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Accounting Policies of Tube Investments of India Ltd. Company

Mar 31, 2015

1. Significant Accounting Policies

1.1. Accounting Convention

The Financial Statements of the Company are prepared under the historical cost convention, on an accrual basis, 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 Companies (Accounts) Rules, 2014. The accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year.

1.2. Presentation and Disclosure of Financial Statements

An asset has been classified as current when it satisfies any of the following criteria;

a) It is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realized within twelve months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

A liability has been classified as current when it satisfies any of the following criteria;

a) It is expected to be settled in the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within twelve months after the reporting date; or

d) The Company does not have an unconditional right to defer settlements of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other assets and liabilities have been classified as non-current.

Based on the nature of products/activities, the Company has determined its operating cycle as twelve months for the above purpose of classification as current and non-current.

1.3. Use of Estimates

The preparation of the Financial Statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the Financial Statements and the reported income and expenses like provision for employee benefits, provision for doubtful trade receivables/ advances/contingencies, provision for warranties, allowance for slow/non-moving inventories, useful life of fixed assets, provision for retrospective price revisions, provision for taxation, etc., during the reporting year. The Management believes that the estimates used in the preparation of the Financial Statements are prudent and reasonable. Future results may vary from these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

1.4. Cash and Cash Equivalents (for the purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short- term (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in value.

1.5. Cash Flow Statement

Cash flows are reported using the indirect method, whereby Profit/(Loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6. Tangible Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation and impairment losses, if any. Cost includes related taxes, duties, freight, insurance, etc. attributable to the acquisition and installation of the fixed assets but excludes duties and taxes that are recoverable from tax authorities.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

Capital Work-in-Progress: Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost and attributable interest.

1.7. Impairment of Assets

The carrying values of assets/cash generating units are reviewed at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased such reversal of impairment loss is recognised in the Statement of Profit and Loss.

1.8. Investments

a) Current investments are carried at lower of cost and fair value.

b) Non-Current investments are carried at cost. Diminution in the value of such investments, other than temporary, is provided for.

c) Cost of investments includes acquisition charges such as brokerage, fees and duties.

1.9. Inventories

a) Raw materials, stores & spare parts and stock-in-trade are valued at lower of weighted average cost and estimated net realisable value (net of allowances). Cost includes freight, taxes and duties and is net of credit under VAT and CENVAT scheme, where applicable.

b) Work-in-progress and finished goods are valued at lower of weighted average cost

and estimated net realisable value (net of allowances). Cost includes all direct costs and appropriate proportion of overheads to bring the goods to the present location and condition.

c) Due allowance is made for slow/non-moving items.

1.10. Revenue and Other Income

a) Sales are recognised on transfer of significant risk and rewards of ownership to the buyer which generally coincides with shipment or on unconditional appropriation of goods and comprise amounts invoiced for the goods, including excise duty, but excluding Sales Tax/ Value Added Tax, Quantity Discounts and Sale Returns.

b) Service revenues are recognised when services are rendered.

c) Dividend income is accounted for when the right to receive it is established.

d) Interest Income is recognised on time proportion basis.

1.11. Government Grants, Subsidies and Export Benefits

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants/subsidy will be received.

When the grant or subsidy from the Government relates to revenue, it is recognised as income on a systematic basis in the Statement of Profit or Loss over the period necessary to match them with the related costs, which they are intended to compensate.

When the grant or subsidy from the Government is in the nature of promoters'' contribution, and where no repayment is ordinarily expected, it is credited to Capital Reserve and treated as a part of the Shareholders'' funds on receipt basis.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

1.12. Employee Benefits

I. Defined Contribution Plan

a. Superannuation

The Company contributes a sum equivalent to 15% of the eligible employees salary to a Superannuation Fund administered by

trustees and managed by Life Insurance Corporation of India (LIC). The Company has no liability for future Superannuation Fund benefits other than its annual contribution and recognizes such contributions as an expense in the year in which the services are rendered.

b. Provident Fund

Contributions in respect of Employees who are not covered by Company''s Employees Provident Fund Trust are made to the Regional Provident Fund. These Contributions are recognised as expense in the year in which the services are rendered.

c. Employee State Insurance

Contributions to Employees State Insurance Scheme are recognised as expense in the year in which the services are rendered.

II. Defined Benefit Plan

a. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by LIC. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year using the Projected Unit Credit method. Actuarial gains/ losses are immediately recognised in the Statement of Profit and Loss. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The Defined Benefit Obligation recognised in the balance sheet represents the present value of the Defined Benefit Obligation less the Fair Value of Plan Assets out of which the obligations are expected to be settled and adjusted for unrecognised past service cost, if any. Any asset arising out of this calculation is limited to the past service cost plus the present value of available refunds and reduction in future contributions.

b. Provident Fund

In respect of the employees not covered in Point I.b above, contributions to the Company''s Employees Provident Fund Trust are made in accordance with the fund rules. The interest rate payable to the beneficiaries every year is being notified by the Government.

In the case of contribution to the Trust, the Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate and recognizes such obligation, if any, determined based on an actuarial valuation as at the balance sheet date, as an expense.

III. Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuation using the Projected Unit Credit method less the Fair Value of Plan Assets out of which the obligations are expected to be settled, as at the Balance Sheet date.

IV. Short Term Employee Benefits

Short term employee benefits includes short term compensated absences which is recognized based on the eligible leave at credit on the Balance Sheet date, and the estimated cost is based on the terms of the employment contract.

V. Voluntary Retirement Scheme

Compensation to employees under Voluntary Retirement Schemes is expensed in the period in which the liability arises.

1.13. Operating Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight line basis over the lease term.

1.14. Foreign Currency Transactions

Initial ecognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement as at Balance Sheet date

Foreign currency monetary items (other than derivative contracts) of the Company outstanding at the Balance Sheet date are restated at year end exchange rates.

Non-monetary items are carried at historical cost. Treatment of Exchange Differences Exchange differences arising on settlement/ restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

Accounting of Forward Contracts

The Company enters into forward exchange contracts and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising at the inception of a forward exchange contract (other than for a firm commitment or a highly probable forecast transaction) or similar instrument is amortised as expense or income over the life of the contract. Exchange differences on such a contract are recognised in the Statement of Profit and Loss in the year in which the exchange rates change. Any Profit or Loss arising on cancellation of such a contract is recognised as income or expense for the year.

1.15. Derivative Instruments and Hedge Accounting

The Company uses forward contracts and currency swaps (Derivative Contracts) to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. The Company designates these as cash flow hedges.

The use of Derivative Contracts is governed by the Company''s policies on the use of such financial derivatives consistent with the Company''s risk management strategy. The Company does not use derivative financial instruments for speculative purposes.

Derivative Contracts are initially measured at fair value, and are re-measured at subsequent reporting dates. Changes in the fair value of these Derivative Contracts that are designated and effective as hedges of future cash flows are recognised directly in "Hedge Reserve Account" under Shareholders'' Funds and the ineffective portion is recognized immediately in the Statement of Profit and Loss.

