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Accounting Policies of Ultramarine & Pigments Ltd. Company

Mar 31, 2015

I a) The financial statements are prepared and presented in conformity with Generally Accepted Accounting Principles in India (GAAP), and comply in all material respects with the applicable Accounting Standards prescribed under section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Act. The financial statements have been prepared under the historical cost convention on the accrual basis.

b) 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 the Schedule III to the Act. Based on the nature of products and the 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.

II USE OF ESTIMATES:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.

III REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of goods:

Revenue is recognized when the significant risks and rewards of ownership of goods have passed to the buyer. Gross sales include amounts recovered towards Excise Duty and are net of returns.

Income from services:

i) In case of IT Enabled Services, revenue from service contracts are recognized pro-rata, as and when the services are rendered over the period of the contract and are net of service tax;

ii) Income from BPO activities is recognized on an accrual basis, based on the terms of the contract with customers.

iii) Income from Job work is accounted on dispatch of material and as per terms of agreement, which is generally on dispatch of material.

Income from wind turbine generators:

Revenue from sale of power from wind operated generators is accounted when the same is transmitted to and confirmed by the Electricity Board to whom the same is sold.

Dividend and interest income:

Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on deposits, loans and interest bearing securities is recognized on the time proportionate method taking into accounts the amount outstanding and the rate applicable.

Export benefits:

The benefit accrued under the Duty Entitlement Pass Book Scheme, duty drawback scheme as per the Export and Import Policy in respect of exports made under the said Schemes is accounted on an accrual basis and is included under the head "revenue from operations" as 'Export Incentives'.

Sale of scrap:

Revenue from sale of scrap is recognised as and when scrap is sold.

IV FIXED ASSETS AND DEPRECIATION:

Tangible Assets:

Fixed assets are carried at the cost of acquisition or construction less accumulated depreciation and impairment losses if any. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition, installation and bringing the asset to its working condition for its intended use.

V Depreciation on fixed assets is provided using the straight-line method based on the useful life and in the manner prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, where the useful life of the assets have been determined by the Management based on the technical assessment / evaluation:

Useful life in years Category of Assets

As per Schedule II As per Company's assessment

Tangible

Plant & Machinery 12 - 40 5 - 40

Computer Equipments 3 - 6 3 - 4

R&D Lab Equipments 10 2 - 10

In the case of Leasehold improvement, amortisation is provided over lease period or useful life of the asset whichever is less. Leasehold rights for land are amortised on a straight line method over its lease period. Individual assets costing less than Rs.10,000 are fully written off in the year of purchase.

VI INTANGIBLE ASSETS AND AMORTISATION:

(i) Intangible assets are stated at cost less accumulated amortisation.

(ii) Intangible assets are amortised on a straight-line basis as under:

a) Software costing up to Rs.25,000/- is expensed out in the year of acquisition. Other Software acquired is amortised over its estimated useful life of 3 years;

b) Intellectual Property is amortised over its estimated useful life of 2 years.

VII IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS:

The Company assesses whether there is any indication that an asset may be impaired at each balance sheet date. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that the previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of amortized historical cost impaired earlier.

VIII INVESTMENTS:

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as Non-current investments. Non-current investments are carried at cost less any other -than-temporary diminution in value, determined separately for each individual investment. The reduction in the carrying amount is reversed when there is a rise in the value of the investment or if the reasons for the reduction no longer exist.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment.

IX INVENTORIES:

Items of Inventory are valued on the principle laid down by Accounting Standard 2 on "Valuation of Inventories" on the basis given below:

(a) Raw Materials, Stores & Lower of cost (determined on weighted Spares and Fuel average basis) and net realizablevalue.

(b) Packing Material Lower of cost (determined on FIFO basis) and net realizable value.

(c) Work-in-Progress Lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of manufacturing overheads based on normal operating capacity.

(d) Finished Goods Lower of cost and net realizable value.

Cost includes direct materials, labour, a proportion of manufacturing overheads, based on normal operating capacity and excise duty.

(e) Materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

X EMPLOYEE BENEFITS :

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to recognized provident funds and approved superannuation schemes which are defined contribution plans are recognized as an employee benefit expense and charged to the statement of profit and loss as and when the services are received from the employees.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company's net obligation in respect of gratuity plan, which is a defined benefit plan, and certain other defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on risk free government bonds that have maturity dates approximating the terms of the Company's obligations. The calculation is performed annually by a qualified actuary using the projected unit credit method. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

Retirement and other employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, and performance incentive paid annual leave, bonus, leave travel assistance, medical allowance, contribution to provident fund and superannuation etc. recognized as actual amounts due in period in which the employee renders the related services.

