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Accounting Policies of Vadilal Enterprises Ltd. Company

Mar 31, 2015

A) USE OF ESTIMATES:

Preparation of financial statements in confirmity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of the financial statements and the reported amount of revenue 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.

B) FIXED ASSETS AND DEPRECIATION:

TANGIBLE ASSETS :

(i) Fixed assets are stated at cost of acquisition & installation,less accumulated depreciation and impairment loss, if any. Borrowing costs incurred during the period of construction/ acquisition of assets are added to the cost of Fixed Assets. Major expenses on modification /alterations increasing efficiency/capacity of the plant are also capitalised. Exchange differences arising out of fluctuations in exchange rate on settlement/period end in long term foreign currency monetary liabilities used for acquisition of fixed assets are adjusted to the cost of the fixed assets and depreciated over the remaining useful life of the asset.

INTANGIBLE ASSETS :

(ii) Intangible assets are carried at cost less accumulated amortisation and impairment if any. DEPRECIATION & AMORTISATION :

(iii) (a) Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except in respect of the following assets, where useful life is different than those prescribed in Schedule II are used.

Particulars Estimated Useful Life

Building

1) Office Building 58 Years

Plant & Machinery

1) Push Carts,Tricycles, & Insulated Iron / Plastic Boxes 5 Years

2) Specific assets of Parlour 3 Years

3) Freezer on wheels 7 Years

(b) Software is amortised on straight line basis over a period of five years.

(iv) IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of tangible assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

C) INVESTMENTS:

Investments are classified as non current investments and are stated at cost. A Provision for diminution in the value of non current investments is made for each investment individually,only if such decline is other than temporary.

D) INVENTORIES:

Inventories are valued as under:

INVENTORY VALUATION METHOD

(i) Finished Goods : At lower of Cost or Net realisable value. Cost is determined on 'FIFO' basis. (Trading)

(ii) Machinery Parts : At lower of Cost or Net realisable value. Cost is determined on 'Weighted Average' basis. Due provision for obsolescence and wear & tear is made.

E) REVENUE RECOGNITION:

(i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection. Revenue from Sale of goods is recognised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

(ii) Sales are shown net of Damages, Trade Discount and Special Scheme Discount. Sales do not include Value Added Tax.

(iii) Service charges income are accounted when there is reasonable certainty of recovery.

(iv) Dividend income from Investment is accounted for when the right to receive is established

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

(vi) Lease Rent income are accounted when there is reasonable certainty of recovery.

F) EMPLOYEES BENEFITS :

(a) Short Term Employee Benefits :

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences, etc, and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

(b) Post-Employment Benefits :

(i) Defined Contribution Plans :

State Governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services.

(ii) Defined Benefit Plans:

The employee's gratuity fund scheme and compensated absences is company's defined benefit plans.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations.

Acturial gains and losses are recognised immediately in the profit and loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis.

Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight -line basis over the average period until the benefits become vested.

(c) Long term employee benefits :

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b)ii) above.

G) BORROWING COST:

Borrowing cost utilized for acquisition,construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for its intended use are complete. All other borrowing costs are charged in statement of profit & loss of the year in which incurred.

H) TAXES ON INCOME :

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised,on timing differences,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainity of realisation of such asset.Other deferred tax assets are recognised only to the extent there is resonable certainity of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation.

b) MAT Credit Entitlement

MAT credit is recognised as an asset only when there is convincing evidence that the company will pay normal income tax within the specified period. The asset shall be reviewed at each balance sheet date.

I) FOREIGN CURRENCY TRANSACTIONS:

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(ii) Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,such difference having been recognised over the life of the contract. The difference in translation of current assets and current liabilities is recognized in the statement of Profit & Loss.

(iii) Exchange differences, in respect of accounting periods commencing on or after 7th December,2006 arising on reporting of long-term foreign currency monetary items at rates different from those which they were initially recorded during the period, or reported in previous financial statements,in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the remaining useful life of the asset, and in other cases are accumulated in a "Foreign currency Monetary item Translation Difference Account" in the company's financial statements and amortised Account" in the company's financial statements and amortised over the balance period of such long term asset/liability but not beyond accounting period ending on or before 31st March, 2020.

J) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present legal or constructive obligation,as a result of past events,for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent Liabilities are disclosed by way of notes to Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

K) CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE:

All contingencies and events occurring after Balance Sheet date which have a material effect on the financial position of the company are considered for preparing the financial statement.

