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Accounting Policies of Welcast Steels Ltd. Company

Mar 31, 2018

Note 27 Significant Accounting Policy and Notes to the Financial Statements for the financial year ended 31st March, 2018.

A Reporting Entity

Welcast Steels Limited(the âCompanyâ) is a Company domiciled in India, with its registered office situated at 115-116, G.V.M.M Estate, Odhav Road, Odhav, Ahmedabad-382410, Gujarat, India. The Company has been incorporated under the provisions of Companies Act applicable in India and its equity shares are listed on the BSE Ltd. in India. The Company is primarily involved in manufacturing of High Chrome Grinding Media Balls which mill Internals of cement and Mining industry.

B Basis of preparation

(a) Statement of compliance with IndAS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 notified under Section 133 of Companies Act, 2013 (the âActâ) and other relevant provisions of the Act. The financial statements were authorized for issue by the Companyâs Board of Directors on 07/05/2018

(b) Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the functional currency. All the amounts have been rounded off to the nearest lakhs, unless otherwise indicated.

(d) Use of Estimates and Judgments

In preparing these financial statements, management has made judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, incomes and expenses. Actual results may differ from these estimates.

Estimates

Estimates and underlying assumptions are reviewed on an ongoing basis. They are based on historical experience and other factors including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Revisions to the accounting estimates are recognized prospectively.

Judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the respective note.

Assumptions and Estimation Uncertainties:

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the respective note.

Further information about the assumptions made in measuring fair values is included in the respective note.

C. Significant Accounting Policies

PROPERTY, PLANT & EQUIPMENT (PPE)

a) Property, Plant & Equipment are stated at the cost of acquisition or construction less accumulated depreciation and accumulated impairment loss, if any. All direct costs and cost of financing relating to the specific borrowing attributable to the eligible PPE till they are commissioned are capitalized and CENVAT credit I VAT credit availed/GST available on the capital goods are deducted from the cost of the corresponding assets. Capital work-in-progress includes cost of assets at sites and construction expenditure.

c) Profit / Loss on disposal of fixed assets are credited / charged, as the case may be, to Statement Profit and Loss.

d) Intangible Assets are recognized at cost less any accumulated amortization and impairment losses if any. Acquired intangible assets are capitalized at acquisition price.

e) Computer Software being Intangible asset amortized over a period of 3 years on WDV basis.

III. INVENTORIES

a) Finished Goods and Work in process are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads.

b) Raw Materials, Stores & Spares and other inputs are valued at cost after considering credit of refundable taxes or net realizable value whichever is lower, cost being determined on moving weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess I shortage, if any, within acceptable norms arising on physical verification are absorbed in the respective consumption accounts.

IV. REVENUE RECOGNITION

Revenue from sale of goods is recognized when the significant risks and rewards of ownership are transferred to the buyer which generally coincide when the goods are dispatched from the factory as per the terms of contract of sale. Sales value are inclusive of Excise Duty and exclusive of Value Added Tax, Central Sales Tax and Goods and service Tax

V. EMPLOYEE BENEFITS

a) Defined Contribution plans:

These are plans in which the Company pays pre-defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees provident fund and pension plans. The contribution paid I payable to these plans during the year is charged to statement of profit and loss for the year on accrual basis.

b) Defined benefit plans:

i. Gratuity: The Company makes contributions to the employees'' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits is determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost, if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Remeasurements, comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

ii. Compensated absence: The Company has a scheme to compensate absence for employees. The liability of which is determined on the basis of an actuarial valuation carried out by an independent actuary at the end of the year. The actuarial gains or losses are recognized in full in the statement of profit and loss for the period in which they occur.

iii. Short term employee benefit: All employee benefits which are wholly due within twelve months of rendering the services are recognized in the period in which the employee renders the related services.

VI. FOREIGN CURRENCYTRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains I losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the yearend are recognized in the statement of profit and loss.

VII. TAXATION

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961.Deferred tax asset is recognized for the future tax consequences of the temporary difference between the tax base and the carrying values of assets and liabilities. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized in future and are reviewed every year .The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

VIII. IMPAIRMENT OF ASSETS

At each Balance Sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre - tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

Impairment losses recognized in prior years, if any, are reversed when there is an indication that recognized impairment losses for the asset, no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.

IX. PROVISIONS AND CONTINGENT LIABILITIES

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can be made of the amount of the obligations. Contingent liabilities, if material, are disclosed by way of Notes to Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

X. CASHFLOW STATEMENT

The Cash Flow Statement is prepared in accordance with Ind AS 7 â Statement of Cash Flowsâ and presents the cash flows by operating, investing and financing activities of the Company.

Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand, Balances with Schedule Bank and fixed deposits which are readily convertible into cash.

XI. EARNINGS PER SHARE

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

Mar 31, 2017

A Company Overview:

Welcast Steels Limited (âWelcastâ) is a subsidiary company of AIA Engineering Limited. The company is a public limited company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The registered office of the company is located at 115-116, G. V. M. M Estate, Odhav Road, Odhav, Ahmedabad - 382415. The Company is engaged in the manufacture of High Chromium Grinding Media balls for the Cement and Mining Industry.

The financial statements were approved for issue by the company''s Board of Directors at their meeting held on 22nd May, 2017.

B Significant Accounting Policies

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015.

For all periods up to and including the year ended 31st March, 2016, the Company prepared its financial statements in accordance with Accounting Standards notified under the Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the year ended 31st March, 2017 are the first financial statements the company has prepared in accordance with Ind AS. Also refer to Note C(12).

The financial statements have been prepared under the historical cost convention on the accrual basis of accounting except for the following material items that have been measured at fair value as required by the relevant Ind AS:

a) Financial assets and liabilities are measured at Fair value/amortized costs

b) Defined employee post retirements Benefit and other Long term Employee Benefits.

USE OF ESTIMATES

The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

II. PROPERTY, PLANT & EQUIPMENT (PPE)

a) Property, Plant & Equipment are stated at the cost of acquisition or construction less accumulated depreciation and accumulated impairment loss, if any. All direct costs and cost of financing relating to the specific borrowing attributable to the eligible PPE till they are commissioned are capitalized and CEN VAT credit / VAT credit availed/ available on the capital goods are deducted from the cost of the corresponding assets. Capital work-in-progress includes cost of assets at sites and construction expenditure.

b) Depreciation on fixed assets is charged on written down value method over the useful life of assets as prescribed by Schedule II (except for Plant & Machinery for which useful life determined as per technical estimate) of Companies Act, 2013 as follows:__

c) Profit/ Loss on disposal of fixed assets are credited / charged, as the case may be, to Statement Profit and Loss.

d) Intangible Assets are recognized at cost less any accumulated amortization and impairment losses if any. Acquired intangible assets are capitalized at acquisition price.

e) Computer Software being Intangible asset amortized over a period of 3 years on WDV basis.

III. INVENTORIES

a) Finished Goods and Work in process are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads. Finished Goods are valued inclusive of excise duty.

c) Excess / shortage, if any, within acceptable norms arising on physical verification are absorbed in the respective consumption accounts.

IV. REVENUE RECOGNITION

V. EMPLOYEE BENEFITS

a) Defined Contribution plans:

These are plans in which the Company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees provident fund and pension plans. The contribution paid / payable to these plans du ring the year is charged to statement of profit and loss for the year on accrual basis.

b) Defined benefit plans:

i. Gratuity: The Company makes contributions to the employees'' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits is determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost, if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Re-measurements, comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

VI. FOREIGN CURRENCYTRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the yearend are recognized in the statement of profit and loss.

VII. TAXATION

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961 .Deferred tax asset is recognized for the future tax consequences of the temporary difference between the tax base and the carrying values of assets and liabilities. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized in future and are reviewed every year .The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

VIII. IMPAIRMENT OF ASSETS

IX. PROVISIONS AND CONTINGENT LIABILITIES

X CASHFLOWSTATEMENT

The Cash Flow Statement is prepared in accordance with Ind AS 7 â Statement of Cash Flowsâ and presents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the

Cash Flow Statement consist of cash on hand, Balances with Schedule Bank and fixed deposits which are readily convertible into cash.

XI. EARNINGS PER SHARE

Basic earnings per share Is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

Mar 31, 2016

26. Significant Accounting Policies and Notes on Accounts for the year ended 31st March 2016.

A. Significant Accounting Policies

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements, except certain Fixed Assets which are revalued, have been prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act, 2013 as adopted consistently by the Company.

II. FIXED ASSETS

a) Land, Building and Plant and Machinery acquired up to 31st March 1989 are stated on the basis of revaluation and other fixed assets are stated at cost.

b) All direct costs and cost of financing relating to the specific borrowing attributable to the eligible fixed assets till they are commissioned are capitalized and CENVAT credit / VAT credit availed/ available on the capital goods are deducted from the cost of the corresponding assets.

c) Profit/ Loss on disposal of fixed assets are credited / charged, as the case may be, to Statement Profit and Loss.

III. DEPRECIATION AND AMORTISATION

The depreciable amount for assets is the cost of an asset or revalued amount substituted for cost less its estimated residual value

a) In respect of tangible fixed assets:

Acquired up to 31/03/1996, depreciation has been provided on straight-line method as per useful life and in the manner stipulated under schedule II to the Companies Act, 2013.

b) Acquired after 31/03/1996, depreciation has been provided on written down value method as per useful life and in the manner stipulated under schedule II to the Companies Act, 2013.

Computer Software being Intangile asset amortized over a period of 3 years in SLM basis.

IV. INVESTMENTS

Investments held are classified as long term and carried at cost. Provision for diminution in value of investments is made to recognize a decline other than temporary.

V. INVENTORIES

b) Raw Materials, Stores & Spares and other inputs are valued at cost or net realizable value whichever is lower, cost being determined on moving weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess / shortage, if any, within acceptable norms arising on physical verification are absorbed in the respective consumption accounts.

VI. REVENUE RECOGNITION

Revenue from sale of goods is recognized when the significant risks and rewards of ownership are transferred to the buyer which generally coincide when the goods are dispatched from the factory as per the terms of contract Sales are inclusive of Excise Duty and exclusive of VAT/ CST.

VII. EMPLOYEE BENEFITS

a) Defined Contribution plans:

These are plans in which the Company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees provident fund and pension plans. The contribution paid / payable to these plans during the year is charged to statement of profit and loss for the year on accrual basis.

b) Defined benefit plans:

i. Gratuity: The Company makes contributions to the employees'' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits is determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost, if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Actuarial gains and losses for the current year are recognized in full in the statement of profit and loss for the period in which they occur.

VIII. FOREIGN CURRENCYTRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the year end are recognized in the statement of profit and loss.

IX. TAXATION

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961.Deferred tax asset is recognized for the future tax consequences of the timing difference between the tax basis and the carrying values of assets and liabilities. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized in future and are reviewed every year .The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

X. IMPAIRMENT OF ASSETS

"At each Balance Sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre - tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. Impairment losses recognized in prior years, if any, are reversed when there is an indication that recognized impairment losses for the asset, no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.¹¹

XI. PROVISIONS AND CONTINGENT LIABILITIES

XII. EARNINGS PER SHARE

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year.

Mar 31, 2015

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements, except certain Fixed Assets which are revalued, have been prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act, 2013asadopted consistently by the Company.

II. FIXED ASSETS

a) Land, Building and Plant and Machinery acquired up to 31st March 1989 are stated on the basis of revaluation and other fixed assets are Stated at cost.

b) All direct costs and cost of financing relating to the specific borrowing attributable to the eligible fixed assets till they are commissioned are capitalized and CENVAT credit / VAT credit availed/ available on the capital goods are deducted from the costof the corresponding assets.

c) Profit /Loss on disposal of fixed assets are credited/charged, asthe case may be, to Statement Profit and Loss.

III. DEPRECIATION AND AMORTISATION

a) In respect of the assets acquired up to 31/03/1996, depreciation has been provided on straight-line method at the rates and in the manner stipulated under schedule II to the Companies Act 2013.

b) In respect of tangible fixed assets acquired after 31/03/1996, depreciation has been provided on written down value method at the rates and in the manner stipulated under schedule II to the Companies Act 2013. Computer Software being Intangile asset amortised overaperiodof3yearsinSLM basis.

IV. INVESTMENTS

Investments held are classified as long term and carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary.

V. INVENTORIES

a) Finished Goods and Work in process are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads. Finished Goods are valued inclusive of excise duty.

b) Raw Materials, Stores & Spares and other inputs are valued at cost or net realizable value whichever is lower, cost being determined on weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess / shortage, if any, with in acceptable norms arising on physical verification are absorbed in the respective consumption accounts.

VI. REVENUE RECOGNITION

Revenue from sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer which generally coincide when the goods are dispatched from the factory or delivered to customers as per the terms of contract

VII. EMPLOYE EBENEFITS

a) Defined Contribution plans:

These are plans in which the Company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees provident fund and pension plans. The contribution paid / payable to these plans during the year is charged to statement of profit and loss for the year on accrual basis.

b) Defined benefit plans:

i. Gratuity: The Company makes contributions to the employees' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits has been determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost , if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Actuarial gains and losses for the current year are recognized in full in the statement of profit and loss for the period in which they occur.

ii. Compensated absence: The Company has a scheme to compensate absence for employees. The liability of which is determined on the basis of an actuarial valuation carried out by an independent actuary at the end of the year. The actuarial gains or losses are recognized in full in the statement of profit and loss for the period in which they occur.

iii. Short term employee benefit: All employee benefits which are wholly due within twelve months of rendering the services are recognized in the period in which the employee renders the related services.

VIII. RESEARCH AND DEVELOPMENT

Revenue expenses incurred on Research and Development are charged off to revenue in the year of incurrence. Fixed assets purchased for Research and Development purposes are capitalized and depreciated as per the Company's Accounting policy.

IX. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the year end are recognized in the statement of profit and loss.

X. TAXATION

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961.Deferred tax asset is recognized for the future tax consequences of the timing difference between the tax basis and the carrying values of assets and liabilities. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized in future and are reviewed every year .The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

XI. IMPAIRMENT OF ASSETS

At each Balance Sheet date, the management reviews the carrying amounts of its assets include in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

Impairment losses recognized in prior years, if any, are reversed when there is an indication that recognized impairment losses for the asset, no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.

XII. PROVISIONS AND CONTINGENT LIABILITIES

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can be made of the amount of the obligations. Contingent liabilities, if material, are disclosed by way of Notes to Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

XIII. EARNINGS PER SHARE

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

Mar 31, 2014

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements, except certain Fixed Assets which are revalued, have been prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act 1956 as adopted consistently by the Company.

II. FIXED ASSETS

a) Land, Building and Plant and Machinery acquired up to 31st March 1989 are stated on the basis of revaluation and other fixed assets are stated at cost.

b) All direct costs and cost of financing relating to the specific borrowing attributable to the eligible fixed assets till they are commissioned are capitalized and CENVAT credit / VAT credit availed/ available on the capital goods are deducted from the cost of the corresponding assets.

c) Profit / Loss on disposal of fixed assets are credited / charged, as the case may be, to Statement Profit and Loss.

III. DEPRECIATION AND AMORTISATION

a) In respect of the assets acquired up to 31/03/1996, depreciation has been provided on straight-line method at the rates and in the manner stipulated under schedule XIV to the CompaniesAct 1956.

b) In respect of tangible fixed assets acquired after 31/03/1996, depreciation has been provided on written down value method at the rates and in the manner stipulated under schedule XIV to the CompaniesAct 1956.

c) Depreciation on incremental value on account of revaluation of assets is charged to revaluation reserve.

d) Intangible assets are amortised using the straight line method over their estimated useful life as follows: Computer software: Overa period of 3 years commencing from the date of putting to use.

IV. INVESTMENTS

Investments held are classified as long term and carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary.

V. INVENTORIES

a) Finished Goods and Work in process are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads. Finished Goods are valued inclusive of excise duty.

b) Raw Materials, Stores & Spares and other inputs are valued at cost or net realizable value whichever is lower, cost being determined on weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess / shortage, if any,with in acceptable norms arising on physical verification are absorbed in the respective consumption accounts.

VI. REVENUE RECOGNITION

Revenue from sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer which generally coincide when the goods are dispatched from the factory or delivered to customers as per the terms ofcontract.

VII. EMPLOYEE BENEFITS

a) Defined Contribution plans:

These are plans in which the Company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees state insurance, provident fund and pension plans. The contribution paid / payable to these plans during the year is charged to statement of profit and loss for the year on accrual basis.

b) Defined benefit plans:

i. Gratuity: The Company makes contributions to the employees'' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits has been determined on actuarial valuation conducted annually by an independentActuary using the projected unit credit method, as adjusted for un recognized past service cost, if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Actuarial gains and losses for the current year are recognized in full in the statement of profit and loss for the period in which they occur.

ii. Compensated absence: The Company has a scheme to compensate absence for employees. The liability of which is determined on the basis of an actuarial valuation carried out by an independent actuary at the end of the year. The actuarial gains or losses are recognized in full in the statement of profit and loss for the period in which they occur.

iii. Short term employee benefit: All employee benefits which are wholly due within twelve months of rendering the services are recognized in the period in which the employee renders the related services.

VIII. RESEARCH AND DEVELOPMENT

Revenue expenses incurred on Research and Development are charged off to revenue in the year of incurrence. Fixed assets purchased for Research and Development purposes are capitalized and depreciated as per the Company''sAccounting policy.

IX. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the year end are recognized in the statement of profit and loss.

X. TAXATION

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961.Deferred tax asset is recognized for the future tax consequences of the timing difference between the tax basis and the carrying values of assets and liabilities. Deferred tax assets are recognized only if there is virtual certainity that they will be realized in future and are reviewed every year .The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

XI. IMPAIRMENT OFASSETS

At each Balance Sheet date, the management reviews the carrying amounts of its assets include in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre - tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

Impairment losses recognized in prior years, if any, are reversed when there is an indication that recognized impairment losses for the asset, no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.

XII. PROVISIONSAND CONTINGENT LIABILITIES

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can be made of the amount of the obligations. Contingent liabilities, if material, are disclosed by way of Notes toAccounts. ContingentAssets are neither recognized nor disclosed in the financial statements.

XIII. EARNINGS PER SHARE

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

Mar 31, 2013

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements, except certain fixed assets, which are revalued have been prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act 1956 as adopted consistently by the Company.

II. FIXED ASSETS

a) Land, Building and Plant and Machinery acquired up to 31st March 1989 are stated on the basis of revaluation and other fixed assets are stated at cost.

b) All direct costs and cost of financing relating to the specific borrowing attributable to the eligible fixed assets till they are commissioned are capitalized and CENVAT credit / VAT credit availed/ available on the capital goods are deducted from the cost of the corresponding assets.

c) Profit / Loss on disposal of fixed assets are credited / charged, as the case may be, to the statement of Profit and Loss Account.

III. DEPRECIATION AND AMORTISATION

a) In respect of the assets acquired up to 31/03/1996, depreciation has been provided on straight-line method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

b) In respect of tangible fixed assets acquired after 31.03.1996, depreciation has been provided on written down value method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

c) Depreciation on incremental value on account of revaluation of assets is charged to revaluation reserve.

d) Intangible assets are amortised using the straight line method over their estimated useful life as follows:Computer software : Over a period of 3 years commencing from the date of putting to use.

IV. INVESTMENTS

Investments held are classified as long term and carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary.

V. INVENTORIES

a) Finished Goods and Work in process are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads. Finished Goods are valued inclusive of excise duty.

b) Raw Materials, Stores & Spares and other inputs are valued at cost or net realizable value whichever is lower, cost being determined on weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess / shortage, if any, arising on physical verification are absorbed in the respective consumption accounts.

VI. REVENUE RECOGNITION

Revenue from sales of goods is recognised when the substantial risks and rewards of ownership are transferred to the buyer which generally co incide when the goods are despatched from the factory or delivered to customers as per the terms of contract.

VII. EMPLOYEE BENEFITS

a) Defined Contribution plans:

These are plans in which the Company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees state insurance, provident fund and pension plans. The contribution paid / payable to these plans during the year is charged to statement of profit and loss for the year on accrual basis.

b) Defined benefit plans:

i. Gratuity: The Company makes contributions to the employees'' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits has been determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost , if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Actuarial gains and losses for the current year are recognized in full in the statement of profit and loss for the period in which they occur. ii. Compensated absence: The Company has a scheme to compensate absence for employees. The liability of which is determined on the basis of an actuarial valuation carried out by an independent actuary at the end of the year. The actuarial gains or losses are recognized in full in the statement of profit and loss for the period in which they occur. iii. Short term employee benefit: All employee benefits which are wholly due within twelve months of rendering the services are recognized in the period in which the employee renders the related services.

VIII. RESEARCH AND DEVELOPMENT

Revenue expenses incurred on Research and Development are charged off to revenue in the year of incurrence. Fixed assets purchased for Research and Development purposes are capitalized and depreciated as per the Company''s Accounting policy.

IX. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the year end are recognized in the statement of profit and loss.

X. TAXATION

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961.Deferred tax asset is recognized for the future tax consequences of the timing difference between the tax basis and the carrying values of assets and liabilities. Deferred tax assets are recognized only if there is virtual certainty that they will be realized in future and are reviewed every year .The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

XI. IMPAIRMENT OF ASSETS

In accordance with Accounting Standard (AS)-28 "Impairment of Assets", where there is an indication of impairment of the company''s assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such asset is estimated as the higher of its realizable value and its value in use. An impairment loss is recognized in the Statement of Profit and Loss whenever the carrying amount of such assets exceeds its recoverable value.

XII. PROVISIONS AND CONTINGENT LIABILITIES

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can be made of the amount of the obligations. Contingent liabilities, if material, are disclosed by way of Notes to Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

XIII. EARNINGS PER SHARE

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

Mar 31, 2012

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements, unless specifically stated otherwise, have been prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act 1956 as adopted consistently by the Company.

II. FIXED ASSETS

a) Land, Building and Plant and Machinery acquired up to 31st March 1989 are stated on the basis of revaluation and other fixed assets are stated at cost.

b) All direct costs and cost of financing relating to the specific borrowing attributable to the fixed assets are capitalized and CENVAT credit / VAT credit availed/ available on the capital goods are deducted from the cost of the corresponding assets.

c) Profit / Loss on disposal of fixed assets are credited / charged, as the case may be, to the statement of Profit and Loss.

III. DEPRECIATION

a) In respect of the assets acquired up to 31/03/1996, depreciation has been provided on straight-line method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

b) In respect of the assets acquired after 31.03.1996, depreciation has been provided on written down value method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

c) Depreciation on incremental value on account of revaluation of assets is charged to revaluation reserve.

IV. INVESTMENTS

Investments held are classified as long term and carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary.

V. INVENTORIES

a) Finished Goods, Stock-in-process and foundry returns are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads. Finished Goods are valued inclusive of excise duty.

b) Raw Materials, Stores & Spares and other inputs are valued at cost or net realizable value whichever is lower, cost being determined on weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess / shortage, if any, arising on physical verification are absorbed in the respective consumption accounts.

VI. REVENUE RECOGNITION

Sales are recognized when goods are supplied and are recorded net of trade discounts, rebates and sales tax and inclusive of excise duty.

VII. EMPLOYEE BENEFITS

a) Defined Contribution plans:

These are plans in which the Company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees state insurance, provident fund and pension plans. The contribution paid / payable to these plans during the year is charged to statement of profit and loss for the year on accrual basis.

b) Defined benefit plans:

i. Gratuity: The Company makes contributions to the employees' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits has been determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost, if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Actuarial gains and losses for the current year are recognized in full in the statement of profit and loss for the period in which they occur.

ii. Compensated absence: The Company has a scheme to compensate absence for employees. The liability of which is determined on the basis of an actuarial valuation carried out by an independent actuary at the end of the year. The actuarial gains or losses are recognized in full in the statement of profit and loss for the period in which they occur.

iii. Short term employee benefit: All employee benefits which are wholly due within twelve months of rendering the services are recognized in the period in which the employee renders the related services.

VIII. RESEARCH AND DEVELOPMENT

Revenue expenses incurred on Research and Development are charged off to revenue in the year of incurrence. Fixed assets purchased for Research and Development purposes are capitalized and depreciated as per the Company's Accounting policy.

IX. FOREIGN CURRENCYTRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the year end are recognized in the statement of profit and loss.

X. TAXATION

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961 .Deferred tax asset is recognized for the future tax consequences of the timing difference between the tax basis and the carrying values of assets and liabilities. Deferred tax assets are recognized only if there is virtual certainty that they will be realized in future and are reviewed every year .The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

XI. IMPAIRMENT OF ASSETS

In accordance with Accounting Standard (AS)-28 "Impairment of Assets", where there is an indication of impairment of the company's assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such asset is estimated as the higher of its realizable value and its value in use. An impairment loss is recognized in the Profit and Loss Account whenever the carrying amount of such assets exceeds its recoverable value.

XII. PROVISIONS AND CONTINGENT LIABILITIES

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can be made of the amount of the obligations. Contingent liabilities, if material, are disclosed by way of Notes to Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

XIII. EARNINGS PER SHARE

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

Mar 31, 2011

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements, unless specifically stated otherwise, have been prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act 1956 as adopted consistently by the Company.

II. FIXEDASSETS:

a) Land, Building and Plant and Machinery acquired up to 31st March 1989 are stated on the basis of revaluation and other fixed assets are stated at cost.

b) All direct costs and cost of financing relating to the specific borrowing attributable to the fixed assets are capitalized and CENVAT credit / VAT credit availed/ available on the capital goods are deducted from the cost of the corresponding assets.

c) Profit / Loss on disposal of fixed assets are credited / charged, as the case may be, to Profit and Loss Account.

III. DEPRECIATION

a) In respect of the assets acquired up to 31-03-1996, depreciation has been provided on straight-line method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

b) In respect of the assets acquired after 31-03-1996, depreciation has been provided on written down value method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

c) Depreciation on incremental value on account of revaluation of Building and Plant & Machinery is charged to revaluation reserve.

IV. INVESTMENTS

Investments held are classified as long term and carried at cost .However, provision for diminution in value is made to recognize a decline otherthan temporary.

V. INVENTORY

a) Finished Goods, Stock-in- process and foundry returns are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads. Finished Goods are valued inclusive of excise duty.

b) Raw Materials, Stores & spares and other inputs are valued at cost or net realizable value whichever is lower, cost being determined on weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess / shortage, if any, arising on physical verification are absorbed in the respective consumption accounts.

VI. REVENUE RECOGNITION:

Sales are recognized when goods are supplied and are recorded net of trade discounts, rebates and sales tax and inclusive of excise duty.

VII. EMPLOYEE BENEFITS:

a) Defined Contribution plans:

These are plans in which the company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees state insurance, provident fund and pension plans. The contribution paid / payable to these plans during the year is charged to profit and loss account for the year on accrual basis.

b) Defined benefit plans:

i) Gratuity: The Company makes contributions to the employees' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits has been determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost, if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Actuarial gains and losses for the current year are recognized in full in the profit and loss account for the period in which they occur.

ii) Compensated absence: The Company has a scheme for compensate absence for employees. The liability of which is determined on the basis of an actuarial valuation carried out by an independent actuary at the end of the year. The actuarial gains or losses are recognized in full in the profit and loss account for the period in which they occur.

iii) Short term employee benefit: All employee benefits which are wholly due within twelve months of rendering the services are recognized in the period in which the employee renders the related services.

VIII. RESEARCH AND DEVELOPMENT:

Revenue expenses incurred on Research and Development are charged off to revenue in the year of incurrence. Fixed assets purchased for Research and Development purposes are capitalized and depreciated as perthe Company'sAccounting policy.

IX. FOREIGN CURRENCYTRANSACTIONS:

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the year end are recognized in the profit and loss account.

X. TAXATION:

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961 .Deferred tax asset is recognized for the future tax consequences of the timing difference between the tax basis and the carrying values of assets and liabilities. Deferred tax assets are recognised only if there is virtual certainty that they will be realised in future and are reviewed every year The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

XI. IMPAIRMENT OF ASSETS:

In accordance with Accounting Standard (AS)-28,"Impairment of Assets", where there is an indication of impairment of the company's assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such asset is estimated as the higher of its realizable value and its value in use. An impairment loss is recognized in the Profit and Loss Account whenever the carrying amount of such assets exceeds its recoverable value.

XII. PROVISIONS AND CONTINGENT LIABILITIES:

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can be made of the amount of the obligations. Contingent liabilities, if material, are disclosed by way of Notes to Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

XIII. EARNINGS PER SHARE:

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

Mar 31, 2010

I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements, unless specifically stated otherwise, have been prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act 1956 as adopted consistently by the Company.

II. FIXED ASSETS:

a) Land, Building and Plant and Machinery acquired up to 31st March 1989 are stated on the basis of revaluation and other fixed assets are stated at cost.

b) All direct costs and cost of financing relating to the specific borrowing attributable to the fixed assets are capitalized and CENVAT credit / VAT credit availed/ available on the capital goods are deducted from the cost of the corresponding assets.

c) Profit / Loss on disposal of fixed assets are credited / charged, as the case may be, to Profit and Loss Account.

III. DEPRECIATION

a) In respect of the assets acquired up to 31-03-1996, depreciation has been provided on straight-line method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

b) In respect of the assets acquired after 31-03-1996, depreciation has been provided on written down value method at the rates and in the manner stipulated under schedule XIV to the Companies Act 1956.

c) Depreciation on incremental value on account of revaluation of Building and Plant & Machinery is charged to revaluation reserve.

IV. INVESTMENTS

Investments held are classified as long term and carried at cost .However, provision for diminution in value is made to recognize a decline other than temporary.

V. INVENTORY

a) Finished Goods, Stock-in- process and foundry returns are valued at cost or net realizable value whichever is lower. Cost represents material cost, labour cost, and other appropriate overheads. Finished Goods are valued inclusive of excise duty.

b) Raw Materials, Stores & spares and other inputs are valued at cost or net realizable value whichever is lower, cost being determined on weighted average method. However raw materials and other inputs held for use in or in relation to production are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost.

c) Excess / shortage, if any, arising on physical verification are absorbed in the respective consumption accounts.

VI. REVENUE RECOGNITION:

Sales are recognized when goods are supplied and are recorded net of trade discounts, rebates and sales tax and inclusive of excise duty.

VII. EMPLOYEE BENEFITS:

a) Defined Contribution plans:

These are plans in which the company pays pre defined amounts to separate funds, and does not have any legal or informal obligation to pay any additional sums. These comprise of defined contribution plans for employees comprising of government administered employees state insurance, provident fund and pension plans. The contribution paid / payable to these plans during the year is charged to profit and loss account for the year on accrual basis.

b) Defined benefit plans:

i) Gratuity: The Company makes contributions to the employees group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits has been determined on actuarial valuation conducted annually by an independent Actuary using the projected unit credit method, as adjusted for un recognized past service cost, if any, and as reduced by the fair value of the plan assets, is recognized in the accounts. Actuarial gains and losses for the current year are recognized in full in the profit and loss account for the period in which they occur.

ii) Compensated absence: The Company has a scheme for compensate absence for employees. The liability of which is determined on the basis of an actuarial valuation carried out by an independent actuary at the end of the year. The actuarial gains or losses are recognized in full in the profit and loss account for the period in which they occur.

iii) Short term employee benefit: All employee benefits which are wholly due within twelve months of rendering the services are recognized in the period in which the employee renders the related services.

VIM. RESEARCH AND DEVELOPMENT:

Revenue expenses incurred on Research and Development are charged off to revenue in the year of incurrence. Fixed assets purchased for Research and Development purposes are capitalized and depreciated as per the Companys Accounting policy.

IX. FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions. Gains / losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currency as at the year end are recognized in the profit and loss account.

X. TAXATION:

Tax on income for the current period is determined on the basis of taxable income estimated in accordance with provisions of Income tax Act, 1961 .Deferred tax asset is recognized for the future tax consequences of the timing difference between the tax basis and the carrying values of assets and liabilities. Deferred tax assets are recognised only if there is virtual certainty that they will be realised in future and are reviewed every year The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantively enacted tax rates.

XI. IMPAIRMENT OF ASSETS:

In accordance with Accounting Standard (AS)-28,"Impairment of Assets", where there is an indication of impairment of the companys assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such asset is estimated as the higher of its realizable value and its value in use. An impairment loss is recognized in the Profit and Loss Account whenever the carrying amount of such assets exceeds its recoverable value.

XII. PROVISIONS AND CONTINGENT LIABILITIES:

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimates can be made of the amount of the obligations. Contingent liabilities, if material, are disclosed by way of Notes to Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

XIII. EARNINGS PER SHARE:

Basic earnings per share is arrived at based on net profit after taxation available to the equity shareholders to the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

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