Mar 31, 2013
1.1 Basis of accounting and preparation of Financial Statements
These Financial Statements have been prepared in accordance with the
Generally Accepted Accounting Principles In India (Indian GAAP) under
the historical cost convention on accrual basis, except for certain
tangible assets which are carried at revalued amounts. These Financial
Statements have been prepared to comply in all material aspects with
the accounting standards notified under section 211(3C) [Companies
(Accounting Standards) Rules 2006, as amended] and other relevant
provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or non
current as per the Company''s normal operating cycle and other criteria
set out in Schedule VI to the Companies Act, 1956. Based on the nature
of products and time between the acquisition of assets for processing
and their realisation in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current
- noncurrent classification of assets and liabilities.
1.2 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) and the reported income and expenses during the
period. The Management believes that the estimates used in preparation
of the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 FIXED ASSETS (comprising both tangible and intangible items) are
stated at cost except in case of certain items of Land, Buildings and
Plant and Machinery which are stated on the basis of revaluation (with
corresponding credit to the Revaluation Reserve Account), being
inclusive of resultant write ups.
Software is capitalised where it is expected to provide future enduring
economic benefit. Capitalisation costs includes license fees and cost
of implementation / system integration services. The costs are
capitalised in the year in which the relevant software is implemented
for use.
IMPAIRMENT LOSS, if any, is recognised wherever the carrying amount of
fixed assets of a cash generating unit exceeds its recoverable amount
i.e. net selling price or value in use, whichever is higher.
1.4 DEPRECIATION (including amortisation) on fixed assets including
those utilised in RESEARCH AND DEVELOPMENT (R&D) activities, is
provided on straight-line basis at rates which are in conformity with
the requirement of the Companies Act, 1956. Computer Software is
amortised on straight line basis over its estimated useful life of five
years.
1.5 REVENUE is recognised on completion of sale of goods, rendering of
services and / or use of the Company''s resources by third parties.
Revenue on Construction Contracts is recognised on Percentage of
Completion Method with reference to stage of completion of contract
activity. The stage of completion of a contract is determined as the
proportion that contract costs incurred for work performed bear to the
estimated total contract costs. However, provisions are made for the
entire loss on a contract irrespective of the amount of work done.
1.6 REVENUE expenditure on Research and Development is expensed in the
period it is incurred.
1.7 BORROWING COST attributable to the acquisition and construction of
qualifying assets are added to the cost up to the date when such assets
are ready for their intended use. Other borrowing costs are recognised
as expense in the period in which these are incurred.
1.8 INVENTORIES are valued at cost and net realisable value whichever
is lower. The costs are, in general, ascertained under weighted average
system on the basis of rates per unit of measurement determined after
recording receipts for individual items of inventories.
1.9 TRANSACTION IN FOREIGN CURRENCY are recorded at exchange rates
prevailing on the date of transaction. Monetary items denominated in
foreign currency are restated at the exchange rate prevailing on the
Balance Sheet date. Foreign currency non monetary items carried in
terms of historical cost are reported using the exchange rate on the
date of transactions. Exchange differences arising on settlement of
transactions and / or restatements are dealt with in the Statement of
Profit and Loss.
1.10 EMPLOYEE BENEFITS :
(i) Short - term Employee Benefits :
The undiscounted amount of short - term Employee Benefits expected to
be paid in exchange for the services rendered by employees is
recognised during the period when the employee renders the service.
(ii) Post Employment Benefit plans :
Contributions under Defined Contribution plans payable in keeping with
the related schemes are recognised as expense for the period.
For Defined Benefit plans, the cost of providing benefits is determined
using the Projected Unit Credit Method, with actuarial valuations being
carried out at each Balance Sheet date . Actuarial gains and losses are
recognised in full in the Statement of Profit and Loss for the period
in which they occur , 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 retirement benefit obligation recognised in
the Balance Sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost , and as
reduced by the fair value of plan assets . Any assets resulting from
this calculations is limited to past service cost , plus the present
value of available refunds and reductions in future contributions to
the scheme.
(iii) Other Long - term Employee Benefits ( unfunded ) :
The cost of providing long - term employee benefits (namely compensated
absences) is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date.
Actuarial gains and losses and past service cost are recognised
immediately in the Statement of Profit and Loss for the period in which
they occur. Other long term employee benefit obligation recognised in
the Balance Sheet represents the present value of related obligation.
1.11 LEASES
For assets acquired under Operating Lease, rentals payable are charged
to Statement of Profit and Loss. Assets acquired under Finance Lease
are capitalised at lower of the Fair value and present value of Minimum
Lease Payments.
1.12 CURRENT TAX is determined as the amount of tax payable in respect
of taxable income for the period based on applicable tax rates and
laws. DEFERRED TAX is recognised, subject to the consideration of
prudence in respect of deferred tax assets, on timing differences,
being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods and is measured using tax rates and laws that have
been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are reviewed at each Balance Sheet date to
re-assess realisation.
