Mar 31, 2016
1. SIGNIFICANT ACCOUNTING POLICIES A) Basis of Accounting
a) The financial statements are prepared under the historical cost convention using the accrual system of accounting in accordance with the accounting principles generally accepted in India (Indian GAAP) including the mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 (âthe Actâ) read with Rule 7 of Companies (Accounts) Rules, 2014 and the Provisions of the Act.
b) Use of Estimates
The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provisions for doubtful debts, employee retirement benefits plans, provision for income tax, provision for warranty cost and the useful lives of fixed assets. The difference between the actual results and estimates are recognized in the period in which the results are known and materialized.
B) Fixed Assets/Capital Work-in-Progress
a) Fixed Assets are stated at cost, except for certain fixed assets which have been stated at revalued amounts, less accumulated depreciation/amortization and impairment loss, if any. The cost is inclusive of freight, installation cost, duties, taxes, financing cost and other incidental expenses related to the acquisition and installation of the respective assets but does not include tax/duty credits availed.
b) Capital Work-in-Progress is carried at cost, comprising of direct cost, attributable interest and related incidental expenditure.
C) Depreciation
Depreciation on fixed assets is provided to the extent of depreciable amount on the straight line method, based on useful life of assets as prescribed in Schedule II to the Companies Act, 2013, except depreciation on plant and machinery used in Refrigerator and Washing Machine Divisions has been provided on written down value method based on useful life of 13 years as against useful life of 15 years as prescribed in Schedule II to the Companies Act, 2013.
Assets costing of '' 5,000 or less are fully depreciated in the year of purchase.
Intangible Assets are amortized over a period of five years.
D) Impairment of Assets
The Fixed Assets or a group of assets (cash generating units) are reviewed for impairment at each Balance Sheet date. In case of any such indication, the recoverable amount of these assets or group of assets is determined, and if such recoverable amount of the asset or cash generating unit to which the asset belongs is less than itâs carrying amount, the impairment loss is recognized by writing down such assets to their recoverable amount. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.
E) Investments
Non Current Investments are stated at cost. The decline in the value of the investment, other than temporary, is provided for. Cost is inclusive of brokerage, fees and duties but excludes Securities Transaction Tax.
F) Inventories
Inventories are valued at cost or net realizable value whichever is lower. Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.
G) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of an qualifying assets are capitalized as part of the cost of that assets. Other borrowing costs are recognized as an expense in the period in which they are incurred.
H) Excise and Customs Duty
Excise Duty in respect of finished goods lying in the factory premises and Customs Duty on goods lying in customs bonded warehouse are provided for and included in the valuation of inventory.
I) CENVAT/Value Added Tax
CENVAT/Value Added Tax benefit is accounted for by reducing the purchase cost of the materials/fixed assets/services.
J) Revenue Recognition
a) Revenue is recognized on transfer of significant risk and reward in respect of ownership.
b) Sales/Turnover for the year includes sales value of goods, excise duty, duty drawback and other recoveries such as insurance, transportation and packing charges but excludes sales tax, value added tax and recovery of finance and discounting charges.
c) Insurance, Duty Drawback and other claims are accounted for as and when admitted by the appropriate authorities.
d) Dividend on investments is recognized when the right to receive is established.
K) Foreign Currency Transactions
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transactions. Foreign Currency Monetary Assets and Liabilities are translated at the yearend rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of Monetary Items at the end of the year is recognized, as the case may be, as income or expense for the year.
L) Employee Benefits
a) Short Term Employees Benefits
Short Term Employees Benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered.
b) Post Employment Benefits
i) Provident Fund - Defined Contribution Plan
The Company contributes monthly at a determined rate. These contributions are remitted to the Employeesâ Provident Fund Organization, India for this purpose and is charged to Statement of Profit and Loss on accrual basis.
ii) Gratuity - Defined Benefit Plan
The Company provides for gratuity to all the eligible employees. The benefit is in the form of lump sum payments to vested employees on retirement, on death while in employment, or termination of employment for an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs on completion of five years of service. Liability in respect of gratuity is determined using the projected unit credit method with actuarial valuations as on the Balance Sheet date and gains/losses are recognized immediately in the Statement of Profit and Loss.
iii) Leave Encashment
Liability in respect of leave encashment is determined using the projected unit credit method with actuarial valuations as on the Balance Sheet date and gains/losses are recognized immediately in the Statement of Profit and Loss.
M) Taxation
Income tax comprises of current tax and deferred tax. Provision for current income tax is made on the assessable income/benefits at the rate applicable to the relevant assessment year. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date. The carrying amount of deferred tax asset/liability are reviewed at each Balance Sheet date and recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.
Minimum Alternate Tax (MAT) paid on the book profits, which give rise to future economic benefits in the form of tax credit against future income-tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax within the period specified for utilization of such credit.
N) Research and Development
Revenue Expenditure pertaining to Research and Development is charged to revenue under the respective heads of account in the year in which it is incurred. Capital expenditure, if any, on Research and Development is shown as an addition to Fixed Assets, under the respective heads.
O) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources in respect of which reliable estimates can be made.
Contingent Liabilities are not recognized but are disclosed in the Notes to Financial Statements. Disputed demands in respect of Central Excise, Custom duty, Income tax, Sales tax and Other are disclosed as contingent liabilities. Payment in respect of such demands, if any, is shown as an advance, till the final outcome of the matter.
Contingent assets are not recognized in the financial statements.