L) EARNINGS PER SHARE:

Basic Earning 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 earning 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.

M) LEASES:

Leases, where the lessor effectively retains substaintially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognized as an expenses in the statement of profit and loss.

N) CASH AND CASH EQUIVALENTS :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an orignal maturity of three months or less.

O) CASH FLOW STATEMENT :

Cash flow statement is prepared using the indirect method, whereby profit before extraordinary item and tax is adjusted for the effect of transations of non - cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flow from operating, investing and financing of the company are segregated based on the available informations.


Mar 31, 2014

A) USE OF ESTIMATES:

Preparation of financial statements in confirmity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of the financial statements and accompanying notes. Difference between the actual results and estimates, are recognised in the period in which the results are known/materialised.

B) FIXED ASSETS AND DEPRECIATION:

TANGIBLE ASSETS :

(i) Fixed assets are stated at cost of acquisition & installation, less accumulated depreciation and impairment loss, if any. Borrowing costs incurred during the period of construction/acquisition of assets are added to the cost of Fixed Assets. Major expenses on modification / alterations increasing efficiency / capacity of the plant are also capitalised. Exchange differences arising out of fluctuations in exchange rate on settlement / period end in long term foreign currency monetary liability used for acquisition of fixed assets are adjusted to the cost of the fixed assets and depreciated over the remaining useful life of the asset.

INTANGIBLE ASSETS :

(ii) Intangible assets are carried at cost less accumulated amortisation and impairment if any.

DEPRECIATION :

(iii) Depreciation on fixed assets is provided on "Straight Line Method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act,1956,(as amended), except incase of.

(a) Electrical installation (Acrylic Glow Sign Board & Translite) addition made upto 31.03.09, Push Carts,Tricycles, & Insulated Iron / Plastic Boxes in respect of which depreciation is charged at 20% based on the estimated useful life of five years.

(b) On specific assets of Parlour on which depreciation is charged at 33.33% based on the estimated useful life of three years.

(c) In respect of Deep Freeze Machines for addition from the year 2001-02,depreciation is charged at 10% based on estimated useful life of Ten years.

(d) On freezer on wheels, depreciation is provided on the basis of estimated useful life of seven years.

(e) Cost of electrical installation more than five years old and their corresponding depreciation are adjusted from gross block of tangible assets and depreciation fund respectively.

(f) Software is amortised on straight line basis over a period of 5 years.

(iv) IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of tangible assets exceeds its recoverable amount.The recoverable amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

C) INVESTMENTS:

Investments are classified as non current investments and are stated at cost.A Provision for diminution in the value of non current investments is made for each investment individually,only if such decline is other than temporary.

D) INVENTORIES:

Inventories are valued as under:

INVENTORY VALUATION METHOD

(i) Finished Goods : At lower of Cost or Net realisable value. Cost is determined on ''FIFO'' basis.

(Trading)

(ii) Machinery Parts : At lower of Cost or Net realisable value. Cost is determined on ''Weighted Average'' basis.Due provision for obsolescence and wear & tear is made.

E) REVENUE RECOGNITION:

(i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection. Revenue from Sale of goods is recognised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

(ii) Sales are shown net of Damages, Trade Discount and Special Scheme Discount.Sales do not include Value Added Tax.

(iii) Service charges income are accounted when there is reasonable certainty of recovery.

(iv) Dividend income from Investment is accounted for when the right to receive is established.

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

(vi) Lease Rent income are accounted when there is reasonable certainty of recovery.

F) EMPLOYEES BENEFITS :

(a) Short Term Employee Benefits :

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences, etc, and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

(b) Post-Employment Benefits :

(i) Defined Contribution Plans :

State Governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services.

(ii) Defined Benefit Plans:

The employee''s gratuity fund scheme and compensated absences is company''s defined benefit plans. The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations.

Acturial gains and losses are recognised immediately in the profit and loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis.

Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight -line basis over the average period until the benefits become vested.

(c) Long term employee benefits :

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b)ii) above.

G) BORROWING COST:

Borrowing cost utilized for acquisition,construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for its intended use are complete. All other borrowing costs are charged in statement of profit & loss of the year in which incurred.

H) TAXES ON INCOME :

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised,on timing differences,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such asset.Other deferred tax assets are recognised only to the extent there is resonable certainty of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation.

