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Accounting Policies of Uni Abex Alloy Products Ltd. Company

Mar 31, 2015

I) Method of accounting

The financial statements are prepared under the historical cost convention, on accrual basis of accounting, in accordance with the accounting principles generally accepted in india and comply with the standards on accounting issued by the institute of chartered Accountants of india and referred to in section 133 of the Companies Act, 2013. The significant accounting policies are as follows:

ii) Use of estimates

The preparation of financial statements, in conformity with Indian GAAP, requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the fnancial 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.

iii) Revenue recognition

a) Sale of goods

Sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales to arrive at net sales. sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses, focus product scheme benefit and duty drawback benefits are accounted on accrual basis and included in Other Income.

b) Sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iv) Fixed assets and depreciation and amortisation

a) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in schedule ii of the companies act, 2013, except on moulds. cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b) Intangible assets

intangible assets comprising of computer software and commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c) Capital work-in-progress

projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

v) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use. ah other borrowing costs are recognised as an expense in the period in which they are incurred.

vi) Investment

Long-term investments are stated at cost. Diminution other than temporary in the value thereof is recognized and provided. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

vii) Foreign currency transactions

a) Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Statement of Profit and Loss as Exchange fluctuation loss / gain.

b) Foreign currency current assets and current liabilities outstanding at the year-end are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Statement of Profit and Loss. in case of forward exchange contracts premium paid on forward contracts recognised over the life of the contract.

c) Pursuant to notification issued by the Ministry of Corporate Affairs on 29 December, 2011, exchange difference arising on reporting of long term foreign currency loan at the rate prevailing at the close of the year, in so far as they relate to acquisition of depreciable capital asset is added to or deducted from the cost of the asset and is depreciated over the balance life of the asset.

viii) Inventories

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost.Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods.

ix) Employee benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards .

a) Defined contribution plans

The Company's contribution to provident fund is considered as defined contribution plans and is charged as an expense as it fall due based on the amount of contribution required to be made.

b) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in 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, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

x) Taxes on income

provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance sheet date.

Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is virtual certainty of their realisation.

xi) Provisions and contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. a disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2014

I) Method Of Accounting

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting principles in india (indian GAAP) to comply with the Accounting standards notified under the companies (Accounting standards) Rules, 2006 (asamended) and there levant provisions of the companies Act, 1956. The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

ii) Use of estimates

The preparation of financial statements, in conformity with indian GAAP, requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent 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.

iii) Revenue Recognition

a ) sale of goods

sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales to arrive at net sales. sale of scrap is included in sales. Export benefits in the nature of DEPB Licenses, focus product scheme benefit and duty drawback benefits are accounted on accrual basis and included in other income..

b ) sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iv) Fixed Assets & Depreciation / Amortisation

a ) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in schedule XIV of the companies Act, 1956, except on moulds. cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible Assets

intangible assets comprising of computer software and commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c ) capital work-in-progress

projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d ) impairment of assets

impairment in carrying value of fixed assets, if any, is recognized and provided for.

v) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

vi) Investments

Long-term investments are stated at cost. Diminution other than temparary in the value thereof is recognized and provided. current investments are carried individually, at the lower of cost and fair value. cost of investments include acquisition charges such as brokerage, fees and duties.

vii) Foreign Currency Transactions

a ) Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the statement of profit and Loss as Exchange fluctuation loss / gain. b ) Foreign currency current assets and current liabilities outstanding at the year-end are translated at the year- end exchange rate and the unrealized gain or loss is recognized in the statement of profit and Loss. in case of forward exchange contracts premium paid on forward contracts recognised over the life of the contract. c ) pursuant to notification issued by the Ministry of corporate Affairs on 29 December, 2011, exchange difference arising on reporting of Long term foreign currency loan at the rate prevailing at the close of the year, in so far as they relate to acquisition of depreciable capital asset is added to or deducted from the cost of the asset and is depreciated over the balance life of the asset.

viii) Inventories

inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost.work-in-progress and finished goods include appropriate proportion of overheads. cost includes excise duty in respect of finished goods.

ix) Employee Benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards.

a ) Defined contribution plans

The company''s contribution to provident fund is considered as defined contribution plans and is charged as an expense as it fall due based on the amount of contribution required to be made.

b ) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of profit and Loss in 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, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

x) Taxes on income

provision for taxation has been made on the basis ofthe income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available against which they can be realized.

xi) Provisions and contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2013

I) Method Of Accounting

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

ii) Revenue Recognition

a) Sale of goods

Sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses and duty drawback benefits are accounted on accrual basis and included in Other Income.

b) Sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iii) Fixed Assets & Depreciation / Amortisation

a) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except on moulds. Cost of moulds which are not recoverable from customers are capitalised and amortised over a period of thirty six months which is the estimated useful life of the mould. Cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible Assets

Intangible assets comprising of Computer Software and Commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c ) Capital work-in-progress

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d ) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

v) Investments

Long-term investments are stated at cost. Diminution other than temparary in the value thereof is recognized and provided. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

vi) Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the statement of Profit and Loss as Exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the statement of Profit and Loss.

vii) Inventories

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods.

viii)Employee Benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards.

a ) Defined Contribution Plans

The Company''s contribution to provident fund is considered as defined contribution plans and is charged as an expense as it falls due based on the amount of contribution required to be made.

b ) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in 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, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

ix) Taxes on income

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

x) Provisions and contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2012

I) Method Of Accounting

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

ii) Revenue Recognition

a ) Sale of goods

Sales figures are net sales figures and exclude excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses and duty drawback benefits are accounted on accrual basis and included in Other Income.

b ) Sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iii) Fixed Assets & Depreciation I Amortisation

a ) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except on moulds. Cost of moulds which are not recoverable from customers are capitalised and amortised over a period of thirty six months which is the estimated useful life of the mould. Cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b) Intangible Assets

Intangible assets comprising of Computer Software and Commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c) Capital work-in-progress

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d ) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) Investments

Long-term investments are stated at cost. Only permanent diminution in the value thereof is recognized. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

v) Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction.

The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Profit and Loss Account as Exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are ' translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Profit and Loss Account.

vi) Inventories

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods. ;

vii) Employee Benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards.

a ) Defined Contribution Plans

The Company's contribution to provident fund is considered as defined contribution plans and is charged as an expense as it falls due based on the amount of contribution required to be made.

b ) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in 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, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

viii) Taxes on income

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

ix) Provisions and contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2011

I) Method of accounting

The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the companies act, 1956.

ii) REVENUES

sales figures are net sales figures and exclude excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. sale of scrap is included in sales. export benefits in the nature of DEPB licenses are accounted on accrual basis and included in other income.

iii) FIXED assets & Depreciation/ amortisation

a ) All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation.

Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in schedule Xiv of the companies act, 1956, except on moulds. cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible assets comprising of computer software and commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c ) Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) InvestMeNts long-term investments are stated at cost. only permanent diminution in the value thereof is recognized.

v) FOREIGN CURENCY TRANSACTIONS

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. the difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the profit and loss account as exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the profit and loss account.

vi) INVENTORIES

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. cost includes excise duty in respect of finished goods.

vii)EXCISE DUTY

Excise duty is provided on closing stock of finished goods lying un-cleared at the factory and also included in the valuation of stock of finished goods.

viii) RETIREMENT BENEFITS

contributions to defined contribution schemes such as provident Fund etc. are charged to profit & loss account as incurred. the company also provides for post retirement and other benefits in the form of gratuity and leave encashment which are provided based on actuarial valuation by independent actuaries.

ix) TAXATION

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years.

Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

x)PROVISIONS AND CONTINGENCIES

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. these are reviewed at each balance sheet date and adjusted to reflect the current best estimate. a disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. when there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2010

I) METHOD OF ACCOUNTING

The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

ii) REVENUES

Sales figures are net sales figures and exclude excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses are accounted on accrual basis and included in Other Income.

iii) FIXED ASSETS & DEPRECIATION/AMORTISATION

a ) All fixed assets are stated at cost of acquisition less accumulated depreciation/ amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except on moulds.Cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. Cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible assets comprising of Computer Software are amortised over a period of five years which is the estimated useful life of software. Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) INVESTMENTS

Long-term investments are stated at cost. Only permanent diminution in the value thereof is recognized.

v) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Profit and Loss Account as Exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Profit and Loss Account.

vi) INVENTORIES

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Cost includes excise duty in respect of finished goods.

vii) EXCISE DUTY

Excise duty is provided on closing stock of finished goods lying un-cleared at the factory and also included in the valuation of stock of finished goods.

viii) RETIREMENT BENEFITS

Contributions to defined Contribution schemes such as Provident Fund etc. are charged to Profit & Loss Account as incurred. The Company also provides for post retirement and other benefits in the form of gratuity and leave encashment which are provided based on actuarial valuation by independent actuaries.

ix) PROVISION FOR TAXATION

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years.

Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

x) DEFERRED REVENUE EXPENDITURE

Voluntary retirement scheme expenses on employees incurred by the Company is deferred and written off over a period of 5 years (60 months) starting from the month in which the expenses are actually incurred as the management expects the benefits of the scheme to last over this period.

xi) PROVISIONS & CONTINGENCIES

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

 
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