P) Warranty
Provision for the estimated liability in respect of warranty on sale of consumer electronics and home appliances products is made in the year in which the revenues are recognized, based on technical evaluation and past experience.
Q) Government Grant
Grants are recognized when there is reasonable assurance that the grant will be received and conditions attached to them are complied with. Grants related to depreciable assets are treated as deferred income, which is recognized in the Statement of Profit and Loss over the period of useful life of the assets and in the proportions in which depreciation on related assets is charged.
R) Prior period items
Prior period items are included in the respective heads of accounts and material items are disclosed by way of Notes to Financial Statements.
S) Other Accounting Policies
These are consistent with the generally accepted accounting principles.
Dec 31, 2014
A) Basis of Accounting
a) The financial statements are prepared under the historical cost
convention, except for certain fixed assets which are revalued, using
the accrual system of accounting in accordance with the accounting
principles generally accepted in India (Indian GAAP) and the
requirements of the Companies Act 1956, including the mandatory
Accounting Standards as prescribed by the Companies (Accounting
Standards) Rules, 2006.
b) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
retirement benefits plans, provision for income tax, provision for
warranty cost and the useful lives of fixed assets. The difference
between the actual results and estimates are recoginised in the period
in which the results are known and materialised.
B) Fixed Assets/Capital Work-in-Progress
a) Fixed Assets are stated at cost, except for certain fixed assets
which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The cost is
inclusive of freight, installation cost, duties, taxes, fi nancing cost
and other incidental expenses related to the acquisition and
installation of the respective assets but does not include tax/duty
credits availed.
b) Capital Work-in-Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure.
C) Depreciation
The Company provides depreciation on fixed assets on straight line
method at the rates specifi ed in the Schedule XIV to the Companies
Act, 1956, except on plant and machinery used in Refrigerator and
Washing Machine Divisions, on which depreciation has been provided on
written down value method at the rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956.
Intangible Assets are amortised over a period of five years.
D) Impairment of Assets
The Fixed Assets or a group of assets (cash generating units) are
reviewed for impairment at each Balance Sheet date. In case of any such
indication, the recoverable amount of these assets or group of assets
is determined, and if such recoverable amount of the asset or cash
generating unit to which the asset belongs is less than it''s carrying
amount, the impairment loss is recognised by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
E) Investments
Non Current Investments are stated at cost. The decline in the value of
the investment, other than temporary, is provided for. Cost is
inclusive of brokerage, fees and duties but excludes Securities
Transaction Tax.
F) Inventories
Inventories are valued at cost or net realisable value whichever is
lower. Cost of inventories comprises all costs of purchase, conversion
and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
G) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of an qualifying assets are capitalised as
part of the cost of that assets. Other borrowing costs are recognised
as an expense in the period in which they are incurred.
H) Excise and Customs Duty
Excise Duty in respect of fi nished goods lying in the factory premises
and Customs Duty on goods lying in customs bonded warehouse are
provided for and included in the valuation of inventory.
I) CENVAT/Value Added Tax
CENVAT/Value Added Ta x benefit is accounted for by reducing the
purchase cost of the materials/fixed assets/services.
J) Revenue Recognition
a) Revenue is recongnised on transfer of signifi cant risk and reward
in respect of ownership.
b) Sales/Turnover for the year includes sales value of goods, excise
duty, duty drawback and other recoveries such as insurance,
transportation and packing charges but excludes sales tax, value added
tax and recovery of fi nance and discounting charges.
c) Insurance, Duty Drawback and other claims are accounted for as and
when admitted by the appropriate authorities.
d) Dividend on investments is recognised when the right to receive is
established.
K) Foreign Currency Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Foreign Currency Monetary
Assets and Liabilities are translated at the year end rate. The
difference between the rate prevailing on the date of transaction and
on the date of settlement as also on translation of Monetary Items at
the end of the year is recognised, as the case may be, as income or
expense for the year.
L) Employee Benefits
a) Short Term Employees Benefits
Short Term Employees Benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related services are rendered.
b) Post Employment Benefits
i) Provident Fund - Defi ned Contribution Plan
The Company contributes monthly at a determined rate. These
contributions are remitted to the Employees'' Provident Fund
Organisation, India for this purpose and is charged to Statement of
Profit and Loss on accrual basis.
ii) Gratuity - Defi ned Benefit Plan
The Company provides for gratuity to all the eligible employees. The
benefit is in the form of lump sum payments to vested employees on
retirement, on death while in employment, or termination of employment
for an amount equivalent to 15 days salary payable for each completed
year of service.
Vesting occurs on completion of five years of service. Liability in
respect of gratuity is determined using the projected unit credit
method with actuarial valuations as on the Balance Sheet date and
gains/losses are recognized immediately in the Statement of Profit and
Loss.
iii) Leave Encashment
Liability in respect of leave encashment is determined using the
projected unit credit method with actuarial valuations as on the
Balance Sheet date and gains/losses are recognized immediately in the
Statement of Profit and Loss.
M) Taxation
Income tax comprises of current tax and deferred tax. Provision for
current income tax is made on the assessable income/benefits at the
rate applicable to the relevant assessment year. Deferred tax assets
and liabilities are recognised for the future tax consequences of
timing differences, subject to the consideration of prudence. Deferred
tax assets and liabilities are measured using the tax rates enacted or
substantively enacted by the Balance Sheet date. The carrying amount of
deferred tax asset/liability are reviewed at each Balance Sheet date
and recognised and carried forward only to the extent that there is a
reasonable certainty that the asset will be realised in future.