1.13 PROVISION is recognised when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
Disclosure for CONTINGENT LIABILITY is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognised or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote.
Sep 30, 2012
1.1 Basis of accounting and preparation of Financial Statements
These Financial Statements have been prepared in accordance with the
Generally Accepted Acccouning Principles In India (Indian GAAP) under
the historical cost convention on accrual basis, except for certain
tangible assets which are carried at revalued amounts. These Financial
Statements have been prepared to comply in all material aspects with
the accounting standards notified under section 211(3C) [Companies
(Accounting Standards) Rules 2006, as amended] and other relevant
provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or non
current as per the Company''s normal operating cycle and other criteria
set out in Schedule VI to the Companies Act, 1956. Based on the nature
of products and time between the acquisition of assets for processing
and their realisation in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current
- non current classification of assets and liabilities.
1.2 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) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 FIXED ASSETS ( comprising both tangible and intangible items ) are
stated at cost except in case of certain items of Land, Buildings and
Plant and Machinery which are stated on the basis of revaluation (with
corresponding credit to the Revaluation Reserve Account), being
inclusive of resultant write ups.
Software is capitalised where it is expected to provide future enduring
economic benefit. Capitalisation costs includes license fees and cost
of implementation / system integration services. The costs are
capitalised in the year in which the relevant software is implemented
for use.
IMPAIRMENT LOSS, if any, is recognised wherever the carrying amount of
fixed assets of a cash generating unit exceeds its recoverable amount
i.e. net selling price or value in use, whichever is higher.
1.4 DEPRECIATION (including amortisation) on fixed assets including
those utilised in RESEARCH AND DEVELOPMENT (R&D) activities, is
provided on straight-line basis at rates which are in conformity with
the requirement of the Companies Act, 1956. Computer Software is
amortised on straight line basis over its estimated useful life of five
years.
1.5 REVENUE is recognised on completion of sale of goods, rendering of
services and / or use of the Company''s resources by third parties.
Revenue on Construction Contracts is recognised on Percentage of
Completion Method with reference to stage of completion of contract
activity. The stage of completion of a contract is determined as the
proportion that contract costs incurred for work performed bear to the
estimated total contract costs. However, provisions are made for the
entire loss on a contract irrespective of the amount of work done.
1.6 REVENUE expenditure on Research and Development is expensed in the
period it is incurred.
1.7 BORROWING COST attributable to the acquisition and construction of
qualifying assets are added to the cost up to the date when such assets
are ready for their intended use. Other borrowing costs are recognised
as expense in the period in which these are incurred.
1.8 INVENTORIES are valued at cost and net realisable value whichever
is lower. The costs are, in general, ascertained under weighted average
system on the basis of rates per unit of measurement determined after
recording receipts for individual items of inventories.
1.9 TRANSACTION IN FOREIGN CURRENCY are recorded at exchange rates
prevailing on the date of transaction. Monetary items denominated in
foreign currency are restated at the exchange rate prevailing on the
Balance Sheet date. Foreign currency non monetary items carried in
terms of historical cost are reported using the exchange rate on the
date of transactions. Exchange differences arising on settlement of
transactions and / or restatements are dealt with in the Statement of
Profit and Loss.
1.10 EMPLOYEE BENEFITS :
(i) Short - term Employee Benefits :
The undiscounted amount of short - term Employee Benefits expected to
be paid in exchange for the services rendered by employees is
recognised during the period when the employee renders the service.
(ii) Post Employment Benefit plans :
Contributions under Defined Contribution plans payable in keeping with
the related schemes are recognised as expense for the year.
For Defined Benefit plans, the cost of providing benefits is determined
using the Projected Unit Credit Method, with actuarial valuations being
carried out at each Balance Sheet date . Actuarial gains and losses are
recognised in full in the Statement of Profit and Loss for the period
in which they occur , 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 retirement benefit obligation recognised in
the Balance Sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost , and as
reduced by the fair value of plan assets . Any assets resulting from
this calculations is limited to past service cost , plus the present
value of available refunds and reductions in future contributions to
the scheme.
(iii) Other Long - term Employee Benefits ( unfunded ) :
The cost of providing long - term employee benefits (namely compensated
absences) is determined using projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date.
Actuarial gains and losses and past service cost are recognised
immediately in the Statement of Profit and Loss for the period in which
they occur. Other long term employee benefit obligation recognised in
the Balance Sheet represents the present value of related obligation.
1.11 LEASES
For assets acquired under Operating Lease, rentals payable are charged
to Statement of Profit and Loss. Assets acquired under Finance Lease
are capitalised at lower of the Fair value and present value of Minimum
Lease Payments.
1.12 CURRENT TAX is determined as the amount of tax payable in respect
of taxable income for the period based on applicable tax rates and
laws. DEFERRED TAX is recognised, subject to the consideration of
prudence in respect of deferred tax assets, on timing differences,
being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods and is measured using tax rates and laws that have
been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are reviewed at each Balance Sheet date to
re-assess realisation.
