other than temporary in the opinion of the
management.
8. Employee Benefits:
a) Defined Contribution Plan
Companies contribution paid/payable during the year to the Employee
Provident fund, ES1C, Labour Welfare fund are recognized in the Profit
and Loss Account
b) Defined Benefit Plan
Gratuity: In accordance with applicable Indian laws, the Company
provides for gratuity, a defined benefit retirement plan ( "Gratuity
Plan" ) covering all employees. The gratuity Plan provides a lump sum
payment to vested employees, at retirement or termination
of employment, an amount based on the respective employees last drawn
salary and the years of employment with the company. Liability with
regards to Gratuity Plan is accrued based on actuarial valuation at the
balance sheet date, carried out by the Life Insurance Corporation Of
India. Actuarial gain or loss is recognised immediately in the
statement of profit and loss as income or expense. The company has an
employees gratuity fund managed by the Life Insurance Corporation of
India ("LIC").
c) Short term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered.
9. Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognised, subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or subsequent periods.
10. Impairment of Assets: An asset is treated as impaired when the
carrying cost of the asset exceeds its recoverable value. An impairment
of loss is chargeable to the profit & loss account in the year in which
an asset is identified as impaired. The impairment loss recognised in
prior accounting period is reversed if there has been a change in
estimate of recoverable amount.
11. Earnings per Share:
Basic/diluted earning per share is calculated by dividing the net
profit or loss for the year attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the year.
12. Financial and Derivative Instruments
During the current year company has not entered into derivative/forward
contracts.
13. Provisions:
A provision is recognized when an enterprise has a present obligation
as a 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 management estimate
required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current
management estimates.
14. Leases:
Lease arrangements where the risk and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognised as
operating leases. Leases rentals under operating leases are recognised
in profit and loss accounts.