I) FOREIGN CURRENCY TRANSACTIONS:

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(ii) Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,such difference having been recognised over the life of the contract. The difference in translation of current assets and current liabilities is recognized in the statement of Profit & Loss.

(iii) Exchange differences, in respect of accounting periods commencing on or after 7th December,2006 arising on reporting of long-term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the remaining useful life of the asset, and in other cases are accumulated in a "Foreign currency Monetary item Translation Difference Account" in the company''s financial statements and amortised Account" in the company''s financial statements and amortised over the balance period of such long term asset/liability but not beyond accounting period ending on or before 31st March, 2020.

J) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present legal or constructive obligation,as a result of past events,for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent Liabilities are disclosed by way of notes to Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

K) CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE:

All contingencies and events occurring after Balance Sheet date which have a material effect on the financial position of the company are considered for preparing the financial statement.

L) EARNINGS PER SHARE:

Basic Earning 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 earning 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.

M) LEASES :

Leases, where the lessor effectively retains substaintially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognized as an expenses in the statement of profit and loss.

N) CASH AND CASH EQUIVALENTS :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

O) CASH FLOW STATEMENT :

Cash flow statement is prepared using the indirect method, whereby profit before extraordinary item and tax is adjusted for the effect of transations of non - cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flow from operating, investing and financing of the company are segregated based on the available informations.

P) MEASUREMENT OF EBITDA :

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act 1956, the Company has elected to present earning before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/(loss) from continuing operations. In its measurement, the company does not include deperciation and amortization expense, finance costs and tax expense.


Mar 31, 2013

A) USE OF ESTIMATES:

Preparation of financial statements in confirmity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of the financial statements and accompanying notes. Difference between the actual results and estimates, are recognised in the period in which the results are known/materialised.

B) FIXED ASSETS AND DEPRECIATION:

TANGIBLE ASSET :

(i) Fixed assets are stated at cost of acquisition & installation, less accumulated depreciation and impairment loss, if any. Borrowing costs incurred during the period of construction/acquisition of assets are added to the cost of Fixed Assets. Major expenses on modification / alterations increasing efficience / capacity of the plant are also capitalised. Exchange differences arising out of fluctuations in exchange rate on settlement / period end in long term foreign currence monetary liabilities used for acquisition of fixed assets are adjusted to the cost of the fixed assets and depreciated over the remaining useful life of the asset.

(ii) From April 1, 2012 the company has changed the accounting of purchase of Deep freeze machines and Freezer on wheel by debiting to CWIP/Addition to Fixed assets which was earlier debited to purchase of stock in trade. The stock of Deep freeze machines and Freezer on wheel as on April 1, 2012 have also been transferred to CWIP/Addition to Fixed assets from Inventory. However,due to such change profit for the year ended on March 31,2013 has not been impacted

INTANGIBLE ASSET :

(iii) Intangible assets are carried at cost less accumulated amortisation and impairment if any.

(iv) Depreciation on fixed assets is provided on "Straight Line Method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act,1956,.(as amended). Except incase of

(a) Electrical installation (Acrylic Glow Sign Board & Translite) addition made upto 31.03.09, Push Carts,Tricycles, & Insulated Iron / Plastic Boxes in respect of which depreciation is charged at 20% based on the estimated useful life of five years.

(b) On Plastic Crates and on specific assets of Happinezz Parlour on which depreciation is charged at 33.33% based on the estimated useful life of three years.

(c) In respect of Deep Freeze Machines for addition from the year 2001-02,depreciation is charged at 10% based on estimated useful life of Ten years.

(d) On Freezer on wheels depreciation is provided on the basis of estimated useful life of seven years.

(e) Cost of electrical installation more than five years old and their corresponding depreciation are adjusted from gross block of tangible assets and depreciation fund respectively.

(f) Software is amortised on straight line basis over a period of 5 years.

(v) IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of tangible assets exceeds its recoverable amount.The recoverable amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

C) INVESTMENTS:

Investments are classified as non current investments and are stated at cost.A Provision for diminution in the value of non current investments is made for each investment individually,only if such decline is other than temporary.

D) INVENTORIES:

Inventories are valued as under:

INVENTORY VALUATION METHOD

(i) Finished Goods : At lower of Cost or Net realisable value. Cost is determined on (Trading) ''FIFO'' basis. Due provision for obsolescence and wear & tear is made.

