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Accounting Policies of Websol Energy Systems Ltd. Company

Mar 31, 2015

(a) The financial statements of the company have been prepared under the historical cost convention. Items of income and expenditure are recognized on accrual basis unless otherwise stated.

(b) Fixed Assets are stated at cost less depreciation (Depreciating asset over its useful life prescribed as per schedule II to the Companies Act 2013 on a pro-rata basis).

(c) i) Raw materials, Stores & Spares and Trading goods are valued at cost determined on the weighted average method or market price whichever is lower.

ii) Work-in-process is valued at cost inclusive of appropriate production overheads. iii) Finished goods are valued at Cost or Market Price whichever is lower.

(d) Transactions in Foreign currencies to the extent not covered by forward contracts are accounted for at exchange rates prevailing on the dates on which the transactions took place. Losses and gains arising from subsequent fl uctuations are recognized as and when they are crystallized. Foreign Currency Loans, Creditors and Debtors are stated at exchange rates prevailing on the date of the Balance Sheet.

(e) The diminution in carrying amount of investment which are considered temporary are not provided for in the books.

(f) Sales are net of returns. The consumption of Raw Materials and Stores & Spares are net of sale thereof, if any.

(g) Purchases are net of rebates and discounts including those in respect of purchases made in earlier years.

(h) The foreign exchange gain / loss on Sales, Purchases, Debtors, Creditors, Foreign Currency Term Loans, External Commercial Borrowings and Foreign Currency Convertible Bonds have been shown as exceptional item in the Statement of Profi t and Loss.

(i) In respect of retirement benefi ts in the form of Provident Fund, the contribution payable by the Company for the year is charged to revenue.

(j) Liability for future payment of Gratuity to employees is covered by Group Gratuity Scheme of Life Insurance Corporation of India. The amount paid/payable to them is charged to revenue as and when demand is raised.

(k) Payment to employees in respect of encashment of leave is accounted for as and when claimed by the employee concerned and paid by the Company.

(l) No provision is made in books of account for future liability, being unascertainable, that may occur on account of warranty on company's products [Please refer Note No. 31(b) also]

(m) Fixed Assets are reviewed at each Balance Sheet date for impairment. In case, events and circumstances indicate any impairment, recoverable amount of fi xed assets is determined. An impairment loss is recognized, wherever the carrying amount of assets either belonging to cash generating unit or otherwise exceeds recoverable amount. The recoverable amount is the greater of net selling price of assets or its value in use. In assessing the value in use, the estimated future cash fl ow from the use of assets is discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss no longer exists or has decreased. Impairment loss/ reversal thereof is adjusted to the carrying value of the respective assets, which in case of cash generating unit, are allocated to assets on a pro-rata basis.

(n) Borrowing cost incurred in relation to the acquisition or construction of assets are capitalized / allocated as part of the cost of such assets till the date of completion of such assets. Other borrowing costs are charged as an expense in the year in which these are incurred.


Mar 31, 2014

(a) The financial statements of the company have been prepared under the historical cost convention. Items of income and expenditure are recognized on accrual basis unless otherwise stated.

(b) Fixed Assets are stated at cost less depreciation (on Straight Line Method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis).

(c) i) Raw materials, Stores & Spares and Trading goods are valued at cost determined on the weighted average method or market price whichever is lower.

ii) Work-in-process is valued at cost inclusive of appropriate production overheads.

iii) Finished goods are valued at Cost or Market Price whichever is lower.

(d) Transactions in Foreign currencies to the extent not covered by forward contracts are accounted for at exchange rates prevailing on the dates on which the transactions took place. Losses and gains arising from subsequent fluctuations are recognized as and when they are crystallized. Foreign Currency Loans, Creditors and Debtors are stated at exchange rates prevailing on the date of the Balance Sheet.

(e) The diminution in carrying amount of investment which are considered temporary are not provided for in the books.

(f) Sales are net of returns. The consumption of Raw Materials and Stores & Spares are net of sale thereof, if any.

(g) Purchases are net of rebates and discounts including those in respect of purchases made in earlier years.

(h) The foreign exchange gain / loss on Sales, Purchases, Debtors, Creditors, Foreign Currency Term Loans, External Commercial Borrowings and Foreign Currency Convertible Bonds have been shown as exceptional item in the Statement of Profit and Loss.

(i) In respect of retirement benefits in the form of Provident Fund, the contribution payable by the Company for the year is charged to revenue.

(j) Liability for future payment of Gratuity to employees is covered by Group Gratuity Scheme of Life Insurance Corporation of India. The amount paid/payable to them is charged to revenue as and when demand is raised.

(k) Payment to employees in respect of encashment of leave is accounted for as and when claimed by the employee concerned and paid by the Company.

(l) No provision is made in books of account for future liability, being unascertainable, that may occur on account of warranty on company''s products [Please refer Note No. 31(b) also]

(m) Fixed Assets are reviewed at each Balance Sheet date for impairment. In case, events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, wherever the carrying amount of assets either belonging to cash generating unit or otherwise exceeds recoverable amount. The recoverable amount is the greater of net selling price of assets or its value in use. In assessing the value in use, the estimated future cash flow from the use of assets is discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss no longer exists or has decreased. Impairment loss/ reversal thereof is adjusted to the carrying value of the respective assets, which in case of cash generating unit, are allocated to assets on a pro-rata basis.

(n) Borrowing cost incurred in relation to the acquisition or construction of assets are capitalized / allocated as part of the cost of such assets till the date of completion of such assets. Other borrowing costs are charged as an expense in the year in which these are incurred.


Mar 31, 2013

(a) The financial statements of the company have been prepared under the historical cost convention. Items of income and expenditure are recognised on accrual basis unless otherwise stated.

(b) Fixed Assets are stated at cost less depreciation (on Straight Line Method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis).

(c) i) Raw materials, Stores & Spares and Trading goods are valued at cost determined on the weighted average method or market price whichever is lower.

ii) Work-in-process is valued at cost inclusive of appropriate production overheads.

iii) Finished goods are valued at Cost or Market Price whichever is lower.

(d) Transactions in Foreign currencies to the extent not covered by forward contracts are accounted for at exchange rates prevailing on the dates on which the transactions took place. Losses and gains arising from subsequent fluctuations are recognised as and when they are crystallised. Foreign Currency Loans & Creditors and corresponding fixed assets and purchases are stated at exchange rates prevailing on the date of the Balance Sheet.

(e) The diminution in carrying amount of investment which are considered temporary are not provided for in the books.

(f) Sales are net of returns. The consumption of Raw Materials and Stores & Spares are net of sale thereof, if any.

(g) Purchases are net of rebates and discounts including those in respect of purchases made in earlier years.

(h) The foreign exchange gain / loss on Sales, Purchases, Debtors, Creditors, Foreign Currency Term Loans, External Commercial Borrowings, Foreign Currency Convertible Bonds, Capex FLC, Buyer''s Credit and Supplier''s Credit have been shown as exceptional item in the Statement of

Profit and Loss. (i) In respect of retirement benefits in the form of Provident Fund, the contribution payable by the Company for the year is charged to revenue.

(j) Liability for future payment of Gratuity to employees is covered by Group gratuity scheme of Life Insurance Corporation of India. The amount paid/payable to them is charged to revenue as and when demand is raised. The provision for the period from 01st July 2012 to 31st March 2013 has been made on an estimated basis pending the actuarial valuation certificate.

(k) Payment to employees in respect of encashment of leave is accounted for as and when claimed by the employee concerned and paid by the Company.

(l) No provision is made in books of account for future liability, being unascertainable, that may occur on account of warranty on company''s products [Please refer Note No. 31(c) also]

(m) Fixed Assets are reviewed at each Balance Sheet date for impairment. In case, events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, wherever the carrying amount of assets either belonging to cash generating unit or otherwise exceeds recoverable amount. The recoverable amount is the greater of net selling price of assets or its value in use. In assessing the value in use, the estimated future cash flow from the use of assets is discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss no longer exists or has decreased. Impairment loss/ reversal thereof is adjusted to the carrying value of the respective assets, which in case of cash generating unit, are allocated to assets on a pro-rata basis.

(n) Borrowing cost incurred in relation to the acquisition or construction of assets are capitalized / allocated as part of the cost of such assets till the date of completion of such assets. Other borrowing costs are charged as an expense in the year in which these are incurred.


Jun 30, 2012

(a) The financial statements of the company have been prepared under the historical cost convention. Items of income and expenditure are recognised on accrual basis unless otherwise stated.

(b) Fixed Assets are stated at cost less depreciation (on Straight Line Method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis).

(c) i) Raw materials, Stores & Spares and Trading goods are valued at cost determined on the weighted average method or market price whichever is lower.

ii) Work-in-process is valued at cost inclusive of appropriate production overheads.

iii) Finished goods are valued at Cost or Market Price whichever is lower.

(d) Transactions in Foreign currencies to the extent not covered by forward contracts are accounted for at exchange rates prevailing on the dates on which the transactions took place. Losses and gains arising from subsequent fluctuations are recognised as and when they are crystallised. Foreign Currency Loans & Creditors and corresponding fixed assets and purchases are stated at exchange rates prevailing on the date of the Balance Sheet.

(e) The diminution in carrying amount of investment which are considered temporary are not provided for in the books.

(f) Sales are net of returns and are inclusive of sale of Raw Materials, stores & spares and impact of foreign exchange gain/loss if any. Accordingly, consumption of Raw Materials and Stores & Spares also includes the sale thereof, if any.

(g) Purchases are net of rebates and discounts including those in respect of purchases made in earlier years and impact of foreign exchange gain / loss, if any.

(h) The foreign exchange gain / loss on Foreign Currency Term Loans, External Commercial Borrowings, Foreign Currency Convertible Bonds, Capex FLC, Buyer's Credit and Supplier's Credit have been shown as exceptional items in the Statement of Profit and Loss.

(i) In respect of retirement benefits in the form of Provident Fund, the contribution payable by the Company for the year is charged to revenue.

(j) Liability for future payment of Gratuity to employees is covered by Group gratuity scheme of Life Insurance Corporation of India. The amount paid/payable to them is charged to revenue as and when demand is raised. The Company has obtained an actuarial valuation certificate for the total amount of gratuity to be provided till 30th June 2011. The provision for the period from 01st July 2011 to 30th June 2012 has been made on an estimated basis pending the actuarial valuation certificate.

(k) Payment to employees in respect of encashment of leave is accounted for as and when claimed by the employee concerned and paid by the Company.

(l) No provision is made in books of account for future liability, being unascertainable, that may occur on account of warranty on company's products [Please refer Note No. 28(d) also]

(m) Fixed Assets are reviewed at each Balance Sheet date for impairment. In case, events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognised, wherever the carrying amount of assets either belonging to cash generating unit or otherwise exceeds recoverable amount. The recoverable amount is the greater of net selling price of assets or its value in use. In assessing the value in use, the estimated future cash flow from the use of assets is discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss no longer exists or has decreased. Impairment loss/ reversal thereof is adjusted to the carrying value of the respective assets, which in case of cash generating unit, are allocated to assets on a pro- rata basis.

(n) Borrowing cost incurred in relation to the acquisition or construction of assets are capitalised / allocated as part of the cost of such assets till the date of completion of such assets. Other borrowing costs are charged as an expense in the year in which these are incurred.


Mar 31, 2011

A) The financial statements of the company have been prepared under the historical cost convention. Items of income and expenditure are recognised on accrual basis unless otherwise stated.

b) Fixed Assets are stated at cost less depreciation (on Straight Line Value Method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis).

c) i) Raw materials, Stores & Spares and Trading goods are valued at cost determined on the weighted average method.

ii) Work-in-process is valued at cost inclusive of appropriate production overheads.

iii) Finished goods are valued at Cost or Market Price whichever is lower.

d) Transactions in Foreign currencies to the extent not covered by forward contracts are accounted for at exchange rates prevailing on the dates on which the transactions took place. Losses and gains arising from subseguent fluctuations are recognised as and when they are crystallised. Foreign Currency Loans & Creditors and corresponding fixed assets and purchases are stated at exchange rates prevailing on the date of the Balance Sheet.

e) Sales are net of returns and are inclusive of sale of Raw Materials and stores & spares, if any. Accordingly, consumption of Raw Materials and Stores & Spares also includes the sale thereof, if any.

f) Purchases are net of rebates and discounts including those in respect of purchases made in earlier years.

g) In respect of retirement benefits in the form of Provident Fund, the contribution payable by the Company for the year is charged to revenue.

h) Liability for future payment of Gratuity to employees is covered by Group gratuity scheme of Life Insurance Corporation of India. The amount paid/payable to them is charged to revenue as and when demand is raised.

i) Payment to employees in respect of encashment of leave is accounted for as and when claimed by the employee concerned and paid by the Company.

j) No provision is made in books of account for future liability, being unascertainable, that may occur on account of warranty on company's products [Please refer Note No. 3(d) also]

k) Fixed Assets are reviewed at each Balance Sheet date for impairment. In case, events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, wherever the carrying amount of assets either belonging to cash generating unit or otherwise exceeds recoverable amount. The recoverable amount is the greater of net selling price of assets or its value in use. In assessing the value in use, the estimated future cash flow from the use of assets is discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss no longer exists or has decreased. Impairment loss/ reversal thereof is adjusted to the carrying value of the respective assets, which in case of cash generating unit, are allocated to assets on a pro- rata basis.

l) Borrowing cost incurred in relation to the acguisition or construction of assets are capitalized / allocated as part of the cost of such assets till the date of completion of such assets. Other borrowing costs are charged as an expense in the year in which these are incurred.


Jun 30, 2010

A) The financial statements of the have been prepared under the historical cost convention. Items of income and expenditure are recognised on accrual basis unless otherwise stated.

b) Fixed Assets are stated at cost less depreciation (on Straight Line Value Method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis).

c) i) Raw materials, Stores & Spares and Trading goods are valued at cost determined on the weighted average method. ii) Work-in-process is valued at cost inclusive of appropriate production overheads.

iii) Finished goods are valued at Cost or Market Price whichever is lower.

d) Transactions in Foreign currencies to the extent not covered by forward contracts are accounted for at exchange rates prevailing on the dates on which the transactions took place. Losses and gains arising from subsequent fluctuations are recognised as and when they are crystallised. Foreign Currency Loans & Creditors and corresponding fixed assets and purchases are stated at exchange rates prevailing on the date of the Balance Sheet.

e) Sales are net of returns and are inclusive of sale of Raw Materials and stores & spares. Accordingly, consumption of Raw Materials and Stores & Spares also includes the sale thereof.

f) Purchases are net of rebates and discounts including those in respect of purchases made in earlier years.

g) In respect of retirement benefits in the form of Provident Fund, the contribution payable by the Company for the year is charged to revenue.

h) Liability for future payment of Gratuity to employees is covered by Group gratuity scheme of Life Insurance Corporation of India. The amount paid/payable to them is charged to revenue as and when demand is raised.

i) Payment to employees in respect of encashment of leave is accounted for as and when claimed by the employee concerned and paid by the Company.

j) No provision is made in books of account for future liability, being unascertainable, that may occur on account of warranty on companys products [Please refer Note No. 3(d) also]

k) Fixed Assets are reviewed at each Balance Sheet date for impairment. In case, events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, wherever the carrying amount of assets either belonging to cash generating unit or otherwise exceeds recoverable amount. The recoverable amount is the greater of net selling price of assets or its value in use. In assessing the value in use, the estimated future cash flow from the use of assets is discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss no longer exists or has decreased. Impairment loss/ reversal thereof is adjusted to the carrying value of the respective assets, which in case of CGU, are allocated to assets on a pro-rata basis.

l) Borrowing cost incurred in relation to the acquisition or construction of assets are capitalized / allocated as part of the cost of such assets till the date of completion of such assets. Other borrowing cost are charged as an expense in the year in which these are incurred.

 
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