Changes in the fair value of Derivative Contracts that do not qualify for hedge accounting are recognized in the Statement of Profit and Loss as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. If any of these events occur or if a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised under Shareholders'' Funds is transferred to the Statement of Profit and Loss for the year.

1.16. Depreciation and Amortisation

Depreciation has been provided on the straight- line method based on the useful life as prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets:

Useful life and basis of Description of Assets Depreciation/Amortisation

Plant and Machinery - Special tools and special purpose machines used in door 4 Years frame products

Plant and Machinery - Electrical Appliances such as A/C, Fridge, Water 5 Years Cooler, Camera, TV, Grinder etc.

Office Equipment - Data Processing 3 Years Equipment

Vehicles - Motor Vehicles 4 Years

The Assets mentioned above are depreciated based on the Company''s estimate of their useful lives taking into consideration factors such as product life cycle, durability based on use, etc. Leasehold Land/Improvements are depreciated over the primary lease period as the right to use these assets ceases on expiry of the lease period. Individual Fixed Assets whose actual cost does not exceed Rs. 5000 are fully depreciated in the year of acquisition considering the nature and usage pattern of these assets.

Depreciation is provided pro-rata from the month of Capitalisation.

Certain fixed assets are treated as Continuous Process Plants based on technical evaluation done by the Management and are depreciated on the straight-line method based on the useful life as prescribed in Schedule II to the Companies Act, 2013.

The Company also has a system of providing additional depreciation, where, in the opinion of the Management, the recovery of the fixed asset is likely to be affected by the variation in demand and/or its condition/usability.

1.17. Research and Development

Revenue expenditure on research and development is expensed when incurred. Capital expenditure on research and development is capitalised under fixed assets and depreciated in accordance with Note 1.16 above.

1.18. Taxes on Income

Current Tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred Tax is recognised on filming differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax is measured using the tax rates and tax laws enacted or substantively enacted as at the reporting date. Deferred tax assets are recognised if there is reasonable certainty that there will be sufficient future taxable income available to realise such assets. However, if there are unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets.

Current Tax and Deferred Tax relating to items directly recognised in Reserves are recognised in Reserves and not in the Statement of Profit and Loss.

1.19. Provisions and Contingencies

Provisions are recognised when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognised in the Financial Statements.

1.20. Segment Accounting

a. The accounting policies adopted for segment reporting are in line with the accounting policies followed by the Company.

b. Segment revenue and segment results include transfers between business segments. Such transfers are accounted for at a competitive market price and are eliminated in the consolidation of the segments.

c. Expenses that are directly identifiable to segments are considered for determining the segment results. Expenses which relate to the Company as a whole and are not allocable to segments are included under unallocated corporate expenses.

d. Segment assets and liabilities include those directly identifiable with the respective segments. Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and are not allocable to any segment.

1.21. Borrowing Costs

Borrowing Costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the borrowing costs. Borrowing Costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying asset upto the date the asset is ready for its intended use is added to the cost of the assets. Capitalisation of Borrowing Costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.22. Earnings Per Share

Basic Earnings Per Share is calculated by dividing the Net Profit for the period attributable to Equity Shareholders by the weighted average number of Equity Shares outstanding during the period.

The weighted average number of Equity Shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential Equity Shares, that have changed the number of Equity Shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to Equity Share holders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential Equity Shares.

1.23. Employees Stock Option

Stock options granted to the employees under the stock option scheme are evaluated as per the accounting treatment prescribed by the Employee Stock Option Scheme and Employee Stock Purchase Scheme Guidelines, 1999 issued by Securities Exchange Board of India. The Company follows the intrinsic value method of accounting for the options and accordingly, the excess of market value of the stock options as on date of grant, if any, over the exercise price of the options is recognized as deferred employee compensation and is charged to the Statement of Profit and Loss on graded vesting basis over the vesting period of the options.


Mar 31, 2014

1.1. Accounting Convention

The Financial Statements of the Company are prepared under the historical cost convent on, on an accrual basis, in accordance with the Generally Accepted Account ng Principles in India (Indian GAAP) to comply with the Account ng Standards notified under sect on 211(3C) of the Companies Act, 1956 ("1956 Act") (which cont nue to be applicable in respect of sect on 133 of the Companies Act, 2013 ("2013 Act") in terms of General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs)/issued by the Inst tute of Chartered Accountants of India (ICAI), as applicable, and the relevant provisions of the "1956 Act"/"2013 Act", as applicable. The account ng policies adopted in the preparat on of the Financial Statements are consistent with those followed in the previous year.

1.2. Presentation and disclosure of Financial Statements

An asset has been classified as current when it satisfies any of the following criteria;

a) It is expected to be realized in, or is intended for sale or consumpt on in, the Company''s normal operat ng cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realized within twelve months after the report ng date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to set le a liability for at least twelve months af er the report ng date.

A liability has been classified as current when it satisfies any of the following criteria;

a) It is expected to be set led in the Company''s normal operat ng cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be set led within twelve months after the report ng date; or

d) The company does not have an uncondit onal right to defer set lements of the liability for at least twelve months after the report ng date. Terms of a liability that could, at the opt on of the counterparty, result in its set lement by the issue of equity instruments do not affect its classificat on.

All other assets and liabilit es have been classified as non-current.

Based on the nature of products/activities, the Company has determined its operat ng cycle as twelve months for the above purpose of classifi cat on as current and non-current.

1.3. Use of Estimates

The preparat on of the Financial Statements in conformity with Indian GAAP requires the Management to make est mates and assumpt ons considered in the reported amounts of assets and liabilit es (including cont ngent liabilit es) as of the date of the Financial Statements and the reported income and expenses like provision for employee benefits, provision for doubt ul trade receivables/advances/cont ngencies, provision for warrant es, allowance for slow/non-moving inventories, useful life of fixed assets, provision for retrospect ve price increases on purchases, provision for taxat on, etc., during the report ng year. The Management believes that the est mates used in the preparat on of the Financial Statements are prudent and reasonable. Future results may vary from these est mates and the diff erences between the actual results and the est mates are recognised in the periods in which the results are known/materialise.

1.4. Cash and Cash Equivalents (for the purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term (with an original maturity of three months or less from the date of acquisit on), highly liquid investments that are readily convert ble into known amounts of cash and which are subject to insignifi cant risk of change in value.

1.5. Cash Flow Statement

Cash flows are reported using the indirect method, whereby Profi t/(Loss) before extraordinary items and tax is adjusted for the eff ects of transact ons of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operat ng, invest ng and financing activities of the Company are segregated based on the available informat on.

1.6. Tangible Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciat on and impairment losses, if any. Cost includes related taxes, dut es, freight, insurance, etc. at ributable to the acquisit on and installat on of the fixed assets but excludes dut es and taxes that are recoverable from tax authorit es. Borrowing costs are capitalised as part of qualifying fixed assets.

Machinery spares which can be used only in connect on with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Fixed assets ret red from act ve use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

Capital Work-in-Progress: Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost and at ributable interest.