(ii) Machinery Parts : At lower of Cost or Net realisable value. Cost is determined on ''Weighted Average'' basis. Due provision for absolescence and wear & tear is made.

E) REVENUE RECOGNITION:

(i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection. Revenue from Sale of goods is recognised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

(ii) Sales are shown net of Damages, Trade Discount and Special Scheme Discount.Sales do not include Value Added Tax.

(iii) Service charges income are accounted when there is reasonable certainty of recovery. ( iv) Dividend income from Investment is accounted for when the right to receive is established (v) Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

F) EMPLOYEES BENEFITS :

(a) Short Term Employee Benefits :

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences, etc, and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

(b) Post-Employment Benefits :

(i) Defined Contribution Plans :

State Governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services.

(ii) Defined Benefit Plans:

The employee''s gratuity fund scheme and compensated absences is company''s defined benefit plans.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations.

Acturial gains and losses are recognised immediately in the profit and loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis.

Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight -line basis over the average period until the benefits become vested.

(c) Long term employee benefits :

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b)ii) above.

G) BORROWING COST:

Borrowing cost utilized for acquisition,construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for its intended use are complete. All other borrowing costs are charged in statement of profit & loss of the year in which incurred.

H) TAXES ON INCOME :

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised,on timing differences,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainity of realisation of such asset.Other deferred tax assets are recognised only to the extent there is resonable certainity of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation.

I) FOREIGN CURRENCY TRANSACTIONS:

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(ii) Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,such difference having been recognised over the life of the contract. The difference in translation of current assets and current liabilities is recognized in the statement of Profit & Loss.

(iii) Exchange differences,in respect of accounting periods commencing on or after 7th December,2006 arising on reporting of long-term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over the remaining useful life of the asset, and in other cases are accumulated in a "Foreign currency Monetary item Translation Difference Account" in the company''s financial statements and amortised Account" in the company''s financial statements and amortised over the balance period of such long term asset/liability but not beyond accounting period ending on or before 31st March, 2020.

J) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present legal or constructive obligation,as a result of past events,for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent Liabilities are disclosed by way of notes to Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

K) CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE:

All contingencies and events occurring after Balance Sheet date which have a material effect on the financial position of the company are considered for preparing the financial statement.

L) EARNINGS PER SHARE:

Basic Earning 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 earning 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.

M) LEASES :

Leases, where the lessor effectively retains substaintially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognized as an expenses in the statement of profit and loss on a straight line basis over the lease term.

N) CASH AND CASH EQUIVALENTS :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an orignal maturity of three months or less.

O) CASH FLOW STATEMENT :

Cash flow statement is prepared using the indirect method, whereby profit before extraordinary item and tax is adjusted for the effect of transations of non - cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flow from operating, investing and financing of the company are segregated based on the available informations.

P) MEASUREMENT OF EBITDA :

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act 1956, the Company has elected to present earning before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/(loss) from continuing operations. In its measurement, the company does not include deperciation and amortization expense, finance costs and tax expense.

Additional informmation to the Financial Statements


Mar 31, 2012

A) ACCOUNTING CONVENTION:

The financial statements have been prepared in accordance with the accounting principles generally accepted in India (Indian GAAP) and comply with the Companies (Accounting Standards) Rules, 2006, issued by the Central Government and relevant provisions of Companies Act, 1956 and are based on the historical cost convention.

B) USE OF ESTIMATES:

Preparation of financial statements in conformity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of the financial statements and accompanying notes. Difference between the actual results and estimates, are recognised in the period in which the results are known/materialized.

C) REVENUE RECOGNITION:

(i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realization or collection. Revenue from Sale of goods is recognised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

(ii) Sales are shown net of Damages, Trade Discount and Special Scheme Discount. Sales do not include Value Added Tax.

(iii) Service charges income is accounted when there is reasonable certainty of recovery.

(iv) Income of Forex Advisory Fees accounted on accrual basis.

(v) Dividend income from Investment is accounted for when the right to receive is established

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

D) FIXED ASSETS AND DEPRECIATION:

(i) Fixed assets are stated at cost of acquisition & installation, net of cenvat and VAT credits availed, if any, less accumulated depreciation and impairment loss, if any. Borrowing costs incurred during the period of construction/ acquisition of assets is added to the cost of Fixed Assets. Major expenses on modification / alterations increasing efficiency/capacity of the plant are also capitalized. Exchange differences arising out of fluctuations in exchange rate on settlement/period end in long term foreign currency monetary liabilities used for acquisition of fixed assets are adjusted to the cost of the fixed assets and depreciated over the remaining useful life of the asset.