Minimum Alternate Tax (MAT) paid on the book Profits, which give rise
to future economic benefits in the form of tax credit against future
income-tax liability, is recognised as an asset in the Balance Sheet if
there is convincing evidence that the Company will pay normal tax
within the period specifi ed for utilisation of such credit.
N) Research and Development
Revenue Expenditure pertaining to Research and Development is charged
to revenue under the respective heads of account in the year in which
it is incurred. Capital expenditure, if any, on Research and
Development is shown as an addition to Fixed Assets, under the
respective heads.
O) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outfl ow
of resources in respect of which reliable estimates can be made.
Contingent Liabilities are not recognised but are disclosed in the
Notes to Financial Statements. Disputed demands in respect of Central
Excise, Custom duty, Income tax, Sales tax and Other are disclosed as
contingent liabilities. Payment in respect of such demands, if any, is
shown as an advance, till the fi nal outcome of the matter.
Contingent assets are not recognised in the financial statements.
P) Warranty
Provision for the estimated liability in respect of warranty on sale of
consumer electronics and home appliances products is made in the year
in which the revenues are recognised, based on technical evaluation and
past experience.
Q) Prior period items
Prior period items are included in the respective heads of accounts and
material items are disclosed by way of Notes to Financial Statements.
R) Other Accounting Policies
These are consistent with the generally accepted accounting principles.
Dec 31, 2013
A) Basis of Accounting
a) The financial statements are prepared under the historical cost
convention, except for certain fixed assets which are revalued, using
the accrual system of accounting in accordance with the accounting
principles generally accepted in India (Indian GAAP) and the
requirements of the Companies Act, 1956, including the mandatory
Accounting Standards as prescribed by the Companies (Accounting
Standards) Rules, 2006.
b) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
retirement benefits plans, provision for income tax, provision for
warranty cost and the useful lives of fixed assets. The difference
between the actual results and estimates are recoginised in the period
in which the results are known and materialised.
B) Fixed Assets/Capital Work-in-Progress
a) Fixed Assets are stated at cost, except for certain fixed assets
which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The cost is
inclusive of freight, installation cost, duties, taxes, financing cost
and other incidental expenses related to the acquisition and
installation of the respective assets but does not include tax/duty
credits availed.
b) Capital Work-in-Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure.
C) Depreciation
The Company provides depreciation on fixed assets on straight line
method at the rates specified in the Schedule XIV to the Companies
Act, 1956, except on plant and machinery used in Refrigerator and
Washing Machine Divisions, on which depreciation has been provided on
written down value method at the rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956. Intangible Assets are
amortised over a period of five years.
D) Impairment of Assets
The Fixed Assets or a group of assets (cash generating units) are
reviewed for impairment at each Balance Sheet date. In case of any such
indication, the recoverable amount of these assets or group of assets
is determined, and if such recoverable amount of the asset or cash
generating unit to which the asset belongs is less than it''s carrying
amount, the impairment loss is recognised by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
E) Investments
Non Current Investments are stated at cost. The decline in the value of
the investment, other than temporary, is provided for. Cost is
inclusive of brokerage, fees and duties but excludes Securities
Transaction Tax.
F) Inventories
Inventories are valued at cost or net realisable value whichever is
lower. Cost of inventories comprises all costs of purchase, conversion
and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
G) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of an qualifying assets are capitalised as
part of the cost of that assets. Other borrowing costs are recognised
as an expense in the period in which they are incurred.
H) Excise and Customs Duty
Excise Duty in respect of finished goods lying in the factory premises
and Customs Duty on goods lying in customs bonded warehouse are
provided for and included in the valuation of inventory.
I) CENVAT/Value Added Tax
CENVAT/Value Added Tax benefit is accounted for by reducing the
purchase cost of the materials/fixed assets/services.
J) Revenue Recognition
a) Revenue is recongnised on transfer of significant risk and reward
in respect of ownership.
b) Sales/Turnover for the year includes sales value of goods, excise
duty, duty drawback and other recoveries such as insurance,
transportation and packing charges but excludes sales tax, value added
tax and recovery of finance and discounting charges.
c) Insurance, Duty Drawback and other claims are accounted for as and
when admitted by the appropriate authorities.
d) Dividend on investments is recognised when the right to receive is
established.
K) Foreign Currency Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Foreign Currency Monetary
Assets and Liabilities are translated at the year end rate. The
difference between the rate prevailing on the date of transaction and
on the date of settlement as also on translation of Monetary Items at
the end of the year is recognised, as the case may be, as income or
expense for the year.
L) Employee Benefits
a) Short Term Employees Benefits
Short Term Employees Benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related services are rendered.
b) Post Employment Benefits
i) Provident Fund - Defined Contribution Plan
The Company contributes monthly at a determined rate. These
contributions are remitted to the Employees'' Provident Fund
Organisation, India for this purpose and is charged to Statement of
Prof t and Loss on accrual basis.
ii) Gratuity - Defined Benefit Plan
The Company provides for gratuity to all the eligible employees. The
benefit is in the form of lump sum payments to vested employees on
retirement, on death while in employment, or termination of employment
for an amount equivalent to 15 days salary payable for each completed
year of service.
Vesting occurs on completion of five years of service. Liability in
respect of gratuity is determined using the projected unit credit
method with actuarial valuations as on the Balance Sheet date and
gains/losses are recognized immediately in the Statement of Profit and
Loss.
iii) Leave Encashment
Liability in respect of leave encashment is determined using the
projected unit credit method with actuarial valuations as on the
Balance Sheet date and gains/losses are recognized immediately in the
Statement of Profit and Loss.