1.7. Impairment of Assets

The carrying values of assets/cash generat ng units are reviewed at each Balance Sheet date to determine whether there is any indicat on of impairment of the carrying amount of the Company''s assets. If any indicat on exists, an asset''s recoverable amount is est mated. An impairment loss is recognised whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discount ng the future cash flows to their present value based on an appropriate discount factor. When there is indicat on that an impairment loss recognised for an asset in earlier account ng periods no longer exists or may have decreased such reversal of impairment loss is recognised in the Statement of profit and Loss.

1.8. Investments

a) Current investments are carried at lower of cost and fair value.

b) Non-Current investments are carried at cost. Diminut on in the value of such investments, other than temporary, is provided for.

1.9. Inventories

a) Raw materials, stores & spare parts and stock- in-trade are valued at lower of weighted average cost and est mated net realisable value (net of allowances). Cost includes freight, taxes and dut es and is net of credit under VAT and CENVAT scheme, where applicable.

b) Work-in-progress and finished goods are valued at lower of weighted average cost (net of allowances) and est mated net realisable value. Cost includes all direct costs and appropriate proport on of overheads to bring the goods to the present locat on and condit on.

c) Due allowance is made for slow/non-moving items.

1.10. Revenue and Other Income

a) Sales are recognised on shipment or on uncondit onal appropriat on of goods and comprise amounts invoiced for the goods, including excise duty, but excluding Sales Tax/ Value Added Tax, Quant ty Discounts and Sale Returns.

b) Service revenues are recognised when services are rendered.

c) Dividend income is accounted for when the right to receive it is established.

d) Interest Income is recognised on t me proport on basis.

1.11. Government Grants, Subsidies and Export benefits

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the condit ons at ached to them and the grants/subsidy will be received.

When the grant or subsidy from the Government relates to revenue, it is recognised as income on a systemat c basis in the Statement of profit or Loss over the period necessary to match them with the related costs, which they are intended to compensate.

When the grant or subsidy from the Government is in the nature of promoters'' contribut on, where no repayment is ordinarily expected in respect thereof, it is credited to Capital Reserve and treated as a part of the Shareholders'' funds on receipt basis.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

1.12. Employee benefits

I. Defined Contribution Plan

a. Superannuation

The Company contributes a sum equivalent to 15% of the eligible employees salary to a Superannuat on Fund administered by trustees and managed by Life Insurance Corporat on of India (LIC). The Company has no liability for future Superannuat on Fund benefits other than its annual contribut on and recognises such contribut ons as an expense in the year incurred.

b. Provident Fund

Contribut ons in respect of Employees who are not covered by Company''s Employees Provident Fund Trust are made to the Regional Provident Fund. These Contribut ons are recognised as expense in the year in which the services are rendered.

II. Defined benefit Plan

a. Gratuity

The Company makes annual contribut on to a Gratuity Fund administered by trustees and managed by LIC. The Company accounts its liability for future gratuity benefits based on actuarial valuat on, as at the Balance Sheet date, determined every year using the Projected Unit Credit method less the Fair Value of Plan Assets out of which the obligat ons are expected to be set led. Actuarial gains/losses are immediately recognised in the Statement of profit and Loss.

b. Provident Fund

In respect of the employees not covered in Point I.b. above, contribut ons to the Company''s Employees Provident Fund Trust are made in accordance with the Fund rules. The interest rate payable to the benefi ciaries every year is being notified by the Government.

In the case of contribut on to the Trust, the Company has an obligat on to make good the short all, if any, between the return from the investments of the Trust and the notified interest rate and recognises such obligat on, determined based on an actuarial valuat on, as an expense.

III. Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuat on using the Projected Unit Credit method less the Fair Value of Plan Assets out of which the obligat ons are expected to be set led, as at the Balance Sheet date.

IV. Short Term Employee benefits

Short term employee benefits includes short term compensated absences which is recognised based on the eligible leave at credit on the Balance Sheet date, and the est mated cost is based on the terms of the employment contract.

V. Voluntary Retirement Scheme

Compensat on to employees under Voluntary Ret rement Schemes is expensed in the period in which the liability arises.

1.13. Operating Leases

Leases where the lessor effectively retains substant ally all the risks and benefits of ownership of the leased assets are classified as Operat ng Leases. Operat ng lease payments are recognised as an expense in the Statement of profit and Loss on a straight line basis.

1.14. Foreign Currency Transactions

Initial recognition

Transact ons in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transact on or at rates that closely approximate the rate at the date of the transact on.

Measurement

Foreign currency monetary items (other than derivat ve contracts) of the Company outstanding at the Balance Sheet date are restated at year end exchange rates.

Non-monetary items are carried at historical cost.

Treatment of Exchange Diff erences

Exchange diff erences arising on set lement/ restatement of foreign currency monetary assets and liabilit es of the Company are recognised as income or expense in the Statement of profit and Loss.

Accounting of Forward Contracts

The Company enters into forward exchange contracts and other instruments that are in

substance a forward exchange contract to hedge its risks associated with foreign currency fl uctuat ons. The premium or discount arising at the incept on of a forward exchange contract (other than for a fi rm commitment or a highly probable forecast transact on) or similar instrument is amort sed as expense or income over the life of the contract. Exchange diff erences on such a contract are recognised in the Statement of profit and Loss in the year in which the exchange rates change. Any profit or loss arising on cancellat on of such a contract is recognised as income or expense for the year.

1.15. Derivative Instruments and Hedge Accounting

The Company uses forward contracts and currency swaps (Derivat ve Contracts) to hedge its risks associated with foreign currency fl uctuat ons relating to highly probable forecast transact ons. The Company designates these as cash flow hedges.

The use of Derivat ve Contracts is governed by the Company''s policies on the use of such financial derivat ves consistent with the Company''s risk management strategy. The Company does not use derivat ve fi nancial instruments for speculat ve purposes.

Derivat ve Contracts are init ally measured at fair value, and are re-measured at subsequent report ng dates. Changes in the fair value of these Derivat ve Contracts that are designated and eff ect ve as hedges of future cash flows are recognised directly in "Hedge Reserve Account" under Shareholders'' Funds and the ineffective port on is recognised immediately in the Statement of profit and Loss.

Changes in the fair value of Derivat ve Contracts that do not qualify for hedge account ng are recognised in the Statement of profit and Loss as they arise.

Hedge account ng is discont nued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifi es for hedge account ng. If any of these events occur or if a hedged transact on is no longer expected to occur, the net cumulat ve gain or loss recognised under Shareholders'' Funds is transferred to the Statement of profit and Loss for the year.

1.16. Depreciation and Amortisation

Depreciat on has been provided on the straight- line method as per the rates prescribed in

Schedule XIV to the Companies Act, 1956 except in respect of the following categories of assets, where depreciat on is provided based on useful life of the assets assessed as under:

Useful life

and Basis of Description of Assets .

Depreciation/

Amortisation

Special tools and special purpose 4 Years

machines used in door frame products

Furniture and Fixtures 5 Years

Motor Vehicles 4 Years

Office Equipment (including Data 3 Years

Processing Equipment)

Leasehold Land/Improvements Over the primary

lease period

Individual Fixed Assets whose actual cost does not exceed " 5000/- are fully depreciated in the year of acquisit on.

Depreciat on is provided pro-rata from the month of Capitalisat on.

Certain fixed assets are treated as Cont nuous Process Plants based on technical evaluat on done by the Management and are depreciated as per rates prescribed in Schedule XIV to the Companies Act, 1956. The Company also has a system of providing addit onal depreciat on, where, in the opinion of the Management, the recovery of the fixed asset is likely to be affected by the variat on in demand and/or its condit on/usability.

1.17. Research and Development

Revenue expenditure on research and development is expensed when incurred. Capital expenditure on research and development is capitalised under fixed assets and depreciated in accordance with Note 1.16 above.

1.18. Taxes on Income

Current Tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax is recognised on t ming diff erences; being the diff erences between taxable income and account ng income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax is measured using the tax rates and tax laws enacted or substant vely enacted as at the report ng date.

Deferred tax assets are recognised if there is reasonable certainty that there will be suffi cient future taxable income available to realise such assets. However, if there are unabsorbed depreciat on and carry forward of losses, deferred tax assets are recognised only if there is virtual certainty that there will be suffi cient future taxable income available to realise such assets.

1.19. Provisions and Contingencies

Provisions are recognised when there is a present obligat on as a result of past events and when a reliable est mate of the amount of obligat on can be made. Cont ngent liability is disclosed for (i) Possible obligat on which will be confi rmed only by future events not wholly within the control of the Company or (ii) Present obligat ons arising from past events where it is not probable that an out low of resources will be required to set le the obligat on or a reliable est mate of the amount of the obligat on cannot be made. Cont ngent assets are not recognised in the Financial Statements .

1.20. Segment Accounting

a. The Generally Accepted Account ng Principles used in the preparat on of the Financial Statements are applied to record revenue and expenditure in individual segments.

b. Segment revenue and segment results include transfers between business segments. Such transfers are accounted for at a compet t ve market price and are eliminated in the consolidat on of the segments.

c. Expenses that are directly ident fi able to segments are considered for determining the segment results. Expenses which relate to the Company as a whole and are not allocable to segments are included under unallocated corporate expenses.

d. Segment assets and liabilit es include those directly ident fi able with the respect ve segments. Unallocated corporate assets and liabilit es represent the assets and liabilit es that relate to the Company as a whole and are not allocable to any segment.

1.21. Borrowing Costs

Borrowing Costs include interest, amort sat on of ancillary costs incurred and exchange diff erences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the borrowing costs. Borrowing Costs, allocated to and ut lised for qualifying assets, pertaining to the period from commencement of act vit es relating to construct on/development of the qualifying asset upto the date the asset is ready for its intended use is added to the cost of the assets. Capitalisat on of Borrowing Costs is suspended and charged to the Statement of profit and Loss during extended periods when act ve development activity on the qualifying assets is interrupted.

1.22. Earnings Per Share

Basic Earnings Per Share is calculated by dividing the net profit for the period at ributable to equity shareholders by the weighted average number of Equity Shares outstanding during the period.

The weighted average number of Equity Shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potent al Equity Shares, that have changed the number of Equity Shares outstanding, without a corresponding change in resources. For the purpose of calculat ng diluted earnings per share, the net profit for the period at ributable to Equity Share holders and the weighted average number of shares outstanding during the period is adjusted for the eff ects of all dilut ve potent al Equity Shares.

1.23. Employees Stock Option

Stock opt ons granted to the employees under the stock opt on scheme are evaluated as per the account ng treatment prescribed by the Employee Stock Opt on Scheme and Employee Stock Purchase Scheme Guidelines, 1999 issued by Securit es Exchange Board of India. The Company follows the intrinsic value method of account ng for the opt ons and accordingly, the excess of market value of the stock opt ons as on date of grant, if any, over the exercise price of the opt ons is recognised as deferred employee compensat on and is charged to the Statement of profit and Loss on graded vest ng basis over the vest ng period of the opt ons.

b) Terms/Rights at ached to class of shares:

The Company has only one class of shares referred to as Equity Shares having a par value of Rs.2 each. The holders of Equity Shares are ent tled to one vote per share. Dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meet ng, except in case of interim dividend. Repayment of capital will be in proport on to the number of Equity Shares held.

d) Status on Global Depository Receipts:

The aggregate number of Global Depository Receipts (GDRs) outstanding as at 31 March 2014 is 49,30,630 (As at 31 March 2013 52,23,460) each represent ng one Equity Share of Rs.2 face value. GDR % against total number of shares is 2.64% (As at 31 March 2013 2.80%). The GDRs carry the same terms/rights at ached to Equity Shares of the Company.

During the past 5 years, the Company has allot ed 21,12,766 (Previous Year 18,99,308) Shares of Rs.2 each to employees, pursuant to the exercise of their opt on under the Employees Stock Opt on Scheme.

The total number of such Opt ons outstanding as at 31 March 2014 is 8,11,595 (Previous Year 11,84,216) and each Opt on is exercisable into one equity share of Rs.2 face value within three/six years from the date of vest ng.

3. Reserves and Surplus

a) Represents the amount transferred, for a sum equal to the face value of the Equity Shares, at the t me of Buy- back.

b) Subsequent to the Balance Sheet date of 31 March 2013 and before the book closure date for declarat on of the final dividend for the year 2012-13, 68,636 (Previous Year 48,640) Equity Shares were allot ed under the Employee Stock Opt on Scheme to employees and dividend of Rs.0.0034 Cr. (Previous Year Rs.0.0049 Cr.) on these Shares were paid. The total amount of Rs.0.0034 Cr. (Previous Year Rs.0.0057 Cr.) including dividend distribut on tax, have been appropriated from the opening surplus in the Statement of profit and Loss.

c) Represents amount writen back on account of set-off of Dividend Distribut on Tax paid by Subsidiaries on dividend distributed to the Company, against Dividend Distribut on Tax payable by the Company.

4.1. Nature of Security

4.1.1. Secured, Listed and Rated Non-Convertible Debentures (NCDs)

(a) NCDs'' with Coupon of 10.15%, 9.99%, 9.81%, 8.80%, 9.95% and 9.90% are secured by a pari passu first charge on certain immovable propert es of the Company.

(b) NCDs'' with Coupon of 10.04% and 10.045% are raised with a pari passu first charge on certain immovable propert es of the Company. The Company is in the process of creat ng the security within the applicable t me limit.

(c) NCD with Coupon of 8.50% is secured by a pari passu first charge on all the Plant & Machinery and certain immovable propert es of the Company.

4.1.2. Rupee Term Loan

Term Loan from IDBI Bank was secured by a pari passu first charge on all the Plant & Machinery of the Company.