(ii) Depreciation on fixed assets is provided on "Straight Line Method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act,1956,.(as amended) except in case of;

(a) Electrical installation (Acrylic Glow Sign Board & Translite) addition made upto 31.03.09, Push Carts, Tricycles, & Insulated Iron / Plastic Boxes in respect of which depreciation is charged at 20% based on the estimated useful life of five years.

(b) On Plastic Crates and on specific assets of Happinezz Parlour on which depreciation is charged at 33.33% based on the estimated useful life of three years.

(c) In respect of Deep Freeze Machines for addition from the year 2001-02, depreciation is charged at 10% based on estimated useful life of Ten years.

(d) Cost of electrical installation more than five years old and their corresponding depreciation are adjusted from gross block of tangible assets and depreciation fund respectively.

Change in estimates :

(e) With effect from 1-04-2011 the company has reviewed the estimated useful life of Freezer on

wheels and estimated useful life is revised from 5 years to 7 years. Accordingly depreciation for the year is provided considering the revised rates. If depreciation had been provided at the old rates, depreciation would have been higher by Rs. 35.92 for the year and profit before tax lower by an equivalent amount.

(iii) IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of tangible assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

E) INVESTMENTS:

Investments are classified as non-current investments and are stated at cost. A Provision for diminution in the value of non-current investments is made for each investment individually, only if such decline is other than temporary.

(F) INVENTORIES:

Inventories are valued as under:

INVENTORY VALUATION METHOD

(i) Finished Goods : At lower of Cost or Net realizable value. Cost is determined on (Trading) 'FIFO' and 'Special identification' basis, whichever applicable. Due provision for obsolescence and wear & tear is made.

(ii) Machinery Parts : At Lower of cost or Net realizable Value. Cost is determined on "Weighted Average" basis.

Due Provision for obsolescence and wear & tear is made.

G) EMPLOYEES BENEFITS:

(a) Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, and short term compensated absences, etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

(b) Post-Employment Benefits:

(i) Defined Contribution Plans:

State Governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employee renders the related services.

(ii) Defined Benefit Plans:

The employee's gratuity fund scheme and compensated absences is company's defined benefit plans. The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations.

Actuarial gains and losses are recognised immediately in the profit and loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognize the obligation on net basis.

Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight -line basis over the average period until the benefits become vested.

(c) Long term employee benefits:

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b)ii) above.

H) BORROWING COST:

Borrowing cost utilized for acquisition, construction or production of qualifying assets are capitalized as part of cost of such assets till the activities necessary for its intended use are complete. All other borrowing costs are charged in statement of profit & loss of the year in which incurred.

(I) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realization of such asset. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance Sheet date to reassess realization.

(J) FOREIGN CURRENCY TRANSACTIONS:

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(ii) Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognised over the life of the contract. The difference in translation of current assets and current liabilities is recognized in the statement of Profit & Loss.

(iii) Exchange differences, in respect of accounting periods commencing on or after 7th December,2006 arising on reporting of long-term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the cost of the asset and are depreciated over

the remaining useful life of the asset, and in other cases are accumulated in a "Foreign currency Monetary item Translation Difference Account" in the company's financial statements and amortized over the balance period of such long term asset/liability but not beyond accounting period ending on or before 31st March, 2020.

(K) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent Liabilities are disclosed by way of notes to Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

(L) CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE:

All contingencies and events occurring after Balance Sheet date which have a material effect on the financial position of the company are considered for preparing the financial statement.

(M) 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.

(N) LEASES:

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight line basis over the lease term.

(O) CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

(P) MEASUREMENT OF EBITDA:

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act 1956, the Company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expense, finance costs and tax expense.


Mar 31, 2011

(A) ACCOUNTING CONVENTION :

The financial statements have been prepared in accordance with the accounting principles generally accepted in India (Indian GAAP) and comply with the Companies (Accounting Standards) Rules, 2006, issued by the Central Government and relevant provisions of Companies Act, 1956 and are based on the historical cost convention as modified to include the revaluation of certain fixed assets.