(i) Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss for the year when the contribution to the fund accrues. There are no obligations other than the contribution payable to the recognized Provident Fund.

(ii) Retirement benefits in the form of Superannuation Fund is a defined contribution scheme and the contribution is charged to the statement of profit and loss for the year when the contribution accrues. There are no obligations other than the contribution payable to the Superannuation Fund Trust. The scheme is funded with Insurance Company in the form of a qualifying insurance policy.

(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. During the year, the Company has established a gratuity trust to provide gratuity benefit through annual contributions to a Gratuity trust which in turn contributes to Life Insurance Corporation of India (LIC). Under this plan, the settlement obligation remains with the Gratuity trust. Life Insurance Corporation of India administers the plan and determines the contribution premium required to be paid by the trust.

(iv) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end.

(v) Actuarial gains/losses are recognized immediately to the statement of profit and loss and are not deferred.

XI FOREIGN CURRENCY TRANSLATION:

Initial recognition:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on foreign currency transactions settled during the year are recognized in the statement of profit and loss.

Conversion:

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated using the foreign exchange rates as at the balance sheet date. The resultant exchange differences are recognized in the statement of profit and loss. Non-monetary assets and liabilities are not translated.

Forward Exchange Contracts:

The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

XII BORROWING COSTS:

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

XIII LEASE RENTALS:

The lease arrangement is classified as either a finance lease or an operating lease, at the inception of the lease, based on the substance of the lease arrangement.

Finance leases

A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the present value of the minimum lease payments. Initial direct costs, if any, are also capitalized and, subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Operating leases

Other leases are operating leases, and the leased assets are not recognized on the Company's balance sheet. Payments made under operating leases are recognized in statement of profit and loss on a straight-line basis as per the terms of the lease agreement.

XIV EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

XV TAXATION:

Tax expense comprises of current and deferred tax charge or credit.

Current Tax is determined as the amount of income tax payable to the taxation authorities in respect of taxable income for the period.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets.

Deferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realised.

XVI PROVISIONS, CONTINGENT LIABILITES AND CONTINGENT ASSETS:

Provisions:

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liability:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent liabilities are disclosed for:-

(i) possible obligations 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 obligation cannot be made.

Contingent assets are not recognized in the financial statements, since this may result in recognition of income that may never be realized.

XVII SEGMENT REPORTING:

Segments are identified in line with AS-17 "Segment Reporting", taking into consideration the internal organisation and management structure as well as the differential risk and returns of the segment.

Identification of Segment

Based on the Company's business model, Laundry and allied products, IT enabled services & BPO activities and Wind Turbine Generator have been considered as the reportable business segments. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

Inter segment transfers

The Company accounts for inter segment revenues at current market prices.

Unallocated items

Unallocable income and expenses includes general corporate income and expense items which are not allocated to any business segment.

XVIII CASH AND CASH EQUIVALENTS

The Company considers all highly liquid financial instruments, which are readily convertible into and cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term bank deposits with original maturity of three months or less.

XIX CASH FLOW STATEMENT

The Cash Flow Statement is prepared by the "indirect method" set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company.


Mar 31, 2014

I a) The financial statements are prepared and presented in conformity with Generally Accepted Accounting principles (GAAP) in India, and comply in all material respects with the applicable Accounting Standards not fixed under the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013, issued by the Ministry of Corporate Affairs, inrespect of Sect on 133 of the Companies Act, 2013 and other relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convent on on the accrual basis.

b) 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 the Schedule VI to the Companies Act, 1956. Based on the nature of products and the t me between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as period of 12 months for the purpose of current – non-current classification of assets and liabilities.

II USE OF ESTIMATES:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilites on the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.

III REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of goods:

Revenue is recognized when the significant risks and rewards of ownership of goods have passed to the buyer. Gross sales include amounts recovered towards Excise Duty and are net of returns.

Income from services:

i) In case of IT Enabled Services, revenue from service contracts are recognized pro-rata, as and when the services are rendered over the period of the contract and are net of service tax;

ii) Income from BPO activities is recognized on an accrual basis, based on the terms of the contract with customers.

iii) Income from Job work is accounted on dispatch of material and as per terms of agreement, which is generally on dispatch of material.