1.13 PROVISION is recognised when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
Disclosure for CONTINGENT LIABILITY is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognised or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote.
Mar 31, 2010
The financial statements are prepared to comply in all material aspects
within all the applicable accounting principles in India, the
applicable Accounting Standards notified under section 211(3C) of the
Companies Act, 1956 and relevant provision of the Company Act, 1956.
(a) FIXED ASSETS (comprising both tangible and intangible items) are
stated at cost of acquisition and subsequent improvement thereto
including taxes, duties, freight and other incidental expenses related
to acquisition and installation. The cost of machinery spares which can
be used only in connection with an item of fixed asset and whose use is
expected to be irregular are allocated over the useful life of the
related asset. Pre-operating expenses for major projects are also
capitalised, where appropriate.
(b) DEPRECIATION (including amortisation) on fixed assets including
those utilised in RESEARCH AND DEVELOPMENT (R&D) activities, is
provided on straight-line basis at rates which are in conformity with
the requirement of the Companies Act, 1956. Computer Software which is
amortised on straight line basis over its estimated useful life of five
years.
(c) IMPAIRMENT LOSS is recognised wherever the carrying amount of the
fixed assets exceeds the recoverable amount i.e. the higher of the
assets net selling price and value in use.
(d) REVENUE is recognised on completion of sale of goods, rendering of
services and / or use of the Companys resources by third parties.
Revenue on Construction Contracts is recognised on Percentage of
Completion Method with reference to stage of completion of contract
activity. The stage of completion of a contract is determined as the
proportion that contract costs incurred for work performed bear to the
estimated total contract costs. However, provisions are made for the
entire loss on a contract irrespective of the amount of work done.
(e) REVENUE expenditure on Research and Development is expensed in the
period it is incurred.
(f) BORROWING COST attributable to the acquisition and construction of
qualifying assets are added to the cost up to the date when such assets
are ready for their intended use. Other borrowing costs are recognised
as expense in the period in which these are incurred.
(g) INVENTORIES are valued at cost or net realisable value whichever is
lower. The costs are, in general, ascertained under weighted average
system on the basis of rates per unit of measurement determined after
recording receipts for individual items of inventories.
(h) INVESTMENTS
Long term Investment are stated at cost less provision, if any for
diminution which is other than temporary.
(i) TRANSACTION IN FOREIGN CURRENCY are recorded at exchange rates
prevailing on the date of
transaction. Monetary items denominated in foreign currency are
restated at the exchange rate prevailing on the Balance Sheet date.
Foreign currency non monetary items carried in terms of historical cost
are reported using the exchange rate on the date of transactions.
Exchange differences arising on settlement of transactions and / or
restatements are dealt with in the Profit and Loss Account.
(j) EMPLOYEE BENEFITS :
(i) Short - term Employee Benefits :
The undiscounted amount of short - term Employee Benefits expected to
be paid in exchange for the services rendered by employees is
recognised during the period when the employee renders the service.
(ii) Post Employment Benefit plans :
Contributions under Defined Contribution plans payable in keeping with
the related schemes are recognised as expense for the year.
For Defined Benefit plans, the cost of providing benefits is determined
using the projected Unit Credit Method, with actuarial valuations being
carried out at each Balance Sheet date . Actuarial gains and losses are
recognised in full in the profit and loss Account for the period in
which they occur, 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 retirement benefit obligation recognised in
the Balance Sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost , and as
reduced by the fair value of plan assets . Any assets resulting from
this calculations is limited to past service cost , plus the present
value of available refunds and reductions in future contributions to
the scheme.
(iii) Other Long - term Employee Benefits ( unfunded ) :
The cost of providing long - term employee benefits is determined using
projected Unit Credit Method with actuarial valuation being carried out
at each Balance Sheet date. Actuarial gains and losses and past service
cost are recognised immediately in the Profit and Loss Account for the
period in which they occur . Other long term employee benefit
obligation recognised in the Balance Sheet represents the present value
of related obligation.
18. NOTES ON ACCOUNTS (Contd.) (Rupees in Thousands)
(k) LEASES
For assets acquired under Operating Lease, rentals payable are charged
to profit and loss account. Assets acquired under Finance Lease are
capitalised at lower of the Fair value and present value of Minimum
Lease Payments.
(l) CURRENT TAX is determined as the amount of tax payable in respect
of taxable income for the period based on
applicable tax rates and laws. DEFERRED TAX is recognised, subject to
the consideration of prudence in respect of deferred tax assets, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods and is measured using tax
rates and laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax assets are reviewed at each Balance
Sheet date to re-assess realisation. FRINGE BENEFIT TAX is accounted
for based on the estimated value of fringe benefits for the period as
per the related provisions of the Income-tax Act.
(m) PROVISION is recognised when there is a present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation.
Disclosure for CONTINGENT LIABILITY is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognised or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote.