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Accounting Policies of Virat Crane Industries Ltd. Company

Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES:

1.1 Revenue Recognition:

a) Product sales:

Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration receivable, net of trade discounts and volume rebates. Revenue is recognised when significant risks and rewards of their ownership are transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing effective control over, or managerial involvement with, the goods, and the amount of revenue can be measured reliably.

b) Other Income:

Other items of income are accounted as and when the right to receive payment is established.

1.2 Property, Plant & Equipment:

Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Depredation:

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management. The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are adopted as per Schedule II to Companies Act, 2013.

Assets individually costing less than Rs. 20,000 are fully written off in the year of purchase at the discretion of management.

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

1.3 Inventories:

Inventories which comprise raw materials, finished goods and stock-in-trade are carried at the lower of cost and net realisable value. Cost of inventories comprises cost of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. In determining cost “First in First out” method is used.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and other costs necessary to make the sale.

Raw material and other supplies held for use in production of inventories are not written down below cost, except in cases where material price have declined and it is estimated that the cost of the finished products will exceed their net realizable value.

1.4 Income Tax:

Income tax comprises current and deferred tax. It is recognised in the Statement of Profit and Loss except to the extent that it relates to an item recognised in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority.

1.5 Financial Instruments Recognition and initial measurement

Trade receivables and loans given are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

Classification and subsequent measurement Financial assets

On initial recognition, a financial asset is classified as measured at

- amortised cost;

- Fair value through other comprehensive income (FVOCI); or

- Fair value through profit or loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose obj ective is to hold assets to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI (designated as FVOCI - equity investment). This election is made on an investment- by- investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and Interest.

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

- contingent events that would change the amount or timing of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company’s claim to cash flows from specified assets (e.g. non - recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

Financial assets: Subsequent measurement gains and losses

Financial assets at FVTPL - These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.

Financial assets at amortised cost - These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Equity investments at FVOCI - These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to profit or loss.

Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held- for- trading, or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

Derecognition Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

1.6 Provisions and Contingencies

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

Contingencies

Provision in respect of loss contingencies relating to claims, litigations assessment, fines, penalties etc are recognised when it is probable that a liability has been incurred and the amount can be estimated reliably.

1.7 Segment Reporting

The Company is primarily engaged in the business of processing of milk and manufacturing of dairy products. Therefore, the Company is of the view that revenue from processing of milk and manufacturing of dairy products is a single component of the Company for assessing its performance. Hence, processing of milk and manufacturing of dairy products is the only reportable segment. The Company’s operations are primarily in India, accordingly there is no reportable secondary geographical segment.

1.8 Earnings per share

The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the year.

The diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity and equivalent potential dilutive equity shares outstanding during the year, except where the result would be anti-dilutive.


Mar 31, 2016

Statement on significant accounting policies:

The following are the significant accounting policies adopted in the preparation and presentation of financial statements.

1. Basis of Presentation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

2. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of Assets or Liabilities in the future periods.

3. Fixed Assets:

Fixed assets are stated at cost and net of subsidies less accumulated depreciation/impairment losses, if any. The cost comprises purchase consideration, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition to the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from sale/discard of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is sold/discarded.

4. Depreciation:

a. Depreciation is provided on Straight Line Method over the useful lives of the assets in the manner prescribed in Schedule 11 to the Companies act, 2013.

b. Individual assets costing less than Rs. 10,000 are fully depreciated in the year of acquisition at the discretion of the management.

c. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

5. Investments: Long term investments made by the Company are stated at Cost.

6. Inventories: All inventories except Work In Progress are valued at Lower of Cost or Net Realizable Value.

a. First In First out method has been followed for issues for determining the inventory value.

b. Work in Progress is valued on the basis of technical evaluation adopted by the Management.

7. Deferred Tax: Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Contingent Liabilities: Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Deferred Revenue Expenditure: Deferred revenue Expenditure is written off over a period of five years against profits.

10. Retirement Benefits: As per the information provided and explanations given to us and as per the verification of books of accounts, the company need not make any provisions for retirement benefits during the year.

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

Sale of Goods:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are net of sales returns, rebates and sales tax, wherever applicable.

12. General: Accounting policies not specifically referred to are in consistent with the generally accepted accounting principles followed in India.

The following claims made by tax authorities are contested by the Ghee Division and the management is confident of favourable decision and hence no provision was considered necessary.


Mar 31, 2015

1. Basis of Presentation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

2. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of Assets or Liabilities in the future periods.

3. Fixed Assets :

Fixed assets are stated at cost and net of subsidies less accumulated depreciation/impairment losses, if any. The cost comprises purchase consideration, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition to the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from sale/discard of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is sold/discarded.

4. Depreciation:

a. Depreciation is provided on Straight Line Method over the useful lives of the assets in the manner prescribed in Schedule II to the Companies act, 2013.

b. Individual assets costing less than Rs.10,000 are fully depreciated in the year of acquisition at the discretion of the management..

c. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

5. Investments: Long term investments made by Company are stated at Cost.

6. Inventories: All inventories except Work In Progress are valued at Lower of Cost or Net Realizable Value.

a. First In First out method has been followed for issues for determining the inventory value.

b. Work in Progress is valued on the basis of technical evaluation adopted by the Management.

7. Deferred Tax: Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Contingent Liabilities: Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Deferred Revenue Expenditure: Deferred revenue Expenditure is written off over a period of five years against profits.

10. Retirement Benefits: As per the information provided and explanations given to us and as per the verification of books of accounts, the company need not make any provisions for retirement benefits during the year.

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

Sale of Goods:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are net of sales returns, rebates and sales tax, wherever applicable.

12. General: Accounting policies not specifically referred to are in consistent with the generally accepted accounting principles followed in India.


Mar 31, 2014

1. Basis of Presentation of Financial Statements:

The financial statements have been prepared and presented under the historic cost convention on accrual basis to comply in all material respects with the notified Accounting Standards by the Companies ( Accounting Standard) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The Accounting Policies have been consistently applied by the Company and are consistent with those used in the previous year. All assets and liabilities have been classified as current or non- current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI of the Companies Act, 1956.

2. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of Assets or Liabilities in the Future periods.

3. Fixed Assets :

Fixed assets are stated at cost and net of subsidies less accumulated depreciation/impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition to the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Gains or losses arising from sale/discard of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is sold/discarded.

4. Depreciation:

a. Depreciation is provided on Straight Line Method as per rates prescribed under Schedule XIV to the Companies Act, 1956.

b. Individual assets costing less than Rs.5000 are fully depreciated in the year of acquisition.

c. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

5. Investments: Investments are valued at cost or market price whichever is lower and in the absence of market quotation, cost price is adopted for Current Investments and Long term Investments are valued at cost.

6. Inventories: All inventories except Work In Progress are valued at Lower of Cost or Net Realizable Value.

a. First In First out method has been followed for issues for determining the inventory value.

b. Work in Progress is valued on the basis of technical evaluation adopted by the Management.

7. Deferred Tax: Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Contingent Liabilities: Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Deferred Revenue Expenditure: Deferred revenue Expenditure is written off over a period of five years against profits.

10. Retirement Benefits: As per the information provided and explanations given to us and as per the verification of books of accounts, the company need not make any provisions for retirement benefits during the year.

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

Sale of Goods:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are net of sales returns, rebates and sales tax, wherever applicable.

12. General: Accounting policies not specifically referred to are in consistent with the generally accepted accounting principles followed in India.


Mar 31, 2012

1) ACCOUNTING CONVENTION:

Financial Statements are prepared under historical cost convention modified by revaluation of certain fixed assets in ac- cordance with the Accounting Standards issued by The Institute of Chartered Ac- countants of India and referred to in sec- tion 211 (3C)ofthe Companies Act, 1956. The significant accounting policies are as follows.

2) REVENUE RECOGNITION:

a. Income and expenditure is accounted on accrual basis on receipt of invoices.

b. Sales comprises of sale of goods net of returns, trade discount and taxes.

3) DEPRECIATION:

a. Depreciation is provided on Straight line method applying the rates as per schedule IV of the Companies Act 1956.

b. The additional depreciation provided on the revalued amounts of the assets is written off against the revaluation re- serve.

4) INVESTMETNS:

Investments are valued at cost or market price which ever is lower and in the ab- sence of market quotation cost price is adopted for current investments and long term investments are valued at cost.

5) INVENTORY:

All inventories except work-in-progress are valued at lower of cost or net realisable value which ever is lower.

a. First in First out method has been fol- lowed for issues for determining the inventory value.

b. Work-in-progress is valued on the ba- sis of technical evaluation adopted by the Management.

6) DEFERRED TAX:

Deferred tax is recognized, subject to con- sideration of prudence, on timing differ- ences being the differences between tax- able income and accounting income that originate in one period and are capable of reversal in one or more subsequent peri- ods

7) CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor dis- closed in the financial statements.

8) IMPAIREMENT OF ASSETS:

At each balance sheet date, the company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount if the carrying amount of the asset exceeds its recover- able amount an impairment loss is recog- nized in profit and loss account to the ex- tent the carrying amount exceeds recov- erable amounts.

9) ESTIMATES:

Estimates are used for provision for doubt- ful debts, useful life of fixed assets and obligations under employee retirement plan.

10) DEFFERED REVENUE EXPENDITURE:

Deferred revenue expenditure is written off over a period of five years against prof- its.

12) INTEREST TO SUPPLIERS:

Interest claimed by suppliers if any on delayed payments is accounted on settle- ment basis.


Mar 31, 2010

1) ACCOUNTING CONVENTION:

Financial Statements are prepared under historical cost convention in accordance with the Accounting Standards issued by institute of Chartered Accountants of India and referred to in section 211 (3C) of the Companies Act, 1956. The significant accounting policies are as follows.

2) REVENUE RECOGNITION:

a. Income and expenditure is accounted on accrual basis on receipt of invoices.

b. Sales comprises of sale of goods net of returns, trade discount and taxes.

3) RETIREMENT BENEFITS:

Leave Wages-and Gratuity is accounted on actuarial valuation.

4) ASSETS:

Fixed assets have been valued at cost less depreciation.

5) DEPRECIATION:

a. Depreciation is provided on Straight line method applying the rates as per schedule IV of the Companies Act 1956.

b. The additional depreciation provided on the revalued amounts, of the assets is written off against the revaluation reserve.

6) INVESTMETNS:

Investments are at cost or market price which ever is lower and in the absence of market quotation cost price is adopted for current investments and long term investments are valued at cost.

7) INVENTORY:

All inventories except work-in -progress are valued at lower of cost or net realisable value which ever is lower.

a. First in First out method has been followed for issues for determining the inventory value,

b. Work-in-progress is valued on the basis of technical evaluation, adopted by the Management.

8. DEFERRED TAX:

Deferred tax is recognized, subject to consideration of prudence, on timingdiWerenceS being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods

9) CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements .,-...,.

10) IMPARIRMENT OF ASSETS:

At each balance sheet date, the company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount if the carrying amount of the asset exceeds its recoverable amount an impairment loss is recognized in profit and loss account to the extent the carrying amount exceeds recoverable amounts.

11) ESTIMATES:

Estimates are used for provision for doubtful debts, useful life of fixed assets and obligations under employee retirement plan. -

12) DEFFERED REVENUE EXPENDITURE:

Deferred revenue expenditure is written off over a period of five years against profits.

13) INTEREST TO SUPPLIERS:

Interest claimed by suppliers if any on delayed payments is accounted oh settlement basis.

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