M) Taxation
Income tax comprises of current tax and deferred tax. Provision for
current income tax is made on the assessable income/benefits at the
rate applicable to the relevant assessment year. Deferred tax assets
and liabilities are recognised for the future tax consequences of
timing differences, subject to the consideration of prudence. Deferred
tax assets and liabilities are measured using the tax rates enacted or
substantively enacted by the Balance Sheet date. The carrying amount of
deferred tax asset/liability are reviewed at each Balance Sheet date
and recognised and carried forward only to the extent that there is a
reasonable certainty that the asset will be realised in future.
Minimum Alternate Ta x (MAT) paid on the book profits, which give rise
to future economic benefits in the form of tax credit against future
income-tax liability, is recognised as an asset in the Balance Sheet if
there is convincing evidence that the Company will pay normal tax
within the period specified for utilisation of such credit.
N) Research and Development
Revenue Expenditure pertaining to Research and Development is charged
to revenue under the respective heads of account in the year in which
it is incurred. Capital expenditure, if any, on Research and
Development is shown as an addition to Fixed Assets, under the
respective heads.
O) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources in respect of which reliable estimates can be made.
Contingent Liabilities are not recognised but are disclosed in the
Notes. Disputed demands in respect of Central Excise, Custom duty,
Income tax, Sales tax and Other are disclosed as contingent
liabilities. Payment in respect of such demands, if any, is shown as an
advance, till the final outcome of the matter.
Contingent assets are not recognised in the financial statements.
P) Warranty
Provision for the estimated liability in respect of warranty on sale of
consumer electronics and home appliances products is made in the year
in which the revenues are recognised, based on technical evaluation
and past experience.
Q) Prior period items
Prior period items are included in the respective heads of accounts and
material items are disclosed by way of Notes to Financial Statements.
R) Other Accounting Policies
These are consistent with the generally accepted accounting principles.
2.2 Rights, preference and restrictions:
a) The Company has only one class of equity shares having par value ofRs.
10/- per share. Each holder of equity shares is entitled to equal right
of voting and dividend.
b) In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
Dec 31, 2012
A) Basis of Accounting
a) The financial statements are prepared under the historical cost
convention, except for certain fixed assets which are revalued, using
the accrual system of accounting in accordance with the accounting
principles generally accepted in India (Indian GAAP) and the
requirements of the Companies Act 1956, including the mandatory
Accounting Standards as prescribed by the Companies (Accounting
Standards) Rules, 2006.
b) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
retirement benefits plans, provision for income tax, provision for
warranty cost and the useful lives of fixed assets. The difference
between the actual results and estimates are recoginised in the period
in which the results are known and materialised.
B) Fixed Assets/Capital Work-in-Progress
a) Fixed Assets are stated at cost, except for certain fixed assets
which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The cost is
inclusive of freight, installation cost, duties, taxes, financing cost
and other incidental expenses related to the acquisition and
installation of the respective assets but does not include tax/duty
credits availed.
b) Capital Work-in-Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure.
C) Depreciation
The Company provides depreciation on fixed assets on straight line
method at the rates specified in the Schedule XIV to the Companies Act,
1956, except on plant and machinery used in Refrigerator and Washing
Machine Divisions, on which depreciation has been provided on written
down value method at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956. Intangible Assets are amortised over a
period of five years.
D) Impairment of Assets
The Fixed Assets or a group of assets (cash generating units) are
reviewed for impairment at each Balance Sheet date. In case of any such
indication, the recoverable amount of these assets or group of assets
is determined, and if such recoverable amount of the asset or cash
generating unit to which the asset belongs is less than it''s carrying
amount, the impairment loss is recognised by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
E) Investments
Quoted Investments are stated at cost or market value whichever is
lower. Unquoted Investments are stated at cost. The decline in the
value of the Unquoted Investments, other than temporary, is provided
for. Cost is inclusive of brokerage, fees and duties but excludes
Securities Transaction Tax.
F) Inventories
Inventories are valued at cost or net realisable value whichever is
lower. Cost of inventories compr ises all costs of purchase, conversion
and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
G) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of an qualifying assets are capitalised as
part of the cost of that assets. Other borrowing costs are recognised
as an expense in the period in which they are incurred.
H) Excise and Customs Duty
Excise Duty in respect of finished goods lying in the factory premises
and Customs Duty on goods lying in customs bonded warehouse are
provided for and included in the valuation of inventory.
I) CENVAT/Value Added Tax
CENVAT/Value Added Tax benefit is accounted for by reducing the
purchase cost of the materials/fixed assets/services.
J) Revenue Recognition
a) Revenue is recongnised on transfer of significant risk and reward in
respect of ownership.
b) Sales/Turnover for the year includes sales value of goods, excise
duty, duty drawback and other recoveries such as insurance,
transportation and packing charges but excludes sales tax, value added
tax and recovery of finance and discounting charges.
c) Insurance, Duty Drawback and other claims are accounted for as and
when admitted by the appropriate authorities.
d) Dividend on investments is recognised when the right to receive is
established.
K) Foreign Currency Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Foreign Currency Monetary
Assets and Liabilities are translated at the year end rate. The
difference between the rate prevailing on the date of transaction and
on the date of settlement as also on translation of Monetary Items at
the end of the year is recognised, as the case may be, as income or
expense for the year.