(B) USE OF ESTIMATES:

Preparation of financial statements in confirmity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of the financial statements and accompanying notes. Difference between the actual results and estimates, are recognised in the period in which the results are known/materialised.

(C) REVENUE RECOGNITION:

SALES ACCOUNTING:

(i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection. Revenue from Sale of goods is recognised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

(ii) Sales are shown net of Damages,Trade Discount and Special Scheme Discount.Sales do not include Value Added Tax.

(iii) Service charges income are accounted when there is reasonable certainty of recovery.

(iv) Income of Forex Advisory Fees accounted on accrual basis.

(v) Dividend income from Investment is accounted for when the right to receive is established

(D) FIXED ASSETS AND DEPRECIATION & IMPAIRMENT:

(i) Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss.Other attributable cost incurred for bringing the fixed assets to its intended use are added to the cost of Fixed Assets.Adjustments arising from exchange rate variations relating to transaction in foreign currencies attributable to Fixed Assets are capitalized.

(ii) Depreciation on fixed assets is provided on "Straight Line Method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act,1956,.(as amended) except in case of;

(a) On electrical installation (Acrylic Glow Sign Board & Translite) addition made upto 31.03.09, Push Carts,Tricycles, Insulated Iron / Plastic Boxes and Freezer on wheels in respect of which depreciation is charged at 20% based on the estimated useful life of five years.

(b) On Plastic Crates and on specific assets of Happinezz Parlour on which depreciation is charged at 33.33% based on the estimated useful life of three years.

(c) In respect of Deep Freeze Machines for addition from the year 2001-02,depreciation is charged at 10% based on estimated useful life of Ten years.

(d) Cost of electrical installation more than five years old and their corresponding depreciation are adjusted from gross block of fixed assets and depreciation fund respectively.

(iii) IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of fixed assets exceeds its recoverable amount.The recoverable amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

(E) INVESTMENTS:

Investments are classified as long term investments and are stated at cost.A Provision for diminution in the value of long term investments is made for each investment individually,only if such decline is other than temporary.

(F) INVENTORIES:

Inventories are valued as under: INVENTORY VALUATION METHOD

(i) Finished Goods At Cost or Net realisable value whichever is lower.Cost is determined on ‘FIFO' and (Trading) ‘Special identification' basis, whichever applicable.Due provision for obsolescence and wear & tear is made.

(ii) Machinery Parts At Lower of cost or Net realisable Value.Cost is determined on"Weighted Average" basis.Due Provision for obsolescence and wear & tear is made.

(G) EMPLOYEES BENEFITS :

(a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences, etc, and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

(b) Post-Employment Benefits :

(i) Defined Contribution Plans :

State Governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services.

(ii) Defined Benefit Plans:

The employee's gratuity fund scheme and compensated absences is company's defined benefit plans.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations.

Acturial gains and losses are recognised immediately in the profit and loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis.

Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight -line basis over the average period until the benefits become vested.

(c) Long term employee benefits :

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b)ii) above.

(H) FOREIGN CURRENCY TRANSACTIONS:

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(ii) Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,such difference having been recognised over the life of the contract. The difference in translation of current assets and current liabilities is recognized in the Profit & Loss Account.

(I) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present legal or constructive obligation,as a result of past events,for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent Liabilities are disclosed by way of notes to Accounts.

Contingent Assets are neither recognised nor disclosed in the financial statements.

(J) CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE:

All contingencies and events occurring after Balance Sheet date which have a material effect on the financial position of the company are considered for preparing the financial statement.

(K) BORROWING COST:

Borrowing cost utilized for acquisition,construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for its intended use are complete. All other borrowing costs are charged in statement of profit & loss of the year in which incurred.

(L) TAXES ON INCOME :

(i) Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised,on timing differences,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is reasonable certainity of realisation of such asset.Other deferred tax assets are recognised only to the extent there is resonable certainity of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation.

(M) MISCELLANEOUS EXPENDITURE :

Upfront interest paid on restructuring of term loans is amortised over the tenure of such loans.


Mar 31, 2010

(A) ACCOUNTING CONVENTION :

The financial statements have been prepared in accordance with the accounting principles generally accepted in India (Indian GAAP) and comply with the Companies (Accounting Standards) Rules,2006, issued by the Central Government and relevant provisions of Companies Act, 1956 and are based on the historical cost convention as modified to include the revaluation of certain fixed assets.

(B) USE OF ESTIMATES:

Preparation of financial statements in confirmity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of the financial statements and accompanying notes. Differance between the actual results and estimates, are recognised in the period in which the results are known/ materialised.

(C) REVENUE RECOGNITION:

SALES ACCOUNTING:

(i) Revenue is recognised when it is earned and no significant uncertainly exists as to its realisation or collection. Revenue from Sale of goods is recognised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

(li) Sales are shown net of Damages.Trade Discount and Special Scheme Discount.Sales do not include Value Added Tax.

(iii) Service charges income are accounted when there is reasonable certainty of recovery.

(iv) Income of Forex Advisory Fees accounted on accural basis.

(v) Dividend income from Investment is accounted for when the right to receive is established

(D) FIXED ASSETS AND DEPRECIATION & IMPAIRMENT:

(i) Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss.Other attributable cost incurred for bringing the fixed assets to its intended use are added to the cost of Fixed Assets.Adjustments arising from exchange rate variations relating to transaction in foreign currencies attributable to Fixed Assets are capitalised.

(ii) Depreciation on fixed assets is provided on "Straight Line Method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1356,.(as amended) except in case of;

(a) On electrical installation (Acrylic Glow Sign Board &Translite) addition madeupto31.03.09, Push Carts.Tricycles, Insulated Iron / Plastic Boxes and Freezer on wheels in respect of which depreciation is charged at 20% based on the estimated useful life of five years.

(b) On Plastic Crates and on specific assets of Happinezz Parlour on which depreciation is charged at 33.33% based on the estimated useful life of three years.

(c) In respect of Deep Freeze Machines for addition from the year 2001-02,depreciation is charged at 10% based on estimated useful life of Ten years.

(d) Cost of electrical installation more than five years old and their corresponding depreciation are adjusted from gross block of fixed assets and depreciation fund respectively.

(iii) IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed a? each balance sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of fixed assets exceeds its recoverable amount.The recoverable amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

(E) INVESTMENTS:

Investments are classified as long term investments and are stated at cost.A Provision for diminution in the value of long term investments is made for each investment individually.only if such decline is other than temporary.

(F) INVENTORIES:

Inventories are valued as under:

INVENTORY . VALUATION METHOD

(i) Finished Goods. At Cost or Net realisable value whichever is lower.Cost is determined on FIFO and (Trading) Special identification basis, whichever applicable. Due provision for obsolescence

and wear & tear is made. (ii) Machinery Parts. At Lower of cost or Net realisable Value.Cost is determined on"Weighted Average" basis.

Due Provision for obsolescence and wear & tear is made.

(G) EMPLOYEES BENEFITS :

(a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences, etc, and the expected cost of bonus, ex- gratia are recognised in the period in which the employee renders the related service.

(b) Post-Employment Benefits :

(i) Defined Contribution Plans :

State Governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services. (ii) Defined Benefit Plans:

The employees gratuity fund scheme and compensated absences is companys defined benefit plans. The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Secuirties as at the balance sheet date, having maturity periods approximating to the terms of related obligations.

Acturial gains and losses are recognised immediately in the profit and loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis.

Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight -line basis over the average period until the benefits become vested.

(c) Long term employee benefits :

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b)ii) above.

(H) FOREIGN CURRENCY TRANSACTIONS:

(i) transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(ii) Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,such difference having been recognised over the life of the contract. The difference in translation of current assets and current liabilities is recognized in the Profit & Loss Account. (I) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present legal or constructive obligation,as a result of past events,for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent Liabilities are disclosed by way of notes to Accounts.

Contingent Assets are neither recognised nor disclosed in the financial statements.

(J) CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE:

All contingencies and events occurring after Balance Sheet date which have a material effect on the financial position of the company are considered for preparing the financial statement. (K) BORROWING COST:

Borrowing cost utilized for acquisition,construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for Its intended use are complete. All other borrowing costs are charged in statement of profit & loss of the year in which incurred.

(L) TAXES ON INCOME :

(i) Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised.on timing differences,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is reasonable certainity of realisation of such asset.Other deferred tax assets are recognised only to the extent there is resonable certainity of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation.

(M) MISCELLANEOUS EXPENDITURE :

Upfront interest paid on restructuring of term loans is amortised over the tenure of such loans.