4.1.3. Foreign Currency Term Loans

(a) External Commercial Borrowing - USD 15 Mio. (classified as "Other Current Liabilit es" as at 31 March 2014) is secured by a pari passu fi rst charge on all the Plant & Machinery of the Company.

(b) External Commercial Borrowing - USD 9.32 Mio. (Outstanding as at 31 March 2014 - USD 3.10 Mio. classified as "Other Current Liabilit es") is secured by a pari passu first charge on all the Plant & Machinery and certain immovable propert es of the Company.

4.1.4. Long Term Buyers Credit

Long Term Buyers Credit from Bank of Tokyo is secured by a pari passu first charge on all the Plant & Machinery of the Company.

4.2.2. Rupee Term Loan

Interest at the rate of IDBI Bank''s Base Rate plus 0.50% p.a. was paid monthly t ll the date of repayment,

7. Trade Payables

Based on, and to the extent of informat on received from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), and relied upon by the auditors, the relevant part culars are furnished below:

(a) The 11.05% Debentures are secured by a pari passu first charge on certain immovable propert es of the Company. The Debentures are redeemable at par, on 26 September 2014.

(b) The 10.95% Debentures are secured by a pari passu first charge on certain immovable propert es of the Company. The Debentures are redeemable at par, on 15 December 2014.

(c) The 11.70% Debentures were secured by a pari passu first charge on all the Plant & Machinery and certain immovable propert es of the Company. The Debentures were redeemed at par on 25 February 2014.

(d) The 9.75% & 8.75% Debentures were secured by a pari passu first charge on certain immovable propert es of the Company. The Debentures were redeemed at par on 25September 2013 and 7 May 2013 respect vely.

1. Depreciat on/Amort sat on for the year includes depreciat on amount ng to Rs.5.10 Cr. (Previous Year Rs.2.25 Cr.) charged addit onally on certain assets.

2. Net Block of Buildings includes Improvement to Buildings Rs.10.22 Cr. (Previous Year Rs.10.61 Cr.) constructed on Leasehold Land.

3. Previous Year Figures are given in brackets.

Notes:

a. During the previous year, the Company acquired 22.87% stake in Financiere C10 SAS (FC10), an Overseas Subsidiary in France at an investment of Rs.16.55 Cr, pursuant to which FC10 became a Wholly Owned Overseas Subsidiary of the Company. During the year, the final considerat on of Rs.1.01 Cr based on the terms of the contract has been paid to the erstwhile Shareholders.

b. During the previous year the Company had decided to voluntarily liquidate TICI Motors (Wuxi) Company Limited, a Wholly Owned Overseas Subsidiary in China and consequently a sum of Rs.3.81 Cr. was provided towards the diminut on in the value of investment. During the year, consequent to the complet on of the liquidat on process, the Company has received an amount of Rs.0.06 Cr. towards proceeds on liquidat on of the said Wholly Owned Overseas Subsidiary. As a result, the Company has writen back the provision for diminut on in the value of the Investment of Rs.3.81 Cr. and has also writen off the net carrying value of Investment amount ng to Rs.3.75 Cr.

c. During the year, the Company subscribed to 50,45,455 Equity Shares of Rs.10 each of Cholamandalam MS General Insurance Company Limited, a Subsidiary, offered on Rights basis at Rs.110 per share amount ng to Rs.55.50 Cr.

d. During the year, the Company subscribed to 20,00,000 Equity Shares of Rs.10 each of TI Tsubamex Private Limited, a joint venture ent ty, at Rs.10 per share amount ng to Rs.2.00 Cr.

e. During the year, the Company subscribed to 3,90,562 Equity Shares of Rs.10 each of Coromandel Engineering Company Limited, offered on Rights basis at Rs.20 per share amount ng to Rs.0.78 Cr.

f. During the year, the Company purchased 24,00,000 Equity Shares of Rs.10 each of Cauvery Power Generat on Chennai Private Limited, at the cost of Rs.2.41 Cr.

During the year, the Company has invested an aggregate amount of Rs.716.00 Cr. (Previous Year Rs.985.54 Cr.) in units of various Cash Management Schemes of Mutual Funds, for the purpose of deployment of temporary cash surpluses. The total considerat on on sale of these units during the year was Rs.717.51 Cr. (Previous Year Rs.989.52 Cr.).

Draf Assessment Orders received from Income Tax Authorit es and Show Cause Not ces received from various other Government Authorit es, pending adjudicat on, have not been considered as Cont ngent Liabilit es.


Mar 31, 2013

1.1 Accounting Convention

The financial statements of the Company are prepared under the historical cost convention, on an accrual basis, in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notifi ed by the Government of India/ issued by the Institute of Chartered Accountants of India (ICAI), as applicable, and the relevant provisions of the Companies Act, 1956. The accounti ng policies adopted in the preparation of the fi nancial statements are consistent with those followed in the previous year.

1.2 Presentation and disclosure of financial statements

An asset has been classifi ed as current when it satisfies any of the following criteria;

a) It is expected to be realised in, or is intended for sale or consumpti on in, the Company''s normal operating cycle;

b) i t is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to sett le a liability for at least twelve months after the reporting date.

A liability has been classifi ed as current when it satisfies any of the following criteria;

a) It is expected to be settled in the Company''s normal operating cycle;

b) i t is held primarily for the purpose of being traded;

c) It is due to be settled within twelve months after the reporting date; or

d) The Company does not have an unconditional right to defer settlements of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other assets and liabilities have been classified as non-current.

Based on the nature of products/activities, the Company has determined its operating cycle as twelve months for the above purpose of classification as current and non-current.

1.3 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the fi nancial statements and the reported income and expenses like provision for employee benefits, provision for doubtful trade receivables/advances/contingencies, provision for warranties, allowance for slow/ non-moving inventories, useful life of fixed assets, provision for retrospective price increases on purchases, provision for taxation, etc., during the reporting year. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

1.4 Tangible Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation and impairment losses, if any. Cost includes related taxes, duties, freight, insurance, etc., attributable to the acquisition and installation of the fixed assets but excludes duti es and taxes that are recoverable from tax authorities. Borrowing costs are capitalised as part of qualifying fixed assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefi ts from such asset beyond its previously assessed standard of performance. Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

Capital Work-in-Progress: Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost and attributable interest.

1.5 Impairment of Assets

The carrying values of assets/cash generating units are reviewed at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased such reversal of impairment loss is recognised in the Statement of Profit and Loss.

1.6 Investments

a) Current investments are carried at lower of cost and fair value.

b) Non-Current investments are carried at cost. Diminution in the value of such investments, other than temporary, is provided for.

1.7 Inventories

a) Raw materials, stores & spare parts and stock- in-trade are valued at lower of weighted average cost and estimated net realisable value (net of allowances). Cost includes freight, taxes and duties and is net of credit under VAT and CENVAT scheme, where applicable.

b) Work-in-progress and finished goods are valued at lower of weighted average cost and estimated net realisable value (net of allowances). Cost includes all direct costs and appropriate proportion of overheads to bring the goods to the present location and condition.

c) Due allowance is made for slow/non-moving items.

1.8 Revenue and Other Income

a) Sales are recognised on shipment or on unconditional appropriation of goods and comprise amounts invoiced for the goods, including Excise Duty, but excluding Sales Tax/ Value Added Tax, Quantity Discounts and Sale Returns.

b) Service revenues are recognised when services are rendered.

c) Dividend income is accounted for when the right to receive it is established.

d) Interest income is recognised on time proportion basis.

1.9 Government grants, subsidies and export benefits

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants/subsidy will be received.

When the grant or subsidy from the Government relates to revenue, it is recognised as income on a systematic basis in the Statement of Profit and loss over the period necessary to match them with the related costs, which they are intended to compensate.

When the grant or subsidy from the Government is in the nature of promoters'' contribution, where no repayment is ordinarily expected in respect thereof, it is credited to Capital Reserve and treated as a part of the Shareholders'' Funds on receipt basis.

Export benefi ts are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

1.10 Employee Benefits

I. Defined Contribution Plan

a. Superannuation

The Company contributes a sum equivalent to 15% of the eligible employees salary to a Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). The Company has no liability for future Superannuation Fund benefits other than its annual contribution and recognises such contributions as an expense in the year incurred.

b. Provident Fund

Contributions in respect of Employees who are not covered by Company''s Employees Provident Fund Trust are made to the Regional Provident Fund. These Contributions are recognised as expense in the year in which they are incurred.

II. Defined Benefit Plan

a. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by LIC. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year using the Projected Unit Credit method less the Fair Value of Plan Assets out of which the obligations are expected to be settled. Actuarial gains/losses are immediately recognised in the Statement of Profit and Loss.

b. Provident Fund

In respect of the employees not covered in Point I.b above, contributions to the Company''s Employees Provident Fund Trust are made in accordance with the Fund rules. The interest rate payable to the benefi ciaries every year is being notified by the Government.

In the case of contribution to the Trust, the Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate and recognises such obligation, determined based on an actuarial valuation, as an expense.

III. Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuation using the Projected Unit Credit method less the Fair Value of Plan Assets out of which the obligations are expected to be settled, as at the Balance Sheet date.

IV. Short Term Employee Benefits

Short term employee benefits includes short term compensated absences which is recognised based on the eligible leave at credit on the Balance Sheet date, and the esti mated cost is based on the terms of the employment contract.

V. Voluntary Retirement Scheme Compensation to employees under Voluntary Retirement Schemes is expensed in the period in which the liability arises.

1.11 Operating Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of Profit and Loss as per the lease terms.

1.12 Foreign Currency Transactions Initial recognition

Transacti ons in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement

Foreign currency monetary items (other than Derivative Contracts) of the Company outstanding at the Balance Sheet date are restated at year end exchange rates.

Non-monetary items are carried at historical cost.

Treatment of Exchange Differences

Exchange differences arising on settlement/ restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

Accounting of forward contracts

The Company enters into forward exchange contracts and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising at the inception of a forward exchange contract (other than for a fi rm commitment or a highly probable forecast transaction) or similar instrument is amortised as expense or income over the life of the contract. Exchange differences on such a contract are recognised in the Statement of Profit and Loss in the year in which the exchange rates change. Any profi t or loss arising on cancellation of such a contract is recognised as income or expense for the year.

1.13 Derivative Instruments and Hedge Accounting

The Company uses forward contracts and currency swaps (Derivative Contracts) to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. The Company designates these as cash flow hedges.

The use of Derivative Contracts is governed by the Company''s policies on the use of such financial derivatives consistent with the Company''s risk management strategy. The Company does not use derivative financial instruments for speculative purposes.

Derivative Contracts are initially measured at fair value, and are re-measured at subsequent reporting dates. Changes in the fair value of these Derivati ve Contracts that are designated and effective as hedges of future cash flows are recognised directly in "Hedge Reserve Account" under Shareholders'' Funds and the ineffective portion is recognised immediately in the Statement of Profit and Loss.

Changes in the fair value of Derivative Contracts that do not qualify for hedge accounting are recognised in the Statement of Profit and Loss as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. If any of these events occur or if a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised under Shareholders'' Funds is transferred to the Statement of Profit and Loss for the year.

1.14 Depreciation and Amortisation

Depreciation has been provided on the straight- line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 except in respect of the following categories of assets, where depreciation is provided based on useful life of the assets assessed as under: individual Fixed Assets whose actual cost does not exceed Rs.5000 are fully depreciated in the year of acquisition.

Depreciation is provided pro-rata from the month of Capitalisation.

Certain fi xed assets are treated as Continuous Process Plants based on technical evaluation done by the Management and are depreciated as per rates prescribed in Schedule XIV to the Companies Act, 1956. The Company also has a system of providing additional depreciation, where, in the opinion of the Management, the recovery of the fixed asset is likely to be affected by the variation in demand and/or its condition/ usability.

1.15 Research and Development

Revenue expenditure on research and development is expensed when incurred. Capital expenditure on research and development is capitalised under fixed assets and depreciated in accordance with Note 1.14 above.

1.16 Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences; being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and tax laws enacted or substantively enacted as at the reporting date. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Other deferred tax assets are recognised if there is reasonable certainty that there will be sufficient future taxable income available to realise such assets.

1.17 Provisions and Contingencies

Provisions are recognised when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Conti ngent liability is disclosed for (i) Possible obligation which will be confi rmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements.

1.18 Segment Accounting

a. The Generally Accepted Accounting Principles used in the preparation of the financial statements are applied to record revenue and expenditure in individual segments.

b. Segment revenue and segment results include transfers between business segments. Such transfers are accounted for at a competitive market price and are eliminated in the consolidation of the segments.

c. Expenses that are directly identifiable to segments are considered for determining the segment results. Expenses which relate to the Company as a whole and are not allocable to segments are included under unallocated corporate expenses.

d. Segment assets and liabiliti es include those directly identifiable with the respective segments. Unallocated corporate assets and liabiliti es represent the assets and liabilities that relate to the Company as a whole and are not allocable to any segment.

1.19 Borrowing Costs

Borrowing Costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the borrowing costs. Borrowing Costs, allocated to and uti lised for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying asset upto the date the asset is ready for its intended use is added to the cost of the assets. Capitalisation of Borrowing Costs is suspended and charged to the Statement of Profi t and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.20 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of Equity Shares outstanding during the period.

The weighted average number of Equity Shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potenti al Equity Shares, that have changed the number of Equity Shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity share holders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential Equity Shares.

1.21 Employees Stock Option

Stock Options granted to the employees under the Stock Opti on Scheme are evaluated as per the accounting treatment prescribed by the Employee Stock Opti on Scheme and Employee Stock Purchase Scheme Guidelines, 1999 issued by the Securiti es and Exchange Board of India. The Company follows the intrinsic value method of accounti ng for the Opti ons and accordingly, the excess of market value of the Stock Options as on date of grant, if any, over the exercise price of the Opti ons is recognised as deferred employee compensati on and is charged to the Statement of Profi t and Loss on graded vesting basis over the vesting period of the Options.