L) Employee Benefits
a) Short Term Employees Benefits
Short Term Employees Benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related services are rendered.
b) Post Employment Benefits
i) Provident Fund - Defined Contribution Plan
The Company contributes monthly at a determined rate. These
contributions are remitted to the Employees'' Provident Fund
Organisation, India for this purpose and is charged to Statement of
Profit and Loss on accrual basis.
ii) Gratuity - Defined Benefit Plan
The Company provides for gratuity to all the eligible employees. The
benefit is in the form of lump sum payments to vested employees on
retirement, on death while in employment, or termination of employment
for an amount equivalent to 15 days salary payable for each completed
year of service. Vesting occurs on completion of five years of service.
Liability in respect of gratuity is determined using the projected unit
credit method with actuarial valuations as on the Balance Sheet date
and gains/losses are recognized immediately in the Statement of Profit
and Loss. iii) Leave Encashment
Liability in respect of leave encashment is determined using the
projected unit credit method with actuarial valuations as on the
Balance Sheet date and gains/losses are recognized immediately in the
Statement of Profit and Loss.
M) Taxation
Income tax comprises of current tax and deferred tax. Provision for
current income tax is made on the assessable income/benefits at the
rate applicable to the relevant assessment year. Deferred tax assets
and liabilities are recognised for the future tax consequences of
timing differences, subject to the consideration of prudence. Deferred
tax assets and liabilities are measured using the tax rates enacted or
substantively enacted by the Balance Sheet date. The carrying amount of
deferred tax asset/liability are reviewed at each Balance Sheet date
and recognised and carried forward only to the extent that there is a
reasonable certainty that the asset will be realised in future.
Minimum Alternate Tax (MAT) paid on the book profits, which give rise
to future economic benefits in the form of tax credit against future
income-tax liability, is recognised as an asset in the Balance Sheet if
there is convincing evidence that the Company will pay normal tax
within the period specified for utilisation of such credit.
N) Research and Development
Revenue Expenditure pertaining to Research and Development is charged
to revenue under the respective heads of account in the year in which
it is incurred. Capital expenditure, if any, on Research and
Development is shown as an addition to Fixed Assets, under the
respective heads.
O) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources in respect of which reliable estimates can be made.
Contingent Liabilities are not recognised but are disclosed in the
Notes. Disputed demands in respect of Central Excise, Custom duty,
Income tax, Sales tax and Other are disclosed as contingent
liabilities. Payment in respect of such demands, if any, is shown as an
advance, till the final outcome of the matter. Contingent assets are
not recognised in the financial statements.
P) Warranty
Provision for the estimated liability in respect of warranty on sale of
consumer electronics and home appliances products is made in the year
in which the revenues are recognised, based on technical evaluation and
past experience.
Q) Prior period items
Prior period items are included in the respective heads of accounts and
material items are disclosed by way of Notes to Financial Statements.
R) Other Accounting Policies
These are consistent with the generally accepted accounting principles.
Dec 31, 2011
1. Basis of Accounting
a) The financial statements are prepared under the historical cost
convention, except for certain fixed assets which are revalued, using
the accrual system of accounting in accordance with the accounting
principles generally accepted in India (Indian GAAP) and the
requirements of the Companies Act. 1956. including the mandatory
Accounting Standards as prescribed by the Companies (Accounting
Standards) Rules, 2006.
b) Use of Estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
retirement benefits plans, provision for income tax, provision for
warranty cost and the useful lives of fixed assets. The difference
between the actual results and estimates are recognised in the year in
which the results are known and materialised.
2. Fixed Assets/Capital Work-in-Progress
a) Fixed Assets are stated at cost, except for certain fixed assets
which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The cost is
inclusive of freight, installation cost, duties, taxes, financing cost
and other incidental expenses related to the acquisition and
installation of the respective assets but does not include tax/duty
credits availed.
b) Capital Work-in-Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure. The
advances given for acquiring fixed assets are shown under Capital
Work-in-Progress.
3. Depreciation
The Company provides depreciation on fixed assets on straight line
method at the rates specified in the Schedule XIV to the Companies Act,
1956, except on plant and machinery used in Refrigerator and Washing
Machine Divisions, on which depreciation has been provided on written
down value method at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956.
Intangible Assets are amortised over a period of five years.
4. Impairment of Assets
The Fixed Assets or a group of assets (cash generating units) are
reviewed for impairment at each Balance Sheet date. In case of any such
indication, the recoverable amount of these assets or group of assets
is determined, and if such recoverable amount of the asset or cash
generating unit to which the asset belongs is less than its carrying
amount, the impairment loss is recognised by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased,
5. Investments
Quoted Investments are valued at cost or market value whichever is
lower. Unquoted Investments are stated at cost. The decline in the
value of the Unquoted Investments, other than temporary, is provided
for. Cost is inclusive of brokerage, fees and duties but excludes
Securities Transaction Tax.
6. Inventories
Inventories are valued at cost or net realisable value whichever is
lower. Cost of inventories comprises al! costs of purchase, conversion
and other costs inquired in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
7. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalised as part
of the cost of that assets. Other borrowing costs are recognised as an
expense in the period in which they are incurred.
8. Excise and Customs Duty
Excise Duty in respect of finished goods lying in the factory premises
and Customs Duty on goods lying in customs bonded warehouse are
provided for and included in the valuation of inventory.
9. CENVAT/Value Added Tax
CENVAT/Value Added Tax benefit is accounted for by reducing the pu
chase cost of the materials/fixed assets/services.
10. Revenue Recognition
a) Revenue is recognised on transfer of significant risk and reward in
respect of ownership.
b) Sales/Turnover for the year includes sales value of goods, excise
duty, duty drawback and other recoveries such as insurance,
transportation and packing charges but excludes sales tax, value added
tax and recovery of finance and discounting charges.
c) Insurance, Duty Drawback and other claims are accounted for as and
when admitted by the appropriate authorities.
d) Dividend on investments is recognised when the right to receive is
established.
11. Foreign Currency Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Foreign Currency Monetary
Assets and Liabilities are translated at the year end rate. The
difference between the rate prevailing on the date of transaction and
on the date of settlement as also on translation of Monetary Items at
the end of the year is recognised, as the case may be, as income or
expense for the year/period.
12. Employee Benefits
a) Short Term Employees Benefits
Short Term Employees Benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Account of the period in
which the related services are rendered.
b) Post Employment Benefits
i) Provident Fund - Defined Contribution Plan
The Company contributes monthly at a determined rate. These
contributions are remitted to the Employees' Provident Fund
Organisation, India for this purpose and is charged to Profit and Loss
Account on accrual basis.
ii) Gratuity - Defined Benefit Plan
The Company provides for gratuity to all the eligible employees. The
benefit is in the form of lump sum payments to vested employees on
retirement, on death while in employment, or termination of employment
for an amount equivalent to 15 days salary payable for each completed
year of service. Vesting occurs on the completion of five years of
service. Liability in respect of gratuity is determined using the
projected unit credit method with actuarial valuations as on the
Balance Sheet date and gains/losses are recognised immediately in the
Profit and Loss Account.
iii) Leave Encashment
Liability in respect of leave encashment is determined using the
projected unit credit method with actuarial valuations as on the
Balance Sheet date and gains/losses are recognised immediately in the
Profit and Loss Account.
13. Taxation
Income tax comprises of current tax and deferred tax. Provision for
current income tax is made on the assessable income/benefits at the
rate applicable to the relevant assessment year. Deferred tax assets
and liabilities are recognised for the future tax consequences of
timing differences, subject to the consideration of prudence. Deferred
tax assets and liabilities are measured using the tax rates enacted or
substantively enacted by the Balance Sheet date. The carrying amount of
deferred tax asset/liability are reviewed at each Balance Sheet date
and recognised and carried forward only to the extent that there is a
reasonable certainty that the asset will be realised in future.
Minimum Alternate Tax (MAT) paid on the book profits, which give rise
to future economic benefits in the form of tax credit against future
income-tax liability, is recognised as an asset in the Balance Sheet if
there is convincing evidence that the Company will pay normal tax
within the period specified for utilisation of such credit.
14. Research and Development
Revenue Expenditure pertaining to Research and Development is charged
to revenue under the respective heads of account in the year in which
it is incurred. Capital expenditure, if any, on Research and
Development is shown as an addition to Fixed Assets, under the
respective heads.
15. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources in respect of which reliable estimates can be made.
Contingent Liabilities are disclosed by way of Notes to Accounts.
Disputed demands in respect of Central Excise, Custom duty, Income tax
and Sales tax are disclosed as contingent liabilities. Payment in
respect of such demands, if any, is shown as an advance, till the final
outcome of the matter.
Contingent assets are not recognised in the financial statements.
16. Warranty
Provision tor the estimated liability in respect of warranty on sale of
consumer electronics and home appliances products is made in the year
in which the revenue is recognised, based on technical evaluation and
past experience.
17. Prior period Items etc.
Prior period items are included in the respective heads of accounts and
material items are disclosed by way of Notes to Accounts.
18. Other Accounting Policies
These are consistent with the generally accepted accounting principles.
Dec 31, 2010
1. Basis of Accounting
a) The financial statements are prepared under the historical cost
convention, except for certain fixed assets which are revalued, using
the accrual system of accounting in accordance with the accounting
principles generally accepted in India (Indian GAAP) and the
requirements of the Companies Act 1956, including the mandatory
Accounting Standards as prescribed by the Companies (Accounting
Standards) Rules, 2006.
b) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
retirement benefits plans, provision for income tax, provision for
warranty cost and the useful lives of fixed assets. The difference
between the actual results and estimates are recoginised in the period
in which the results are known and materialised.
2. Fixed Assets/Capital Work in Progress
a) Fixed Assets are stated at cost, except for certain fixed assets
which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The cost is
inclusive of freight, installation cost, duties, taxes, financing cost
and other incidental expenses related to the acquisition and
installation of the respective assets but does not include tax/duty
credits availed.
b) Capital Work in Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure. The
advances given for acquiring fixed assets are shown under Capital Work
in Progress.
3. Depreciation
The Company provides depreciation on fixed assets on straight line
method at the rates specified in the Schedule XIV to the Companies Act,
1956, except on plant and machinery used in Refrigerator and Washing
Machine Divisions, on which depreciation has been provided on written
down value method at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956. Intangible Assets are amortised over a
period of five years.
4. Impairment of Assets
The Fixed Assets or a group of assets (cash generating units) are
reviewed for impairment at each Balance Sheet date. In case of any such
indication, the recoverable amount of these assets or group of assets
is determined, and if such recoverable amount of the asset or cash
generating unit to which the asset belongs is less than its carrying
amount, the impairment loss is recognised by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
5. Investments
Quoted Investments are valued at cost or market value whichever is
lower. Unquoted Investments are stated at cost. The decline in the
value of the Unquoted Investments, other than temporary, is provided
for. Cost is inclusive of brokerage, fees and duties but excludes
Securities Transaction Tax.