Income from wind operated generators:

Revenue from sale of power from wind operated generators is accounted when the same is transmitted to and confirmed by the Electricity Board to whom the same is sold.

Dividend and interest income:

Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on deposits, loans and interest bearing securities is recognized on the t me proportionate method taking into account the amount outstanding and the rate applicable.

Export benefits:

The benefit accrued under the Duty Entitlement Pass Book Scheme, duty drawback scheme as per the Export and Import Policy in respect of exports made under the said Schemes is accounted on an accrual basis and is included under the head "revenue from operations" as ''Export Incentives''.

Sale of scrap:

Revenue from sale of scrap is recognised as and when scrap is sold.

Insurance Claims:

Insurance claims are accounted when there is a reasonable certainty of the realisability of the claim amount or on the date of maturity of the Insurance Policy.

IV FIXED ASSETS AND DEPRECIATION:

Tangible Assets:

Fixed assets are carried at the cost of acquisition or construct on less accumulated depreciation and impairment losses if any. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition, installation and bringing the asset to its working condition for its intended use.

V Depreciation on fixed assets is provided using the straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956 or based on the useful life of the assets as estimated by Management, whichever is higher. In the case of Computers and Network Equipments acquired for the IT Enabled Services Division and BPO activities, depreciation is computed over the estimated useful life of 4 years. In the case of Leasehold improvement, depreciation is provided over lease period or useful life of the asset whichever is less. Leasehold rights are amortised on a straight line method over its lease period. Individual assets costing less than Rs.10,000 are writ en off fully in the year of purchase.

VI INTANGIBLE ASSETS AND AMORTISATION:

(i) Intangible assets are stated at cost less accumulated amortisation.

(ii) Intangible assets are amortised on a straight-line basis as under:

(a) Software costing up to Rs.25,000/- is expensed out in the year of acquisition. Other Sofware acquired is amortised over its estimated useful life of 3 years;

(b) Intellectual Property is amortised over its estimated useful life of 2 years.

VII IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS:

The Company assesses whether there is any indication that an asset may be impaired at each balance sheet date. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that the previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of amortized historical cost impaired earlier.

VIII INVESTMENTS:

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as Non-current investments. Non-current investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment. The reduction in the carrying amount is reversed when there is a rise in the value of the investment or if the reasons for the reduction no longer exist.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment

X EMPLOYEE BENEFITS :

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entry pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to recognized provident funds and approved superannuation schemes which are defined contribution plans are recognized as an employee benefit expense and charged to the statement of profit and loss as and when the services are received from the employees.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of gratuity plan, which is a defined benefit plan, and certain other defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on risk free government bonds that have maturity dates approximating the terms of the Company''s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed annually by a qualified actuary using the projected unit credit method.

Retirement and other employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, performance incentive, paid annual leave, bonus, leave travel assistance, medical allowance, contribution to provident fund and superannuation etc. recognized as actual amounts due in period in which the employee renders the related services.

(i) Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss for the year when the contribution to the fund accrues. There are no obligations other than the contribution payable to the recognized Provident Fund.

(ii) Retirement benefits in the form of Superannuation Fund is a defined contribution scheme and the contribution is charged to the statement of profit and loss for the year when the contribution accrues. There are no obligations other than the contribution payable to the Superannuation Fund Trust. The scheme is funded with Insurance Company in the form of a qualifying insurance policy.

(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

(iv) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end.

(v) Actuarial gains/losses are recognized immediately to the statement of profit and loss and are not deferred.

XI FOREIGN CURRENCY TRANSLATION:

Init al recognition:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on foreign currency transactions set led during the year are recognized in the statement of profit and loss.

Conversion:

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated using the foreign exchange rates as at the balance sheet date. The resultant exchange differences are recognized in the statement of profit and loss. Non-monetary assets and liabilities are not translated.

Forward Exchange Contracts:

The premium or discount arising at the incept on of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

XII BORROWING COSTS:

Borrowing costs that are directly attributable to the acquisition or construct on of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of t me to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

XIII LEASE RENTALS:

The lease arrangement is classified as either a finance lease or an operating lease, at the incept on of the lease, based on the substance of the lease arrangement.

Finance leases

A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the present value of the minimum lease payments. Init al direct costs, if any, are also capitalized and, subsequent to init al recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Operating leases

Other leases are operating leases, and the leased assets are not recognized on the Company''s balance sheet. Payments made under operating leases are recognized in statement of profit and loss on accrual basis over the term of the lease.

XIV EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potent al equity shares.

XV TAXATION:

Tax expense comprises of current and deferred tax charge or credit.

Current Tax is determined as the amount of income tax payable to the taxation authorities in respect of taxable income for the period.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets and deferred tax liabilities are off set, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets.

Deferred tax assets are reviewed at each balance sheet date and are writ en-down or writ en-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realised.

XVI PROVISIONS, CONTINGENT LIABILITES AND CONTINGENT ASSETS:

Provisions:

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an out low of resources will be required to set le the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to set le the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liability:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an out low of resources will be required to set le the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent liabilities are disclosed for:

(i) possible obligations 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 out low of resources will be required to set le the obligation or a reliable estimate of the amount of obligation cannot be made.

Contingent assets are not recognized in the financial statements, since this may result in recognition of income that may never be realized.

XVII SEGMENT REPORTING:

Segments are identified in line with AS-17 "Segment Reporting", taking into consideration the internal organisation and management structure as well as the different al risk and returns of the segment.

Identification of Segment

Based on the Company''s business model, Laundry and allied products, IT enabled services & BPO activities and WindTurbine Generator have been considered as the reportable business segments. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

Inter segment transfers

The Company accounts for inter segment revenues at cost plus basis.

Unallocated items

Unallocable income and expenses includes general corporate income and expense items which are not allocated to any business segment.

XVIII CASH AND CASH EQUIVALENTS

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term bank deposits with original maturity of three months or less.


Mar 31, 2013

I BASIS OF ACCOUNTING:

The financiaL statements are prepared and presented in conformity with GeneraLLy Accepted Accounting principLes in India, and compLy in aLL materiaL respects with the appLicabLe Accounting Standards notified by the Companies (Accounting Standards) RuLes, 2006 and other reLevant provisions of the Companies Act, 1956. The financiaL statements have been prepared under the historicaL cost convention on the accruaL basis.

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 the ScheduLe VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their reaLisation in cash 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.

II USE OF ESTIMATES:

The preparation of the financiaL statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and LiabiLities and discLosure of contingent LiabiLities on the date of the financiaL statements and reported amounts of revenues and expenses for the year. ActuaL resuLts couLd differ from these estimates. Estimates and underLying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectiveLy in the current and future periods.

III REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probabLe that the economic benefits wiLL flow to the Company and the revenue can be reLiabLy measured.

SaLe of goods:

Revenue is recognized when the significant risks and rewards of ownership of goods have passed to the buyer. Gross saLes incLude amounts recovered towards Excise Duty and are net of returns.

Income from services:

i) In case of IT EnabLed Services, revenue from service contracts are recognized pro-rata over the period of the contract as and when services are rendered and are net of service tax;

ii) Income from Job work is accounted on dispatch of materiaL and as per terms of agreement, which is generaLLy on dispatch of materiaL.

Income from wind operated generators:

Revenue from saLe of power from wind operated generators is accounted when the same is transmitted to and confirmed by the ELectricity Board to whom the same is soLd.

Dividend and interest income:

Dividend income is recognized when the unconditionaL right to receive the income is estabLished. Income from interest on deposits, Loans and interest bearing securities is recognized on the time proportionate method taking into account the amount outstanding and the rate appLicabLe.

Export benefits:

The benefit accrued under the Duty Entitlement Pass Book Scheme, duty drawback scheme as per the Export and Import Policy in respect of exports made under the said Schemes is included under the head "revenue from operations" as ''Export Incentives''.

Sale of scrap:

Revenue from sale of scrap is recognised as and when scrap is sold.

IV FIXED ASSETS:

Tangible Assets:

Fixed assets are carried at the cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets

V DEPRECIATION :

Depreciation on fixed assets is provided using the straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956 or based on the useful life of the assets as estimated by Management, whichever is higher. In the case of Computers and Network Equipments acquired for the IT Enabled Services Division, depreciation is computed over the estimated useful life of 4 years. In the case of Leasehold improvement, depreciation is provided over lease period. Leasehold rights are amortised over its lease period.

VI INTANGIBLE ASSETS AND AMORTISATION:

(i) Intangible assets are stated at cost less accumulated amortisation.

(ii) Intangible assets are amortised on a straight-line basis as under:

a) Software costing up to Rs. 25,000/- is expensed out in the year of acquisition. Other Software acquired is amortised over its estimated useful life of 3 years;

b) Intellectual Property is amortised over its estimated useful life of 2 years.

VII IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If suchrecoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of amortized historical cost.

VIII INVESTMENTS:

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment. The reduction in the carrying amount is reversed when there is a rise in the value of the investment or if the reasons for the reduction no longer exist.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment

IX INVENTORIES:

Items of Inventory are valued on the principle laid down by Accounting Standard 2 on "Valuation of Inventories" on the basis given below:

(a) Raw Materials, Stores & Spares and Fuel

Lower of cost (determined on weighted average basis) and net realizable value.

(b) Packing Material Lower of cost (determined on FIFO basis) and net realizable value.

(c) Work-in-Progress Lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of manufacturing overheads based on normal operating capacity.

(d) Finished Goods Lower of cost and net realizable value.

Cost includes direct materials, labour, a proportion of manufacturing overheads, based on normal operating capacity and excise duty.

(f) Materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

X EMPLOYEE BENEFITS :

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contri butions to recognized provident funds and approved superannuation schemes which are defined contribution plans are recognized as an employee benefit expense in the statement of profit and loss as and when the services are received from the employees.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of gratuity plan, which is a defined benefit plan, and certain other defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on risk free government bonds that have maturity dates approximating the terms of the Company''s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed annually by a qualified actuary using the projected unit credit method.

Retirement and other employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, and performance incentive paid annual leave, bonus, leave travel assistance, medical allowance, contribution to provident fund and superannuation etc. recognized as actual amounts due in period in which the employee renders the related services.

(i) Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss for the year when the contribution to the fund accrues. There are no obligations other than the contribution payable to the recognized Provident Fund.

(ii) Retirement benefits in the form of Superannuation Fund is a defined contribution scheme and the contribution is charged to the statement of profit and loss for the year when the contribution accrues. There are no obligations other than the contribution payable to the Superannuation Fund Trust. The scheme is funded with Insurance Company in the form of a qualifying insurance policy.

(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

(iv) AccumuLated Leave, which is expected to be utiLized within the next 12 months, is treated as short-term empLoyee benefit. The Company measures the expected cost of such absences as the additionaL amount that it expects to pay as a resuLt of the unused entitLement that has accumuLated at the reporting date. The Company treats accumuLated Leave expected to be carried forward beyond tweLve months, as Long-term empLoyee benefit for measurement purposes. Such Long-term compensated absences are provided for based on the actuariaL vaLuation using the projected unit credit method at the year-end.

XI FOREIGN CURRENCY TRANSLATION:

Initial recognition:

Foreign currency transactions are recorded using the exchange rates prevaiLing on the dates of the respective transactions. Exchange differences arising on foreign currency transactions settLed during the year are recognized in the statement of profit and Loss.

Conversion:

Monetary assets and LiabiLities denominated in foreign currencies as at the baLance sheet date are transLated using the foreign exchange rates as at the baLance sheet date. The resuLtant exchange differences are recognized in the statement of profit and Loss. Non-monetary assets and LiabiLities are not transLated.

Forward Exchange Contracts:

The premium or discount arising at the inception of forward exchange contracts is amortized as expense or in come over the Life of the contract. Exchange differences on such contracts are recognized in the statement of profit and Loss in the year in which the exchange rates change. Any profit or Loss arising on canceLLation or re newaL of forward exchange contract is recognized as income or as expense for the year.

XII BORROWING COSTS:

Borrowing costs that are directLy attributabLe to the acquisition or construction of quaLifying assets are capitaLized for the period untiL the asset is ready for its intended use. A quaLifying asset is an asset that neces sariLy takes substantiaL period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

XIII LEASE RENTALS:

The Lease arrangement is cLassified as either a finance Lease or an operating Lease, at the inception of the Lease, based on the substance of the Lease arrangement.

Finance leases

A finance Lease is recognized as an asset and a LiabiLity at the commencement of the Lease, at the Lower of the fair vaLue of the asset and the present vaLue of the minimum Lease payments. InitiaL direct costs, if any, are aLso capitaLized and, subsequent to initiaL recognition, the asset is accounted for in accordance with the accounting poLicy appLicabLe to that asset. Minimum Lease payments made under finance Leases are apportioned between the finance expense and the reduction of the outstanding LiabiLity. The finance expense is aLLocated to each period during the Lease term so as to produce a constant periodic rate of interest on the remaining baLance of the LiabiLity.

Operating leases

Other Leases are operating Leases, and the Leased assets are not recognized on the Company''s baLance sheet. Payments made under operating Leases are recognized in statement of profit and Loss on a straight-Line basis over the term of the Lease.

XIV EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

XV TAXATION:

Tax expense comprises of current and deferred tax charge or credit.

Current Tax is determined as the amount of income tax payable to the taxation authorities in respect of taxable income for the period.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets.

Deferred tax assets are reviewed at each balance sheet date and is written-down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realised.

The Company recognises credit for Minimum Alternative Tax (MAT) only when and to the extent there is a convincing evidence that the same would be set off during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

XVI PROVISIONS, CONTINGENT LIABILITES AND CONTINGENT ASSETS:

Provisions:

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liability:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent liabilities are disclosed for:-

(i) possible obligations 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 obligation cannot be made.

Contingent assets are not recognized in the financial statements, since this may result in recognition of income that may never be realized.

XVII SEGMENT REPORTING:

Segments are identified in line with AS-17 "Segment Reporting", taking into consideration the internal organisation and management structure as well as the differential risk and returns of the segment.

Based on the Company''s business model, Laundry and allied products, IT enabled services and Wind Turbine Generator have been considered as the reportable business segments. The analysis of geographical segments is based on the areas in which major operatingdivisions of the Company operate.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

XVIII CASH AND CASH EQUIVALENTS

The Company considers all highly liquid financial instruments, which are readily convertible into and cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.


Mar 31, 2012

I BASIS OF ACCOUNTING:

The financial statements are prepared in conformity with Generally Accepted Accounting principles in India, the applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the other relevant provisions of the Companies Act, 1956. The financial statements have been prepared on the basis of historical cost. The Company follows the mercantile system of accounting for recognising income and expenditure on accrual basis.

II USE OF ESTIMATES:

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

III REVENUE RECOGNITION:

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(a) Sale of goods are recognised when risk and rewards of ownership of the products are passed on to the customers which is generally on despatch of goods. Sales include amounts recovered towards Excise Duty and are net of returns.

(b) Incase of IT Enabled Services division, sale of services is recognised on despatch and subsequent approval by customers.

(c) Revenue from sale of power from wind operated generators is accounted when the same is transmitted and confirmed by the Electricity Board.

(d) Income from Job work is accounted on accrual basis on dispatch of material and as per terms of agreement

(e) Duty free imports of raw materials under Advance Licence for imports as per the Import and Export Policy are matched with the exports made against the said licences and the net benefit/obligation is accounted by making suitable adjustment in raw material consumption. The benefits accrued under the Duty Entitlement Pass Book Scheme as per the Import and Export policy in respect of exports made under the said scheme have been included under the head 'Export Incentives'.

(f) Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(g) Dividend is recognised when the shareholders' right to receive payment is established by the balance sheet date.

IV FIXED ASSETS:

Tangible Assets:

Fixed Assets are recorded at cost of acquisition or construction / erection including taxes, duties, freight and other incidental expenses related to acquisition and installation. Interest incurred during construction period on borrowings to finance qualifying fixed assets is capitalised. Fixed Assets which are not in active use are scrapped and written off.

V DEPRECIATION :

Depreciation on Plant and Machinery and Building is provided on Straight Line method. In the case of Computers and Network Equipments acquired for the IT Enabled Services Division, amortisation is computed on the Straight Line method over the estimated useful life of 4 years. Depreciation for Software costing up to Rs 25,000/- is provided at the rate of 100% in the year of addition. Other Software acquired are depreciated over its estimated useful life of 3 years. The rates at which depreciation is provided as above, are as prescribed by Schedule XIV to the Companies Act, 1956 and in terms of relevant circulars issued by the Ministry of Corporate Affairs.

VI INVESTMENTS:

Investments which are all long-term are stated at cost of acquisition and related expenses. Provisions for diminution in value is made to recognize a decline other than temporary in value of the investments.

VII INVENTORIES:

Items of Inventory are valued on the principles laid down by Accounting Standard 2 "Valuation of Inventories" on the basis given below

VIII EMPLOYEE BENEFITS:

i. Short-term employee benefits

All employee benefits payable wholly with in twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, performance incentive, paid annual leave, bonus, leave travel assistance, medical allowance, contributions to provident fund and superannuation etc. recognised as actual amounts due in period in which the employee renders the related service.

ii. Post - employment benefits

a. Defined Contribution Plans

Payments made to defined contribution plans such as Provident Fund is charged as expense as they fall due.

b. Defined Benefit Plans

The cost of providing benefits i.e. gratuity is determined using the Projected Unit Credit Method, with actuarial valuation carried out as at the balance sheet date. Actuarial gains and losses are recognised immediately in the Profit and Loss Account.

iii. Other Long - term employee benefits

Other Long term employee benefits is recognised as an expense in the profit and loss account as and when it accrues. The company determines the liability using the Projected Unit Credit Method, with actuarial valuation carried out as at the Balance Sheet date. The actuarial gains and losses in respect of such benefits are charged to the profit and loss account.

IX FOREIGN CURRENCY TRANSLATION:

Transaction denominated in foreign currencies are recorded at the exchange rates prevailing at the date of transaction. Monetary items denominated in foreign currency at the year end are translated at year end rates. In respect of Monetary items which are covered by foreign exchange contracts, the difference between the year end rates and the rate on the date of contract is recognised as exchange difference and the premium on such forward contracts is recognised over the life of the forward contract. The exchange differences arising on settlement / translation of transactions are recognised in the profit and loss account.

X BORROWING COSTS:

Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalised for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

XI TAXATION:

Current Tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence, on timing difference being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The Company avails credit for Minimum Alternative Tax if there is a reasonable certainity that the same would be set off during the eligible period.

XII PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised only when there is present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made. Contingent liabilities disclosed for (i) possible obligations which will be confirmed only by future events not wholly within the control of the company or (ii) present obligtions 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 obligation cannot be made. Contingent assets are not recognised in the financial statements, since this may result in recognition of income that may never be realised.

XIII EARNING PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all diluted potential equity shares.

XIV CASH AND CASH EQUIVALENTS:

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.


Mar 31, 2011

A. BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention and in conformity with Generally Accepted Accounting Principles in India, the applicable Accounting Standards notified by the Companies ( Accounting Standards) Rules, 2006 and the other relevant provisions of the Companies Act, 1956

b. USE OF ESTIMATES

The preperation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

c. REVENUE RECOGNITION

Sales of products are recognised when risk and rewards of ownership of the products are passed on to the customers, which is generally on despatch of goods. Sales includes Sales tax / VAT, delayed payment charges and are stated net of returns. In case of IT Enabled Services division, sale of services is recognised on despatch and subsequent approval by customers.

d. FIXED ASSETS

Fixed Assets are recorded at cost of acquisition or construction / erection including taxes, duties, freight and other incidental expenses related to acquisition and installation. Interest incurred during construction period on borrowings to finance fixed assets is capitalised. Fixed Assets which are not in active use and scrapped are written off.

e. DEPRECIATION/AMORTISATION

i. Depreciation on Fixed Assets is computed on the Straight Line Method over their estimated useful lives as prescribed by under Schedule XIV of the Companies Act, 1956. Assets costing upto Rs. 10,000/- are fully written off in the year of addition.

ii. IT ENABLED DIVISION

In the case of Computers and Network Equipments acquired for the IT Enabled Services Division, amortisation is computed on the Straight Line Method over the estimated useful life of 4 years. Depreciaton for Software costing upto Rs. 25,000/- is provided at the rate of 100% in the year of addition. Other Softwares acquired are depreciated over its estimated useful life of 3 years(Previous year 4 years).

iii. Intelectual Property(IP), amortised over its useful life.

f. INVESTMENTS

Long term investments are stated at cost of acquisition and related expenses. Dimunition is provided for in the value of these investments if the same is other than temperory in nature. Current investments are valued at cost or fair value, whichever is lower.

h. FOREIGN CURRENCY TRANSLATION

i. Monetary items in foreign currency oustanding at the close of the year are valued at the contracted and / or exchange rate at the close of the year. The loss or gain due to fluctuation of exchange rates is charged to Profit and Loss Account. In respect of forward exchange contracts, the difference between the year end date and the rate on the date of contract is recognised as exchange difference and the premium on such forward contract is recognised over the life of the forward contract.

ii. Investments outside India are carried in the Balance Sheet at the rates prevailing on the date of the transaction.

i. EMPLOYEE BENEFITS

1. Short-term employee benefits

All employee benefits payable wholly with in twelve months of rendering the service are classified as short term employee benefits.

Benefits such as salaries, wages, performance incentive paid annual leave, bonus, leave travel assistance, medical allowance, contributions to provident fund and superannuation etc. are recognised as actual amounts due in the period in which the employee renders the related service.

2. Post - employement benefits

a. Defined Contribution Plans

Payments made to defined contribution plans such as Provident Fund are charged as expense as they fall due.

b. Defined Benefit Plans

The cost of providing benefits i.e. gratuity is determined using the Projected Unit Credit Method, with actuarial valuation carried out as at the balance sheet date. Actuarial gains and losses are recognised immediately in the Profit and Loss Account.

3. Other Long - term employee benefits

Other Long term employee benefits are recognised as an expense in the profit and loss account as and when they accrue. The company determines the liability using the Projected Unit Credit Method with actuarial valuation carried out as at the Balance Sheet date. The actuarial gains and losses in respect of such benefits are charged to the profit and loss account.

j. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalised for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognised as an expenses in the period in which they are incurred.

k. TAXATION

Current Tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence, on timing difference being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.


Mar 31, 2010

A. Basis of Accounting

The financial statements are prepared in conformity with Generally Accepted Accounting Principles in India, the applicable Accounting Standards notified by the Companies ( Accounting Standards ) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.The Accounts have been prepared on the basis of historical cost. The Company follows the mercantile system of accounting recognising income and expenditure on accrual basis.

b. Revenue Recognition

Sale of goods is recognised on despatches to customers. Sales include amounts recovered towards Excise Duty and VAT. In case of IT Enabled Services division, sale of services is recognised on despatch and subsequent approval by customers.

c. Fixed Assets

Fixed Assets are recorded at cost of acquisition or construction / erection including taxes, duties, freight and other incidental expenses related to acquisition and installation. Interest incurred during construction period on borrowings to finance fixed assets is capitalised. Fixed Assets which are not in active use and scrapped are written off.

d. Depreciation

i. Depreciation on Fixed Assets is computed on the Straight Line Method over their estimated useful lives as prescribed by under Schedule XIV* of the Companies Act, 1956.

ii. In the case of computers / software, Network Equipments acquired for the IT Enabled Services Division depreciation is computed on the Straight Line Method over the estimated useful life of 4 years.

iii. In case of Packaging Products division, Plant & Machinery in Weaving Section is depreciated over the estimated useful life of 3 years.

e. Investments

Long-term investments are stated at cost of acquisition and related expenses. Dimunition is provided for in the value of these investments if the same is other than temperory in nature. Current investments are valued at cost or fair value, whichever is lower.

f. Inventories

Items of Inventory are valued on the principles laid down by Accounting Standard 2 Valuation of Inventories

I. Stores and Spare Parts At cost including incidental expenses like freight, transport, etc. or Net realisable Value whichever is lower.

ii. Raw Materials At cost including incidental expenses like freight, transport, etc. or Net Realisable

Value whichever is lower .Cost is arrived at on Weighted average basis. iii. Work-in-Progress At raw material cost plus proportionate fixed and variable manufacturing expenses or Net Realisable Value whichever is lower. iv. Finished Goods At Cost or Net Realisable Value whichever is lower. Cost is calculated at Raw Material cost plus all fixed and variable manufacturing expenses. Excise Duty is also included in valuation.

g. Foreign currency translation

i. Monetary items in foreign currency oustanding at the close of the year are valued at the contracted and / or exchange rate at the close of the year. The loss or gain due to fluctuation of exchange rates is charged to Profit and Loss Account.

ii. Investments outside India are carried in the Balance Sheet at the rates prevailing on the date of the transaction.

h. Employee benefits

1. Short-term employee benefits

All employee benefits payable wholly with in twelve months of rendering the service are classified as short term employee benefits.

Benefits such as salaries, wages, performance incentive paid annual leave, bonus, leave travel assistance, medical allowance, contributions to provident fund and superannuation etc. are recognised as actual amounts due in the period in which the employee renders the related service.

2. Post - employement benefits

a. Defined Contribution Plans

Payments made to defined contribution plans such as Provident Fund are charged as expense as they fall due.

b. Defined Benefit Plans

The cost of providing benefits i.e. gratuity is determined using the Projected Unit Credit Method, with actuarial valuation carried out as at the balance sheet date. Actuarial gains and losses are recognised immediately in the Profit and Loss Account.

3. Other Long - term employee benefits

Other Long term employee benefits are recognised as an expense in the profit and loss account as and when they accrue. The company determines the liability using the Projected Unit Credit Method with actuarial valuation carried out as at the Balance Sheet date. The actuarial gains and losses in respect of such benefits are charged to the profit and loss account.

i. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalised for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

j. Taxation

Current Tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence, on timing difference being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

 
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