Mar 31, 2012

1.1 Accounting Convention

The financial statements of the Company are prepared under the historical cost convention, on an accrual basis, in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified by the Government of India/ issued by the Institute of Chartered Accountants of India (ICAI), as applicable, and the relevant provisions of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Presentation and disclosure of financial statements

For the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. Though adoption of revised Schedule VI does not impact recognition and measurement principles followed, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

An asset has been classified as current when it satisfies any of the following criteria;

a) It is expected to be realised in, or is intended for sale or consumption in, the Company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within twelve months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

A liability has been classified as current when it satisfies any of the following criteria;

a) It is expected to be settled in the Company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within twelve months after the reporting date; or

d) The Company does not have an unconditional right to defer settlements of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other assets and liabilities have been classified as non-current.

1.3 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses like provision for employee benefits, provision for doubtful trade receivables/ advances/contingencies, provision for warranties, allowance for slow/non-moving inventories, useful life of fixed assets, provision for retrospective price increases on purchases, provision for taxation, etc., during the reporting year. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

1.4 Tangible Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation and impairment losses, if any. Cost includes related taxes, duties, freight, insurance, etc., attributable to the acquisition and installation of the fixed assets but excludes duties and taxes that are recoverable from tax authorities. Borrowing costs are capitalised as part of qualifying fixed assets. Exchange differences arising on restatement/ settlement of long term foreign currency borrowings relating to acquisition of depreciable fixed assets are recognised in the Statement of Profit and Loss.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised

and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

Capital Work-in-Progress: Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost and attributable interest.

1.5 Impairment of Assets

The carrying values of assets/cash generating units are reviewed at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased such reversal of impairment loss is recognised in the Statement of Profit and Loss.

1.6 Investments

a) Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as Current Investments. All other investments are classified as Non-Current Investments.

b) Non-Current Investments are carried at cost. Diminution in the value of such investments, other than temporary, is provided for.

c) Current Investments are carried at lower of cost and fair value.

1.7 Inventories

a) Raw materials, stores & spare parts and traded goods are valued at lower of weighted average cost (net of allowances) and estimated net realisable value. Cost includes freight, taxes and duties and is net of credit under VAT and CENVAT scheme, where applicable.

b) Work-in-process and finished goods are valued at lower of weighted average cost (net of allowances) and estimated net realisable value. Cost includes all direct costs and appropriate proportion of overheads to bring the goods to the present location and condition.

c) Due allowance is made for slow/non-moving items, based on Management estimates.

1.8 Revenue and Other Income

a) Sales are recognised on shipment or on unconditional appropriation of goods and comprise amounts invoiced for the goods, including excise duty, but excluding Sales Tax/ Value Added Tax and Quantity Discounts.

b) Service revenues are recognised when services are rendered.

c) Dividend income is accounted for when the right to receive it is established as on the date of Balance Sheet.

d) Interest Income is recognised on time proportion basis.

1.9 Government grants, subsidies and export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants/subsidy will be received.

When the grant or subsidy from the Government relates to revenue, it is recognised as income on a systematic basis in the statement of profit and loss over the period necessary to match them with the related costs, which they are intended to compensate.

When the grant or subsidy from the Government is in the nature of promoters' contribution, where no repayment is ordinarily expected in respect thereof, it is credited to Capital Reserve and treated as a part of the Shareholders' funds on receipt basis.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

1.10 Employee Benefits

I. Defined Contribution Plan

a) Superannuation

The Company contributes a sum equivalent to 15% of the eligible employees salary to a Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). The Company has no liability for future Superannuation Fund benefits other than its annual contribution and recognises such contributions as an expense in the year incurred.

b) Provident Fund

Contributions are made to the Company's Employees Provident Fund Trust/Regional Provident Fund in accordance with the Fund rules. The interest rate payable to the beneficiaries every year is being notified by the Government.

In the case of contribution to the Trust, the Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate and recognizes such obligation as an expense.

II. Defined Benefit Plan

Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by LIC. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year using the Projected Unit Credit method. Actuarial gains/ losses are immediately recognised in the Statement of Profit and Loss.

III. Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuation using the Projected Unit Credit method, as at the Balance Sheet date.

IV. Short Term Employee Benefits

Short term employee benefits includes short term compensated absences which is recognised based on the eligible leave at credit on the Balance Sheet date, and the estimated cost is based on the terms of the employment contract.

V. Voluntary Retirement Scheme

Compensation to employees under Voluntary Retirement Schemes is expensed in the period in which the liability arises.

1.11 Operating Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognised as an expense in the revenue account as per the lease terms.

1.12 Foreign Currency Transactions

a) Initial recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

b ) Measurement

Foreign currency monetary items (other than derivative contracts) of the Company outstanding at the Balance Sheet date are restated at year end exchange rates. Non-monetary items are carried at historical cost.

c) Treatment of exchange differences

Exchange differences arising on settlement/ restatement of short-term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

d) Accounting of forward contracts

The Company enters into forward exchange contracts and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising at the inception of a forward exchange contract (other than for a firm commitment or a highly probable forecast transaction) or similar instrument is amortised as expense or income over the life of the contract. Exchange differences on such a contract are recognised in the Statement of Profit and Loss in the year in which the exchange rates change. Any profit or loss arising on cancellation of such a contract is recognised as income or expense for the year.

1.13 Derivative Instruments and Hedge Accounting

The Company uses forward contracts and currency swaps to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. The Company designates these as cash flow hedges.

The use of forward contracts is governed by the Company's policies on the use of such financial derivatives consistent with the Company's risk management strategy. The Company does not use derivative financial instruments for speculative purposes.

Forward contract derivative instruments are initially measured at fair value, and are re-measured at subsequent reporting dates. Changes in the fair value of these derivatives that are designated and effective as hedges of future cash flows are recognised directly in "Hedge Reserve Account" under Shareholders' Funds and the ineffective portion is recognised immediately in the Statement of Profit and Loss.

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the Statement of Profit and Loss as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. If any of these events occur or if a

hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised under shareholders' funds is transferred to the Statement of Profit and Loss for the year.

1.14 Depreciation and Amortisation

Depreciation has been provided on the straight- line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 except in respect of the following categories of assets, where depreciation is provided based on useful life of the assets assessed as under:

Depreciation is provided pro rata from the month of Capitalisation.

Certain fixed assets are treated as Continuous Process Plants based on technical evaluation done by the Management and are depreciated at the applicable rates. The Company also has a system of providing additional depreciation, where, in the opinion of the Management, the recovery of the fixed asset is likely to be affected by the variation in demand and/or its condition/ usability.

1.15 Research and Development

Revenue expenditure on research and development is expensed when incurred. Capital expenditure on research and development is capitalised under fixed assets and depreciated in accordance with Note1.14 above.

1.16 Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961.

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

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Other deferred tax assets are recognised if there is reasonable certainty that there will be sufficient future taxable income available to realise such assets.

1.17 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the

obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

1.18 Segment Accounting

a) The Generally Accepted Accounting Principles used in the preparation of the financial statements are applied to record revenue and expenditure in individual segments.

b) Segment revenue and segment results include transfers between business segments. Such transfers are accounted for at a competitive market price and are eliminated in the consolidation of the segments.

c) Expenses that are directly identifiable to segments are considered for determining the segment results. Expenses which relate to the Company as a whole and are not allocable to segments are included under unallocated corporate expenses.

d) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and are not allocable to any segment.


Mar 31, 2010

1. Accounting Convention

The financial statements are prepared under the historical cost convention, on an accrual basis, in accordance with the generally accepted accounting principles in India including the Accounting Standards notified by the Government of India / issued by the Institute of Chartered Accountants of India (ICAI), as applicable, and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses like provision for employee benefits, provision for doubtful debts/advances/contingencies, allowance for slow/non-moving inventories, useful lives of fixed assets, provision for retrospective price increases on purchases, provision for taxation, etc., during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

3. Fixed Assets and Depreciation

a. Fixed Assets are stated at historical cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance, etc. attributable to the acquisition and installation of the fixed assets but excludes duties and taxes that are recoverable from tax authorities.

b. Borrowing costs are capitalised as part of qualifying fixed assets. Other borrowing costs are expensed.

c. Depreciation on fixed assets other than special tools and special purpose machines used in door frame projects, furniture and fixtures, motor cars and data processing equipments is provided under the Straight Line Method at the rates specified under Schedule XIV of the Companies Act, 1956. Special tools and special purpose machines used in door frame projects are depreciated over four years, furniture and fixtures are depreciated over five years, motor cars are depreciated over four years and data processing equipments are depreciated over three years on the basis of Managements evaluation of the useful life of these assets, which results in depreciation being charged at rates higher than those specified under the Companies Act, 1956.

Certain fixed assets are treated as Continuous Process Plants based on technical evaluation done by the Management and are depreciated at the applicable rates.

The Company also has a system of providing additional depreciation, where, in the opinion of the Management, the recovery of the fixed asset is likely to be affected by the variation in demand and/or its condition/usability. Depreciation is provided pro-rata from the month of Capitalisation.

d. Individual fixed assets whose actual cost does not exceed Rs. 5,000/- are fully depreciated in the year of acquisition.

e. Lease hold land is amortised over the remaining period of the lease.

4. Investments

a. Long term investments are carried at cost. Diminution in the value of investments, other than temporary, is provided for.

b. Current investments are carried at lower of cost and fair value.

5. Inventories

a. Raw materials, stores & spare parts and traded goods are valued at lower of weighted average cost (net of allowances) and estimated net realisable value. Cost includes freight, taxes and duties and is net of credit under VAT and CENVAT scheme, where applicable.

b. Work-in-process and finished goods are valued at lower of weighted average cost (net of allowances) and estimated net realisable value. Cost includes all direct costs and applicable production overheads to bring the goods to the present location and condition.

c. Due allowance is made for slow/ non-moving items, based on Management estimates.

6. Revenue Recognition

a. Sales are recognised on shipment or on unconditional appropriation of goods and comprise amounts invoiced for the goods, including excise duty, but net of sales tax / VAT and Quantity Discounts.

b. Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

c. Dividend income on investments is accounted for when the right to receive the payment is established.

d. Interest Income is recognised on time proportion basis.

7. Employee Benefits

I. Defined Contribution Plan

a. Superannuation

The Company contributes a sum equivalent to 15% of the eligible employees salary to a Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). The Company has no liability for future Superannuation Fund benefits other than its annual contribution and recognizes such contributions as an expense in the year incurred.

II. Defined Benefit Plan

a. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by LIC. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year by LIC using the Projected Unit Credit method. Actuarial gains/losses are immediately recognised in the Profit & Loss Account.

b. Provident Fund

Contributions are made to the Companys Employees Provident Fund Trust in accordance with the fund rules. The interest rate payable by the Trust to the beneficiaries every year is being notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate and recognizes such obligation as an expense.

III. Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuation using the Projected Unit Credit method, as at the Balance Sheet date, carried out by LIC.

IV. Short Term Employee Benefits

Short term employee benefits includes short term compensated absences which is recognized based on the eligible leave at credit on the Balance Sheet date, and the estimated cost is based on the terms of the employment contract.

V. Voluntary Retirement Scheme

Compensation to employees under Voluntary Retirement Schemes is provided/ expensed in the period in which the liability arises.

8. Deferred Compensation Cost

In respect of stock options, granted pursuant to the Companys Employee Stock Option Scheme, the Company determines the compensated cost based on the intrinsic value method and the compensation cost is amortised on a straight line basis over the vesting period.

9. Foreign Currency Transactions

Foreign Currency Transactions are accounted at the exchange rates ruling on the date of the transactions. Foreign currency monetary items as at the Balance Sheet date are restated at the closing exchange rates. Exchange differences arising on actual payments/realisations and year-end restatements are dealt with in the profit and loss account.

The Company enters into forward exchange contracts and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising at the inception of a forward exchange contract (other than for a firm commitment or a highly probable forecast) or similar instrument is amortised as expense or income over the life of the contract. Exchange differences on such a contract are recognised in the Profit & Loss Account in the year in which the exchange rates change. Any profit or loss arising on cancellation of such a contract is recognised as income or expense for the year.

10. Derivative Instruments and Hedge Accounting

The Company uses forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company designates these as cash flow hedges.

The use of forward contracts is governed by the Companys policies on the use of such financial derivatives consistent with the Companys risk management strategy. The Company does not use derivative financial instruments for speculative purposes.

Forward contract derivative instruments are initially measured at fair value, and are re-measured at subsequent reporting dates. Changes in the fair value of these derivatives that are designated and effective as hedges of future cash flows are recognised directly in "Hedge Reserve Account" under Shareholders Funds and the ineffective portion is recognized immediately in the Profit & Loss Account.

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognized in the Profit & Loss Account as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. If any of these events occur or if a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised under shareholders funds is transferred to the Profit & Loss Account for the year.

11. Research and Development

Revenue expenditure on research and development is expensed when incurred. Capital expenditure on research and development is capitalised under fixed assets and depreciated in accordance with Item 3 above.

12. Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that there will be sufficient future taxable income available to realise such losses. Other deferred tax assets are recognised if there is reasonable certainty that there will be sufficient future taxable income available to realise such assets.

13. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

14. Segment Accounting

a. The generally accepted accounting principles used in the preparation of the financial statements are applied to record revenue and expenditure in individual segments.

b. Segment revenue and segment results include transfers between business segments. Such transfers are accounted for at a competitive market price and such transfers are eliminated in the consolidation of the segments.

c. Expenses that are directly identifiable to segments are considered for determining the segment results. Expenses which relate to the Company as a whole and are not allocable to segments are included under unallocated corporate expenses.

d. Segments assets and liabilities include those directly identifiable with the respective segments. Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and are not allocable to any segment.

15. Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of the asset exceeds the recoverable amount.

 
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