6. Inventories
Inventories are valued at cost or net realisable value whichever is
lower. Cost of inventories comprises all costs of purchase, conversion
and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
7. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalised as part
of the cost of those assets. Other borrowing costs are recognised as an
expense in the period in which they are incurred.
8. Excise and Customs Duty
Excise Duty in respect of finished goods lying in factory premises and
Customs Duty on goods lying in customs bonded warehouse are provided
for and included in the valuation of inventory.
9. CENVAT/Value Added Tax
CENVAT/ Value Added Tax benefit is accounted for by reducing the
purchase cost of the materials/ fixed assets/ services.
10. Revenue Recognition
a) Revenue is recongnised on transfer of significant risk and reward in
respect of ownership.
b) Sales/Turnover for the period/ year includes sales value of goods,
excise duty, duty drawback and other recoveries such as insurance,
transportation and packing charges but excludes sales tax, value added
tax and recovery of finance and discounting charges.
c) Insurance, duty drawback and other claims are accounted for as and
when admitted by the appropriate authorities.
d) Dividend on investments is recognised when the right to receive is
established.
11. Foreign Currency Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Foreign Currency Monetary
Assets and Liabilities are translated at the year end rate. The
difference between the rate prevailing on the date of transaction and
on the date of settlement as also on translation of Monetary Items at
the end of the year is recognised, as the case may be, as income or
expense for the period.
12. Employee Benefits
a) Short Term Employee Benefits
Short Term Employee Benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Account of the period in
which the related services are rendered.
b) Post Employment Benefits
i) Provident Fund - Defined Contribution Plan
The Company contributes monthly at a determined rate. These
contributions are remitted to the Employees Provident Fund
Organisation, India for this purpose and is charged to Profit and Loss
Account on accrual basis.
ii) Gratuity - Defined Benefit Plan
The Company provides for gratuity to all the eligible employees. The
benefit is in the form of lump sum payments to vested employees on
retirement, on death while in employment, or termination of employment
for an amount equivalent to 15 days salary payable for each completed
year of service. Vesting occurs on completion of five years of service.
Liability in respect of gratuity is determined using the projected unit
credit method with actuarial valuations as on the Balance Sheet date
and gains/losses are recognised immediately in the Profit and Loss
Account.
iii) Leave Encashment
Liability in respect of leave encashment is determined using the
projected unit credit method with actuarial valuations as on the
Balance Sheet date and gains/losses are recognized immediately in the
Profit and Loss Account.
13. Taxation
Income tax comprises of current tax and deferred tax. Provision for
current income tax is made on the assessable income/benefits at the
rate applicable to relevant assessment year. Deferred tax assets and
liabilities are recognised for the future tax consequences of timing
differences, subject to the consideration of prudence. Deferred tax
assets and liabilities are measured using the tax rates enacted or
substantively enacted by the Balance Sheet date. The carrying amount of
deferred tax asset/liability are reviewed at each Balance Sheet date
and recognised and carried forward only to the extent that there is a
reasonable certainty that the asset will be realised in future.
Minimum Alternate Tax (MAT) paid on the book profits, which gives rise
to future economic benefits in the form of tax credit against future
income tax liability, is recognised as an asset in the Balance Sheet if
there is convincing evidence that the Company will pay normal tax
within the period specified for utilisation of such credit.
14. Research and Development
Revenue Expenditure pertaining to Research and Development is charged
to revenue under the respective heads of account in the year in which
it is incurred. Capital expenditure, if any, on Research and
Development is shown as an addition to Fixed Assets, under the
respective heads.
15. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources in respect of which reliable estimate can be made.
Contingent Liabilities are disclosed by way of Notes to Accounts.
Disputed demands in respect of Central Excise, Customs, Income tax and
Sales Tax are disclosed as contingent liabilities. Payment in respect
of such demands, if any, is shown as an advance, till the final outcome
of the matter.
Contingent assets are not recognised in the financial statements.
16. Warranty
Provision for the estimated liability in respect of warranty on sale of
consumer electronics and home appliances products is made in the year
in which the revenue is recognised, based on technical evaluation and
past experience.
17. Prior period Items etc.
Prior period items are included in the respective heads of accounts and
material items are disclosed by way of Notes to Accounts.
18. Other Accounting Policies
These are consistent with the generally accepted accounting principles.
Sep 30, 2009
1. Basis of Accounting
a) The financial statements are prepared under the historical cost
convention, except for certain fixed assets which are revalued, using
the accrual system of accounting in accordance with the accounting
principles generally accepted in India (Indian GAAP) and the
requirements of the Companies Act, 1956, including the mandatory
Accounting Standards as prescribed by the Companies (Accounting
Standards) Rules, 2006.
b) Use of Estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
retirement benefits plans, provision for income tax, accounting for
contract costs expected to be incurred to complete software development
and the useful lives of fixed assets. The difference between the actual
results and estimates are recoginised in the period in which the
results are known and materlised.
2. Fixed Assets
a) Fixed Assets are stated at actual cost, except for certain fixed
assets which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The actual cost
is inclusive of freight, installation cost, duties, taxes, financing
cost and other incidental expenses but net of Cenvat/Value added tax.
b) Capital Work-in-Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure. The
advances given for acquiring fixed assets are shown under Capital
Work-in-Progress.
3. Depreciation
The Company provides depreciation on fixed assets on straight line
method at the rates specified in the Schedule XIV to the Companies Act,
1956 except on plant and machinery used in Refrigerator and Washing
Machine Divisions, on which depreciation has been provided on written
down value method at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956. Intangible Assets are amortised over a
period of five years.
4. Impairment of Assets
The Fixed Assets or a group of assets (Cash generating units) are
reviewed for impairment at each Balance Sheet date. In case of any such
indication, the recoverable amount of these assets or group of assets
is determined, and if such recoverable amount of the asset or cash
generating unit to which the asset belongs is less than its carrying
amount, the impairment loss is recognised by writing down such assets
to their recoverable amount. An impairment loss is reversed if there is
change in the recoverable amount and such loss either no longer exists
or has decreased.
5. Investments
Quoted Investments are valued at cost or market value whichever is
lower. Unquoted Investments are stated at cost. The decline in the
value of the Unquoted Investments, other than temporary, is provided
for. Cost is inclusive of brokerage, fees and duties but excludes
Securities Transaction Tax.
6. Inventories
Inventories are valued at cost or net realisable^ value whichever is
lower. Cost of inventories comprises all costs of purchase, conversion
and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
7. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of an qualifying assets are capitalised as
part of the cost of that assets. Other borrowing costs are recognised
as an expense in the period in which they are incurred.
8. Excise and Customs Duty
Excise Duty in respect of finished goods lying in factory premises and
Customs Duty on goods lying in customs bonded warehouse are provided
for and included in the valuation of inventory.
9. CENVAT/Value Added Tax
CENVAT/Value Added Tax benefit is accounted for by reducing the
purchase cost of the materials/fixed assets.
10. Revenue Recognition
a) Revenue is recongnised on transfer of significant risk and reward in
respect of ownership.
b) Sales/Turnover for the year includes sales value of goods, excise
duty, duty drawback and other recoveries such as insurance,
transportation and packing charges but excludes sales tax, value added
tax and recovery of finance and discounting charges.
c) Insurance, Duty Drawback and other claims are accounted for as and
when admitted by the appropriate authorities.
d) Dividend on investments is recognised when the right to receive is
established.
11. Foreign Currency Transactions
a) Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Current Assets and Current
Liabilities are translated at the year end rate. The difference between
the rate prevailing on the date of transaction and on the date of
settlement as also on translation of Current Assets and Current
Liabilities at the end of the year is recognised as income or expense,
as the case may be, for the year.
b) Foreign Currency loans in respect of fixed assets outstanding on the
last date of the financial year are translated at the exchange rate
prevailing on that day and any loss or gain arising on such translation
is recognised, as the case may be, as income or expense for the year.
12. Employee Benefits
a) Short Term Employees Benefits
Short Term Employees Benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related services is rendered.
b) Post Employment Benefits i) Provident Fund
The Company contributes monthly at a determined rate. These
contributions are remitted to the Employees Provident Fund
Organisation, India for this purpose and is charged to Profit and Loss
account on accrual basis.
ii) Gratuity
The Company provides for gratuity (a defined benefit retirement plan)
to all the eligible employees. The benefit is in the form of lump sum
payments to vested employees on retirement, on death while in
employment, or termination of employment for an equivalent to 15 days
salary payable for each completed year of service. Vesting occurs on
completion of five years of service. Liability in respect of gratuity
is determined using the projected unit credit method with actuarial
valuations as on the balance sheet date and gains/losses are recognized
immediately in the Profit and Loss Account.
iii) Leave Encashment
Liability in respect of leave encashment is determined using the
projected unit credit method with actuarial valuations as on the
balance sheet date and gains/losses are recognized immediately in the
Profit and Loss Account.
13. Taxation
Income tax comprises of current tax, deferred tax and fringe benefit
tax. Provision for current income tax and fringe benefit tax is made on
the assessable income/benefits at the rate applicable to relevant
assessment year. Deferred tax assets and liabilities are recognised for
the future tax consequences of timing differences, subject to the
consideration of prudence. Deferred tax assets and liabilities are
measured using the tax rates enacted or substantively enacted by the
balance sheet date. The carrying amount of deferred tax asset/liability
are reviewed at each balance sheet date and recognised and carried
forward only to the extent that there is a reasonable certainty that
the asset will be realised in future.
14. Research and Development
Revenue Expenditure pertaining to Research and Development is charged
to revenue under the respective heads of account in the year in which
it is incurred. Capital expenditure, if any, on Research and
Development is shown as an addition to Fixed Assets, under the
respective heads.
15. Provisions, Contingent Liabilities and Contingent Assets
Provisions comprise liabilities of uncertain timing or amount.
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources. Contingent Liabilities are disclosed by way of Notes to
Accounts. Disputed demands in respect of Central Excise, Customs,
Service tax, Income-tax and Sales tax are disclosed as contingent
liabilities. Payment in respect of such demands, if any, is shown as
an advance, till the final outcome of the matter.
Contingent assets are not recognised in the financial statements.
16. Warranty
Provision for the estimated liability in respect of warranty on sale of
consumer electronics and home appliances products is made in the year
in which the revenue are recognised, based on technical evaluation and
past experience.
17. Prior period Items etc.
Prior period items are included in the respective heads of accounts and
material items are disclosed by way of Notes to Accounts.
18. Other Accounting Policies
These are consistent with the generally accepted accounting policies.